financial data

[Paraluman Datta]

Dear amit, vikas and due,

kidnly give ur inputs how do we calculate for the healer's fee, after the deduction that paypal make. the exchange rate at the time of conversion is also there.

thanks.

--

Blessings of love & light,


Paraluman Datta
Pranic Healer
GMCKS Pranic Healing & Arhatic Yoga Center

[v Agrawal]

HI,

Thanks para for the paypal details will give our inputs asap.. kindly add your self in calender group and add your healings dates there.

Thanking you

[Amit Singh]

Dear all,

I am resending the financial report in gmail as our HealingLifeNow webmail is down and we are unable to open it.

Please see the attached financial report and compare with the reports or data if we have any.
Please let me know in case of any doubt, will clarify and discuss further to better it.

And about the healers fee, I believe a part of service tax charged by Paypal or any other party, should be deducted from the healers fee.

To support the above mentioned sentence the reasons are follows :-

1) The healers are getting the customers from the website of the company and with the help of the partners.
2) As even if the healers will get the money directly in there account, they will have to pay the service tax to the concerned party for the
    conversion of money (from $ to INR)
3) As a professional the healer should have no issues in sharing the deduction, as the company is helping him to get the business.

I suggest if the number of healings are less then the healer should pay the 100% of the deduction. As it won't be much. Ex. for $100 it will be only $4.20. However, we can have a ratio of say 60:40 in case the number of healings are more.

Lets give the inputs and come to a conclusion.

Thanks & Regards,
Amit

[Paraluman Datta]

Thanks amit. Checking it

[v Agrawal]

HI Everybody

Abhinav has done the coding for gift shopping cart under the tab product in our website, kindly check it and please fixed a meeting with him. So he will explained us how to operate the back end for the website .

Thanks

vikash

[Due Quach]

Hi Amit, and team

Thanks for the feedback. So to confirm we are on the same page, Please look at the below. 

Gross Revenue = Payments received through paypal 

Payment to Healer =  ($15 - All fees charged by paypal) X conservative Forex conversion rate (set by us each month) 

The key is to insure that the viability and sustainability of healing life now does not get damaged by volatile exchange rates

Net Revenue to Healing Life Now  = Payments received through paypal minus all fees minus payment to healer

Allocation of Net Revenue to Healing LIfe Now

10% for tithing

10% for bonus fund to reward good healers

80% for operational expenses

When Profitable, Profits will be used towards: 

Investing in operational enhancements

Investing in human resources

Adding to Bonus Fund

Investing to expand Healing Life Now to new areas in India, eventually outside of India

Thanks,

Due 

On Mon, Jul 29, 2013 at 2:01 PM, Amit Singh <ansi...@gmail.com> wrote:

Hi Due,

We did speak to couple of chartered accountant about the overseas revenues. However, they were not clear in their explanation. We are trying to speak to someone who has experience in overseas transactions. As Vikash also know few CA's who has the knowledge about the same, we will try to completed this information within the first week of August' 2013.

And the deduction table which you have mentioned is very lucid. Just one clarification Under  Net Revenue Allocation it's mentioned - 50% Paid to Healer (according to our exchange rate set each month). But the healers fee is $ 15 per healing, which means for e.g. if someone signs for a bundle package which is $ 100 (5 Healing Sessions) then the healer is suppose to get ($15 x 5 = $75-taxes) which is $ 70.80 which makes 70.80% and the rest  29.20% is divided accordingly.

Vikash,Para & Due, are we ok with the deduction of the conversion taxes from the healers fee ? which is 100 % conversion tax amount to be deducted from the healers fee in all cases.

And just a sharing of thought, we can motivate the healers to tithe 5% of their healing fee to Healing Life Now as according to the Law Of Karma as they are getting their business from here this is the fertile place for them to tithe..

Thanks & Regards,

Amit Narayan Singh

 

On Mon, Jul 29, 2013 at 6:06 PM, Due Quach <dueq...@gmail.com> wrote:

Hi Amit,

Thanks for this form. 

The deduction seems logical.  Have you found what the tax regulations are for the Indian Government concerning revenues from overseas?  Especially those concerning social enterprises? 

For the first few years, we should be conservative about the tax with-holding, to be ensure that we are safely in compliance. 

Gross Revenue = Payments received through paypal 

Minus Transfer fee

Minus any Indian government tax and fees on international payments

Minus any other mandated taxes and fees 

= Net Revenue

Net Revenue allocation 

50% Paid to Healer (according to our exchange rate set each month) 

10% Tithing - include the amount on behalf of healers (5%, so healer's total portion is 55%)  

25% To healing Life Now profit account 

15% or remainder - Held in Bonus Fund to reward healers for good service 

Please let me know what you think. 

Due 

[Amit Singh]

Dear Due & Team,

Gross Revenue = Payments received through Paypal + other incoming money (e.g. contribution from the partners etc.)

And this part is clean

Payment to Healer =  ($15 - All fees charged by paypal) X conservative Forex conversion rate (set by us each month) 

The key is to insure that the viability and sustainability of healing life now does not get damaged by volatile exchange rates.

Just one question by what parameters we will set the FOREX conversion rate each month ? or do we pay according to the conversion rate at the time of payment ?

Regards,
Amit

[Due Quach]

Please note: "revenue" only applies to sales of products and services. contributions from the partners are technically considered equity not revenue.  It will go into a separate account.  Should we also receive donations, we have to check how to correctly book donations as a social enterprise.  I assume donations will be allocated depending on how they are used. They will likely go into assets and equity. 

This is why I suggested that at least 1 member of the team, the person responsible for finance, has to become familiar with accounting. You need to have a grasp of what the terms mean even to have an intelligent conversation with the accountant. 

In accounting, There is a very important difference between cash owed (liability) and cash already paid out. 

Next, My understanding is that the entire amount paid by Sujata was already tithed. Therefore, I assume Vikash agreed to this and waived the payment owed to him as a healer. Please confirm.

Further, please cancel the $30 I had contributed, as I have asked Para to help me do something else with it. 

All, Please confirm we are on the same page. 

Best,

Due

Sent from my iPhone

[Due Quach]

For the forex rate. i suggest we look at the historical exchange rate for the previous month and check the volatility in the interbank  rate. If we see the rate moving out of the normal range, we set our rate at the bottom end of the new range and check it against the rate that a real bank charges for exchange for small amounts.  Banks usually charge 1% to 3% premium on top of the interbank lending rate. 

Keep in mind that there may be a lag of 2 weeks or more between when we receive payment from the customer and when we make the payment to the healer (after healings are done and paperwork submitted). 

We should make sure we have an easy to manage system to process making payments each to healers each month in case the rate fluctuates a lot in any given period.  It would be confusing to have to keep track of exchange rates for each payment received for calculating how much to pay a healer who has healed multiple patients whose payments arrived on different days during a period in which the exchange rate moved drastically. 

I hope that is clear. 

Best

Due

Sent from my iPhone

[Amit Singh]

Dear Team,
Just to clear the confusion, the equation (Gross Revenue = Payments received through Paypal + other incoming money (e.g. contribution from the partners etc.which I gave was for the Financial Excel sheet which I created for the records, which is temporary, just for our knowledge about how much money came in and went out.

 And for the Income Tax purpose as mentioned in the previous mail, we will have to hire a CA who will technically file all the transactions from Journal to balance sheet for our company time to time.

In our next meeting we will discuss about the forex rate and on what basis we should pay the healers keeping in mind the forex rates.

Regards,
Amit

[Amit Singh]

Hi due,

As mentioned by you I am removing the $ 30 transaction from our records.

Regards,
Amit

[Due Quach]

Please note again contributions from partners is not gross revenue. It is equity. This is very important to get right. It has legal importance! 

Sent from my iPhone