Chartered Accountants for manufacturing businesses, taxation and financial management
A Nashik practice that works with businesses across Maharashtra.
Taxation · GST · Accounting and compliance · Audit and assurance · Business advisory · Transfer pricing · Manufacturing finance
Services
A growing business usually deals with income tax, GST and its annual accounts through different people at different times of the year. When the three sets of figures are prepared separately, they seldom agree, and the difference is often first noticed by the department in a GST notice or by the bank at renewal.
The firm works in nine areas, and the first engagement is normally income tax, GST or the annual accounts. Once the business is known to us, the next piece of work is generally evident to both sides: a GST review after a notice, monthly MIS after a difficult year end, or transfer pricing when a group starts to trade between its entities. Each service page describes the work and what differs for a manufacturer, and it lists the documents required at the start.
Manufacturing and group-company work
In a factory, a tax or accounting problem seldom starts in the return itself. It starts in the stock register or a job-work challan, in a transfer between two units, or in an invoice raised on a group company. Our work therefore begins with those records.
Typical work for manufacturers and groups:
- Job work. Tracking inputs and capital goods sent to job workers, the time limits for their return, ITC-04 reporting, and the GST effect when material is not returned in time.
- Multi-unit and multi-state GST. Separate registrations, stock transfers between units valued correctly, credit kept where it belongs, and e-way bills that agree with the books.
- Product costing. Reconciling standard cost with actual cost, item by item, where consumption per unit has moved away from the bill of materials and the margins no longer reconcile.
- Inventory and working capital. Valuation of raw material, WIP and finished goods; slow and obsolete stock; stock statements to the bank that match the books; payments to MSME suppliers within the legal time limits.
- Group companies. Pricing of transactions between related entities, transfer pricing documentation where it applies, consolidated reporting, and structures that still make sense when the next generation joins.
Each of these matters has a cost in money. Input tax credit may be blocked, or reversed with interest. A deduction is lost when a supplier was paid late, and sales to a sister company can lead to a transfer pricing adjustment. Working capital may sit in stock that has never been counted against the books. Our review is carried out on the records before a return is filed or a stock statement is sent, so that the department or the bank is not the first to find a difference. The manufacturing page sets out the issues for each sector: auto components, engineering, pharmaceuticals, food processing, electrical and electronics, and chemicals.
Section 144 of the Companies Act, 2013 applies where we are a company's statutory auditor. Under it, we may not keep the company's books, run its internal audit or provide management services to it, or to its holding or subsidiary company. Other work for that company, such as tax, GST and transfer pricing, requires the approval of its board or audit committee.
Who we work with
- Manufacturing groups with two or more entities, often a manufacturing company, a trading or job-work unit and a firm or LLP that holds property. Auto components, engineering, electrical and electronics, pharmaceuticals, plastics and food processing.
- Owner-managed manufacturers with one or two units, an in-house accountant and a bank that asks for stock statements, projections and CMA data.
- Groups with a foreign link: exporters with an overseas subsidiary, and Indian companies with a foreign parent, where transfer pricing and withholding tax apply.
- Traders, distributors and agri-processors dealing with multi-state GST, e-way bills, inventory and seasonal cash flow.
- Promoters and professionals: the owners of these businesses, doctors and senior employees, for income tax, capital gains and notices. Groups owned by one family face their own questions, set out under family businesses.
Nashik
Most of our work lies within a short drive of the office in Nashik. Satpur and Ambad hold the older engineering and electrical units, together with many of the vendors that supply the large plants. Sinnar has auto components, engineering and process industries, in its MIDC estate at Malegaon and the co-operative estate at Musalgaon. Gonde and the Igatpuri belt are on the road to Mumbai. The food, grape and wine businesses are concentrated in Dindori, Niphad and Vinchur, while Nashik Road is the district's rail and trading point.
Businesses in these areas meet much the same difficulties. A job-work chain may pass through two or three units, and many firms hold more than one GST registration. Cash credit limits are set against the monthly stock statement. Large customers pay late, while the small suppliers of the same business must be paid within 45 days, and a late payment of that kind can cost the buyer its deduction. We visit the factory, read the stock records on site and work through them with the accounts team. The Nashik page describes the areas and the issues in more detail.
Maharashtra and beyond
Nashik is our primary base. From the Nashik office we work with businesses across Nashik district and with clients elsewhere in Maharashtra; we also work with clients in Indore and other places from our Nashik office. Groups further afield, in India and abroad, are served remotely or through planned visits where the work allows. The firm has no offices outside Nashik. Where those clients are, and how the work runs, is described on the Maharashtra page.
Articles
These notes on GST, income tax, transfer pricing and factory finance are written by the firm's Chartered Accountants. Each states the law as at its date. Where income tax applies, section numbers are given under both the Income-tax Act, 2025 and the Income-tax Act, 1961.
Every article names its author and the date of its last review. It links to the Act, rule or circular it relies on. An article explains the law in general terms; advice on the facts of a particular business is given separately.
- Income tax, 3 October 2026
TDS for manufacturing businesses: contractors, rent, fees, purchases and the quarterly return
Tax deducted at source on the payments a factory makes every month: job work and contracts, rent, professional and technical fees, and purchase of goods where the thresholds apply. Deposit and return deadlines under the Income-tax Act 2025, with the 1961 section numbers in brackets.
- Income tax, 3 October 2026
The MSME 45-day payment rule: cash cycle, interest and income-tax disallowance
Section 15 of the MSMED Act fixes the date by which a buyer must pay a micro or small supplier. Late payment carries compound interest. Under section 37(2)(g) of the Income-tax Act 2025 (section 43B(h) of the 1961 Act), the income-tax deduction is also deferred to the year of actual payment.
- Manufacturing finance, 3 October 2026
Inventory valuation, monthly stock statements and bank drawing power
A manufacturer with a bank working-capital limit files a monthly stock statement, and drawing power is computed from it. That statement, the books and the GST records often disagree, and a stock audit that finds the gap reduces drawing power. This article also covers the projections banks request at renewal.
