{"id":279,"date":"2023-06-26T15:32:32","date_gmt":"2023-06-26T15:32:32","guid":{"rendered":"https:\/\/santeoaccounting.com\/?page_id=279"},"modified":"2023-06-26T18:41:30","modified_gmt":"2023-06-26T18:41:30","slug":"bas-preparation-2","status":"publish","type":"page","link":"https:\/\/santeoaccounting.com\/?page_id=279","title":{"rendered":"BAS PREPARATION"},"content":{"rendered":"\n\n\nn\n\n\n

BAS<\/span> PREPARATION 
<\/h3>\n\n

Business Activity Statement<\/strong> is a predefined form to be submitted to the\nAustralian Tax office by all the business persons in order to report on their all\nthe tax obligations during the period covered. BAS is generally required to be\nfiled quarterly by various businesses
<\/p>\n

 <\/p> \n\n\n\n\n

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
<\/h6>\n

____<\/h2>\n

  • Goods\n\tand Services Tax<\/b><\/span><\/p>\n<\/li><\/ul>

      \n\t

      The\n\tamount of sales done and GST liabilities pertaining to sale
      \nii.\n\tThe amount of purchases and relevant GST credits<\/span><\/p>\n<\/ol>

        \n\t

      • PAYG\n\tWithholding<\/b><\/span><\/p>\n<\/li><\/ul>

          \n\t

          The\n\tamount of payment as wages and salary
          \nii. The amount paid which\n\tis subject to PAYG withholding<\/span><\/p>\n<\/ol>

            \n\t

          • PAYG\n\tInstalments<\/b><\/span><\/p>\n<\/li><\/ul>

              \n\t

              The\n\tAmount paid as PAYG instalments<\/span><\/p>\n<\/ol>

                \n\t

              • Fringe\n\tBenefits Tax<\/b><\/span><\/p>\n\t<\/li>

              • Wine\n\tEqualization Tax (WET)<\/b><\/span><\/p>\n\t<\/li>

              • Luxury\n\tCar Tax (LCT)<\/b><\/span><\/p>\n<\/li><\/ul>

                \n\n\n\n\n\n\n<\/p>

                BAS\nstatements needs to be duly filled and submitted to ATO within\nprescribed time limit.<\/font><\/span><\/p>\n\n\n\n\n\n

                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
                <\/h5>\n

                ____<\/h2>\n

                Monthly reporting :\n<\/strong><\/p>\n

                In case the Assessee has monthly payment requirement, the due date is usually on the 21st day of the following month. In case of\npublic holiday, payment can be made on next business day.
                <\/p>\n\n


                <\/p>\n\n\n\n\n\n

                H o w  c a n  y o u  l o d g e  y o u r  B A S\n 
                <\/h5>\n

                _____<\/h2>\n

                \nBAS\ncan be lodged b in following manner:<\/strong>
                \n\u2022 Online, using the\nBusiness Portal, Standard business reporting (SBR) or Electronic\ncommerce interface (ECI).
                \n\u2022 By E-mail.
                \n\u2022 through a\nregistered tax agent or BAS agent.
                \n\u2022 ATO also provides option\nof submission of BAS through phone in case all the other options are\nnot available.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>\n\n\n\r\n

                 <\/p>\r\n\n\n\n

                  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\n
                <\/h5>\n

                ____<\/h2>\n

                \nAfter\nsubmission of BAS statement the business records needs to be kept for\na period of whichever is later:
                \n\u2022 Five years after the\ntransaction was completed,<\/span>
                \n\u2022 Four years after lodging of\nBAS.<\/span>
                \n\u2022 Four years after receiving amended Assessment Order.<\/span><\/em><\/font><\/font><\/font><\/span><\/span><\/p><\/h5>\n\n\n\n\n

                  F a i l u r e  o f  i n  L o d g i n g  B A S
                <\/h5>\n

                _____<\/h2>\n

                \n\u2022<\/em><\/font><\/span>\n<\/em><\/font><\/span>BAS\ncan impose Failure to Lodge (FTL) penalty in case there is failure in\nlodging of BAS.
                \n\u2022 ATO can issue FTL notice for defaults of\nAssesee<\/em><\/font><\/font><\/font><\/span>.<\/font><\/font><\/span><\/p>

                \n<\/p>

                \n
                \n
                \n\n<\/p>\n\n\n\n\n

                 C a s h  A c c o u n t i n g  f o r  G S T
                <\/h5>\n

                ____<\/h2>\n

                \nAustralian\nbusiness can account for GST on cash basis if they satisfy following\nterms:<\/b><\/font><\/font><\/font><\/span><\/span><\/p>

                  \n\t

                • Their\n\tannual turnover is less than $2 Mo. per annum.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>\n\t<\/li>

                • If\n\tbusiness is following cash basis of accounting for your business.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>\n\t<\/li>

                • Australian\n\tTax Office permits use of Cash basis of Accounting for a Business.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>\n<\/li><\/ul>

                  \nChanging\nSystem of Accounting:<\/b><\/span><\/font><\/font><\/font><\/span><\/em><\/p>

                  \nBusiness\ncan switch the system of accounting. however the change is permitted\nonly at the start of Accounting year after giving transitory effects\nin the books of accounts.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>

                  \nBenefits\nof cash basis of Accounting for small business:<\/b><\/span><\/font><\/font><\/font><\/span><\/em><\/p>

                    \n\t

                  • Cash\n\tbasis of Accounting is an easy system of Accounting.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>\n\t<\/li>

                  • Only\n\tmoney which is paid for purchases is considered as purchase for\n\treceiving credit of purchase in similar fashion only money received\n\tfor sale of goods is considered for calculation of GST payable.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>\n\t<\/li>

                  • Part\n\tpayments are considered in part for claiming credit or payment of\n\tGST. By having cash system small business can pay tax only for\n\trealized amount out of total receivables hence it resolves hassles\n\tof claiming credit in case money is not received for bad debts.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>\n<\/li><\/ul>

                    \nHowever\nit is optional to have cash basis of accounting and business can opt\nfor accrual system of accounting.<\/span><\/font><\/font><\/font><\/span><\/em><\/p>

                    \n\n\n\n\n\n\n<\/p>

                    \nIMPORTANT\nDISCLAIMER:<\/b><\/span><\/font><\/font><\/font><\/span><\/em>
                    \nThis\narticle does not constitute advice. This article is to be used as a\ngeneral guide for our clients for their own private information<\/span><\/font><\/font><\/font><\/span><\/em><\/p>\n\n\n\n\n

                     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
                    <\/h5>\n

                    _____<\/h2>\n

                    \nYou\nare required to pay your taxes in advance in case you fall under\ncertain criteria’s. The handout helps in explaining when you are\nrequired to pay your taxes under Pay as you Go tax assessed by\nAustralian Tax Office.<\/font><\/font><\/font><\/span><\/p>

                      \n\t

                    • You\n\tare required to pay your taxes in advance in case you fall under\n\tcertain criteria\u2019s.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>\n\t<\/li>

                    • The\n\thandout helps in explaining when you are required to pay your taxes\n\tunder Pay as you Go tax assessed by Australian Tax Office.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>\n\t<\/li>

                    • You\n\tcan also pay tax as per your own calculations rather than as per the\n\tschedule given by ATO however in case the estimate falls wrong by\n\t85% you are liable to pay interest as well as penalty<\/em><\/font><\/font><\/font><\/span>.<\/font><\/font><\/span><\/p>\n\t<\/li>

                    • Common\n\tGST Mistakes to avoid while filing BAS statement with ATO<\/b><\/font><\/font><\/font><\/span><\/span><\/p>\n<\/li><\/ul>

                      \nRequirement\nof valid tax invoice for availing GST credit :
                      \nBusiness should\ntry to obtain a valid tax invoice before claiming credit of GST. In\ncase the GST credit is claimed without a valid tax invoice business\nshould contact ATO for granting permission to claim credit of same .<\/font><\/font><\/font><\/span><\/p>

                      \nCommon\nGST Mistakes to avoid while filing BAS statement with ATO<\/em><\/b><\/font><\/font><\/font><\/span><\/span><\/p>

                      \nHere\nis the list of some of the common mistakes which bookkeepers make in\nfiling BAS<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \n\n\n\n\n<\/p>

                      \nHere\nis the list of some of the common mistakes which bookkeepers make in\nfiling BAS<\/em><\/font><\/font><\/font><\/span><\/span><\/p>\n\n\n\n\n\n

                      ____<\/h2>\n

                      \nRequirement\nof valid tax invoice<\/span> for availing GST credit<\/font><\/b><\/font><\/font><\/span><\/h3>

                      \nBusiness\nshould try to obtain a valid tax invoice before claiming credit of\nGST. In case the GST credit is claimed without a valid tax invoice\nbusiness should contact ATO for granting permission to claim credit\nof same.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \n
                      \n
                      \n\n<\/p>

                      \nWith holding\nof Tax when there is no ABN<\/span> on Invoice<\/span>;<\/font><\/b><\/font><\/font><\/span><\/h3>

                      \nAustralian\nBusiness Number (ABN) is required by all the business which operate\nwithin Australia. All the business entities operating in Australia\nare required to quote ABN number in their invoices for supply of\ngoods or services.<\/font><\/font><\/font><\/span><\/p>

                      \nIn\ncase supplier of goods or service has not quoted ABN number on the\ninvoice and if the invoice amount exceeds 75$ , the business is\nrequired to withhold tax at maximum marginal rate from the total\namount to be paid to the business.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \nThis\nrule does not apply in case the business is not located in Australia\nor if the supply is made in private capacity as a hobby and there is\nno intention of trade.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \n
                      \n
                      \n\n<\/p>

                      \nRate<\/span>\nof With holding:<\/font><\/b><\/font><\/font><\/span><\/h3>

                      \nAt\npresent the rate of withholding is 46.5%.Credit of GST on such\ninvoice: However business cannot receive any GST credit for the\ninvoices received from the vendor not having ABN.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \nScreen\nfor selection of tax code<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \n
                      \n
                      \n\n<\/p>

                      \nRate\nof With holding<\/span>:<\/font><\/b><\/font><\/font><\/span><\/h3>

                      \nThere\nwould be penal provision for business in case the amount is not\nwithheld.
                      \nDeduction of same as business Expenditure: In case\nwithholding tax is paid at higher level business cannot claim\ndeduction for the same.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \n
                      \n
                      \n\n<\/p>

                      \nAnnual\nreporting<\/span>:<\/font><\/b><\/font><\/font><\/span><\/h3>

                      \nBusiness\nneeds to be complete an Annual report summarizing all such payments\nand send the same to ATO.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>

                      \n
                      \n
                      \n\n<\/p>

                      \nReporting\nin Business Activity statement<\/span> :<\/font><\/b><\/font><\/font><\/span><\/h3>

                      \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<\/p>

                      \nBusiness\nneeds to be complete an Annual report summarizing all such payments\nand send the same to ATO.<\/em><\/font><\/font><\/font><\/span><\/span><\/p>\n\n\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"nf_dc_page":"","pagelayer_contact_templates":[],"_pagelayer_content":"","footnotes":""},"class_list":["post-279","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=\/wp\/v2\/pages\/279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=279"}],"version-history":[{"count":5,"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=\/wp\/v2\/pages\/279\/revisions"}],"predecessor-version":[{"id":411,"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=\/wp\/v2\/pages\/279\/revisions\/411"}],"wp:attachment":[{"href":"https:\/\/santeoaccounting.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}