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GOODS &
SERVICES TAX UPDATE – 4
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CENTRAL GOODS &
SERVICES TAX (CGST) - Rate
CGST
Rate Schedule of Goods notified with effect from 01.07.2017
Central Government vide Notification
No. 01/2017-Central Tax (Rate), dt. 28-06-2017 has w.e.f 1st
July 2017 notified CGST rates for intra-State supplies of goods categorized into
six schedules as follows:
Further, the following has also been
notified vide different notifications:
[Notification
No. 01/2017-Central Tax (Rate), dt. 28-06-2017, Notification
No. 02/2017-Central Tax (Rate), dt. 28-06-2017, Notification
No. 04/2017-Central Tax (Rate), dt. 28-06-2017 & Notification
No. 05/2017-Central Tax (Rate),dt. 28-06-2017]
CGST
Exemption limit for Reverse Charge transactions notified
Section 9(4) of the CGST Act 2017
provides that central tax in respect of the supply of taxable goods or
services or both by a supplier, who is not registered, to a registered person
shall be paid by such person on reverse charge basis as the recipient and all
the provisions of this Act shall apply to such recipient as if he is the
person liable for paying the tax in relation to the supply of such goods or
services or both.
Thus in order to provide marginal relief
to Registered Taxable person, Central Government vide Notification
No. 08/2017-Central Tax (Rate), dt. 28-06-2017 has w.e.f 1st
July 2017 exempted supplies of goods or service or both received by a
registered person from any or all such unregistered supplier(s) if the
aggregate value of such supplies does not exceed Rs. 5000 in a day.
Supplies to a TDS deductor by an
unregistered supplier exempt
Section 51 of the CGST Act, 2017
requires a department or establishment of the Central Government or State
Government, local authority, Governmental agencies or such persons or
category of persons as may be notified by the Government on the
recommendations of the Council to deduct TDS @ 1% from the payment made or
credited to the supplier of taxable goods or services or both, where the
total value of such supply, under a contract, exceeds Rs. 2,50,000.
Further section 9(4) of the CGST Act,
2017 requires a registered person to pay taxes under reverse charge upon
purchases made from unregistered suppliers. In this regard, Central
Government vide Notification
No. 09/2017-Central Tax (Rate), dt. 28-06-2017 has w.e.f 1st
July 2017 has exempted intra-State supplies of goods or services or both
received by a deductor under section 51 from an unregistered supplier. This
is subject to the condition that TDS deductor is not liable to be registered
otherwise then by way of Compulsory registration under CGST Act, 2017.
Exemption
to dealers operating under Margin Scheme
Central Government vide Notification
No. 10/2017-Central Tax (Rate), dt. 28-06-2017 has
exempted intra-State supplies of second hand goods received by a registered
person (who deals in buying and selling of second hand goods and pays the
central tax on the value of outward supply of such secondhand goods) from an
unregistered supplier from the whole of the central tax leviable thereon
under reverse charge mechanism.
In other words, the dealers operating
under Margin Scheme making purchases from unregistered dealers are exempted
from payment of tax under reverse charge.
CGST Rate Schedule of Services
notified with effect from 01.07.2017
Central
Government vide Notification
No. 11/2017-Central Tax (Rate), dt. 28-06-2017 has w.e.f 1st
July 2017 notified CGST rates for intra-State supplies of services subject to
specified conditions.
Further, the following has also been
notified vide different notifications subject to specified conditions:
[Notification
No. 11/2017-Central Tax (Rate), dt. 28-06-2017, Notification
No. 12/2017-Central Tax (Rate), dt. 28-06-2017 & Notification
No. 15/2017-Central Tax (Rate),dt. 28-06-2017]
Goods or services on which tax will be
payable under reverse charge mechanism under CGST Act
Central
Government vide Notification
No. 04/2017-Central Tax (Rate), dt. 28-06-2017 has
w.e.f 1st July 2017 provided that CGST on needs to be paid on the
reverse charge basis completely (100%) by the recipient of such
goods. The detailed list of such goods is as follows:
Central
Government vide Notification
No. 13/2017-Central Tax(Rate), dt. 28-06-2017 has w.e.f 1st
July 2017 provided the category of services on which CGST needs to be paid on
the reverse charge basis completely (100%) by the recipient of
such services. The detailed list of such services is as follows:
Categories of services on which tax
will be payable by Electronic Commerce Operator
Central Government vide Notification
No. 17/2017-Central Tax (Rate), dt. 28-06-2017 has
notified the following category of services for which CGST needs to be paid
by the electronic commerce operator –
|
Wednesday, July 5, 2017
Tuesday, July 4, 2017
1. Institute running courses to enable students to seek employment would be exempt from service tax
Frankfinn Aviation Services (P.) Ltd. v. Commissioner of Service Tax, New Delhi.
➡2. Govt. notifies definition of a start-up and process of its recognition
NOTIFICATION NO. GSR 180(E) [F.NO.5(91)/2015-BE.I],DATED 17-2-2016
{SEE ALSO NOTIFICATION NO. GSR 401(E) [F.NO.5(91)/2015-BE.I], DATED 21-4-2017 FOR AMENDMENT}
[RESCINDED BY NOTIFICATION NO. GSR 501(E) [F.NO.5(91)/2015-BE-I], DATED 23-5-2017]
➡3. Unregistered dealers can claim tax credit for goods purchased before July 1, 2017 on basis of Credit Transfer doc
Notification No. 21 /2017 - Central Excise (N.T.)
Frankfinn Aviation Services (P.) Ltd. v. Commissioner of Service Tax, New Delhi.
➡2. Govt. notifies definition of a start-up and process of its recognition
NOTIFICATION NO. GSR 180(E) [F.NO.5(91)/2015-BE.I],DATED 17-2-2016
{SEE ALSO NOTIFICATION NO. GSR 401(E) [F.NO.5(91)/2015-BE.I], DATED 21-4-2017 FOR AMENDMENT}
[RESCINDED BY NOTIFICATION NO. GSR 501(E) [F.NO.5(91)/2015-BE-I], DATED 23-5-2017]
➡3. Unregistered dealers can claim tax credit for goods purchased before July 1, 2017 on basis of Credit Transfer doc
Notification No. 21 /2017 - Central Excise (N.T.)
These are few guidelines for maintaining the healthy accounts hereafter:-
1. Raise proper sale and invoice and check purchase invoice.
2. Use distinctive series for local , central and RCM invoice for clarity.
3. Share your GSTIN to all your suppliers and seek the same from your customers.
4. Take ITC (Input Tax Credit) from business oriented expenses i.e., Telephone bill, Courier Bill, Stationery Bill, etc. Thus, hereafter you must receive the bills for all your business oriented expenses with your GSTIN mentioned on the Tax Invoice issued by the Supplier.
5. You will charge tax in tax invoices as under. Say Tax Rate on a supply is 18%.
So for Local (Intra-State) tax rate will be divided as CGST 9% and SGST – 9%.
For outside state (Inter-State) as IGST-18%
6. Tax must be paid on any ADVANCE RECEIVED from the customer.
Hence, either avoid such events or keep a track of such advances and pay tax on time.
7. Supplies in excess of Rs. 5000 from Unregd. Dealers in a day should be avoided. Keep this limit for Petty Day to Day Expenses only. For Eg Tea, Xerox etc
8. Cash payment in excess of Rs. 10,000/- per day and Cash Receipt in excess of Rs. 2Lac towards a single transaction to be avoided considering Income Tax Laws.
9. Please make bill wise and item wise closing stock as on 30.06.2017
10. Be ready with all Purchase, Sale, Expense Bills and Bank Statement on first day of each calendar month.
11. Submit Statement of Sales by 10th, Statement of Purchases by 15th and Auto Generated Consolidated Monthly Return by 20th of next month.
12. Be GST Compliant for securing more business. Compliance Rating will help probable customers look and reach for GST compliant dealers.
13. Make payment of purchase within 180 days to avoid tax reversal
14. No movement of goods without invoice or delivery challan
1. Raise proper sale and invoice and check purchase invoice.
2. Use distinctive series for local , central and RCM invoice for clarity.
3. Share your GSTIN to all your suppliers and seek the same from your customers.
4. Take ITC (Input Tax Credit) from business oriented expenses i.e., Telephone bill, Courier Bill, Stationery Bill, etc. Thus, hereafter you must receive the bills for all your business oriented expenses with your GSTIN mentioned on the Tax Invoice issued by the Supplier.
5. You will charge tax in tax invoices as under. Say Tax Rate on a supply is 18%.
So for Local (Intra-State) tax rate will be divided as CGST 9% and SGST – 9%.
For outside state (Inter-State) as IGST-18%
6. Tax must be paid on any ADVANCE RECEIVED from the customer.
Hence, either avoid such events or keep a track of such advances and pay tax on time.
7. Supplies in excess of Rs. 5000 from Unregd. Dealers in a day should be avoided. Keep this limit for Petty Day to Day Expenses only. For Eg Tea, Xerox etc
8. Cash payment in excess of Rs. 10,000/- per day and Cash Receipt in excess of Rs. 2Lac towards a single transaction to be avoided considering Income Tax Laws.
9. Please make bill wise and item wise closing stock as on 30.06.2017
10. Be ready with all Purchase, Sale, Expense Bills and Bank Statement on first day of each calendar month.
11. Submit Statement of Sales by 10th, Statement of Purchases by 15th and Auto Generated Consolidated Monthly Return by 20th of next month.
12. Be GST Compliant for securing more business. Compliance Rating will help probable customers look and reach for GST compliant dealers.
13. Make payment of purchase within 180 days to avoid tax reversal
14. No movement of goods without invoice or delivery challan
TAT allows Bank’s Claim for Deduction towards Amortization of Security Premium under ‘HTM Category’ [Read Order] http://clkmein.com/qXOVwG
Refund of Pre-deposit cannot be Adjusted towards other Demands: CESTAT Chennai [Read Order] http://clkmein.com/qXOVaC
Acquittal from Criminal Proceedings is No bar for initiating Disciplinary Proceedings against Charged Officer under Customs Act: Delhi HC http://clkmein.com/qXOVv2
5 smart things to know about securities transaction tax http://clkmein.com/qXOVNJ
Should you opt for a credit or a debit card?
http://clkmein.com/qXOBsQ
Refund of Pre-deposit cannot be Adjusted towards other Demands: CESTAT Chennai [Read Order] http://clkmein.com/qXOVaC
Acquittal from Criminal Proceedings is No bar for initiating Disciplinary Proceedings against Charged Officer under Customs Act: Delhi HC http://clkmein.com/qXOVv2
5 smart things to know about securities transaction tax http://clkmein.com/qXOVNJ
Should you opt for a credit or a debit card?
http://clkmein.com/qXOBsQ
1. Govt. gives retrospective VAT exemption to New Development Bank and SAARTAC upto June 30, 2017.
2. No disallowance of interest u/s 14A if assessee had surplus funds to make investment in tax-free securities.
3. MCA issues order for removal of difficulties on transfer of voluntary winding up proceeding under Bankruptcy Code.
4. Tribunal has no power to give directions to co. on issuance of duplicate share certificates to its shareholders: NCLT.
5. HC quashed reassessment as it was made without issuing notice under section 143(2).
6. Sec. 68 would be attracted even if cheques related to unexplained credit wasn't presented for collection in Bank.
7. Tamil Nadu: 1,000 cinema halls shut in against 30% local tax, GST.
8. HDPE woven cloth manufactured from HDPE yarn would be classified under Central Excise heading 54.06: HC.
2. No disallowance of interest u/s 14A if assessee had surplus funds to make investment in tax-free securities.
3. MCA issues order for removal of difficulties on transfer of voluntary winding up proceeding under Bankruptcy Code.
4. Tribunal has no power to give directions to co. on issuance of duplicate share certificates to its shareholders: NCLT.
5. HC quashed reassessment as it was made without issuing notice under section 143(2).
6. Sec. 68 would be attracted even if cheques related to unexplained credit wasn't presented for collection in Bank.
7. Tamil Nadu: 1,000 cinema halls shut in against 30% local tax, GST.
8. HDPE woven cloth manufactured from HDPE yarn would be classified under Central Excise heading 54.06: HC.
Updates
➡1. Tribunal has no power to give directions to co. on issuance of duplicate share certificates to its shareholders: NCLT
Hasmukh Bachubhai Baraiya v. Symphony Ltd.
➡2. Sec. 68 would be attracted even if cheques related to unexplained credit wasn't presented for collection in Bank
Vimal Organics Ltd. v. Commissioner of Income-tax, Ghaziabad
➡3. Govt. notifies another set of CGST rules
Notification No. 15/2017 – Central Tax
➡1. Tribunal has no power to give directions to co. on issuance of duplicate share certificates to its shareholders: NCLT
Hasmukh Bachubhai Baraiya v. Symphony Ltd.
➡2. Sec. 68 would be attracted even if cheques related to unexplained credit wasn't presented for collection in Bank
Vimal Organics Ltd. v. Commissioner of Income-tax, Ghaziabad
➡3. Govt. notifies another set of CGST rules
Notification No. 15/2017 – Central Tax
GST Myth Vs Reality :
Myth 1: I need to generate all invoices on computer/ internet only.
Reality 1: Invoices can be generated manually also
Myth 2: I need Internet all the time to do business under GST.
Reality 2: Internet would be needed only while filing monthly return of GST
Myth 3: I have provisional ID but waiting for final ID to do business.
Reality 3: provisional ID will be your final GSTIN number. Start business
Myth 4: My item of trade was earlier exempt so I will immediately need new registration before starting a business now.
Reality 4: U can continue doing business and get registered within 30 days.
Myth 5: There are 3 returns per month to be filed.
Reality 5 : There is only 1 return with 3 parts, out of which first part filed by the dealer and two other parts auto-populated by computer.
Myth 6: Even small dealers will have to file invoice wise details in the return.
Reality 6: Those in retail business (B2C) need to file only summary of total sales.
Myth 7: New GST rates are higher compared to earlier VAT.
Reality 7 : It appears higher bcoz excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.
Myth 1: I need to generate all invoices on computer/ internet only.
Reality 1: Invoices can be generated manually also
Myth 2: I need Internet all the time to do business under GST.
Reality 2: Internet would be needed only while filing monthly return of GST
Myth 3: I have provisional ID but waiting for final ID to do business.
Reality 3: provisional ID will be your final GSTIN number. Start business
Myth 4: My item of trade was earlier exempt so I will immediately need new registration before starting a business now.
Reality 4: U can continue doing business and get registered within 30 days.
Myth 5: There are 3 returns per month to be filed.
Reality 5 : There is only 1 return with 3 parts, out of which first part filed by the dealer and two other parts auto-populated by computer.
Myth 6: Even small dealers will have to file invoice wise details in the return.
Reality 6: Those in retail business (B2C) need to file only summary of total sales.
Myth 7: New GST rates are higher compared to earlier VAT.
Reality 7 : It appears higher bcoz excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.
INDEPENDENT DIRECTORS' APPOINTMENT : TIME FOR A SOLUTION BASED APPROACH
By Gautam Gandotra*
Independent directors are being criticised on their being independent. Critics feel that people who are appointed as independent directors are close to promoters so that decision making can be influenced. In this article, the author makes out a case for solution based approach to ensure that 'independence' of independent directors is no longer doubted.
INTRODUCTION
1. It seems we live in an independent director-bashing era. News articles, blogs, scholarly write-ups are replete with criticism relating to independent directors, whether it relates to their appointment, 'true' independence, removal, resignation or generally about their very existence! Anything remotely connected to what such directors do seems wrong. From a legal liability stand point, the law of director's liability and fiduciary duties applies equally to independent directors. Such directors do not have any meaningful defense available to them by the mere taxonomy of the position held by them. Why then is the sentiment so negative ?
1.1 Critics argue that the key issue emanates from the method of appointment of such directors because they feel such people are appointed as independent directors who are close to promoters so that decision making can be influenced. Practically, one cannot get a total stranger on board as such a person could turn out to be the worst choice even for a truly independent decision making. How then is one to resolve this issue which essentially is a result of conflict of interest between different categories of stakeholders - doing away with the concept of independent directors, criticising everyone who occupies such a position, resorting to media trial for conduct of the Board of directors. The answer lies in taking a solution based approach to ensure that we do not paint a sorry picture of corporate governance in our country.
NEED FOR A NEW VOTING REGIME
2. A new voting regime must be introduced that requires appointment of independent directors through majority of minority vote of the public shareholders. The United Kingdom has adopted a dual-voting structure for election of such directors in controlled listed companies, requiring both a simple majority vote and a majority of minority vote; if the result of these two votes conflict, then another meeting can be held within 90-120 days and this time the appointment happens through a simple majority vote. This approach is slightly lenient as opposed to the majority of minority voting simpliciter as a resolution passed through majority of minority (public shareholders) vote could essentially get washed away in a subsequent resolution passed through simple majority (in effect, promoters) vote.
A FEAR WHICH IS NOT SO THEORETICAL
3. The key argument against the majority of minority voting rule is that such voting rule is not practical and also, that the controllers of the business may influence votes to achieve the same result and then influence the independent directors too. The fear of succumbing to promoter influence was summarized with great wit by the then Vice Chancellor Strine of the Delaware Chancery Court as follows - calling controllers of the business a 'gorilla' and the independent directors "little chimpanzees" :
"....[W]hen an 800-pound gorilla wants the rest of the bananas, little chimpanzees, like independent directors and minority stockholders, cannot be expected to stand in the way, even if the gorilla putatively gives them veto power. Lurking in the back of the directors' and stockholders' mind is the fear that the gorilla will be very angry if he does not get his way. As a result, we cannot fully trust the traditional protective devices that the law uses to validate interested transactions."1
Recently, while putting forth a proposal for public investors to have the power to influence the election or retention of some "enhanced independent" directors, Harvard Law School Professor, Lucian A Bebchuk and Hebrew University Professor, Assaf Hamdani took Leo Strine's amusing 800-pound gorilla metaphor forward saying that, if independent directors cannot be expected [in the freeze out context] to oppose the big gorilla when it seeks the rest of the bananas, we should not expect them to resist the big gorilla when it pursues a peach, a mango, or any other fruit that it may fancy.2 This shows that it is not just India but also the developed economies that are grappling with the same issue.
WHY MAJORITY OF MINORITY RULE ?
4. The list of matters requiring majority of minority vote is increasing within a short span of time. Majority of minority voting rule mandatorily applies to the listed companies for a resolution considering material related party transactions, delisting, reduction in public shareholding pursuant to scheme of arrangements in certain cases, etc. This shows that the law makers, promoters and listed companies have very well digested such regime for other critical proposals. This change in voting regime is indeed done to ensure that the suspicion with which certain arguably one-sided and coercive transactions are seen are dealt with in a fair way by giving the less powerful block a better say in the decision making. Why then, should the appointment of independent directors be subject to a simple majority regime when their existence seems to be the cause of immense grief for many? It's time to come up with a regime that stops presuming that independent directors are guilty.
CONCLUSION
5. When law gets smart, people get smarter and most of the times, people are already too smart and law is trying to catch up. Therefore, keeping law static when the environment is dynamic is an approach should be given up. Majority of minority rule has the ability to take away the inherent negativity surrounding the issue relating to method of appointing the independent directors.
FOOTNOTES
* Partner in Cyril Amarchand Mangaldas. Views expressed are personal.
By Gautam Gandotra*
Independent directors are being criticised on their being independent. Critics feel that people who are appointed as independent directors are close to promoters so that decision making can be influenced. In this article, the author makes out a case for solution based approach to ensure that 'independence' of independent directors is no longer doubted.
INTRODUCTION
1. It seems we live in an independent director-bashing era. News articles, blogs, scholarly write-ups are replete with criticism relating to independent directors, whether it relates to their appointment, 'true' independence, removal, resignation or generally about their very existence! Anything remotely connected to what such directors do seems wrong. From a legal liability stand point, the law of director's liability and fiduciary duties applies equally to independent directors. Such directors do not have any meaningful defense available to them by the mere taxonomy of the position held by them. Why then is the sentiment so negative ?
1.1 Critics argue that the key issue emanates from the method of appointment of such directors because they feel such people are appointed as independent directors who are close to promoters so that decision making can be influenced. Practically, one cannot get a total stranger on board as such a person could turn out to be the worst choice even for a truly independent decision making. How then is one to resolve this issue which essentially is a result of conflict of interest between different categories of stakeholders - doing away with the concept of independent directors, criticising everyone who occupies such a position, resorting to media trial for conduct of the Board of directors. The answer lies in taking a solution based approach to ensure that we do not paint a sorry picture of corporate governance in our country.
NEED FOR A NEW VOTING REGIME
2. A new voting regime must be introduced that requires appointment of independent directors through majority of minority vote of the public shareholders. The United Kingdom has adopted a dual-voting structure for election of such directors in controlled listed companies, requiring both a simple majority vote and a majority of minority vote; if the result of these two votes conflict, then another meeting can be held within 90-120 days and this time the appointment happens through a simple majority vote. This approach is slightly lenient as opposed to the majority of minority voting simpliciter as a resolution passed through majority of minority (public shareholders) vote could essentially get washed away in a subsequent resolution passed through simple majority (in effect, promoters) vote.
A FEAR WHICH IS NOT SO THEORETICAL
3. The key argument against the majority of minority voting rule is that such voting rule is not practical and also, that the controllers of the business may influence votes to achieve the same result and then influence the independent directors too. The fear of succumbing to promoter influence was summarized with great wit by the then Vice Chancellor Strine of the Delaware Chancery Court as follows - calling controllers of the business a 'gorilla' and the independent directors "little chimpanzees" :
"....[W]hen an 800-pound gorilla wants the rest of the bananas, little chimpanzees, like independent directors and minority stockholders, cannot be expected to stand in the way, even if the gorilla putatively gives them veto power. Lurking in the back of the directors' and stockholders' mind is the fear that the gorilla will be very angry if he does not get his way. As a result, we cannot fully trust the traditional protective devices that the law uses to validate interested transactions."1
Recently, while putting forth a proposal for public investors to have the power to influence the election or retention of some "enhanced independent" directors, Harvard Law School Professor, Lucian A Bebchuk and Hebrew University Professor, Assaf Hamdani took Leo Strine's amusing 800-pound gorilla metaphor forward saying that, if independent directors cannot be expected [in the freeze out context] to oppose the big gorilla when it seeks the rest of the bananas, we should not expect them to resist the big gorilla when it pursues a peach, a mango, or any other fruit that it may fancy.2 This shows that it is not just India but also the developed economies that are grappling with the same issue.
WHY MAJORITY OF MINORITY RULE ?
4. The list of matters requiring majority of minority vote is increasing within a short span of time. Majority of minority voting rule mandatorily applies to the listed companies for a resolution considering material related party transactions, delisting, reduction in public shareholding pursuant to scheme of arrangements in certain cases, etc. This shows that the law makers, promoters and listed companies have very well digested such regime for other critical proposals. This change in voting regime is indeed done to ensure that the suspicion with which certain arguably one-sided and coercive transactions are seen are dealt with in a fair way by giving the less powerful block a better say in the decision making. Why then, should the appointment of independent directors be subject to a simple majority regime when their existence seems to be the cause of immense grief for many? It's time to come up with a regime that stops presuming that independent directors are guilty.
CONCLUSION
5. When law gets smart, people get smarter and most of the times, people are already too smart and law is trying to catch up. Therefore, keeping law static when the environment is dynamic is an approach should be given up. Majority of minority rule has the ability to take away the inherent negativity surrounding the issue relating to method of appointing the independent directors.
FOOTNOTES
* Partner in Cyril Amarchand Mangaldas. Views expressed are personal.
Modi ji
Thanks for blaming speech on my CA fraternity for failure of your ill planned and short visioned bureaucracy guided impractical fiscal decisions...
As usual Your speech was full of sarcasm and taunts...
but Sir.... as per your and your FM speeches
Businessman is chor... they don't pay taxes and CAs help them
and we are largely a tax in compliant society and presented that only 3.7 crores are filling ITRs in this poor country with 125 crore population
Sir,
We have 82 crore voters
- 75% are agriculturists ,61.5 crores ( You exempted them directly but, they can also buy cars , bunglows etc as you quoted.. your political counterparts are also enjoying this)
Balance
20.5 crores
Less: 24% BPL class ( Below poverty line)
15 crore population ( which is non agriculturist and non BPL) ..
Less : Senior Citizens, Non working wives, unemployed youths, below taxable income earners...political class..(say 75%) ... in a typical indian family only 1 earning member and 5/6 are dependent on him....
Balance (15-11.25)=3.75 crores is the earning class ... which can file ITRs and ... they are already filling it....
.... so almost no gap as Mr Jetly is stressing unnecessarily without knowing his country
if jetly wants more people's to come into tax net ...then... instead foolishly resorting to Only rampant raids, surveys...notices... scrutiny ..... demonetisations etc etc terrorism ... he should defy his negative bureaucrats and
1. Introduce simple Income Tax on Agricultural Income on large landlords ( Say 10 Acres plus ) - you can add 26% of Agriculturists as tax payers ( Politicians are also enjoying this )
2. Instead introducing 5000/10000 penalties on late filers of IT return Come out with positive approach and introduce incentives to IT return filers ( learn from Pakistan, IT assessee gets discount in purchase of Car )
3. Introduce Privilege card to those paying taxes above certain limit.. privilege card to entitle assessee with benefits like Priority quota in railway tickets , Use of airport lounges, subsidised medical facilities, etc etc... let Tax payers to feel proud
4. Introduce medical insurance / life insurance on basis of average ITR filled... like coverage upto twice of Gross Income in ITR filled for mediclaim and ten times risk cover in case of life insurance
5. Introduce Pension after 65 yrs of age on the basis of tax paid by tax payer during his working life..
Let taxpayers to get certain direct benefits....
As on today, 3.3% of Indian population is filling ITRs as compared to 8% of China...adding large agriculturists to Income Tax may shoot the figure to more than 10% .... it may help you to cool your tax terrorism mindset and a tax compliant nation ...
And Sir..
Indian Government officials and Politicians are known already known in the world as most corrupt ... ping any IT return of your MPs and MLAs ... most of them are showing agriculture income on small piece of land... raid them... easily can shed 500/1000 crores
Kindly think and do something about your unaccountable and irresponsible government systems which still perfectly ensures that nothing should move in government department unless bribe is paid
Thanks for blaming speech on my CA fraternity for failure of your ill planned and short visioned bureaucracy guided impractical fiscal decisions...
As usual Your speech was full of sarcasm and taunts...
but Sir.... as per your and your FM speeches
Businessman is chor... they don't pay taxes and CAs help them
and we are largely a tax in compliant society and presented that only 3.7 crores are filling ITRs in this poor country with 125 crore population
Sir,
We have 82 crore voters
- 75% are agriculturists ,61.5 crores ( You exempted them directly but, they can also buy cars , bunglows etc as you quoted.. your political counterparts are also enjoying this)
Balance
20.5 crores
Less: 24% BPL class ( Below poverty line)
15 crore population ( which is non agriculturist and non BPL) ..
Less : Senior Citizens, Non working wives, unemployed youths, below taxable income earners...political class..(say 75%) ... in a typical indian family only 1 earning member and 5/6 are dependent on him....
Balance (15-11.25)=3.75 crores is the earning class ... which can file ITRs and ... they are already filling it....
.... so almost no gap as Mr Jetly is stressing unnecessarily without knowing his country
if jetly wants more people's to come into tax net ...then... instead foolishly resorting to Only rampant raids, surveys...notices... scrutiny ..... demonetisations etc etc terrorism ... he should defy his negative bureaucrats and
1. Introduce simple Income Tax on Agricultural Income on large landlords ( Say 10 Acres plus ) - you can add 26% of Agriculturists as tax payers ( Politicians are also enjoying this )
2. Instead introducing 5000/10000 penalties on late filers of IT return Come out with positive approach and introduce incentives to IT return filers ( learn from Pakistan, IT assessee gets discount in purchase of Car )
3. Introduce Privilege card to those paying taxes above certain limit.. privilege card to entitle assessee with benefits like Priority quota in railway tickets , Use of airport lounges, subsidised medical facilities, etc etc... let Tax payers to feel proud
4. Introduce medical insurance / life insurance on basis of average ITR filled... like coverage upto twice of Gross Income in ITR filled for mediclaim and ten times risk cover in case of life insurance
5. Introduce Pension after 65 yrs of age on the basis of tax paid by tax payer during his working life..
Let taxpayers to get certain direct benefits....
As on today, 3.3% of Indian population is filling ITRs as compared to 8% of China...adding large agriculturists to Income Tax may shoot the figure to more than 10% .... it may help you to cool your tax terrorism mindset and a tax compliant nation ...
And Sir..
Indian Government officials and Politicians are known already known in the world as most corrupt ... ping any IT return of your MPs and MLAs ... most of them are showing agriculture income on small piece of land... raid them... easily can shed 500/1000 crores
Kindly think and do something about your unaccountable and irresponsible government systems which still perfectly ensures that nothing should move in government department unless bribe is paid
Sunday, July 2, 2017
Under Rule 96A ( for Exporters )
1) Exporter intending to export under bond or Letter of undertaking needs to furnish bond prior to the Export to jurisdictional Commissioner in Form GST RFD -11
2) Within 15 days from the end of three months of date of issue of invoice if goods are not exported, the exporter is required to pay tax along with interest
3) In case of services if payments are not received within 12 months, tax and interest will be recovered within 15 days or such extended period as may be allowed from the end of twelve months from the date of invoice
4) GSTR return to be filed containing export details
Relevant Rule 96A is set out as under for your reference.
“96A. Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking.-
Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of —
(a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or
(b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.
(2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.
(3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79.
(4) The export as allowed under bond or Letter of Undertaking withdrawn in terms of subrule (3) shall be restored immediately when the registered person pays the amount due.
(5) The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.
(6) The provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.”
1) Exporter intending to export under bond or Letter of undertaking needs to furnish bond prior to the Export to jurisdictional Commissioner in Form GST RFD -11
2) Within 15 days from the end of three months of date of issue of invoice if goods are not exported, the exporter is required to pay tax along with interest
3) In case of services if payments are not received within 12 months, tax and interest will be recovered within 15 days or such extended period as may be allowed from the end of twelve months from the date of invoice
4) GSTR return to be filed containing export details
Relevant Rule 96A is set out as under for your reference.
“96A. Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking.-
Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of —
(a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or
(b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.
(2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.
(3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79.
(4) The export as allowed under bond or Letter of Undertaking withdrawn in terms of subrule (3) shall be restored immediately when the registered person pays the amount due.
(5) The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.
(6) The provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.”
As per Sl. 3(ii) of Table in Notification 11/17, building contractors shall charge GST of 18% (9+9). As per Sl. 3(i), builders will also charge 18%. The "Value of Supply" for builders will be "Total amount" charged, less the value of land. Such value of land shall be deemed to be 1/3rd of the total amount charged. In other words, builders'effective rate is 12%. This is an alternate route to abatement. Builders can claim transitional credit u/s 140(3).
Saturday, July 1, 2017
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GOODS &
SERVICES TAX UPDATE – 3
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CENTRAL GOODS & SERVICES TAX (CGST)
Some sections of CGST Act, 2017 to
come into effect from 01.07.2017
Central Government vide Notification
No. 09/2017-Central Tax, dt. 28-06-2017 has provided 1st
July 2017 on which the following sections of CGST Act, 2017 will come into
force:
Additional
CGST Rules, 2017 notified
By exercising the powers
conferred by Section 164 of the CGST Act, 2017, Central Government vide Notification
No. 10/2017-Central Tax, dt. 28-06-2017 has amended
Central Goods and Services Tax Rules, 2017 w.e.f 1st July 2017.
The Central Goods and Services Tax Rules, 2017 are amended to include:
The Rules and the formats
provided therein are final to the effect and required to be adhered for
respective purposes.
Amendment in
modes of Verification of electronic documents as notified
Central Government vide Notification
No. 11/2017-Central Tax, dt. 28-06-2017 has w.e.f 22nd
June 2017 amended Notification
No. 06/2017-Central Tax, dt. 19-06-2017 to
substitute Bank account based One Time Password (OTP) as an additional mode
of verification with the following, for the purpose of the Rule 26: -
ii.
Electronic verification code generated through
net banking login on the common portal;
iii.
Electronic verification code generated on the
common portal:
It is
important to note that where the mode of authentication of any document is
through any of the aforesaid modes, such verification will be done within 2
days of furnishing the documents.
Number of
HSN digits required on tax invoice notified
First proviso to Rule 46 of
the Central Goods and Services Tax Rules, 2017 provides that the Board may,
on the recommendations of the Council, by notification, specify-
i.
the number of digits of Harmonized System of
Nomenclature code for goods or services that a class of registered persons
shall be required to mention, for such period as may be specified in the said
notification; and
ii.
the class of registered persons that would not
be required to mention the Harmonized System of Nomenclature code for goods
or services, for such period as may be specified in the said notification
In
this regard, Central Government vide Notification
No. 12/2017-Central Tax, dt. 28-06-2017 has w.e.f 1st
July 2017 notified the following number of digits of Harmonized System of
Nomenclature (HSN) Codes which are required to be mentioned in a tax invoice
issued by a registered person having prescribed annual turnover:
Similar
requirement for mentioning HSN Codes in tax invoice has been prescribed under
IGST Act, 2017 vide Notification
No. 05/2017-Integrated Tax, dt. 28-06-2017.
[Notification
No. 12/2017-Central Tax, dt. 28-06-2017 & Notification
No. 05/2017-Integrated Tax, dt. 28-06-2017]
Interest
Rates under CGST Act, 2017 prescribed
Central
Government vide Notification
No. 13/2017-Central Tax, dt. 28-06-2017 has w.e.f 1st
July 2017 prescribed the following rates of interest per annum for respective
sections as follows:
Further,
similar interest rates have been prescribed under IGST Act, 2017 vide Notification
No. 06/2017-Integrated Tax, dt. 28-06-2017 with regards to
section 20 of IGST Act, 2017.
[Notification
No. 13/2017-Central Tax, dt. 28-06-2017 & Notification
No. 06/2017-Integrated Tax, dt. 28-06-2017]
INTEGRATED GOODS &
SERVICES TAX (IGST)
Some
sections of IGST Act, 2017 to come into effect from 1.07.2017
Central
Government vide Notification
No. 03/2017-Integrated Tax, dt. 28-06-2017 has provided 1st
July 2017 as the date on which the following sections of IGST Act, 2017 will
come into force:
IGST Rules,
2017 notified.
Central Government vide Notification
No. 04/2017-Integrated Tax, dt. 28-06-2017 has w.e.f 22nd
June 2017 notified Integrated Goods and Services Tax Rules, 2017. It has
further been provided that the Central Goods and Services Tax Rules, 2017,
for carrying out the provisions specified in section 20 of the Integrated
Goods and Services Tax Act, 2017 will apply in relation to integrated tax as
they apply in relation to central tax.
UNION TERRITORY GOODS
& SERVICES TAX
Central
Government vide Notification
No. 03/2017-Union Territory Tax, dt. 28-06-2017 has
provided 1st July 2017 as the date on which the following sections
of UTGST Act, 2017 will come into force:
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