Ans: All individual taxes like VAT, Excise, Service Tax, etc. Have been combined together under one uniform heading–GST. Previously, taxes varied from state to state.
Ans: Yes, GST applicable on service industry. GST was originally called service tax which now is being rolled ou as Goods and Service Tax, GST from 1st July, 2017.
Ans: The Percentage of GST is 12% on Royalty amount and 18% on Franchise Fee.
Ans: As you are that the registered office has reduced the rate of royalty and the rate of GST is now 2% instead of 15%. This will be applicable when you will sign a new agreement with registered office. There after you will enjoy double benefits from 1st july, 2017.
Ans: Education to students is free from any kind of tax. Therefore you aren’t supposed to tax parents for providing education to their children. So please do not collect GST on education nor does the government wants GST on education.
Ans: First you have to make a society. For the purpose of sale and purchase of material you have to make a separate firm.
Ans: No, as soon as you start selling outside your state, GST Registration will become compulsory for you even if you sell a Rs.10/-item also.
Ans: A society is a group which work for the benefit of a large number of people and its only motto is not just earning profits. In India, Schools are run under Registered societies a per the definition of the society. Some states make it mandatory to register playschools also. A society can’t sell & buy goods.
Ans: It is quite easy to form a society although every state has some simple differences in the rules. Please consult a financial advisor and form a society as soon as possible.
Ans: You will sell these through your firm to parents on MRP. No tax can be collected on that.
Ans. • If a firm has an annual turnover of less than 20Lakhs and • If it sells material only in it’s city or state • Then it needs not to Register for GST. Your school firm fulfils these conditions so you cant charge GST on items of books, bags etc. that you sell through your firm.
Ans: If you view positively, you will understand that there’s not much change on inventory Purchases on Implementation of GST. Printed books and Dress-Kits were exempted of tax previously and even now. GST doesn’t affect them. Some items like note books, some stationary things, bags, shoes, etc. will cost a little more post GST. A detailed information regarding the same will be provided to you in the new price list which will be applicable fro 1st July, 2017.
Ans. It is quite easy to establish a firm. A Firm can be: • Of your sole proprietorship • A partnership firm • Or a pre-existing firm which can sell all these items of your school. Either which way, please consult your financial advisor and work accordingly.
Ans. When you get registered with the income tax department you get a PAN CARD. For any business/work, you need the PAN CARD which has your PAN No. issued on registration with the Income Tax Department. Your Society and Firm, definitely need the PAN Card No. So please discuss with your Tax Consultant and do the needful.
Ans. A Firm can do business for Monetary profits whereas a Society cannot do so.
Ans. A playschool can be run as/under a firm but we certainly advise you to please run your school/play school under a society only.
Ans. Yes, the name of your Society will be printed on the Receipt Books.
Ans. Yes, you need to maintain two separate account. Society Account – For School Fees Firm Account – For Sale and Purchase
Ans. You can operate school through a new firm or old firm instead of a society. This new Firm of yours will have an agreement with SRIHA Educations (P) Ltd. This Firm will only be an Education Provider and if it does any other work other than providing education, GST is applicable for which your Firm will have to register and quote the PAN No.
Ans. Of course, you can still work under your old firm but by fulfilling the following points: a) It is mandatory for you to have a new agreement with SRIHA Educations (P) Ltd. Or else we cannot reduce your Royalty rates (The Royalty rates have been reduced) and GST rates will be 18%. b) For a combined Service + Sale annual turnover of Rs.20 Lakhs, you must register for GST. c) If you have a previous VAT No. then Registration/Migration for GST is mandatory. Please take suitable advice from your Financial Consultant.
Ans. After 1st July, 2017 whenever the new agreement between your Society and SRIHA Educations (P) Ltd. Will be drawn up and signed, The new Royalty rates and GST rates will immediately be applicable. However, please ensure the following also before that: • Closure of old balance dues by clearing them off completely. • Discontinuation of old relationship by some legal documentation. • Submission of new documentation which are: a) Photocopy of Formation of Society papers b) Photocopy of Society registration c) Photocopy of PAN CARD d) Photographs of Society Members e) Registration fee of Rs. 10,000 f) GST of Rs. 1,200
Ans. Royalty rates will remain fixed for the next 5 years. But GST rates that have been decided by the government can be increased or decreased by it.
Ans. As per the old agreement the royalty is more. You need to draw up & sign a new agreement with us because your Royalty rate for the new agreement has been reduced.
Ans. In such cases, we have a prescribed fee by name, Fee Charter. You will need to pay that fee along with an 18% rate of GST on it.
Ans. Whenever you pay royalty through your society to SRIHA Educations Pvt.Ltd., you must deduct TDS and also pay it to the IT Department. Please remember that can deduct TDS only when your society have a TAN No.. You can get more information about the same from your financial advisor.
Ans. Playschool registration is compulsory . States like AP., Telangana and Karnataka have 100% playschool registration. Some other states thinking of making it compulsory. So it is recommended.
Ans. No, RTE is not applicable on playschool. But if you are running playschool along with Formal school, then RTE will be applicable from playschool level itself.
Ans. Only One agreement will be signed for running ABC Payschool.
Ans. Yes, We will provide you the Receipt Books. Only the information you need to provide us are follow: • Name of your Society • Copy of Society Registration Certificate • Copy of Society Papers • Copy of PAN CARD Of Your Society • Copy of Firm Registration and other details • Copy of PAN CARD Of Your Firm. By default you will get 20 Receipt Books (10 for Society & 10 for Firm)
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