GST Return Filing Day Subjected to Extend Till June 2018

It is rumored after the latest meeting of GST council held on 9 March that the GST return filing date may get extended till June of this year.  The Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, is also expected to finalize a simplified return filing procedure for businesses registered under Goods and Services Tax (GST) regime.Simplified sales return GSTR-3B was introduced in July, the month of GST roll out, to help businesses to file returns easily in the initial months of GST roll out. This was to be followed with filing of final returns — GSTR – 1, 2 and 3.

With businesses complaining of difficulty in invoice matching while filing final returns as well as complications in GSTN systems, the GST Council in November last year extended GSTR-3B filing requirement till end of March, 2018, and did away with filing of purchase return GSTR-2 and final return 3.The last date for filing initial GSTR-3B returns for a month is the 20th of the subsequent month.

The GST Council had in January entrusted Bihar Deputy Chief Minister Sushil Kumar Modi led GoM to work out a simplified return filing process so that businesses can fill up only a single form to file returns under GST. The group of ministers met last month to work out a simplified return form, but the meeting remained inconclusive. In the Group of Ministers meet, the Centre and state officials presented their model for return simplification, while Nandan Nilekani also made his presentation. The idea is GST return form should be simplified, it should ideally be one return every month, Modi had said.

About 8 crore GST returns have been filed so far on GST Network portal since implementation of GST on July 1. For no hassle in filing GST return or anything related to GST, you can contact a reliable and trusted tax services company that could help you in all desires of yours related to your business and GST return.

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How to Know If Employer is Depositing TDS to Government

Scam season is not stopping in India as if now. After the Punjab National Bank and Rotomac scams, it is now being reported that the Income Tax Department has unearthed an Rs 3,200 Crore scam where 447 companies deducted tax from its employees but did not deposit it with the government and diverted to further their business interests.

Well, you must be casual knowing this because you might be thinking that this is the headache of the employer only and you don’t have any role in the same then you are wrong because as per the law you may be caught under the law if your TDS is not filed even from the company’s side.

This is because if TDS is cut from your salary and is not deposited with the department there will be a mismatch in your Forms 16 and 26AS, which can in turn lead to litigation. The department will send you a demand notice as tax deducted from your salary (reflected in Form 16) will not match with the tax deposited against your PAN (reflected in Form 26AS) in the department records.

A company is required to file TDS returns with the tax department on a quarterly basis. The last date of filing TDS returns for the company is one month after the end of the quarter. Therefore, for the quarter ending June 30, 2018, the due date for the company to file its TDS returns is July 31. It should be noted that the due date for the quarter ending 31 March is 31 May. Therefore, the Form 26AS for the last quarter will be updated post May 31.

According to tax experts, it is important that your cross check your Form 26AS with the TDS certificates and Form 16/Form 16A during the year as well as at the time of filing of returns. If there are any discrepancies, you must inform the tax deductor immediately to make sure that necessary steps are taken to rectify the mistake.

As for employees, it is their duty to provide PAN details to their employer. In case of non-availability of PAN, your taxes will be deducted at a higher rate. More importantly, if wrong PAN details are provided, then the TDS deducted from your salary will not be reflected in your Form 26AS which is linked to your PAN. So, despite of getting fooled, it is better for you to enquire properly. Do consult a tax saving company that would provide you with the best solution in the same.

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Income Tax Changes That Would Be Effective From April 1

Finance minister, Arun Jaitley did not tinker with the income tax slabs nor did he raise the exemption limit in Budget 2018, but there were a few proposals that will have an impact on how much taxes you will pay. Here are the most important income tax changes that will come into effect from April 1, 2018, once the Parliament passes the Finance Bill.

Re-Introduction of Standard Deduction: In a relief to the salaried class, the FM has re-introduced standard deduction of Rs 40,000 from salary income. Apart from salaried class, even pensioners will be allowed to avail the benefit of this deduction. Central Board of Direct Taxes (CBDT) Chief Sushil Chandra has clarified that to avail this tax benefit one would not be required to submit any proofs or bills, it can be claimed straightaway.

Transport Allowance And Medical Reimbursements To Become Taxable: While standard deduction has been reintroduced, the tax benefit available on transport allowance and medical reimbursements has been taken away. Currently, transport allowance of Rs 19,200 and medical reimbursement of Rs 15,000 per annum is exempted from tax. If the Budget is passed by the Parliament, then starting from April 1, 2018, these two allowances will become a taxable part of your salary.

Cess Hiked To 4 Percent: Cess levied on your tax liability has been hiked by 1 per cent from the current 3 per cent to 4 per cent. This cess will be called “Health and Education Cess.” So, if you have net taxable income of Rs 5 lakh, your tax outgo will marginally increase by Rs 125. Similarly, for someone with a net taxable income of Rs 15 lakh, their tax liability will increase by Rs 2,625.

Introduction of Tax on Long-Term Capital Gains (Ltcg) On Equity and Equity-Oriented Mutual Funds: Starting from April 1, tax will be levied on LTCG arising from the sale of equity and equity-oriented mutual funds. Earlier, these gains were exempt from tax. It will be charged at a rate of 10 per cent plus cess at 4 per cent. However, to provide relief to small investors, LTCG up to Rs 1 lakh will be exempt from tax per fiscal.

These are the most important tax news for the taxpayers that might help them in understanding the new laws completely. Contacting a trustworthy tax service company would help you to fill the tax on time and well too.

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4 Things a Taxpayer Should Not Miss

Paying tax is for the development of the country. A taxpayer is the one on which the future of the country is dependent. There are many responsibilities in which the taxpayer is surrounded. In this article, we are going to highlight about the four very important things that a taxpayer should not and never miss. These are very important points and hence need to be evaluated and understood well by the taxpayer in order to understand the things better and to fulfill the responsibility in better way.

Don’t worry if you missed the deadline

If you have missed the filing deadline of July 31, you can still file a belated return within a year. For example, belated return for the financial year (FY) 2017-18 can be filed by March 31, 2019. Hence, if you miss the deadline, you should not worry because there is another date too.

Make sure you file your returns

Yes, your employer deducts TDS from your salary and even issues Form 16 but this does not mean it absolves you of your responsibility to file your I-T return. You should make sure that you file the returns in time to attain the maximum benefit.

Interest income

Interest earned in your saving bank account is taxable if the aggregate interest from all such accounts is more than Rs 10,000. If the interest earned is less than Rs 10,000, you will still have to report this in your ITR. If you are a senior citizen, interest up to Rs 50,000 is not taxable from FY 2018-19.

TDS on rent paid

Tenants who pay rent of over Rs 50,000 a month must deduct TDS at 5 percent. But your landlord will get credit for the TDS; you cannot set it off with your tax liability.

So, these are the four most important tips that a taxpayer should not miss at any cost. Consulting a trusted and reliable tax service company would be a better way out to meet with the expectations well.

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What are the Conclusions of 25th GST Council Meet held on 18th Jan 2018?

The GST council had a latest meet on 18th of January 2018. As we all know that GST has become one amongst the most talked about the topic of the town.  The recent development in the GST bill has really some relieving point for the business houses. To sum-up the gist of the recent meet we are presenting the points to you that will help you to understand it in better ways. Here are the recent developments made in GST council meet.

  • On this meeting the late fee has been reduced. Keeping in consideration the problem the businessmen are facing in filling the form. The reductions are mentioned below.

For GSTR-1, GSTR-5, GSTR-5A and GSTR-6 the late fees is reduced to Rs. 50 per day

In case of nil return filed for GSTR-1, GSTR-5, GSTR-5A late fee is reduced to Rs. 20 per day

  • Cancellation of registration by voluntary registrants can be applied before expiry of 1 year from the date of registration
  • Cancellation of registration (REG – 29) by migrated taxpayers extended till 31st March 2018.
  • On successful implementation of e-Way bills, the E-way bill portal to be shifted  to
  • Certain modification to e-way bill rules to be notified soon.
  • Recommendations made by Handicraft committee have been accepted by the council: The rates are to be worked out later.
  • GST Rates for 29 Goods and 53 Services have been reduced. These rates will come into effect from 25th January 2018.

These are the recent developments. To understand it in a better way, you can consult a reliable tax saving company that could help you out in this business well.

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How to Make Business GST Complaint?

GST is definitely the talk of the town. With the concept of one nation one tax, this came into enforcement. There have been many concerns and doubts related to it that has been raised. One concern of business owners is that where they should make a complaint regarding GST. Well, in this article, we would highlight the point much clearly. The goods and services tax (GST) is a fundamental revolution in the way we think about indirect taxes. It has created a single market, helping move goods seamlessly across states. The GST system has enrolled close to 10 million businesses onto a single national technology backbone, the GSTN (GST Network), and already collected over Rs3 lakh Crore in taxes in less than six months. GST was welcomed because it aimed to create an incentive for compliance, rather than punish non-compliance.

How do you design a system where a buyer can take credit for tax paid by the supplier? It was agreed that the best way was to get the buyer to “accept” the invoice of the seller by matching it with his own purchase record. In practice, however, this was implemented through a complex model which involved the taxpayer filing three returns a month, and data going back and forth. Moreover, the returns were designed for tax purposes and did not reflect the way a business operates. The filings had to be matched often a month after they were raised, within a short 5-day window, which stressed every business.

In addition, because of the worry that suppliers would not be uploading their invoices in time, buyers were allowed to take “provisional credit” for invoices yet to come. This created more complexities—mismatches, ITC reversal with interest, and reclaim of ITC. Finally the buyer was made liable by law, for the non-payment of tax by the supplier! This system was held in abeyance within a few months of the GST roll out, and the search began for a simplified system.

Now it is a big concern that how the things could be done because it is actually a big concern of the business houses. Basically, the guiding principle is that ITC should only be provided on matched invoices. To do this, first, the format in which the seller uploads invoices to the GSTN system should be what businesses are used to. Business should be able to continuously upload their invoices at a line-item level at a frequency of their choosing, hourly, daily, weekly, monthly—whatever works for them. The buyer in turn would be able to “accept” the invoice at a frequency and time of their choosing. Upload and acceptance of invoice should be enabled through multiple channels—web portal, mobile devices, spreadsheet based offline tools and direct integration of accounting packages to the portal.

All invoices uploaded and accepted at the time of a designated monthly cut-off, would be eligible for ITC. Buyers will encourage sellers to upload invoices, and will themselves “accept” invoices quickly to get the ITC. Since now getting and saving money is contingent on good data, within a matter of months the data would be very clean. With this data the system can generate tax filings automatically!

The complexity of provisional credit can also be abolished. If you do not find your invoice there, you should have a way to notify your suppliers if they have missed it. Moreover, buyers should not be held liable for the seller not paying his taxes. Whether the supplier has paid the tax is for the government to enforce, using big data and analytics. This will lead to happier taxpayers, an increase in tax revenue, and fulfil the vision of a Good and Simple Tax.

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All You Need to Know About Next GST Council Meeting on January 2018

The goods and services tax, from the time of its implementation has always been in news. With the new and the only tax for India, GST has always been in the news. Government is really trying hard from its side so that everything should be fixed and GST would attain its full form for which it was made. In this series only a new GST council meeting is going to be held soon in the month of January 2018. India is set to unveil another revamp of the goods and services tax (GST) regime soon aimed at making compliance simpler.

The GST Council meeting on January 18 is expected to take up changes in the definitions of terms such as supply and handicrafts as part of this effort besides replacing the three forms that need to be submitted with one, said two government officials aware of the development. It may also drop the requirement for upfront invoice matching, they said. These changes would be taken up by the council at the upcoming meeting, claimed one of the officials.

This will be the second significant overhaul of GST after a November rejig that saw the tax rate on 178 household goods being lowered and that on restaurants brought down to 5%. India rolled out GST, which replaces multiple state and central taxes and cesses, on July 1. The levy has been tweaked over the past few months based on feedback from businesses.

The council had set up two committees – one to review GST law and procedures and the second to formulate a definition for handicraft. Both have submitted their reports to the council secretariat and it will now take a final call on the recommendations. For the better understanding of GST, still there is much more to learn and explore. Contacting a good and trusted tax service company would help in the desire well.

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How to Claim for LTA Tax Exemption This Year

In many organizations, the year-end holidays are a norm. In others, the employees apply for long leave in advance, well ahead of their travel schedule, and if the travel costs are reimbursed by the employer nothing like it. Employees who are eligible for Leave Travel Allowance (LTA), as part of their Cost-to-Company (CTC), can claim reimbursement of expenses incurred on travel. This reimbursement is not included in taxable income subject to certain limits and conditions. LTA tax break can be claimed for travel of self and family members for journeys undertaken only within India. Family includes spouse and children, whether dependent or not, and parents, brothers, sisters who are fully or mainly dependent on him.

LTA tax break is not available for more than 2 children if born after 01.10.1998. This restriction does not apply to children born before 01.10.1998. The non-taxable reimbursement of travel costs is limited to the actual expenses incurred on air, rail and bus fares only. No other expenses, like local conveyance, sightseeing, etc., qualify for the tax break, which is not available every year. It is available for 2 journeys in a block of 4 years. The block applicable for the current period is calendar year 2014-17. The previous block was calendar year 2010-2013.

Going forward, the new block will be 2018 to 2022. To avail of the tax break, the employee has to furnish documentary evidence of the travel to the employer. In case you don’t travel at all or you don’t submit the travel bills, the LTA amount gets paid as part of the employee’s salary after tax deduction as per the applicable income slab. The LTA tax break is in the nature of a reimbursement which is not taxed; therefore, it is with respect to the actual expenditure on fare. Hence, if no journey is performed, no tax break is available.

Even though the rules set by Income-tax Department are crystal clear, the accounts department of several organisations may follow their own set of guidelines. Therefore, before availing of any such exemption, it’s better to get clarity, well in advance. The advice from a good tax service company can also help you in the concern.

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What are the Documents Required for GST Registration for Companies

There have been many rounds of discussion regarding GST. For the companies it has now become a mandatory act to get a GST number for the smooth business. Getting GST number is now easy. All what one needs is a proper knowledge of the things so that, he may handle the requirements in that manner only. Any persons or entity providing taxable supply of goods or services to persons in India with an annual aggregate turnover of more than Rs.20 lakhs is required to obtain GST registration.

In some special category states like Assam, Nagaland, Manipur and other, the aggregate turnover criteria has been reduced to Rs.10 lakhs. Other than the aggregate turnover criteria, a person could be required to obtain GST registration, if they undertake inter-state supply of goods or services or have an existing VAT or service tax or central excise registration. Here is the list of documents that one would need for company registration under GST and to get GST registration number.

In Case of Sole Proprietorship/Individual

Documents Required for Individual

  • PAN card and Identity Proof of the Individual
  • Copy of cancelled cheque or bank statement
  • Declaration to comply with the provisions

Registered Office Documents

  • Copy of electricity bill/landline bill, water bill
  • Rent agreement (for rented premises)
  • NOC (No Objection Certificate) of owner

In case of Private Limited Company (Pvt. Ltd.)/Public Company (Limited Company)/One Person Company (OPC)

Company Documents

  • PAN card of the company
  • Registration Certificate of the company
  • Memorandum of Association (MOA) /Articles of Association (AOA)
  • Copy of Bank Statement
  • Copy of Board resolution

Documents Related to Director

  • PAN and ID (Identity Proof) of Directors

Documents for Registered Office

  • Copy of electricity bill/landline bill, water bill
  • Rent Agreement (for rented premises)
  • NOC (No Objection Certificate) from the owner

In case of Normal Partnerships

Documents for Partnership

  • PAN card of the Partnership
  • Partnership Deed
  • Copy of Bank Statement

Partner Related Documents

  • PAN and ID proof of designated partners

Documents Required for Registered Office

  • Copy of electricity bill/landline bill, water bill
  • Rent Agreement (for rented premises)
  • NOC (No Objection Certificate) from the owner

In case of Limited Liability Partnerships (LLP)

LLP documents

  • PAN card of the LLP
  • Registration Certificate of the LLP
  • LLP Partnership agreement
  • Copy of Bank Statement of the LLP
  • Declaration to comply with the provisions
  • Copy of Board resolution

Designated Partner Related Documents

  • PAN and ID proof of designated partners

Registered Office Documents

  • Copy of electricity bill/landline bill, water Bill
  • NOC of the owner
  • Rent agreement (for rented premises)

So, these are the requirement of documents that one would need to get GST registration number. Contacting authorized company for getting GST registration number for business would be a great act.

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All You Need to Know About Senior Citizen Saving Scheme

Everyone wants to live peacefully after retirement and this could only be possible if a person is having a proper saving. To have a good saving plan after retirement is what can help a person to lead a happy life. The Senior Citizen Savings Scheme (SCSS) offers regular income, highest safety and tax saving, making it a popular product for those over 60 years of age. After retirement, people are looking for investment avenues to park their retirement corpus in.

They are hesitant to put their hard-earned money in equities, which carry capital loss risk, or products which come with a long lock-in period and don’t offer any income till maturity. Here is something much important and beneficial that you should know and learn about this scheme.

Who Can Invest? Early retirees between 55 and 60 years, who either opted for the voluntary retirement scheme (VRS) or superannuation, can also invest in the scheme, provided the investment is done within a month of receiving retirement benefits.

How to Invest: A senior citizen can invest in this scheme by opening either an individual or a joint (along with the spouse) account with a post office or a scheduled commercial bank.

How Much One Can Invest? An individual, singly or jointly, can open an SCSS account by investing up to Rs 15 lakh (in multiples of Rs 1,000) only. The amount invested in the scheme also cannot exceed the money one receives on retirement. Therefore, one can invest either Rs 15 lakh or the amount received as a retirement benefit, whichever is lower.

Number of Accounts: There is no limit on the number of accounts that can be opened, but the total amount in all the accounts must not breach the maximum investment limit.

Proof of Investment: The depositor is given a passbook once the account is opened, which includes the date of opening, the account number, the depositor’s name, photograph, address, the amount deposited, dates and amount of the quarterly interest payable, maturity date and amount, nomination details.

Taxation: Investment in SCSS qualifies for deduction under Section 80C of the Income-tax (I-T) Act. However, this tax benefit is under the overall current ceiling of Rs. 1.5 lakh per annum fixed for all investments under Section 80C.

This is the most important information for the senior citizen saving scheme. To get the best benefit of the same, gathering as much knowledge as possible is required. You can also consult a tax saving company for better result.

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