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HSN and SAC under GST: Meaning, Use and Importance Explained

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In the GST system, every product and every service must be properly identified for taxation and reporting. To make this process easy and uniform, the Government uses special classification codes known as HSN and SAC . These codes are very important for businesses because they help in preparing correct invoices, filing GST returns, and avoiding tax mistakes. Let us understand the meaning, use, and importance of HSN and SAC under GST in simple English. What is HSN under GST? HSN stands for Harmonised System of Nomenclature . It is a globally accepted coding system used for classifying goods (products). This system was introduced to create a standard way of identifying goods across different countries. Under GST, every item such as food products, machinery, electronics, clothing, furniture, etc. is assigned a specific HSN code. Example Rice has a different HSN code Cement has a different HSN code Mobile phones have a different HSN code This he...
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List of Documents Required for GST Registration for Proprietorship (Complete Guide)

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  GST registration is mandatory for many businesses in India depending on turnover, nature of business, and type of supply. For a proprietorship firm , GST registration is quite simple, but many applications get delayed or rejected due to incomplete or incorrect documentation. This article provides a complete and practical list of documents required for GST Registration for proprietorship in India. Documents Required for GST Registration for Proprietorship A proprietorship firm is not a separate legal entity. Therefore, GST registration is issued in the name of the proprietor , but the trade name can also be added. Below are the documents required: 1. PAN Card of Proprietor (Mandatory) PAN of the proprietor is compulsory because GST registration is linked with PAN. 2. Aadhaar Card of Proprietor GST portal may require Aadhaar authentication for quick approval. If Aadhaar authentication is not completed, GST officer verification may take longer. 3. Photograph ...
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Understanding the Balance Sheet: A Complete Guide

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  Understanding the Balance Sheet: A Complete Guide Introduction A balance sheet is one of the most important financial statements used by businesses, investors, and financial analysts. It provides a snapshot of a company’s financial position at a specific point in time. Understanding a balance sheet is crucial for making informed business decisions, assessing financial health, and planning for future growth. In this article, we will explore what a balance sheet is, its components, and how to analyze it effectively. What is a Balance Sheet? A balance sheet is a financial statement that presents a company’s assets, liabilities, and shareholders' equity at a particular date. It follows the fundamental accounting equation: Assets = Liabilities + Shareholders' Equity This equation ensures that the company's financial records are balanced. The balance sheet provides insights into a company’s financial stability, liquidity, and overall worth. Components of a Balance...
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Ways to Arrange Initial Capital for Your Business: A Practical Approach

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Ways to Arrange Initial Capital for Your Business: A Practical Approach Starting a business requires a solid financial foundation, and arranging initial capital is one of the biggest challenges entrepreneurs face. While traditional funding sources like bank loans are well-known, they are not always accessible to everyone. In this article, we will explore practical and applicable ways to arrange initial capital for your business. 1. Personal Savings Using personal savings is the most straightforward way to finance your business. It allows you to retain full control and avoid interest payments. If you are still in the planning phase, consider cutting unnecessary expenses and saving aggressively to build a startup fund. How to do it practically: Set aside a fixed percentage of your income every month. Reduce personal expenditures by prioritizing essentials. Consider high-interest savings accounts or fixed deposits to grow your capital. 2. Friends and Family Borrowing from friends and fami...
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Success Plan for Starting an Accounts and Tax Training Center

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Success Plan for Starting an Accounts and Tax Training Center 1. Market Research & Target Audience Target Audience: Commerce students (12th pass, graduates, and postgraduates) Freshers seeking jobs in accounting and taxation fields Business owners wanting to learn taxation for their business Working professionals looking to upgrade skills Competitor Analysis: Study nearby training institutes and online platforms. Identify the pricing, duration, and types of courses they offer. Find gaps in their offerings (like lack of practical exposure or advanced taxation topics). Course Demand: GST Filing and Compliance Income Tax Return Filing TDS Compliance Tally with GST Advanced Excel for Accounting Basic Accounting (Manual + Software) Payroll Management 2. Business Planning Business Name & Registration: Choose a catchy and professional business name. Register your business as: Proprietorship (if starting alone) Partnership or LLP (if starting with others) Private Limited Company (for f...
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All About GST and Why It Is Necessary for Business

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  All About GST and Why It Is Necessary for Business Goods and Services Tax (GST) is a tax that businesses in India must pay on the goods and services they sell. It was introduced on July 1, 2017, to simplify the country's complicated tax system. Before GST, businesses had to pay many different taxes like VAT, service tax, excise duty, and others. GST combines all these taxes into one, making it easier for businesses to pay and manage taxes. What is GST? GST is an indirect tax that applies to the supply of goods and services. It is a destination-based tax, which means the tax is collected where the goods or services are consumed, not where they are produced. GST is divided into three types: CGST (Central Goods and Services Tax) : Tax collected by the central government on sales within a state. SGST (State Goods and Services Tax) : Tax collected by the state government on sales within the same state. IGST (Integrated Goods and Services Tax) : Tax collect...
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Process to Start a Research Company: A Step-by-Step Guide

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Process to Start a Research Company: A Step-by-Step Guide Starting a research company can be an exciting and rewarding venture, especially if you have a passion for analysis, innovation, and problem-solving. A research company provides data-driven insights, market analysis, scientific discoveries, or social impact studies, depending on its niche. Whether you want to offer research services to businesses, government organizations, or academic institutions, you need a solid plan to ensure success. Here’s a step-by-step guide on how to start your own research company. 1. Define Your Niche & Business Model The first and most crucial step is to define your research focus. Research companies operate in various industries, so choosing a niche based on your expertise and market demand is essential. Choose a Research Area Market Research – Consumer behavior, industry trends, and competitive analysis. Scientific Research – Healthcare, pharmaceuticals, biotechnology, or environmental studie...
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