Supermarket business is high turnover business with heavy operational workloads, most of the supermarket owners have challenge for daily operational challenges like stocking, sales billing, purchase order, payments etc. Here we give some of frequently noted challenges , its importance and solutions to overcome it.
Income tax compliance
Most of the supermarket requires compulsory audit as their net profit is less than 6 % and there is no option for income tax return filing without regular auditing of accounts as turnover will exceed 1 crores in most cases. So every supermarket is suggested to maintain vouchers, sales bills, purchase bills, details of expenses etc to prepare proper books of account at year end. More about important income tax dates
Consider Top 3 income tax compliance priority
1. Maintain proper Vouchers, bills etc for preparing books of accounts
2. Deduct, pay and file TDS returns properly
3. File income tax return on time so that it will be helpful for your bankers for overdraft limit renewal.
GST compliance and filing GST monthly returns
GST registration for supermarket is practically mandatory for availing input tax credit and increasing profitability. Moreover proper filing of GST returns enables entailment of credit and gives sense of relief from compliance workload. Do not pile up and file GST returns for several months because it will gives confusion regarding purchase returns etc, opt for monthly GST filing option, do not select quarterly option.
Routine accounting task required
Implement proper billing system for separating, zero rated sale, exempted products, taxable sale value, sales returns etc. Book purchase returns, items not delivered but billed properly for arriving exact purchase amount for each month. Input stocks received properly so that data will be ready for submitting stock summary statement to banks, income tax year end auditing, re ordering etc.
Year end and periodic GST, Income tax compliance, others
- Renew FSSAI license
- Fire safety Renewal
- Renew Legal metrology certificate
- File TDS returns
- File Monthly GST returns
- Audit and file income tax returns.
- Pay advance tax
- Apply for OD Limit renewal, and increase in Overdraft limit even if you need it or not provided unutilised amount in OD account shall not be used of business purpose