: GST Gyan-GST @5% on GTA Service will be Paid by Service Receiver under RCM. Service Receiver can take full credit of GST so Paid on GTA. GTA can opt for 12% GST with ITC or 5% GST with no ITC.
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: *GST Notes : Classification Chapter 10 Cereals.*
HSN 1001 to 1008
Wheat Rye Barley Oats Maize Rice Grain Sorghum Buckwheat Millet Canary Seeds and other cereals like Jawar Bajra Ragi put up in unit container and bearing a registered brand name is 5%.
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: E-payments: Govt planning 2% GST relief
NEW DELHI: You may soon need to shell out less if you pay digitally. The government is looking at giving a 2% incentive over the applicable GST tax rate in case of digital payments where the bill is up to Rs 2,000, in a move aimed at discouraging cash payments.
According to sources, the proposal which may give the benefit in the form of a discount or cash-back – is being discussed between the finance ministry, RBI, cabinet secretariat and ministry of electronics and IT.
“The idea is to incentivise all kinds of digital payments, especially smaller transactions, in line with the government’s plan of making India a less-cash economy,” a source told TOI.
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#Economy:Emerging as a significant source of investments into capital markets, Employees Provident Fund Organisation is likely to pump in Rs 250-300 billion in equities in 2017-18 with Rs 57 billion already invested this year so far. According to global brokerage Morgan Stanley, besides EPFO, the National Pension Scheme is also among the sources for driving the domestic flow surge, which has been positive for the past 17 months.
#Finance:The composition scheme, which is applicable to specific categories of small businesses whose turnover is Rs 75 lakh and below and had been closed on August 16, may return soon. With just about a million taxpayers opting for the scheme, the GST Council will consider reopening the window, giving another opportunity to small players to avail of it. The scheme is applicable to certain categories of small taxpayers — traders, restaurants, and manufacturers/suppliers.1% GST is levied on traders, 2% on manufacturers, and 5% on restaurants. A composition dealer needs to furnish one return, i.e., GSTR-4, on a quarterly basis and an annual return in Form GSTR-9A, against three forms every month by others.
#Black money worth Rs 4,900 crore was disclosed by 21,000 people under the Pradhan Mantri Garib Kalyan Yojna. The I-Tax Dept collected a tax of Rs 2,451 crore from declarations.
#The SEBI has revoked the ban on 307 entities, which had come under scanner between 2014 and 2016 for alleged manipulation and misuse of the stock market platform for tax evasion.However, Sebi would continue its proceedings against 96 remaining debarred entities, as multiple violations have been found in their case.These were among the entities that were barred through separate interim orders by SEBI for alleged violation of rules purportedly for misuse of stock exchange platforms for tax evasion and other illicit gains.
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MCA
In continuation of the Government’s resolve to strengthen the rules and procedures of Corporate Governance, the Government has took some major decisions to further strengthen these norms. It has been decided by the MCA that in case the Director or authorized signatory of any “struck off” company tries to unauthorizedly siphon-off money from its bank account, he/she may attract punishment of imprisonment of not less than six months extendiable to 10 years. If it is found that the fraud involves public interest, the punishment shall not be less than 3 years and fine may also be imposed which would be three times the amount involved. Consequent to instructions issued by Department of Financial Services (DoFS) to all the Banks on 5th September 2017, the Directors (ex-) or their authorized signatories had been restricted from operating the Bank accounts of such companies and they cannot siphon off money from the accounts of these “struck off” companies. However, even prior to such action, if they have siphoned off any money, strict action would still be taken against them. Further, it was also decided that the Directors of such shell companies which have not filed returns for three or more years, will be disqualified from being appointed in any other company as Director and it is expected that as a result of this exercise, at least two to three lakh of such disqualified Directors shall get debarred.
MCA
MCA has issued Circular to clarify the provision w.r.t Exemption to certain unlisted public companies under the Companies (Appointment and Qualification of Directors) Rules, 2014 from the appointment of Independent Directors. The exemptions have been provided to an Unlisted Public Company which is a joint venture, a wholly owned subsidiary or a dormant Company will not be required to appoint Independent Directors through the notification dated 05/07/2017. In this regard it has been clarified that Joint venture would mean a joint arrangement, entered into in writing, whereby the parties that have joint control of the arrangement, have right to the net assets of the arrangement. Further the usage of this term is similar to that provided under Accounting Standards.
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Key takeaways from the Webinar on TRAN-1 organised by Goods and Services Tax Network today-
1. Revision of TRAN-1 form may be allowed in future, the matter is being contemplated by GST Council
2. Transitional credit under existing laws will be carried forward through two tables, 5(a) for Central taxes & 5(c) for States taxes
3.No need to declare the details of C-Form , H Form & F- Form etc. in table 5(c), if no VAT ITC is being carried forward.
4. All the fields are not required to be filed in TRAN-1, only applicable fields are to be filed
5. GSTN will accept only those invoices which are of the dates between 01st Jul 16 and 30th Jun 17 in the table 7
6. The returns for the last 6 months under the existing laws must be filed to file TRAN-1 return & declaration for the same should be made
7. In table 6(a) if Capital goods were imported, "NA" should be furnished in the Supplier's registration number field.
8. CSV upload facility for all table 6 & 7 will be made available soon where bulk data is to be uploaded.
9. In table 7 in the "Unit" field can be filed up to only 3 Alphabets.
10. Eligible duty in Table 7B will be filed as "0" where duty paid Invoices are not available and credit is being claimed under Proviso to Section 140(3) @40% & @60%.
11. Where person was having centralised registration in the existing law, he can distribute the Transitional credit to the multiple GSTIN with the same PAN number. Each GSTIN will be entered as separate line item.
12. For the credit relating to goods held by agent, the data of credit should be furnished by both agent & principal simultaneously in Table 10.
13. If you have not entered your Service tax registration number or any other registration number while registering on the portal, the credit relatable to same can not be claimed. For claiming the credit first amendment to Non-Core fields should be made.
14. For goods & services received after appointed date on which tax was charged under Old regime credit can be claimed u/s 140(5) through table 7(b) of TRAN-1.
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# *GST Council* is meeting on Saturday (09 SEP 2017) to discuss Cess on luxury cars, return filing problems.
# *GST*: Over 3 lakh new companies have been registered with GSTN till 6th Sep this year.
# *MCA* has decided that the director or authorised signatory of a struck off company found to be unauthorisedly siphoning off money from its bank account may attract punishment up to 10 years and fine may also be imposed which would be three times the amount involved.
In a review meeting chaired by the Minister of State for Corporate Affairs, Mr. P. P. Chaudhary on Wednesday, it was also decided that the Directors of such shell companies which have not filed returns for three or more years, will be disqualified from being appointed in any other company as Director or from being reappointed as Director in any of the companies where they had been Directors, thereby compelling them to vacate office. It is expected that as a result of this exercise, at least two to three lakh of such disqualified Directors shall get debarred.
MCA has identified CAs, CSs, CWAs associated with such shell companies and involved in illegal activities, has written to the respective professional Institutes such as ICAI, ICSI and ICAoI for action against them.
Identification of more shell companies is also in progress.
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Deduction u/s 80IC cannot be denied merely on Ground of Non-Submission of Audit Report alongwith Return: ITAT Delhi [Read Order]
Read more at: http://www.taxscan.in/deduction-us-80ic-cannot-denied-merely-ground-non-submission-audit-report-alongwith-return-itat-delhi/10828/
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: Govt to Make Norms & Procedures for Corporate Governance more Stringent
Read more at: http://www.taxscan.in/govt-make-norms-procedures-corporate-governance-stringent/10839/
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: A Practicing Chartered Accountant cannot Enroll as an Advocate, says Gujarat HC [Read Order]
Read more at: http://www.taxscan.in/practicing-chartered-accountant-cannot-enroll-advocate-says-gujarat-hc/10861/
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*Labour Law Knowledge Capsule 3:*
Date: September 7, 2017
*Following are the list of labour law along with the general applicability on manufacturing units:*
1) Factories Act: Ten or more workers doing manufacturing activities with the aid of power, or twenty of more workers doing manufacturing activities without aid of power
2) Contract Labour Act: This act will be applicable to the factory where the employees are working on contractual basis and their payroll is processed by the Contractor. This act is applicable premise wise and that if at one premise of the Company, if there are more than 20 employees (differs from state to state) on contract basis, then the Management has to register their premise under the said Act
3) Payment of Wages Act: This act will be applicable only in case if the salary / wages of any employee / worker will be below Rs. 24000 per month (Rs. 24000 is amended w.e.f. August 29, 2017)
4) Minimum Wages Act: This act is applicable to all the organization. Basic theme of the Act is to make sure that all the employees and workers including contract workers are paid more than minimum wage rates as specified by the Appropriate Government.
5) Employee’s Provident Fund Act: It is applicable to all the factories which define “factory” under Factories Act and to all other establishment where 20 or more employees are employed.
6) Employees’ State Insurance Act: This act is applicable to all the factories where there are more than 10 employees, further to add, it is applicable only to the employees /workers whose salary is less than Rs. 21000 per month
7) Employees’ Compensation Act: This act is applicable to all the establishment, however first preference in terms of the Insurance compensation will be covered under ESIC Act, if the injured employees are covered under the ESIC Act, else the compensation can be claimed under Employees Compensation Act.
*Central / State Law:*
1) Factories Act: It is central law, but the registration and license under the said Act is premise based and the separate license will be required for the multiple factories located at multiple locations.
2) Contract Labour Act: It is again central law but the registration under the said Act will be premise based and separate registration will be required for all the premises.
3) Payment of Wages Act: It is Central law and the compliance can be done centralised from the Corporate Office.
4) Minimum Wages Act: It is Central law and the compliance can be done centralised from the Corporate Office.
5) PF Act: It is Central law and the compliance can be done centralised from the Corporate Office.
6) ESIC Act: It is Central law and the compliance can be done centralised from the Corporate Office.
7) Employees Compensation Act: It is Central law and the compliance can be done centralised from the Corporate Office.
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Rajasthan HC Admits Petition Seeking GST Exemption to Supply of Construction Services Govt Approved Housing Projects [Read Petition]
Read more at: http://www.taxscan.in/rajasthan-hc-admits-petition-seeking-gst-exemption-supply-construction-services-govt-approved-housing-projects/10855/
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: *FAQ’s on levy of GST on supply of services to the co-operative society*
1. Services provided by the Central Government, State Government, Union territory or local authority to a person other than business entity, is exempted from GST. So, *Property Tax, Water Tax, if collected by the RWA/Co-operative Society* on behalf of the MCGM from individual flat owners, then GST is not leviable.
2. Similarly, GST is not leviable on Non-Agricultural Tax, Electricity Charges etc, which are collected under other statutes from individual flat owners. *However, if these charges are collected by the Society for generation of electricity by Society’s generator* or to provide drinking water facility or any other service, then such charges collected by the society are liable to GST.
3. *Sinking fund, repairs & maintenance fund, car parking charges, Non- occupancy charges or simple interest for late payment*, attract GST, as these charges are collected by the RWA/Co-operative Society for supply of services meant for its members.
================>
Rajasthan Tax Consultants Association moves HC on Various Technical Issues under GST: HC issues Notice [Read Petition]
Read more at: http://www.taxscan.in/rajasthan-tax-consultants-association-moves-hc-various-technical-issues-gst-hc-issues-notice/10845/
[
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📺 *Updates*
➡1. No increase in ALV of property if interest-free loan was taken prior to tenancy
Deputy Commissioner of Income-tax v. Gentex Merchants (P.) Ltd.
➡2. Ind AS 24: Sitting fees paid to independent & non-executive director to be disclosed.
➡3. HC directs Dept. to accept probable income-tax liability deposited by co. till disposal of winding up petition.
Pure Drinks (New Delhi) Ltd.
v. Income-tax Department
================>
The names of 2,09,032 shell companies have been struck off from the register of companies under Section 248(5) of the Act and their bank operations have been stopped.
GST: No Reverse charge supplies for ISD. If it wants to take reverse charge supplies, it has to register as normal assessee (Instruction 4 in GSTR-6).
Tally have yesterday issued an advisory to its users on 4th September 2017 and suggested them to use GSTR Offline Utility 1.1 instead of GSTR Offline Utility 1.2. In their opinion use of GSTR Offline Utility 1.2 may potentially lead to an erroneous return which we may not be able to discover while filing.
MCA on its website has issued a public circular with respect to disqualification of directors under the provisions of the Section 164(2)(a) of the Companies Act, 2013.
Government has undertaken the exercise of rationalisation of the 38 Labour Acts by framing 4 labour codes viz Code on Wages, Code on Industrial Relations, Code on Social Security and Code on occupational safety, health and working conditions.
UIDAI has given banks one more month to open Aadhaar enrolment centres inastipulated 10 per cent of branches otherwise will impose Rs 20,000 fine per uncovered branch after September 30.
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: *THE CODE ON WAGES BILL, 2017*
🏹As part of labour law reforms, the Government has undertaken the exercise of rationalisation of the
38 Labour Acts by framing *4 labour codes* viz
1. Code on Wages,
2. Code on Industrial Relations,
3. Code on
Social Security and
4. Code on occupational safety, health and working conditions.
🌼1. The Code on Wages Bill 2017 has been introduced in Lok Sabha on 10.08.2017 and it
*subsumes 4 existing Laws*, viz.
1. the Minimum Wages Act, 1948;
2. the Payment of Wages Act,
1936;
3. the Payment of Bonus Act, 1965; and
4. the Equal Remuneration Act, 1976.
After the
enactment of the Code on Wages, all these four Acts will get repealed.
The Codification of the
Labour Laws will remove the multiplicity of definitions and authorities leading to ease of
compliance without compromising wage security and social security to the workers.
🌼2. At present, the provisions of the Minimum Wages Act and the Payment of Wages Act do not
cover substantial number of workers, as the applicability of both these Acts is restricted to
the Scheduled Employments / Establishments.
However, the new Code on Wages will ensure
minimum wages to one and all and timely payment of wages to all employees irrespective of
the sector of employment without any wage ceiling.
🌼3. A concept of statutory National Minimum Wage for different geographical areas has been
introduced. It will ensure that no State Government fixes the minimum wage below the
National Minimum Wages for that particular area as notified by the Central Government.
🌼4. The proposed payment of wages through cheque or digital/ electronic mode would not only
promote digitization but also extend wage and social security to the worker.
Provision of an
Appellate Authority has been made between the Claim Authority and the Judicial Forum
which will lead to speedy, cheaper and efficient redressal of grievances and settlement of
claims
🌼5. Penalties for different types of violations under this Code have been rationalized with the
amount of fines varying as per the gravity of violations and repeat of the offences.
Provision
of compounding of offences has been made for those which are not punishable by a penalty of
imprisonment.
🌼6. Recently, some news reports have been published regarding the fixation of minimum wage as
Rs. 18000/- per month by the Central Government. It is clarified that the Central Government
has not fixed or mentioned any amount as “national minimum wage” in the Code on Wages
Bill 2017. The apprehension that minimum wage of Rs. 18000/- per month has been fixed for
all employees is, thus incorrect, false and baseless. The minimum wages will vary from place
to place depending upon skill required, arduousness of the work assigned and geographical
location.
🌼7. Further, the Code on Wages Bill 2017, in the clause 9 (3), clearly states that the Central
Government, before fixing the national minimum wage, may obtain the advice of the Central
Advisory Board, having representatives from employers and employees. Therefore the Code
provide for a consultative mechanism before determining the national minimum wage.
🌼8. Some reports have also been appearing in the media regarding the revised methodology for calculation of minimum wages by enhancing the units from three to six. It was purely a demand raised by Trade Unions in the recent meeting of the Central Advisory Board on Minimum Wages. However it is clarified that such proposal is not part of the Code on Wages Bill.
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Co-Operative Banks engaged in Banking Business are Eligible for Income Tax Deduction: Allahabad HC [Read Order]
Read more at: http://www.taxscan.in/co-operative-banks-engaged-banking-business-eligible-income-tax-deduction-allahabad-hc/10824/
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: *👉🏻Shell companies' directors siphoning off funds may face up to 10-year jail.*
(Govt.said directors or authorised signatories of deregistered companies who try to siphon off money from the firms' bank accounts can face up to 10 years imprisonment. Govt blacklists 300000 directors of shell companies)
👇🏻 👇🏻 👇🏻
http://www.casansaar.com/news-Corporate-Law/Shell-companies-directors-siphoning-off-funds-may-face-up-to-10-year-jail/9210.html
*👉🏻GST collection tops Rs 94,000 crore for July from 44 lakh businesses.*
(As many as six lakh more businesses have filed returns and paid taxes in last one week, taking maiden revenue collections from GST to about Rs 94,700 crore.)
👇🏻 👇🏻 👇🏻
http://www.casansaar.com/news-GST/GST-collection-tops-Rs-94000-crore-for-July-from-44-lakh-businesses/9215.html
*👉🏻Practicing Chartered Accountant Cannot Enroll As A Lawyer - Gujrat HC.*
(The person as a member of profession has to discharge his obligation and, therefore, the profession as an Advocate or Lawyer which is a full time, one cannot be permitted if he is already working as a profession like Chartered Accountant.)
👇🏻 👇🏻 👇🏻
http://www.casansaar.com/news-Chartered-Accountant/Practicing-Chartered-Accountant-Cannot-Enroll-As-A-Lawyer---Gujrat-HC/9217.html
*👉🏻List Of Disqualified Directors U/S 164(2) (A) & Directors Associated With Struck Off Companies U/S 248*
(Govt has uploaded the list of List Of Disqualified Directors U/S 164(2) (A) & List Of Directors Associated With Struck Off Companies U/S 248)
👇🏻 👇🏻 👇🏻
http://www.casansaar.com/news-Companies-Act/List-Of-Directors-Associated-With-Struck-Off-Companies-US-248/9213.html
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: *GST Notes : Classification Chapter 9 Coffee, Tea, Mate and Spices.*
HSN 0901 to 0910
Coffee and Tea, Spices neither crushed nor ground like Vanilla Pepper Cinnamon Cloves etc...or crushed or ground are chargeable @5%.
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: Delhi High Cout directs department to pay Rs. 10,000 for delaying income-tax refund of assessee
IT : Where refund had been granted to assessee along with interest, however there was delay in granting refund, department was to pay costs to assessee
[2017] 85 taxmann.com 44 (Delhi)
HIGH COURT OF DELHI
Arjun Das
v.
Income Tax Officer
S. MURALIDHAR AND PRATHIBA M. SINGH, JJ.
W.P. (C) NO. 3927 OF 2017
AUGUST 22, 2017
Section 237, of the Income-tax Act, 1961 - Refund - General (Delay in granting) - Whether where refund had been granted to assessee along with interest, however there was delay in granting refund, department was to pay costs to assessee - Held, yes [Paras 1 & 2] [In favour of assessee]
Tarun Aswani, Advocate for the Petitioner. Rahul Kaushik, Sr. Standing Counsel for the Respondent.
ORDER
1. It is stated that the refund inclusive of interest has now been granted to the Petitioner on 28th June 2017 by way of cheque.
2. Considering the delay in granting the refund, the Department will pay costs of Rs.10,000/- to the Petitioner within four weeks.
3. The petition is disposed of in the above terms.
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#Economy:Equity mutual funds received a staggering Rs 20,000 crore in net investor flows in August, while the overall assets under management (AUM) topped the Rs 20-lakh crore mark. These are highest-ever monthly equity flows and AUM recorded by the domestic asset management industry. The record flows cemented the belief that the industry is going through a structural uptrend due to improvement in financial savings and dimming appeal of traditional asset classes such as gold and real estate.
The Indian investor has been underweight equities. The falling interest rates on bank deposits have been helping the surge in flows to mutual funds. Recent cuts by banks have been a big trigger.
#The Govt said directors or authorised signatories of deregistered companies who try to siphon off money from the firms' bank accounts can face up to 10 years imprisonment. Besides, the directors of shell companies that have not filed their returns for three or more years would be disqualified from holding such position in any other firm.The Govt has also identified chartered accountants, company secretaries and cost accountants associated with shell firms in certain cases.Continuing its crackdown on the black money menace, the Govt said identification of more shell companies is in progress and efforts are on to find the actual beneficiaries and persons behind such entities.
#India became the world's second fastest growing domestic aviation market in July, according to global airlines' body IATA. China tops the domestic chart for just the 2nd time in 28 months, but the upward trend in India has picked up, the IATA said, while adding that passenger demand remains on course to grow solidly this year as a whole. In July, India registered a growth of 12.5% whereas Chinese market grew 15% during the same period. It is measured in RPK (Revenue Passenger Kilometres) -- an indicator of demand.
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📺 *Updates*
➡1. No tax on Income from shipping remitted outside Singapore if it was taxable therein on accrual basis.
Far Shipping (Singapore) Pte. Ltd. v. Income-tax Officer, International Taxation, Nellore*
➡2. No disallowance could be made merely because amount of liability was yet to be ascertained: HC
Commissioner of Income-tax, Nagpur v. Ballarpur Industries Ltd.
➡3. CBEC released FAQs on supply of services to Co-operative society under GST
