[Contents]
Table of Content
1 | 0
2 | 0
3 | Drafting 108 Statement
4
5 | Reviewing
6 | Finalize and ready to submit
[Manual]
Manual for Statement Regarding the Payment of Salary: U/S 108
Sl. No.: | Job Content | Details of work | Specimen of Format/Documents
1.00 | Fixation of Quotation and Confirmation of the Job | Correspondence with client personnel if they are going to prepare this statement or if they want us to prepare and submit. This will enable us for the next step.
2.00
At the time of Starting-Collection of Necessary Documents | Get the Audit report which is signed by the Auditor to get the right Salary and Allowances figure paid by the company. | Screenshot 3
Get the Salary Statements/ Pay slip from client for 12 months period (Financial Year) say from July 18 to June 19
Ask client personnel if any additional payment was made in lieu of Salary during the year such as Bonus, Incentives, Leave encashment etc. Get the supportings of those documents.
3.00 | Drafting 108 Statement
Read the requirement heads well, this will help to understand what kind of information is required in which way. Give the following information, namely :-
(a) the name and address of every person to whom such payment has been made, or was due, during the preceding financial year if the payment exceeds such amount as may be prescribed;
(b) the amount of payment so made, or due;
(c) the amount deducted as tax from such payment; and
(d) such other particulars as may be prescribed:
To ensure the Total income and Tax deduction amount, check the Tax calculation sheet of that compnay. This will help a lot to complete this Statement.
While putting the Tax deducted amount, check as well if these Tax were really paid or not. If not yet paid, inform the clients/ Locals to pay such amount.
After putting all the employees information regarding salary, match the total figure with the Audit Report Salary Allowance Head. They should match. If they don't, then check that information again and correct them.
Send a copy to Clinets after it is complete. Finally get signature from clients after checking , and submit it to the Tax Authority. Send a receipt copy to Client.
N.B. This report is a must and mandatory compliance including 108A and 75A for all kind of business and non compliance of these will have a great consequences.
5.00 | Reviewing
1. Check if the Company name, addrerss, TIN number, reporting periods are put correctly. | Screenshot 1
2. Match the total salary amount between this report and Audit report.
3. Check how many employees are eligible for taxes and if they have paid or not.
4. Check the total number of employee if they match with the Salary Statement
5. Check if the Perqusite level is within the limit.
6. Check if the calculations & links are Ok.
7. Name and designation of the person is correct who is going to sign it. | Screenshot 2
6.00 | Finalize and ready to submit
[Sample.]
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[Standard_Review]
AHGS Center for International Languages Inc.
Standard Review
ACCOUNTS/PROCEDURES | Checking | Index | Remarks | Level of Reveiw
Senior | Junior (self-reveiw)
Bank
1. | Make sure that the ending balance of Cash in Bank - MBTC is reconciled with the bank statement thru Bank Recon Working Paper | √ | Kindly note if there are stale checks.
Current Assets
1 | Make sure that Accounts Receivable is based on the billings forwarded, converted to Peso | √ | If lumped with the Loan, kindly prorate based on yen.
2 | Make sure that Advances for Liquidation represents the cummulative cash balance undeposited in the Visa Breakdown File | √ | This will be increased to P5,000 and serves as the petty cash fund.
3 | Make sure that Income Tax - Creditable reflects the 2307 received for the period. | √
Fixed Asset
1. | Make sure that the book value of the Fixed sset is reconciled to the Lapsing Schedule. | √
Non-current Assets
1. | Make sure that the security deposit represents the actual security deposits as reflected in the Rent Tracker. | √ | Rent tracker is prepared by AHGS Acad point person.
CURRENT LIABILITIES
1. | Make sure that the Accrued Expenses represents short-term liabilities other than payroll. | √
2. | Make sure that Accrued Payroll is based on the 2nd half Payroll files. | √ | This shall also include homebased.
3. | Make sure that Advances from Students - SSP and Visa are based on the movements of the following: | √
a. Increases (Credits) - Deposit Summary
b. Decreases (Debits) - Visa Breakdown (Students)
4 | Make sure that Advances from students - utilities equals zero. | √ | Collections on this shall be transferred to AHGS Next.
5 | Make sure that Advances from Students - Managemgent Fee shall be based on the receipts in Deposit Summary | √ | At the end of the year, the balance will be used as a mitigating figure in case any of the advances falls negative in its normal balance
6 | Make sure that Advances from students - others represents unclassified collections from students | √
7 | Make sure that Advances from students - pickup must be based on the movements made for pickup starting 2019. | √
8 | Make sure that Advances from students - pickup and others must be the movements made for pickup prior to 2019. | √
9 | Make sure that Advances from students - Security Deposit are based on the movements same with those enumerated in 3.a. and b. | √ | Shall be adjusted at the end of the year to reflect the security deposits made by existing students.
10 | Make sure that Advances from students - staying before/extending after the desired date are based on the movements same with those | √
enumerated in 3.a. and b.
11 | Make sure that Advances from students - trainings fee are based on the movements same with those enumerated in 3.a. and b. | √
12 | Make sure that Loan Payable - AHGS Co. Ltd. is monitored. As much as possible, pay within the year otherwise draft Loan Agreement | √
13 | Make sure that ST Loan Payable is monitored and that of Glooba. This is to be paid within the year otherwise needs Loan Agreement | √
14 | Make sure that Withholding Tax - Compensation recorded coincides with that in 1601C Working Paper | √
15 | Make sure that Withholding Tax - Expanded recorded coincides with 0619E Working Paper | √
Net Vat Payable (Overpayment)
1. | Make sure that Input VAT is supported by ORs and are reportable transactions. | √
2. | Make sure that Output VAT are for Customers that are non-PEZA | √
NON-CURRENT LIABILITIES
1. | Make sure that Advances from Affiliates - Next represents liabilities for cash transfer to AHGS Next. | √
2. | Make sure that the depreciation expense was properly calculate | √
3. | Please prepare lapsing/FA movement to control depreciation expense on P/L statement | √
- Movement accumulated depreciation = Depreciation expense (+-) Gain/Loss on sale of fixed assets
4. | Gain/loss recognized on disposal assets | √
5. | Please review on system (accurate) the depreciation calculation is not over/under stated on current period | √
EQUITY
1. | Make sure that Capital Stock reflected is equal to the Amended AOI and GIS | √
2 | Make sure that Current Year Earnings balance is the amount in the Income Statement (P and L) of the current year. | √
3 | Make sure that Retained Earnings balance is the cummulative balance in the Income Statement from the beginning to the previous year. | √
INCOME
1. | Make sure that Service Revenue - Books is with Output Vat and corroborated by supporting carbon copy official receipts | √
2. | Make sure that Service Revenue - Class Fee are from PEZA-Registered entities, otherwise include Output VAT in hournalizing | √ | To ask for PEZA Certificates from customers, and ask for the 2307 certificates if customer withheld expanded
3. | Make sure that Service Revenue - Remittances are zero-rated and are exclusive of Loans from related parties of Japan. | √ | This are from the Billings of AHGS Co. Ltd. And Glooba
COST OF SALES
1. | Make sure that Books and Materials are for inventories or supplies directly related to the teaching operations of AHGS Acad. | √ | This shall not be limited to books only.
2. | Make sure that Condo Dues and Utilities are for Keppel alone and 2% is withheld. | √
3. | Make sure that Other Direct Cost - Student Package are expense package of the company to its students | √ | This shall include fitness gym, diet meal, tasting, spa, and diving fee.
4 | Make sure that SWP Expense are for employees with SWP Disbursements in Visa Breakdown
5 | Make sure that Visa Expenses are for employees with Visa Disbursements based on Visa Breakdown.
OTHER INCOME
1. | Make sure that Interest Income reflected are net of Final Withholding Tax | √
2 | Make sure that Realized Foreign Exchange accounts for the difference of A/R to cash received and shall not be that of Loan.
OPERATING EXPENSES
1. | Make sure that Bank Service Charges does not account for Final Withholding Tax | √
2. | Make sure that Corporate Affairs are for expenses related to employee development like seminars and celebrations of the company. | √
3 | Make sure that Management and Consultancy is recorded monthly and relates to the service done by TCF
4 | Make sure that Medical Expenses do not account for deductible disbursements to employee payroll but purely expenses shouldered by the company.
5 | Make sure that Office Supplies are expenses other than those that qualify for Books and Materials
6 | Make sure that Recruitment Expense are expenses relating to job posting, hiring and pre-employment to be bourne not by employees
7 | Make sure that Taxes, Permits, and Licenses refers to disbursements other than those existing account titles for BIR-Specific filing and payment
[Sheet2]
Monthly Accounts For Limited Company
Sl. | Job | Details of Workings | Remark
1 | Collect Information & Documents | Cash certificate of monthly closing cash amount.
Cash counting physically ( if applicable)
Encashment Certificates(if any)
Current months bank statements
Current month Cash Payments & Receipts Voucher
Current month Bank Payments & Receipts Voucher
Receivable & Payable Ledger with Invoice of addition and adjustment.
Break-up of Liabilities of Expenses-Salary, House Rent, Office Rent and others expenses
Preperation of Bank Reconciliation(if any)
2 | Preparation Financial Statements | Prepare Financial Statement based on Quick Book PL & BS
Prepare Financial Statement based on cash & bank payments & receipts
Opening Balance will be similar with latest submitted Financial Statements
Reconcile Financial Statements if any adjustments done on previous Accounts
3 | Application Preparation | Prepare application letter for Corresponding Bank
Prepare application letter for Bangladesh Bank
Prepare apology letter for Bangladesh Bank if due FDI report not submitted