Sanjeev & Associates

02/07/2019

Surcharge, Cess come to the rescue as I-T revenues repeatedly miss target :
Centre likely to raise the surcharge in Budget 2019-20, too
Despite a strong growth in the number of persons filing income tax returns since 2014, the Centre has been struggling o meet its target for basic I-T collections every year. This appears to have made it turn towards supplementary levies such as I-T surcharge and cesses to bolster its collections in FY19. Experts think the Cent could tinker with the surcharge in the upcoming Budget, too.
The 10% tax on long-term capital gains arising from transfer of equity shares and equity mutual funds exceeding Rs. 1 Lakh a year, and the 10% tax on dividends distributed by equity mutual funds are also expected to add to the total I-T collections.

25/06/2019

The Income Tax Department, investigating cases of tax evasion during demonetisation, is stepping up probe into gains made in agriculture income by farmers and other assesses.
Under the Income Tax Act of 1961, agriculture income is exempt from taxes. but during demonetisation period, Income Tax Department officers suspect that excess non-agriculture income or black money was declared as agriculture income.
A senior IT officer said that under the revised Standard Operating Procedures (SOPs) formulated by the CBDT, cash receipts shown as agricultural income in the book of accounts are under the scanner. During demonetisation, farmers have declared large cash gains after selling non-perishable crops such as turmeric. - Source : Business standard.com dt : 15-05-2019

21/06/2019

*35th GST Council Meeting Updates*

1. Decision for reduction of rate on electric vehicle (EV) is given to Fitment committee – decision is expected in next council meeting. Current rate on EV is 12% and proposal is to reduce it to 5%

2. Anti-profiteering mechanism which was to end on 30.06.2019 has been extended for another 2 years till 2021.

3. If Profiteered amount is not deposited as per the order of the authority within 30 days then supplier will have to pay Penalty of 10% on it.

4. Annual Return (GSTR 9 / 9A) and Audit (GSTR 9C) has been extended from 30.06.2019 to 31.08.2019

5. Registration process simplified by using Aadhar back bone

6. Generation of invoices on Government portal given in-principle approval, once implemented, this invoice will be treated as E-way bill as well.

7. E-ticketing for multi-plexes approved

8. Major discussion took place on how to control Fake / bogus billing - details awaited

20/06/2019

Hi viewers, apologies for the long delay, I shall keep you posted on the latest updates on tax.

30/06/2017

Goods and Service Tax is Good and Simple Tax - PM Narendra Modi !!!

24/05/2017

Black Money routed into gold market, Shell Companies after note ban; IT sleuths
The massive hunt for undeclared cash launched across the country post demonetization has revealed that this was either converted into gold or routed through shell companies to make it legal tender, IT sleuths have told IANS.
Income Tax officials said black money holders avoided the bank-deposit route because they wanted to conceal their identities and somehow had “managed to get many jewelers” to convert their unaudited cash into gold.
“They bought gold and jewellery from jewelers across the cities on November 8 and, thereafter. Jewellers camouflaged the identities of the actual buyers and offered split bills.” An Income tax official, who was part of the investigations, told IANS on conclusion of anonymity.
According to him, jewelers saw in demonetization an opportunity to ramp up their sales and thought “they could get away” by showing these amounts as sales. “ Jewellers offered a platform to convert unreported cash into gold,” the official said, adding that split bills were below the value of Rs. 2 Lakhs, the treshhold above which buyers have to provide the permanent account number (PAN) issued by the Income Tax department.
“The buyers lists provided by the jewelers were false. After verification, it meet the huge spurt in demand following the announcement of demonetization, particularly after the festival season? “ We found many of these sales were booked as advance collection for future sales.
Due to preceding sales during Dhaneras and Diwali, Jewellers had a stock crunch and they delivered gold later,” another IT official told IANS, asking not to be identified.
Source : www.business-standard.com dt : 03/05/2017

21/04/2017

Service charge not mandatory; government issues guidelines

Service charge on hotel and restaurant bills is "totally voluntary" and not mandatory, Hotels and restaurants will not decide on service charge to be levied but it will be at a customer's discretion, the central government said that these guidelines will be sent to states for necessary action.
"The government has approved guidelines on service charge. As per the guidelines, the column of service charge in a bill will be left blank to customers to fill up before making the final payment.

"If there is mandatory levy of service charge, customers can file a complaint in the Consumer Court,”Hefty fines and stringent action against violation cannot be taken at present as the current Consumer Protection Law does not empower the ministry to do so

17/04/2017

Taxman to seek info on deposits made during demonetization in new ITRs
The taxman will seek data on deposits made by an assessee during the demonetization period as part of the new Income Tax Returns (ITRs) that would be notified soon for the assessment year 2017-18
Officials said the tax department is understood to have introduced a new column for obtaining details of all deposits made by an individual or entity during the demonetization period between November 8 and December 30 last year. Sources indicated that the new column will also be introduced in the simplest form for individuals having salary income, called ITR-1 or ‘Sahaj’

13/04/2017

COMPOSITION TAX UNDER CGST BILL,2017

CGST Bill, 2017 under Section – 10 provides that small taxpayer can opt for the scheme of composition tax instead of opting for paying tax under the regular supply of goods. Here this should be noted that this option is not available to registered person who is providing only service except supply of service mentioned in “clause b of paragraph 6 of Schedule – II”. By opting the composition tax scheme, one can save himself from all the hassle of exhaustive provision of GST Law.
As per Section 2(6), “Aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by person on reverse charge basis), exempt supplies, export of goods or services or both and interstate supplies of persons having the same PAN, to be computed on all India basis but excludes central tax, State Tax, Union territory tax, integrated tax and cess.
As per Section 10 this scheme is available to registered person only.
Provision of Composition Tax
1. Irrespective of anything contrary contained in this Act but subject to the provision of sub section 3 & 4 of Section9, registered person whose aggregate taxable turnover does not exceed Rs. 50 Lacs in preceding financial year, may opt to pay at fixed rate instead of tax payable by him at the rate prescribed but not exceeding

• 1% of the turnover in the State or Union Territory in case of Manufacturer.
• 2.5% in case of turnover in State or Union Territory in case of supplies referred to clause b of paragraph 6 of schedule – II [supply by way of or part of any service in any other manner whatsoever, of goods, being food, or any other article of human consumption or any drink (other than alcoholic liquor for consumption) where supply of service is for cash, deferred payment or other valuable consideration]
• 0.5% of turnover in state or Union Territory in case of other supplies.
The above limit of Rs. 50 Lacs may be increased by government by way of notification by such higher amount not exceeding Rs. 1 Crore.
2. Registered person may opt for this scheme only if,
 Not engaged in supply of services other than mentioned in clause b of para 6 of Schedule – II.
 Not engaged in supply of goods those are not levible to tax.
 Not engaged in Interstate outward supply of goods.
 Not engaged in supply of any goods through electronic commerce operator who is required to collect tax at source u/s 52.
 Not engaged in the manufacturer of such goods notified by the council.
This provision will be allowed to Registered person only when all registered taxable person under the same PAN opt to follow the same scheme.
3. Permission granted to Registered Person shall be withdrawn on the day when his turnover exceeds Rs. 50 Lacs during the financial year.
4. Person opted under sub section – 1, cannot collect the composition tax from recipient on supplies and cannot take input tax credit.
5. Proper officer if noticed that Registered Person is not eligible for composition tax under section – 1, ask such person to pay penalty in addition to tax due and may apply the provision of sec.73 and 74.
Disclaimer:
The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information set out in the article and any action taken based thereon.

10/04/2017

Linking PAN to Aadhaar is now compulsory. Here's how to do it

If you have not linked your Aadhaar with your PAN on the income tax portal yet, you should not delay it. As per latest circular from income tax (I-T) department, it is now mandatory to provide Aadhaar and permanent account number (PAN) details while filing tax returns.

The rule which will be applicable from July 1, 2017 is aimed at tax evaders who hold multiple PAN cards to escape paying tax. Therefore, after linking both the Aadhaar and PAN, the government hopes to keep tabs on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his Aadhaar card

By linking the two, entities will no longer have to submit their Income Tax acknowledgement to the I-T department, thus saving tax payers a lot of trouble.

When linking, make sure that name, date of birth and gender displayed on the income tax website matches with the detail on your Aadhaar Card. Here’s how to do it:
• The first step towards linking Aadhaar with PAN is to register on Income tax e-filing portal.
• If you are an already registered user on e-filing portal, login to e-filing portal of Income tax department by entering your PAN as User ID, date of birth and password.
• On logging in to the site, a pop up window will appear prompting you to link your PAN card with Aadhaar card.
• You can input your Aadhaar number enter ‘captcha’ code and click on ‘link now’.
• In case you have decided to link Aadhaar with PAN later click on ‘later’ button.
• On logging, if no pop up window appear, go to profile Setting and click on ‘link Aadhaar’.
• Enter your Aadhaar number enter captcha code and click on ‘link Aadhaar’.
• The system will match your name, date of birth and gender with PAN card and Aadhaar database, if detail matches, you will get the message “Aadhaar – PAN linking is completed successfully.”

Around 1.08 crore assessees have Aadhaar-linked PAN but the number is abysmally low as there are over 25 crore PAN card holders in the country, while Aadhaar has been issued to 111 crore people. According to statistics with the tax department, only six crore people file income tax returns at present.
Source : http://www.business-standard.com, Dt : 10/04/2017

Business Standard, India's leading business site for Live Markets, Live BSE & NSE quotes, latest news, breaking news, political news, analysis and opinion on markets, companies, industry, economy, policy, banking and personal finance news and more.

09/04/2017

Taxation
Indirect expenses can be excluded for margin computation; ITAT
In a recent development Income Tax Appellate Tribunal (ITAT) has upheld a taxpayer’s contention of excluding indirect expenses for calculating profit margins. The ITAT also asked the tax department to verify data before considering a company as a comparable.
Swarovski India Pvt Ltd (taxpayer), a fully owned subsidiary of Swarovski International, was engaged in job work and helping with the sale to its associated enterprises (AE). The company also carried out import and sale of crystal and related product.
The company for benchmarking its international transactions pertaining to purchase of consumables and job work charges received selected cost plus method (CPM) and computed gross mark-ups at 120. The tax officers took a different view however.
Around 94% of which was recomputed by the transfer pricing offer by including certain other indirect expenses in the cost. The transfer pricing officer also excluded two comparable out of the 19 selected by the company due to “unavailability of data”. Thereafter tax department demanded a tax of Rs 1.5 Crore.
The company challenged this with CIT (A) and managed to get a favorable outcome. The revenue department appealed before the ITAT. The ITAT confirmed the findings of CIT (A) that exclusion of certain expenses like depreciation, repairs and maintenance could not be directly linked with the taxpayer’s distribution activity while computing the gross profit mark for applying CPM.
“For the sake of the same the ITAT relied on the provisions of rule 10 B of the income tax rules 1962. The given ruling clearly provides to consider the expenses which can have a direct nexus with or can be directly attributable to the taxpayer’s business activities of production and distribution.” Nangia & Co, a tax consultancy said.
• Source : www.economictimes.indiatimes.com dt. 20/03/2017

Economic Times India's Leading Business Newspaper offers Business News, Financial news, Stock/Share Market News, Economy News, Loans & Banking News, Live Stocks and News & Investment analysis on Mutual Funds, Gold, Forex and Real Estate.