Payroll Management System

Every assessee carrying on business shall get its accounts audited if certain conditions are fulfilled and the same is true in the case of stockbroker and/or sub-broker. The principles enumerated below are equally important for considering the account amount of sale in their profit and loss account.

Rules to consider a transaction as sale in case of stock broker / sub-broker

Share brokers, on purchasing securities on behalf of their customers, do not get them transferred in their names but deliver them to the customers who get them transferred in their names.

The same is true in the case of sales also. The share broker holds the delivery merely on behalf of his customer. The property in goods does not get transferred to the share brokers.

Only brokerage which is being accounted for in the books of account of share brokers should be taken into account for considering the limits for the purpose of section 44AB.

However, in the case of transactions entered into by the share broker on his personal account, the sale value should also be taken into account for considering the limit for the purpose of section 44AB.

The case of a sub-broker is not different from that of a share broker as far as accounting of revenue from broker activities is concerned.

Explanations

In CIT v. Lallubhai Nagardas & Sons (1993) 204 ITR 93 (Bom) it was held that the transactions of sale purchase of shares done by the assessee as a stockbroker for and on behalf of his constituents were far in excess of the ceiling limit specified in section 44AB. If such transactions are to be considered as sales and turnover of the assessee, the case would be hit by the mischief of section 44AB. The point to be considered is the nature of the function and activities of a broker or an agent who brought the seller and buyer of the equity market together.

The word ‘turnover’ as appearing in section 44AB is not appropriate to the transaction which is done by an agent in the way of bringing together a buyer and a seller for brokerage or commission.

As a share broker, the assessee does not have any interest whatsoever in the goods agreed to be purchased or sold on behalf of his constituents.

In fact, a share broker is subject to the rules and regulations of the stock exchange, whose work is monitored and overseen by the SEBI so as to ensure transparency in the transactions entered into by the share broker on behalf of his principals.

Insofar as a share broker is concerned, he has no authority whatsoever to treat the goods as his own. His only interest in the goods is to receive his brokerage on the transaction from the principals.

The share broker would, therefore, not obviously come within the ambit of section 44AB.

Analysis of sale (form No 3CD)

It would be useful to refer to the format of Form No. 3CD which contains the particulars required to be furnished by the assessee for the purposes of section 44AB.

Item at Serial No. 32 of the form refers to several accounting ratios like gross profit/turnover, net profit/turnover, and stock-in-trade/turnover. Obviously, the accounting ratio envisages the own turnover of the assessee, i.e., the realization of the sale price by the assessee in his own account which is to be considered for the purposes of arriving at the gross profit margin.

However, if the stockbroker is also engaged in buying and selling shares in his personal account then the sale value of such shares is also to be taken into account and aggregated with the brokerage to determine the limit specified in section 44AB.

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Performance management is an essential aspect of employee life. It can assess and improve performance, give feedback, identify training needs, and reward outstanding performance. Performance management helps employees achieve their goals by providing feedback on how they are performing in their job. It also gives employees a chance to review the company’s expectations for them and decide if they are meeting those expectations. It can help employees make improvements or changes in how they do things that will increase productivity or improve the quality of work.

Managers need to understand what they should look for when evaluating an employee’s performance and what kind of feedback should be given at each level. Managers should also know what type of rewards they can give out based on the level of performance that has been achieved.

How does the performance management system work?

Performance management systems are used to measure employees’ performance to reward or sanction them. The system is usually based on a set of objectives that both the employer and the employee have already agreed on. Performance management systems help organizations in many ways: they help with the recruitment process, they help with staff retention, they help with developing better leaders, etc. These objectives are typically grouped into categories such as ‘quality,’ ‘efficiency,’ and ‘customer focus.’

Performance management software is a system that helps HR teams and managers manage their employees’ performance. The system is based on various metrics used to measure employee performance. The metrics can vary from one organization to another, and the company’s strategy usually determines them.

An attendance management software helps to track employee attendance. This software has many benefits, such as increased productivity, reduced absenteeism, and improved quality of service.

What are the five stages of performance management?

Performance management is a process that every company should have in place. It helps managers and employees understand how they are doing and what they need to do to improve their jobs.

There are five stages of performance management:

– Setting goals-: Think about the results you want to see. Before you set a goal, take a closer look at what you’re trying to achieve.

– Monitoring progress-: Continuously measuring performance and providing feedback on progress toward the goals.

– Providing feedback-: Note opportunities for improvement.

– Taking corrective action-: Interacting with the employee to improve performance or behavior.

– Reaching the goal-: To provide a clean and consistent working environment for both managers and staff, which will ultimately result in higher productivity.

How to evaluate employee performance

To evaluate an employee’s performance, Having a system in place is essential. One way to do this is by assigning specific tasks or goals and evaluating them regularly. Performance management software is a solution that helps companies to evaluate their employees’ performance. It provides a detailed overview of the employees’ work, what they do best and what they need to improve. It also allows managers to provide feedback and coaching.

Evaluating the performance of employees is a crucial component of the success of any company. It is essential to know how each employee performs on different tasks and how their performance changes over time. Leave management software lets you know how much time your employees have left for their leaves.

Frequently Asked Questions:-

Q. What is a performance management implementation plan?

A. A performance management plan can help guarantee that individuals achieve their performance objectives and that those goals are consistent with those of the company.

Q. Why do you need to implement a performance management system?

A. Businesses need effective performance management. They are able to integrate their systems, resources, and personnel with their strategic goals through both official and informal approaches.

Q. What is a performance management process?

A. An employee’s job objectives and general contribution to the company are planned, monitored, and reviewed by managers and employees through the performance management process.