Indian GST & TAXES

Bogus Balance Sheet prepared to avail Bank Loan can be basis for Addition: Calcutta HC asks to proceed against CA Firm for Inflating Value of Assets [Read Judgment] June 26, 2018 1:05 pm| By : Tax Scan Team “The matter is typical of how business is conducted in this country and why loans obtained from banks remain unpaid.” The Calcutta High Court, last week held that the addition to income can be made on the basis of balance sheet and profit and loss accounts certified to have been prepared on estimate basis to avail bank loan and having no relation with the actual. While upholding the addition, Justices Sanjib Banerjee and Abhijit Gangopadhyay has asked to proceed against the Chartered Accountant firm for inflating the value of assets of the assessee to avail the credit facilities from the bank. The judgment dated 21st June starts with a quote that “The matter is typical of how business is conducted in this country and why loans obtained from banks remain unpaid.” Coming to the facts

or GST E-Way Bill Non-Compliance E-Way Bill has become mandatory for the Inter-State as well as the Intra-State movement of goods after 1st April 2018. Let us discuss the provisions/penalties for GST E-way Bill Non-Compliance in this article. Provisions/Penalties For GST E-Way Bill Non-Compliance Many questions have been raised on whatsaap groups, facebook groups as well as other mediums. We will try to answer as many questions as possible. When and How GST E-Way bill is applicable? Answer:  GST E-Way Bill has been made compulsory for inter-state supplies from 01 April 2018. However, for intra-state supplies, E-Way has been enabled in various states earlier. E-Way bill has to be given for inter as well as intrastate supplies exceeding Rs. 50,000. What will happen if goods are transported without the cover of Invoice or GST E-Way bill? Answer:  If goods are transported without invoice or E-Way bill then penal provisions would be applicable. A penalty amounting to the tax payab

*Discounts under GST regime* Sec.15 of the CGST Act, 2017, reproduced below, deals with the provision of discount, as under: “The value of the supply shall not include any discount which is given – (a) Before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) After the supply has been effected, if – (i) Such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices, and (ii) Input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply.” The logical inference which could be drawn from plain reading of above provision is: 1. Discount, if mentioned on the face of the invoice, can be reduced from the taxable value of the supply of goods. 2. Discount, even if not mentioned on the face of the invoice can be reduced from the taxable value,

Assessment of CA Students after completion of 1st and 2nd year of practical training The Council has decided to assess students after completion of first and second year of practical training with online MCQ based tests. These tests would examine the knowledge gained by the student during the course of practical training and his ability to apply his subject specific skills while undergoing his training in that particular area. The brief details about these tests are as below: 1. The test would be of 75 marks (Duration: 2 hours) for 1st year students and of 100 marks (Duration: 3 hours) for 2nd year students. 2. The students completing their 1st/ 2nd year of practical training in a particular quarter of a year would be eligible to register for the said test in the subsequent quarter. 3. Students will be assigned grades based on their performance in the assessments as below: a. 80% and above – A grade b. 60% and above but below 80% – B grade c. 40% and abov

Income Tax Penalties in India The Income Tax Act prescribes various penalties for contraventions or defaults committed by taxpayers. The penalty prescribed under the Income Tax Act can either be mandatory or leviable at discretion of a tax authority. In this article, we look at various income tax penalties in India. Penalty for Default in Self Assessment Tax As per the Income Tax Act, any tax due after allowing credit for Tax Deducted at Source (TDS) or advance tax should be paid before filing the return of income. Tax paid as such is called self assessment tax in India. If a person fails to pay a part of the whole of self assessment tax or interest, then the taxpayer will be held as a defaulter. Under the income tax act, the penalty for default of self assessment tax cannot exceed the amount of tax in arrears. However, an Assessing Office can impose any amount of fine upto the amount of tax in arrears. Penalty for Default in Making Payment of Tax As per the Income Tax Act,

Income Tax Chapter VI-A Deductions for AY 2018-19 and FY 2017-18 (with 80C Deduction) are updated here. The list Chapter VI-A (Income Tax) Deductions starts with Section 80C and ends with Section 80U. This complete list of Chapter VI-A (Income Tax) Deductions for AY 2018-19 and FY 2017-18 are provided based on Union Budget 2017 introduced by the Central Government. In our previous posts, we have already provided Income Tax Slabs for AY 2018-19 and also TDS Rate chart for AY 2018-19. The deductions are available only to the assessees where the gross total income is positive. If however, the gross total income is nil or negative, the question of any deduction from the gross total income does not arise. For this purpose, the expression ‘gross total income’ means the total income of the assessee computed in accordance with the provisions of the Income-Tax Act, before making any deduction under Chapter VI-A (Income Tax), i.e., the aggregate income computed under each head, after giving ef

How to surrender PAN? Offline Process to Surrender Duplicate PAN card: Step 1: Fill up Form 49A for Change or Correction in PAN, mention the PAN number to be surrendered and submit the form to TIN facilitation centre or apply online for correction. Save a copy of Acknowledgment for future reference. Step 2: Draft a letter addressed to the A.O of your jurisdiction. Mention Full name on your PAN card; date of birth (or date of incorporation in case of companies or firms); PAN card number to be retained and details of duplicate PAN card being surrendered; and Acknowledgement received of PAN Correction.  Step 3: A.O. may levy penalty u/s 272B of Rs.10,000/( Rupees Ten Thousand) under the Income Tax Act for holding more than one PAN. Step 4: A.O. may insist for an Affidavit stating that the individual or entity holds no other PAN other than the PAN in use and that the duplicate PAN which is being surrendered has not been used at any time for Income tax purpose or any other p

Due Dates In June 2018: A. Due dates for Compliances under GST for the Month of June 2018 10-06-2018- Due date for filing GSTR -1 for the Month of  May 2018 – Applicable for taxpayers with Annual Aggregate turnover More than 1.50/- Crore (Rs. One Crore Fifty Lacs only) 20-06-2018- GSTR-3B for the Month of  May 2018 Pay due Tax till this date. (Earlier it was filed required to be filed before GSTR-1  & but  now from May onwards GSTR-1 is to filed first so data needs to be finalized before 10th itself. 30-06-2018 Due date of – Tran – 2. Registered persons under GST but unregistered under old regime. A dealer or trader who does not have documents of duty paid in previous regime. Last Chance to claim Input tax Credit on Stock of 30.06.2017. Time period for filing GSTR-2 & GSTR-3 for July 2017 – March 2018 will be subsequently notified. RFD-10:- Eighteen months after end of the quarter for which refund is to be claimed 01-06-2018- E Way Bill for Intra state Movement of Goods

Subject : Information to Taxpayers on new releases on GST Portal - Reg. Dear Taxpayer, Given below are updates on functionalities which were made available on GST Portal recently:                  (A) Registrations: (i)                  Facility to apply for Revocation of cancellation of Registration has been enabled on GST Portal. This form will enable Tax payers whose registration has been cancelled via Suo-moto Cancellation process, to apply for revocation of cancellation of registration. (ii)                Facility to apply for grant of Unique Identity Number to UN Bodies/Embassies/Other Notified Person has been enabled on GST Portal (refer Rule 17(1) of the CGST Rules, 2017).                  (B)    Returns : (i)          Facility to change return frequency (Form GSTR 1) for normal taxpayer: Taxpayers whose turnover is above Rs. 1.5 Cr and who have wrongly selected option as quarterly filing, will be able to choose the option of monthly filing , provided the taxpayer

GSTR-1  Form GSTR-1 contains details of outward supplies (sales) of taxable goods and/or services. GSTR-1 can either be filed quarterly or monthly. Quarterly return  Registered persons with an aggregate turnover up to Rs. 1.5 crore may opt for quarterly return filing   Period (quarterly) Due dates July – Sept. 2017 Jan. 10, 2018  Oct. – Dec. 2017 Feb. 15, 2018 Jan. – March 2018 April 30, 2018 Monthly return Registered persons with aggregate turnover of more than 1.5 crore must file a monthly return. For those with aggregate turnover of  less than  1.5 crore, the monthly return is  optional . Period (monthly) Due dates July – Nov. 2017 Jan. 10, 2018  Dec. 2017 Feb. 10, 2018 Jan. 2018 March 10, 2018 Feb. 2018 April 10, 2018 March 2018 May 10, 2018 Important considerations that need to be taken into account while filing GSTR-1 Businesses need to be careful to file correctly. This is especially important right now because there have been several due

GSTR-3A Notice to return defaulter U/s. 46 r/w Rule 68: An Analysis The fever for GST-ASMT 10 was not yet over and today got another notice called GSTR-3A for non filling of GSTR 3B. Unlike last time this notice was an attachment in prescribed format however without authorized signature but yet again from GMAIL ID. The fever for GST-ASMT 10 was not yet over and today got another notice called GSTR-3A for non filling of GSTR 3B. Unlike last time this notice was an attachment in prescribed format however without authorized signature but yet again from “GMAIL ID”. I feel that the higher ups in the department should give proper instructions to the jurisdictional officers regarding this, as it may raise issues of authenticity of such notices received through a public domain. Through this write up, I putting an effort to analyze few anomalies in the GST provisions.