Self-reporting of estimates of current income/tax payments/advance tax liability by taxpayers on voluntary basis

Income Tax India just Tweeted :

CBDT to create mechanism for self-reporting of estimates of current income/tax payments/advance tax liability by taxpayers on voluntary basis.

May be applied from next FY. Simple interpretation what I understand, Next Time Just Depositing Advance Tax would not be enough. You'll have to Explain/Justify/Submit Provisional Computation, and Remember, It will not be a Bank/VC, But Income Tax Office. What would be benefit of all this, God knows ? Because Dishonest or Corrupt people don't pay any tax  on their Income, and who pay, they have to prove their honesty again and again ................... ! 

मोदी जी को एक सलाह देना चाहूँगा बल्कि विनती करूँगा कि Sir क्यों नहीं हर company मे सरकार एक अपना auditor appoint कर देती, सरकार का अपना आदमी, इससे उन्हें Real Time Information भी मिलती रहेगी और बहुत सारे बेरोज़गार भाई बहनों को काम भी मिल जायेगा।

Accounting for RCM Transactions under GST

1.       Liability of GST under Reverse Charge Mechanism:

Tax would be payable by Recipient:

(a)    Section 9(3): On supply of goods or services or both notified by Govt. (Supplier may be Registered or Unregistered, But Recipient will be liable to pay the Tax)

(b)   Section 9(4): On supply of goods or services or both made by unregistered supplier.*

*Exemption: Consolidated Supply upto Rs. 5000/- per day. (This Exemption is only for Section 9(4)).

2.  Accounting:

Customize chart of accounts. Create new group under Sundry Creditors – URD Vendors and open account of all unregistered vendors under this group. It would help in generation of related reports later.

    (a) When Total Supply from Un registered Dealer for Taxable Items is upto Rs. 5000/- in a day :

Here will do usual entries. I recommend, do single entry for all expense for the day.

e.g. Cost of Stationery : Rs. 2000/-

Eatables : Rs. 1500/-

Electricity Repair Work Rs. 1000/-

Total Rs. 4500/-

Entry would be:

Printing & Stationery A/c Dr Rs. 2000/-

Staff Welfare Exps A/c Dr Rs. 1500/-

Office Repair & Maintenance A/c Dr Rs. 1000/-

                To Vendor for Printing & Stationery A/c Rs. 2000/-

                To Vendor for Eatables Supply A/c Rs. 1500/-

                To Vendor for Repair & Maint. A/c Rs. 1000/-

     (b) When Total Supply from Un registered Dealer for Taxable Items is above Rs. 5000/- in a day :

In such case, you can post separate entries or a single entry, it is a choice, but I’ll recommend a single Entry:

Cost of Stationery : Rs. 3000/-

Eatables : Rs. 1500/-

Electricity Repair Work Rs. 1000/-

Now Total Exps are Rs. 5500/-

Entry would be:

Printing & Stationery A/c Dr Rs. 3000/-

Staff Welfare Exps A/c Dr Rs. 1500/-

Office Repair & Maintenance A/c Dr Rs. 1000/-

Tax on Reverse Charges (Input) – SGST A/c Dr Rs. 495/-

Tax on Reverse Charges (Input) – CGST A/c Dr Rs. 495/-

                To Vendor for Printing & Stationery A/c Rs. 3000/-

                To Vendor for Eatables Supply A/c Rs. 1500/-

                To Vendor for Repair & Maint. A/c Rs. 1000/-

                To Output SGST on RCM Payable A/c Rs. 495/-

                To Output CGST on RCM Payable A/c Rs. 495/-

After making payment of RCM, Pass the JV to Claim ITC, paid under RCM:

Output SGST Payable A/c Dr Rs. 495/-

Output CGST Payable A/c Dr Rs. 495/-

                To Tax on Reverse Charges (Input) – SGST A/c Rs. 495/-

    To Tax on Reverse Charges (Input) – CGST A/c Rs. 495/-

NB: If you are using Tally, You have to enter these entries thru Purchase Voucher, so that same can be appeared in Statutory (GST) Reports. Here, In each Expense Line, You have to classify, Unregistered Purchase – Taxable or Exempt.

-          Sukhvinder Singh Bhatia

  Mail: sukhgst@gmail.com

The meeting of "Committee on Exports", constituted by GST Council will be held tomorrow.

GST Council :

The meeting of "Committee on Exports", constituted by GST Council will be held tomorrow. Representatives from 8 Export Promotion Associations will discuss about difficulties faced. The meeting will be conducted in the presence of Revenue and Commerce Secretaries. Certain recommendations are expected to emerge from tomorrow's meeting of "Committee on Exports".

These are the exporters who have felt the real heat of GST, many of them are out of funds now, have exhausted even their Bank Limits. Finance Ministry simply ignored recommendations of Commerce Ministry while implementing GST related to exemptions and reliefs under old tax regime. Expectations are exemption to Small Exporters and Exporters of Services from Bond/LuT, Relief to Importers from paying IGST, if Material Imported to be used for Export within specific period of Time. Fast Refund Processing etc. Wait and Watch, Meeting turn to be just a formality or bring smile on the face of Exporters. Thanks.

माननीय प्रधानमंत्री श्री नरेंद्र मोदी जी को जन्म दिवस की हार्दिक शुभकामनायें

माननीय प्रधानमंत्री श्री नरेंद्र मोदी जी को जन्म दिवस की हार्दिक शुभकामनायें। आपकी दीर्घायु और सेहत के लिए प्रार्थना करते हैं और आशा करते हैं आप इसी प्रकार अपने दायित्वों और कर्तव्यों का निर्वहन करते रहेंगे और आपके नेतृत्व में देश प्रगति की राह पर चलते हुए नयी मज़िलों को हासिल करेगा।

कई लोग मुझसे पूछते हैं कि मै मोदी जी का समर्थक होते हुए भी उनकी कभी कभी आलोचना क्यूँ करता हूँ, तो यही कहूँगा, दुःख तभी होता है, जब आपको किसी से अपेक्षायें हो और वो इन्सान उन अपेक्षाओं को पूरा न कर पाये। मैंने शायद ही कभी राहुल गाँधी के बारे मे कुछ कहा हो, क्यूँकि उनसे मुझे कुछ अपेक्षा ही नहीं। फिर भी ये हमेशा याद रखता हूँ की कोई भी इन्सान कितना भी महान क्यों न हो, कुछ न कुछ कमी अवश्य होती है, ऐसा न होता तो वो कब का मोक्ष पा चुका होता। मोदी जी का अपना चरित्र, अद्धभुत कार्य क्षमता, जीवन मे अनुशासन अपने आप मे प्रेरणा का स्रोत है। उन्होंने देश के लिए बहुत कुछ किया फिर भी कई क्षेत्र हैं जिनमे उन्हें ध्यान देने के आवश्यकता है. इस पर विस्तार से अलग से लिखूंगा। अंत में यही कहूँगा, मोदी जी के जीवन पर बहुत सारी पुस्तकें प्रकाशित हो चुकी है, प्रत्येक युवा को एक बार अवश्य पढ़ना चाहिए। मोदी जी के जीवन से बहुत कुछ सीखा जा सकता है। धन्यवाद।

हिंदी दिवस की शुभकामनायें

पहले तो सभी मित्रों को हिंदी दिवस की शुभकामनायें।  हिंदी हमारी राष्ट्रभाषा है और हमें उस पर गर्व होना चाहिये। बहुत दुख होता है कि लोग बड़ी बड़ी देशभक्ति की बातें करते हैं, पर हर कार्य मे प्राथमिकता उसे देते हैं, जिसे अंग्रेजी का ज्ञान अधिक हो, भले ही अपने विषय मे वो शून्य हो। आज दक्षता की जगह दिखावा ले चूका है। यदि आप धोती कुर्ता या कुर्ता पजामा पहनते हैं तो आप को वो सम्मान हासिल नहीं होगा जो सूट बूट पहनने से होता है, कुछ राजनेता अवश्य अपवाद हैं। 

आज समाचारों में जब मोदी जी को बुलेट ट्रैन परियोजना का आरम्भ करते देखा तो हँसी आ गयी, जहाँ हम छोटी छोटी परियोजनाओं को ढंग से कार्यान्वित नही कर पा रहे, हर दूसरे दिन किसी न किसी तकनीकी कारण से कोई न कोई ट्रैन दुर्घटना का शिकार हो जाती है, GST तो एक बड़ी परियोजना है। RTO का और भी बुरा हाल है. 3 दिन के काम मे 30 दिन लग रहे हैं, कोई भी सरकारी साइट उठा कर देख लो, सबका ऐसा ही हाल है।   

फिर भी अच्छा लगा कम से कम मोदी जी आगे की तो सोचते हैं, जबरदस्ती ही सही पर आज देश बहुत आगे बड़ गया है, शायद 6 या 9 महीनों मे ये सब समस्यायेँ समाप्त हो चुकी होंगी, तभी लोग जान पायेंगे GST का वास्तविक लाभ क्या है। 

अंत मे कभी किसी को उसके पहनावे या मात्र अंग्रेजी के ज्ञान के आधार पर judge मत करें, किताबी ज्ञान, व्यवहारिक ज्ञान के आगे कुछ भी नहीं। धन्यवाद।     

Cost of Crude Oil is Decreasing, but Price of Petrol is Increasing. What is Mystery ?

Today Petrol Price Rs. 80/- in many states was one of prime news. In May 2014, Cost of Crude Oil was Rs. 41/- and Selling price was Rs. 70/-, In August 2017, Cost of Crude Oil is Rs. 20/-, yet selling price is Rs. 70/- (Cost Price Rs. 20/-, Taxes Rs. 43/-, Other Expenses and Sellers Margin/Commission Rs. 7/- per ltr) to Rs. 80/-. Main Reason - Increase in Excise Duty and VAT in three years, so many times. Govt is trying best to justify these prices, but not succeeding. This is right time to set an example of passing the benefit to consumer of heavy reduction in cost. The same is expected from traders as placed Anti-Profiteering Provisions in GST. Instead of increasing tax every time, Govt must control or manage cost on different projects. CAG Reports has revealed so many times, unlimited and unnecessary projects are being executed and repeated by many ministries. Finance Ministry Role is only limited to budget preparation, this is same, in the companies where CFO is considered not more than an accountant, and ignored by CEO/Board in all important decisions, those companies can't survive for long. So, Need to Reinvent and Refresh Finance Ministry. Need a dynamic young Finance Minister. AJ or any Senior Leader can be Adviser.  If it would have happened, Implementation of Demonetization and GST were not so pathetic and painful.

http://www.mycarhelpline.com/index.php?option=com_latestnews&view=detail&n_id=417&Itemid=10 

सारगढ़ी का युद्ध

देह शिवा बर मोहे ईहे, 

शुभ कर्मन ते कभुं न टरूं: 

न डरौं अरि सौं जब जाय लड़ौं, 

निश्चय कर अपनी जीत करौं ।।

एक तरफ़ 10000 अफ़ग़ान सिपाही दूसरी और सिर्फ 21 सिख सिपाही। तारीख 12 सितम्बर 1897, स्थान - खैबर-पखतुन्खवा

निर्णय लेना था - युद्ध या पलायन। निर्णय लिया दल के नेता सरदार ईशर सिंह ने - मृत्यु तक युद्ध। और फिर ऐसा हुआ जिसने इस युद्ध को विश्व के सबसे महानतम युद्धों मे एक बना दिया। 21 के 21 वीरों ने शहादत प्राप्त की, पर शहीद होने से पहले हर एक सिख सैनिक ऐसा लड़ा जैसे खुद काल मौत बन कर अफग़ान सैनिकों पर टूट पड़ा हो, अफ़ग़ान सेना पूरी कोशिश करने के बावजूद विजय हासिल नहीं हर पायी और उसके 10000 सैनिक भी, 21 सिख सैनिकों के आगे कम पड़ गये।

यदि संकल्प सच्चा हो, हिर्दय मे ईश्वर का वास हो, तो कुछ भी असम्भव नहीं।

GSTN Problems and Solutions (Part 4)

GSTN Problems and Solutions (Part 4):

5. Abolish the Nil Return : One thing I do not understand, what is use of Nil Return. It is mandatory to file all returns, even there is no single transaction in the month. Why we want taxpayer to mark his attendance every month on GST Portal, if he has done no business in any month. If this decision is from technical experts, I’ll request to replace them all. Either they are not expert or had been appointed on recommendations of political leaders. But if this decision is on the ground, that do not trust taxpayers, it is also wrong. Anyway At end of every following month/quarter, through a single command, all such cases can be marked as Nil Return, why taxpayers need to do the same. There is large number of taxpayers who are involved in seasonal businesses; they will get advantage of the same.

In case any taxpayer intends to file late return, he may file next month with late fee and penalty, not a big job. Sorry Professional Friends, It may hit your pocket, as number of returns if reduced for no transaction month/s, you will have to compromise on your fee (if you are charging your fee on return basis and not under annual contract), but to bring GSTN on Track, Such steps are necessary at this moment. Thanks.

GSTN Problems and Solutions (Part 3)

GSTN Problems and Solutions (Part 3):

4.  Outsource some of processes: What I find, the problem of GSTN is same, as of most of Indian Companies. Lots of Manager, but no executives/workers. I never got reply of any of my queries on twitter, same with so many professionals and taxpayers. I guess, it would be a small team handling twitter queries. Same, it takes so much time to get connected if call customer care (Is Team of 100 People ?) and No instant reply from helpdesk mail, few days back, mail server was full, and mails started bouncing back, as exceeded capacity.

The message I read just now at career section of GSTN  :

“Thank you for visiting GSTN Opportunities section. Presently there are no open positions, please check back later.”

So, Sir, Why not expand the team. This is high time of unemployment. This will not only ease GSTN work, but also provide employment to many, even contractual for six months. And for 3 months make some processes manual, so that no business suffers. E.g. allow taxpayers to file manual applications to get their registration cancelled, amendments like addition or removal of business place, addition of new authorised signatory, opt in or opt out from composition scheme etc. A dedicated team can verify and validate documents and process at backend in the server. Thanks.

And I am curious, this is nothing to do anything with GST, but in your policy section (gstn.org), policies uploaded are only, About Internship/Trainee, Equal Opportunity & Policy on Prevention of Sexual Harassment at work place. No other Employees related policy? Just compare it with Infosys website and you will know the difference. Thanks.

GST - By Govt For Govt

Few days back, I resolved will not post anything negative. But today, just opened the system, saw first tweet (GoI) and then first mail (Taxguru), I changed my decision. 

Mr. Sharad asked GoI :

"If someone opted for composition by mistake, but is charging gst from clients and taking ITC from July, what is the solution??"

and GoI Replied :

U should immediately opt out of composition (u/r 6(3) of CGST Rules) as u cannot avail ITC nor u can charge GST from your client.

On this Reply, all readers got angry, as everyone knows, he needs to opt out, but how ? Where is the form GST CMP-04 ?

Second things, was update mail from Taxguru about penalty of Rs. 20K on a dealer for tax of Rs. 15 by Tax Department of Andra Pradesh. Many cases are pending at govt's end, and traders are loosing their business on account of delay in getting registration, not able to opt out or cancel their registration. But a lesson for all. Any item you sell worth Rs. 200 and above, must issue an invoice. You may be an honest person, can make a transaction thru bar code and record in your accounts and pay full tax, but if no Invoice is found, you will be treated guilty. So, take care of all compliance prescribed under GST.  If No Computer, Issue Manual Invoices. This is Easy. Thanks.

https://taxguru.in/goods-and-service-tax/rs-20000-penalty-failure-issue-invoice-gst-rs-15.html