New Revise TDS / TCS return filing due date & Payment due date for 2020

New Revise TDS / TCS return filing due date & Payment due date for 2020 as per the Taxation and Other Regulations (Relaxation of Some Provisions) Order, 2020.

The deadlines for specific GST and Income Tax legislation have been expanded by the Minister of Finance. Pandemic COVID-19 has forced a lockout in India. There are many challenges for business and professionals during this period, including different compliances under tax legislation.

Various reliefs are provided with respect to the submission of the TDS / TCS declaration and the issue of the certificate in the “Taxation and Other Laws (Relaxation of Other Provisions) Order 2020” for the quarter ended 31.03.2020.

Complete Coverage of Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

calendar year 2020 has begun with many challenges, with the revised due dates for various TDS related return filings and tax payments following.

Complete Chart of TDS

Attributable Due Date for TDS E-filing Returns for Fy 2019-20.

Quarter Quarter Period Last Date of Filing
1st Quarter 1st April to 30th June 31st July 2019
2nd Quarter 1st July to 30th September 31st Oct 2019
3rd Quarter 1st October to 31st December 31st Jan 2020
4rd Quarter 1st January to 31st March 30th June 2020 Read Rescript 2020

Changes in interest rate for delay in the deposit of TDS / TCS in time as provided for in the Taxes and Other Laws (Relaxation of Other Provisions) Legislation, 2020.

TDS / TCS Changes to Covid19 by Ministry of Finance

  • “Government to infuse Rs 50,000 crores of liquidity by reducing the rate of TDS, the rate of non-salaried specified payments made to residents, and the rate of Source Tax Collection for specified receipts by 25% of the current rate”
  • “Among other steps, the due date of all income tax returns for the fiscal year 2019-20 will be extended from 31 July 2020 and 31 October 2020 to 30 November 2020 and the tax audit from 30 September 2020 to 31 October 2020”
  • “The period of the Vivad se Vishwas scheme for making payment without an additional amount will be extended to 31 December 2020”
  • Advanced tax, self-assessment tax, standard tax, TDS, TCS, equalization fee, STT, CTT late payments made between 20 March 2020 and 30 June 2020, the lower interest rate at 9% instead of 12%/18 percent per year (i.e. 0.75 percent per month instead of 1/1.5 percent a month) will apply. There is no late fee / penalty available.
  • The government extended the scope of the lower or nil TCS, TDS credential until 30 June 2020 due to a coronavirus pandemic.

Arrival Due date for TDS & TCS Payment Deposit for Government & Non-Government Companies

  • The due date for the submission of the TCS deposit is the 7th of the next month.

TDS Deposit Due Date as follows:

  • For non-governmental entities-7th of the next month (with the exception of March where the due date is scheduled for April 30th)
  • Government departments
  • If you pay via Challan-7th of next month
  • If paid via book-entry, the same day on which the TDS is deducted.

Interest in late payment and late deduction of TDS

As per section 201(1A) Interest at the rate of 1 % per month or part of the month on the amount of TDS deductible from the date of tax until the date of tax actually deducted shall be charged for the late deduction.

Also, interest for late payment at a rate of 1.5 percent per month or part of the month on the amount of the payment.

Interest in late payment of TDS: amendments made pursuant to Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020:

For late payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20 March 2020 and 30 June 2020, the interest rate will be reduced by 9 percent instead of 12 per cent/18 percent per year (i.e. 0.75 percent per month instead of 1/1.5 percent per month). No late fee/penalty shall be paid for any delay in respect of that time.

Interest in late payment of TCS or failure to collect TCS:

In the event that the collector responsible for collecting the tax at source does not raise it or refuses to pay it to the Government, he shall be liable to pay basic interest at a rate of 1% a month or part thereof on the balance of that tax from the date on which the tax was collected to the date on which the tax was actually charged and that interest shall be paid until furnish.

Punishment

You will have to pay a fine equal to the amount deducted/collected under the provisions of the Income Tax Act.

Prosecution (Sec 276B)

As per the prosecution (Sec 276B), if a person refuses to pay the payment to the Central Government, the TDS deducted by him under the provisions of Chapter XVII-B shall be entitled to obtain a strict penalty of at least three months, which may be expanded to seven years. The fine depends on the conditions or inquiry conducted by the appointed tax authority/assessment officer.

Penalty (Section 234E)

The deductee of the TDS shall be liable to pay a fine of INR 200/-per day before the full sum of the TDS is paid. However, the penalty shall not exceed the actual amount of the TDS.

Late Filing Fees :

For the delayed fee of TDS after deduction under Section 201(1A), you have to pay interest at a rate of 1.5 percent per month from the date of the deduction to the actual date of the deposit. It should also be remembered that interest is measured on a monthly basis rather than on a number of days. Half of a month will also be regarded as a whole month.

What is important to remember here is that

The estimation of interest on the balance of the TDS owed starts on the day from which the TDS was withheld rather than the day from which it was due.

PENALTIES (Section 271H)

Pursuant to this rule, the Assessing Officer may direct a person who has not filed a TDS payment on time with a minimum of INR 10,000, which may even be extended to INR 1,000,000.

If the following conditions are met, no penalty will be levied (under section 271H) for late payment of TDS / TCS returns:

  • The tax deducted at source must be paid to the credit of the government.
  • No penalty will be levied if interest and late filing fees are paid to the Government’s credit.
  • Before the one-year period expires, the TDS / TCS return has been filed from the due date.

TDS for the purchase of immovable property

For the purchase of immovable property on which TDS applies, the return, together with the payment of TDS, must be made before the 30th of the following month. For example, TDS for property purchased in May must be deposited by 30 June.

CORPORATE AND PROFESSIONAL UPDATE OCT 15, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 15, 2016

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Direct Tax:-

Telecommunication expenses, insurance charges, personnel expenses, professional expenses, branch office expenses and other expenses incurred in foreign exchange – exclusion from the export turnover for the purpose of computing deduction under Section 10B – Held that – In the instant case, the order for software and hardware are placed separately, though in the same order sale of hardware cannot be a part of software exported by the assessee -.sale of hardware cannot be a part of export turnover(M/s. Subex Limited Versus The Deputy Commissioner of Income Tax, Circle 12 (3) , Bangalore)

Senior citizens do not have to pay advance tax on salary and interest income.

CBDT has instructed the income tax department to expedite cases of TDS mismatch and reduce taxpayers grievances in this regard.

Return of income filed in response to notice u/s 148 – that levy of interest u/s 234C is an automatic and the interpretation of charging of interest u/s.234C cannot be restricted to the tax due on Returned income as referred u/s 139(1) – Tri – Income Tax(Sree Meenakshi Reltors Versus The Income Tax Officer, Ward II (3) , Coimbatore)

 

IT: Transaction of shares – nature of income – business income or capital gain – magnitude of transactions carried out by the assessee in our view should not be very material in coming to the conclusion that income in question is income from business – Shree Padmasagar Exports Pvt. Ltd. Vs CIT, Cir-5, Kol (2016 (10) TMI 320 – ITAT Kolkata)

IT: Validity of reopening of assessment – Revenue in the instant case has come to the conclusive finding which attained finality that the transactions of purchase of shares are sham and bogus transactions camouflaged with an intention to evade taxes -Ratnakar M. Pujari Vs ITO, W-25(3)(3), Mumbai (2016 (10) TMI 316 – ITAT Mumbai)

 

Indirect Tax:-

Delhi high court seeks Delhi Govt and centre to reply on restaurants charging excess VAT, service tax as they are charging entire amount of the bill.

ST: Suo motu adjustment of excess payment of service tax made in October 2008 with subsequent service liability – procedural violation – demand of service tax of the said amount is not sustainable – ONGC Ltd. Vs CCEC&ST, Surat-II (2016 (10) TMI 307 – CESTAT Ahmedabad)

High Court in the below case held that no VAT liability can be imposed on providing cleaning services where The use of pesticides and chemicals was wholly incidental. There was no intention of sale of goods from the assessee to the company – NO transfer of property in goods involved.( State of Gujarat Versus Bharat Pest Control)

 

No tax can be levied on entry of goods into local areas in terms of the impugned provisions over the transactions made on e-commerce portals for personal use or consumption of individual consumer. – HC – VAT and Sales Tax.(Instakart Services Private Limited, WS Retail Services Private Limited Versus The State of Bihar, The Commissioner-cum-Principal Secretary, Commercial Taxes Department, The Deputy Commissioner of Commercial Taxes)

FAQ on Company Law:

Query: Whether pension advisor is exempted from obtaining registration under IA Regulations?

Answer: The PFRDA Act envisages registration of pension Advisors by PFRDA. Such Pension Advisors will be registered and regulated by PFRDA. If such advisors advice on other financial products, then they may be subjected to regulation under IA Regulations for their conduct relating to advice of financial products other than pension products.

Query: Whether insurance agent or insurance broker is exempted from obtaining registration under Investment Adviser Regulations?

Answer: Insurance Agents or Insurance Brokers registered with IRDA who provide advice in various insurance products across manufacturers shall be regulated by IRDA only. If such Insurance Agents or Insurance Brokers expand their activities to include investment advice on other financial products, then they may be registered and regulated under IA Regulations for such other financial products other than insurance products.


ICAI Updates:-

ICAI has made an announcement regarding clarification in respect of MFE-2016-17 dated on 06/10/2016.(Click here to view)

Delhi high court held that a Chartered Accountant while doing concurrent audit is expected to check the transactions falling within the scope of audit in depth. He is liable to face the charge of professional misconduct under clause 7 of the first schedule of the CA Act, 1949.

GST update

The Commerce Ministry has suggested to its finance counterpart that the exemptions given to exporters should continue under the new GST Law.

Key Dates:

Advance information for 2nd fortnight of Oct of functions with booking cost more than rs 1 lakh in Banquet halls, hotels etc. in Delhi-12/010/2016

Payment of DVAT TDS for the month of September-15/10/2016

Form 27EQ (TCS return) by all deductor-15/10/2016

Issue of TDS Certificate in case of payment/credit made in the month of august for purchase of property u/s 194IA-15/10/2016

Statement by bank in Form no. 15CC in respect of foreign remmitence during the quarter-15/10/2016

E-Payment of PF for the month of September-15/10/2016

Today (15.10.2016) is the due date to file TCS returns by all collectors for Sep quarter & for e-payment of PF for the month of Sep, 2016.

Monday (17.10.2016) is the due date to file income tax return of companies /firms etc.  where audit is required for the F.Y.  2015-16.

A lot of people are afraid to say what they want. That’s why they don’t get what they want.

When  you  are  in  the light, everything follows  you, But when  you  enter  into   the dark, even your own shadow doesn’t  follow  you.

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com  E: info@carajput.com T: 011-233-4-3333, 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, Etc for resolving their doubts or for clarifications. Continue reading

CORPORATE AND PROFESSIONAL UPDATE OCT 14, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 14, 2016

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Direct Tax:-

High Court in the below citied case held that Statement of 22-year-old partner should be considered in search if he is actively involved in business of firm.( Classy the Antique Disigned Furniture v. Deputy Commissioner of Income-tax, Central Circle-2, Kozhikade.)

Bombay High Court in the below citied case held that Income Escaping Reassessment will be void Void if Reasons are not supplied to the assessee- (CIT (Large Tax Payer Unit), Mumbai IDBI Ltd.)

IT: TDS u/s 192 or 194J – merely because doctors are subject to the payment of PF or other retirement benefit TDS u/s 194J is not deductible – Sir Hurkisondas Nurrotumdas Hospital & Research Centre Vs DCIT (TDS)-3 (2), Mumbai (2016 (10) TMI 432 – ITAT Mumbai)

IT: No TDS liability u/s 194-I on lump sum lease premium or one-time upfront lease charges which are not adjustable against periodic rent paid or payable for acquisition of long-term leasehold rights over land – CBDT Circular No. 35 of 2016, dt.13 OCT 2016.

CBDT restricts acceptance of contributions by electoral trust by amending Rule 17C to provide that   (a)  from an individual who is not a citizen of India (b) from any electoral trust registered u/s 25 of the Co Act.

Indirect Tax:-

CESTAT denies CENVAT Credit on capital goods received in FY when final product (asbestos cement sheet) was chargeable to Nil rate of excise duty; Notes that assessee claimed credit i.r.o. capital goods and services upon obtaining Central Excise Registration consequent to final product becoming exigible to 18% duty. [TS-409-CESTAT-2016-EXC]

The government has doubled the limit of excise duty evasion for arrest and prosecution of accused to Rs 2 crore and also asked officials not to resort to penal provision in cases of technical nature.

ST: Levy of service tax – security services – sovereign functions – After choosing one particular remedy the plaintiff cannot avail the other remedy as well in respect of the same relief founded on same cause of action – State of Rajasthan Vs Union of India & Others (2016 (10) TMI 462 – Supreme Court)

Indirect Tax collections up to September, 2016 show an increase of 25.9% over the net Indirect Tax collections for the corresponding period last year(2015-16)

Bombay HC grants interest on delayed CENVAT Credit refunds u/s 11BB of Central Excise Act; Notes that original refund application was initially rejected by Revenue on merits and not on basis of incomplete application. [TS-410-HC-2016(BOM)-EXC]

GST Updates:

GST: Portal of GST Registration would be open for the existing taxpayer from Nov’ 2016 – GSTN Chairman

GST law to be passed in winter session of parliament commencing from 16 Nov 16 and ending on 16 Dec 16.

Under GST amount paid by assessee is used first for self assessment tax and interest of earlier periods, then current period & then other amounts e.g. demand.

Under GST normal & compounding taxpayer to file annual return. Not to be filed by casual / Non-resident taxpayers, ISDs & persons liable to deduct TDS.

MCA Updates:

The e-Form INC-29 (Integrated Incorporation Form) will no longer be available on the Ministry’s portal and stakeholders will not be able to file any previously downloaded versions from 1st November, 2016. The e-Form INC-29 (Integrated Incorporation Form) will be withdrawn w.e.f. 1st November, 2016.

Only Forms INC-32 i.e. SPICE (Simplified Proforma for Incorporating Company electronically), INC-2 (One Person Company), or INC-7 (Incorporation of Company) are applicable for incorporation of Company.

MCA has notified that e-Form INC-29 (Integrated Incorporation Form) will be withdrawn w.e.f. 1 .11. 2016.

MCA revised Forms 23AC XBRL,23ACA XBRL & AOC-4 XBRL,w.e.f. 5.10.16,& Forms MGT-15, FC-3, INC-4, MGT-14, 23C,23D,A-XBRL,I-XBRL w.e.f. 8.10.16.

SEBI Update :

SEBI in it’s circular stated that exclusively listed co (ELCs) will be required either raise capital for listing or exit from the dissemination board.

The special investigation team (SIT) on black money has asked the SEBI to furnish the details of P-Note data for black money investigation.

OTHER UPDATE :

Bank of Baroda, invites proposal (RFPs) for appointment of concurrent auditors for branches for south Gujarat zone (Baroda) Last Date : 07.11.2016.

Ministry of labour and employment invites comments on increasing limit for ESI coverage from INR 15,000 to INR 21,000.

ICAI request members to improve annual ROC filing compliance to promote high standard of integrity and professionalism it is an essential part of the professional duty of the Chartered Accountants.

Key Dates:

Payment of DVAT TDS for the month of September-15/10/2016

Form 27EQ (TCS return) by all deductor-15/10/2016

Issue of TDS Certificate in case of payment/credit made in the month of august for purchase of property u/s 194IA-15/10/2016

Statement by bank in Form no. 15CC in respect of foreign remmitence during the quarter-15/10/2016

E-Payment of PF for the month of September-15/10/2016

Your mind is a magnet, thoughts attract. If you always think of blessings, you attract more blessings. If you always think of problems, you attract more problems.

Your problem isn’t the problem. Your reaction is the problem.

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com  E: info@carajput.com T: 011-233-4-3333, 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. Continue reading

How will Tax Structure Look Like After Implementation of Goods and Services Tax?

How will Tax Structure Look Like After Implementation of Goods and Services Tax?

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GST Council approves four tier GST rates @ 5% (Food Items), 12% & 18% (Standard) & 28% (Aerated drinks, Pan Masala, Tobacco & Luxury Items). GST rate for Gold to be decided later.

The Goods and services tax is a new regime in the indirect taxation in India. This was basically introduced mainly with the intention of removing the cascading effect that is the effect of paying taxes on taxes in India. The prevailing indirect taxes which are VAT, CST, service tax, central excise will all vanish once the GST comes into force. It is proposed that GST would come into force from 1st of April,2017.

This new GST would open the doors of theIndian market to many foreign investors who are willing to trade in India. Thus the trade barriers which are prevailing now due to the complications of Indian indirect taxation regime will be removed by GST. On the darker side, GST would also bring up some challenges to Indian businesses as there would be an ease of entry into Indian market thus increasing competition. But however, the business persons in India are still happy with GST because they no longer have to face the complications which prevail right now. Especially for service-oriented industries, it is no less than a boon.

In order to appreciate the provisions of GST, we need to have an overlook over the present tax structure. By doing so, we can have a comparative view. That would be more convincing. Here we go!

Present tax structure

Presently both state and the central governments are involved in imposing and collecting of taxes under various entries of the constitution. A detailed analysis is given below:

  • Service tax

Service tax is collected by the union government for the taxable services which are provided in the taxable territory ( thewhole of India except Jammu and Kashmir). The rates are differential based on the service provided.

  • Central Sales Tax ( CST)

It is collected by the state where the sale has been made. Only interstate sales come under CST. Local sales are left under State VAT.

  • State VAT

The sales or purchases which are affected within the state are subject to state VAT. They are collected by respective state governments.

  • Central excise

This is collected by the union government. It is collected by the manufacturers producing goods and is collected when the manufactured goods are removed from the premises.

  • State excise

This is collected by the state government on the alcoholic production.

Now, that was an overview of the present tax structure. Let us now zoom into the proposed GST structure. Read on!

The proposed GST structure

There would be 3 types of Tax in the proposed GST regime:

  • Central Goods and Services Tax( CGST)

The sale of goods and services between 2 different states come under this. It is levied and collected by the central government.

  • State Goods and Services Tax ( SGST)

The local sales happening in the state are covered here. It is imposed and collected by the state government.

  • Integrated Goods and Services Tax ( IGST)

Other residual sales are covered under this head. This is again collected by the central government.

The list of central taxes which are going to be subsumed in GST is given below for better insight:

  • Additional excise duty
  • Service tax
  • Central excise
  • Excise duty which is presently levied under Medicinal and toiletries preparation act
  • Central Sales tax
  • Cesses

Similarly, the state taxes or levies which are going to be subsumed in GST are:

  • Luxury tax
  • State VAT
  • Entry tax
  • Entertainment tax
  • State cessesand surcharges
  • Taxes on betting, gambling and lotteries

GST in relation to certain specific products

Though GST is supposed to be the unanimous tax which promises uniformity in taxes, the GST treats certain products differentially. These products have a separate provision in the GST regime. Highlights of these provisions are summarized below:

  • The manufacturing of alcoholic beverages is outside the ambit of GST. Thus alcoholic beverages will have no ruling sections and would continue to be levied by the state excise act and collected by the respective state government.
  • Also, the tobacco and tobacco related products also are not covered under GST. They would continue to be charged by the central excise by the central government.
  • Imposing GST on the petroleum products is kept at a halt as of now. It would be included on a later date when the GST council deems it necessary. Till then, the central government would continue to collect taxes on petroleum products. The petroleum products are inclusive of the following:
  • Petrol
  • Diesel
  • Natural gas
  • Aviation turbine fuel

The set-off and adjustment credit

As it is already mentioned, the main intention of GST is to remove the cascading effect of taxes. The double taxation will thus be removed by GST. Therefore, it is crucial that some set-off and adjustment credits need to be given when thetax is paid on both services and goods which are received to be set off against the liability which is to be paid when the goods are sold.

The 3 types of GST will have set off provisions like:

  • SGST can be set off against any surplus arising from IGST.
  • CGST can be set off against SGST and surplus from IGST.
  • IGST can be set off against SGST and CGST in the same sequence.

Exemption limits and the GST rate

The exemption limits and the GST rates are yet to be finalized by the GST council. However, it is estimated that the exemption limit would be INR 10 lacs. In layman terms, businesses which do not cross the turnover of 10 lacs are given exemptions under GST.

The rate of GST will have apositive impact on themajority of products like electronic goods and consumer goods and a negative impact on a few. The rate is estimated to be fixed between 18% and 20%. The concessional rate would be around 12% and the rate fir precious metals would be 2% to 6%.

GST registration

All the businesses indulged in thesale of goods and services are required to get themselves registered under GST. The registration has to be obtained based on states and not India as a whole. As the E- filing is in practice now obtaining GST registration is mandatory. The GST council has announced that the registration process is kept very simple and there is ease of operation.

Bottom line of GST

Thus as a whole, we can come to a conclusion that GST is going to reduce the price of many products and services. Moreover, due to ease of entry and ease of operations, the Indian market will be exposed to the international market. This can also pave way for investors to invest in India globally. The complications that prevailed in the indirect tax regime are removed by GST. Especially the service tax which is considered very complicated and confusing for many persons, GST is a boon. Besides the consumers too can benefit from theintroduction of GST as the frauds and errors are bound to decrease. There is no scope for escapism too to the dealers. Thus, bills will all be made white and no scope for theblack money. Everything would be billed and with a uniform tax rate. Thanks to the GST council and GST proposing committee!

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com  E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

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. Continue reading

A Comparative Outlook Of Goods And Services Tax

A Comparative Outlook Of Goods And Services Tax

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The GST is a new regime in the world of indirect taxes. It is a tax on the sale of goods and services and a uniform rate is applied to all kinds of goods and services.  It is proposed to be brought into force from 1st of April 2017. All the complications which people faced while filing their indirect tax returns are said to be removed by GST. Besides, introduction of GST also paves way for the foreign investors to invest in India. Further,it is expected that GST will ease the operations and provide ease of entry for global dealers.

To have an insight of GST knowing the objectives is important. The basic objectives of GST are listed below:

  • The whole of Indian market must be integrated as one global village having a uniform rate
  • The working efficiency of the indirect taxes department must be increased. The formalities are made much easier with the introduction of GST.
  • The tax incidence must have an impact only on the domestic consumption and not on industrial consumption.
  • To reduce tax evasion by making it compulsory to get GST registration for all businesses carrying on business in sale of goods and services.
  • To remove the cascading effect of taxes. In present,we tend to pay taxes on taxes leading to double taxation. This problem is solved by GST.
  • The cooperative federalism would be built between the central and the state governments.
  • The existing confusions about the indirect tax rates especially the service tax and State VAT ought to be solved once GST is in force.

The GST model

The GST council has decided that the taxes would be collected by both central and state governments. There are 3 wings of GST:

  • Central Goods and Services Tax (CGST) which is imposed and collected by the central government on interstate sales.
  • State Goods and Services Tax (SGST) which is levied and duly collected by the respective state governments on local sales.
  • Integrated Goods and Services Tax (IGST) which covers those which are not covered in the above two and collected by the central government.

The principle of set off and input credit

The set off benefit is made available to the people who would have purchased goods with the intention of sales. Thus they can set off the GST which is paid. But there are specific provisions regarding the set off. Some basic rules being:

  • The taxes which are paid against the CGST should be taken as the credit when the same goods are being purchased and sold.
  • The SGST cannot be set off with the CGST. It can be set off against the IGST if there is any surplus available.
  • Cross set off between the CGST and SGST is strictly prohibited by the GST law.
  • But on purchase of capital goods, the set off can be made between the CGST and SGST. Thus the government is encouraging the purchase and sale of capital goods.

Few exemptions to be provided by the GST as suggested by the GST council

In the prevailing indirect laws like service tax, there is a mega exemption list which exempts few kinds of services from the levy of service tax. Similarly, the GST council has laid down that GST also should be providing some exemptions to certain range of goods and services. A list of such goods and services proposed to be exempted from levy of GST are:

  1. All government public services inclusive of the following:-
  • Government schools and colleges
  • Defense department
  • Police departments
  • Intelligence and verification departments

On the other hand, the following services are not going to have exemptions:

  • Banks and insurance companies
  • Post and telegraph
  • Railway department
  • Commercial departments
  • Education and health departments
  1. Any sale of food articles which are unprocessed and which are covered under the public distribution system.
  2. Health and education services which are provided by the non-governmental establishments.
  3. Any transactions of service contract between an employee and his employer for the service provided as well as service received.
  4. GST exempts goods including alcoholic products, tobacco products and emission fuels.
  5. Also petroleum products and natural gas are outside the ambit of GST and they would continue to be levied and collected by the central government.

The taxes to be subsumed by GST and its impact

The central levies which will be subsumed by GST once it comes into force are listed below which helps us to have a comparative analysis:

  • Central excise
  • Service tax
  • Additional customs duty
  • All cesses and surcharges

These taxes would no longer continue to apply. They shall cease to be collected from the central government. Thus the service industries which face a lot of confusions and dilemmas while they undertake filing of service tax returns will be benefitted by GST. The excise and customs too will have fewer complications now and the customs clearance offices will be benefitted to a great extent by GST.

State levies which would be subsumed in GST are:

  • State VAT
  • Entry tax
  • Luxury tax
  • Entertainment tax

There are differential rates in the state VAT and people face difficulties in determining the rate. GST would fix that problem. Also, the sky scrapping rates of entry tax and luxury taxes are washed away benefiting mostly the customers.

Thus the introduction of GST will lower the prices of many products and services. There will be a uniform rate applicable to the whole of India. All the confusions about the differential rates would thus be removed by GST. The tax authorities too are benefitted as they don’t have to crack their heads searching for what rate is applicable to what kind of product. The collection of revenue would be regular to the government as the GST would be made compulsory to all indulged in sale of goods and services. At the end of the day, except for few industries or categories, majority of the tax stake holders are going to be benefitted by the GST. Whole of India is looking forward to the introduction of GST with their fingers crossed!

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com  E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

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.

CORPORATE AND PROFESSIONAL UPDATE OCT 13, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 13, 2016 

Untitled37ADirect Tax:-

ITAT Ahemdabad in the below mention case confirmed the addition u/s 68 on unexplained share capital and premium received as assessee has been able to just prove the identity of the company but unable to prove the genuineness & creditworthiness the parties.( ACIT, Ahmedabad Vs. Nakoda Fashion Pvt. Ltd.)

ITAT Kolkata in the below mwntioned case held that the assessee under consideration has one truck only and the same was being used for purpose of business, hence depreciation should be allowed to the assessee – since the truck are not used for renting, provisions of presumptive income U/s 44AE not applicable – [M/s Northern Services & Supply Co. (P) Ltd. Vs. DCIT, Jalpaiguri]

 IT: Assessee is required to prove the source of huge Cash Deposit in Bank even if he has declared his income u/s 44AF – Naresh Kumar Vs CIT, Patiala (2016 (10) TMI 252 – Punjab & Haryana High Court).

IT: Levy of interest u/s 234C is an automatic, it cannot be restricted to the tax due on Returned income as referred u/s 139(1) – Sree Meenakshi Reltors Vs ITO, W-II (3), Coimbatore (2016 (10) TMI 215 – ITAT Chennai)

IT: TDS u/s 195 – AMC contract – non-resident payee as no PE in India therefore his business income not taxable in India – No TDS liability – ACIT, Cir-12(1), New Delhi Vs HCL Comnet Ltd. (2016 (10) TMI 175 – ITAT Delhi)

IT: Reference to DVO – AO strongly disputes the correctness sales consideration and must be allowed free hand to complete the assessment as per law – Kanaiyalal Dhansukhlal Sopariwala Vs DVO, Valuation Cell And 1 (2016 (10) TMI 407 – Gujarat High Court)

Indirect Tax:-

Madras High Court in the below case held that encashment of bank guarantee doesn’t amount to payment of duty:(Nizamabad Agro (P.) Ltd. v.Assistant Commissioner of Customs –EODC)

period of limitation where refund claim was filed electronically within prescribed time – They later submitted in physical form all these documents with Jurisdictional officer – refund cannot be rejected on the ground of time bar – Tri – Service Tax(M/s Boston Scientific India Private Limited Versus CST, Delhi-IV, Gurgaon)

ST: Refund claim filed electronically within prescribed time later submitted in physical form – refund cannot be rejected on the ground of time bar – M/s Boston Scientific India Private Limited Vs CST, Delhi-IV, Gurgaon (2016 (10) TMI 281 – CESTAT Chandigarh)

VAT & ST: Principle of lifting of the corporate veil – recovery of duty / tax from the director cannot be made merely on the basis of allegation – The test of fraudulent conduct not satisfied so as to attract the principle of lifting of corporate veil – Shri Harbhajan Singh Vs C.T.T., U.P. Lucknow (2016 (10) TMI 260 – Allahabad High Court)

DVAT: Circular No.15 of 2016-17 relating to disposal of refunds in the stipulated time stands withdrawn and shall be considered void ab initio – Circular No.16/2016-17.

ST: Service for loading goods by the contractor on weight basis – the activity of loading/unloading cannot be termed as supply of Manpower Recruitment Agency Service – M/s Radiant Textiles Ltd. Versus CCE, Chandigarh-II (2016 (10) TMI 242 – CESTAT Chandigarh)

DVAT refunds to be disposed in the stipulated time period – Circular No.15/2016-2017, dt.03.10.2016

ST: Classification of service – credit rating activity – the advisory service provided by the appellant does not fall under the category of Management Consultancy Service however it is correctly classifiable under Banking and Other Financial Services – M/s CRISIL Ltd. Versus Commissioner of Central Excise, Thane (2016 (10) TMI 390 – CESTAT Mumbai)

ED: Area based exemption- if the exemption is extended to one unit the change in ownership would not jeopardize the admissibility of exemption – M/s. Khurana Oleo Chemicals Vs CCE, Chandigarh (2016 (10) TMI 382 – CESTAT Chandigarh)

VAT & ST: Input tax credit – whether the Hon ble Tribunal was justified in rejecting the claim of the assessee for the Input Tax Credit even though such purchases are not disqualified as per Schedule- E attached to the Haryana VAT Act 2003 – Held NO -Modern Dairies Ltd. Vs State of Haryana and another (2016 (10) TMI 374 – Punjab & Haryana High Court)

MCA UPDATE:

After taking the bold initiative by coming up with SPICe, now MCA has notified that e-Form INC-29 (Integrated Incorporation Form) will be withdrawn w.e.f. 1st November, 2016.

Accordingly, e-Form INC-29 will no longer be available on the MCA21 portal and stakeholders will not be able to file any previously downloaded versions from this date. Stakeholders are requested to plan accordingly and use SPICe (Simplified Proforma for Incorporating Company electronically), INC-2 (One Person Company), or INC-7 (Incorporation of Company) e-Forms, as applicable for incorporation of Companies under the Companies Act, 2013. MCA had recently released SPICe forms where the entire process of incorporation was made electronic.

SEBI UPDATE:

SEBI in its  Circular stated that exclusively listed companies (ELCs) on the Dissemination Board will be required to exercise one of the two options — either raise capital for listing on nation-wide stock exchanges or exit from the dissemination board.

Key Dates:

Payment of DVAT TDS for the month of September-15/10/2016

Form 27EQ (TCS return) by all deductor-15/10/2016

Issue of TDS Certificate in case of payment/credit made in the month of august for purchase of property u/s 194IA-15/10/2016

Statement by bank in Form no. 15CC in respect of foreign remmitence during the quarter-15/10/2016

E-Payment of PF for the month of September-15/10/2016

Acceptance is a great quality that we need to possess because life never accepts how we  are  but we need to accept how life is.

Always have a successful exit than a favorable entrance. Because, what matters is not being clapped when we arrive but being remembered when we leave .

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com  E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

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.

CORPORATE AND PROFESSIONAL UPDATE OCT 12, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 12, 2016

Image result for CORPORATE AND PROFESSIONAL UPDATE

Direct Tax:-

CBDT has issued the Income Tax (24th Amendment) Rules, 2016 vide Notification No. 89/2016 dated 4/10/2016.These rules are regarding expenditure for obtaining right to use spectrum for telecommunication services.

CBDT has issued the Income Tax (25th  Amendment) Rules, 2016 vide Notification No. 90/2016 dated 5/10/2016.Form No. 68 notified to get immunity from penalty for underreporting and misreporting of income.CBDT also insert the rule 129 and Form no. 68.

CBDT has issued the Income Tax (26th  Amendment) Rules, 2016 vide Notification No. 91/2016 dated 06/10/2016.CBDT notified rules for allowability of Spectrum license fee paid by TeleCos.

IT: Transaction of shares – nature of income – business income or capital gain – magnitude of transactions carried out by the assessee in our view should not be very material in coming to the conclusion that income in question is income from business – Shree Padmasagar Exports Pvt. Ltd. Vs CIT, Cir-5, Kol (2016 (10) TMI 320 – ITAT Kolkata)

IT: Validity of reopening of assessment – Revenue in the instant case has come to the conclusive finding which attained finality that the transactions of purchase of shares are sham and bogus transactions camouflaged with an intention to evade taxes – Ratnakar M. Pujari Vs ITO, W-25(3)(3), Mumbai (2016 (10) TMI 316 – ITAT Mumbai)

 Indirect Tax:-

Principle of lifting of the corporate veil – recovery of duty / tax from the director cannot be made merely on the basis of allegation . The test of fraudulent conduct not satisfied so as to attract the principle of lifting of corporate veil.High Court -VAT and Sales Tax.( Shri Harbhajan Singh Versus The Commissioner of Trade Tax, U.P. Lucknow)

 The petitioner cannot seek for cross examination of the officer who gave the report – the contention raised by the petitioner that they have to be permitted to cross examine the Chemical Examiner of the Central Laboratory is a misconceived plea – High Court – Customs-(M/s. Visal Lubetech Corporation, P. Karthikeyan Versus The Additional Commissioner of Customs)

ST: Suo motu adjustment of excess payment of service tax made in October 2008 with subsequent service liability – procedural violation – demand of service tax of the said amount is not sustainable – ONGC Ltd. Vs CCEC&ST, Surat-II (2016 (10) TMI 307 – CESTAT Ahmedabad)

FAQ on Company Law:

Query: One of the director of our client company died in the car accident who was one director of only TWO Directors Company. Kindly tell us the procedure to fill the casual vacancy so arose as immediately as possible as the company as a whole is suffering due to this.

Answer: As per Section -161 of the Companies Act 2013, the articles of company confer on its Board of Directors the power to appoint any person, other than a person who fails to get appointed as a director in general meeting, as an additional director at any time who shall hold office upto the date of AGM or the last date on which AGM should have been held, whichever is earlier.

So, additional director can be appointed by the remaining director of the company  who shall hold office upto the date of AGM  & thus is required to be regularized in the forthcoming AGM of the company.

Query: Whether the members of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India are exempted from obtaining registration under Investment Adviser Regulations?

Answer: Members of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India who provide investment advice to their clients incidental to their professional services are exempted from obtaining registration under IA Regulations. For example :- An advice by a professional CA as a tax consultant to his tax client for investing in ELSS in the course of tax planning will be treated as incidental to his profession as a tax consultant. However, if they are engaged in providing investment advisory services in securities as an activity or business to clients or investors which is not incidental to their main activity then they are required to get registration as an investment adviser.

ICAI Updates:-

The Council, at its 359th meeting, held on September 16-17, 2016, has decided to withdraw the Guidance Notes on Availability of Revaluation Reserve for Issue of Bonus Shares[GN(A) 9 (Issued 1994)] and Guidance Notes on Accounting for Fringe Benefits Tax[GN(A) 20 (Issued 2005)] dated on 07/10/2016.

Application Guide on the Provisions of Schedule II to the Companies Act, 2013 is no longer effective as the Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013 has been issued.

SEBI UPDATE:

SEBI proposed a Consultative Paper titled ‘Corporate Governance Issues in Compensation Agreements’ to review the disclosure requirements under SEBI (LODR) Regulations, 2015.

ED: 10 OCT 2016 is the Last date for filing of Excise return in form ER-1 for the m/o SEP’ 2016.

GST update:

Under GST Reverse charge provisions will be applicable in case of both goods & services in case of specified supplies and assessees.

Under GST In case of advance payment received from purchaser, pay tax proportionately and not on total amount of supplies to be made.

Under GST registration certificate issued to casual or non-resident dealer is valid for 90 days. Extension by another 90 days, on request.

 Key Dates:

ER-1 return for non ssi assessee for the month of September-10/10/2016

ER-2 return for EOUs for month of September-10/10/2016

Submission of ER-3 return by SSi unit for September quarter-10/10/2016

An error becomes a mistake only when we refuse to accept and correct it.

May your troubles burst away like the fireworks and your happiness be multiple ten times, Happy Dussehra to you and your Family.”

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

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. Continue reading

FAQ on GST

FAQ on GST 

Image result for FAQ on GST Issued by CBEC

Time of Supply

Q . What is time of supply?

Ans. The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The MGL provides separate time of supply for goods and services.

Q . When does the liability to charge GST arise in respect of supply of goods?

Ans. Section 12 of the MGL provides for time of supply of goods. The time of supply of goods shall be the earliest of the following namely,

(i)  the date on which the goods are removed by the supplier, where the supply of goods require removal; or

(ii)  the date on which the goods are made available where the supply does not require removal; or

(iii)  the date on which the supplier issues invoices with respect to the supply where the above two situations do not apply; or

(iv)  the date on which the recipient shows the receipt of the goods in his books of accounts.

Q  What is time of supply of continuous supply of goods?

Ans. The time of supply of continuous supply of goods is;

  1. a) where successive statements of accounts or successive payments are involved, the date of expiry of the period to which such successive statements of accounts or successive payments relate.
  2. b) where there are no successive statements of account or successive payments involved, the date of issue of the invoice or the date of receipt of payment whichever is earlier.

Q . What is time of supply of goods sent on approval basis?

Ans. In case of supply on approval basis, the time of supply shall be the time at which it is known whether a supply will take place or six months from the date of supply, whichever is earlier.

Q . Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?

Ans. There is a residual entry in Section 12(7) as well as 13 (7) which say that if periodical return has to be filed, then the due date of filing of such periodical return shall be the time of supply. In other cases, it will be the date on which the CGST/SGST/IGST is paid.

Q . When does the liability to pay GST arise in respect of supply of services?

Ans. Unlike goods, in the case of services, the time of supply is determined by the fact whether the invoice for supply of services has been issued within the prescribed period or beyond such prescribed period.

Q . What is time of supply of service when invoice is not issued within prescribed period?

Ans. The time of supply of service in such cases shall be the earliest of the following:

(i)  date completion of the provision of service; or

(ii)  the date of receipt of payment.

Q . What is time of supply of service when invoice is issued within prescribed period?

Ans. The time of supply of service in such cases shall be the earliest of the following:

(i)  date of issue of invoice; or

(ii)  the date of receipt of payment.

Q . What is time of supply?

Ans. The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The MGL provides separate time of supply for goods and services.

Q . When does the liability to charge GST arise in respect of supply of goods?

Ans. Section 12 of the MGL provides for time of supply of goods. The time of supply of goods shall be the earliest of the following namely,

(i)  the date on which the goods are removed by the supplier, where the supply of goods require removal; or

(ii)  the date on which the goods are made available where the supply does not require removal; or

(iii)  the date on which the supplier issues invoices with respect to the supply where the above two situations do not apply; or

(iv)  the date on which the recipient shows the receipt of the goods in his books of accounts.

Q . What is time of supply of continuous supply of goods?

Ans. The time of supply of continuous supply of goods is;

  1. a) where successive statements of accounts or successive payments are involved, the date of expiry of the period to which such successive statements of accounts or successive payments relate.
  2. b) where there are no successive statements of account or successive payments involved, the date of issue of the invoice or the date of receipt of payment whichever is earlier.

Q . What is time of supply of goods sent on approval basis?

Ans. In case of supply on approval basis, the time of supply shall be the time at which it is known whether a supply will take place or six months from the date of supply, whichever is earlier.

Q . Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?

Ans. There is a residual entry in Section 12(7) as well as 13 (7) which say that if periodical return has to be filed, then the due date of filing of such periodical return shall be the time of supply. In other cases, it will be the date on which the CGST/SGST/IGST is paid.

Q . When does the liability to pay GST arise in respect of supply of services?

Ans. Unlike goods, in the case of services, the time of supply is determined by the fact whether the invoice for supply of services has been issued within the prescribed period or beyond such prescribed period.

Q . What is time of supp

ly of service when invoice is not issued within prescribed period?

Ans. The time of supply of service in such cases shall be the earliest of the following:

(i)  date completion of the provision of service; or

(ii)  the date of receipt of payment.

Q . What is time of supply of service when invoice is issued within prescribed period?

Ans. The time of supply of service in such cases shall be the earliest of the following:

(i)  date of issue of invoice; or

(ii)  the date of receipt of payment.

Input Tax Credit

Q .What is input tax?

Ans. “Input tax” has been defined in section 2 (57) of the MGL and section 2 (1) (d) of the IGST Act. Input tax in relation to a taxable person, means the {IGST and CGST} in respect of CGST Act and {IGST and SGST} in respect of SGST Act, charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or furtherance of his business and includes the tax payable under sub-section (3) of section 7.

Under the IGST Act, input tax is defined as IGST, CGST or SGST charged on any supply of goods and / or services.

Q .What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?

Ans. It implies that input tax consists of IGST & CGST in CGST Act and IGST & SGST in SGST Act. In the IGST Act, input tax consists of all three taxes namely, IGST, CGST and SGST.

It further implies that credit of all three can be used for discharging IGST liability, whereas only credit of IGST & CGST can be taken in CGST Act and that of IGST & SGST can be taken under SGST Act. Further the credit of CGST & SGST cannot be cross-utilized.

Q .Can GST paid on reverse charge be considered as input tax?

Ans. Yes. The definition of input tax includes the tax payable under sub-section (3) of section 7 (ReverseCharge). The credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business.

Q .Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?

Ans. Yes, in terms of section 2(54), 2(55) & 2(20) of the MGL respectively. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one instalment.

Q .What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration? (Section 16(2))

Ans. He shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. It may be noted that the credit on pre-registration stock would not be admissible if the registration has not been obtained within a period of 30 days from the date on which he becomes liable to registration.

We look forward for your valuable comments. www.carajput.com

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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. Continue reading

MINISTRY OF CORPORATE AFFAIRS RESENT CHANGES

MINISTRY OF CORPORATE AFFAIRS RESENT CHANGES

Image result for MINISTRY OF CORPORATE AFFAIRS RECENT CHANGES

As a part of ease of doing business government has once again further eased up the process of incorporation of a company by introduction of SPICE. I could term it as easiest and fastest process all over the globe to incorporate a company where in one can incorporate company, forget days in hours.

Ministry of Corpoate Affairs has introduced SPICE (Simplified Proforma for incorporating Company electronically) w.e.f. 02.10.2016 in e-form INC-32.

Highlights of INC-32

1) This form can be filed even after approval of INC-1. This facility was not provided in INC-29.

2) Memorandum of Association has been provided in Electronic Mode INC-33.

3) Article of Association has been provided in Electronic Mode INC-34.

4) By new e-MOA & AOA, no need of signatures of subscribers. Instead of sign of subscribers DSC of Subscribers can be affixed on MOA & AOA.

5) By new e-MOA & AOA no need of signatures of witness. Instead of sign of witness DSC of witness can be affixed on MOA & AOA.

6) Information in the form has increased in comparison to eForm INC-29.

REVISION THE VERSION OF MCA FORMS

MCA has revised the version of following e-forms :

FORM NAMES PARTICULAR
Form MGT-15 Form for filing Report on Annual General Meeting
Form FC-3 Annual accounts along with the list of all principal places of business in India established by foreign company
Form INC-4 One Person Company- Change in Member/Nominee
Form MGT-14 Filing of Resolutions and agreements to the Registrar
Form 23C Form of application to the Central Government for appointment of cost auditor
Form 23D Information by cost auditor to Central Government
Form A-XBRL Form for filing XBRL document in respect of compliance report and other documents with the Central Government
Form I-XBRL Form for filing XBRL document in respect of cost audit report and other documents with the Central Government
Form 23AC XBRL Form for filing XBRL document in respect of balance sheet and other documents with the Registrar
Form 23ACA XBRL Form for filing XBRL document in respect of Profit and Loss account and other documents with the Registrar
Form AOC-4 XBRL Form for filing XBRL document in respect of financial statement and other documents with the Registrar

Stakeholders are advised to check the latest version before filing.

COSTING TAXONOMY

Costing taxonomy 2012 for filing Forms I-XBRL and A-XBRL along with business rules is available on XBRL portal w.e.f. 08 Oct 2016. Please visit the portal for latest validation tool and plan your filing accordingly.

MCA INVITING COMMENTS ON DRAFT REGULATION ON INSOLVENCY AND BANKRUPTCY CODE, 2016

The MCA has issued Notice inviting comments/ suggestions on the draft regulations relating to Insolvency and Bankruptcy Code, 2016 available on the website of MCA. MCA had set-up a working group consisting of practitioners and experts for making recommendations for drafting regulations for registration and regulation of insolvency professionals and insolvency professional agencies under the Code. MCA, on behalf of the Insolvency and Bankruptcy Board of India has invited comments/ suggestions which shall be submitted in the prescribed format available on the website of MCA latest by 28 Oct. 2016.

  MCA has revised the version of e-forms: Form MGT-15, Form FC-3, Form INC-4, Form MGT-14, Form 23C, Form 23D, Form A-XBRL, Form I-XBRL, Form 23AC XBRL, Form 23ACA XBRL and Form AOC-4 XBRL, Costing taxonomy 2012 for filing Forms I-XBRL and A-XBRL w.e.f.  08.10.2016.

  MCA has issued notice inviting comments/ suggestions on the draft regulations relating to insolvency and bankruptcy code, 2016 available on the website of MCA.

MCA has released Updated C&I Taxonomy 2016 for filing Annual Financial Statements in Form AOC-4 XBRL in respect of financial years commencing on or after 01.04.2014

MCA has issued Notice inviting comments/ suggestions on the draft regulations relating to Insolvency and Bankruptcy Code, 2016 available on the website of MCA.

MCA has revised the version of e-forms viz. MGT-15, FC-3, INC-4, MGT-14, 23C, 23D, A-XBRL, I-XBRL, 23AC XBRL, 23ACA XBRL, AOC-4 XBRL.

MCA has released Updated C&I Taxonomy 2016 for filing Annual Financial Statements in Form AOC-4 XBRL in respect of financial years commencing on or after 01.04.2014.

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

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.

Continue reading

CORPORATE AND PROFESSIONAL UPDATE OCT 5, 2016

Professional Update For the Day:

1

Direct Tax:-

CBDT notifies ICDS to be applicable w.e.f. AY 2017-18 for all assesses other than individual & HUF (who are not under audit u/s 44AB) following mercantile system of accountingfor the purposes of computation of income chargeable to income-tax under the head “Profits and gains of business or profession” or “Income from other sources”vide Notification No. 87/2016 dated 29/09/2016.(Click here to view)

CBDT has issued Income tax (23rd Amendments) Rules, 2016 vide Notification No. 88/2016 dated 29/09/2016.These Rules shall come in to force with effect from 1st April, 2017.(Click here to view)

CBEC has issued revised guidelines for arrest in relation to Service Tax offences punishable under the Finance Act, 1994 and Central Excise Act, 1944, Circular No. 201/11/2016-Service Tax dated. 30.09.2016.

Assessee could not get the accounts audited within time limit prescribed u/s 44AB and if  there is no mala fide reason for not obtaining the accounts audited in time than penalty u/s 271B should not be imposed – Gemorium Vs ITO W-5(1), Jaipur (ITAT Jaipur).

Indirect Tax:-

CBEC has issued a guidelines for arrest in relation to offences punishable under the Finance Act, 1994 and Central Excise Act, 1944 vide Circular No. 201/11/2016 dated 30/09/2016.(Click here to view)

CBEC has exempted the service tax on transportation  to educational institutions vide Notification No. 45/2016 dated 30/09/2016.(Click here to view)

Judgment of Delhi high court quashing rule 5A(2) of service tax rules, 1994 and holding service tax audits as invalid, has been stayed by supreme court; hence, for time being, service tax audits may continue.[SC of India vs. Mega Cabs (p.) Ltd].

 MCA UPDATE:

MCA has introduced SPICE (simplified proforma for incorporating Company electronically) w.e.f. 02.10.2016 in e-form INC-32.

Form INC-32, INC-33, INC-34 under simplified Performa for Incorporating Companies electronically are available as notified by Comp. (Fourth) Amendment Rules, 2014.

RBI UPDATE:

RBI has cuts the Repo rate by 25 bps now The *new Repo rate is 6.25%.* This will make the loan rate cheaper.

RBI issued a circular regarding Investment by foreign portfolio Investors (FPI) in government securities vide Circular No. 4/2016 dated 30/09/2016.

GST UPDATE:

Under GST Composition Scheme is not applicable if assessee makes Inter- state supplies or pays tax on Reverse Charge basis.

Under GST no need to file GST RFD-01 for refund of balance in electronic cash ledger. Same can be claimed through return forms GSTR-3, 4 & 7.

FAQ on GST issued by CBEC

Q 1. What is the taxable event under GST?

Ans. The taxable event under GST shall be the supply of goods and / or services made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as ‘supply’.

Q 2. What is the meaning of ‘Supply’?

Ans. The term ‘supply’ is wide in its import and includes all forms of supply of goods and / or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes import of service. The model GST law also provides for including certain transactions made without consideration within the scope of supply.

Q 3. What is a taxable supply?

Ans. A ‘taxable supply’ means a supply of goods and / or services which is chargeable to good and services tax under the GST Act.

Q 4. What are the necessary elements that constitute supply under MGL?

Ans. In order to constitute a ‘supply’, the following elements are required to be satisfied, i.e.-

(i)  supply of goods and / or services;

(ii)  supply is for a consideration;

(iii)  supply is made in the course or furtherance of business;

(iv)  supply is made in the taxable territory;

(v)  supply is a taxable supply; and

(vi)  Supply is made by a taxable person.

Q 5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?

Ans. Yes. Under certain circumstances such as importation of service (Section 3(1) (b)) or supplies made without consideration, specified under Schedule-I of MGL, where one or more ingredients specified in answer to question no. 4 are not satisfied, it shall still be treated as supply under GST Law

Q 6. Importation of Goods is conspicuous by its absence in Section 3. Why?

Ans. Importation of goods is dealt separately under the Customs Act, 1962, wherein IGST shall be levied as additional duty of customs in addition to basic customs duty.

Q 7. Are self-supplies taxable under GST?

Ans.Inter-state self-supplies such as stock transfers will be taxable as a taxable person has to take state wise registration in terms of Schedule 1(5). Such transactions have been made taxable even if there is no consideration. However, intra-state self-supplies are not taxable.

Q 8. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?

Ans. Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II (1). In some cases, possession may be transferred immediately but titled may be transferred at a future date like in case of sale on approval basis or hire purchase arrangement. Such transactions will also be termed as supply of goods.

Q 9. What do you mean by “supply made in the course or furtherance of business”?

Ans. No definition or test as to whether the activity is in the course or furtherance of business has been specified under the MGL. However, the following business test is normally applied to arrive at a conclusion whether a supply has been made in the course or furtherance of business:

Is the activity, a serious undertaking earnestly pursued?

Is the activity is pursued with reasonable or recognisable continuity?

Is the activity conducted in a regular manner based on sound and recognised business principles?

Is the activity predominantly concerned with the making of taxable supply for consideration/ profit motive?

The test may ensure that occasional supplies, even if made for consideration, will not be subjected to GST.

Q 10. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.

Ans. No, because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.

Q 11. A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?

Ans Yes. As per Schedule-I (1) business assets put to a private or non-business use without consideration will be treated as supply.

Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?

Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of ‘business’ in section 2(17) of MGL.

Key Dates:

Excise payment for Non SSI for the month of September by G.A.R.- 7 challan-06/10/2016

Service tax payment for company for the month of September by G.A.R.- 7 challan-06/10/2016

Service tax payment for Individuals/Proprietory/ Partnership Firms for the quarter ended by G.A.R.- 7 challan-06/10/2016

Submission of TCS forms (27C) received in sep to IT Commissioner- 07/10/2016

Payment of TDS/TCS challan No. 281-07/10/2016

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