Once the company is fully setup, our CA firm provides a complete financial outsourcing services on a fixed monthly retainership fee. Literally, the finance department of the company is entirely handled by us. This service works well where the Management of the Company is situated outside India or the Directors are constantly travelling and would like to pass on the accounting and statutory compliances responsibility to someone else. This ensures that they have stable finance team, which is managed by competent and experienced professionals at reasonable costs. Our services under this category includes the following:
1. Book-keeping and Management Reporting services
• Book-keeping of day to day transactions in any accounting software.
• The chart of accounts are prepared and codified in line with the reporting requirement of the Management or holding company. This ensures that the list of accounts is easily reconcilable with the books of account of the holding company.
• Ensuring all the supporting documents, bills, invoices for all financial transactions are well documented and filed.
• We believe and provide working towards complete paper-less office. All the supporting documents, statutory returns, registration certificates, agreements, etc. are scanned and maintained in digital form. This eases the search of any document in future and ensures transparency in the accounting system. The Management has any-time access to all the documents, which can be scanned and saved on a cloud.
• To prepare and submit monthly MIS Reports to the Management / Holding Company in a time-bound manner.
2. Transparent and quick payment processing services:
• To setup and establish a completely foolproof and transparent payment system. This includes vendor identification and selection process, purchase ordering system and written approval system before any payments are released.
• To check and ensure that all bills are approved before payments are released.
• To ensure the arithmetic accuracy of the bills and compute and deduct withholding taxes wherever applicable.
• To setup a vendor registration system wherein the bank account details of the vendors are obtained to ensure that the payments are made electronically using NEFT and RTGS facilities of the bank.
• All the payments made are consecutively listed in an Excel work sheet, which are also linked to the bank statement maintained in the same sheet. With this, the Management can view all the payments made at anytime.
3. Invoicing and receivable management:
• To advise the Company on transfer pricing mechanism and finalizing a method of raising export invoices to Holding Company.
• To ensure that foreign inward remittances are supported with Foreign Inward Remittance Certificates (FIRC’s), which is very important document for future reporting.
• To raise Export Invoice as per the regulations of FEMA and in line with the Master Service Agreement or Transfer Pricing regulations.
• To track all receivables and report on timely manner about old debtors and provide ageing analysis of the receivables.
4. Statutory Compliances under various statutes applicable to the Company:
Our Firm strongly believes in zero tolerance to non-compliances. We would ensure that there is absolutely no non-compliance at any point of time. For this purpose, over a period of time, we have evolved a time-tested and proven Statutory Compliance Tracker. This Tracker would have a monthly compliance checklist with statutory due dates and internal compliance due dates targeted by us. The Monthly Statutory Tracker would be submitted to the Management along with the MIS Report. This ensures that the Management has completed all compliances required to do in a timely manner.
Various statutory compliances typically required by a company would be:
(a) Withholding taxes or TDS compliances:
• To ensure TDS is deducted on all bills wherever required.
• To ensure that the TDS so deducted is remitted within the due dates.
• To ensure that the quarterly e-TDS Returns are filed correctly and within the due dates.
• To prepare and issue TDS Certificates to the vendors on quarterly basis.
• To advise on TDS deduction on foreign payments after studying the applicable Double Taxation Avoidance Agreements (DTAA) between the vendor country and India.
• To prepare and certify necessary forms to be electronically uploaded on the Income-tax website before submitting the documents to the bank.
(b) Service tax compliances:
• To collect service tax on domestic invoicing.
• To advise and remit service tax applicable on certain services under Reverse Charge Mechanism.
• To file half-yearly service tax returns with the department.
• To make an application and file for service tax refund where the company provides only export services.
(c) Income-tax matters:
• To advise the company on tax planning.
• To compute and remit 4 installments of advance income-tax.
• To ensure that all the TDS deducted by the customers are deposited and credited to the PAN account of the Company.
(d) Company Secretarial matters:
• To ensure that minutes of the Board Meetings, Shareholders’ Meetings are drafted and documented.
• To ensure that necessary filings of various forms with the Registrar of Companies are filed in the timely manner.
(e) Compliance under Foreign Exchange Management Act (FEMA)
• To ensure that Annual Returns required to be filed with the Reserve Bank of India (RBI) is done on a timely manner wherever there is foreign direct investment in the company.
• To advise the Management of the company on various provisions applicable to it in case of export of services, import of services, permission for writing off of export receivables, etc.
(f) Compliances under STPI and Customs provisions
• All exporters of IT / ITES services are required to file SOFTEX (SOFTware EXport) forms with the STPI department for every export invoice raised by it. We would ensure that the same is complied with.
• To follow up and receive the certified SOFTEX forms and submit the same to the Authorised Dealer.
• To ensure that the quarterly and annual returns are filed with the STPI department.
• To ensure that all import of goods are in compliance with the Customs regulations and the same are bonded in case it is a Customs Bonded premise.
(g) Labour law compliances:
• To ensure that the professional tax is computed, deducted and remitted on monthly basis.
• To ensure that all the compliances under provident fund regulations are done on timely manner. This includes deduction and remittance of PF, monthly returns, annual returns, obtaining annual PF payslips for the employees, ensuring transfer of PF accounts.
• To ensure withholding taxes, as applicable to each employee is correctly computed and necessary documentations are collected from the employees in support of deductions claimed by the employees.
• To ensure that the Annual Return is filed with the Labour Department after payment of labour welfare contribution.
• To maintain all labour registers and display all Forms and certificates as required under State Labour Laws.
• To issue Salary TDS Certificate to the employees within the due dates prescribed.