GST Council Meeting Update : 05th August 2017

GST Council Meeting Update : 05th August 2017

►Work contracts under GST will be taxed at 12 per cent with input tax credit.

►GST Council agreed to reduce GST Rate on all kind of job works on textiles, embroidery to 5% from 18%

►E- Way Bills will be required for  goods worth over ₹50,000.  E-Way bill not required to be issued for exempted goods. Eway bill also not to be issued if goods are travelling within 10 km radius. Unified E-Way bill system will be rolled out from 01st October'2017. There will be no check posts and the whole process will be technology-driven with minimum human intervention.

►FM appeal to businesses to pass on  input credit benefits to consumers.

►To set up state, centre screening panel on Anti-profiteering within 15 days.

►The next meeting of the GST Council will be held in Hyderabad on September 9.

22nd GST Council Meeting on 05 August 2017

Today, the 22nd GST Council meeting is being held. Focus would be on E-Way Bill Rules and Anti Profiteering Provisions. To address issues raised by Textile Industry. Just some days back FM Mr. Arun Jaitely was talking to merge 12% and 18% rate, so may consider a new tax rate 15%.

To Keep GST free of Corruption and Red Tape would be a tough challenge. Just two days back, GST Council had to defend arrest of theirSuperintendent who was recently posted in the GST Council Secretariat with the charge of corruption. GST Council’s argument was he committed corruption before joining GST Council. It is really shocking because in a small private company, Even if a peon is appointed, all reference checks are done, the way GST Council defended its accused officer was so childish, I think they must hire a good professional PRO/CMO.

Everyone knows E-Way and Anti Profiteering both are the areas, where chances of corruption are very high, unless parallel punishment provision for GST Officers are set in the law, honest people would kept harassing. The limit should be Rs. 1 Lakh under E-way rules, system should be simplified like info (Inv/Challan no, date, items, Qty, Value and Vehicle No to be send and acknowledged) shared through Mobile and Once Goods reached the recipient can acknowledge the receipt of goods thru SMS against 1st Acknowledgement No, and transaction gets closed. Focus of GSTN would be only on Open Transactions. Here no need for transporters to carry smart phones, even in a city like Delhi there are many areas where no mobile network works, so how can it be assumed on distant high-ways. Similarly anti profiteering dept would be free from politics and totally transparent, otherwise some Baba Ramdev & Co would file a case against company like Nestle and new tamasha will begin.

Awaiting Minutes of Meeting. Let’s see what is new ? Thanks.

Income Tax Return Filing Date Extended

In view of the difficulties faced by taxpayers, date for filing of Income Tax Returns for FY 2016-17 has been extended to 5th August, 2017.

Income Tax Return Filing Mess : Lessons for all GST Practitioners

Income Tax Return Filing Mess : Lessons for all GST Practitioners

Just 3 hours back Income Tax India tweeted :

Don't forget to file your Income Tax Return by 31st July,2017 for FY 2016-17.

Attention Taxpayers! Last day today!

By Now 958 tweets have been posted in response to this tweet. Mostly by Angry & Frustrated Tax Payers and Professionals, as for last three days E-filing Portal of Income Tax is not working properly, Most of the time either it is slow or down.

People were expecting date to be extended due to GST Pressure and Many states are badly affected by flood, no electricity, no internet. How will they file their ITR ?

But this is also a lesson for all GST Practitioners, There would be huge load on GST Portal on every 10th, 15th and 20th. So, Plan to file/validate all returns/data in advance. Do not wait for last day or moment. Most of the forms are yet to be uploaded on GST Portal. No State wise portals have been activated till now.

Once I made a rule - 123. 1 means 1 working day before due date, Relax. 2 means before 2 working days from due date, deposit tax/file return, 3 means before 3 working days from due date, complete and finalize all working.

It is not easy to get data/info from client on time, so keep reminding them. Thanks.

Some Basic Information about Income Tax Return : FY 2016-17 (AY 2017-18)

Some basic information about ITR.

Filing ITR Online is very simple and easy task for Salaried People. Takes only 5 to 15 minutes, if Income Tax Portal is working under normal conditions. Most of the data is Pre-filled based on PAN. Aadhar should have been linked.

But What happens if you do not file ITR on Time? Sharing an interesting article on the same.

http://indianexpress.com/article/india/what-happens-if-you-cross-the-deadline-to-file-income-tax-returns-4769786/

Happy Sri Tulsidas Jayanti

महान राम भक्त और संत श्री गोस्वामी तुलसीदास जी की जयंती के शुभ अवसर पर सभी भाई बहनों को हार्दिक शुभकामनायें। तुलसीदास जी ने न केवल रामायण की सरल भाषा मे रचना कर राम कथा को जन जन तक पहुँचाया बल्कि हनुमान चालीसा के रूप मे हनुमान जी का यश गायन करके समस्त पावन आत्माओं को कृतार्थ किया। हनुमान चालीसा एक ऐसी रचना है जिसके पठन, श्रवण और गायन से न सिर्फ दुःखों कलेशों का नाश होता है बल्कि जीवन एक दिव्य यात्रा मे परिवर्तित हो जाता है। जिनके स्मरण मात्र से बल और बुद्धि की प्राप्ति हो और जिनके नाम का जाप करने से मोक्ष, ऐसे महान हनुमान और श्री राम को साधारण जन से जोड़ने के लिए ये समाज सदा उनका आभारी रहेगा।

Back to Basics - 1 : CMA : Costing Accounting Standards

Back to Basics. Many years ago I asked one of my friends, who was Black Belt Holder in Karate. Who was practicing Basic Moves, Katas, Front & Side Kick. These are White Belt level things, Good for students who have just joined Karate Classes. Now you are an Expert, Shouldn't you practice some advance moves, High & Flying Kicks, Breaking Heavy Boards and Bricks. Why Basic techniques ?

He answered ? Sukhvinder, the day I leave practicing basic stances, moves, katas, punches, blocks & kicks, I won't be able to perform any advance technique. Y'day I saw a school kid may be going to some karate club in Karate Uniform in our street and this incidence flashed in my mind.

and I was thinking, It is not just about Martial Arts, But all professionals to be in touch with basics. So, For We Accounting Professionals CA/CMA/CS, I am starting a new series today, #BackToBasics Let's see where we stand ? :)

First post is about my CMA Friends.

Do you know how many "Cost Accounting Standards exist today?"

Have you ever used any one in your job related assignment/s?

Be honest to yourself. Can find on google, but fist try honest attempt. Do not reply to me. But this is about Do We still remember what we studied in our Exam Days ? Thanks and All the Best.

#BackToBasics - 1

CGST Rules, 2017: Chapter XIV: Transitional Provisions: GST Forms

CGST Rules, 2017: Chapter  XIV: Transitional Provisions: GST Forms

Form: GST TRAN – 1

Who has to file: Every Registered Person entitled to claim ITC u/s 140. (Who has filled 6 months returns under existing law immediately preceding the appointed date)

When to file: Within 90 days from appointed date.

What it contains:

1. Amount of tax credit carried forward in the return filed under existing law.

2. Detail of Statutory Forms (C/F/H/I) Received (for which credit is being carried forward). Party & Form wise detail.

3. Detail of Pending Forms (C/F/H/I).

4. Detail of Capital Goods with unavailed cenvat credit. (Invoice wise detail).

5. Detail of Input held in stock by one who was not registered under earlier law/was dealing in exempted goods now taxable etc.

6. Detail of stock not supported by invoices/documents evidencing payment of tax.

7. Detail of stock sent to Job Worker/Agent and held on behalf of Principal.

Form: GST TRAN – 2

Who has to file: Every Registered Person entitled to claim ITC against inputs held in stock but not in possession of any invoice/document evidencing payment of Tax, not being a manufacturer or service provider, but a Trader.

When to file: Every month for six months. (At the end of each month).

What it contains:

1. Detail of Inputs Held with no Tax Payment Evidencing Document.

2. Detail of outward supply made during the month and ITC allowed.

ITC against CGST (60% if rate is 9% or above, 40% if rate is less than 9%, 30% or 20% in case of IGST).

The tax payers who belongs to state where Vat was applicable at single point like Punjab can also claim Same Exemption on SGST.

MAAT: Sukhvinder (@gstsukh)

Mismatch in Income with Form 16/16A? How to Handle. (Clear Tax)

There may be cases when in income tax return income shown by you does not match with income declared in form 16/16A, in such cases, you may get notice from Income Tax Department. But, if you have valid reasons for difference and can explain with documents, nothing to worry.

Everything under Taxes is being automated now a days, there are many benefits of automation, fast processing, accurate results but a big disadvantage is that It lacks common sense. It works according to codes set in programs. e.g. in Form 16, Part A, Income can be Net Income on that TDS is deducted e.g. if Someone's TDS deducted upto Feb'17, no tds will be deducted in March'17, But detail in Part B will capture total Salary for the FY. So, even in form 16, there would be mismatch in part A and part B. There is valid reason, but Computer ko kaun Samjhaye ki India mai aisa bhi hota hai ? It will happen in future, But as of Now, have to go with current system.

Other differences may be as no proof of investment could be submitted in company on time, but now showing the same in ITR.

Here is link of useful article published by Clear Tax attached suggesting what strategy to use or steps to be taken if notice is issued by Income Tax Office for Mismatch in Income with form 16/16A. Thanks.

https://cleartax.in/s/received-notice-mismatch-income-form-1616a-heres-need/

GST - कुछ काम की बातें - 4 - RCM - The Real Pain

The Provisions of Reverse Charge Mechanism under GST are real pain in neck for both Buyer and Seller (URD). On the one hand URD Sellers have lost many of their permanent customers, other hand Buyers facing accounting and record keeping issue for minor purchases/expenses.

Just to give some relief GoI give relaxation vide notification no. 8/2017 dated 28.06.2017.

“exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable subject to the aggregate value of such supplies of goods or service or both do not exceeds five thousand rupees in a day”

NB: This notification is only for CGST, if you buy goods worth Rs. 5000/-, taxable at 18%. You will get exemption of 9% only. To avail exemption of 9% SGST, ensure state govt has also issued similar notification. God knows, why GST Council is not taking the responsibility to get the notification issued by state govts. One Nation One Tax – Only an Illusion unless one single authority takes the responsibility.

A, RD at Nehru Place buy some stationery from B, URD at Sadar Bazar for Rs. 4800/- on 21.07.2017, makes the payment on 24.07.2017 and book in his account on 25.07.2017.

What date to consider to check exemption limit?

It should be 21.07.2017, Date of receiving Goods & Services. So ensure to book petty expense on the same day. Would be tough where someone from Admin handle all expense through Imprest account. Have to do accounting at micro level. Earlier many companies used to get one bill for the month for petty expenses, but now they have to split it on daily basis to avail exemption.

Also if in same case, A is from Noida, then, No Exemption. It is only for Intra-State.

  #GST - कुछ काम की बातें - 4 ]