CMP 04 application for withdrawal from composition levy has been activated on the GST portal. Levy of Late fees for august also waived off like July 2017.
Late Fees for GSTR 3B for the month of August is waived. Those who have filed the GSTR 3B for the August month with late fees, have to wait for credit in cash ledger. Those who have filed GSTR 3B for the month of July with late fees, their late fees' credit has been given in Cash Ledger.
GST: Permission to display revised MRP extended up to 31.12.2017
Defective return notice asking to file B/S and P/L in Presumptive Income Cases.
Due Dates - October 2017:
*07.10.17* - TDS/TCS Challan
*07.10.17* - ADT-1 with ROC if auditor is appointed or reappointed (other than ratification) in AGM held on 30.09.2017
*10.10.17* - GSTR-1 for the month of July.
*15.10.17* - TCS Return
*15.10.17* - ESI & PF
*18.10.17* - Quarterly Return for Composition Dealers under GST.
*20.10.17* - GSTR - 3B for the month September.
*29.10.17* - AOC 4 with ROC if AGM date is 30.09.2017
*31.10.17* - TDS Return
*31.10.17* - Income Tax Audit Cases & Returns of specified persons
*31.10.17* - GSTR-2 for the month of July.
*31.10.17* - TRAN-1
31.10.2017 - migration to GST Regime
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📺 *Updates*
➡1. Now FPIs can participate in Commodity Derivatives in IFSCs subject to riders: SEBI
https://corporatelaws.taxmann.com/topstories/222330000000013037/now-fpis-can-participate-in-commodity-derivatives-in-ifscs-subject-to-riders-sebi.pdf
➡2. SEBI tightens norms to check unauthorized trading by stock brokers.https://corporatelaws.taxmann.com/topstories/222330000000013024/sebi-tightens-norms-to-check-unauthorized-trading-by-stock-brokers.pdf
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SC denies ITC Claim since Byproduct is Marketable and Fetches Good Price [Read Judgment]
Read more at: http://www.taxscan.in/sc-denies-itc-claim-since-byproduct-marketable-fetches-good-price/11647/
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UAE Excise Tax: Violation of Tax Laws would Attract Penalties & Fine
Read more at: http://www.taxscan.in/uae-excise-tax-violation-tax-laws-attract-penalties-fine/11658/
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Quick Reference to" Answer to the Common Query for Special Resolution":-
Query:-
Abc ltd is a listed company. It has 3000 members. But 2500 members do not attend the meeting. Company sends notice to all the members. 320 members are abstrain from voting. Then how many members should have vote in favour of resolution, if it is to be passed as a Special Resolution?? Whether answer would be different it it's a unlisted public company??
Answer:-
1. 75% Votes should be cast in favor of resolution by members who are present and entitled to vote in person. ( Assuming it is ballot method ).
2. In the above case, Only 500 members have attended the meeting. And 320 are restrain from voting. And only 180 people have votes for the resolution ( 500 -320 =180 ).
3. Hence, 75% of 180 i.e. 135 members should vote in favour of resolution if it's a Special Resolution.
4. Answer would be same even if it's a unlisted public company.
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Sale Agreement between Son and Father is Valid: ITAT Hyderabad Quashes Assessment [Read Order]
Read more at: http://www.taxscan.in/sale-agreement-son-father-valid-itat-hyderabad-quashes-assessment/11652/
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Nagpur: The Confederation of All India Traders (CAIT) today drawn attention of the Union Finance Minister Shri Arun Jaitley towards anomalies, disparities and contradictions of GST and mal-functioning of GSTN portal, in order to provide ease of complying GST provisions for the traders. ” The non smooth working of the GSTN portal on the one side and confusions pertaining to procedures have fractured GST to an extent and if remedial measures are not taken, it is feared that people will find them distracted from GST”-said the CAIT.
CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal in Traders Conference held today at Jaipur hoped that GST Council will have serious deliberations on the tax and procedural issues raised by CAIT and other Organisations. Irrationality of 28% tax slab under GST will be looked in to and items not falling under luxurious and demerit category but have been placed in 28% tax slab shall be brought back to lower tax segment. They further said that 28% tax slab is considered as one third cost of the product by the Consumers and therefore resisting them to pay 28% tax. This anomaly needs to be rectified in order to make GST affordable at the level of consumers. About 1200 items have been classified so far under different tax slabs and out of which about 19% items have been placed under 28% tax slab which in itself puts a question mark on the rationality of 28% tax slab which was specifically designed for levy tax on luxurious and demerit goods. Likewsie food grains are tax exempted if not branded and if branded then levy of 5% tax has created a major distortion and GST Council should take remedial measures. CAIT Rajsthan Chapter President Kishore Tak, National Convenor of CAIT Woman wing Seema Sethi and More than 200 Trade leaders from 33 District, Rajsthan attended the meeting. Rajsthan Chamber President K.L. Jain, CAIT Research Wing President Rajkumar Bindal and CAIT Chandigarh Chapter President Harish Garg also attend the meeting.
Both Bhartia and Khandelwal said that items like spare parts of two wheeler, three wheeler and four wheeler, housing necessity items like Cement, Building Hardware, Paints, Marble, Furniture, Sanitary ware, Electrical Fittings, Beauty & Cosmetic Products, Polishes & Creams for footwear, scientific instruments, are some of the prominent items which falls under this category and can not be termed either luxurious or demerit goods. These are general consumables in nature and are being used by common men.
CAIT demands consideration of GST council to reduce the GST tax rate of 28% to a lower slab for malt/cereal-based health food drinks like Horlicks, Amul Pro, Boost, Bournvita, Complan etc. especially for children upto 18 years of age and women. These products are food items of mass consumption and critical to meet nutritional requirements of children and women and consumed by over 30 crore people across economic and social strata and sold by over 40 lakh retailers across India. Since reduction of such rate will be passed on to the consumer this will greatly increase affordability of nutrition products like malt/cereal based health food drinks among school-aged children up to age 18 under the GST and mothers who need them. Likewise Icecream manufacturers have been denied Composition Scheme in GST though under VAT regime, they were enjoying this scheme. They should also be allowed to take advantage of Composition Scheme.
On the other hand recycle products/scrap collection items like empty used glass bottles have been placed under 12%, Washing Soap, Laundry Soap and Toilet Soap though different from one another have been clubbed together and placed under 18% and other such items may be placed under lower tax slab.
The CAIT has urged that Sanitary Napkins essential for Women Hygiene must be removed from 12% tax slab and placed under exempted category like contraceptives. No logic can stand with this item since even today in large part of the Country is deprived of use of Sanitary Napkins and efforts must be made to make these available free of cost under social responsibility to women in villages and remote areas instead of levying 12% tax on them.
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Forwarded as received -
GST/VAT/CT standard rates, return filing periodicity & due dates in some countries across the world :-
1. BRITAIN :
Std rate : 20%
Filing : Quarterly
Due date : 38 days
2. FRANCE :
Std rate : 20%
Filing : Quarterly if turnover of goods < € 777000 (INR 5.4 cr) & services < € 234000 (INR 1.6 cr)
Monthly if > above amount
Due date : 24 days
3. GERMANY :
Std rate : 19%
Filing : Yearly if net vat payable for year < € 1000 (INR 70000)
Quarterly above € 1000 but < € 7500
Monthly above € 7500
Due date : 10 days but permanent application for extra 30 days & hence it is 40 days.
4. SPAIN :
Std rate : 21%
Filing : Quarterly if turnover < € 6 million (INR 42 cr)
Monthly above this turnover
Due date : 50 days
5. PORTUGAL :
Std rate : 23%
Filing : Quarterly if turnover < € 650000 (INR 4.5 cr)
Monthly above this turnover
Due date : 40 days
6. ITALY :
Std rate : 22%
Filing : Quarterly
Due date : 2 months
7. IRELAND :
Std rate : 23%
Filing : 6 monthly if net vat liability < € 3000 (INR 2.1 lakhs)
4 monthly for < € 14400 (INR 10 lakhs)
2 monthly if > € 14400
Due date : 23 days.
8. BELGIUM :
Std rate : 21%
Filing : Quarterly if turnover > € 2.5 million (INR 17.5 cr)
Monthly if turnover > above
Due date : 20 days.
9. NORWAY :
Std rate : 25%
Filing : 2 monthly
Due date : 40 days.
10. SWEDEN :
Std rate : 25%
Filing : 6 monthly if turnover < SEK 1 million (INR 70 lakhs)
Quarterly upto SEK 40 million (INR 28 cr)
Monthly above SEK 40 million
Due date : 40 days.
11. DENMARK :
Std rate : 25%
Filing : 6 monthly if turnover < DKK 5 million (INR 4.5 cr)
Quarterly upto DKK 50 million (INR 45 cr)
Monthly above DKK 50 million
Due date : 40 days.
12. NETHERLANDS :
Std rate : 21%
Filing : Yearly if annual net vat liability < € 1883 (INR 1.3 lakhs)
Quarterly if net vat liability upto € 15000 per quarter (INR 10.5 lakhs)
Monthly if above € 15000
Due date : 2 months.
13. SWITZERLAND :
Std rate : 8%
Filing : Quarterly
Due date : 60 days.
14. RUSSIA :
Std rate : 18%
Filing : Quarterly
Due date : 20 days.
15. CANADA :
Std rate : 15%
Filing : Yearly if turnover < CAD 1.5 million (INR 6.75 cr)
Quarterly upto CAD 6 million (INR 27 cr)
Monthly above CAD 6 million.
Due date : 30 days for monthly & quarterly
3 months for yearly.
16. AUSTRALIA :
Std rate 10%
Filing : Quarterly
Due date : 28 days.
17. NEW ZEALAND :
Std rate : 15%
Filing : 6 monthly if turnover < NZD 500000 (INR 2.25 cr)
2 monthly upto NZD 24 million (INR 108 cr)
Monthly above NZD 24 million
Due date : 28 days.
18. SOUTH AFRICA :
Std rate : 14%
Filing : 4 monthly if turnover < ZAR 1.5 million (INR 60 lakhs)
2 monthly upto ZAR 30 million (INR 12 cr)
Monthly above ZAR 30 million.
Due date : 1 month.
19. JAPAN :
Std rate : 8%
Filing : Yearly
Due date : 2 months.
20. SOUTH KOREA :
Std rate : 10%
Filing : Quarterly
Due date : 25 days.
21. SINGAPORE :
Std rate : 7%
Filing : Quarterly
Due date : 1 month.
22. MALAYSIA :
Std rate : 6%
Filing : Quarterly if turnover < MYR 5 million (INR 7.5 cr)
Monthly above MYR 5 million.
Due date : 30 days.
23. LEBANON :
Std rate : 10%
Filing : Quarterly
Due date : 20 days.
24. IRAN :
Std rate : 9%
Filing : Quarterly
Due date : 45 days.
25. SRI LANKA :
Std rate : 12%
Filing : Quarterly.
Monthly for exporters.
Due date : 20 days.
26. GCC Countries :
(Oman, Saudi Arabia, Qatar, Bahrain, Kuwait & UAE)
To be implemented from 1-Jan-2018
Likely std rate : 5%
Expected periodicity : Quarterly
Expected due date : 30 days.
27. UNITED STATES OF AMERICA :
Surprisingly no national gst or vat. All at state level.
Std rates range from 2% to 8% from state to state.
Return filing may be quarterly or monthly depending on the state.
Due date also differs.
NOTE : For all above countries -
(1) Imports are subject to tax on RCM.
(2) Exports are zero rated.
(3) There is NO tax on RCM basis on any purchase of goods or services from unregistered persons.
(4) Dealer is allowed relevant input credit even if supplier does not pay vat to govt. Govt recovers tax from supplier only.
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SC denies ITC Claim since Byproduct is Marketable and Fetches Good Price [Read Judgment]
Read more at: http://www.taxscan.in/sc-denies-itc-claim-since-byproduct-marketable-fetches-good-price/11647/
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Notice is a Mandatory Requirement for Passing a Rectification Order: ITAT Delhi [Read Order]
Read more at: http://www.taxscan.in/notice-mandatory-requirement-passing-rectification-order-itat-delhi/11634/
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Bad Debts Written Off is deductible if the same has been taken into account in computing the income of the assessee in previous years: Kerala HC [Read Judgment]
Read more at: http://www.taxscan.in/bad-debts-written-off-deductible-taken-account-computing-income-assessee-previous-years-kerala-hc/11628/
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‘No hope of recovery’: Varanasi sari weavers are abandoning their looms as GST rips business by 50%
Many traditional weavers in Narendra Modi’s constituency have taken to driving rickshaws as traders and thread suppliers wait for conditions to improve.
‘No hope of recovery’: Varanasi sari weavers are abandoning their looms as GST rips business by 50%
“I am facing a bit of trouble buying food,” admitted Altafur Rehman. The only earning member of a family of four, Rehman’s income from weaving Banarasi silk saris has fallen to less than half of the Rs 800-Rs 1,000 a week he was making in September last year.
Now he makes Rs 400 in a good one. “It will drop to Rs 300 or less,” he predicted darkly. At least he is still holding out.
Dozens of his neighbours in Varanasi’s Jaitpura-Chhora colony of weavers have abandoned their craft, opting to drive cycle or autorickshaws, said another weaver, Sohrab Ali. Till September 2016, HAR Fabrics, run by Ali’s uncle Abdul Hasan, employed over 40 weavers. He now has 20-25.
The sari business in a city that has a textile tradition dating back to at least the 16th century has been struck a body-blow by two government policies in under a year – demonetisation in November and the introduction in July of the Goods and Services Tax.
“Business is down to 50% of what it was,” complained Rajan Behal, the general secretary of the Banarasi Vastra Udyog Sangh, a trade association.
Employment generator
For customers who can afford them, the intricately embroidered Banarsi saris are a valued part of the North Indian bride’s trosseau. Saris produced in this region can sell over Rs 2 lakh. The cheapest, starting from Rs 300, are made of synthetic fibre on powerlooms. The most expensive are made of silk, and incorporate silver or gold thread. A sari that sells for Rs 5,000 sari can take a handloom weaver three-four days to make.
According to Behal, the Banarsi sari trade is valued at about Rs 5,000 crore per year. According to another veteran in the business, it provides employment to over five lakh people in Varanasi district alone.
The trade received a jolt in November, when Prime Minister Narendra Modi decided to demonetise Rs 500 and Rs 1,000 currency notes overnight. Since most transactions were in cash, weaving in Varanasi came to a near-halt. The introduction of the Goods and Services Tax on July 1, subsuming several other levies previously charged by states and Centre, has made the chances of recovery look very bleak to some in the trade.
GST regulations require enterprises to file three returns per month along with all documents on sales, purchases and tax levied and paid – a massive challenge for traditional small businesses that procure material, raw and finished, on credit and which have thus far bothered little with formal invoices and receipts.
“Ninety per cent of the business is in the unorganised sector employing large numbers of weavers who are uneducated and unable to handle the technicalities of GST,” said Behal of the Banarasi Vastra Udyog Sangh.
Even wholesalers, who buy Banarsi saris from weavers and distribute them to shops across the country, have been left floundering. Till July, they did not charge any tax at all from customers, choosing to absorb the cost themselves. Their decision to pass on the levy to customers has led to increase in prices of saris by as much as 20%. Said Behal, “Till they exempt us from GST, there is no hope of recovery.”
In June, when the government decided to levy GST on textiles, Varanasi’s weavers and traders went on an eight-day strike to protest the move. When no relief seemed forthcoming, they struck work again from July 9 to July 14. They are especially irked that Prime Minister Narendra Modi, who represents the Varanasi constituency in Parliament, has refused to meet members of the association.
Credit business
Most of the weavers of Chhora are simply followed the tradition of their forefathers. Most wholesalers in the labyrinthine lanes of Varanasi’s Chowk area are fourth or fifth-generation traders in the business. Export and wholesale firm, Hartirath Ram Daya Ram, is 110 years old and was established by the great-grandfather of Sanjay Wahi, who now runs it. Behal’s wholesale business was established by his great-grandfather. Thread-supplier, Ramjilal Chandak inherited his shop, Kanhaiyalal Jethmal, from his grandfather.
Rajan Behal is general secretary of the Banarasi Vastra Udyog Sangh, the only association for traders in banarasi saris.
Rajan Behal is general secretary of the Banarasi Vastra Udyog Sangh, the only association for traders in banarasi saris.
Over generations, the weavers of Jaitpur-Chhora, traders from the Chowk and those involved in the dozens of allied activities such as warping (to make thread) and dyeing across Varanasi district have established a way of doing business on udhaari, or credit. This has worked well for small, family-run establishments without large savings.
In this method of working, weavers take raw material such as thread from suppliers but pay them once they have recieved money from the wholesaler. Retailers stock finished saris given to them by wholesalers but pay them months later, after the goods have been sold. Everyone gets paid eventually but at a later date that is not always fixed.
The GST system, which requires invoices to be generated instantly for every transaction, has struck at this system. Everyone from the vulnerable weavers to the relatively prosperous traders has been affected.
Crumbling chain
In an immediate fallout, suppliers of raw material such as fibres and zari – gold or silver thread – stopped giving weavers material on credit and started insisting on immediate payment. “How could we give?” asked thread-supplier Ramjilal Chandak. “We have to file three returns in a month and produce all the bills.”
But weavers simply did not have the surplus income to make instant payments on all the material they need.
Thread supplier Ramjilal Chandak has a shop in the Chowk area of Varanasi.
Thread supplier Ramjilal Chandak has a shop in the Chowk area of Varanasi.
In addition, weavers were confounded by the varying rates of GST on different materials. Chandak listed out the most common ones – 5% on cotton and silk, 12% on zari or gold thread and 18% on polyester.
The high tax on polyester, used very frequently, dismayed weavers. “It increased the cost of raw material for [weavers] considerably,” said Chandak.
The sizes of purchases of thread shrunk and the cost of production increased. “Business had dropped by 60%-70% last month,” said Chandak. “It is picking up a bit now that people are getting used to it. But most weavers think GST is a hassle.”
Silent looms
For weeks after the strike, all the 500 or so looms in Chhora had fallen silent. They have staggered back to action with some units, like Hasan’s even registering for GST. But, as he said: “Weavers have work only for a few days in a week. Our business is down by 60%.”
Though Hasan’s unit registered for GST in August, it has not yet filed a single return. “We could not get the paperwork together,” explained Hasan. “We cannot figure out when to generate bills, how much GST will be applicable and whom to charge. We waste a lot of time running to banks and have spent entire mornings photocopying papers.” Many dealers he works with are yet to register and reluctant to generate invoices.
There are other problems. Hasan’s brother, Noor-ul-Ain is trying to figure out how much GST to charge for a sari in which they have used both polyester and cotton – a popular combination for cheaper powerloom saris. They are concerned that the 18% tax on polyester and the taxes levied at every stage of production will make even these expensive. Consequently, powerloom operators have seen their income drop. Jamil Ahmed made Rs 1,500 in a week before GST. Now it is Rs 700.
Noor-ul-Ain of HAR Fabrics in Jaitpura-Chhora, a colony of weavers in Varanasi (
Noor-ul-Ain of HAR Fabrics in Jaitpura-Chhora, a colony of weavers in Varanasi
Admitting defeat, Hasan appointed a chartered accountant in September. He will charge Rs 5,000-Rs 6,000 to fill each form, a further burden on the strained resources of HAR Fabrics. But at least, he is trying. “Ninety five per cent weavers are not giving anyone bills and have not registered for GST,” he said.
Jamil Ahmed at his powerloom in Chhora. His income has halved since last year.
Jamil Ahmed at his powerloom in Chhora. His income has halved since last year. (
Chowk traders
It is not just the uneducated weavers who find GST a challenge. On September 27, Behal deposited Rs 15,092 in his enterprise’s GST account at the bank and was given a receipt. The next day, he received a text message from the bank saying the payment had been reversed. Behal was livid. “Now the bank will be closed for four days [for Dussehra and the weekend] but we will be fined for the delay,” he complained.
Being the only organised part of an unorganised sector has had interesting results for traders. Wholesaler and exporter Sanjay Wahi pays GST on behalf of the unregistered weavers he buys from and intends to claim “input credit”. He explained the system thus: “It is adjustment. Instead of the weaver, I submit the GST charged by him on his behalf and I pay again the GST I charged while selling the same sari. The first becomes the ‘input credit’ and ultimately I will have to pay only the difference between the two amounts as tax.” He has not seen the input credit yet but is certain he will.
Sanjay Wahi, wholesaler and exporter of Banarasi saris, has been paying GST on behalf of weavers.
Sanjay Wahi, wholesaler and exporter of Banarasi saris, has been paying GST on behalf of weavers.
Wahi thinks that in the long run, GST will make the sector more efficient by forcing all sections involved in the production of Banarasi saris to join the organised sector. But it has led to immediate problems. Due to the disruption to production caused by GST, the traders have not been able to take advantage of fashion trends turning favourable to woven saris and away from embroidered ones, Sanjay Wahi’s son, Shrey, noted.
The input credit system means “blockage of capital of 5%” for him. Wahi’s business can take that hit. Behal is not so sure. “Most retailers will not have the capital to pay GST for their suppliers,” he said. The amount of capital required varies with the type of saris as well.
“The Central Government usually allocates about Rs 6,000 crores of susidies for the handloom sector every year,” said Behal, “ The money does not reach weavers anyway. It should withdraw this fund and exempt us from GST. Without that, the art of the Banarasi sari will die
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Not SRO, Cost of Construction of Flats by Builder must be treated as Sale Consideration of the Land Owner for Computing Capital Gain: ITAT
Read more at: http://www.taxscan.in/not-sro-cost-construction-flats-builder-must-treated-sale-consideration-land-owner-computing-capital-gain-itat/11624/
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