Computerized Accounting Systems

Computerized Accounting Systems

-Dr. Lalit Kumar

Imagine your Financial and Accounting work without computers!

Manual entry of each transaction in accounting books, preparing ledgers and then deriving of financial statements. After that analysis the financial records for making of managerial decisions. It seems very complicated now. Before computers in our life, the work of accounting and finance was really difficult. 

What is program do?

With the help of computers and information technology, programs and modules are formed to make the work easier. Deriving instant information for making fast decisions possible only by programming. In Haryana, the financial work is done with e-Billing, e-Challan, Online Budget, Human Resource Management System (HRMS), and Online Diary Management System; each module is the result of program of National Informatics Centre (NIC).

Reporting as a key aspect of outputs

The programs, modules, applications are providing outputs and the outputs are making work easier. The standardized format of outputs is kept in mind while forming a program. The programmers use languages to project a specific program. In Finance and Accounting, the Excel software is used to model the spreadsheet for doing a specific work. 

Convenience in Functions

Whatever you do in finance and accounting, from budgeting to auditing and reporting, it is need of the hour to understand how information technology and computers are playing role to make the work easier.

From time to time Workshops are organized on “Computerized Accounting Systems”. 

Objective:

The main objective of the above the course is to build and enhance the capacities of officers in adopting and using the Computerized Accounting Systems (CAS) in Government Departments and Public Sector Undertakings (PSUs). This course is intended for Financial and Administrative Officers, Drawing and Disbursing Officers (DDOs), Accounts Officers, Section Officers, and Officer/officials in-charge of Financial Operations in Government Offices.

For example, in Haryana, the Haryana The Institute of Public Administration (HIPA) is approached for organizing the training on Computerized Accounting Systems. 

Outcome of Training

By the end of this course, participants become able to:

• Describe and Use Various Accounting Systems Manual and Computerized, Single Entry and Double Entry Based, Cash and Accrual Basis Accounting etc.

•  Adopt and Use Computerized Accounting Systems (CAS) in Government.

•  Maintaining Accounts and Inventory in Computerized Accounting Software as per requirements in offices.

Preparing Utilization Certificate of Grants

Every year the Head of Departments in The government provides grants to their concerned field offices for utilization. The Finance Department of a State is entrusted for proper utilization of the grants and for this purpose, the proper audit is conducted at their level. Wherever the doubt of mis-utilization was realized, an audit team approached and clear their doubts with the help of raising audit objections.

Sanctioning of Grants to Departments:

The grants are sanctioned for the proper functioning of the departments of Government and the money is used through treasuries of the state. Without getting the utilization certificate of the earlier grant, no further grant is released. Even the utilization certificates of each grant are properly analyzed by the officers of the finance department to make sure that the grants are used for the same purposes for which the demands were raised earlier by the departments. The Finance Departments are very strict to ensure the proper utilization of public money most of which, collected with the help of Income Tax and Goods & Services Tax (GST) in India.

Audit Function in Government

The Comptroller Auditor General (CAG) is entrusted with auditing the accounts of each Government office in India. For this purpose, each state constituted Accountant General Department which supervises the same function as CAG performs at a central level. The Grants are required to be utilized in a time-bound manner for which the Head of Departments are entrusted to take work from the Drawing and Disbursing Officers of the State.

Role of Training in making Proper Utilization:

In case, the departments lack the capacities for ensuring the proper utilization of funds, the compliance of rules with computerizing accounting systems can be ensured. In case, the departments use computerized accounting systems, the utilization certificates will be available as per the real-time status of the grants. The State Training Institutions (STIs) are working for it.

*Copyright © 2020 Dr. Lalit Kumar. All rights reserved.

Next Page - Functions of Accounts Branch in Government

https://drlalitsetia.blogspot.com/2019/07/functions-accounts-branch-Government.html 

https://drlalitsetia.blogspot.com/2021/08/responsibilities-of-head-of-accounting.html

https://managerialadministration.blogspot.com/2018/10/managerial-finance-and-control.html

https://managerialadministration.blogspot.com/2018/10/e-finance-applications-using-integrated.html 

https://drlalitsetia.blogspot.com/2021/07/accounting-financial-procedures-in.html

Registration for Government Deductors in GST

 Registration for Government Deductors in GST

Before we proceed to be aware of the process of being registered for GST, let us have a look upon the course components of the workshop, "Tender Process, e-Tendering and Goods and Services Tax (GST) for Deductors".

Tender Process, e-Tendering and GST for Deductors:

About the Workshop

This workshop is primarily to build and enhance the capacities of officers in preparing Tender Document, using e-Tendering and ensuring Compliance of Goods and Services Tax (GST) Act in Procurement Procedures. It is very suitable for the Financial and Administrative Officers, Drawing and Disbursing Officers (DDOs), Accounts Officers, Section Officers, and Officer/officials in-charge of Financial Operations.

Expected Learning Outcomes

By the end of this course, participants will be able to:

•     Describe and apply the rules of Purchase in Tendering and e-Tendering processes.

•     Describe and use e-Tendering for purchases as per guidelines of Government.

•     Describe and ensure the Compliance of GST Act in Procurement.

Topics to be covered:

1.         Tendering and GST: An Overview

2.         Duties of Finance Officers and Drawing and Disbursing Officers (DDOs)

3.         Procurement Using Tendering Process

4.         Assignments on Tendering and GST for Government Officers

5.         e-Tendering: Preparing Tenders and Terms

6.         e-Tendering: Uploading and Opening of Tender

7.         Monitoring and Evaluating Performance of Contractors

8.         Goods and Services Tax (GST): An Introduction

9.         Assignments on e-Tendering and GST

10.         GST in Procurement of Goods and Services

11.         Practical Illustrations for Computing TDS on GST

12.         Right to Information (RTI) Act for Deductors

13.         Discussion on Assignments and FAQs on Tendering and GST

14.         Assessment, Feedback, Evaluation and Certificate Distribution

Kindly raise the queries if any.

I received a call to provide guidelines on registration of Government organizations for Goods and Services Tax Act today. I usually be invited to deliver sessions on this issue. In order to make a crispy and easy to understand process, an idea came in mind to let it note down in the shape of an article. I hope you will be benefited from this write-up.

GSTIN for Deductors in Government:

For all Government Departments and organization, it is not necessary to get register for Goods and Services Tax Identification Number (GSTIN). The seller’s GST registration is mandatory for persons with annual turnover of above Rs. 40 Lacs and the Deductor’s GST registration is mandatory if an organization is making payment in contract worth above Rs. 2.5 Lacs.

GST Registration:

Like PAN and TAN, the GST registration is also very easy. It comprises 15 digits number issued by the tax authorities to monitor the compliance of Goods and Services Tax Act. For GST registration, a lot of documents should be ready in hand firstly:

(a) Checklist of required documents:

For Sellers’ registration:

PAN Card, Aadhaar Card / Partnership Deed / Certificate of Incorporation of Company, Photograph of Owner/s, Banking Details, and Address Proofs. For banking details, a copy of cancelled cheque is required and for address proof, any document like property tax receipt / Municipal Tax Copy / Electricity Bill / Rent Agreement.

For Deductors’ Registration:

PAN Card, Aadhaar Card, Photograph of Drawing and Disbursing Officer / Head of Office, Banking Details, and Address Proof. For banking details, a copy of cancelled cheque is required and for address proof, any document like property tax receipt / Municipal Tax Copy / Electricity Bill / Rent Agreement.

Why to register for Goods and Services Tax (GST) in Government Organizations:

The Government Organizations including local authorities are liable to pay tax on supply of non-exempt services as per directions provided in Section 7 (2b) of GST Act. For example, on the supplies or contact worth more than Rs. 2.5 Lacs, it is required to deduct TDS on GST as per the provisions of reverse charge mechanism.

Constitutional Provisions for enforcing GST:

Article 154 of Indian Constitution states that the Governor of each State will exercise the Taxation in the State. The Section 3 of GST Act, the Governor will exercise the Act through the officers subordinate to him in accordance with the Constitution. The Finance Department of Haryana and other State Government took the responsibility of compliance of all provisions of GST Act in the State Government Departments in the name of Governor.

TDS on GST:

As per section 51 of the GST Act, 2017, the TDS on GST is deducted at the rate of one per cent on account of CGST and one percent on account of SGST from the payment made or credited to the supplier where the total value of the supply under a contract exceeds two lakh and fifty thousand rupees (excluding tax payable under the GST Acts). Further, the deductor shall remit the deducted amount to the Government and is also required to furnish a certificate to the deductee by mentioning the details of the amount deducted and payment of such deducted amount.

Process of Registration for GST for Deductors:

      (a) Go to https://gst.gov.in
(b) Use “New Registration” Command in Services è Registration.
(c) Select ‘Tax Deductor’ in the box “I am a”.
(d) Give your TAN number, no need to give PAN number of DDO.
(e) Enter the State, District, and Name of Deductor (DDO), email and mobile number to confirm, verify by the OTP received.
(f) TRN: 
(g) Now again go to Services èRegistration and Use ‘TRN’ to proceed.
(h) Give Business Details

After submitted OTPs, a Temporary Reference Number (TRN) will be provided and it is mandatory to submit the required documents in Part-B within 15 days of issue of the TRN.

 aAs desired by the portal i.e. Details of DDOs, Type of Government, PAN number, Aadhar Number (not mandatory), Residential Address of DDO, Photograph of DDO etc. Thereafter it will also ask to provide the office address details with uploading of address proof. Finally, it will ask to verify either through DSC or EVC.

·         (i) After giving all details, the application will be processed and 15 digit GSTIN will be generated.

Copyright © 2020 Dr. Lalit Kumar. All rights reserved.

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