FINBOAT

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...

  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 ...

  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...

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...