To speak on fundus of Accounts requires an understanding the Golden rules of Accounting. The Golden Rules are Dr the Receiver and Credit the Giver; Dr What comes in and Credit What goes out; Dr all expenses and losses and Cr all incomes and gains. In this context the Dr denotes a Doctor, a learned man or a physician. Cr denotes the person to whom an advice is given or a patient. Cr also denotes the Creator of a product or an Engineer. Dr denotes the person who is receiving the product. That is the knowledge of the self and the knowledge of the product. Nobody from principal visits officially.
Choosing a form of Enterprise is the next step.
You have the PE of a Delhi/Japanese Company locally. You will be having the procuring the order and the Principal Directly deals with the Customers. All dealings will be on Principal's Letterpad and no Official stationary will be used. most of the time some one side calendar paper is used. Local amount is collected as Account payee cheque and despatched to the principal. The principal pays the Commission.
You have to have an Agency Agreement with the Delhi/Japanese Company. You will be participating in the tender process independantly and receiving the Trade Discount normally 15% Cash Discount normally 5% Turnover Discount normally 8%. Principal may be allowing you to participate in the tender on net-net rate also. Some Expert who knows the nuts and bolt may visit for fire fighting mission and may be paid under 15CA/15CB route in case of overseas remittance.
You have to have a JV Agreement with the Delhi/Japanese Company. You may possibly covering the warranties and Guarantees and maintaining the requisites spares and expertise and may possibly participate in the Product improvement programme of the Principal. Normally dilusion of the equity will take place over a period possibly as 10%, 25%, 49% and finally 100%. Periodic Joint meetings will be held on ISO/BIS compliance with representation from both the side signing the JDF with the active participation of the Chairman of the local group. Normally, Payments towards Royalties, Technical Fees towards knowhows, and Dividend only will be there under 15CA/15CB during the period of negotiation and repatriation of profits will take place on 100% dilution.
What is an Enterprise. Enterprise is separate from the Entrepreneur. An Enterprise has inherent Strength Weakness Opportunities and Threats.a
It is the onerous duty of every Entrepreneur to Exploit the Opportunities with his strength and mitigate the risk of Threats exploiting the weakness.
Enterprise involves Organising & Management of the Affairs of the Enterprise in such a fashion the Secrecy of the Bank Operation is maintained and His Assets are secured by way of well meaning contracts of insurances with utmost good faith, and prima facie and substantial adhering to the rules and regulations of the trade.
Organising involve Staffing, Directing and Co-ordinating the Enterprise with Internal financial Controls capable of detecting frauds and errors at the earliest possible moment. It involves dividing the work on the basis of maker and checker principles. Normally the Maker Checker Documentation is done by the company staff at the Footer area and by the audit staff at the Headere area of the Document. Suitable rubber stamps and color inks are used to keep the workflow informed of the progress.
GST Compliance in the context of a Trader.
It is adviseable to have the Purchase Register & Sales Register maintained in Excel with the required data for GST purposes uploaded using the offline tools version v2.29 b2b.csv b2cl.csv, hsn.csv for sales GSTR1 and b2b.csv & hsnsum.csv for purchases GSTR2.
Composition scheme is available at 1% upto 75lacs/1 crore threshold. [restaurents it is 5%]
Software available in the marketplace include,
Microsoft office 365.
GST Compliance accounting software include, ZOHO invoice, QUICKBOOK, TALLY ERP, Cash Registrex solutions, etc.