Wednesday, 21 December 2016

Going Digital can cut your Taxes

Government has made its mind Reduce Existing Rate of Deemed Profit u/s 44AD from 8% to 6% in respect of amounts/receipts through banking channel/digital

As per latest CBDT Press Release dated 19-12-2016:

 Under the existing provisions of section 44AD of the Income-tax Act, 1961 (the Act), in case of certain assesses (i.e. an individual, HUF or a partnership firm other than LLP) carrying on any business (other than transportation, agency, brokerage and commission) and having a turnover of Rupees Two Crore or less, the profit is deemed to be 8% of the total turnover.


Tuesday, 8 November 2016

Goods and Service Tax Registration starts

Goods and Service Tax Network (GSTN) has provided the procedures for the transition to the GST for the existing taxpayers of VAT, Service Tax and Central Excise at the website www.gst.gov.in. The schedule of the enrolment activation drive for states is given in the table below. 




Thursday, 3 November 2016

Final GST rates declared by GST Council

A four tier GST tax structure of 5, 12, 18 and 28 per cent, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess, was decided by the GST Council today. 




Saturday, 1 October 2016

Frequently Asked Questions (FAQ) on GST by CBEC

Below is the text of Detailed FAQs on GST are released by CBEC, covering more than 500 questions in 24 topics. A must read on GST.



Foreword

With the 101st Constitution Amendment Act coming into force on 8th September, 2016 and notification of the GST Council on 15th September – the road to GST rollout is clear. Government is keen on introducing GST-the biggest indirect tax reform, with effect from 01 April
2017. One of the biggest challenges is to train the indirect tax officials of both Centre and State, as well as the trade on the concepts, processes and procedures of GST.

Friday, 16 September 2016

Maharashtra VAT increases to 13.5% and 6%

Maharashtra Notification Amends Schedule C, D, & E Enhance tax rate to 6% and 13.5% w.e.f. 17-9-2016
Notification No. VAT. 1516/CR-123/Taxation-1- Dated 16th September, 2016
In exercise of the powers conferred by sub-section (1) of section 9 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Government of Maharashtra hereby, with effect from the 17th September 2016 amends Schedule 'C', 'D' and 'E' appended to the said Act, as follows, namely :-

Wednesday, 14 September 2016

Advance Tax Liability for the A.Y. 2017-18 F.Y. 2016-2017

Advance Tax Liability for the A.Y. 2017-18

Advance Tax provisions has been amended by the Finance Act 2016 (No. 28 of 2016) which is effective from 01-06-2016 for Assessment Year 2017-18. Following are major amendments related to Advance Tax Liability for A. Y. 2017-18:
(a)  Section 211(1) is amended to provide that advance tax will be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current income by 15th June, 15thSeptember, 15th December and 15th March, respectively in case of all assesses. Earlier upto AY 2016-17 the assessee other than corporate assessee paid Advance Tax in three Installment. Now all assessee except assessee covered u/s 44AD is treated at par for Advance Tax provisions.
(b)  Assessees covered u/s 44AD are to pay advance tax of the whole amount in one instalment on or before the 15th March of the financial year consequent upon raising of the turnover limit from Rs.1 crore to Rs. 2 crore.
Based on above amendments the advance tax related provision under income tax law is as under:



Advance tax (Section 208, 209 & 211)
Advance tax is payable on all income during the financial year in every case where the amount of such tax payable by an assessee during that year is Rs. 10,000 or more. Following is chart showing Advance Tax Liability for the A.Y. 2017-18:
Advance Tax Liability for All Assessee (other than covered under section 44AD of the I.T. Act 1961)
Due DateInstallment Payable
 On or before 15th Jun, 2016 Not less than 15% of advance tax.
 On or before 15th  Sep, 2016 Not less than 45% of advance tax as reduced by the amount paid in the earlier installment.
 On or before 15Th Dec, 2016 Not less than 75% of advance tax as reduced by the amount paid in the earlier installments.
 On or before 15Th Mar, 2017 The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.
Advance Tax Liability for Assessee covered under section 44AD of the I.T. Act 1961
Due DateInstallment Payable
On or before 15th Jun, 2016
On or before 15th  Sep, 2016
On or before 15Th Dec, 2016
On or before 15Th Mar, 2017 The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.
Note:
  1. Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax.
  2. Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax paid during financial year ending on that day
  3. Deduction under Chapter VIA are allowable while computing liability of advance tax.
  4. TDS is to be reduced from total tax liability of assessee and then specified percentage be calculated of advance tax.

Frequently Asked Questions on Advance Tax


What is Advance Tax and why it is paid in Advance?
Tax is a major source of fund for any Government in the world. In India as per general provision of the Income Tax Act, 1961 every person whose income is exceeds threshold exemption limit is liable to pay income tax. However for speedy and efficient tax collection a mechanism is developed by government in the form Advance Tax. Advance tax is a payment mechanism in which tax is deposited by assessee in installment instead of entire amount deposited at the end of financial year. For assessee’s point of view advance tax is helpful for fund management as the tax liability is divided in installments.

What are the Statutory Provisions for payment of Advance Tax in India?
Following are the sections of the Income Tax Act, 1961 which deal with the provisions of advance tax:
  • Section 208: Conditions of liability to pay advance tax
  • Section 209: Computation of advance tax
  • Section 210: Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer.
  • Section 211: Installments of advance tax and due dates.

Who is liable to pay Advance Tax in India?
As per section 208, advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee is ten thousand rupees or more. Thus provision of advance tax is applicable on all assessee whose tax liability comes more than Rs.10,000/-. However in case following case advance tax need not be deposited :
1) where entire tax liability is covered by TDS deducted then in this situation advance tax is not applicable.
2) Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax. Further assessees covered under section 44AD of the Act can deposit his liability of entire advance tax upto 15th March 2017.

What are the due dates and amount of advance tax payment paid in India?
Type of Assessee
By 15th June 2016By 15th Sept 201615th Dec 201615th March 2017
All Assessee except covered u/s 44AD
15%
45%75%
100%
Assessee Covered u/s 44AD
100%
Note: Any tax paid till 31st March 2017 is treated as advance tax.

Whether a Non-Resident Indian (NRI) or a Non Resident is required to pay Advance Tax in India?
Yes. The advance tax is applicable on both Non-Resident Indian (NRI) or a Non Resident if they have any income accrue during the year in india.

What are the mode of payment of Advance Tax?
Advance Tax can be deposited through cash, cheque and electronic mode (Debit Card/Credit Card). The challan specified for advance tax is ITNS 280. All designated branches of banks empanelled with the Income Tax Department are accepted the advance tax. Assessee can pay Advance Tax Online through TIN-NSDL website.

What are the penal consequences in case of failure to deposit Advance Tax within prescribed time?
If advance tax is not paid or the amount of advance tax paid is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest @1% p.m. u/s 234B from 1st day of assessment year upto date of deposit tax & interest. Further u/s 234C if the payment of advance tax is deferred beyond the due dates, interest @1% p.m., for a period of 3 months, will be payable for every deferment, except for the last installment of 15th March where it will be 1% for one month.

How can assessee verify the status of his tax deposition and other tax credit?
Due care should be taken with respect to PAN, Assessment Year and tax Code before depsoiting advance tax. The assessee may verify status his Advance Tax deposited through following links :
  1. Form No.26 AS: The credit of tax depsoited would be reflected in Form 26AS within one week of making the payment.
  2. NSDL e-Governance: Challan Status Inquiry can be made through OLTAS Application (NSDL) by visiting https://tin.tin.nsdl.com/oltas/index.html.

Can Income tax department issue notice to assessee for payment of Advance Tax ?
Yes. Assessing Officer may pass an order u/s 210(3) of the Income Tax Act 1961 or amended order u/s 210(4) and issue a notice of demand u/s 156 requiring assessee to pay advance tax.

Whether agricultural income would be included in total income for computing advance tax ?
Yes. Net agriculture income to be taken into account for computing advance tax in terms of section 209(2) of Income Tax Act, 1961.

How to Compute Advance Tax Liability ?
The Computation of Tax Liability for the determine Advance Tax is given in below table:
Particulars
Amount
Income from salary (Net)
XXXXX
Income from house property (Net)
XXXXX
Profits and gains of business or profession(Net)
XXXXX
Capital gains(Net)
XXXXX
Income from other sources(Net)
XXXXX
Gross Total Income
XXXXX
Less : Deductions under Chapter VI-A (u/s 80C to 80U))
(XXXXX)
Total Income (i.e., taxable income)
XXXXX
Tax
on total income at applicable rates
XXXXX
Less : Rebate under section 87A
(XXXXX)
Tax Liability After Rebate
XXXXX
Add: Surcharge
XXXXX
Tax Liability After Surcharge
XXXXX
Add: Education cess @ 2% on tax liability after surcharge
XXXXX
Add: Secondary and higher education cess @ 1% on tax liability after surcharge
XXXXX
Tax liability for the year
XXXXX
Less:  TDS
(XXXXX)
Tax payable
XXXXX
Advance Tax
(Above Tax) x (specified percentage u/s 211)

Sunday, 4 September 2016

Taxation of Shares, Future options Transactions

1.1 The broad legal positions are as follows- Dealing in shares whether Investment or Business
Dealing in shares can result either in "Business income" (chargeable as Profits & Gains of Business or Profession chargeable under section 28 of the Income Tax Act, 1961) or "Capital Gains" (chargeable under Sec.45 of the Act). Thus, dealings in shares could either be in the course of business - chargeable as Business Income, OR for the purpose of investment - chargeable as Capital Gains. Classification into Business Income and Capital Gains depends on facts & circumstances of each case. However, as a very broad guideline, as held in many cases, it can be said that - ordinarily, the purchase and sale of shares with the motive of earning a profit, would result in transaction being in the nature of trade, but where the object of investment in shares of a company is to derive income by way of dividend etc., then the profit accruing by sale of shares will yield capital gains and not revenue gains (business income).
2. This article deals with the situation where trading in shares have been considered as business income
3. Explaining Speculation and Non Speculation Business:
Trading in shares can be of two types namely
A) Delivery based trading 
B) Non delivery based (also called intraday trading)
3.1. DELIVERY BASED TRADING:
Under this type of trading, the share transaction is said to be complete only when there is actual delivery of shares/securities upon the settlement of transaction i.e. in other words, when shares are purchased/ sold on delivery basis, then those shares will be transferred to/from Demat account of the buyers/sellers. The buyer of the share will have to pay the full value of share and the share will become his asset with that either he can trade in his business or hold for investment.
3.2. NON DELIVERY BASED TRADING (or intraday trading):
Intraday trading by the name itself one can get a view that it refers to the trading system where the traders have to square-off their trade on the same day. Squaring off the trade means that the traders have to do the buy and sell or sell and buy transaction on the same day before the market close. In other words in this trading, shares are not actually transferred to the DEMAT account of the buyer instead they have to square off their position before the market close on same day by selling the same number of shares. The buyer of the shares will not pay the full value of shares instead he will pay only the difference margin arising on account of such buy/sell transaction.
3.3 Speculative Business Income:
3.3.1. Income from intra-day trading is considered as speculation income and taxed as such.
3.3.2. As per Section 43(5) of the Income Tax Act, 1961, intra-day trading shall be considered as speculation business transactions and the income therefrom would be either speculation gains or speculation losses. Income from speculation gains is taxed at the normal rates.
3.3.3. Intra-day trading is the trading of shares within the same day. Generally, delivery is not taken in case of intra-day trading, and thus, these are said to be speculative transactions. As per Section 43(5) of the Income Tax Act, 1961, the said transactions shall be considered as speculation business transactions and the income therefrom would be either speculation gains or speculation losses.
3.3.4. For a person earning income from any head of income, intra-day trading in shares is always treated as speculative business. Section 43(5) of the Income Tax Act, 1961, deals with speculative transaction. It states that a transaction of purchase or sale of a commodity including stocks and shares settled otherwise than by actual delivery or transfer of the commodity or scrip is a speculative transaction.
3.3.5. In intra-day trading in shares, there is no actual delivery as the shares enter and exit from the trading account on the same date and it does not enter the DEMAT account at all.
3.4 Non Speculative Business Income:
3.4.1. Income from trading F&O (both intraday and overnight) on all the exchanges is considered as non-speculative business income as it has been specifically defined this way. F&O is also considered as non-speculative as these instruments are used for hedging and also for taking/giving delivery of underlying contract. Even though currently almost all equity, currency, & commodity contracts in India are cash settled, but by definition they give rise to giving/taking delivery (there are a few commodity future contracts like gold and almost all agri-commodity contracts with delivery option to it).Income from shorter term equity delivery based trades (held for between 1 day to 1 year) are also best to be considered as non-speculative business income if frequency of such trades executed by you is high or if investing/trading in the markets is your main source of income.
3.4.2. Profit / Loss in derivatives (futures and options) is treated as non-speculation business even though delivery is not effected in such transactions.
3.4.3. From the reading of the above it is clear that trading in derivatives including commodity derivatives on a recognized stock exchange will not be considered as a speculative transaction and hence not treated as speculative business. Therefore since these are not considered as speculative business, therefore income from such transactions will be considered as normal business income and loss from such transactions will be considered as normal business loss.
4. How is turnover computed.?
DETERMINATION OF TURNOVER:

                
DETERMINATION OF TURNOVER IN RESPECT OF SPECULATIVE TRANSACTION
Now, your attention may be directed to the Para 5 of “Guidance Note on Tax Audit under Section 44AB of the Income Tax Act,1961" issued by The Institute of Chartered Accountants of India (ICAI), which provides the guidelines regarding "Turnover or Gross Receipts in respect of transactions in shares.." as follows:
a) In a speculative transaction, the contract for sale or purchase which is entered into is not completed by giving or receiving delivery so as to result in the sale as per value of contract note.
b) The contract is settled otherwise and squared up by paying out the difference which may be positive or negative. As such, in such transaction the difference amount is 'turnover'.
c) In the case of an assessee undertaking speculative transactions there can be both positive and negative differences arising by settlement of various such contracts during the year. Each transaction resulting into whether a positive or negative difference is an independent transaction.
d) Further, amount paid on account of negative difference paid is not related to the amount received on account of positive difference. In such transactions though the contract notes are issued for full value of the purchased or sold asset the entries in the books of account are made only for the differences.
e) Accordingly, the aggregate of both positive and negative differences is to be considered as the turnover of such transactions for determining the liability to audit vides section 44AB, whether the differences are positive or negative.
DETERMINATION OF TURNOVER IN RESPECT OF NON SPECULATIVE TRANSACTION
Determination of turnover in case of F&O is one of the important factors for every individual for the income tax purpose. Turnover must be firstly calculated, in the manner explained below:
1. The total of positive and negative or favorable and unfavorable differences shall be taken as turnover.
2. Premium received on sale of options is to be included in turnover.
3. In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.
Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.
DETERMINATION OF TURNOVER IN RESPECT OF DELIVERY BASED TRANSACTION:
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.
5. When is audit required?
An audit is required if you have a business income and if your business turnover is more than Rs 2 crores (was Rs 1 crore until FY 16/17) for the given financial year. Audit is also required as per section 44AD in cases where turnover is less than Rs.2 Crores but profits are lesser than 8% of the turnover and total income is above minimum exemption limit.
Therefore, the applicability of tax audit will be as follows in case of F&O Trading:
5.1 In case of Profit from transactions of F&O trading
a) In the case of profit from derivative transactions, tax audit will be applicable if the turnover from such trading exceeds Rs. 1 crore.
b) Tax audit u/s 44AB r/w section 44AD will also be applicable, if the net profit from such transactions is less than 8% of the turnover from such transactions.
5.2 In case of Loss from F&O Trading
In case of Loss from derivative trading, since profit (Loss in this case) is less than 8% of the turnover, therefore Tax Audit will be applicable u/s 44AB read with section 44AD.
6. Tax Treatment:
Business incomeIf you are trading in the stock market frequently (mostly non-delivery trade), returns from it can be classified as follows:
6.1. Speculative Business income:  Profit from intraday trading is categorized under speculative business income. Tax treatment is similar to your Business income tax. It is taxed as per the tax slab you fall in while losses can be offset only against speculative gains. 
6.2. Non-speculative Business income: Income from trading futures & options on recognized exchanges (equity, commodity, & currency) is categorized under non-speculative business income. Tax on share trading in such cases is similar to your business income tax. The profits on F/O trading are taxed as per the tax slab you fall in whereas losses on such F/O trading can be set off against business profit.
7. Treatment of Adjustment for loss
7.1 Loss in respect of non speculative business income:
As per the Section 71 of the Income Tax Act, loss in respect of such business can be set off against any other heads of income including income from speculative business but excluding  income under the head “salaries” of that year.
As per Section 72 of the Income Tax Act, if there is any such loss which is not set off against the above said incomes, such losses are eligible to be carried forward and set off against the other incomes excluding income from salary for a period of 8 subsequent assessment years in the manner as specified in the above order of set off.
7.2 Loss in respect of speculative business income:
As per the Section 73 of the Income Tax Act, loss in respect of speculative business cannot be set off against any other heads of income i.e. it can be set off only against other speculative incomes if any in that year.
If there is any such loss which is not set off, such losses are eligible to be carried forward and set off only against speculative incomes for a period of only 4 subsequent assessment years.

Saturday, 27 August 2016

Whether GST a step towards ease of Doing Business? जीएसटी मुळे धंदा करणे खरच सोपे होईल का?



सध्या व्यावसायिकांनमध्ये सर्वात जास्त चर्चिला जाणारा विषय म्हणजे जीएसटी मुळे त्याच्या व्याव्य्सायावर काय परिणाम होईल. या पोस्ट मध्ये माझा प्रयत्न हा आहे कि प्रस्तावित जीएसटी मॉडेल मध्ये असलेल्या विविध तरतुदी तुमच्या समोर मांडणे.

सद्य स्थिती
सध्या प्रत्येक राज्याला विविध व्यवहारांवर कर लावून कर गोळा करण्याची मुभा आहे, जसे कि विक्रीकर, मनोरंजन कर वगैरे. त्याचप्रकारे केंद्र सरकार सुद्धा विविध व्यवहारांवर कर लावून कर गोळा करते, जसे कि अबकारी (excise) कर, सेवा कर वगैरे.




प्रस्तावित मॉडेल जीएसटी२०१४ मध्ये जी १२२ सावी घटना दुरुस्ती झाली तिच्या नुसार वरील सर्व प्रकारचे कर जावून त्या जागी नवीन प्रकारची करप्रणाली अस्तित्वात येईल.

अनेक राज्यात व्यापार करणाऱ्यांना प्रत्येक राज्यात दाखला घ्यावा लागेल. नोंदणी दाखला क्रमांक "पॅन‘शी जोडलेला असेल. त्यामुळे जीएसटी आणि इन्कम टॅक्‍स या दोन्ही खात्याकडे जमा होणारी माहिती एकमेकांस देता येईल. उलाढाल रु. 10 लाखांपेक्षा कमी असेल तर नोंदणीची गरज नाही. कमी उलाढाल असणाऱ्यांसाठी आपसमेळ योजना म्हणजेच "कॉम्पोझिशन स्कीम‘ असेल. व्यापाऱ्यांनी भरलेला कर केंद्र आणि राज्य सरकारला परस्पर मिळेल. करभरणा ऑनलाइन पद्धतीनेच करावा लागेल. तसेच विवरणपत्रदेखील ऑनलाइन भरावे लागेल.

नवीन करप्रणाली मध्ये तीन प्रकारचे कर असतील

१) एस जीएसटी - वस्तू किंवा सेवा राज्यातल्या राज्यात पुरविण्यासाठी ( राज्य कर  )

२) सी जीएसटी - वस्तू किंवा सेवा राज्यातल्या राज्यात पुरविण्यासाठी ( केंद्रीय कर )

३) आय जीएसटी - वस्तू किंवा सेवा एका राज्यातून दुसऱ्या राज्यात पुरविण्यासाठी ( केंद्रीय कर )

यापैकी आय जीएसटी कर हा राज्य आणि केंद्र सरकार यामध्ये विभागला जाईल. या विभाजनासाठी स्वतंत्र अश्या जीएसटी कौन्सिल ची स्थापना केली जाईल. तसे बघितल्यास व्यापारी समुदायावर याचा काहीएक प्रत्यक्ष परिणाम होणार नाही.

जीएसटी कायदा आल्यावर खालील कर संपुष्टात येतील
1) अबकारी कर

2) सेवा कर

३) अतिरिक्त सीमा शुल्क

४) केंद्रीय विक्री कर

५) राज्य विक्री कर

६) मनोरंजन कर

७) चैनीच्या वस्तूंवरील कर

८) लोटेरी जुगार या वरील कर

९) केंद्रीय अधिभार व उपकर

१०) खारेदि कर

११) जकात


कर आकारणीसाठी जीएसटी मंडळ स्थापन करण्यात येईल त्याचे अध्यक्ष केंद्रीय अर्थमंत्री असतील व सदस्य अर्थ राज्यमंत्री असतील. कु ठल्याही एका राज्याचे अर्थ मंत्री उपाध्यक्ष असतील तर इतर राज्यांचे अर्थमंत्री सदस्य असतील. मतदानात केंद्राचा वाटा एक तृतीयांश व राज्यांचा दोन तृतीयांश असेल. म्हणजेच जीएसटी मंडळात एक तृतीयांश सदस्य केंद्राचे तर दोन तृतीयांश राज्यांचे असतील.कुठलाही कर आकारताना ७५ टक्के मतांची आवश्यकता असेल. केंद्र व राज्ये यांना कर आकारणीचा समांतर अधिकार असेल.

जर राज्यांना महसूल बुडण्याची भीती वाटत असली तरी जीएसटी लागू केल्यानंतर राज्यांना पहिली पाच वर्षे केंद्र सरकार महसुलातील तोटा भरून देईल. वस्तू व सेवांवर हा कर लावण्यात येईल. ज्या राज्यातील ग्राहक जास्त असतील त्या राज्यांना करात जास्त वाटा मिळेल. हा निकष बघता उत्तर प्रदेश, पश्चिम बंगाल, केरळ यांना करात जास्त वाटा मिळेल. तामिळनाडू, महाराष्ट्र व गुजरात या राज्यांना महसूल बुडण्याची भीती वाटते आहे त्यांना भरपाई दिली जाईल. किमान दोन वर्षे वस्तूंवर ०.१ टक्के जादा कर आकारणी केली जाईल. जादाचा महसूल ज्या राज्यात वस्तूंची निर्मिती झाली त्यांना मिळेल. पहिली तीन वर्षे राज्यांना १०० टक्के भरपाई दिली जाणार आहे.चौथ्या वर्षी ७५ टक्के तर पाचव्या वर्षी ५० टक्के भरपाई दिली जाईल. राज्यांचा महसूल न बुडता हा कर रेव्हेन्यू न्यूट्रल रेट) २७ टक्के राहील अशी अटकळ असली तरी तो १८ टक्के ठेवला तरी महसूल बुडणार नाही असे अर्थमंत्री जेटली यांचे म्हणणे आहे.

जीएसटी सर्व समावेशक कर प्रणाली आहे का ?

जीएसटी जरी सर्व प्रकारच्या वस्तू आणि सेवा या वरील कर वाटत असला तरी खाली दिलेल्या वस्तू चा जीएसटी मध्ये अंतर्भाव केलेला नाही

1) मद्य - यावर राज्य सरकार चा अबकारी कर चालू राहील

2) तंबाखू आणि तंबाखू जन्य इतर वस्तू - यावर केंद्र सरकारचा अबकारी कर चालू राहील

३) पेट्रोल डीझेल वगैरे - यावरील राज्याचा विक्री कर आणि केंद्र सरकारचा विक्री कर चालू राहील


दिलेल्या कराची वजावट

"एसजीएसटी‘ची वजावट एसजीएसटी भरण्यासाठी तर सीजीएसटीची वजावट सीजीएसटी भरण्यासाठी वापरता येईल. म्हणजे दोन्ही करांची माहिती वेगवेगळी ठेवावी लागेल. खरेदीवर भरलेला कर विक्रीवर भरावयाच्या करातून वजा करून आलेली रक्कम प्रत्यक्ष भरावी लागत असली तरी खरेदीवर कर भरला गेला असेल तरच वजावट मिळेल. यासाठी सर्व खरेदी-विक्री व्यवहारांची माहिती विवरणपत्रासोबत द्यावी लागेल. एक एप्रिल 2014 पासून महाराष्ट्रात "व्हॅट‘चे विवरणपत्र भरताना अशी माहिती द्यावी लागते. इतरही काही राज्यांत अशी पद्धत विकसित केली आहे. ही "जीएसटी‘ची पूर्वतयारी आहे. परदेशातून आयात मालावर आयातदाराला कर भरावा लागेल, त्याची वजावट त्याला मिळेल.

कागदावर "जीएसटी‘ची योजना सोपी दिसत असली तरी, प्रत्यक्ष कायद्याच्या तरतुदी कशा येतात, हे पाहणे खूप महत्त्वाचे आहे. ही करप्रणाली माहिती तंत्रज्ञानाच्या वापराशिवाय अंगीकृत करता येणार नाही. जीएसटी यशस्वी होण्यासाठी संगणक प्रणाली कार्यक्षम आणि कायद्याला धरून असणे महत्त्वाचे आहे; नाहीतर अनंत अडचणी येतात, असा "व्हॅट‘मधील अनुभव आहे.


Unified payment interface (UPI) next boon in transfering money


Unified Payments Interface (UPI), which will help move India towards a cashless economy, is all set to go live in next two to three working days with 21 banks. The UPI app will be available on the Google Play Store in next two to three working days for the customers to download and start using for 19 banks - Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank. IDBI Bank and RBL Bank will be issuers of UPI, which will enable customers to download any UPI enabled Apps mentioned above and link their account.




Unified Payments Interface (UPI) is developed by National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in India. According to Bankbazaar' CEO Adhil Shetty, "In the long run, UPI may replace the current NEFT, RTGS, and IMPS systems as they exist today."
This is how new UPI will work for you. A unique UPI ID is created by using your phone number that is linked to your bank account. This ID is just like an ordinary email ID. For example if your mobile number is 123456789 and you have a bank account with the Punjab National Bank, your UPI id may be 123456789@PNB. To send money from any party, all the sender has to do is open the banking app installed in his or her phone, go to 'Send money' section, and facilitate transactions through UPI mode. In the recipient details, the sender needs to add id of the recipient (for example 123456789@PNB). The money gets transferred instantly to the bank account of the recipient once approved by the sender.
Here are 5 things to know about Unified Payments Interface and how it makes customers life easy vis-a-vis payments
1. Since it has been launched keeping cashless transaction, you no longer will have to wait for hourly batches of NEFT to send or get funds or seek Mobile Money Identifier (MMID) code for IMPS transactions anymore
2. As RBI Governor Raghuram Rajan has said during its soft-launch in APril this year, UPI will turn your smartphone into a payment bank. All you need is a smartphone and your banking app to send and receive funds instantly or to make a payment while any retail purchase
3. Presently, sending or receiving money is done through either NEFT, RTGS, or IMPS system, which needs mandatory information of the recipient like bank account details of the recipient, the IFSC code of the bank, bank account number, etc. With UPI, only mobile number of the recipient is required for an instant transfer any time or day of the week using just your Smartphone
4. Shopping becomes less cumbersome even if you are not carrying or credit or debit cards. It allows you send and receive money as well as make use of its integrated payment system to make merchant payments. Transfer of money from your bank account can happen to merchant's account instantly using UPI
5. UPI-based money transactions are available 24/7 including holidays. One can transfer money from India to any other country using UPI by just opening the banking app or UPI app. Once the app is downloaded you need to select the amount to be paid, add the unique id of your beneficiary, and select 'Send'. After a confirmation password on your phone and you approval, funds gets instantly transferred to the recipient’s bank account.

Saturday, 23 July 2016

Mandatory Disclosure of Asset in Income Tax Return

There have previously been many cases wherein it has been found that the assets of a taxpayer do not justify the income earned by him. So as to keep a check on the Assets acquired and the Income earned, the tax department has mandated that all assets be disclosed in the income tax return in case of individuals earning more than Rs. 50 Lakhs from any source.
As one can see from Schedule AL in  the new income tax forms released by the income tax department for assessment year 2016-17 onwards requires that all assets as well as corresponding liabilities should be disclosed by the taxpayer in his income tax return. The condition for disclosure of assets in the income tax return is only applicable all those taxpayers who satisfy the following condition:-
  1. The total income of taxpayer is more than Rs. 50 Lakhs.
Earlier disclosure of assets and liabilities was only for taxpayers having income of more than Rs. 25 Lakhs from Proprietorship/ Partnership business. However, from assessment year 2016-17, disclosure of assets is mandatory for all category of taxpayers (including Salaried ) having income of more than Rs. 50 Lakhs.
Following points may be noted while giving a disclosure of assets as mentioned above. 
  1. All assets held by a taxpayer and his corresponding liabilities have to be furnished in Schedule AL of the income tax return. However, the business assets already disclosed in the Balance Sheet are not required to be disclosed in this schedule. Only the assets which have not been disclosed in the Balance Sheet are required to be disclosed in this Schedule. 
  2. The assets to be disclosed in the income tax return will not include any assets with personal effects i.e. to say, movable property (including wearing apparel and furniture) help for personal use by the taxpayer or any member of his family dependent on him. However, personal effects exclude the assets specifically mentioned above.
  3. Only the Cost of the Asset is to be disclosed and not its current market value.

Following is the list of Assets and liabilities which needs disclosure 
1) Land 
2) Building
3) Bank Balance
4) Fixed Deposit
5) Shares and securities
6) Insurance policies
7) Loans and advances given 
8) Cash in Hand
9) Jewellery and Bullion 
10) Archaeological collections, Drawings, paintings, sculptures, or work of art
11) Vehicles, yachts, boats and aircrafts.
12) Liabilities in relation to 1 to 11 above. 

  

Saturday, 2 July 2016

Excise Registration for Jewellers Update ( 01/07/2016)

The time limit for taking Central excise registration of an establishment by a jeweller is being extended upto 31.07.2016

The liability for payment of Central Excise Duty will be with effect from 01.03.2016. The payment for excise duty for the month of March, April , May , June  is also extended to 31.07.2016

Link of Circular - http://www.cbec.gov.in/resources//htdocs-cbec/excise/cx-circulars/cx-circulars-2016/circ1033-2016cx.pdf

Monday, 27 June 2016

Indirect Tax Ombudsman - a Tool for resolution of Complaints in Indirect Taxes

The CBEC has taken a good move to for the benefit of tax payers by setting up the post of Indirect Tax Ombudsman.
The Central Government has created 7 posts of Indirect Tax Ombudsman at 7 stations with the objective of enabling the resolution of complaints relating to public grievances against the Customs, Central Excise and Service Tax Department and to facilitate the satisfaction or settlement of such complaints. Complaints can be filed by assessee himself or his authorised representative in writing (electronic means accepted) on account of delay in the issue of refunds or rebate beyond time limits; delay in adjudication; delay in registration of taxpayers; delay in giving effect to Appellate orders; non-acknowledgement of letters or documents sent to the department, unwarranted rude behaviour of revenue Officials etc.
However, it is important to note that No complaint to the Ombudsman shall lie unless
  • Complaint is not made on an issue which has been the subject matter of any proceedings in an appeal, revision, reference or writ before Appellate Authority or Court.
  • the complainant had, before making complaint to the Ombudsman, made a representation to the Grievance Cell of the concerned Customs, C. Excise and Service Tax office and did not receive any reply within one month from the date of its receipt by the Grievance Cell or complainant is not satisfied with the reply given by the Grievance Cell,
  • the complaint is not made later than one year after the complainant has received the reply from the concerned Department of Customs, C. Excise & Service Tax,
  • complaint is not in respect of the same subject-matter already settled by the Ombudsman
The ombudsman is independent of the jurisdiction of the Customs, Central Excise and Service Tax Department. Seven Ombudsman offices are located as below:
S. No.Location
Address
Territorial Jurisdiction
DelhiThe Indirect Tax Ombudsman, New Delhi Room No. 580, 5th Floor, Hotel Samrat, Chanakyapuri, New Delhi - 110 021.NCT, Himachal Pradesh, Punjab, Haryana, Chandigarh, Jammu & Kashmir,
MumbaiIndirect Tax Ombudsman, Mumbai Utpad Shulk Bhavan, Plot No. C-24, Sector - E, Bandra-Kurla Complex, Bandra (East) Mumbai - 400 051Maharashtra and Goa
ChennaiIndirect Tax Ombudsman, Chennai26/1, Mahathma Gandhi Road, Nungambakkam, Chennai - 600 034Tamil Nadu, Puducherry, Andhra Pradesh
Kolkata-West Bengal, Bihar, Orissa, North Eastern States, Jharkhand, Andaman & Nicobar Islands
Bengaluru
Indirect Tax Ombudsman
7th Floor, 'A' Wing, Kendriya Sadan, Koramangala, Bangalore - 560 034
Karnataka, Kerala, Lakshadweep
AhmedabadIndirect Tax Ombudsman, Ahmedabad, Ministry of Finance, Department of Revenue, Excise Bhavan, Near Panjrapole, Opp. Polytechnic, Ahmedabad - 380 015Gujrat, Rajasthan, Daman & Diu, Dadra & Nagar Haveli.
LucknowIndirect Tax Ombudsman 7-A, Ashok Marg, LucknowUttar Pradesh, Uttrakhand, Madhya Pradesh, Chhattisgarh.

GST Audit Report and Reconciliation Statement Format notified

The CBIC has notified the has notified Form GSTR-9C  for Audit Report and Reconciliation Statement  vide  Central GST (Tenth Amendment) Rul...