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Santeo Accounting
BAS PREPARATION
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BAS PREPARATION 

Business Activity Statement is a predefined form to be submitted to the Australian Tax office by all the business persons in order to report on their all the tax obligations during the period covered. BAS is generally required to be filed quarterly by various businesses

 

 
B A S  s t a t e m e n t  m a i n l y  i n c l u d e s

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  • Goods and Services Tax

    The amount of sales done and GST liabilities pertaining to sale
    ii. The amount of purchases and relevant GST credits

  • PAYG Withholding

    The amount of payment as wages and salary
    ii. The amount paid which is subject to PAYG withholding

  • PAYG Instalments

    The Amount paid as PAYG instalments

  • Fringe Benefits Tax

  • Wine Equalization Tax (WET)

  • Luxury Car Tax (LCT)

BAS statements needs to be duly filled and submitted to ATO within prescribed time limit.

D u e  D a t e s  f o r  L o d g e m e n t  o f  B A S

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Monthly reporting :

In case the Assessee has monthly payment requirement, the due date is usually on the 21st day of the following month. In case of public holiday, payment can be made on next business day.


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H o w  c a n  y o u  l o d g e  y o u r  B A S  

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BAS can be lodged b in following manner:
• Online, using the Business Portal, Standard business reporting (SBR) or Electronic commerce interface (ECI).
• By E-mail.
• through a registered tax agent or BAS agent.
• ATO also provides option of submission of BAS through phone in case all the other options are not available.

 

  T i m e  d u r a t i o n  f o r  r e c o r d  k e e p i n g

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After submission of BAS statement the business records needs to be kept for a period of whichever is later:
• Five years after the transaction was completed,
• Four years after lodging of BAS.
• Four years after receiving amended Assessment Order.

  F a i l u r e  o f  i n  L o d g i n g  B A S

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• BAS can impose Failure to Lodge (FTL) penalty in case there is failure in lodging of BAS.
• ATO can issue FTL notice for defaults of Assesee.



 C a s h  A c c o u n t i n g  f o r  G S T

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Australian business can account for GST on cash basis if they satisfy following terms:

  • Their annual turnover is less than $2 Mo. per annum.

  • If business is following cash basis of accounting for your business.

  • Australian Tax Office permits use of Cash basis of Accounting for a Business.

Changing System of Accounting:

Business can switch the system of accounting. however the change is permitted only at the start of Accounting year after giving transitory effects in the books of accounts.

Benefits of cash basis of Accounting for small business:

  • Cash basis of Accounting is an easy system of Accounting.

  • Only money which is paid for purchases is considered as purchase for receiving credit of purchase in similar fashion only money received for sale of goods is considered for calculation of GST payable.

  • Part payments are considered in part for claiming credit or payment of GST. By having cash system small business can pay tax only for realized amount out of total receivables hence it resolves hassles of claiming credit in case money is not received for bad debts.

However it is optional to have cash basis of accounting and business can opt for accrual system of accounting.

IMPORTANT DISCLAIMER:
This article does not constitute advice. This article is to be used as a general guide for our clients for their own private information

 P a y  a s  y o u  g o  t a x  i n s t a l l m e n t s

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You are required to pay your taxes in advance in case you fall under certain criteria's. The handout helps in explaining when you are required to pay your taxes under Pay as you Go tax assessed by Australian Tax Office.

  • You are required to pay your taxes in advance in case you fall under certain criteria’s.

  • The handout helps in explaining when you are required to pay your taxes under Pay as you Go tax assessed by Australian Tax Office.

  • You can also pay tax as per your own calculations rather than as per the schedule given by ATO however in case the estimate falls wrong by 85% you are liable to pay interest as well as penalty.

  • Common GST Mistakes to avoid while filing BAS statement with ATO

Requirement of valid tax invoice for availing GST credit :
Business should try to obtain a valid tax invoice before claiming credit of GST. In case the GST credit is claimed without a valid tax invoice business should contact ATO for granting permission to claim credit of same .

Common GST Mistakes to avoid while filing BAS statement with ATO

Here is the list of some of the common mistakes which bookkeepers make in filing BAS

Here is the list of some of the common mistakes which bookkeepers make in filing BAS

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Requirement of valid tax invoice for availing GST credit

Business should try to obtain a valid tax invoice before claiming credit of GST. In case the GST credit is claimed without a valid tax invoice business should contact ATO for granting permission to claim credit of same.



With holding of Tax when there is no ABN on Invoice;

Australian Business Number (ABN) is required by all the business which operate within Australia. All the business entities operating in Australia are required to quote ABN number in their invoices for supply of goods or services.

In case supplier of goods or service has not quoted ABN number on the invoice and if the invoice amount exceeds 75$ , the business is required to withhold tax at maximum marginal rate from the total amount to be paid to the business.

This rule does not apply in case the business is not located in Australia or if the supply is made in private capacity as a hobby and there is no intention of trade.



Rate of With holding:

At present the rate of withholding is 46.5%.Credit of GST on such invoice: However business cannot receive any GST credit for the invoices received from the vendor not having ABN.

Screen for selection of tax code



Rate of With holding:

There would be penal provision for business in case the amount is not withheld.
Deduction of same as business Expenditure: In case withholding tax is paid at higher level business cannot claim deduction for the same.



Annual reporting:

Business needs to be complete an Annual report summarizing all such payments and send the same to ATO.



Reporting in Business Activity statement :

Business needs to be complete an Annual report summarizing all such payments and send the same to ATO.