Due Dates of GSTR-1 Has been Extension and other GST Updates

Due Dates of GSTR-1 Has been Extension and other GST Updates

3 (2)

GST RETURNS

Owing to the issues with GSTR online portal and much to the relief of tax payers, the due date for filing of FORM GSTR-1 has been extended vide Notification No. 71/2017-Central Tax and 72/2017-Central Tax dated 29th December 2017. The previously announced due date of 31st December 2017 has been extended to 10th January 2018. The relief has been provided to assessees with aggregate turnover upto 1.5 crore as well as those with aggregate turnover over 1.5 crore.

For assessees with aggregate turnover upto 1.5 crore, the period for which extension has been granted is July to September 2017. There is no modification in due dates for the quarter of October to December 2017 and January to March 2018. On similar lines, extension for assessees with aggregate turnover exceeding 1.5 crore is for the period July to October 2017 and no changes have been provided in due dates of subsequent months. Revised due dates for furnishing FORM GSTR-1 is summarized below-

EXTENSION OF GSTR-1 FILING DUE DATES

For Assessees with aggregate turnover up to 1.5 crores

  1. No. Months involved  Due Date for filing GSTR-1
  2. July – September 2017        10th January 2018
  3. October – November 2017 15th February 2018
  4. January – March 2018           30th April 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-September , 2017 for Registered persons having Aggregate turnover of up to 1.5 crore ,  has been extended to 10thJanuary, 2018 from earlier due date of 31st December, 2017 ( NotificationNo.71/2017 ).

For assessees with aggregate turnover exceeding 1.5 crores

  1. No.  Months involved  Due Date for filing GSTR-1
  2. July – November 2017      10th January 2018
  3. December 2017          10th February 2018
  4. January 2018             10th March 2018
  5. February 2018           10th April 2018
  6. March 2018                10th May 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-October, 2017 for Registered persons having Aggregate turnover of more than Rs 1.5 crore , has been extended to 10th January, 2018 from earlier due date of 31st December, 2017 ( Notification No.72/2017 ).

OTHER GSTR FILLING EXTENSIONS

Return Due date               GSTR-5(for non-resident)

15-December-2017          GSTR-6(for input service distributor)

31-December-2017           ITC-04(for job worker ,for July-sept)

31-December-2017       GSTR-3B Return

GSTR-3B Return

GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return.Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.

IN 23rd council meeting, it has been announced that GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for GSTR-3B return will be the 20th of every month.

Late fees for GSTR-3B of July, Aug. and Sept waived. Any late fees paid for these months will be credited back in electronic cash ledger under Tax and can be utilized to make GST payments

Reduction of GST Return Penalty

In addition to the waiver of GST Return Penalty, the Government has also announced a reduction in GST return penalty for NIL GST returns. From October 2017, the GST return penalty for not filing NIL GST return has been reduced to Rs.20 per day instead of Rs. 200 per day.

GST on Advances Received

In 22nd GST Council, it has now been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores will not be required to pay GST at the time of receipt of advances on account of supply of goods.

E-Way Bill

As per E-Way bill rules, any transportation of goods with a value of more than Rs.50, 000 would require an e-way bill. The GST council in earlier meeting in October had decided that E-way bill would be introduced in staggered manner from January 1 and subsequently nationwide from April1.

In the recent 24th GST council meeting was finally decided that the e-way bill is now introduced and will be applicable from 1st February 2018 across the nation. The nationwide e-way bill system will be ready to be rolled out on trail basis latest by 16 January 2018. Trade and transporters can start using thi system on voluntary basis from 16 January 2018.

GST REGISTRATION

Registration under GST was mandatory for entities undertaking inter-state supply of goods and/or services, irrespective of aggregate annual turnover.In the 22nd GST Council, it has been decided to exempt service providers from this condition. Hence, service providers will now be allowed to undertake inter-state sales of upto Rs.20 lakhs without obtaining GST registration.Further, this is exemption is also available for service providers supplying services through an e-commerce operator.

But person supply goods will still be required to obtain GST registration mandatorily (in case of inter -state supply)

GST COMPOSITION SCHEME

This scheme is intended for small businesses where compliance less.22nd GST Council has decided to increase the aggregate turnover to Rs.1 crore. (The aggregate turnover threshold for special category States, has also been   increased to Rs. 75 lacs from Rs. 50 lacs excepts J&K and Uttarakhand)

Person opting for composition scheme was restricted from providing any exempted/taxable service .but now a composite can provide exempted service also.

In 23rd GSTcouncil meeting the due date for enrolling under the increased threshold has been made available to both migrated and new taxpayers up to 31.03.2018.

The GST rate payable by GST Composition dealers has been harmonized for all taxpayers (traders or manufactures) at 1%. However, not change has been announced on the GST rate for composition scheme for restaurants.

GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of month following respective quarter. But in 23 council meeting composition returns, GSTR-4 due date extended to 24 /December/2017 for July-September quarter

Reverse Charge Mechanism

Registered taxpayers were required to pay GST on reverse charge basis when they purchased from an unregistered person, the 22ndGST Council has decided to suspend the reverse charge mechanism till 31.03.2018. Now, registered taxpayers can purchase from unregistered persons without having to pay GST on reverse charge basis.

TDS and TCS Provisions Postponed

The Government has decided to postpone the TDS/TCS registration and operationalization to 31st March 2018.

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CONDONATION OF DELAY SCHEME, 2018 (General Circular No.16/2017 dated 29/12/2017)

As par sec 92 of the Companies Act, 2013 provides that every company shall prepare an annual return in the prescribed form. The Annual return shall be signed by a director and the company secretary, or where there is no company secretary, by a company secretary in practice. Every company shall file with the Registrar a copy of the annual return, within sixty days from the date on which the annual general meeting is held.

Disqualification of a director

As par sec164 (2) provides that no person who is or has been a director of a company which has not filed financial statements or annual returns for any continuous period of three financial years shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so.

Sec- 167(1) (a) provides that the office of a director shall become vacant in case he incurs any of the disqualifications specified in sec-164 i.e., failure to file annual returns for any continuous period of three financial years.

Rule 14 of the Companies (Appointment and Qualification of Directors) Rules, 2014 provides that every director shall inform to the company concerned about his disqualification, if any, under section 164 (2) in Form DIR – 8

Action of MCA in disqualifying directors.

The Ministry of Corporate Affairs in September 2017 identified 3, 09,614 directors associated with the companies that had failed to file the financial statements or annual returns in the MCA 21 online registry for a continuous period of three financial years 2013 – 14, 2014 – 15, 2015 – 16 in terms of provisions of section 164(2) read with section 167 (1) (a) of the Act and they were barred from accessing the online registry.  A list of such directors was also published on the website of Ministry of Corporate Affairs.

Condonation of delay scheme, 2018

Consequent of the action made by MCA disqualifying the directors of the companies, there have been a spare of representations from industry, defaulting companies and their directors.

The Ministry of Corporate Affairs has announced a onetime settlement scheme for companies that saw over three lakh directors disqualified from their boards, with a view to giving an opportunity for the non-compliant defaulting companies to rectify the default

This scheme is applicable to all defaulting companies, other than the companies which have been struck off or whose names have been removed from the register of companies under section 248(5) of the Act. A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2016 in accordance with the provisions of this scheme.

Defaulting companies

The expression ‘defaulting company’ is defined as a company which has not filed its financial statements or annual return as required under the Companies Act, 1956 or Companies Act, 2013, as the case may be, and the Rules made there under for a continuous period of three years.

Overdue documents

The expression ‘overdue documents’ is defined as the financial statements or the annual returns or other associated documents, as applicable, in the case of a defaulting company.

The following are the overdue documents-

  • Form No. 20B/MGT-7 – Form for filing Annual return by a company having share capital;
  • Form 21A/MGT-7 – Particulars of Annual Return for the company not having share capital;
  • Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC – 4(CFS), AOC (XBRL) and AOC -4 (non-XBRL) – Forms for filing balance sheet/financial Statement and profit and loss account;
  • Form 66- Form for submission of compliance certificate with the Registrar;
  • Form 23B/ADT – 1 – Form for intimation for appointment of auditors.

PROCEDURE

Procedure to be followed under this scheme-

  • The DINs of the disqualified directors de-activated shall be temporarily activated during the validity period to enable them to file the overdue documents;
  • The defaulting company shall file the overdue documents paying the statutory filing fee and additional fee payable.
  • The defaulting company after filing the documents under this scheme shall seek condonation of delay by filing e-CODS 2018 along with a fee of –Rs 30,000/- as prescribed under the Companies (Registration Offices and Fee) Rules, 2014  well before the last date of the scheme
  • The DINs of the directors associated with the defaulting companies that have not filed their overdue documents and the e-form CODS and these are not taken on record in the MCA – 21 registry and are still found to be disqualified on the conclusion of the scheme shall be liable to be deactivated on the expiry of the scheme.
  • If the name of the company is removed from the register of companies under sec-248 of the Act and if the said company has filed application for revival under sec-252 up to the date of the scheme, the Director’s DIN shall be re-activated only NCLT order of revival subject to the company having filing all overdue documents.

Period of the scheme

The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31.03.2018.

Powers of Registrar

The Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned court(s) for all documents filed under the scheme.

This scheme is without prejudice to action under section 167(2) of the Act or civil and criminal liabilities, if any, of such disqualified directors during the period they remained disqualified.

At the conclusion of the scheme the Registrar shall take all necessary actions under the respective Act against the companies who have not availed themselves of this scheme and continue to be in default in filing the overdue documents

The e-Form CODS 2018 would be available from 20.02.2018 or an alternate date, which will be intimated by the ministry .

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

 Quick Review on RERA

Image result for rera images

 Quick Review on RERA

Who is a Real Estate Agent?

Section 2 (zm) of RERA defines real estate agents. According to the definition, a “real estate agent” means any person, who negotiates or represents other persons for transfer of a real estate property by way of sale to another person and receives remuneration or fees or any other charges for his services whether as commission. A real estate agent is also a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of real estate property, as the case may be, and includes property dealers, brokers, middlemen etc.

Brokers are mandated to show the facilities, aspects and amenities of the building project they are marketing and not to add anything additional or hide crucial information to confuse or mislead the buyer. Any deviation or default will attract penalty under RERA Act, including cancellation of the license.

Requirement of registration:

To achieve the objective of regulating the real estate sector and to standardize this sector making it more transparent, the Act and the Rules made thereunder require for the real estate agents to obtain a registration certificate from the Real Estate Regulating Authority. RERA also says that the real estate agents will also be liable for any flaws in the project and can be prosecuted for any misconduct in the business. It is Section 9 (1) of RERA that mandates the registration. Section 9 prohibits an agent to operate his business without such registration.

Obligation

  • The registration certificate should be displayed at the place of business.
  • All advertisements, marketing, selling or purchase papers, should have the registration number.

Procedure for registration:

Rule 8 of the National Capital Territory of Delhi Real Estate (Regulation and Development) (General) Rules, 2016 (“Rules”) read with Section 9 (2) of RERA state that every real estate agent, required to register, shall make an application in writing to the Authority established under RERA Form ‘G’, in triplicate, until the application procedure is made web based.

Documents Required for RERA Registration

Application for RERA registration should be accompanied by the following documents:

  • Name, registered address, type of enterprise (proprietorship, societies, partnership, company etc.);
  • In case of a Real Estate Agency the particulars of incorporation including the bye-laws, MoA , AoA,
  • Name, Address, contact details and photograph of the real estate agent or director or Partners
  • Last three years Income tax Return and if no IT returns are available, a declaration must be furnished.
  • Past experience in this field of business. A declaration for this should be furnished.
  • PAN & Aadhar cards
  • Photo
  • Address of place of business and
  • Blank receipt (sample) for the commission that will be billed.

Fee for RERA Registration

The fee for RERA registration varies from State to State. The following is the RERA registration fee for Maharashtra:

Registration fees for RERA

  • Rs 500 to Mahaonline for Maha-Rera website (plus taxes and bank charges, if any).
  • Rs 10,000 for individual, proprietor, or proprietorship firm.
  • Rs 1,00,000 for partnership firm, society, private Ltd/Ltd company, LLP, etc.

Once the above application and fee is submitted, the authorities will issue RERA registration certificate within 30 days of application. The RERA registration certificate should be displayed at the place of business. All promotional materials such as advertisements and brochures of the broker must mention the RERA registration number.

Book of records

  • The agent shall maintain book of accounts, records and documents, separately for each real estate project.

Registration time frame

  • The authorities shall deliver the registration number, along with the certificate, within 30 days from the date of registration.

Validity of registration/renewal

  • Valid for five years. Renewal to be done at least 60 days prior to the expiry of the registration.

Penalty on unregistered brokers involved in registered projects

  • Rs 10,000 per day during the period of failure and a maximum of up to 5 per cent of the value of the deal or project value.

Validity of RERA Registration : RERA registration for Brokers will be valid for 5 years from date of issue. The license can be renewed again for a period of 5 years, by submitting a renewal application 60 days prior to the expiry date.

Conditions for RC:

The following conditions/ compliances are to be adhered to by the real estate agents after attaining the registration certificate:

  • Not to facilitate sale of unregistered property;
  • Due maintenance of books of accounts records and documents as provided under rule 14;
  • Avoid use of any unfair trade practices as enumerated under the rules assistance to enable the allottee and promoter to exercise their respective rights and fulfil their respective  obligations at the time of booking and sale of any plot, apartment or building, as the case may be; and
  • Generally adhere by the provisions of the Act and the Rules.

These conditions are also mentioned as conditions in the registration certificate as well as Section 10 of RERA.

Deemed registration:

According to Section 9 (4) of the Act read with Rule 9 of the Rules, if the Authority does not grant or reject the registration certificate within 30 days, hereon the completion of the period specified under sub-section (3), if the applicant does not receive any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.

Why Required

Real estate agents are the heart of real estate industry . They are the mediators facilitating transactions between builder and buyer . With RERA, that will soon come into force, all brokers will have to be mandatorily registered with the concerned state-level regulatory authorities. Real estate agents will be given a registration number by the authority which will be valid for 5 years and will be quoted in every transaction facilitated by him.

To stimulate fair practice of doing business in the real estate sector, RERA mandates intermediaries (including intermediary websites) to get themselves registered and retain a valid RERA registration number before facilitating any real estate deal on the behalf of any real estate developer. The intermediary is also required to maintain and preserve account logs and other documents as prescribed by the Act. Also, he/she must facilitate all information and provide any further assistance as prescribed by the Act to the consumer.

If the intermediary fails to comply with the duties and responsibilities prescribed by the RERA, his/her registration can be revoked.

Further, he/she can be penalized up to Rs 10,000 per day, which may extend up to 5% of the total estimated cost of the unit in question. The intermediary can also face imprisonment up to one year if he/she breaches any orders given by the Appellate Tribunal.

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Indian Parliament Today passed Companies (Amendment) Bill, 2017 by Rajya Sabha

The Amendment1 (2) Bill as passed by Lok Sabha which is also passed by Rajya Sabha is placed at the link:

http://164.100.47.5/newlobsessions/sessionno/244/R191217.pdf

Rajya Sabha has passed the Companies (Amendment) Bill, 2017 today i.e. December 19, 2017 and shall come into force on getting the President’s assent.   On July 2, 2017, the Companies (Amendment) Bill, 2016 has been passed by the Lok Sabha as Companies (Amendment) Bill, 2017 & referred to Rajya Sabha for consideration and passing.

The Bill to further amend the Companies Act, 2013 was introduced in Lok Sabha on 16th March, 2016 whereafter it was referred to the Parliamentary Standing Committee on Finance for examination and report. The Parliamentary Standing Committee on Finance had presented its report on the Companies (Amendment) Bill, 2016 to Lok Sabha and Rajya Sabha on 7th December, 2016.

Our Blogs presents a comparative analysis as well as the impact of the New Bill and we trust you will find the same useful. Highlights of the Companies (Amendment) Bill, 2017 are enclosed for ready reference of members.

Objects of a Company : Currently, the Companies Act, 2013 requires all companies to mention the objects for which the company is prop-osed to be incorporated in the Memorandum of Association (MOA).

Under the Companies Amendment Act, 2017, the MOA of a company could state that the company could engage in any lawful act or activity or business. Hence, small or privately held companies would be able to undertake a range of business activities without making changes to the MOA. However, if the MOA restricts the objects of a company to certain activities, then the company would be able to abide by the objects specified.

Company Annual Return : All companies are required to file an annual return with the Ministry of Corporate Affairs each year. The Companies Amendment Act, 2017 has proposed to provide an abridged form of annual return for One Person Company and small company. The abridged form of annual return will make annual compliance for a company simpler for small businesses.

The Companies Amendment Act, 2017 has also mandated that all companies place a copy of the annual return on the website of the company and provide the web link for the annual report in the Board’s report.

Penalty for Late Filing of Annual Return :The penalty for late filing of company annual return is set to significantly increase on the implementation of the Companies Amendment Act, 2017 during the current financial year.

Under the Companies Amendment Act, 2017, the penalty for late filing of Annual Return or financial statements will be a minimum amount of Rs 100 per day of default. Further, the company would be liable for penal action. If a company defaults on filing the annual return or financial statements for two or more times, the penalty levied would be doubled.

Related Party Definition : under the Companies Act 2013, a ‘related party’ in relation to a company includes:

A holding, subsidiary or an associate company of such company; or

A subsidiary of a holding company to which it is also a subsidiary.

Companies Amendment Act, 2017 has proposed to make an investing company or the venture of a company a related party as well.

Loans to Directors :Under the Companies Act 2013, companies are not allowed to advance any loan to its directors or persons related to the Director. The Companies Amendment Act, 2017 has proposed to relax this restriction and allow companies to extend its Directors or related persons, after passing a special resolution.

To prevent abuse of this relaxation, an additional clause has also been introduced in the Companies Amendment Act, 2017 to punish Directors who use loans against conditions under which it was extended.

Condonation of Delay Scheme 2018: The Central Government has decided to introduce a Scheme namely “Condonation of Delay Scheme 2018” [CODS-2018] as follows.

  1. he scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31.03.2018
  1. Applicability: -This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/whose names have been removed from the register of companies under section 248(5) of the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2017 in accordance with the provisions of this Scheme.
  1. Procedure to be followed for the purposes of the scheme: -

(1) In the case of defaulting companies whose names have not been removed from register of companies:-i)The DINs of the disqualified directors de-activated at present shall be temporarily activated during the validity of the scheme to enable them to file the overdue documents.

ii)The defaulting company shall file the overdue documents in the respective prescribed eForms paying the statutory filing fee and additional fee payable as per section 403 of the Act read with Companies (Registration Offices and fee) Rules, 2014 for filing these overdue documents.

iii) The defaulting company after filing documents under this scheme, shall seek condonation of delay by filing form e-CODS 2018 attached to this scheme along with a fee of Rs. 30,000/- (Rs. Thirty Thousand only) as prescribed under the Companies (Registration Offices and Fee) Rules, 2014 well before the last date of the scheme.

iv)The DINs of the Directors associated with the defaulting companies that have not filed their overdue documents and the eform CODS, and these are not taken on record in the MCA21 registry and are still found to be disqualified on the conclusion of the scheme in terms of section 164(2)(a) r/w 167(1)(a) of the Act shall be liable to be deactivated on expiry of the scheme period.

(2) In the event of defaulting companies whose names have been removed from the register of companies under section 248 of the Act and which have filed applications for revival under section 252 of the Act up to the date of this scheme, the Director’s DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents.

(Disclaimer:  The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com . Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Thresholds and Eligibility Criteria of Monthly GST Return is Turnover Exceeded 1.5 Cr and Due Date of return

GST-Compliance and return

Thresholds and eligibility criteria mentioned by the India Government is to boost up and benefit the small and medium enterprises (SME’S). These SME’S will contribute to country’s GDP and will help in eradicating the unemployment.

The taxpayers whose aggregate turnover during preceding financial year exceeded Rs. 1.5 Cr or the new registrants who estimate their turnover to exceed Rs. 1.5 Cr during current financial year, have to file return on monthly basis.

The taxpayers, whose aggregate turnover during the preceding financial year remained upto Rs. 1.5 Cr or the new registrants who estimate their turnover to remain upto Rs. 1.5 Cr during current financial year, but who intends to file return on monthly basis, can also upload the invoices for the month of August, 2017.

Due of GSTR Return

Relief in GSTR compliance

  • All businesses to file GSTR-1 and GSTR-3B till March 2018.
  • GSTR-2 and GSTR-3 filing dates for July 2017 to March 2018 will be worked out later by a Committee of Officers
  • Turnover under Rs 1.5 Cr to file quarterly GSTR-1
  • Turnover above Rs 1.5 Cr to file monthly GSTR-1
  • All businesses to file GSTR-3B by 20th of next month till March 2018.

Extension of GSTR-1 filing Due Dates

  • Filing of GSTR-1 for the tax period of August, 2017 and onwards is likely to commence soon. In the meantime, such taxpayers can upload the invoices for August, September, October 2017 to avoid last minute rush.
  • All other taxpayers liable to file GSTR-1 shall upload the invoices and file GSTR-1 for the quarter ending September, 2017 after the option to file the same is available on the portal. The taxpayers eligible to file return on quarterly basis but have already filed the return for the month of July, 2017, shall have to upload the invoices of August and September jointly and have not to include the invoices of July month again.
  • The taxpayers who have not filed GSTR-1 for the month of July, are advised to file the same quickly as they will not be able to file GSTR-1 for remainder of quarter (August-September) till they have filed GSTR-1 of July.

For turnover upto Rs 1.5 cr

Period (Quarterly)                                                    Due dates

July- Sept                                                                    31st Dec 2017

Oct- Dec                                                                     15th Feb 2018

Jan- Mar                                                                     30th April 2018

For turnover of more than Rs 1.5 cr

Period (Quarterly)                                                    Due dates

July to Oct                                                                  31st Dec 2017

Nov                                                                             10th Jan 2018

Dec                                                                              10th Feb 2018

Jan                                                                               10th March 2018

Feb                                                                              10th April 2018

March                                                                          10th May 2018

 

Others GSTR filing extensions

Type of assesses  (Quarterly)                      Due dates

GSTR-5 (for Non Resident)                           11th Dec 2017

GSTR-5A(By person supplying OIDAR)       15th Dec 2017

GSTR-4 (for Composition Dealers)                24th Dec 2017

GSTR-6 (for Input Service Distributor)         31st Dec 2017

Businesses with annual turnover up to 1.5 crores will submit quarterly returns. Taxes will be paid quarterly. Due dates of filing GSTR-3B for August to December – 20th of Next Monthly

In case you are confused about GST as a business owner, feel free to consult the GST experts at Rajput Jain & Associates,. You can get comprehensive assistance on GST Registration online and GST Return Filing. You can also use our GST compliance software for doing end-to-end GST compliance.

(Disclaimer:  The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

HOW TO BITCOIN TAX IN INDIA

RJA Bitcoin

Tax authorities in India have expressed money laundering concerns with investments and trading of cryptocurrencies like bitcoin. Indian tax authorities fear that trading of cryptocurrencies ‘could become conduits for illicit flows and the movement of black money.’ As awareness and adoption of bitcoin grow in India, there are concerns among authorities about the potential for abuse by tax evaders and money launderers.

Indian Taxation authorities regulate the country’s digital currency industry, with a ban highly unlikely. Regulation of the industry is also likely to coincide with taxation of bitcoin adopters in the general public.
LEGAL STATUS OF BITCOINS IN INDIA

Until and unless a legal framework and regulation are finalised, such confusion will continue to exist. However, bitcoins have yet to be regulated, which means that the government is not regulating this currency the way it regulates Indian Rupee or any other form of currency. An interdisciplinary committee has already been set up by our government to explore the framework regarding virtual currency.

If you are a bitcoin trader or platform provider, then so share your views on the taxation aspect, by commenting right here.

Recently RBI issued fresh warnings, reminding investors that it has not authorised any entity to deal in Bitcoins and that any investor or trader dealing with virtual currencies “will be doing so at their own risk.

Trading activity may also come under the jurisdiction of the Securities and Exchange Board of India (SEBI), which regulates the country’s securities market.

Ultimately, bitcoin and other cryptocurrencies may come to been viewed as kinds of digital assets under Indian law.

ACTIVITIES OF BITCOIN DURING TRANSACTIONS :

Any gain on Bitcoin is taxable as any gain on account of Bitcoin exchange is certainly (100%) taxable because the definition of income u/s 2(24) under Income Tax Act is inclusive, which mean every kind of income unless clearly exempt . “The CBDT has in the past issued a circular (4 2007) which, after taking into consideration various judicial precedents, has set out various tests to determine whether shares are held as investment or stock in trade.The same parameters can also be applied to bitcoins.” 

1.      During Purchasing  of Bitcoins: No taxation liabilities purchasing of bitcoins

  1. When the Price of Bitcoin is start increasing : When you hold the Bitcoin, thereafter its prices get increased or  rise in your Bitcoin than, you do not pay -any tax till the time you actually sale it off and book the profit or gains. you do not pay any tax till the time you actually sale or  transfer it to someone in exchange of any other benefit in cash or kind, it off and book the profit or gains, irrespective of the magnitude of the appreciation.
  2. On sale or exchange of bitcoins: It means that in any of below scenarios, the resulting gains(/ loss)will become taxable, you need to declare, compute and discharge the tax liability as earlier,  In the following moment taxability on Bitcoin arises.
  • sell or trade your bitcoins or
  • exchange with any other thing say Indian or foreign Currency currencies or
  • Trade your bitcoins as a barter for buying any other thing or paying for any kind of purchases,

Taxation of barter transactions for buying any other thing or paying for any kind of purchases where consideration is paid in bitcoins: While the general acceptability of bitcoins in India is pretty low, it is not unusual to find savvy businesses accepting bitcoins as consideration for the sale of goods and services.

Trading of Bitcoin i.e Speculative Income : This is debatable on account of lack of any law related to taxation of Bitcoin in the Income Tax Act . It will be determined on the basis of each facts and circumstances. In case of trading it will be considered as speculative income and will attract tax as per slab rate of Individuals.

Bitcoin transaction as a nature of Investment i.e. Long-Term Or Short-Term Capital Gains  :  As per us Given the wide nature of definition of capital assets under Section 2(14) of the I-T Act, the purchase of bitcoins, if it has been made for the purpose of investment, should be treated as a capital asset. Thus, any gains arising on transfer (ie: sale) should be characterised as capital gains.”

It the transaction are not frequent and are in nature of Investment in the currency, it would be classified as capital gains and would attract either long-term capital gain tax or short-term capital gain tax, depending on the holding period.

Under capital gains, there are two aspects:

  • Long term capital gains tax is 20%, but the time-period for investment should be at least 12 months. Hence, if a bitcoin trader holds his investment for a year, then it can be legally classified as long-term capital gains.
  • Short-term capital gains is taxable as per relevant Tax-slab, which is 30% on income more than Rs 10 lakh. In that case, short-term capital gains tax at 30% would be applicable

Income from sale of Bitcoins earned and received outside India by Non Resident : Income from sale of Bitcoins earned outside India and received outside India will not be taxable in India if you qualify as non resident or resident but not ordinarily resident in India. Subsequent remittance of the said income will also not be taxable in India. But since the issue is not a settled concept, there can be possible litigation with the tax authorities on this issue

Taxation on Professional Income blogger, freelancer or consultant earning in Bitcoins : If you are a blogger, freelancer or consultant earning in Bitcoins, you may be wondering how to file your taxes for income from any services rendered to clients in India or abroad. an applicable rate of income tax as per your income slab will apply. If your income exceeds Rs 10 lakh then the applicable tax rate is 30 percent plus surcharge and cess.

Advance Tax payable on returns on Bitcoin investment along and Future: – Advance tax deadline is on December 15, Bitcoin investors and their consultants are trying to figure out a way to deal with the returns on Bitcoin investment along with other cryptocurrencies.

GST on Bitcoin : Since Bitcoin is not specifically mentioned in the list of Goods and it cannot be treated as an “Essential commodity” which maybe exempted from GST, nor it suffers a tax like the STT applicable for stocks and CTT applicable to commodities traded through exchanges,  the rate of GST on Bitcoins may be treated as 28%. If Bitcoin is taxed under GST as a normal commodity which is manufactured, imported or exported, bought and sold at each purchase point the buyer is entitled to claim input credit

As per my advices India may put in place a goods-and-services tax on bitcoin purchases.

We can expect some clarity once the Finance Ministry finalises its opinion on a report on virtual currencies that was submitted to it recently. It would be interesting to see if GST will be applicable or not? Only future has answer to it.

In so far as the tax code in India is concerned income, profits and gains are taxable even if they are received in money’s worth instead or real money or currency. Therefore, the value of bitcoins received would also be considered income in India in the hands of the recipient and the profits on such income subject to tax at the rates applicable to both Purchaser and seller,

Therefore, Seller’s profit on the transaction would be equal to the INR value of bitcoins received less the cost of the table and similarly, Purchaser’s profits would be equal to the value of bitcoins received less any deductible expenses incurred while rendering the services.

Conclusion:  According to the law if somebody makes some money that should be subject to income tax.” Even if bitcoins were illegal, income earned needs to be declared and tax paid. No final decision has been taken but it is under active consideration. Having said that, mining, buying and selling virtual currencies is not illegal in India, but it is also not recognised by law either. There is a question mark on the taxability aspect too. So if you have been trading or investing do make sure any gains from the sale of Bitcoins is included in your income tax return. The buying and holding of Bitcoin won’t attract any Income tax liability. Until and unless a legal framework and regulation are finalised, such confusion will continue to exist.

 

(Disclaimer:  The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com . Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

NEWS SNIPPETS – 11th Dec 2017

Economic Times- Business Standard

  •  Bankers stare at Rs 1 lakh crore bad loan bomb ready to explode in next 2 days
  •  Satyam case: SC dismisses ED plea against TechM
  •  Largest automated container terminal opens in China
  •  Insolvency: IBBI notifies rules for complaint handling
  •  India to seek solution to food stock issue at WTO
  •  Firms, lenders ask RBI to extend insolvency deadline
  •  Mukesh Ambani drives 45% of India Inc’s capex since FY14
  •  FY19 Budget may assume crude oil price at $65/barrel
  •  Trade unions to make case for CIL contract workers’ 20% wage hike
  •  SBI changes names, IFSC codes of around 1,300 branches

Business Line-Mint

  •  Central banks buying gold in effort to diversify reserves
  •  India’s ultra-mega solar project to be discussed at France Summit: World Bank
  •  Aadhaar-PAN linking deadline extended to March 31
  •  Mahindra Electric to play key role in SsangYong’s EV drive
  •  Top eight BSE companies add Rs. 57,998 cr to market valuation
  •  Mutual funds log Rs. 1.26 lakh cr inflow in Nov
  •  Oil firms skip monthly LPG price hike for the first time in 17 months
  •  Telecom Commission to consider ministerial panel suggestions on 21 December
  •  Ultratech to set up Rs1,850 crore cement plant in Rajasthan

Financial Express-Financial Chronicle

  •  Government hints at reviewing rates in top GST bracket
  •  Coal imports rise 40% on restocking demand in Novembe
  •  Airtel to connect over 2100 uncovered villages in North East
  •  Delhi govt cancels licence of Max Hospital
  •  Bank of India to raise `3,000 crore via QIP
  •  Govt takes over Unitech, NCLT allows MCA to appoint 10 directors
  •  Forex reserves jump by $1.2 bn to $401.94 bn
  •  Bids for RCom’s spectrum, tower to open this week
Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATE DECEMBER 11 2017

DIRECT TAX:

  • Direct tax collections increased by 14.4% to Rs 4.8 lakh crore during April-November this financial year. The net direct tax collections represent 49% of the total Budget Estimates of direct taxes for 2017-18. The gross collections (before adjusting for refunds) have increased by 10.7% to Rs 5.82 lakh crore during April-November, 2017. Refunds amounting to Rs 1.02 lakh crore have been issued during April-November, 2017.
  • CBDT has issued Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961.
  • ITAT Ahmedabad held that wherever any irregularity crept in the proceedings, the proceedings itself cannot be declared void, rather irregularity deserves to be rectified.[Late Shri Atulkumar Mansukhlal Shah Vs. ITO (ITAT Ahmedabad)]
  • ITAT Mumbai held that the assessee is having sums deposited in the foreign bank account, it was incumbent upon the assessee to disclose the same in the subsequent years, unless the assessee produces necessary evidence that the afore-said deposit has been liquidated. Thus, once the Assessing Officer has come to the possession of the information that the assessee is beneficiary of deposits in foreign bank accounts and from the return of income filed by the assessee, the Assessing Officer notices that the interest from the said deposit in accounts has not been disclosed in the return of income, the reopening of the case is duly justified. The computation and assessment of interest is reasonable and justified. [Mr. Hasmukh I. Gandhi Vs. Dy. CIT (ITAT Mumbai)]
  • ITAT Ahmedabad held that addition based on Fake sale deed is not sustainable. [Shri Gopichand Chhabaria Vs. CIT (ITAT Ahmedabad)]

INDIRECT TAX:

  • Refund procedure for refund claims in respect of zero rated supplies has been initiated by the Government. However, the refund process for other cases has not been initiated as of now.

GST UPDATE:

  • GST Advisory* – If you opt for reset of GSTR3B, late fee inadvertently gets visible for months for which it has been waived off.
  • Finance:After slashing the GST rates of over 200 items last month, the Govt on Saturday hinted at reviewing levies on the items in the top 28% tax bracket.
  • Unsold inventory of imported chocolates, confectionery and cosmetics, which attracted 28% IGST during inbound shipments but are now retailing with an 18% levy, can claim refunds on the excess tax paid
  • GST: Unauthorized search and seizure by BIEO, HC grants interim relief. Case M/s. Kumar Traders And Company & Anr. Vs. The State of Assam (Guwahati High Court)

FAQ on GST: 

Query:  What will be the place of supply of banking services and other financial services, stockbroking services?

Answer: As per Section 12(12) of the IGST Act, 2017, the place of supply of banking services shall be the location of the recipient of service as available on the records of the supply of services. If the location of recipient of service is not on records of the supplier, the place of supply shall be the location of supplier of service.

MCA UPDATE:

  • MCA has issued circular to give Relaxation of additional fees and extension of last date of filing of Form CRA – 4 under the Companies Act, 2013
  • MCA has notified the Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Second Amendment, Rules, 2017 which shall come into force from the date of their publication in the Official Gazette

RBI UPDATE:

  • RBI’s latest guidelines on merchant discount rates (MDR) have brought some respite to the digital payments industry, many payment executives ET spoke to feel that the central bank needs to ensure equitable distribution of MDR between the various participants of digital transactions
  • RBI has permitted overseas branches and subsidiaries of Indian banks to refinance the existing External Commercial Borrowings (ECBs), giving them a level playing field vis-à-vis their global counterparts.

OTHER UPADATE:

  • RBI* has launched an SMS campaign and a ‘missed-call’ helpline to warn people against prize money frauds.
  • RERA Registration requirement* of any Project under RERA – No registration of the real estate project shall be required where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight units inclusive of all phases.
  • The Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill),* introduced in the Lok Sabha on August 10, 2017, is presently under the *consideration of the Joint Committee* of the Parliament.
  • ICAI Clarifies* on Rumors of Reservations in CA course – The general public is hereby advised not to pay any heed to such messages as being circulated by unscrupulous persons.
  • IBC*: Clause (e) of Section 2 of the Code has been substituted with three clauses. This would facilitate the commencement of Part III of the Code relating to individuals and partnership firms in phases.
  • IBC*: NCLT has struck down an attempt by a group of banks to block an insolvency resolution plan by citing the 75% vote share requirement prescribed under Section 30(4) of the IBC, 2016.
  • BITCOIN*: Government is planning to set up panel to decide on bitcoin policy. The RBI has last week warned the public of the risks related to virtual currencies (VCs).
  • NIRC Seminar on Impact Analysis Of GST* On Various Sectors On Saturday 16th December, 2017 at Hotel The Park, Parliament Street, New Delhi register at http://www.nircseminars.org/
  • Real estate firms are once again adding inventory at a faster clip as sales offtake fails to keep pace with the rising supply of new properties. At the end of March this year, top listed developers were sitting on unsold inventory worth Rs 99,000 crore. If receivables (the amount due from buyers for partial sales) are included, the amount comes up to Rs 1.16 lakh crore, highest in the last decade. The total value of unsold inventory is equivalent to 26 months’ worth of sales and highest in the last seven years. This was around 23 months during the end of FY16.
  • The CII Business Confidence Index has climbed up to the level of 59.7 during October-December 2017 compared to 58.3 in the previous quarter, reflecting an improvement in perception regarding overall economic conditions amidst indications of a normalisation in business situation post the recent disruptions like GST. The survey underscores the perception that the economy is on a sustainable recovery path, with the many Govt interventions having an impact on the ground. The climb in business confidence underpins the hope that the upward trend one is seeing on macro figures would be sustained.
  • The SBI has changed the names and IFSC codes of branches located in major cities such as Mumbai, New Delhi, Bengaluru, Chennai, Hyderabad, Kolkata and Lucknow, among others.The bank has put up the list of branches with old and new names and IFSC codes on its website.

KEY DATES:

  • 15 DEC 2017* is the last date for payment of 3rd installment of Advance Tax for AY    2018-19.
  • 11 DEC 2017* GSTR-5 for July to October  2017

WORD OF WISDOM:

*चन्द्रगुप्त*: किस्मत पहले ही लिखी जा चुकी है, तो कोशिश करने से क्या मिलेगा ! *चाणक्य*: क्या पता किस्मत मैं लिखा हो की कोशिश से ही मिलेगा।

“Life is found in the dance between your deepest desire and your greatest fear.”

We look forward for your valuable comment

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com    E: info@carajput.com   T: 011-9811322785, 9-555-555-480

Disclaimer:  All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, GST Etc for resolving their doubts or for clarifications.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

PROFESSIONAL UPDATES

1 (2)

*GST*: Govt. has initiated procedure for GST refund claims in respect of zero rated supplies.

*CBDT* has extended Aadhar-PAN linking deadline by 3 months to 31st March, 2018.

*CBDT* has issued Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961.

*NCLT* suspends the Unitech board for alleged mismanagement of funds and barred its directors from selling either personal or company assets, while allowing the Centre to name 10 nominee directors and paving the way for a government takeover of the floundering property developer.

*MCA* amends the Companies (Cost records and Audit) Rules, 2014 by inserting in Rule-2, a new clause (fa) “Indian Accounting Standards” means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules, 2015 and substituting Form CRA-I & Form CRA-3 w.e.f. 01.04.2016.

*RBI* has issued a Press release to cautions the general public regarding risk of trading and dealing in virtual currencies including Bitcoins.

*IT*: Proviso to Section 264 (3) confers a statutory power on the Commissioner to condone the  delay. Therefore it was not necessary for the Commissioner to have taken recourse to Section 5 of the Limitation Act, 1963 – EBR Enterprises & Anr Vs Union of India (2017 (12) TMI 425 – Bombay High Court).

 

Facebooktwittergoogle_plusredditpinterestlinkedinmail

REPORT SUBMITTED BY GST LAW PANEL TO REVENUE SECRETARY REGARDING CHANGES IN GST ACT

gstgloval (1)

Although GST LAW PANEL has given more than 100 recommendations but some of them are as follows:
  • Reverse Charge Mechanism should be abolished
  • E-Way bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of E-Way Bill.
  • Inter-state transactions should be allowed in Composition Scheme.
  • 1% tax in Composition for traders, manufacturers and restaurants.
  • Refund process should be automated
  • In place of all other returns there should be a single consolidated return.
  • Return process should be simplified and rationalised.
  • The ITC should be released within same month. Matching and adjustment may be done later.
  • FORM 3B is to be continued till March 2018
  • Return should be filed quarterly but tax may be paid monthly.
  • Doing away with HSN code in the invoice for easier return filing.
  • Classification of items should be such that the raw material and finished product are in the same slab. This would make refunds process easier.
  • Exempted or Nil rated goods should not be counted in aggregate turnover.
  • All job work should be taxed@5%
  • Service providers should also be allowed to take composition schemes
  • Allowing revision in returns.
  • Formation of a National Advance Ruling Authority
  • Search/raid only if Authority is having credible evidence against a person and that too only with orders of Commissioner.
  • Scrutiny of returns should be 0.5% to 1% only.
  • Registration of persons even after July should be granted registration with retrospective effect from 1st July 2017
  • Purchasers can claim ITC provided has made payment of tax and received the goods. If supplier does not pay tax the purchaser cannot be asked to reverse the credit.
  • GST on interest charged for late payment should not be charged.
  • Formula of deemed credit to weavers and fabric traders on the stock held as on 30.6.2017.
  • No requirement of reversal of VAT credit in the absence of Form C, F, H.
  • ITC on business expenses like, food, insurance, gift to employees, business assets
  • Consolidated debit note instead of invoice wise debit note.
  • Threshold exemption of Rs.20lakhs to all types of commission agents
  • Place of supply in many cases should be the registered place of the recipient in case of B2B transactions.
  • Withdrawal of Form ITC-4.
  • Many relaxations to casual taxable person.
  • Common tax pool for payment of tax.
  • No restrictions on  refund of accumulated credit.
  • Premises of assessee cannot be visited casually by the officers, prior written permission of the Commissioner required
  • No penalty in case of wrong classification
  • No denial of credit on the purchases made from 1.7.2017 till the date of registration for textile traders and other segment as well.

​The panel received more than 700 representations on problems faced by industry over return filing, the E-way bill, Input tax credit, and Exports.

All the above Recommendations are some major out of many more Recommendations of A 6 -Member Advisory Group set up by Ministry of Finance on 2nd November 2017 and Group was asked to submit its report by 30th November on proposed changes in GST Act.

Facebooktwittergoogle_plusredditpinterestlinkedinmail