Tag Archives: VidyaSunil & Associates

Hope anti-profiteering law won’t have to be used: FM Arun Jaitley

Finance minister Arun Jaitley has expressed the hope that the government
will not have to use the anti-profiteering provision of the goods and services tax (GST) and said prices should drop overall under the new regime to be put in place on July 1.
Jaitley said in an interview that there may be some challenges initially, but expects
companies to get accustomed to GST quickly, calling for patience as the reform is rolled
out.
“On an overall basis, the net weighted average of the whole consumption basket is less
than what it was,” he said. “So, in terms of weighted average it should come down.”
India is one of the few countries that has shown it has the ability to carry out structural
reforms, Jaitley said, citing insolvency laws, overseas investment reforms and the Air India disinvestment plan.
On some sections of industry seeking a GST deferral, the minister said the government
has been atypically ahead on this count.
“Normally, in a reform process, the private sector is ahead of the government,” he said.
“This time government seems way ahead of private sector. For an industry association to
say postpone it in face of a constitutional amendment was highly regrettable.”
The minister expects companies to pass on the benefits of GST. “There is already an inbuilt mechanism of anti-profiteering clause,” he said. “I hope we do not have to use it. It should act as a deterrent.” GST is expected to reduce incidence of taxation on goods by
providing full credit for taxes paid on inputs.
The anti-profiteering clause has harsh provisions including cancellation of GST registration of those not sharing gains.
He said GST — which replaces 17 taxes such as central excise duty, service tax, value-added tax, and 23 cesses —was an efficient and simple tax.
“There will be challenges initially,” he said. “There can be hiccups even in the most perfect technology but the beauty of a perfect technology is that it removes those hiccups as soon as possible. This is a reform that is in the interest of the common man, traders,
businesses, industry and the whole country. You need to be patient.”
In response to a question on the possible boycott of the proposed midnight launch ceremony by some political parties, Jaitley said GST is a ‘saanjhi vyavastha’ (joint mechanism) for the whole country that was finalised with the contribution and support of all parties.
“We have had consultation at every stage of the formulation of the new tax. At the time of the constitutional amendment, we incorporated suggestions made by Congress,” he said. “All bills have been approved by them. Their state governments have passed
GST legislations. Finance ministers of the states where their party is in power have participated in the council and agreed to the GST framework.”

He said India had created a federal institution in the GST Council and hoped that the tradition of decision-making by consensus will be followed in future as well.
KEY POLICY CHANGES 
India is one of the only countries making such key policy changes, he said.
“The whole world accepts that if anyone has shown the potential to carry out structural reforms (in the current global situation), it is India only. We carried out FDI reforms, we got largest FDI in the world… The government and prime minister have shown that political-level corruption can be ended,” he said.
Source : Economic Times
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

Details required for GST Registration

  1. Valid E-mail Address :

 

  1. Valid Mobile Number :

 

  1. Bank Account details

Bank name:

Account number:

Account type:

IFSC Code of all the bank accounts maintained:

  1. Details related to business

Registered name as per VAT:

Registered name as per PAN:

PAN number of the Business:

Constitution of Business: Partnership Firm / Private Ltd. Co. / Individual,

Address of Business:

Details of State VAT: Karnataka

Excise Registration No. :

   Note: Since GST Number is pan based, only one registration in a state can be migrated to the GST Portal.

          Details related to promoters/ partners/ directors

Name:

Father’s name:

Date of Birth:

Address:

Email ID:

Cell No. :

PAN number:

Passport (if not a citizen of India)

 

Details related to authorized signatory

Name:

Father’s name:

Date of Birth:

Address:

Email ID:

Cell No. :

PAN number:

Passport (if not a citizen of India)

Note: More than one authorized signatory can also be added.

 

Details related to Principal Place of business

Address:

Email ID:

Phone number:

 

Business Premises: Owned or leased,

Nature of activity carried on:

 

Details related to Additional place of business:

Address

Email ID

Phone number

Owned or leased

Nature of activity carried on

 

Details of goods and services supplied

HSN code for products for products / SAC code for services.

Maximum 5 products can be added in the application.

 

Documents Required for Enrollment  

Proof of Constitution of Business

  • In case of Partnership firm: Partnership Deed of Partnership Firm

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

  • In case of others:

Relevant Proof of Constitution, (In case of Proprietors, Existing VAT Registration certificate / Central Excise Registration Certificate / ST registration certificate be uploaded)

Photograph of Promoters/ Partners/ Karta of HUF JPEG – Size 100 KB

 

Proof of Appointment of Authorized Signatory (Board Resolution in case of Companies / Authorization letter in case of others entities)

In file PDF or JPEG with Size 1 MB

 

Photograph of Authorized Signatory: In JPEG file with Size 100 KB

 

Proof of Principal place of business: Valid Rental Agreement or Sale Deed / Municipal Tax Receipt PDF or JPEG – Size 1 MB

 

Opening page of Bank Passbook/ Statement containing Bank Account Number, Address of Branch, Address of Account holder and few transaction details PDF and JPEG : Size 1 MB

 

Digital Signature Formalities

Please sign across the photo @ specified place with Blue ink only. Kindly do not fill the application; we will take care of this.

 

Provide PAN Copy and for Address Proof*** (Please read : Address Proof document as in Application Form – Kindly provide one of those)  duly attested by your personal bank manager.  Attestation shall be in “Blue Ink Only”.

 

Kindly take note that the Bank Manager has to specify the following below details without fail:

  1. Name
  2. Designation
  3. Office address
  4. Contact no. (Office landline or his cell no.) Along with their
  5. Email id.

 

You will receive a verification call to the given mobile number and DSC passwords will be sent to the provided mail ID ( for Download)

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

Karnataka assembly unanimously passes state GST bill

With less than a month left for the rollout of the GST, the ‘Karnataka Goods
and Services Tax Bill, 2017’ was unanimously passed by the state assembly here today.
Before Karnataka, as many as 24 states and Union Territories had passed the State
Goods and Services Tax (SGST) bill in their respective legislative assemblies.

As per the GST Constitutional amendment, all states have to pass SGST bills by
September 15, 2017, failing which they will lose their taxation powers.

Piloting the bill, Karnataka Chief Minister Siddaramaiah said the state has always been at
the forefront of issues like implementing tax reforms, including VAT.

“Even the World Bank has acknowledged Karnataka as the most progressive states in
implementing tax reforms,” he added.

Countering this, Vishweshwara Hegade Kageri (BJP) said the image of the state took a hit
for not being the first state to pass the SGST bill, especially after being the first state to implement VAT.

“Karnataka should have been first to have agreed to implement GST, especially after the state was first to implement VAT in the country… But this did not happen… This is one of the examples where it hurt the image of Karnataka being a progressive state,” the BJP
leader said.

Kageri also slammed Siddaramaiah for not agreeing to implement GST on earlier occasions despite 50 per cent of the states agreeing to do so.

“Everybody knows the hurdles created by your party (Congress) in parliament to stall the bill, which was your own baby,” he argued.

Taking an indirect dig at BJPruled states, Siddaramaiah said as many as 24 states and one union territory have agreed to implement GST, but initially Gujarat, Madhya Pradesh and Rajasthan were against it.

Siddaramaiah also said since parliament has already passed GST Bill, the state assembly did not have much scope to debate over it because decisionmaking powers are vested with the GST Council.

However, suggestions submitted by members will be presented during GST Council meetings, he added.

The Chief Minister said he did not attend the GST Council meetings because he did not get time and had deputed Agriculture Minister Krishna Byre Gowda.

Source : Economic Times

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

GSTN Registrations Set to Open Doors for E-Commerce Vendors

Small businesses won’t face the risk of their products being taken off online marketplaces

E-commerce com panies such as Amazon, Flip kart and Swiggy concerne about losing business after th rollout of the goods and services tax (GST) on July 1 shouldn’ have to worry about being for ced to exclude pro ducts sold by unregistered vendors.

The GST Network, which provides the new tax regime’s technological backbone, plans to start registra tion of new taxpayers soon to ensure there is no disruption in online commerce.“Registration for first-time taxpayers will open soon in about a week’s time,“ said a GSTN official.

All vendors on ecommerce platforms have to be registered on the GST Network.That’s because online market platforms have to mandatorily collect tax on any payment they make to a supplier.

The market places have been grappling with the matter as a d substantial number of vendors e fall below the tax threshold and hence aren’t registered with the  tax authorities of either the states or the Centre.

Many of these are small businesses, some even operating from home. Another set of sellers were only offering taxexempt items on these platforms and hence were not required to pay tax or register with the tax department.

Industry representatives who recently met finance ministry officials to lobby them on the issue were told that registration would be opened up soon, an e-commerce executive told ET.

GSTN had only opened enrol ment for existing taxpayers who were migrating to GST from either value-added tax, service tax or central excise duty and not for fresh registrants.Thursday was last day for enrolment in the second round.

The third round will open on June 25. It is expected that registration of the first-time vendors will begin before that. While early registration will be good, the government can consider providing some relief to vendors, experts said.

“Alternatively, the government may want to consider giving a relaxation to vendors to obtain the registration after GST is implemented till say the first GST return is filed.“The first GST returns have to be filed on August 10.

Source : The Economic Times New Delhi, 16th June 2017

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

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.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Small Traders want penal norms delayed

With 60 per cent of the country’s small traders yet to be computerised, wholesalers and traders are demanding amnesty from penal provisions of GST for atleast nine months.

A large number of small traders are still not educated about GST and there are expected to be teething problem for them in the initial phase.

GST is expected to replace hand-written receipts as traders will need to maintain computerised records and file returns online. For that they will need to upgrade their existing business format and link digital payment with GST among other things.

“We are asking for interim period for general traders for whom so far no interaction has been initiated by the government and they are still unaware of nitty-gritty of GST. Since GST is a new thing for the trading community interim period will be best suited  to bring more people under GST net,” said Praveen Khandelwal, Secretary General, Confederation of All India Traders ( CAIT).

He said that when VAT was introduced there was around three years as transition period. Khandelwal said that during the trial period no penal action should be taken against any trader for procedural lapses.

As per the GST Council decision, traders in the country with revenue above Rs 20 lakh have to register for GST. “Till now GST rules have not been completely been framed. There are many things in pipeline. Trading community across country need to be informed about GST and GST is entirely different kind of taxation system against current tax regime. So it is obvious that during its operations there may be procedure lapse by the trading community,” he said.

“Still 60 per cent of the small businesses in the country  has not adopted computerisation which is a major challenge because GST is technology based taxation system,” he added.

Source: The Asian Age

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

ANGEL INVESTMENT

ANGEL INVESTMENT:

Angel Investment means investment in equity shares of startup companies by investors. Such investors who invest in the equity shares of startup companies are called Angel Investors. Angel investors are essentially the well-heeled individuals/firms/companies who used to form a group of investors for investment in startup companies or small entrepreneurs.

PROVISION OF ANGEL TAX

The provision of Angel Investment Tax was introduced in the Union Budget of 2012. Under existing rules, funds raised by an unlisted company through equity issuance are covered under this tax to the extent the amount raised is in excess of the fair market value. Such extra inflow was taxable as “income from other sources” under Section 56(2) of the Income-Tax Act, 1961 (IT Act) and charged the corporate tax rate, resulting in an effective tax of over 30%.

Section 56 of the IT Act, 1961 confers on tax authorities the power to levy excess consideration, more than the fair value, against issue of shares. Section 56 (2) (viib) of the Income Tax Act states:

“Any consideration received by a company (startup) from a resident, against issue of shares, exceeds the fair market value of such shares; such excess consideration is taxable in the hands of the startup, as an income.”

Therefore, under Indian tax law, if an Indian company receives share subscription amount from an Indian resident which exceeds the fair value of shares, then the excess amount is taxed as income of such Indian company.

EXEMPTION OF ANGEL TAX

The Government of India had, now as an initiative to promote start ups, scrapped the so-called ‘Angel Investment Tax’ on investors providing funding to startups.

The Central Board of Direct Taxes vide Notification1 dated June 14, 2016 (CBDT Notification) had made the required changes in Section 56(2)(viib) of the Income- Tax Act, 1961 exempting startups raising funds from angel investors.

It may be noted here that for the purpose of this CBDT Notification, “startup” shall mean a company in which the public are not substantially interested and which fulfills the conditions specified in the Notification2 of the Government of India, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion (“DIPP”), number G.S.R. 180(E), dated the 17th February, 2016, published in the Gazette of India, Extraordinary, part II, section 3, sub-section (i), dated the 18th February, 2016.

As per Notification of DIPP dated February 17, 2016 an entity is considered as a ‘startup’-

  1. Up to five years from the date of its incorporation/ registration;
  2. If its turnover for any of the financial years has not exceeded Rupees 25 crore; and
  3. It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;

Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘startup’. It is to be noted that under the said Notification of DIPP, clarity has been given as to what will qualify as innovation, development, deployment or commercialization.

Accordingly, a firm/company would be considered a start-up if it is incorporated or registered in India not prior to five years, with an annual turnover not exceeding INR 25 Crore in any preceding financial year and at the same time, it should be working towards development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. Further, Startups would need to get a certificate from the Inter-ministerial Board of Certification to get the status of startup.

Therefore, investment in every startup is not eligible for the exemption and only such startups which fulfill the conditions specified by the DIPP, as mentioned herein above, are eligible for exemption from Angel Investment Tax. Further, the said exemption will not apply to retrospective investments.

CONCLUSION

The exemption of Angel Investment Tax for specified startups is a step forwards in implementation of Startup India programme initiated by the Government of India. Due to high tax rate on Angel Investment in India the investors usually hesitate in making investment in such startup companies.

This affects the economic growth rate of the country as well. Now the eligible startup companies need not have to pay Angel Tax even if it exceeds the fair value of shares. This will benefit the resident angel investors as well which are not registered as venture capital funds with Securities and Exchange Board of India.

Although removal of Angel Tax will not benefit all the startups because of the stipulation attached in the Notification of DIPP i.e. only those start ups which have a certificate from the Inter-ministerial Board, fulfill criteria like not being more than 5 years old, turnover not exceeding INR 25 Crore, working towards innovation & commercialization of new products or services and driven by technology or intellectual property, will have the benefit and accordingly, such exemption would be welcomed by the investors as well as by the startup companies which needs such investment.

This will promote the investment in India and definitely provide a huge relief to angel investors and eligible startup companies.

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