DIFFERENT MEANING OF TURNOVER IN INCOME TAX ACT, COMPANIES ACT & GST

SSRR

As per companies act, 2013: -

“Turnover” means the gross amount of revenue recognized in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year.

From the above clause it is clearly understood that turnover of a company is defined on the basis of amount of realization made during the financial year rather than value of goods sold or service rendered during the financial year.

The New Definition of turnover under companies act {Section 2 (91)} which says that calculation of realization of amount made from the sale of goods or rendering of service during the financial year is require to be done on cash basis. It means sales of goods and rendering of service on credit term basis during the year is not included in turnover.

In Companies Acceptance and Deposit Rule, 2014 define eligible company means company having turnover of not less than Rs. 500 crore or more.

Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.

As per Guidance Note issued for Financial Statements: -

 Turnover means the aggregate amount for which sales are effected or services.

As per Accounting Standards Interpretation (ASI)-29: -

Recognized as revenue in the statements of the contractors as per the requirement of AS-7”

As per The Statement on the Companies (Auditors’ Report) Order, 2003 issued by the Institute in April 2004, while discussing the term ‘turnover’ in paragraph 23 states `as follows: -

The term, “Turnover”, has not been defined by the Order. Part II of Schedule VI of the Act, however, defines the term “turnover” as the aggregate amount for which sales are affected by the company. It may be noted that the “sales effected” would include sale of goods as well as services rendered by the company. In an agency relationship, turnover is the amount of commission earned by the agent and not the aggregate amount for which sales are affected or services are rendered. The term “turnover” is a commercial term and it should be construed in accordance with the method of accounting regularly employed by the company.

As per income tax act, 1961: -

Section 44AB: an assessee is required to get his accounts audited when his turnover/sales from business is more than Rs 1 crore

Section 44AD: Businesses, whose annual gross turnover does not exceed Rs. 2 Crore, are eligible under this scheme.

Derivatives, futures and options: Such transactions are completed without the delivery of shares or securities. Turnover in such type of transactions are to be determined as follows: -

  1. The total of favorable and unfavorable differences shall be taken as turnover.
  2. Premium received on sale of options is also to be included in turnover.
  3. In respect of any reverse trades entered, the difference thereon should also form part of the turnover.

Delivery based transactions: Where the transaction for the purchase or sale of any commodity including stocks and shares is delivery based whether intended or by default, the total value of the sales is to be considered as turnover.

Gross Receipt: the following items of income would be included: -

  1. i) Cash assistance received or receivable by any person against exports under any scheme of the Government of India;

(ii) Any duty of customs or excise or service tax re-paid or repayable as drawback to any person against exports under the Customs and Central Excise Duties and Service tax Drawback Rules, 1995;

(iii) The aggregate of gross income by way of interest received by the money lender;

(iv) Commission, brokerage, service and other incidental charges received in the business of chit funds;

(v) Reimbursement of expenses incurred and if the same is credited to a separate account in the books, only the net surplus on this account should be added to the turnover for the purposes of Section 44AB;

(vi) The Net exchange rate difference on export sales during the year on the basis of the principle explained in.

 (v) Above will have to be added;

 (vii) Hire charges of cold storage;

 (viii) Liquidated damages;

(ix) Insurance claims – except for fixed assets;

(x) Sale proceeds of scrap, wastage etc. unless treated as part of sale or turnover, whether or not credited to miscellaneous income account;

(xi) Gross receipts including lease rent in the business of operating lease;

(xii) Finance income to reimburse and reward the less or for his investment and services;

(xiii) Hire charges and instalments received in the course of hire purchase;

(xiv) Advance received and forfeited from customers.

(xv) The value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession.

The following items would not form part of “gross receipts in business” for purposes of section 44AB.

(i) Sale proceeds of fixed assets including advance forfeited,

(ii) Sale proceeds of assets held as investments;

(iii) Rental income unless the same is Assessable as business income;

(iv) Dividends on shares except in the case of an Assessee dealing in shares;

(v) Income by way of interest unless Assessable as business income;

(vi) Re Imbursement of customs duty and other charges collected by a clearing agent;

(vii) In the case of a recruiting agent, the advertisement charges received by him by way of reimbursement of expenses incurred by him;

(viii) In the case of a travelling agent, the amount received from the clients for payment to the airlines, railways etc. where such amounts are received by way of reimbursement of expenses incurred on behalf of the client.

(ix) In the case of an advertising agent, the amount of advertising charges recovered by him from his clients provided these are by way of reimbursement.

(x) Share of profit of a partner of a firm in the total income of the firm excluded from his total income under section 10(2A) of the Income-tax Act;

(xi) Write back of amounts payable to creditors and provisions for expenses or taxes no longer required.

As per GST Act: -

In past, CST/VAT was levied on sale of goods, Service Tax was levied on sale of services while Excise Duty was levied on manufacture. Under the proposed current GST regime, these and certain other levies are proposed to be subsumed and Tax is leviable on supply of goods or services or a blend of both. The concept of “supply” and what forms part of Turnover, would be included. The scope of “supply” is quite wide and includes:

  1. sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made;
  2. importation of service, whether or not for a consideration; and
  3. specified in Schedule I, made or agreed to be made without a consideration.

Under the proposed GST regime, “Turnover in a State” has been defined as “the aggregate value of all taxable and non-taxable supplies, including exempt supplies and exports of goods and/or services made within a State by a taxable person and inter-state supplies of goods and/or services made from the State by the said taxable person excluding taxes.

In summarized form “Turnover”:

Includes:

 Supplies in Goods or Services or in both effected within state or outside the state.3

 Stock Transfer, Barter, Gift in kind, Samples, Exchange of services, etc.3

 Exempted supplies, supplies made in the course of export.3

 Excludes: Taxes Leviable under the GST Enactments.7

Turnover Redefinition brings certain changes:-

  • For Small business exemption is Aggregate Turnover over Rs.9 lakhs for registration and Rs.10 lakhs for levy of Tax. Impact of these are as follows:-

 More businesses coming into the Taxation regime.3

 Improved benefits with respect to Input Credits.3

 Compliance requirements for Small Businesses.7

  • For Persons exclusively dealing in exempted goods/services or Exports would be mandatory to take GST registration.
  • For North-eastern States Aggregate Turnover over Rs.4 lakhs for registration and Rs.5 lakhs for levy of Tax (as against 9 and 10 lakhs respectively)

As per Amendments in GST law limits of turnover are as follows: -

  • Limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
  • Composition dealers to be allowed to supply services (other than restaurant services), for up to a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
  • Exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs
  • Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr.
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

CORPORATE AND PROFESSIONAL UPDATES 31ST JULY 2018

Image result for professional updatesDirect Tax :

  • Mumbai ITAT allows deduction for professional fees / merchant banking fees paid to PwC and other financial advisors for conducting financial and legal due diligence during AY 2008-09, observes that the very purpose of the expenditure was to raise funds to meet working capital requirements; Rejects Revenue’s stand that since the funds were raised through issue of rights shares, the payment incurred in connection therewith was capital in nature being incurred for the purpose of raising equity; [TS-413-ITAT-2018(Mum) ]
  • Andhra Pradesh and Telangana HC confirms ITAT order to uphold Sec 68 addition for gifts received by assessee-invidual from his father-in-law for AY 2005-06, rejects assessee’s reliance on co-ordinate bench ruling in context of gift received by assessee from his maternal aunt; Clarifies that “this is not a case where we can import the principle ‘what is sauce for the goose is sauce for the gander'”, also points out that gift from maternal aunt which was held non-taxable in view of Sec 56(2)(v), was received after the amendment to Sec. 56(2) unlike gift from father in law which was received prior, refuses to apply spirit of said amendment to grant relief; [TS-411-HC-2018(AP)]
  • Violation of principles of the natural justice by the lower authority – reliance on the statement of employees – the statement is stated to have been recorded at the time of inspection and one can easily perceive the mood in which the employee would have been – DXN Herbal Manufacturing (India) Pvt. Ltd. Vs. ITO (2018 (7) TMI 1733 – Madras HC).
  • Income tax authorities to issue certificate u/s 195 or 197 within 30 days, a good step to help the charitable trust and societies to avoid harsh TDS provisions.

INDIRECT TAX

  • TODAY (31 JUL 2018)is the last date for filing Apr-Jun’18 Qtr Return in GSTR-1 for registered persons with aggregate turnover up to Rs.1.50 Crores & GSTR-6 for Jul’17-Jun’18).
  • Levy of GST – Classification – composite supply – EPC Contract – standalone contract for transportation of Equipment for which separate consideration is received – same is liable to tax as a works contract as per provisions of section 2(119) of the GST Act – AAR, Maharashtra in Dinesh Kumar Agrawal (2018 (7) TMI 1691).
  • Central Government has now given effect to the recommendations of GST Council vide various notifications dated July 26, 2018 and all such notifications, unless specifically mentioned, shall be effective from July 27, 2018.
  • Union Finance minister said that the 28% category of goods in under GST is being phased out and the bracket currently covers mostly luxury items or sin goods. The tax on other items as cement, air-conditioners, large screen televisions and a handful of others could also be reduced as revenues rise.
  • One of the significant changes proposed by the GST Council in its recently concluded 28th meeting on July 21, 2018 is inclusion of following transactions in Schedule III to the CGST Act, 2017 :Retrospective Application of Merchant Trading, In-bond sales and High sea sales covered in Schedule III. 

FAQ on GST Audit:

  • Query:Who will bear the cost of special audit?
  • Answer:The expenses for examination and audit including the remuneration payable to the auditor will be determined and borne by the Commissioner.

MCA Update:

  • Updating of Email ID and Mobile number in DIR-6 has been temporarily disabled till further notice. Stakeholders may kindly take note.
  • Nearly 5.90 Lac (34%) of the 17.90 Lac Companies registred in India are in-active.
  • (Intimation of change in particulars of Director to be given to the Central Government)

RBI Update:

  • The Monetary Policy Committee (MPC) will meet during July 30 to August 1, 2018 for the Third Bi-monthly Monetary Policy Statement for 2018-19. The resolution of the MPC will be placed on the website at 2.30 pm on August 1, 2018.

SEBI UPDATES

  • Sebi barred more than 30 entities from the securities market for at least ten years for alleged fraudulent transactions in the shares of SMS Techsoft.

KEY DUE DATES

31 July 2018 -

  • Quarterly statement of TDS deposited for the quarter ending June 30, 2018
  • Annual return of income for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E.
  • Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
  • Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
  • Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
  • Statement in Form no. 10 to be furnished to accumulate income for future application undersection 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
  • Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2018.)
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

CORPORATE AND PROFESSIONAL UPDATES 30TH JULY 2018

ssss

Direct Tax :

  • Agra ITAT allows Sec. 89 relief to assessee-employee with respect to arrears received in lieu of employer’s contribution to an approved superannuation fund [taxable as perquisite u/s. 17(2)(vii)] during AY 2014-15; Rejects Revenue’s stand that the payments made by employer was perquisites u/s. 17(2), which cannot qualify for relief u/s. 89(1) as it covers salary arrears and arrears for profit in lieu of salary u/s. 17(3) only; [TS-408-ITAT-2018(AGR)]
  • SC clarifies that CBDT’s office memorandum (‘OM’) dated July 31, 2017 regarding stay of demand does not interfere with AO’s power to grant stay on deposit of a lesser amount, pursuant to Revenue’s appeal challenging Delhi HC judgment in LG Electronics India Pvt. Ltd.’s (‘assessee’) case; SC gives credence to Additional Solicitor General Vikramjit Banerjee’s submission before it that the said administrative Circular of the CBDT will not operate as a ‘fetter’ on the Commissioner, since it is a quasi judicial authority; [TS-406-SC-2018]
  • Calcutta HC upholds ITAT order, rejects Revenue’s stand that since possession of land owned by assessee-company was made over to developer pursuant to development agreement (‘DA’) dated February, 2007, capital gains arise in AY 2007-08 in view of Sec. 2(47)(v); HC rules that “it is only the kind of possession that is protected u/s. 53A of the Act of 1882 which is to be regarded as transfer and the mere handing over of possession of an immovable property for any other purpose may not fall within the scope of “transfer” in Section 2(47)(v);[TS-404- (HC-2018CAL)]
  • Kolkata ITAT deletes Sec 68 addition for consideration on sale of shares, allows assessee-individual’s LTCG exemption claim; AO had made addition based on information from Investigation Wing that relevant scrip on which LTCG was earned was involved in bogus LTCG scam and assessee’s PAN was listed in beneficiaries identified by Investigation Wing;[TS-402-ITAT-2018(Kol)]
  • Calcutta HC upholds ITAT order, rejects Revenue’s stand that since possession of land owned by assessee-company was made over to developer pursuant to development agreement (‘DA’) dated February, 2007, capital gains arise in AY 2007-08 in view of Sec. 2(47)(v); HC rules that “it is only the kind of possession that is protected u/s. 53A of the Act of 1882 which is to be regarded as transfer and the mere handing over of possession of an immovable property for any other purpose may not fall within the scope of “transfer” in Section 2(47)(v);[TS-404- (HC-2018CAL)]
  • CBDT has extended the ‘Due Date’ of filling Income Tax Return from 31st July 2018 to 31stAugust 2018, Dated 26th July 2018 (F. No. 225/242/2018/ITA.II).
  • CBDT: The date of Filing of Income tax return for A.Y 2018-19 ( Non Audit) is extended 31-08-2018 Vide Notification No . 225/242/248 dated 26-07-18.
  • CBDT has revised the mandatory tax audit report Form 3CD, which is to be filed by certain taxpayers, to expand the scope of the exercise. An auditor will now have to furnish details related to GST sales, information on transactions covered by transfer pricing provisions, cash transactions and transaction involving TDS.
  • The Delhi High Court directs Central Board of Direct Taxes to accept online filing of tax returns without furnishing Aadhaar number.
  • The Income Tax Department is set to crack down on TDS defaul ts by government and private sector entities, especially e-retail portals, local bodies like panchayats, as the CBDT has directed its assessing officers (AOs) across the country to undertake at least 30 surveys or on-spot checks.
  • The Securities Appellate Tribunal (SAT) on Thursday asked the income tax department to provide clarity on applicability of securities transaction tax (STT) on physically-settled derivative contracts.

INDIRECT TAX

  • E-commerce companies to face tax audit over GST refund issue: The anti-profiteering authority has ordered audit of major e-commerce companies like Flipkart, Amazon and Snapdeal, to find out whether they have refunded the excess GST collected from the consumers.
  • Central Government has now given effect to the recommendations of GST Council vide various notifications dated July 26, 2018 and all such notifications, unless specifically mentioned, shall be effective from July 27, 2018.
  • The Goods and Service Tax Council would exclusively consider issues related to micro, small and medium enterprises taxpayers at its 29th meeting scheduled for August 4, a finance ministry official said.
  • GST Tribunal (GSTAT) will come into effect soon, providing a higher judicial forum for businesses to redress disputes under the new tax framework. The GST Council approved creation of the tribunal with a national bench in Delhi and three regional benches in Chennai, Kolkata and Mumbai.
  • CBIC has notified that the services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company (NBFCs) are taxable under Reverse Charge Mechanism (RCM). Notification No. 15/2018.

FAQ on GST Audit:

  • Query: When can a taxable person pay tax on a provisional basis?
  • Answer:As a taxpayer has to pay tax on self-assessment basis, a request for paying tax on provisional basis has to come from the taxpayer which will then have to be permitted by the proper officer. In other words, no tax officer can suomoto order payment of tax on provisional basis. This is governed by section 44A of MGL. Tax can be paid on a provisional basis only after the proper officer has permitted it through an order passed by him.
  • Query: Under what circumstances a best judgment assessment order issued under section 46 be withdrawn?
  • Answer: The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand  withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.

MCA Update:

  • Form DIR6 is likely to be revised on MCA21 Company Forms Download page w.e.f 26th JUL 2018. Stakeholders are advised to check the latest version before filing.
  • Updating of Email ID and Mobile number in DIR-6 has been temporarily disabled till further notice. Stakeholders may kindly take note..

RBI Update:

  • Directions under Section 35A of the Banking Regulation Act, 1949 (AACS) – The Kapol Co-operative Bank Ltd, Mumbai, Maharashtra.

SEBI UPDATES

  • SEBI proposed Unified Payments Interface (UPI)-based payments for retail investors investing in IPO. The move will help cut down the time taken between closing of an IPO and listing of the security from current six days to just three days.
  • SEBI proposed measures to provide promoters a say in the price offered to shareholders of companies that are planning to delist from stock exchanges. The proposal is aimed at plugging loopholes in the current delisting method for companies. Issuing a draft paper, Sebi has suggested for a price discovery as per reverse book building (RRB) method, along with considering counter offer of promoter .

OTHER UPDATES

  • Parliament passed the Fugitive Economic Offenders Bill to prevent economic offenders from fleeing the country and evading the legal process. It also gives teeth to the Enforcement Directorate to confiscate the property of fugitive economic offenders.
  • Cash-on-delivery (COD) method of payment option provided by online retailers such as Flipkart and Amazon may be a regulatory grey area as per the Reserve Bank of India’s (RBI’s)
  • India will soon lay down the ground rules for professionals to assess the value of businesses, including those slipping into bankruptcy, according to Insolvency and Bankruptcy Board of India (IBBI) chairperson M.S. Sahoo.
  • ICAI vide announcement dated July 25,2018 has requested the members to add/update their mobile number and email-id in the records of ICAI in order to enable the ICAI to send bio-data of candidates, important election related announcements, etc. to members.
  • Cheque bounce law passed in lok sabha on 23.07.18. 20 % immediately to pay to party, 20 % to deposit in court, 100 % to pay with interest if found guilty within two month. Penalty will be charged 20% to 100% for guilty by court.

KEY DUE DATES

30 July 2018 -

  • Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2018
  • Due date for furnishing of challan-cum-statement in respect of tax deducted undersection 194-IA for the month of June, 2018
  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of June, 2018

31 July 2018 -

  • Quarterly statement of TDS deposited for the quarter ending June 30, 2018
  • Annual return of income for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E.
  • Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
  • Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
  • Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
  • Statement in Form no. 10 to be furnished to accumulate income for future application undersection 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
  • Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2018.)
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

AMENDMENTS IN TAX AUDIT UNDER SECTION-44AB

ssSr

Income Tax Audit Form No. 3CD amended by The Central Board of Direct Taxes through Notification No. 33/2018, dated. 20 July, 2018.

The new features of Form 3CD will be in effect from 20th August, 2018 to incorporate further reporting requirement related to Goods and Service Tax (GST), Transfer pricing, Statement of Financial Transactions, Section 32AD, Income from other sources as referred to in clause (x) of sub-section (2) of section 56, Cash Receipt / Payment of More than 2 Lakhs from a single person in a day. 

The following rules made are as under Income-tax Rules, 1962, namely:-

  1. These rules may be called the Income–tax (8th Amendment) Rules, 2018.
  2. Changes in Appendix II, in Form No. 3CD,-
  • in serial number 4, there is a Requirement to furnish the GST No.
  • in serial number 19 & 24, Section “32AD” has been added to allow the deduction in respect of investment in notified backward areas of Andhra Pradesh, Bihar, Telangana, West Bengal.
  • In serial number 26, clause (f) of section 43B is added which allows the liability towards Railways for use of their assets on actual basis.
  • After serial number 29,
  • no. 29A is added for section 56(2)(ix) of the Act. to tax the advance amounts received against the capital asset in the course of negotiation, but later forfeited and no transfer effected.
  • It is worthwhile to be noted that any amount comes under this head then specify the Nature of income and amount.
  • No. 29B to show whether any amount is to be included as referred in clause (x) of sub-section   (2) of section 56 chargeable under the head ‘income from other sources’
  • It is worthwhile to be noted that any amount comes under this head then specify the Nature of income and amount.
  • After serial number 30, Sr. No. 30A is added for section 92CE, According to this section any primary transfer pricing adjustments made in the case of an assessee, the assessee is required to make a secondary adjustment provided that:
  • The given primary adjustment is more than 1 crore; and
  • It also pertains to assessment year on or after 1 April 2016.  

Where such amount is not recovered, then balance should be treated as an advance given to AE and  recovered along the interest. 

  • No. 30B is added which provides that where the assessee has incurred expenditure during previous year as a interest or of similar expenditure exceeding one crore rupees as referred to in sub-section (1) of section 94B.

It is noted that where the above provision follows, assessee should provide the following:-

Amount of expenditure by way of interest or of similar nature incurred.

  1. Earnings before interest, tax, depreciation and amortization during the previous year.
  2. Amount of expenditure as an interest or of similar nature as per (i) above which exceeds 30% of EBITDA as per (ii) above:
  3. Amount of interest expenditure brought forward as per the section 94B.
  4. Amount of interest expenditure carried forward as per the section 94B.
  • no. 30C is added for section 96 of the Act. to ascertain whether the assessee has entered into an impermissible avoidance arrangement where such agreement creates such rights between the parties, by misuse of the provision of the Act, which not created in normal course between parties dealing at arm’s length.

It is noted that assessee provide the following details if cover under the above provisions as follows:-

  • Nature of the impermissible avoidance arrangement.
  • Amount of tax benefit in the previous year arising to all the parties to the arrangement.

In serial number 31, Clause (ba), (bb), (bc) and (bd) has been included pertaining to section 269ST of the Act as follows:-

  1. “(ba) Particulars of each transaction where an amount received in aggregate of INR Two Lakhs from a person in a day or in respect of a single transaction or in respect of transactions during the previous year, where such amount is received other than by a Cheque or bank draft or any of the electronic clearing system. Following information is required as stated below:-
  • Name, address and PAN No. of the assessee;
  • Nature of the transaction;
  • Amount of receipt;
  • Date of receipt;
  1. (bb) Particulars of each transaction where amount received in aggregate of INR Two Lakhs from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person, received by a cheque or bank draft, not being an account payee cheque or an account payee bank draft, during the previous year. Following information is required as stated below:-
  • Name, address and PAN No. of the assessee;
  • Amount of receipt
  1. (bc) Particulars of each and every transaction payment made in an amount exceeding INR Two Lakhs in aggregate to a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion to a person, otherwise than by a cheque or bank draft or use any electronic clearing system through a bank account during the previous year. Following information is required as stated below:-
    • Name, address and PAN of the payee;
    • Nature of transaction;
    • Amount of payment
    • Date of payment.
  1. (bd) Particulars of each and every transaction payment made in an amount exceeding INR Two Lakhs in aggregate to a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion to a person, otherwise than by a cheque or bank draft or use any electronic clearing system through a bank account during the previous year. Following information is required as stated below:-
    • Name, address and PAN of the payee;
    • Amount of payment.

It is further advised to be note that the Particulars at (ba), (bb), (bc) and (bd) are not required to provide if the amount is receipt by or paid to a Government company, a banking Company, a post office savings bank, cooperative Bank.

  • In sr. number 34, in place of item (b), the following Para shall be substitute as:-

Whether an assessee is required to furnish the statement of TDS or TCS. If the assessee required for the above then he specify the following below information’s:-

  • Tax deduction & Collection Account Number
  • Type of Form
  • Whether the statement of TDS or TCS contains information about all details/transactions which are required to be reported
  • serial number 36A included for deemed dividend u/s 2(22)(e) .It suggests that the assessee who holds not less than ten percent voting power received by way of loan or advance provide the information regarding Amount and Date of Receipt.
  • After serial number 41 and the entries relating thereto, the following shall be inserted, namely:-

Sr.No. 42 inserted in respect of form no. 61, 61A, 61B

Auditor must satisfy himself that all the required information is submitted, if not provided then ensure that same should be provided in Form 3CD.

  1. Form 61- it provide the detail of form 60. Transaction under rule 114B follows and document with that regard has been collected by the assessee without PAN, then assessee collect detail in Form 60.
  2. Form 61A-Furnish the information regarding the transaction given under rule 114E implemented during the financial year.
  3. Form 61B- Statements of the Accounts which should be reported in accordance with FATCA and CRS for a calendar year.
  • No. 43 inserted w.r.t. to country by country reporting under section 286 of the act.

Section 286 specifies the companies liable to comply with country by country reporting. They are requiring to complying with the reporting requirement of form 3CEAC and Form 3CEAD, wherever applicable.

The information required as stated below

  1. Name of parent entity
  2. Name of alternate reporting entity (if applicable)
  3. Date of furnishing report
  • No.44 inserted to provide the following information regarding the Break-up of  expenditure of entities whether registered or not under the GST as follows:-
  1. Total expenditure incurred during the year.
  2. Expenditure relating to goods and services not liable to tax
  3. Expenditure of entities falling under the composition scheme
  4. Expenditure relating to the entities not registered in GST

Conclusion:

The liability of the Auditor is increased towards the requirement of documentation and verification towards the compliance of the provisions and rules of the Act.

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

OVERVIEW OF GOOGLE TAX/ EQUALISATION LEVY

shi

Over the last decade, Information Technology has gone through an expansion phase in India and globally. Consequently, this has given rise to various new business models, where there is heavy reliance on digital and telecommunication networks.

As a result, the new business models have come with a set of new tax challenges  in terms of nexus, characterization and valuation of data and user contribution. The combination of inadequacy of physical presence based nexus rules in the existing tax treaties and the possibility of taxing such payments as royalty or fee for technical services creates a fertile ground for tax disputes.

A new chapter (viii) titled ‘Equalisation levy’ is inserted in the finance bill which will take effect from 1st of June 2016 to provide for an equalisation levy of 6 % of the amount of consideration for specified services received or receivable by a non-resident not having permanent establishment (‘PE’) in India, from a resident in India who carries out business or profession, or from a non-resident having permanent establishment in India.

With the introduction of the equalisation levy, the Govt. has been indirectly able to tax the global advertising companies and has set the more services may be added in the list of specified services in future.

The Salient Features of this Equalisation Levy are as Under: -

  • It is to tax the e-commerce transaction/digital business which is conducted without regard to national boundaries.
  • The equalization levy would be 6% of the amount of consideration for specified services received or receivable by a non-resident not having the permanent establishment (‘PE’) in India, from a resident in India who carries out business or profession, or from a non-resident having the permanent establishment in India.
  • Specified services mean online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement and includes any other service as may be notified by the Central Government.
  • No levy if the aggregate amount of consideration does not exceed Rs.1 lac in any previous year.

Equalization Levy will not be Charged: -

  • If service provider being a non-resident having Permanent Establishment in India.
  • Service provider is a resident in India.
  • Amount of consideration is less than Rs 1 lakh

Applicability and Manner of Deduction of Equalization Levy: -

This levy of equalization would be in the same manner as TDS, like the person making the payment for advertisement will require to deduct Equalization levy @ 6% on total amount of consideration and deposit the same to the account of Central Govt.

In case of failure to do so, these expenditures will not be allowed to claim for Income Tax Purpose.

Reason for Introduction of Equalization Levy: -

Many Companies who are providing services in the whole world register themselves in a country wherein the Tax rates are very low and pay very low taxes on their global income.

Like in India revenue of Google in FY 2014-15 was 4,108 Crores, hence the introduction of Equalisation levy would help the Governmentto collect a lot of money which till now was not Taxed that’s why many people are calling Equalisation levy as Google Tax. Because a major share of online ads spent goes to Google.

Due Date of Depositing Equalization Levy

Due Date of depositing Equalization levy to the account of Central Govt by the 7th day of the Month immediately following the said calendar Month. 

Due Date of Furnishing Equalization Levy Statement (Form-1)

Due Date of Furnishing Equalization levy Statement is on or before 30th June of Financial Year ended. (after the end of Financial Year Assesse has to submit Form-1 on or before 30th June or within the prescribed time as the case may be.) 

Revision or Late Submission of Form-1

If assesse failed to furnish statement within time or had furnish wrong and now want to revise the same he can upload belated return or revise return at any time before the expiry of two years from the end of financial year in which specified services were provided.

Interest on Default: -

If the amount of levy is not deposited within a specified time, then assessee shall have to pay 1% Interest on such levy for every month or part of the month by which such credit of the Tax or any part of Tax delayed.

Failed to deduct levy: -

penalty amount will be equal to the amount of Equalization levy that Assessee failed to deduct.

Levy has been deducted but not deposited then Penalty amount will be Rs. 1,000 per Day till default continues but the total of a penalty shall not exceed the amount of equalisation levy.

Penalty for Default in Furnishing Statement: -

If Assessee failed to furnish the Equalization levy statement within the prescribed time, he has to pay penalty Rs. 100 Per day till the default continues.

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

BE AWARE OF SEC-234F (FEES) OF ITR

sssRRR

Under this section, fee (penalty) is levied if the Income-tax return is not filed within due date. It is likely to be increased from 1st April 2018 onward as per Section 234F of the Income Tax Act. Provisions of the Section 234F of the Income Tax Act are as follows. 

Section 234F: New penalty for late filing of Income Tax Return under section 234F is introduced in Budget 2017. This penalty is applicable for the assessment year commencing from 1st Day of April, 2018. If a person who is compulsorily required to file Income Tax Return (ITR) under section 139, doesn’t file return on time then he is liable to a penalty as follows 

Total Income Return filed Fee (Penalty)
Exceeds Rs. 5 Lakh On or before 31st December of Assessment Year but after due date Rs. 5,000/-
In any other case Rs. 10,000/-
Upto Rs. 5 Lakh After due date Rs. 1,000/-

Let us discuss the above provision below:-

AMOUNT OF PENALTY

For person with Total Income of more than Rs. 5,00,000. Penalty amount would be as follows:-

  1. If ITR is filed on or before 31st December following the last date – Rs. 5,000
  2. If ITR is filed after 31st December – Rs. 10,000

For person with Total Income of up-to Rs. 5,00,000 – Rs. 1,000

Before 1st April 2018 – Penalty for Late Filing would be as follows-

Up to FY 2016-17, taxpayers who do not file their income tax return in stipulated time period are liable to a fine (penalty) of Rs. 5,000.

It is further noted that liability to pay the penalty of Rs.5,000 is arises when an Income Tax Officer issues a notice for a late filing of income tax return. It is worthwhile to note that the penalty for late filing of income tax return is based on the conclusion of the assessing officer.

Contract us for Know more about consequences and penalty for late filing income tax return. We also handle tax & registration services  

We offering our service in ​all Taxation and Various Registration related services ​managed by professional , our bouquets of services portfolio are:

S.No. COMPLIANCES NATURE OF COMPLIANCES
1 INCOME TAX Return Filing, Tax Deposit, TDS Returns, TAN, PAN, MAT, Tax Planning, NRI Taxation, Scrutiny, Assessments, Representing for Appeals etc.
2 GST Registration, GST Tax Deposit, Monthly & Annually Return Filing, Input Credit, Department Notice, Assessment, And Other Compliance.
3 COMPANY PVT. LTD./LTD/LLP Company Incorporation, Minutes, Annual Filing, Income Tax Return Filing, Routine Compliance, Section 8 Company, Nidhi Company, Inspection & Investigation for Mergers & Takeover.
4 SOCIETY/ TRUST (NGO) Registration of Society/Trust, All India society, MOA, Income Tax Return Filing, Registration 80G & 12A, Utilization Certificates, Regs in NITI Aayog/NGO Darpan, etc.
5 PARTNERSHIP FIRM Partnership Deed, Registration, Accounting, Income Tax Return Filing etc
6 PROPRIETOR FIRM Registration, Accounting, Income Tax Return Filing, Refund etc.
7 IMPORT-EXPORT CODE Registration

​ & ​

Amendment8ACCOUNTING​Accounting  of  Prop. Firm, Partnership Firm, Company, Trust, Society, Proper Accounting in Tally, Ledger Management, Inventory Management etc9OTHER REGISTRATION &COMPLIANCESSI/MSME REGS, ESI, EPF, GMP CERTIFICATION, CGMP, HACCP, SA 8000, UL MARKING, CE MARKING ETC.

 We are always available with best of our assistance and services for you.

 

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

CORPORATE AND PROFESSIONAL UPDATES

srryz

Direct Tax :

  • Allahabad HC reverses ITAT order and rules in favour of Revenue for AY 1997-98, upholds AO’s addition of excise duty payable to the value of closing stock; Rejects ITAT’s view that since the excise duty was payable on goods lying in bonded warehouse, the assessee-company did not incur any cost on account of excise duty which can be added towards closing stock;[TS-400-HC-2018(ALL)]
  • HC allows assessee’s (a foreign company) writ, sets aside final assessment order passed u/s 143(3) without passing draft assessment order as mandated by DRP provisions u/s 144C(1) for AY 2011-12; Notes that while giving effect to Tribunal’s order in remand proceedings, AO passed a final order without passing a draft assessment order; [TS-719-HC-2018(BOM)-TP]
  • Karnataka HC dismisses assessee’s appeal against ITAT-order holding that AO was justified in adopting reasonable operating profit margin for ALP computation in absence of relevant material to the contrary for AY 2006-07; Follows co-ordinate bench ruling in Softbrands wherein it was held that “unless the finding of the Tribunal is found ex facie perverse, the Appeal u/s. 260-A of the Act, is not maintainable”; [TS-629-HC-2018(KAR)-TP]

 Summary of Amendments:

  1.  4 – GSTIN to be mentioned.
  2.  19 – Allowance under Section 32AD is to be reported.
  3. 24 – Deemed gains under Section 32AD to be reported.
  4.  26 – Clause (g) of Section 43B (sum payable to Indian Railways for use of assets) has to be reported.
  5.  31 – Cash receipts more than INR 2,00,000 under Section 269ST is to be reported.
  6.  34 – Details with respect to transactions not disclosed in TDS Return/ TCS Return is to be reported.

Tax Audit 3CD Revised:
(6 Amendments + 9 Insertions)
Summary of Amendments:

  1.  29A – Advance received on capital asset forfeited to be reported here {Section 56(2)(ix)}.
  2.  29B – Income of gifts exceeding INR 50,000 to be reported here {Section 56(2)(x)}.
  3.  30A – Details about “Primary Adjustments” in transfer pricing to be reported here as per Section 92CE.
  4.  30B – Limitation of Interest deductions for borrowings from a AE upto 30% of EBITDA is to be furnished here.
  5.  30C – Details of Impermissible Avoidance Agreement to be furnished as referred to in Section 96.
  6.  36A – Dividend received under Section 2(22)(e) is required to be reported here.
  7.  42 – Details w.r.t. Form 61 (details of no PAN Form 60 received), Form 61A (SFT) and Form 61B (SRA) is to be provided here.
  8.  43 – Details w.r.t. CbC Reporting as referred to in Section 286 is required to be reported.
  9.  44 – BREAK UP of total expenditure in respect of GST Registered and Unregistered Entities is required to be given.

FAQ on GST Audit:

  • Query:Is summary assessment order to be necessarily  passed against the taxable person?
  • Answer: In certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be  ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (section 48 of MGL).

RBI Update:

  • Directions under Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) – The United Cooperative Bank Limited, Bagnan Station Road (North), P.O. – Bagnan, Dist – Howrah, Pin – 711303, West Bengal.

KEY DUE DATES

30 July 2018 -

  • Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2018
  • Due date for furnishing of challan-cum-statement in respect of tax deducted undersection 194-IA for the month of June, 2018
  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of June, 2018

31 July 2018 -

  • Quarterly statement of TDS deposited for the quarter ending June 30, 2018
  • Annual return of income for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E.
  • Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
  • Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
  • Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
  • Statement in Form no. 10 to be furnished to accumulate income for future application undersection 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
  • Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2018.)
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

OVERVIEW OF GST REGISTRATION

Image result for overview gst registration

FOR SERVICE PROVIDERS: -

like any other category of business, service providers would be required to obtain GST registration, if the entity has an aggregate annual turnover of more than Rs.20 lakhs per annum in most states and Rs.10 lakhs in Special Category States(The GST Council in its 28th meeting held on Saturday  has changed the threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.. )

if you are a service provider, involved in inter-state, within a turnover of 20 lakhs  you are exempt from GST registration.

It is mandatory to obtain registration irrespective of turnover if: -

  • You are registered in old law
  • You undertake inter-state supply of goods or services more than 20 lakhs,
  • You are casual taxable persons.
  • You are non-resident taxable persons.
  • You provide services of an input service distributor.
  • You are an e-commerce operator or aggregator.

If you are expecting your annual turnover to increase in future, you take GST registration voluntarily.

Date of GST Registration Obtained: -

If you are an existing service provider having service tax registration, the service tax registration has been mandatorily converted into GST registration.

If you are starting a new service business, then you must apply and obtain GST registration within 30 days of commencing business. If you are a casual taxable person or non-resident taxable person, you have to obtain GST registration atleast 5 days before commencing business

Process of GST Registration

For those service provider who must obtain GST registration, the process is very simple:

  • Upon logging into your service tax account, you will be given a provisional ID and password for the purpose of enrollment in GST.
  • Upon entering the GST portal, you will be prompted with selecting one of the two given choices, where you must click “New user login”.
  • Login using your ID and password
  • After logging in, you will be taken to a page where you enter your mobile number and mail address
  • After entering the same, you will receive separate OTP’s on your mobile number and mail, mention them
  • Create your desired user name and password
  • Set security questions

You will be enrolled into GST after following the above steps.

Change GST Registration Information

GST registration requires various details of an applicant. Once an applicant has registered under GST, after that he may be a need to make amendments to the particulars of the registration. For amend GST Registration the applicant needs to file an application for doing amendments in the details furnished. To apply for amendment of GST registration, one must understand the two categories.

  • Application for the amendment of core fields – requires approval from GST Authorities
  • Application for the amendment for non-core fields – Does not require approval from GST Authorities 

Core Fields of GST Registration

The following particulars included in core fields and can be amended:

Business Details: -

  • Legal Name of the Business
  • Trade Name
  • District of Business
  • Constitution of Business

Partner/Promoter Details: -

  • Names of new partners/promoters can be added and old stakeholders can be removed.
  • Changes that occur between existing partners/promoters can be Amended as a Non-core Amendment.

Principal Place of Business:-

  • Address
  • Contact Information
  • Possession status of Premises
  • Type of Business Activity carried out at the location

Additional Place of Business:-

  • Additional places of Business.
  • Details of Address, contact information.
  • Possession status of Premises.
  • Type of Business Activity carried out at the location.

Procedure for Amendment of Core Fields

By following the steps mentioned below, you can file an application for the amendment of core fields in GST registration:

STEP 1: Visit the GST Portal and login into your GST account by providing the username and password.

STEP 2: Select services from the top menu and then select Registration from the drop-down menu.

STEP 3: You will see another drop down menu from which you will have to select “Amendment of GST Registration Core Fields” in the option.

STEP 4: The page leads to the amendment of core fields where one can file the application for amendments. One may select the icon representing the core field that is desired to be modified.

Once all the steps followed and verification process is completed, an ARN is generated and an acknowledgement message for the same will be received within a stipulated time of 15 minutes through message/e-mail. The application is processed within 15 days from the date of signing the Amendment application. The applicant will receive a notification through SMS or e-mail about whether the amendment has been approved or rejected. If the details of the amendment are not satisfactory, the assessing officer might issue a notice to the applicant for which a reply is to be made within 7 working days.

Application for amendment of registration must be submitted within15 days from the date of change that requires notification to the GST registration. The application will be available for 15 days after making changes. After a period of 15 days, the application will automatically be deleted upon failure to submit the same.

Non-Core fields of GST Registration: -

Fields of the registration application except legal name of the business, Addition/ deletion of stakeholder details and principal place of business or Additional place of business are called non-core fields.

Non-core fields are available for editing, and changes in it are auto populated in registration of the taxpayer. No approval is required from the Tax Official if any amendments are made to these fields by the taxpayers

procedure for the amendment of Non-Core fields: -

 

  • Login to the GST Portal with valid User ID and password.
  • Under Services tab, click Registration → Amendment to Registration Non – Core Fields
  • Select the appropriate tab which you want to change / amend.
  • After doing changes, click on Verification Tab.
  • Select the Authorized Signatory from the drop down.
  • Enter the Place.
  • After the application is filled, you have to digitally sign the application using DSC or EVC.
  • A message will be displayed showing that the submission is successful.

You will receive an Acknowledgement within 15 minutes on registered Email ID and Mobile number. Also the email and message containing ARN and intimation about successful filing of application form for Amendment in Non-Core fields will be sent to Primary Authorized Signatory.

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

ALL ABOUT GST TDS

Image result for all about gst tds photosGST TDS is the system through which certain percentage of tax is collected at the source of the income. Certain Government Department, Local Authorities, Agencies and Public Sector Undertaking are required to deduct GST TDS. GST TDS is a dynamic tool for reduction of tax evasion.

As per Section 51 of the CGST Act, 2017 it contains the provisions of TDS under GST. As per the said provisions, following list of persons are liable to deduct TDS under GST: -

  • A department or establishment of the Central Government or State Government
  • Local authority
  • Governmental agencies
  • Such person or category of persons as may be notified by the Government on the recommendations of the Council.

 the Government introduce following additional category of person liable to deduct tax at source, via notification no. 33/2017 dated 18.09.2017:

  • An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity (control) owned by the government;
  • A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860;
  • Public Sector Undertakings.

TDS Rate under GST

The TDS rate under GST is 2%. It means that the deductor has to deduct TDS @ 2% on the payment made or credited to the deductee for supply of taxable goods or services or both.

GST Registration mandatory

It is mandatory to obtain GST registration for the person who are liable to deduct TDS as per the provisions of section 51 of CGST Act, 2017. If GST registration is not taken, then exemption limit is not applicable to such persons. Unique feature of GST registration,is that PAN is not compulsory for obtaining GST registration, however, GST registration can be obtained on the basis of existing Tax Deduction and Collection Account Number (TAN).

Liability for Deducting TDS under GST

GST TDS is required to be deducted when total value of supply, under a contract, exceeds an amount of INR 2,50,000/-.

For the purpose of deduction of GST TDS, the amount of value of supply shall be excluding the amount of central tax, state tax, union territory tax, integrated tax and cess as mention in the invoice.

GST TDS Non-Applicable

When both the supplier and the place of supply are different from the recipient, no tax deduction at source would be made.

Payment of GST TDS to which government

The deductor of TDS is required to deposit the amount deducted to the Government on the 10th day of the succeeding month in which the tax is deducted. The payment of TDS should be made to the respective Government i.e. IGST and CGST should be deposited to Central Government and SGST should be deposited to State Government.

Penalty for not issuing certificate within time limit

TDS certificate in FORM GSTR-7A is to be issued by the deductor to the deductee within a period of 5 days of crediting the amount to the Government. In case the deductor fails in issuing the certificate in required time limit, he would be liable to pay a late fee of INR 100/- per day from the expiry of the 5th day till the date certificate has been issued. Maximum amount of late fee payable would be INR 5,000/-.

GST TDS Credit

GST TDS deducted by the deductor and deposited to the Government shall be shown in the electronic cash ledger of the deductee. The deductee would be able to use the said amount against payment of tax.

Liability of Return Filing

The person deducting TDS is liable to file GST return in FORM GSTR-7 within a period of 10 days from the end of the month.

GST TDS Refund

When TDS has been deducted in excess of the amount actually to be deducted, then, in such case deductor or deductee can claim for refund of such excess TDS. However, if the excess amount deducted is already credited in electronic cash ledger of the deductee than no refund will be given.

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

CORPORATE AND PROFESSIONAL UPDATES 25TH JULY 2018

Image result for professional updatesDirect Tax;

  • SC dismisses Revenue’s appeal against Bombay HC judgment in case of Hercules Hoists Ltd.; HC had dismissed Revenue’s appeal against ITAT order holding that losses of units eligible for Sec 80-IA benefit can be set off against income from other sources and that such losses to be notionally carried forward u/s 80-IA(5) and set off against profits for computing deduction in subsequent years;  [TS-398-SC-2018]
  • Delhi HC allows assessee-company’s writ, quashes ITAT’s unreasoned order consolidating appeals absent any notice given to assessee before issuing the consolidation order; HC notes that all these appeals preferred by assessee were pending for a long time and were adjourned by various benches at the behest of the Revenue on the groundthat appeals would be consolidated;[TS-397-HC-2018(DEL)]
  • Bombay HC disallows assessee-company’s (engaged in manufacturing copper foils) claim of expenditure incurred on higher education of one of the director’s son during AY 1997-98 who went abroad for pursuing course in ‘Business Administration’, holds that the expenditure was ‘general’ in nature and cannot be said to be incurred wholly and exclusively for the purpose of assessee’s business; [TS-391-HC-2018(BOM) ]
  • CBDT clarifies that the Rumors Spreading Across in Social Media regarding Extension in Due Date for Non-Tax Audit Cases is fake. The Income Tax Dept further clarified that there are no such plans to extend this deadline beyond 31st July, 2018.
  • Central Board of Direct Taxes makes rules further to amend Appendix II, in Form No. 3CD. These rules may be called the Income–tax (8th Amendment) Rules, 2018, which shall come into force from the 20th day of August, 2018. Vide notification no 33/2018, dated 20th July 2018.
  • CBDT amended Tax Audit Report in Form 3CD from 20-8-2018.Important clauses are as follows: Secondary adjustments u/s 92CE, Interest reduction u/s 94B, GAAR, Section 56(2) (x), Deemed dividend u/s 2(22), Compliance under section 269ST, Compliance of FORM 61 or 61A or 61B, & Total expenses of entities registered or not under GST.
  • CBDT has directed the taxman to dispose of appeals cases where the tax demand is above Rs 50 crore on priority by the year-end. “Litigation is not only a cost on the credibility of a tax administration system but also an indicator of the robustness and fairness of a system of taxation.

INDIRECT TAX

  • CBEC has issued Clarification in case of SB003 errors and extension of date in SB005 & other cases using officer Interface for rectification of errors w.r.t Refund of IGST on export of goods on payment of duty.
  • The GST Council has made recommendations on various issues relating to policy, law and procedures, including key recommendations on ‘reduction in GST rates of more than 50 items, rationalisation of return filing system for small taxpayers, further deferring RCM upto 30 Sept. 2019, amendments in GST laws, etc.

FAQ on GST Audit:

  • Query: What is the time limit for passing order u/s 46 and 47?
  • Answer: The time limit for passing an assessment order under section 46 or 47 is three or five years from the due date for filing the annual return.

SEBI UPDATES

  • Sebi is keen to mandate companies that have more than Rs.100 crore as long-term borrowings compulsorily raise at least 25% of their funding needs by selling bonds. Sebi has joined RBI in nudging corporates towards the bond market through its latest draft paper.

ORTHER UPDATES

  • ICAI Clarifies on IND-AS 115 regarding Real Estate Sector, which came into effect from April 1.

KEY DUE DATES

30 July 2018 -

  • Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2018
  • Due date for furnishing of challan-cum-statement in respect of tax deducted undersection 194-IA for the month of June, 2018
  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of June, 2018

31 July 2018 -

  • Quarterly statement of TDS deposited for the quarter ending June 30, 2018
  • Annual return of income for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E.
  • Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
  • Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
  • Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
  • Statement in Form no. 10 to be furnished to accumulate income for future application undersection 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
  • Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2018.)
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