Friday, December 2, 2016

Goods and Services tax (GST) Registration Procedure

Introduction

Goods and Services tax (GST), which is often known as a historic reform, is now around the corner. After president Pranab Mukherjee gave his assent on September 8, 2016, the Government is firing on all cylinders to implement GST by April 1, 2017.  However, the implementation will be little early for the existing tax payers.


Who all are liable to enroll?

Existing taxpayers are liable to enroll under GST system portal. An existing taxpayer is an entity registered with any of the authorities;
Central Excise
Service Tax
State sales tax/VAT (except exclusive liquor dealers)
Entry tax
Luxury Tax
Entertainment tax
Further enrollment here means validating the data of existing taxpayers and filing up the remaining key fields.


Which is the final date of enrollment?

The dates have also been announced. The table is as follows:

STATES
START DATE
END DATE
Pondicherry, Sikkim
08/11/2016
23/11/2016
Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh
14/11/2016
29/11/2016
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram
30/11/2016
15/12/2016
Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan
16/12/2016
31/12/2016
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh
01/01/2017
15/01/2017
Service Tax Registrants
01/01/2017
31/01/2017
Delta All Registrants (All Groups)
01/02/2017
20/03/2017


Procedure for enrollment under GST System Portal

#Point 1 – Paperless procedure: The whole system of enrollment will be paperless; hence, no hard copies shall be entertained by the department. Further, all the aforesaid registered taxpayers will need to visit the GST system portal.
Further, it is mandatory for every person to register if the annual turnover is more than Rs 20 lakh, the exemption limit.

#Point 2 – Provisional ID and password: Before visiting the GST system portal, you must have the provisional ID and password given to you by your concerned state authorities.
Hence, contact your ward officer to complete the online pre-registration under GST.

#Point 3 – Documents and information required: To complete the registration procedure, you must have the following information:

·         Provisional ID as explained in point 2.
·         Password as explained in point 2.
·         Valid email address (it should not be off professional – Use your own email ID)
·         Valid mobile number
·         Bank account number
·         IFSC code

Further, also carry the following documents which needs to be uploaded on the website:
·         Proof of constitution of business:
·         In case of partnership deed – partnership deed (PDF or JPEG in maximum file size of 1 MB).
·         In case of others: registration certification of the business entity (PDF and JPEG format in maximum file size of 1 MB).
·         Photograph of promoters/partners/Karta of HUF (JPEG format in maximum file size of 100 KB).
·         Proof of appointment of authorised signatory (PDF and JPEG format in maximum size of 1 MB).
·         Photograph of authorised signatory (JPEG format in maximum file size of 100 KB).
·         Opening page of passbook/statement containing the following information:
·         Bank account number
·         Address of branch
·         Address of account holder
·         Few transaction details
(PDF and JPEG format in maximum file size of 1 MB).

#Point 4 – Fill information and submit: After you submit the form with all the information and documents, an acknowledgement number will be generated. Save that number for future correspondences.

More info : - https://www.gst.gov.in/


Monday, June 13, 2016

Post Office Monthly Income Scheme (MIS)

Post Office Monthly Income Scheme (MIS)

Salient Features:-


1.      Interest rate of 8.4% per annum payable monthly w.e.f. 01-04-2013.

2.      Maturity period is 5 years.

3.      No Bonus on Maturity w.e.f. 01.12.2011.

4.      No tax deduction at source (TDS).

5.      No tax rebate is applicable.

6.      Minimum investment amount is Rs.1500/- or in multiple thereafter.

7.      Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.

8.      Auto credit facility of monthly interest to saving account if accounts are at the same post office.

9.      Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.

10.  Non-Resident Indian / HUF cannot open an Account.

11.  Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.

12.  Facility of premature closure of account after 1 year but on or before 3 years @ 2.00% discount.

13.  Deduction of 1% if account is closed prematurely at any time after three years.


14.  Suitable scheme for retired employees/ senior citizens and for those who need regular monthly income.

Public Provident Fund (PPF)

Public Provident Fund (PPF)

Salient Features:-


1.      Interest rate of 8.7% per annum w.e.f. 01-04-2013.

2.      Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,50,000/- per annum.

3.      The scheme is for 15 years.

4.      Investment up to Rs 1,50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.

5.      Interest is completely tax-free.

6.      Deposits can be made in lump sum or in 12 installments.

7.      One deposit with a minimum amount of Rs 500/- is mandatory in each financial year.

8.      Withdrawal is permissible from 6th financial year.

9.      Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.

10.  Free from court attachment.

11.  Non-Resident Indians (NRIs) not eligible.

12.  An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.

13.  Ideal investment option for both salaried as well as self employed classes.


Monday, February 29, 2016

UNION BUDGET 29TH FEB 2016

HIGHLIGHTS OF UNION BUDGET 2016

A. issues related to income tax:-


-No change in Income Tax slabs

-First time home buyer – Rs 50,000 deduction for upto Rs 35 lakh loan provided house cost no more than Rs 50 lakh 

-Reduction of Rs 60,000 per annum for those who don’t own house and pay rent

-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-Tax rebate for those earning less than 5 lakh per annum

-Under 5 lakh income – rebate increased from 2000 to 5000

-Corporate Tax – New manufacturing companies registered on/post March 01, 2016 – option of tax 25% surcharge + cess

-Lower Corporate tax for small companies at 29% surcharge + cess

-New grading system of imposing penalties - on the basis of under reporting or concealment of income

-Scope of e-assessment to be expanded to 7 mega cities

-Income tax department will expand e-sahyog to assist small taxpayers

-Income tax dept. will expand e-sahyog to assist small taxpayers:

-Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019

-Levy of heavy penalty for nonpayment of tax has led to high litigation. Proposal to modify scheme for penalties

-Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases

-Monetary limit for cases to be decided by 1-member bench up from 15 lakh to 50 lakhs

-Incentives for new manufacturing companies and smaller enterprise companies

-11 new benches of tax tribunals to be established to reduce pendency

-Companies Act to amended for ease of doing business; to enable registration of companies in a day

-15% surcharge on income tax for those with incomes exceeding 1 crore pa

-I propose to lower corporate IT rate for next financial yr of relatively small enterprises companies with turnovers not exceeding 5cr

-Krishi Kalyan Cess of 0.5% on all taxable services

-Tax evasion will be countered strongly:

-10% dividend on earnings over earnings over 10 lakhs

-Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.

-Limited tax compliance window from Jun 1 - Sep 30 2016 for declaring undisclosed income at 45% including surcharge and penalties. There shall be no scrutiny or prosecution in this regard

-Clean energy cess increased from RS 200 per tonnne to 400 per tonnne on coal, lignite and peat

-Move towards a low tax regime with non litigious approach

-Committed to provide a stable and predictable taxation regime

-PM Awas Yojna: 100% deduction for profits of undertakings from housing projects in cities during June 2016 - March 2019

-MAT will apply for such undertakings

-Incentives for new manufacturing companies and smaller enterprise companies

-Hike in to limit from 1 to 2 crore on small business assess in MSME category.

-Presumptive income of 8% Committed to increase investment in asset reconstruction companies

-Incentives for new manufacturing companies and relatively small enterprise companies

-Committed to implementing GAAR from April 1, 2017

-Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.

-Accelerated depreciation to be limited to 40% wef from Apr 1, 2017

-Relief to those who living on rent - Rent deduction raised from Rs 24,000 to Rs 60,000

-Tax ceiling has been raised from 2000 to 5000 rupees for those earning less than Rs 5 lakh rupees p.a.

  
B.   issues related to INDIRECT TAXES :-


-Excise duty on Tobacco products increased by 10-15%

-Service tax exempted for housing construction of houses less than 60 sq meters

-Service tax on single premium annuity to be reduced to 1.5 percent from 3.5 percent.

-Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India

-Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana


 C. issues related to Social sector:-


-Direct benefit transfer scheme will be implemented for disbursal of fertilizer subsidy on a pilot basis

-Govt stands firmly behind public sector banks, Rs 25k crore for bank recapitalization

-Govt will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in passenger segment

-Task force has been constituted to rationalize the human resources in various ministries has been instituted

-AADHAR NO will not be a proof of citizenship or domicile

-Retail trade is largest service sector employer in country. Many more jobs are created in this, provided the regulations are simplified:

-Shops will be given an option to remain open on all seven days


D. issues related to INFRASTRUCTURE Sector:-


-Public Utility Resolution of Disputes Bill for resolution of disputes in infra sector

-Guidelines of renegotiating PPP contracts will be introduced

-New credit rating system for infrastructure

-Considering incentivizing gas production from deep sea, ultra deep water and high temp. areas

-3000 crore rupees earmarked for nuclear power generation

-100% FDI through FAPB route in marketing of food products produced and manufactured in India

-Will encourage CPSEs to sell their assets like land

-Dept of Disinvestment to be renamed as Dept. of Investment and Public Asset Management

-Shops will be given an option to remain open on all seven days

-85% of stalled road projects back on track

-Total of Rs 97000 crore will be spend on roads and highways

-Rs 218000 crore investment in roads and railways in 2016-17

-10000 kms of national highways in 2016-17

-Additional 50000 kms of state highways will be taken up for up gradation as national highway

-Series of measures to modernize ports

-800 cr for inland waterways

-Action plan for revival of unserved and underserved airports

-Will partner with state govt to develop some of these airports to enhance regional connectivity


E. issues related to BANKING AND FINANCIAL Sector:-

-Public Money should reach the poor and deserving without any leakage

-A bill on targeted delivery of financial services using Aadhar to be introduced

-SEBI act to be amended to provide more benches on the security appellate tribunal

-Comprehensive code of bankruptcy resolution of financial firms will be introduced as a bill in 2017

-Number of measures to be undertaken to deepen corporate bond market

-RBI Act being amended to provide statutory basis for monetary policy framework

-Process of transformation of IDBI has already started; govt will reduce its stake below 50%

-PM Mudra Yojna amount sanctioned has reached Rs 1 Lakh crore, next year's target is 1,80,000 crore

-Nationwide of ATMS, micro-ATMs across the country

-RBI Act being amended to provide statutory basis for monetary policy framework

-Financial Data Management Centre for integrated data collection and analysis
-3,500 medical stores to be opened under Pradhan Mantri Jan Aushodi Yojana


F. OTHER OVER ALL VIEWS:-

-FM announces 9 objectives for tax reforms

-Net impact of taxation proposals is an increase in Govt revenue by Rs 19,610 cr

-To reduce multiplicity of taxes and cascading - 13 taxes with collection less than Rs 50 Cr a year abolished

-Companies Act to amended for ease of doing business; to enable registration of companies in a day

-Special Patent Regime proposed to power innovation and research

-Revenue deficit estimate for FY 2015-16 down to 2.5% from earlier estimates

-Fiscal deficit for Financial Year 2016-'17 targeted at 3.5%

-Govt acknowledges role of tax payer in nation building

-Taxation is a major tool to remove poverty and inequality in the society'

-The fiscal target will be retained at 3.9 for 2015-16, and 3.5 for 2016-17

-Plan and non-plan classification of govt expenditure will be done away with

-General Insurance companies owned by the govt will be listed in the stock exchanges


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