GST Gyan - E-way bill is being introduced for intra-State movement of goods in the state of Arunchal Pradesh, Madhya Pradesh, Sikkam and Union Territory of Puduchery from 25th April, 2018 in addition to Andra Pradesh, Gujrat, Karntaka, Kerala, Telangana, Uttar Pradesh, Bihar, Jharkhand, Haryana, Himachal Pradesh, Tripura and Uttarakhand who have already implemented the e-way bill system for intra-State movement of goods.
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I-Tpt warning to salaried taxpayers:*
8 common inaccuracies every taxpayer should take care of NOW:
Are you a salaried person, but one of those who usually conceal a part of their income from the Income Tax Department in a bid to save tax?
Then you have to be more careful. I-T Department has just warned the salaried class against using illegal means while filing their income tax returns (ITRs).
Such violators will not only be prosecuted, but their employers will also be now asked to take action against them, it has said.
According to a PTI report, the Central Processing Centre (CPC) of the I-T Dept in Bengaluru, which processes ITRs, has advised the salaried class not to fall prey to unscrupulous *intermediaries*, who help them in preparing false claims in a bid to get income tax benefits.
1. Non-reporting of interest income from savings / fixed deposits account:
2. Fake bills submitted for HRA claims
3. Claiming false 80C deductions.
4. Not considering income derived from all employers
5. Claiming false deduction under chapter VI-A.
6. Making false claims under Section 10
7. Inflating claim of home loan interest.
8. Making false claims on capital gains.
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*GST Audit – Some Basics*
1. Introduction
1.1 The concept of audit by a Chartered Accountant in the area of Indirect Taxes was confined to State Value Added Tax and Central Sales Tax laws of certain States. In Central Excise and Service tax only in case of suspicion of undervaluation or excessive credit special audits were prescribed (not much used) which continue in GST. Therefore, Chartered Accountants engaged in rendering professional services in the areas of State taxes would be familiar with those provisions. The GST law has subsumed several Indirect Tax laws – among others, it subsumed Central Excise, Service Tax, Luxury Tax, Entertainment Tax, VAT/CST, Entry tax laws etc.; certain levies under the Customs laws have also been subsumed into the GST laws.
1.2 It would be relevant to note that the skill sets acquired in the understanding of the statutes that have been subsumed into the GST laws would help in better understanding of the GST laws since several provisions of the Central and State enactments have been replicated (fully or partially) in the GST laws – say, for instance, the provisions of Place of Supply of Services, Time of Supply of Services, Valuation of Supply Rules, etc. That being said, one needs to exercise caution in reading and understanding the subtle departures or changes in the statute in comparison with the erstwhile legislations, in which case, one has to enhance the understanding of the fully taken forward provisions. He also needs to unlearn the old laws and learn the GST laws afresh for a complete understanding of the taxing statute.
1.3 In terms of Section 2(13) of the CGST Act, 2017, “audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.
1.4 The following three types of audits are envisaged under the GST laws:
The *first* type of audit is to be done by a chartered accountant or a cost accountant;
*Second* type of audit is to be done by the commissioner or any officer authorised by him in terms of Section 65 and 66 of the CGST Act, 2017 read with Section 20 of the IGST Act, 2017 and Section 2 of UTGST Act, 2017.
The *third* type of audit is called the Special Audit and is to be conducted under the mandate of Section 66 of CGST Act, 2017 read with Rule 102 of
CGST Rules, 2017.
An audit in terms of Section 65 / 66 of the CGST Act, 2017 is not a part of this write-up.
1.5 While the GST regime emphasizes self-assessment processes, the complexities involved in the new statute make one wary. At this juncture, it is clear to tax professionals that the GST law is not presently simple enough for an assessee to compute his total and taxable turnovers and duly report the same, under the new statute.
1.6 The new statute lays substantive emphasis on e-governance. It is presumed that over a period of time, the complexities of the GSTN and the GST law would be subject to several changes / amendments to enhance ease of compliance and transparency. Several errors occurring in the GSTN while attempting to furnish the details are brought to the attention of the registered persons almost immediately, owing to the use of extensive technology. Examples:
- Transitional credit claims being processed with error in case of mismatch in GSTIN;
- Discrepancy with the amount of credit / cash being utilized to off-set the liability;
- Duplication in invoices.
1.7 Nevertheless, errors that cannot be traced by the system are bound to have been committed by registered persons while filing the returns. It is also a fact, that GST law is in the process of being properly interpreted and understood by each of us. The difficulty also arises on account of the fact that there are no precedents on each such issue. One has to overcome these intricate issues by properly understanding the nuances of the law which is still evolving.
1.8 The Revenue, with the aid of information technology, is expected to identify patterns / spike in liability, credits, reconciliations through online tools / resolutions and intelligent reporting.
1.9 The level of tax compliances prevailing and the complex nature of tax laws in our country makes it necessary for audit of records under various laws. Therefore, in order to ensure tax compliance by the assessee, the GST law provides for audit by the tax department and by professionals in certain cases.
1.10 Ordinarily, the smaller assessees do not prefer to get their books of account and records audited for indirect tax compliances, when there is no mandatory requirement to do so. However, larger entities who wish to avoid any disputes opt for caution checks. Audit is perceived as a cost rather than as a tool in identifying errors or to optimize the tax incidence though it can actually be a value adder, directly and indirectly.
1.11 In the past, certain tax-compliant assessees have been known to voluntarily engage experts to conduct audits under the Excise or Service tax laws. The exercise was undertaken to evaluate compliance, as also to ensure that all benefits lawfully accruing to the assessees are availed by them, in good time. The financial impact on account of indirect taxes is always substantial, and therefore, those assessees who engage tax professionals for a review from the indirect tax perspective would have witnessed a great deal of value addition.
*Audit Exercise-Advantages*
1.12 To an assessee –Normally, the tax department conducts an audit or assessment after the close of a financial year. It is customary to expect that the departmental audit / assessment is conducted after the close of the financial year except in cases where investigations, inspections or special audits are taken up. Naturally, any levy of additional taxes either due to non-compliance or incorrect comprehension of the complex tax laws would result in taxes plus consequential interest and penalty. GST being a tax on supplies, would tend to wipe out the top line in such cases.
1.13 Given the time lag between the date of committing an error and the date of ascertaining / rectifying such error, the consequence in such situations can be quite alarming in as much as the very liquidity of an entity can be under jeopardy. This would be the scenario, even where there is no mala fide intent on the part of the assessee to evade or avoid taxes that are legally due to the Government. Consequences that can arise in respect of issues that arise on account of classification or interpretation or judicial pronouncements can be disastrous.
1.14 It is a basic fact, that no assessee would be in a position to collect such additional tax levies from customers long after the transaction stands closed. On the other hand, there may also be cases where eligible credit may not have been availed, and it cannot be claimed at a later date since it is either time barred or claims have not been preferred through the returns.
1.15 Therefore, where a review is undertaken periodically, the discrepancies will be noticed at the time of omission / commission and corrective measures can be taken in a timely manner. Thus, it would lead to maximization of credit availment and minimization of tax / other outgoes owing to proper planning and timely compliances.
1.16 To the department / Government – The tax department / Government would also stand to benefit from a periodic review by way of receipt of information that are duly classified, correct determination of total and taxable turnovers, review of rates of taxes, proper application of relevant notifications, circulars, clarifications, Government orders and adherence to the tax compliances. The audit report would also take into cognizance the relevant judicial precedents that are applicable to the registered person. Unlawful claims for benefits / unethical tax management practices adopted by the assessees would be filtered out, since tax professionals would intimate and persuade the assessees of the consequences of such practices, and also bring out the discrepancies in their reports. When audits are performed by tax experts, the time spent by the tax authorities on the scrutiny would be minimized, thereby allowing them to utilize the available time for more meaningful and productive purposes. Voluntary compliances by the assessee would encourage the department / Government to simplify the law and procedures, and develop a mechanism for ease of doing business. It would be a win-win situation.
1.17 To the professionals –Tax Professionals are compelled to conclude the audits (mandated by statutes) in a time bound manner within a fixed period of time.
However, where auditees engage them to carry out periodic reviews voluntarily, the said tax professionals will be in a position to deploy experts and spend adequate time and efforts, in order to go through the records and documents in detail. This will help them to better understand the operations of the auditee, resulting in value addition. Instead of carrying out the audit at the end of the year, for all the assessees, a periodic audit will help the auditee in understanding the short-comings that can be duly adhered to within time and would, in a way, avoid any further consequences
Source : ICAI
Recasted
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Delhi VAT Dept clarifies Issues regarding CST Assessments* [Read Circular]
Read more at: http://www.taxscan.in/delhi-vat-dept-cst-assessments/21556/
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No Penalty If Cash above Rs 20000 received from Brother and Father due to Business Exigencies: Income Tax Tribunal* [Read Order]
Read more at: http://www.taxscan.in/penalty-cash-business-exigencies-income-tax-tribunal/21550/
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GSTN enables Facility to Check Details of Tax Officials*
Read more at: http://www.taxscan.in/gstn-facility-details-tax-officials/21560/
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IBBI prescribes Norms for Disciplinary proceedings against Insolvency Professionals* [Read Circular]
Read more at: http://www.taxscan.in/ibbi-norms-disciplinary-insolvency-professionals/21570/
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Income Tax Dept Announces Scheme to Reward upto 5 Crore to Informants*
Read more at: http://www.taxscan.in/income-tax-dept-scheme-reward-informants/21622/
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GST Anti-profiteering: NAA’s First Order favors Car Dealers* [Read Order]
Read more at: http://www.taxscan.in/gst-anti-profiteering-first-order-car-dealers/21589/
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*Company can claim CENVAT Credit on Insurance Premium for Family Members of Employees till March 2011*: CESTAT [Read Order]
Read more at: http://www.taxscan.in/cenvat-credit-insurance-premium-employees-cestat/21578/
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Long Term Capital Gain on Transfer of Equity Shares: Govt Issues Draft Notification* [Read Notification]
Read more at: http://www.taxscan.in/long-term-capital-gain-equity-shares-draft-notification/21600/
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GST Audit program may be prepared considering the various aspects to be covered in the report, i.e., checks to be performed to verify the following:
(i) Whether the books of account and related records maintained are sufficient for verification of the correctness, completeness and accuracy of the returns.
(ii)Whether the annual return filed reflects the correct figures and includes all the transactions effected during the year that require disclosure.
(iii)Whether the value of outward supplies, and inward supplies declared in the annual return includes all the outward supplies and inward supplies, respectively, effected during the year.
(iv)Whether the inclusions and exclusions to / from the value of supply are in accordance with the provisions of the law.
(v)Whether the exemptions claimed in the annual return are in conformity with the provisions of the law;
(vi)Whether the amount of ITC determined as eligible and ineligible have been determined in accordance with the provisions of the law.
(vii) Whether the classification of outward supplies, rate and amount of tax thereon, and nature of tax, is correct.
(viii) Whether the other information given in the return is correct and complete.
Provisional empanelment status of firm for the year 2018 - 19 is available on the website www.cag.gov.in from 24.04.2018 to 03.05.2018. Representations, if any, for clerical mistakes in the online data may be sent by email only at sao2ca5@cag.gov.in by 03.05.2018.
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# *IT*: 30 APR 2018 is the LAST Date for deposit of TDS u/s 194IB on payment of rent exceeding ₹ 50,000 a month from Jun-Mar, 2018 by the individual / HUF not liable for Tax audit.
# *IBC*: The Govt. is considering an ordinance to make changes to the IBC that will provide relief to MSMEs, homebuyers, relax disqualifications u/s 29A and clarify the definition of a related party.
# *FEOO*: With the assent of the President of India, the Fugitive Economic Offenders Ordinance, 2018 gets promulgated, it lays down the measures to empower Indian authorities to attach and confiscate the proceeds of crime associated with or property of economic offenders.
# *GST*: E-Way Bill itself was downloaded on 07.01.2018 i.e. four days after the seizure has been made - petition dismissed – Bharat Iron Store & Anr Vs. UoI (2018 (4) TMI 1141 - Allahabad HC).
# *GST*: Detention of goods - first respondent directed to complete the adjudication within one month from the date of receipt of a copy of this judgment – Shri Dutt India Pvt. Ltd. Vs. ASTO & Ors. (2018 (4) TMI 1142 - Kerala HC).
# *IT*: Scope of Section 281 - It is not open to the TRO to declare the said transfer / alienation as null and void - Agasthiya Holdings Pvt. Ltd. Vs. CIT, TRO, Ors. (2018 (4) TMI 1135 - Madras HC).
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👉🏻Issues regarding Bill To Ship To for e-Way Bill under CGST Rules, 2017*
( A number of representations have been received seeking clarifications in relation to requirement of e-Way Bill for “Bill To Ship To” model of supplies. In a typical “Bill To Ship To” model of supply, there are three persons involved in a transaction..)
👇🏻 👇🏻 👇🏻
https://goo.gl/U9cycs
*👉🏻Pre-registration educational course under IBBI (IP) Regulations, 2016*
(The pre-registration educational course shall be delivered by the IPAs in not less than 50 hours either in class room sessions or in MOOCS environment.)
👇🏻 👇🏻 👇🏻
https://goo.gl/Aj3g9B
*👉🏻E-way bill rollout on 25th April in four states and one union territory*
( E-way bill system is being introduced to four states starting April 25, namely Arunachal Pradesh, Madhya Pradesh, Meghalaya, and Sikkim, and will also be rolled out in Puducherry.)
👇🏻 👇🏻 👇🏻
https://goo.gl/LQPb64
*👉🏻CAG Provisional empanelment status 2018-19 of CA Firms*
( Provisional empanelment status of firm (along with provisional point score) for the year 2018 - 19 will be available in website www.cag.gov.in from 24.04.2018 to 03.05.2018.)
👇🏻 👇🏻 👇🏻
https://goo.gl/um1z1j
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GST: CBIC Clarifies Issues regarding “Bill To Ship To” for e-Way Bill*
Read more at: http://www.taxscan.in/gst-cbic-issues-bill-ship-e-way-bill/21491/
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GST: TDF Forms Not Required for Inter-State Supply of Goods, says Allahabad HC* [Read Judgment]
Read more at: http://www.taxscan.in/gst-tdf-forms-inter-state-supply-allahabad-hc/21494/
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Facility to apply for Advance Ruling has been enabled on GST Portal.*
This form will enable an applicant to make an application for obtaining the advance ruling on the GST portal and make the required payment of fees
*GST portal also enabled the functionality to revoke or cancel the GST registration.*
This Form will enable the taxpayers whose registration has been cancelled, via suo motu cancellation route, to apply for revocation of their cancellation of registration.
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Door Closer’ supplied to Railways attract 12.5% VAT: Delhi VAT Commissioner Clarifies* [Read Order]
Read more at: http://www.taxscan.in/door-closer-railways-vat-delhi-vat/21444/
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*Bombay HC quashes Service Tax Proceedings against Cricketer Cheteshwar Pujara* [Read Judgment]
Read more at: http://www.taxscan.in/bombay-hc-service-tax-cheteshwar-pujara/21440/
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GST Leviable on ‘Duty Free’ shops at Delhi International Airport*: AAR [Read Order]
Read more at: http://www.taxscan.in/gst-duty-free-shops-delhi-airport-aar/21472/
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Income Tax: With effect from 9th April 2018, registration, statement upload and all other facilities for Form No. 61, 61A and 61B have been migrated from e-filing portal to the Reporting Portal (https://report.insight.gov.in) Notifications: Form No.60 | Form No.61 | Form No.61A | Form No.61B
30.4.18 is Last Date to pay TDS deducted u/s 194IB by individual/HUF not liable to Tax audit from rent more than 50000 pm from Jun 17 to Mar 18 in Form 26QC.
CBDT vide notification no 3 of 2018 dated 5 April 2018 notified rule 114E regarding furnishing of SFT to be applicable for FY 2017-18, wherein amendment of section 285BA made by Finance Act 2014 wherein Annual Information Report (AIR) has been replaced by Statement of Financial Transaction (SFT) or reportable account.
Addition for Jewellery within limits prescribed by CBDT circular not sustainable. Case Name: Smt. Ritu Bajaj Vs. The Dy. C.I.T (ITAT Delhi. Appeal Number : ITA No. 4101/DEL/2017 Date of Judgement/Order : 09/03/2018.
MCA is intensifying its drive against shell companies. After taking action against 226,000 shell companies last year, it has now zeroed in on another 225,000 suspected shell companies. The ministry has sent notices to these companies, asking whether they had filed statutory financial returns.
SEBI today proposed to drastically cut the timeline for listing of debt securities to six days from 12 days at present. It has proposed to make ASBA (Application Supported by Blocked Amount) mandatory for all the investors applying in a public issue of debt securities.
Kindly Subscribe Annual Membership 2018-19 of NIRC. Last year statistics -65 programs, Par Excellence Speakers, Contemporary topics Pay www.nirc-icai.org/seminars.
Gurugram Branch of ICAI is hosting "Certification Course on Concurrent Audit of Banks" starting 7th July (weekends till 22nd July). https://goo.gl/ahrnHa
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# *TCS* scripts history and become first Indian company to hit $100 billion market cap today.
# *CBDT* has issued a sternly worded directive to the Sr. Officers Against Harassment, Misconduct & High-Handedness of Hapless Taxpayers.
# *GST*: 30 APR 2018 is the LAST Date for filing Quarterly GSTR-1 for the registered persons with aggregate turnover up to Rs.1.50 Crores.
# *GST*: Levy of GST confirmed on entire consideration payable on construction services, even if sold after partial construction of unit – AAR in Sanjeev Sharma.
# *GST*: Absence of Transit Declaration Form on i/s movement of goods thru UP - There is no allegation or intention on the part of the assessee to unload the goods within the State of U.P. - seizure and penalty not sustainable - Zebronics India Pvt. Ltd. Vs. SoUP & 3 Ors (2018 (4) TMI 1074 - Allahabad HC).
# *GST*: CBEC has extended the time period for making an application u/s 55 of the CGST Act by the specified agencies to claim a refund of tax paid by them on inward supplies to 18 Months after the expiry of the last date of the quarter in which such supply was received – N.N.20/2018-CT, dt.28.03.2018.
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📺 *Updates*
▶1. Ind AS 32: Discretionary dividend on compound financial instrument to be treated as distribution of profits
https://accountsandaudit.taxmann.com/fileopennew.aspx?id=222330000000015210&mode=home&page=
▶2. MCA specifies signing requirements of share certificates.
https://corporatelaws.taxmann.com/fileopennew.aspx?id=105010000000015405&mode=home&page=
▶3. Right to refuse 'registration of transfer on sufficient cause' is a question of law: Apex Court
Mackintosh Burn Ltd. M v. Sarkar & Chowdhury Enterprises (P.) Ltd.
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NPS: A useful tool to save Tax and secure future-*
We all know that the combined maximum limit for section 80C, 80CCC, and 80CCD (1) deduction is Rs 1, 50,000, which can be availed. Hence there is no extra tax benefit if one invests more than Rs 150000 in these sections.
NPS provides an opportunity to have extra deduction up to Rs 50000.00 in case of self-contribution u/s section 80CCD (1B). Contributions to Atal Pension Yojana are also eligible.
*About*:
NPS stands for the new National Pension Scheme launched by the Government of India. The scheme is handled by the Pension Fund Regulatory and Development Authority (PFRDA).
It is a retirement savings scheme where both employees and employers contribute towards building wealth which is payable to the employee at the time of retirement.
The scheme is particularly designed to encourage systematic savings among employees of both central and state as well as among common citizens( self employed).
The scheme was launched on 1st January, 2004 with a purpose of reforming pension in India, and it is the cheapest market-linked retirement plan available in India.
It is a voluntary scheme and open for all India citizens falling between the age group of 18 to 65 years.
*Other Benefits of Investing in NPS*
1. The scheme comes with a lot of flexibilities which allow you to choose your investment options.
2. You can also switch between different investments funds.
3. The NPS account can be operated from anywhere in India.
4. The plan involves transparent investment norms.
5. It helps you plan your retirement and you can be sure of receiving assured returns at retirement.
6. It may be particularly helpful for professional and business class, who will left with no pension after the end of their working life.
*Functional aspects:*
Under the NPS, an individual can invest in different pension funds.
The NPS offers three different types of funds wherein you can invest and get good returns at retirement. In case, you don’t mention your preference or choice of fund at the time of registration, your investments will be invested in the default funds handled by the Pension Fund Regulatory and Development Authority (PFRDA).
These funds are managed by professional fund managers.
Under the National Pension Scheme, a subscriber can open two accounts – Tier-I and Tier-II.
i) Tier-I is the primary account which a subscriber needs to open to be eligible for opening the Tier- II account.
The Tie- I account does not allow premature withdrawal unless the subscriber reaches the age of 60.
ii) The Tier-II account allows withdrawal as and when the subscriber needs fund.
*Minimum Contribution: *
A subscriber needs to make a minimum contribution Rs. 6000 per year. The minimum one time contribution is Rs. 500. These contributions are applicable for Tier-I accounts.
Similarly, for Tier-II accounts, a subscriber needs to make a minimum contribution of Rs. 2,000 annually, and Rs. 250 at one time.
Funds can be contributed either via cheque or cash or through internet banking.
*How to open*:
Notmal KYC document like Photo, PAN, Adhar etc required as Proof of identity and proof of address.
One may also use following link for more details and open online NPS ( e-nps) account:
https://enps.nsdl.com/eNPS/NationalPensionSystem.html
*How to exit:*
There are two options available at the time of making a normal exit from the NPS scheme. Either, the subscriber may use the accrued pension wealth received from scheme to buy a life annuity from a life insurance company enlisted under PFRDA, or withdraw a part of accumulated pension in lump-sum.
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RBI mandates Aadhaar for KYC Verification* [Read Circular]
Read more at: http://www.taxscan.in/rbi-mandates-aadhaar-for-kyc-verification/21359/
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PMLA Amendment enabling ED to proceed against Property held outside India applicable from 19th April* [Read Notification]
Read more at: http://www.taxscan.in/pmla-amendment-ed-proceedproperty-outside-india/21313/
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Single Page GST Return will be introduced in 3-6 months, says Hasmukh Adhia*
Read more at: http://www.taxscan.in/single-page-gst-return-hasmukh-adhia/21321/
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No TDS on Commission Paid to Non-Resident Agents for their Services outside India: ITAT* [Read Order]
Read more at: http://www.taxscan.in/no-tds-commission-paid-non-resident-agents-services-outside-india-itat/21322/
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Team GST gets Award for Excellence in Public Administration*
Read more at: http://www.taxscan.in/gst-award-excellence-public-administration/21364/
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*President promulgates Ordinance allowing Confiscation of Properties of Loan Defaulters* [Read Notification]
Read more at: http://www.taxscan.in/president-promulgates-ordinance-allowing-confiscation-properties-loan-defaulters/21376/
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*Bribery Case: CBI Files Charge Sheet against GST Commissioner*
Read more at: http://www.taxscan.in/bribery-cbi-charge-sheet-gst-commissioner/21422/