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Find Solutions to Common Issues Related to taxation - clause 44 tax gst
What is the purpose of Clause 44?
Clause 44 in GST refers to the provisions related to the e-invoicing system as per the Goods and Services Tax (GST) regulations in India. It mandates certain businesses to generate and issue invoices electronically through the GSTN.
Clause 44 asks the auditors to report the total expenditure debited to the profit or loss account during the year and provide a break-up of this expenditure as per their GST transactions.
It requires reporting of the total amount of expenditure incurred during the previous year i.e. revenue expenditure as well as capital expenditure.
In BUSY:
Step 1: Click on Display Menu
Step 2: GST Reports
Step 3: GST Audit Reports
Step 4: Tax Audit Report - Clause 44
Where can we check clause-44 reports in BUSY?
Clause - 44 (Income Tax and GST Related) - Tax audit report(Clause 44) is an audit report that provides breakup of expenditure as per GST Transaction. It includes all the expenditure debit to profit and loss accounts.
Segregation of Expenditure appears on the basis of GST, Non GST and Gst not applicable.
To check clause-44 reports in BUSY follow the below steps:
Step:1 We can check it from Display > Gst report > Gst audit report > Tax Audit report - Clause 44
Related Video:
https://www.youtube.com/watch?v=3OohMbIoDRs
What are the benefits of e-invoicing under Clause 44 in GST?
Clause 44 in GST refers to the provisions related to the e-invoicing system as per the Goods and Services Tax (GST) regulations in India. It mandates certain businesses to generate and issue invoices electronically through the GSTN.
Step : 1
Reduced manual data entry errors, promoting accuracy in invoice details.
Faster invoice processing and improved cash flow management.
Enhanced data visibility and better control over business transactions.
Streamlined tax compliance and reduced chances of tax evasion.
Simplified reconciliation processes for businesses and tax authorities.
Which value comes under the notional amount column in clause- 44 tax audit report?
Those transactions are not part of GST or Non GST records, come in the notional amount column.
E.g. Salary to an employee, Direct payment to a customer.
This is used for equalising the value of an expense master with the ledger in that report.
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