GST ONLINE RETURN FORM PROCEDURES

1 comments Wednesday, August 17, 2016
As the GST Bill is about to come into action by the next year, the government of India is taking necessary steps to make sure that the GST regime works fine. The Government will introduce eight forms namely GSTR-1 to GSTR-8 that will be required to file the GST Tax returns in India. These forms will be collectively used to take the assesses details and offer multiple options to file online return.

As per department issue some draft form for return purpose. These are as below:

*1. GSTR-1 (Sales Register)*

•This is a sales register of goods and services, here we can enter the details data of of sales . If a persons sells his goods and services to a register person within the state in that case he is liable to charge CGST and SGST on the transaction. At the same point of time if the person sells his goods and services to other state he is liable for IGST charge on him.

•Here of each transaction it is important to classify the goods or services with his SAC or HSN code because these codes will identify the nature of the transaction.

•Again for avoidance of the black money or hawala transaction in GST returns, there is a  need to identify  some important transaction like inter state transaction worth Rs. 250000/- or more.

*GSTR- 2 (Purchase Register)*

•This is a comprehensive purchase register. Here we can enter the data of both purchase of service and goods.

•In GSTR-2 the data of the goods purchase from register dealer including debit/credit note will automatically populated as the respective dealers upload there sales register on due date. Due to this we can match our purchases against the sales register and the impact of this in current scenario where tax credit mismatch is hard to match and a time taking process, in GST there we will check our data as per seller return so mismatch issue resolve will solve easily

•As well as here we will amend our purchase bill too as we received in earlier periods

•Here a separate details information will be required for input service distributors

•Due date of filling the return is 15th of the next month. But we can upload our data on daily, fortnight, weekly too. Soon the last date of return filing the workload should be lesser than before

*GSTR-3 (Monthly Return Form)*

•Now the time taking process of return filling is over now. In GST return maximum data of this return is auto populated from purchase and sales registers. Only adjustment entries and challan information will enter after these entries

•Here cash ledger (tax deposit in cash and TDS/ TCS) will made separately for CGST , SGST and IGST

*GSTR-4 (Quarterly return for compounding dealers)*

•This return is a quarterly return filled by the compounding dealer (as per draft GST law the assesses whose turnover is less than Rs. 50 lacs and there is no interstate transaction ) is liable to file return on and before 18th of the month after the quarter

•In this return, data will be automatically populated after filing of GSTR-1
*GSTR-5 (Return file by the Non-Resident)*

•This will be a monthly return filed by the non –resident within 18th day after end of the month and within the 7 days after expiry of registration

•In this return HSN/SAC code should be mention because these are classify the transaction as a sales and purchase of goods and services

*GSTR-6 (Return for Input Service Distributor)*

•This return will be filed by the Input Service Distributors within 15 days after end of the month

•In this return form input service distribution ledger will be maintained. In this ledger credit of CGST, SGST, IGST  will maintain separately of each tax amount

*GSTR-7 (TDS Return)*

•Tax deductor will be liable to file this TDS return within the 10 days after end of the month
•This return form is almost similar to TDS return of income tax (26Q/24Q etc) as in this return deductee information and transaction information is mention with the related challan in which the TDS amount is paid to department

*GSTR-8 (Annual Return)*

•This return form will be filed on or before 31st December of the next financial year

•In this return the total annual returns information will be matched by the department with the monthly /quarterly return filled by the assesse

•In this return auditors information will submitted

•In this return all the transaction will bifurcated within goods and services. This bifurcation should be match with the HSN/SAC code given by the assessee in his monthly/ quarterly return

Read On

No disallowance of ITC for mere technical defect in VAT invoice-HC

1 comments Saturday, August 6, 2016
The Hon'ble Punjab & Haryana High Court in a crucial decision has held that input tax credit cannot be disallowed merely for a technical defect in the VAT Invoice such as non mentioning of words " “Input Tax Credit is available to a person against this copy” as per Rule 54 of the Punjab VAT Rules, 2005.
Read On

TCS to apply only on cash portion of sales transaction CBDT clarifies

2 comments Friday, June 24, 2016
Welcome clarification by CBDT on TCS on Cash Sale.

CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
Read On

Facility of efiling of returns extended to Punjab luxury tax and Entertainment tax

0 comments Wednesday, June 8, 2016
GOVERNMENT OF PUNJAB 

DEPARTMENT OF EXCISE AND TAXATION 

PUBLIC NOTICE

 Kind Attention: Dealers/Chartered Accountants/Lawyers/Other Stakeholders
Read On

Assessee cannot be asked to reverse ITC for non payment of tax by selling dealers

0 comments Tuesday, June 7, 2016
In a PATH BREAKING JUDGEMENT the Madras High Court has held that  Assessee cannot be asked to reverse input tax credit due to non-payment of taxes by the selling dealers.

Sri Lakshmi Textiles Vs. the Commissioner of Commercial Taxes and Others 

Read On

Scope of prima facie adjustments u/s 143(1) of Income Tax Act enhanced

2 comments Saturday, May 28, 2016
The Finance Act, 2016 has made a very important amendment to section 143(1) of Income Tax Act, 1961, whereby the scope of prima facie adjustments u/s 143(1) has been enhanced while processing the returns. The following four sub-cluases and two provisos to the clause (a) of Section 143(1) have been added to allow for the following adjustments also while processing the returns:

Read On

No entry tax on sugar in Punjab till date

1 comments Wednesday, May 18, 2016
There has been a lot of confusion off late about the levy of entry tax on import of sugar from outside the State of Punjab. The Excise and Taxation Department has been recovering entry tax on sugar imported from outside the state of Punjab.

The new entry tax law legislated by Punjab Government I.e. Punjab Development of trade commerce and Industries (Validation) Act is under challenge before the Punjab & Haryana High Court in CWP no 26998 of 2015. In the said Writ petition while passing an interim order on 27.04.2016 not only the stay on recovery of entry tax on sugar levied under an earlier ordinance I.e Ordinance no 1 of 2015 has been continued by the Hon'ble High Court but also it has been conceded by the Government councel in the court that no notification for leving  entry tax on sugar under new law (i.e validation Act) has been issued till date.

Thus it is very much clear that no entry tax is leviable on sugar imported from outside State of Punjab till date. Hence any recovery made in this regard at the check post by the Department is illegal.
Read On

No local VAT on goods purchased inter-state or in the cource of import in works contracts-SC

1 comments Tuesday, May 3, 2016
The Hon’ble Supreme Court delivering very important judgment with regard to taxability of inter-state works contract. In the case of Commissioner, Delhi VAT  vs ABB Ltd., it has been held that in case the goods are purchased from other States or are imported from outside the country for the purpose of only using in the works contract, then the transaction would be covered under the Central Sales Tax Act and not liable to tax under local VAT act. 
Read On

Sales Tax; Time for assessment cannot be extended when the assessment has already become time barred: SC

1 comments Monday, March 7, 2016

Supreme Court, in State of Punjab Vs. M/s. Shreyans Indus Ltd., has held that power of the Sales Tax Commissioner to extend the time to pass an order on assessment is to be exercised before the normal period of assessment expires.Three Judge Bench of the Apex Court comprising of Chief Justice of India T.S. Thakur, Justices A.K.Sikri and R. Banumati dismissed the appeals by Revenue challenging a judgement of Punjab and Haryana High Court.
Read On

Some of the major changes proposed in the Union Budget 2016.

2 comments Tuesday, March 1, 2016


BUDGET 2016 PROPOSALS

INCOME DECLARATION SCHEME 2016

·         Government to bring Income Declaration Scheme 2016, to give opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and pay tax. Scheme will start from 1st June 2016 and will remain open till date to be notified. Tax @ 30%, Surcharge @ 7.5% and penalty @ 7.5% (Total 45% ) will be charged by the Government on the undisclosed income. The tax will have to be paid on or before the date to be notified by the Central Govt.

TAX RATES

·         No change in personal income tax slabs has been proposed. However Rebate of Rs.5000/- in tax will be allowed to individuals earning upto Rs.500000/- per year. Earlier this rebate was Rs.2000/-.

PRESUMPTIVE TAXATION SCHEME

·         Turnover limit for Presumptive Taxation for Businesses has been increased from Rs.1 Crore to Rs. 2 Crore. Net Profit @ 8% will have to be declared in the Income Tax Return, if Sale is less than 2 Crores, otherwise Tax Audit will apply. Firms will have to declare income @ 8% of the Sales and pay tax on the same. Salary and interest to partners will not be allowed as deduction, as was being allowed earlier.

·         Any person paying tax under presumptive taxation scheme (section 44AD) will have to pay tax under the scheme for a continuous period of 5 years. If he opts out of the scheme during any year, then the option to pay tax on presumptive basis will not be allowed to him for next 5 years, and he will have to maintain proper books of accounts and get them audited during those 5 years.

·         Presumptive Tax introduced for Professionals like doctors, engineers, chartered accountants, architects. Professionals will have to declare income @ 50% of Gross receipts, otherwise will have to get the books of accounts audited. Tax Audit Limit for professionals increased to Rs. 50 lakhs.

 

ADVANCE TAX & RETURNS

·         Advance Tax will now have to be paid in four installments by all assessees – 15th June, 15th September, 15th December, 15th March. Earlier these installments were only for the Companies.

·         If Income Tax Return (in which Refund is due) is filed late, then department will not pay interest for the delayed period.

·         Now Income Tax Return can be filed only till one year from the end of the Financial Year. Earlier this limit was 2 years.

·         Income Tax Return which was filed after the due date could not be revised. Now the late filed return can also be revised if there is any mistake in the original return.

·         Earlier Dividends were exempt in the hands of the recipients. Now Dividend recipient will be liable to pay tax @ 10% if dividend received during the year is more than 10 lakhs.

TDS/TCS

·         Threshold limit for deduction of TDS on Commission has been increased from Rs.5000/- to Rs.15000/-. TDS on Commission reduced from 10% to 5%.

·         Threshold limit for deduction of TDS on Contract (Section 194C) increased to Rs.100000/- per year from Rs.75000/-.

·         Recipients of  Rental Income can also file Form 15G/15H for non deduction of TDS, if total income is below taxable limit.

·         TCS @ 1% introduced on Sale of any Goods or Services in Cash exceeding Rs.2 lakhs. If any Goods/Services are sold and payment is received in Cash exceeding Rs. 2 lakhs, then TCS will have to be collected from the person and paid to the government on monthly basis.

 

SERVICE TAX

·         Krishi  Kalyan Cess @0.5% introduced. W.e.f. 1st June 2016, effective rate of service tax will be 15% (Service Tax 14%, Swach Bharat Cess 0.5%, Krishi Kalyan Cess @ 0.5%).

·         Annual Return of Service Tax introduced. Earlier there were only two half yearly returns of service tax. Now there will be three returns -  2 Half yearly and one annual.

·         Delayed payment of Service Tax, Interest @ 15% will have to be paid. However if Service Tax is collected but not paid to Government, then interest @ 24% will have to be paid 

Read On

Presumptive income scheme under budget 2016

2 comments

I. Amendments to section 44AD:

The existing provisions contained in the said section (applicable to individual, HUF or partnership firm) provides that notwithstanding anything to the contrary contained in section 28 to 43C, in the case of an assessee engaged in an eligible business having total turnover or gross receipts not exceeding one crore rupees, a sum equal to 8% of the total turnover or gross receipts, or, as the case may be, a sum higher than the aforesaid sum declared by the assessee in his return of income, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profit and gains of business or profession".
Further, under the existing scheme as per proviso to section 44AD(2), where the eligible assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) of section 44AD subject to the conditions and limits specified in section 40(b).
Read On

The Indirect Tax Dispute Resolution Scheme, 2016 - A Step Towards Resolving Pending Litigations

1 comments

1.0 Introduction:
The Finance Bill, 2016 has proposed THE INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016 for indirect tax disputes. The scheme is new to the indirect tax laws and is proposed to aimat resolving the litigations pending under the said Acts in a peacefull manner. The scheme is optional and provides relief to those litigants who want to buy peace of mind. The scheme is analysed as follows:

Read On

10 Big Tax-Related Announcements In Budget 2016

1 comments
Finance Minister Arun Jaitley did not change income tax slabs in his third Budget, but he did tweak some deductions and announced multiple new cesses, which will impact tax liability for the common man.
Here is a complete list of new tax measures announced in Budget 2016:
Read On

Pilot project for online issuance of ‘C’ forms for dealers of District Mohali

0 comments Friday, January 22, 2016

Public Notice

Subject: Launching of Pilot Project for online issuance of ‘C’ forms in SAS Nagar, Mohali.

Kind Attention : Dealers/Lawyers/Chartered Accountants/Other Stakeholders of S.A.S Nagar Mohali

Read On

Services by Excise and Taxation Department brought under Punjab Right to Service Act, 2011

0 comments Sunday, January 17, 2016
The Government of Punjab has notified the additional services, stipulated time limit, designated officers, first appellate authorities and second appellate authorities for the purpose of Section 3 of the Punjab Right To Service Act, 2011. This new notification has also brought many services provided by Excise and Taxation department Punjab such as registration, cancellation, issuance of refund/penalty/assessment orders etc, under the ambit of Right to Service Act, 2011.
Read On

Punjab Govt. promuglates new ordinance on entry tax with retrospective effect from 06.05.2015

0 comments Tuesday, December 15, 2015
The Punjab Government has promuglated new ordinance namely THE PUNJAB DEVELOPMENT OF TRADE, COMMERCE AND INDUSTRIES (VALIDATION) ORDINANCE, 2015 to levy entry tax on the goods specified in the schedule apended to such ordinance. The schedule appended to such ordinance contains only one item i.e. sugar.
Read On

VAT on all automobiles reduced to 12% under Punjab VAT Act, 2005

1 comments Thursday, November 19, 2015
The Punjab Government, Excise and Taxation department, Punjab has reduced VAT on all automobiles (i.e. commercial vehicles, passenger vehicles, three wheelers, two wheelers) from 13% to 12%. That means now all automobiles will be taxable @ 13.2%(after adding surcharge of 10% as applicable u/s 8-B of PVAT Act, 2005.)
Read On

Due date for efiling of VAT-20 of year 2014-15 extended to 30th November 2015

0 comments


GOVERNMENT OF PUNJAB 

DEPARTMENT OF EXCISE & TAXATION

PUBLIC NOTICE


KIND ATTENTION: DEALERS/CHARTERED ACCOUNTANTS/LAWYERS/OTHER STAKEHOLDERS

This is to inform all the concerned that the last date of e-filing of VAT-20 for the year 2014-15 has been extended till 30th November, 2015. 

Dated: 19th November, 2015

 Excise & Taxation Commissioner, Punjab
Read On

Mere bonafide mistake in calculating reversal of ITC does not attract penalty-Punjab VAT Tribunal

0 comments Tuesday, November 17, 2015
In one of my cases namely M/s Shree Ganesh Roller Flour Mills Akalpur Road, Phillaur, District Jalandhar Versus The State of Punjab. Appeal No. 38 of 2015 decided on 10.09.2015 it has been decided by Punjab VAT Tribunal that mere bonafide mistake in calculating reversal of ITC does not attract penalty. The matter remanded back to DETC(A) for passing a speaking order considering the observations of the Tribunal.
Read On

Amendment to Section 2(14)(III)(b) relating to measurement of distance aerially to apply prospectively

1 comments Friday, October 9, 2015

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

NEW DELHI

  

 

Circular No. 17/2015

Dated : 06th October, 2015

 

  

SUBJECT : MEASUREMENT OF THE DISTANCE FOR THE PURPOSE OF SECTION 2(14)(III)(B) OF THE INCOME-TAX ACT FOR THE PERIOD PRIOR TO ASSESSMENT YEAR 2014-15.

 

 

"Agricultural Land" is excluded from the definition of capital asset as per section 2(14)(iii) of the Income-tax Act based, inter-alia, on its proximity to a municipality or cantonment board.  The method of measuring the distance of the said land from the municipality, has given rise to considerable litigation. Although, the amendment by the Finance Act  2013  w.e.f. 1.04.2014 prescribes the measurement of the distance to be taken aerially, ambiguity persists in respect of earlier periods.

 

 

2. The matter has been examined in light of judicial decisions on the subject. The Nagpur Bench of the Hon. Bombay High Court vide order dated 30.03.2015 in ITA 151 of 2013 in the case of Smt. Maltibai R Kadu has held that the amendment prescribing distance to be measured aerially, applies prospectively i.e. in relation to assessment year 2014-15 and subsequent assessment years. For the period prior to assessment year 2014-15, the High Court held that the distance between the municipal limit and the agricultural land is to be measured having regard to the shortest road distance. The said decision of the High Court has been accepted and the aforesaid disputed issue has not been further contested.

 

 

3. Being a settled issue, no appeals may henceforth be filed on this ground by the officers of the Department and appeals already filed, if any, on this issue before various Courts/ Tribunals may be withdrawn/ not pressed upon.  This may be brought to the notice of all concerned.

 

(D S CHAUDHRY)

CIT (A & J), CBDT, New Delhi.

Read On
Subscribe to: Posts ( Atom )