T P Gupta & Co.

No Input Tax Credit of repair, insurance and servicing of motor vehicle w.e.f 1st Feb 2019

2018-04-13T02:39:00.001-07:00

Govt issued Notificatoon No 2/2019-CT dated 29.01.2019 whereby specific provisions of CGST (Amendment) Act 2018 made applicable w.e.f 01st Feb 2019 and accordingly Input tax credit of following services relatable to motor vehicle shall not be available:-

(a) general insurance,

(b) servicing,

(c). repair and maintenance

*Cases where ITC on motor vehicle repairing/ insurance services is available even after amendment*

1. Motor Vehicle for transportation of persons having approved seating capacity of more than 13 persons. ( e.g. A Bus)

2. Motor Vehicle for transportation of goods. ( e.g. A Truck)

3. Motor Vehicle used for making following taxable supplies, namely :-

(A) further supply of such motor vehicles ( e.g. In case of a Car Dealer)

(B) transportation of passengers (( e.g. In case of a Taxi Service Provider)

4. Services received by a taxable person engaged—

(I) in the manufacture of such motor vehicles

(II) in the supply of general insurance services in respect of such motor vehicles insured by him;

*Thus in all other cases apart from above 4 cases (though in 4 cases it was available prior to amendment also), Input Tax Credit in respect of repairs/ insurance of motor vehicle is not available now on and after 01.02.2019*

Consequences of Not Filling of ITR before 31/03/2018

2018-04-02T06:45:00.001-07:00

Last date for filling of the Income Tax returns of Financial Year 2015-16, and 2016-17 was 31st march 2018. Now we will see what may be the consequences if one failed to file ITR before 31st March 2018.

1) PENALTY U/s 271F :- If person fails to file return before end of the relevant assesmnet year then the assessing office may levy penalty of RS 5000/-

2) Interest u/s 234A :- Interest u/s 234A an simple interest of 1% is levied till the payment of taxes

3)Best judgement assessment u/s 144 : if return is not filled under Sections 139(1), 139(4) or 139 (5) or in response to section 142(1)

4) Prosecution for not filling return of income : If the return of income is not filled then we may be prosecuted under section 276CC (3 month to 7 years)

Filing for Cancellation of Registration by Legal Heir in case of Death of Sole Proprietor

2018-03-03T21:39:00.001-08:00

Filing for Cancellation of Registration by Legal Heir in case of Death of Sole Proprietor

1. Can a legal heir transfer the ITC to a new entity in case of death of sole proprietor?
Yes, a legal heir can transfer the ITC to a new entity in case of death of sole proprietor. In such a case, legal heir needs to get a new registration under GST and transfer the ITC through FORM GST ITC-02 to this new entity.

2. What is the process to cancel the registration in case of death of sole proprietor? How can a legal heir transfer the ITC to a new entity in case of death of sole proprietor?
1. In case of death of sole proprietor, Legal heir has to visit office of the Proper Officer (Jurisdiction Officer) and submit the Death Certificate of the sole proprietor along with the Succession Certificate before the Proper Officer as documentary evidence.

2. Proper Officer will add legal heir as the authorized signatory on the GST Portal.

In case the successor is minor, he cannot be added as an authorized signatory. In such cases, minor successor needs to be represented by his legal/ natural / testamentary (appointed by will) guardian. The legal guardian needs to be appointed or nominated by the competent authority (Normally District Judge). Legal guardian can take decisions on behalf of minor legal heir/ successor and he can also appoint authorized signatory for this purpose.

3. Legal heir has to apply for new registration.

4. Once the new registration is approved, Legal heir has to apply for the transfer of ITC by filing FORM GST ITC–02 to new entity. However, there is no restriction on filing of ITC-02 pre or post cancellation. It is an independent form and has no relation with cancellation of the sole proprietorship firm.

5. Username and Temporary password reset will be communicated to the e-mail address of the newly added authorized signatory as entered by the Tax Officer in your jurisdiction. Next, the newly added authorized signatory need to login to the GST Portal available athttps://www.gst.gov.in/ and login using theFirst time login link. He/ She will be forced to change your username and password after first time login with the Username and Temporary password that was emailed on the newly added e-mail address of the Primary Authorized Signatory.

6. Legal heir or his/ her authorized signatory has to submit the application for cancellationand select the “Death of Proprietor” as reason of Cancellation of Registration and attach sufficient proof.

HOW TO CHANGE EMAIL ID AND MOBILE NUMBER OF AUTHORISED SIGNATORY

2017-11-20T05:15:00.001-08:00

HOW TO CHANGE EMAIL ID AND MOBILE NUMBER OF AUTHORISED SIGNATORY

a) So first login... and use non-core amendment option

b) Then edit existing authorised signatory... remove checkbox from Primary and save

c) Add new dummy authorised signatory... with names and other information, unique PAN (you may even enter AAAAA9999A), correct NM (new mobile)and NE (new email), Do not forget to select "Primary" check box and save...

d) The moment you save, OTP pop up will appear and new OTP shall come on both NM and NE. Enter OTP

e) On validation system will replace OM (old mobile), OE (old email) with NM and NE respectively.

f) Delete authorised signatory just added in step c)

g) Go to authorised signatory, edit the one from Step b) and now select "Primary", the moment you select it, you will see your NM and NE in place. Save it.

h) Sign and submit...

i) Voila, its done!

Courtesy : FTAP

Due date for GSTR extended

2017-09-04T08:44:00.001-07:00

Due dates for GSTR-1,2 & 3 for July extended to 10th,25th & 30th Sep respectively.

GSTR-1,2 & 3 for Aug extended to 5th,10th & 15th Oct respectively.

Highlights of the Draft WayBill Rules released under GST

2017-04-16T08:00:00.000-07:00

Govt. recently released draft Rules on electronic WayBill under Goods and Services Tax (GST). A waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route.

Key highlights of e-WayBill Rules are:

1. Moving goods worth more than Rs 50,000 under GST will require prior online registration of the consignment and securing an ‘e-way bill’ that tax officials can inspect anytime during the transit to check tax evasion.

2. Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal

3. The person in-charge of conveyance will be required to carry the invoice or bill of supply or delivery challan, and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance.

4. Where multiple consignments are intended to be transported in one conveyance, consolidated e-way bill shall be generated carrying serial number of e-way bills generated in respect of each such consignment electronically on the common portal.

5. Validity of eWayBill:

A. Less than 100 km – One day
B. 100 km or more but less than 300km – Three days
C. 300 km or more but less than 500km – Five days
D. 500 km or more but less than 1000km – Ten days
E. 1000 km or more – Fifteen days

Verification of documents

6. The Commissioner shall get RFID readers installed at places where verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such RFID readers where the e-way bill has been mapped with RFID.

7. Provision of physical verification goods can be carried out by officer upon proper authorization from Commissioner.

Inspection of Goods

8. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST INS – 03 within twenty four hours of inspection and the final report in Part B of FORM GST INS – 03 shall be recorded within three days of the inspection.

Detention of Vehicle
9. transporter whose vehicle has been intercepted and detained for a period exceeding 30 minutes, he may upload the said information on the GSTN portal.

Experts believe that through e-WayBill mechanism, black market or un-organised sector would take a big hit as the government would have details of every goods movement.

GST Act 2017 notified on 12.04.2017

2017-04-15T00:07:00.003-07:00

President Pranab Mukherjee on Thursday gave his assent to four key Goods and Services Tax legislations. With this, the GST has further moved closer to its July roll-out.

The four key GST bills that were earlier passed by both the houses of Parliament are Central GST, Integrated GST, Union Territory GST and Compensation GST.

Notified GST Acts, notified on 12.4.2017

1. Central GST Act 2017: http://egazette.nic.in/WriteReadData/2017/175312.pdf

2. Integrated GST Act 2017: http://egazette.nic.in/WriteReadData/2017/175311.pdf

3. GST (Compensation to States) Act 2017: http://egazette.nic.in/WriteReadData/2017/175310.pdf

4. Union Territory GST Act 2017: http://egazette.nic.in/WriteReadData/2017/175313.pdf

First GST Migration then Service Tax or Excise Return

2017-04-14T23:39:00.004-07:00

In case you are still to enrol, you are required to first enrol on the GST portal before the return can be filed. Your enrolment in time would allow an easy transition to GST for your business entity.

In case you have enrolled on the GST portal, please provide your user name (as registered on the portal www.gst.gov.in) in the box below and proceed to file your tax return.

In case you don't want to migrate to GST, please confirm so by clicking "Not migrating to GST" and continue to file return. Your provisional ID and password would be cancelled and this may deny your credit migration to the GST regime.

Union Budget 2017 Highlights

2017-02-09T06:38:00.001-08:00

Following are the highlights of Mr. Jaitley's Budget speech:

Demonetisation

Demonetisation is expected to have a transient impact on the economy.
It will have a great impact on the economy and lives of people .
Demonetisation is a bold and decisive measure that will lead to higher GDP growth.
The effects of demonetisation will not spillover to the next fiscal.
Agriculture sector

Sowing farmers should feel secure against natural calamities.
A sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver.
NABARD fund will be increased to Rs. 40,000 crore.
Government will set up mini labs in Krishi Vigyan Kendras for soil testing.
A dedicated micro irrigation fund will be set up for NABARD with Rs 5,000 crore initial corpus.
Irrigation corpus increased from Rs 20,000 crore to Rs 40,000 crore.
Dairy processing infrastructure fund wlll be initially created with a corpus of Rs. 2000 crore.
Issuance of soil cards has gained momentum.
A model law on contract farming will be prepared and shared with the States.

Rural population

The government targets to bring 1 crore households out of poverty by 2019.
During 2017-18, five lakh farm ponds will be be taken up under the MGNREGA.
Over Rs 3 lakh crore will be spent for rural India. MGNREGA to double farmers' income.
Will take steps to ensure participation of women in MGNREGA up to 55%.
Space technology will be used in a big way to ensure MGNREGA works.
The government proposes to complete 1 crore houses for those without homes.
Will allocate Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana in 2017-18.
The country well on way to achieve 100% rural electrification by March 2018.
Swachh Bharat mission has made tremendous progress; sanitation coverage has gone up from 42% in Oct 13 to 60% now.

For youth

Will introduce a system of measuring annual learning outcomes and come out with an innovation fund for secondary education.
Focus will be on 3,479 educationally-backward blocks.
Colleges will be identified based on accreditation.
Skill India mission was launched to maximise potential. Will set up 100 India International centres across the country.
Courses on foreign languages will be introduced.
Will take steps to create 5000 PG seats per annum.
For the poor and underprivilege health care

Rs. 500 crore allocated for Mahila Shakthi Kendras.
Under a nationwide scheme for pregnant women, Rs. 6000 will be transferred to each person.
A sum of Rs. 1,84,632 crore allocated for women and children.
Affordable housing will be given infrastructure status.
Owing to surplus liquidity, banks have started reducing lending rates for housing.
Elimination of tuberculosis by 2025 targeted.
Health sub centres, numbering 1.5 lakh, willl be transformed into health wellness centres.
Two AIIMS will be set up in Jharkhand and Gujarat.
Will undertake structural transformation of the regulator framework for medical education.
Allocation for Scheduled Castes is Rs. 52,393 crore
Aadhaar-based smartcards will be issued to senior citizens to monitor health.

Infrastructure and railways

A total allocation of Rs. 39,61,354 crore has been made for infrastructure.
Total allocation for Railways is Rs. 1,31,000 crore.
No service charge on tickets booked through IRCTC.
Raksha coach with a corpus of Rs. 1 lakh crore for five years (for passenger safety).
Unmanned level crossings will be eliminated by 2020.
3,500 km of railway lines to be commissioned this year up from 2,800 km last year.
SMS-based ''clean my coach service'' is put in place.
Coach mitra facility will be introduced to register all coach related complaints.
By 2019 all trains will have bio-toilets.
Five-hundred stations will be made differently-abled
Railways to partner with logistics players for front-end and back-end solutions for select commodities.
Railways will offer competitive ticket booking facility.
Rs. 64,000 crore allocated for highways.
High speed Internet to be allocated to 1,50,000 gram panchayats.
New Metro rail policy will be announced with new modes of financing.

Energy sector

A strategic policy for crude reserves will be set up.
Rs. 1.26,000 crore received as energy production based investments.
Trade infra export scheme will be launched 2017-18.

Financial sector

FDI policy reforms - more than 90% of FDI inflows are now automated.
Shares of Railway PSE like IRCTC will be listed on stock exchanges.
Bill on resolution of financial firms will be introduced in this session of Parliament.
Foreign Investment Promotion Board will be abolished.
Revised mechanism to ensure time-bound listing of CPSEs.
Computer emergency response team for financial sector will be formed.
Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44 lakh crore for 2017-18.
Digital India - BHIM app will unleash mobile phone revolution. The government will introduce two schemes to promote BHIM App - referral bonus for the users and cash back for the traders.
Negotiable Instruments Act might be amended.
DBT to LPG consumers , Chandigarh is kerosene-free, 84 government schemes are on the DBT platform.
Head post office as the central office for rendering passport service.
Easy online booking system for Army and other defence personnel.
For big-time offences - including economic offenders fleeing India, the government will introduce legislative change or introduce law to confiscate the assets of these people within the country.

Fiscal situation

Total expenditure is Rs. 21, 47,000 crore.
Plan, non-plan expenditure to be abolished; focus will be on capital expenditure, which will be 25.4 %.
Rs. 3,000 crore under the Department of Economic Affairs for implementing the Budget announcements.
Expenditure for science and technology is Rs. 37,435 crore.
Total resources transferred to States and Union Territories is Rs 4.11 lakh crore.
Recommended 3% fiscal deficit for three years with a deviation of 0.5% of the GDP.
Revenue deficit is 1.9 %
Fiscal deficit of 2017-18 pegged at 3.2% of the GDP. Will remain committed to achieving 3% in the next year.

Funding of political parties

The maximum amount of cash donation for a political party will be Rs. 2,000 from any one source.
Political parties will be entitled to receive donations by cheque or digital mode from donors.
An amendment is being proposed to the RBI Act to enable issuance of electoral bonds .A donor can purchase these bonds from banks or post offices through cheque or digital transactions. They can be redeemed only by registered political parties.

Defence sector

The defence sector gets an allocation of Rs. 2.74,114 crore.

Tax proposals

India’s tax to GDP ratio is not favourable.
Out of 13.14 lakh registered companies, only 5.97 lakh firms have filed returns for 2016-17.
Proportion of direct tax to indirect tax is not optimal.
Individuals numbering 1.95 crore showed an income between Rs. 2.5 lakh to Rs. 5 lakh.
Out of 76 lakh individual assessees declaring income more than Rs. 5 lakh, 56 lakh are salaried.
Only 1.72 lakh people showed income of more than Rs. 50 lakh a year.
Between November 8 to December 30, deposits ranging from Rs. 2 lakh and Rs. 80 lakh were made in 1.09 crore accounts.
Net tax revenue of 2013-14 was Rs. 11.38 lakh crore.
Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.
1.95 crore individuals showed income between Rs. 2.5 lakh to Rs. 5 lakh.
Rate of growth of advance tax in Personal I-T is 34.8% in the last three quarters of this financial year.
Holding period for long term capital gain lowered to two years
Proposal to have a carry-forward of MAT for 15 years.
Capital gains tax to be exempted for persons holding land from which land was pooled for creation of the state capital of Andhra Pradesh.
Under the corporate tax, in order to make MSME companies more viable, there is a proposal to reduce tax for small companies with a turnover of up to Rs 50 crore to 25%. About 67 lakh companies fall in this category. Ninety-six % of companies to get this benefit.
The government proposes to reduce basic customs duty for LNG to 2.5% from 5%.
The Income Tax Act to be amended to ensure that no transaction above Rs 3 lakh is permitted in cash.
The limit of cash donation by charitable trusts is reduced to Rs 2,000 from Rs 10,000.
Net revenue loss in direct tax could be Rs. 20,000 crore.

Personal income tax

Existing rate of tax for individuals between Rs. 2.5- Rs 5 lakh is reduced to 5% from 10%.
All other categories of tax payers in subsequent brackets will get a benefit of Rs 12,500.
Simple one page return for people with an annual income of Rs. 5 lakh other than business income.
People filing I-T returns for the first time will not come under any government scrutiny.
Ten % surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore to make up for Rs 15,000 crore loss due to cut in personal I-T rate. 15 surcharge on individual income above Rs. 1 crore to remain.

Source: The Hindu