Tag Archives: GST Consultant

SMEs will benefit from composition scheme, says CBEC chief

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna has said that small and medium enterprises engaged in trade, manufacturing and restaurants business will benefit under the new limit of the Composition Scheme for the GST.

“Everybody will get the benefit, those who are already listed in the services or the traders or manufacturers among services… without any change in the rate that is already listed in the section,” Sarna told.

On Sunday, the GST Council decided to allow traders, manufacturers and restaurants with turnover of up to Rs 75 lakh to avail the composition scheme. The bar was earlier set at Rs 50 lakh.

Under the scheme, traders with turnover of up to Rs 75 lakh will be required to pay one per cent tax, while manufacturers will have to pay two per cent and companies engaged in restaurant business five per cent.

“Initially it was up to Rs 50 lakh. The Section 10 of the Act provides it to be increased up to Rs 1 crore. There was a discussion about the difficulties of the small and medium sector and because the central excise assessees were actually exempt below Rs one and a half crore, so it was felt it could be a hardship to them,” Sarna elaborated.

“So the council deliberated a lot on this and finally came to a conclusion that it would be appropriate to make it Rs 75 lakh instead of Rs 50 lakh and that may cover the concern of the small and medium sector.”

However, the business which avail the scheme will not be eligible for input tax credit.

Source: India.com

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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GST registration opens: procedure to enroll for GST registration by existing taxpayers

Introduction

Goods and Services tax (GST), which is often known as a historic reform, is now around the corner. After president Pranab Mukherjee gave his assent on September 8, 2016, the Government is firing on all cylinders to implement GST by April 1, 2017.  However, the implementation will be little early for the existing tax payers.

The existing taxpayers will have to enroll themselves under the GST database by the end of this month. Goa’s state government has already issued a deadline of November 29, 2016, and asked all the existing tax payers in the state to enroll themselves on http://www.goacomtax.gov.in.

Who all are liable to enroll?

Existing taxpayers are liable to enroll under GST system portal. An existing taxpayer is an entity registered with any of the authorities;

  • Central Excise
  • Service Tax
  • State sales tax/VAT (except exclusive liquor dealers)
  • Entry tax
  • Luxury Tax
  • Entertainment tax

Further enrollment here means validating the data of existing taxpayers and filing up the remaining key fields.

Which is the final date of enrollment?

If you are a taxpayer in Goa, then you should read the notification and get yourself enrolled before November 29, 2016.

For rest of India, the dates have also been announced. The table is as follows:

STATES START DATE END DATE
Pondicherry, Sikkim 08/11/2016 23/11/2016
Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh 14/11/2016 29/11/2016
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram 30/11/2016 15/12/2016
Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan 16/12/2016 31/12/2016
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh 01/01/2017 15/01/2017
Service Tax Registrants 01/01/2017 31/01/2017
Delta All Registrants (All Groups) 01/02/2017 20/03/2017


Procedure for enrollment under GST System Portal

#Point 1 – Paperless procedure: The whole system of enrollment will be paperless; hence, no hard copies shall be entertained by the department. Further, all the aforesaid registered taxpayers will need to visit the GST system portal.

Further, it is mandatory for every person to register if the annual turnover is more than Rs 20 lakh, the exemption limit.

#Point 2 – Provisional ID and password: Before visiting the GST system portal, you must have the provisional ID and password given to you by your concerned state authorities.

In Goa, all the registered taxpayers will have to visit the government office between November 9 and November 11, 2016, to collect sealed envelope containing the provisional ID and password.

The provisional ID format is here as under:

Hence, contact your ward officer to complete the online pre-registration under GST.

#Point 3 – Documents and information required: To complete the registration procedure, you must have the following information:

  • Provisional ID as explained in point 2.
  • Password as explained in point 2.
  • Valid email address (it should not be off professional – Use your own email ID)
  • Valid mobile number
  • Bank account number
  • IFSC code

Further, also carry the following documents which needs to be uploaded on the website:

  • Proof of constitution of business:
  • In case of partnership deed – partnership deed (PDF or JPEG in maximum file size of 1 MB).
  • In case of others: registration certification of the business entity (PDF and JPEG format in maximum file size of 1 MB).
  • Photograph of promoters/partners/Karta of HUF (JPEG format in maximum file size of 100 KB).
  • Proof of appointment of authorised signatory (PDF and JPEG format in maximum size of 1 MB).
  • Photograph of authorised signatory (JPEG format in maximum file size of 100 KB).
  • Opening page of passbook/statement containing the following information:
  • Bank account number
  • Address of branch
  • Address of account holder
  • Few transaction details

(PDF and JPEG format in maximum file size of 1 MB).

#Point 4 – Fill information and submit: After you submit the form with all the information and documents, an acknowledgement number will be generated. Save that number for future correspondences.

Here are some points which may help you during enrollment process:

  1. What to do in case I have not received the ID and password?

In case you have not received the provisional ID and password, kindly contact your concerned authorities.

  1. Who can be primary authorised signatory?

A primary authorised signatory is the person who is primarily responsible to perform action on the GST System Portal on behalf of the taxpayer. All communication from the GST System Portal relating to taxpayer will be sent to him.

For example, in case of proprietor, the proprietor himself or any person authorised by him; in case of partnership, any of the partner authorised or any person authorised; in case of Company/LLP, Society, Trust, the person who is authorised by Board or Governing Body, etc., can act as primary authorised signatory. A copy of authorisation needs to be uploaded.

  1. Which details are prefilled in the enrolment application for enrolling with GST?

Following details are auto-populated in the enrolment application based on your existing data:

  • PAN of the business
  • Legal name of the business
  • State
  • Reason of liability to obtain registration
  • Email and mobile number
  1. Can I make changes in in my legal name, state name and PAN in the enrolment application?

You cannot make changes to legal name, state name and PAN as appearing in the enrolment application. These details have been migrated from existing tax systems of State or Center, as the case may be.

Conclusion

GST is now a reality and it is far more complex and stringent when it comes to compliance. Enrollment is only a procedural aspect; however, the real game will begin from April 1, 2017. I would recommend all the existing taxpayers or the newcomers to prepare for GST. The penalties concerning it could cost you few lakh even for a small mistake.

Hence, lay down your strategy in advance and go and win the world.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Small businesses don’t need to maintain book of accounts

If you’re running a small business, you can save the cost and hassles of maintaining book of accounts and getting them audited. To give relief to small tax payers and expand the tax base, the government has a programme called presumptive taxation scheme (PTS). Under this, firms that have a turnover of under Rs 1 crore can pay tax without maintaining books and getting them audited.

This scheme, covered under Section 44AD of the Income Tax, is eligible for proprietary businesses, partnership firms and Hindu Undivided Family. Companies limited by shares, limited liability partnership firms, professionals (doctors, lawyers and architects), those earning income by way of commissions or brokerage (insurance and real estate agents), and those in the business of plying, hiring or leasing goods carriage are not covered in this scheme.

Some of these businesses and professions have higher profits margins on their turnover and that’s why the government has not included these under PTS, say experts. Those plying and leasing goods carriage are covered under Section 44AE, where the presumptive taxation is based on the number and specification of vehicles owned.

“Under this scheme, a firm needs to take eight per cent of the total turnover as its income and pay the applicable tax on it,” . The turnover includes money spent to pay sales tax. According to some experts, it’s better if service tax paid is also included as part of the turnover. So, if a proprietary business has a turnover of Rs 1 crore, the income considered will be Rs 8 lakh. This will be clubbed with the income of the owner and taxed according to the slab. “The best part is that those opting for this don’t need to pay advance tax,”.

If the business owner thinks his tax liability is lower than what he will pay under the PTS, he can do so but needs to maintain book of accounts and should get them audited, too.

Experts also say that once a person opts for this scheme, the assessee is not under any obligation to explain individual entries of cash deposits into bank account, unless the entry has no connection with gross receipts.

For all the benefits it offers, PTS comes with certain restrictions. For example, assessees cannot claim any exemptions – not even depreciation. “If a person files returns under this scheme currently and next year the turnover crosses the qualifying limit (Rs 1 crore), he will need to used the written down value of the asset while calculating depreciation,”.

This means if the current value of the asset is Rs 1 lakh and this year it depreciates by Rs 15,000. Next year, the person will need to take the value as Rs 85,000, if the business does not qualify for PTS.

Similarly, if the person is carrying forward losses from the previous financial year, he cannot adjust them against profits under this scheme.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.
Advise for contacting VidyaSunil & Associates;
E Mail ID : vidyasunilassociates@gmail.com
Cell No. : +91 9739834819

E-commerce firms to deduct tax collected at source under GST

E-commerce operators like Flipkart and Snapdeal will have to deduct TCS (tax collected at source) while making payments to their suppliers, according to the new model GST law, which has done away with the definition of ‘aggregator’.
Explaining the changes in the provision, experts said the proposal will increase the compliance burden on e-commerce operators as they will have to deduct 2 per cent TCS and deposit it with the government. The measure  will not increase the incidence of taxation on consumers as the supplier will get tax credit for the TCS. The model GST law provides for 1 per cent TCS to be deducted by the E-commerce operators.
According to experts, this would mean that a similar amount will have to be levied on inter-state movement of goods, taking the total TCS deduction to 2 per cent although burden on consumers will not increase.
Mohan further said in case of return of goods by the consumer, the e-commerce companies will not have to deduct TCS as there is no actual sale.
The draft model GST law does not provide any definition of ‘aggregators’, saying that the government would later come out with a notification specifying which type of businesses would be covered under the term.
Aggregators mainly include Ola, Uber and UrbanClap which work as platforms for providing transport and other services. The TCS provision will not apply to aggregators.E-commerce companies will also have to file returns on the TCS deductions.The model law has defined ‘electronic commerce’ as supply of goods or services, including digital products, over electronic network.
‘Electronic commerce operator’ would mean those persons who own, operate or manage digital or electronic facility or platform for electronic commerce.

 

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

States start looking for consultants for GST

States have started scouting for tax consultants to advise them on technical aspects of the goods and services tax (GST), which is planned to be rolled out from April next year.

With the Centre moving on to the fast track to meet the April 2017 deadline, the Punjab
government has initiated the process of appointing consultant to help it successfully
implement the new tax regime, which will subsume various state levies like octroi and sales tax.

According to sources, other states may also go in for consultants to assist the administration in the preparatory work for GST.

While the Punjab government is looking to appoint a consultant for two years, sources said
other states too would be looking at a similar timeline as the hurdles in implementation of GST are expected to come down in 12 years.

Among other things, the consultants will be required to suggest organisation structure of the department in the GST regime, strategy for transition period and ways to mitigate risks and checklist of tasks that need to be completed before introduction of GST.
Also, the consultant will be required to frame a communication strategy for administration visavis stakeholders such as industry and traders.

Also, the consultant will be imparting training on provisions of the GST Act/Rules and processes to officers of the department.

Besides, the entity will calculate the impact of GST implementation on state revenues keeping in view the present rate of tax in the state and the proposed rate of tax under GST.

Touted as the biggest tax reform since Independence, the GST will subsume excise, service tax, cess, VAT and other local levies and create a uniform market for seamless transfer of goods and services.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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