Everything That Accountants Should Know About SALT Returns.

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SALT in the taxation context is commonly used in the USA. SALT represents state and local taxes
for businesses. Various States in the US have their own system of taxation and this is in addition
to the federal taxes that businesses are subject to. In order to stay compliant each business
needs to file and pay income tax each quarter. Then there is sales tax on product sales and the
percentages vary from one State to another and even within a State where counties may impose
local taxes and additional taxes such as unemployment taxes and licence fees. In the Indian
context SALT can be taken to mean and include sales tax or GST and income taxes. There are
other taxes such as professional tax payable to Municipal corporations. Accountants have the
task of preparing tax returns and filing them as well as making payments.

GST in India

 Sales tax structure has been rationalized in India with a single indirect tax on goods and services.
GST is value addition tax where tax is applicable at each stage of the transaction. Ultimately, the
buyer of a product or service bears the full amount of GST charged by the dealer. Traders in the
chain must charge GST. At the same time, they can claim setoff being the difference between
the tax they charge to buyers and tax they paid to their supplier and claim state tax refunds. All
this must be reflected in the GST returns and taxes need to be deposited accordingly.

Income tax

 Businesses are required to file income tax if their taxable income exceeds the prescribed limit.
Tax returns can now be filed online in the application form and then a digital signature certificate
is attached prior to submission. Bank statement, form 16/16A, challan of tax payment and proof
of investment are some of the documents required at the time of filing IT returns and payment
of advance tax which does require extremely meticulous advance tax planning.

Accountants are primarily taught about accounting procedures and learn about state and
income tax while on the job. It is better if accountants join short Taxation Course in Ahmedabad
to gain in-depth knowledge of the tax perspective in accounting.
Location: Ahmedabad, Gujarat, India

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