Webinar Year-end Compliances for MSMEs & Startups

Apr 30, 2023

World Trade Center Shamshabad & Visakhapatnam have hosted a webinar excursively for the MSMEs & Startups on the Year End Compliances on 5th April 2023 with experts from the industry and department official. The event was hosted in collaboration with the Federation of Telangana Chamber of Commerce (FTCCI) and the Association of Lady Entrepreneurs of India (ALEAP).

 Opening Remarks by Neelima Guttikonda, Chief Project Officer - ALEAP

For many entrepreneurs, compliance can be a daunting topic, especially for those with technical backgrounds. However, as promoters or founders, it is crucial to understand compliance requirements and ensure that they are being followed.  Neelima also said that ignorance is no longer an excuse. By staying informed and up-to-date on compliance requirements, entrepreneurs can position themselves for long-term success and avoid unnecessary legal trouble.

 Chief Guest - Dr. B. V. Murali Krishna, Addl CCT(e-Governance), Karnataka

During his inaugural speech, Dr. Murali Krishan emphasized the importance for MSMEs and startups to have a thorough understanding of the various compliances involved in conducting business. In particular, with regards to the Goods and Services Tax (GST), he advised entrepreneurs to ensure that they correctly classify their products or services and apply the appropriate tax rate. Failure to do so could lead to potential litigation and the possibility of having to pay additional taxes if an item is invoiced at a lower rate. Such unexpected expenses could significantly impact a company's profits, making it crucial for entrepreneurs to remain vigilant about GST compliance.

Guest of Honour - S Swaminathan, Founder & CEO of IRIS Business Services Limited

During his address, Mr. Swami shared his perspective that compliance should not be viewed as a burden, but rather as an opportunity for businesses to make strategic decisions based on compliance data. He emphasized that the digitalization of tax departments has enabled banks and other lending agencies to cross-check data and provide funding to taxpayers rather than solely relying on audited financial statements. In addition, Mr. Swami pointed out that being compliant can build trust with business partners, ultimately leading to growth opportunities for the business. By prioritizing compliance and leveraging digital tools, companies can position themselves for success in a rapidly-evolving business landscape.

Session Moderator - CMA B Mallikarjuna Gupta, vCFO, GST & Management Consultant

CMA B Mallikarjuna Gupta emphasized the importance of adhering to laws and regulations for MSMEs and startups to gain the trust of their business partners and achieve success. Specifically, he noted the critical nature of year-end compliances related to income tax, GST, and annual compliances for the Register of Companies and maintenance of cost records. CMA Mallikarjuna Gupta stressed the importance of accurate and timely recording of transactions, as well as filing returns in a timely and accurate manner. By prioritizing these compliance measures, businesses can position themselves for growth and build a reputation for reliability and trustworthiness.

 Panelist - CA KSB Subramanyam, Chief Financial Partner, Manohar Chowdhry & Associates

During his address, CA KSB Subramanyam offered valuable advice for MSMEs and startups, emphasizing the importance of timely and accurate documentation of business transactions. In particular, he highlighted the need for proper accounting of expenses and the timely deduction and reversal of taxes in the next financial year. Subramanyam noted that failure to adhere to these provisions could result in significant financial consequences, and the cost of non-compliance is ultimately more expensive than the cost of compliance. By prioritizing proper documentation and compliance, businesses can position themselves for long-term success and avoid costly mistakes.

Subramanyam also stressed that entrepreneurs should refer to the AIS form while filing their income tax returns as it pulls data from various sources. This will ensure that all incomes are accounted for, and taxes are paid on it in accordance with the provisions of Income Tax.

 Panelist - CMA T. K. Jaganathan, Partner, J.H & Associates   - Cost Accountants

During his address, CMA T K Janaganathan said that the maintenance of cost records, for example, can help monitor and control resource consumption and utilization, improve operating margins, and determine the basis for cross-charging under GST. Jaganathan has emphasized that the cost of products or services must consider design costs, not just production costs. Cost records can serve as a reliable source of information for these purposes.

By maintaining accurate and up-to-date compliance records, entrepreneurs can make informed decisions that support their business goals. These records can provide insights into resource utilization, production costs, and other important factors that impact profitability. As such, entrepreneurs should prioritize the maintenance of compliance records to help drive their businesses forward and ensure long-term success.

 Panelist - CS Priyanka Rajora, Proprietor of Rajora & Co.

In her address, CS Priyanka has noted that the Indian government has introduced measures to promote the ease of doing business, particularly for MSMEs and startups. These measures include relaxation on certain compliance requirements. However, Priyanka has also emphasized the importance of conducting regular board meetings and filing annual forms on time to avoid hefty penalties.

Proper documentation of board meetings is also critical to improving corporate governance, Priyanka has noted. By keeping accurate records of discussions and decisions made during board meetings, companies can better demonstrate their commitment to transparency and accountability. This, in turn, can help improve valuations and increase investor confidence.

 Panelist - CA Mahadev R, Partner, HNA & Co. LLP

In his address, CA Mahadev highlighted the importance of year-end compliances under GST for MSMEs and startups. He emphasized that reconciliation should not be treated as a yearly ritual but instead, a regular activity. Reconciliations must be conducted between the Sales Day Book and various GST forms like GSTR-1, GSTR-3B, e-waybills issued, and e-invoices generated. Mahadev also advised taxpayers to issue self-invoices for discharging the tax liability under reverse charge and to issue credit notes before 30th November. He further stressed the significance of proper maintenance and preservation of records.

Vote of Thanks by CA V S Sudhir, Chair for Customs and GST Committee at FTCCI

 CA V S Sudhir has extended a warm vote of thanks to the World Trade Center Shamshabad, the Federation of Telangana Chamber of Commerce (FTCCI), and The Association of Lady Entrepreneurs of India (ALEAP) for organizing the informative webinar. Sudhir appreciated the efforts of the organizers in conducting such sessions that provide valuable knowledge and insights to entrepreneurs. He emphasized that these types of events are crucial in empowering MSMEs and startups to stay compliant and succeed in their business endeavours.