Tax India Services Pvt. Ltd.

02/08/2020

*GST Alert: July 2017 data removed from GST Portal:*

1. GST Portal is notified vide Section 146 of the CGST Act' 2017 which facilitates all the compliance support under GST.

2. Now today on 1st August 2020 Return Data for July 2017 has been removed from GSTN portal not available for viewing

3. No were in law it is mentioned that GSTN would preserve data for 3 Years only but while viewing the Electronic Liability Register the Portal is showing "Maximum period for viewing ledger is 3 years"

4. Now its high time to start taking data backup for earlier period as it would be quiet helpful during the assessment stage.

5. This action might be taken for lack of storage space but no intimation was given prior.

29/02/2020

Fortunately for the husband, he was able to retrieve crucial documents from RTI to prove himself as innocent. Read More Details

01/02/2020

*TAX CONNECT LIVE: BUDGET 2020*

*MAJOR TAX PROPOSALS*

1. *TAXPAYERs' CHARTER* in various Acts like Companies Act, for removing *harassment* of and protecting Taxpayers.

*DIRECT TAX-*

1. *VIVAD SE VISHWAS SCHEME IN INCOME TAX* - No interest & penalty if tax paid by 31st March 2020. Some additional amt. By 30th June.

2. Option to Individual without around 70 exemptions/ Deductions (With 1.5L Ch VIA Deductions) -

Till 5L - No Tax
5L - 7.5L - 10%
7.5L - 10L - 15%
10L - 12.5L - 20%
12.5L - 15L - 25%
More than - 30%

3. Prefiled tax return for individuals in new regime

4. *Dividend Distribution Tax - scrapped for companies* . Dividends to be charged to recipients.

5. New Electricity Generating Companies Corp Tax Rate 15%

6. 100% Tax exemption to foreign investment in priority sector.

7. Start Ups - ESOPs to employees to be taxable after 5 years or sale or as per other conditions.

8. Turnover limit for exemption for Start Ups now 100 Cr.

9. Options for Co-operative Socities: Co-operatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.

10. TAX AUDIT THRESHOLD LIMIT -

- Increased to 5 Cr. But with business with cash transaction of not more than 5%

11. Tax Holiday to developers of affordable housing extended by 1 year.

12. Limit of difference with circle can be 10% now (up from 5%)

13. Faceless *Appeals* on lines of Faceless *Assessments*

Thanks & Regards
Gagan Dhingra
Tax Consultant
Founder & Managing Director
Tax India Services Pvt. Ltd.

21/08/2019

30/07/2019

Which return to OPT under new scheme of filing returns under GST-

The following are the criteria for all taxpayers to opt for filing of new GST Returns:

*SAHAJ:-* (RET-02)

Sahaj return may be selected if
• Aggregate turnover during the preceding financial year upto Rs. 5.00 Cr AND
• Make supplies only to consumers and unregistered persons (B2C) OR
• Have inward supplies on which tax is payable on reverse charge basis (RCM)
• No e-commerce supplies allowed.

You will be required to:
• Pay tax liabilities on Monthly basis in form GST PMT-08.
• Furnish outward supplies details on continuous basis and cannot claim provisional ITC on Missing invoices.
• File Return on Quarterly basis in GST RET-2.

*SUGAM:-*

Sugam return may be selected if

• Aggregate turnover during the preceding financial year upto Rs. 5.00 Cr.
• Make outward supplies to consumers, unregistered persons and registered persons (B2B) and (B2C)
• Have inward supplies on which tax is payable on reverse charge basis (RCM)
• No e-commerce supplies allowed.

You will be required to:
• Pay tax liabilities on Monthly basis in form GST PMT-08.
• Furnish outward supplies details on continuous basis and cannot claim provisional ITC on Missing invoices.
• File Return on Quarterly basis in GST RET-3.

*QUARTERLY NORMAL:-*
Quarterly return may be selected if

• Aggregate turnover during the preceding financial year upto Rs. 5.00 Cr.
• Make additional outward supplies apart to consumers, unregistered persons and registered persons. (All type of supplies).
• Have additional inward supplies apart form registered and unregistered persons (including reverse charge) i.e. all type of supplies.

You will be required to:
• Pay tax liabilities on Monthly basis in form GST PMT-08.
• Furnish outward supplies details on continuous basis and can claim provisional ITC on Missing invoices.
• File Return on Quarterly basis in GST RET-1.

NOTE:- Quarterly filing frequency can be opted only by the taxpayer having aggregate turnover upto Rs. 5 cr in the preceding financial year.

05/07/2019

*Budget Highlights (Taxation)*

🌴FM Nirmala Sitharaman has thanked taxpayers for their valuable contribution through taxes for all-round development of the country.

🌴She quotes a verse in Tamil -- 'Just a few mounds of rice cooked from a small piece of land is enough for the elephant. But if the same elephant enters a paddy field it will end up trampling more than it would consume'.

🌴Explaining the verse, she says the government does not intend to 'trample' anybody like the elephant.

🌴Direct tax revenue has grown 78 percent from 2014 to 2019.

🌴Currently, 25 percent corporate tax rate is applicable to companies with an annual turnover of up to Rs 250 crore. This has been extended to companies with turnover of up to Rs 400 crore. Only 0.7 percent companies will remain outside of this 25 percent rate.

🌴Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer.

🌴To resolve the issue of Angel Tax the startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny.

🌴FM Nirmala Sitharaman proposes measures to carry forward and set off losses for startups and increase in period of exemption of capital gains from the sale of residential house for investment in startups up to March 2021.

🌴An additional deduction of Rs 150000 on interest on loans borrowed under affordable housing until 2020 (upto 45 Lakhs)

🌴Interchangeability of PAN and Aadhaar - More than 120 crore Indians now have Aadhaar. Sitharaman proposes to make the two documents interchangeable so that Aadhaar can be used for verification with no requirement for PAN.

🌴The Securities Transaction Tax or STT is proposed to be restricted to the difference between settlement and strike price of options.

🌴Our government has taken number of initiatives to promote digital payments. FM says to discourage the practice of making business payments in cash the government proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account, she says.

🌴BHIM, UPI, Aadhaar Pay, NEFT, RTGS can be used to promote less cash economy. Business establishments with annual turnover of Rs 50 crore will have to use these modes of payments with no charges or merchant discount rates will be imposed on customers or merchants. RBI and banks will absorb these costs, she says.

🌴 # Taxes - In view of rising income levels, a surcharge will be levied on individuals with taxable income of Rs 2 to 5 crore, and Rs 5 cr and above. The effective tax rate for these categories will increase by around 3% and 7%, respectively.

GST rates have been eased with a relief of Rs 92,000 crore provided during the year. Further measures are being worked out to ease filing returns and tax compliance. A simplified single monthly return is now being ruled out. Taxpayers with an annual turnover of less than Rs 5 crooe will have to file only quarterly returns, she says.

Regards
Gagan Dhingra
Indirect Tax Consultant
9711827602