Business Incorporation Financial Management Services

30/11/2017

How to make corrections in voter’s card

http://www.nvsp.in

16/09/2017

How to File Nil GSTR2 Return?

Nil GSTR2 return should be filed by persons having GST registration without any purchase transaction during a month. All taxpayers registered under GST are required to file monthly GST returns irrespective of sales, profitability or business activity. Hence, on obtaining GST registration, taxpayers must file GSTR2 return, even if there is no business activity. In this article, we look at the procedure for filing nil GSTR2 return.

When can nil GSTR2 return be filed?

Nil GSTR2 return can be filed when the taxpayer did not receive any inward supplies during a month. Hence, if there were no purchases during a month, nil GSTR 2 return can be filed.

Do I have to file nil GST return even if there is no turnover?

Yes, nil GST return must be filed by all taxpayers even if there is no business activity, sales or purchases. If GST returns are not filed, a per day penalty of Rs.100 will be applicable.

Procedure for Filing Nil GSTR2 Return

If you are using LEDGERS GST Sofware, you can file GSTR2 return from the software itself. In case you would like to manually file nil GSTR2 return, you can follow the below-mentioned steps:

Procedure for filing nil GSTR1 return.

Step 1: Login to your GST Account

Login to your GST account using GST user id and password on the GST Portal.

Step 1 – Login to GST Portal
Step 2: Select the return filing month

From the drop-down menu, select the return filing month and click on search.

Step 3: Click on auto-drafted GSTR2A

GSTR2A contains the auto-populated part of GSTR2 return. Before filing nil GSTR2 return, ensure that there are no auto-populated invoices or credit/debit notes in GSTR2A.

Step 3 – Verify the Auto Drafted GSTR2A

Step 4: Verify details in the aut0-drafted GSTR2A

Most of the data for GSTR2 return filing is aut0-populated on the GST portal based on GSTR1 returns filed by all taxpayers. Hence, if a person registered under GST mentioned in GSTR1 return that items were supplied to your GSTIN, then the respective B2B invoice, credit/debit note amendments and TDS/TCS credit would be shown under GSTR2A.

Step 4 – GSTR2A dashboard

In the case of nil GSTR2 return, the auto-drafted GSTR2A should not have any information or record as shown below.

Step 4A – Ensure there are no records in GSTR2A

Step 5: Begin preparing GSTR2

Once you have verified that there is no auto-populated data, go back to the returns dashboard and click on prepare GSTR2 online as shown below.

Step 5 – Click on Prepare GSTR2 Online

Step 6: Ensure that GSTR2 return is nil

In the GSTR2 summary, ensure that there is no data and all sections of GSTR2 return is nil as shown below

Step 6 – Verify GSTR2 Return Summary

Step 7: Download and preview the GSTR2 Return

Once you have verified that GSTR2 return does not contain any information, click on the preview button to download GSTR2 summary in pdf format.

Step 8: Submit the nil GSTR2 return

Once you have verified that the GSTR2 return is nil, click on submit to file the GSTR2 return. Once the nil GSTR2 return is filed, you will not be able to rectify. Once the return is submitted, click on file GSTR2 with DSC or file GSTR2 with EVC to complete the GSTR2 return filing process.

Step 8 – Submit Nil GSTR2 Return

All the best.

12/09/2017

Beware of Aadhaar Enrolment centres duping people

Aadhaar centres in several places are continuing to illegally charge people for registering their Aadhaar or updating details. The enrollment of Aadhaar is supposed to be free and the official fee for changing one’s details is only Rs 25.

Many government authorised and private centres across the country are allegedly duping people by charging them something between Rs 100-500 for the same.

Since December last year, close to 6,000 operators blacklisted for overcharging Aadhaar applicants. Incidents of overcharging were reported primarily from Delhi NCR, Tamil Nadu’s capital Chennai and across Jharkhand.

UIDAI has increased the penalty for violation of stipulated guidelines from Rs 10,000 to Rs 50,000 and it has come into effect since July.

Actual aadhaar charges are listed below –

Aadhaar Charges New enrollment: Free

Biometric update for children at age 5 and 15: Free

Biometric update of registered adults: Rs 25

Demographic update (name, address, mobile number, etc.): Rs 25

Finding Aadhaar and black-and-white printout: Rs 10

Finding Aadhaar and Colour printout: Rs 20

Beware of fraud....

02/09/2017

Online Udyog Aadhaar Registration

With the view to promote ease of doing business, the Ministry of MSME has come out with a one page Udhyog Aadhaar Memorandum, which can be filled now on by the micro, small and medium enterprises online. Existing businesses with MSME registration or Small Scale Industry registration are not required to obtain Udyog Aadhaar. However, they may also obtain a Udyog Aadhar, if they desire so.

Udyog Aadhaar Registration

The online Udyog Aadhaar registration process has been created with an aim to encourage online filing of Entrepreneurs Memorandum (also known as MSME registration) for Micro, Small and Medium Enterprises. The online Udyog Aadhaar registration process will simplify the registration process with an online and simple one page registration form. In the form, the MSME will self certify its existence, bank account, business activity details, employment and ownership details and other information.

Documents and Information Required for Online Udyog Aadhaar Registration

1. Aadhaar Number– 12 digit Aadhaar number issued to the applicant.
2. Name of Owner– The applicant name as mentioned on the Aadhaar Card issued by UIDAI.
3. Social Category – Applicants Caste: General / Scheduled Caste / Scheduled Tribe / Other Backward Castes. The proof of belonging to SC, ST or OBC may be asked by appropriate authority, if and when required.
4. Name of Enterprise– Name of the legal entity to conduct business. One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number.
5. Type of Organization– Type of Business entity or Legal Entity.
Proprietorship
Partnership Firm
Hindu Undivided Family
Private Limited Company
Co-Operative
Public Limited Company
Self Help Group
Others (Limited Liability Partnership)
6. Postal Address– Address of the business including mobile and email address.
7. Date of Commencement– The date on which businesses was started.
8. Previous Registration Details– Details of previous MSME registration, if applicable should be entered here.
9. Bank Details– Details of bank account of the company including IFSC Code and Bank Account number.
10. Major Activity– Major area of activity of the business – manufacturing or service.
11. NIC Code– The appropriate NIC Code should be entered from the National Industrial Classification (NIC) handbook.
12. Person employed– The total number of people employed in the business.
13. Investment in Plant & Machinery / Equipment– Amount of money invested in terms of machinery and equipment by the business.
14. DIC– Details of the District Industry Center nearest to the business, if required

27/08/2017

Tax Audit for Business
Under the Income Tax Act, certain types of businesses are mandatorily required to obtain a tax audit and maintain the book of accounts. In this article, we look at the tax audit limit for various types of business entities in India.

Tax Audit Limit for Proprietorships
Proprietorship firms involved in carrying on a profession with a gross receipts of more than Rs.50 lakhs must complete a tax audit. Tax audit is mandatory for proprietorship firm involved in doing business, if sales turnover exceeds Rs.2 crores.

Further, a proprietor carrying on a specified profession would be required to maintain the book of account if gross receipts is over Rs.1.5 lakhs in all three previous years. Specified profession under the Income Tax Act includes professions such as:

Legal
Medical
Engineering
Architectural
Accountancy
Technical Consultancy
Interior Decoration
Authorized Representative
Film Artist
In case a proprietor is receiving income from business or profession (other than specified profession), book of accounts must be mandatorily maintained if income exceeds Rs.2.5 lakhs in any one of the three previous years.

In case a proprietor is involved in business, then maintenance of books of account is mandatory if total sales turnover or gross receipts exceed Rs.25 lakhs in any one of the three previous years.

Tax Audit Limit for Partnership Firms
Partnership firms involved in profession with gross receipts of more than Rs.50 lakhs must complete a tax audit. Oartnership firm involved in doing business must complete tax audit, if sales turnover exceeds Rs.2 crores.

Partnership firms involved in carrying on a specified profession would be required to maintain book of accounts as per Income Tax Act, if gross receipts is more than Rs.1.5 lakhs in all three previous years.

In case a partnership firm is receiving income profession (other than specified profession), book of accounts must be mandatorily maintained if income exceeds Rs.2.5 lakhs in any one of the three years previous year.

In case a partnership is involved in business, then maintenance of books of account is mandatory if total sales turnover or gross receipts exceed Rs.25 lakhs in any one of the three preceding years

13/06/2016

Important Amendmentment w.e.f 01.06.2016, if payment consideration ( or any part of it) is received in cash of sale of ANY goods/ provision of any service (exceeding Rs. 2. lac), TCS @ 1% should be deducted: MR A purchases goods from distributor for Rs. 8.00 lac on 10.06.2016, payment of Rs. 795000/- has been made by cheque/RTGS on 11.06.2016, balance 5000/- has been paid in Cash on 12.06.2016. Please note that Seller has to collect TCS @ 1% on Rs. 800000/- ( i.e Rs. 8000/-). This TCS is applicable regardless of the fact whether A is dealer in goods or A purchased for his personal consumption. this new provision is going to seriously affect business cash transactions. Section 206C (1D) ✍ If any part amount is received in cash (even a small sum of say Rs. 100) against a Single Invoice of Rs. 2 Lakh or more, towards sale of goods or services (except in case of jewellery where this limit is 5 lakh) then 1% TCS has to be collected from customer. Further in case of sale of car exceeding Rs. 10 Lakh either in cash or cheque 1% TCS will be collected. These rules are applicable from 1st Jun 2016. Gold jewellery and bullions were already covered since year 2012. Applicable on Single Bill. If single party is having multiple bills each less then 2 Lakh, then any amount collected in cash will not be liable to TCS. If any payment is liable to TDS, then there will be no TCS under this section for the same payment. Even a patient making payment to any hospital is also covered in this rule. Even government hospital is also liable to collect TCS from patients. Definition of buyer and seller is already there in the section. If seller is state and central government department, any company, firm or individual or HUF liable to Tax Audit, then they are liable to collect TCS. It means no cash payment to be made even in part against Single Bill exeeding 2 Lacs, other wise Seller to deduct TCS. Or clients better to prefer each bill below Rs. 2 Lacs.

13/06/2016

DECODING SECTION 206 C SUB SECTION (1D) Analysis of Provision of TCS on cash sale of goods or services : CA AMRESH VASHISHT ,MEERUT

Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery or any other goods (other than bullion or jewellery) or providing any service shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,—
(i) for bullion, exceeds two Lacs; or
(ii) for jewellery, exceeds five Lacs or
(iii) for any goods, other than referred to in clauses (i) and (ii), or any service, exceeds two Lacs THE SELLER Persons who are required to collect TCS as “Seller” are: a) Central Government, b) A State Government or c) Any local authority or d) Corporation or authority established by or under a Central, State or Provincial Act, or e) Any company or f) Firm or g) Co-operative society and also includes h) An individual or a Hindu undivided family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which the good are sold / services are provided.

20 FINE POINTS

1. The seller will collect tax at the rate if sale is made or service is rendered w.e.f 01.06.2016
2. Sale of any goods or any services (other than bullion or jewellery)
3. Tax will be collected at the time of receipt of any amount in cash.
4. Consideration for goods or services exceeds Rs. 2,00,000 in a (single) bill.
5. The limit of Rs.2 lakh would apply for each transaction or bill of purchase or expense separately, and therefore, though all the transactions put together for the year may exceed the limit, if each transaction of purchase or expense is below Rs.2 lakh, the provisions of TCS would not apply.
6 .Out of such consideration, any amount is received in cash, then applicable on full.
7. The seller will collect tax at the rate of 1% of sale consideration
8. The seller will not be obliged to collect the tax, if the buyer has deducted the tax at source from the payment. Thus Provider of a service may not be obliged to collect tax, if the recipient has deducted tax at source. Chapter XVII-B
9.This Rule will be applicable irrespective of the fact whether the buyer is a manufacturer or trader. However, the purchaser can obtain a lower TCS certificate u/s 197 by submitting Form No. 13 to the Assessing Officer.
10.The seller will not be obliged to collect the tax, if the buyer has deducted the tax at source from the payment.
11. Seller/service provider is required to take PAN of the purchaser/recipient of service.The person raising bill shall ensure after verification that PAN has been correctly furnished and mentioned in the bill. If PAN is not available, a declaration in Form No. 60 should be taken from the purchaser/recipient of service.Such a person is required to retain Form No. 60 for a period of 6 years from the end of the financial year in which the transaction is undertaken.
12.The seller will furnish certificate to the buyer stating that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected.
13. Seller shall submit Quarterly statement in Form 27EQ within due dates
14. TCS so collected shall be deposited within 7 days from the close of month of collection to the credit of the Central Government.
15. TCS certificate in form 27D shall be furnished to the collectee within due dates
16. “Statement of Financial Transactions “ has to be furnished in form 61A by all assessee liable to Tax Audit u/s 44AB in case receipt of cash payment exceeding Rs 2,00,000 for sale of goods/services of any nature.
17. If the buyer does not have PAN and has submitted the Form 60, a half yearly return in Form 61 needs to be filed by 30th October and 30th April, for the periods from April-September and October-March. [Rule 114D].
18. Panelty 271CA. (1) If any person fails to collect the whole or any part of the tax as required by or under the provisions of Chapter XVII-BB, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to collect as aforesaid.
19. Panelty 271CA. (2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.]
20. e-TDS / TCS returns through e-filing portal https://incometaxindiaefiling.gov.in

Thanks & Regards

"One can't imagine that any website of government (in india) , specially website like Income Tax/E-filling can be so much fast and excellent. Very Good work by the team who are behind all this. Thanks and keep going."-07/06/2016 "Beautifully Developed, Professionally Designed User friendly Portal. W...

18/12/2015

Permanent Account Number (PAN) quoting is compulsory from 1/1/2016 for the following cash transactions

1.Settling Hotel Bills or Buying Air Tickets for Foreign Travels ... Rs. 50000 and above
2. Non Luxury Transactions ... Rs. 2 lakh and above
3. Purchase of Immovable Property... Rs.10 lakh and above
4. Purchase of Jewellary or bullion .. Rs. 2 lakh and above
5.Payment for cash cards or prepaid instrument... Rs. 50000 and above
6.Purchase of Shares of unlisted Companies .. Rs. 1 lakh and above
7. Open Bank account except Pradhan Mantri Jan Dhan Yogna Accounts
8. Purchase of bank draft/pay order/banker cheque of equal denomination on a single day .. Rs.50000 and above (already in the Act)
9. Payment of Life Insurance Premium in a single year ... Rs.50000 and above
10. Post office deposits limits have been dispensed with.

Please share as much as possible as it will be useful for every citizen of India and other foreign nationals who are carrying out transactions in India.

22/10/2015

Considering a home loan? First know how much you can borrow
http://a.msn.com/r/2/BBmh4q7?a=1&m=EN-IN

In addition to your income multiple factors such as loan to value ratio, your retirement age, your employer’s profile and your co-borrower’s profile determine the amount of money to be lent to you...

08/02/2015

RBI puts rates on hold but indicates easing likely early next year;
It may down from .50% to 1% in the coming financial year.

Read more at: http://www.livemint.com/Politics/lxCrIjzJMUaC9Or7sxRiJN/RBI-keeps-repo-rate-unchanged-in-defiance-of-populist-demand.html?utm_source=copy

RBI puts rates on hold but indicates easing likely early next year; govt hikes excise duty on petrol, diesel

06/06/2014

ROI will not be down for this year..........

Reserve Bank of India Governor Raghuram Rajan on Tuesday left repo-rate - the rate at which the central bank lends to banks - unchanged at 8 per cent. The status quo may have left some people disappointed but Morgan Stanley argues that it is the bitter medicine the struggling Indian economy needs right now.

India's economy grew at sub-5 per cent for the second year in a row last fiscal, marking the worst slowdown in 25 years.

"I think the rates have to be held higher for some more time until the time inflation is seen to be systematically heading towards RBI's comfort zone," Chetan Ahya, chief Asia economist, Morgan Stanley told NDTV.

Mr Ahya argues that higher interest rates will encourage people to save channelize their savings into financial products which can be used to revive India's growth. "You need to have positive real interest rates, you need to encourage people to bring in financial savings into the financial system and then we can use that to push investment and growth.

"If we cut rates and leave real rates negative then it will be counter-productive and will not achieve the objective of taking growth higher," he said.

Real interest rate is the rate which an investor expects after adjusted for inflation rate. In the current scenario, the real interest rate is next to nothing.

Retail inflation in April was at a three-month high of 8.59 per cent while SBI, the country's largest lender, offers an interest rate of 9 per cent on 1-2 year fixed deposits.

Morgan Stanley expects inflation to come down to 7.5 per cent by March 2015 and it expects RBI to cut rate only early next year. "We think that rate cut will more likely be taken up around that time of March-April 2015 when the room for rate cuts will open up," Mr Ahya said.

The RBI hopes to bring down retail inflation to 8 per cent by January 2015 and to 6 per cent in the following year.

Mr Ahya was also skeptical of arguments that a rate cut is essential to boost India's growth.

"I don't know why we have this debate in India all the time...if you are going to leave inflation higher and real rates negative, that goes against the same government's interest as far as their promise to the society at large and people at large are concerned to give lower inflation," Mr Ahya said.

The financial markets do not expect a very quick turnaround in either growth or inflation, he pointed out.