K Consultants

04/11/2018

20/10/2017

Happy New Year

06/10/2017

Gst Council 22nd meeting update:

1. Turnover for composition scheme raised from ₹75 Lakhs to₹ 1 crores.

2. E-way bill provisions deferred till April 2018.

3. Quarterly returns for taxpayers with annual turnover less than ₹1.5 crores. Tax to be paid on monthly basis.

4. Inputs to exporters get deemed export status - this will solve the working capital issue faced by exporter

5. Exporters to get relief for next 6 months

6. E wallet will come into play after 6 months

7. Gas stove and consumer items reduced from 28%

GST council mein major decisions taken today :

8. Tax on cloth reduced to 5% from 12%.

9. 60 items tax reduced to 5% from 12%.

10. Ac Restaurant Tax reduced to 12% from 18% GST.

16/08/2017

28/07/2017

Goods Transport Agency under GST

Transportation is a huge part of the economy. Any problems in transportation disrupts the entire business channel. This is why any petrol price change has a far-reaching effect in disruption of business.

The most popular form of goods transport in India is via road. As per the National Highways Authority of India, about 65% of freight and 80% passenger traffic is carried by the roads.

Transportation of goods by road are done by transporter or courier agency. This article will discuss the transporter,i.e., the GTA or goods transport agencies and the provisions of GST applicable on them.

What is a GTA?
As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, “goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

This means, while others might also hire out vehicles for goods transportation, only those issuing a consignment note are considered as a GTA. As per Explanation to Rule 4B, Service Tax Rules, 1994, a consignment note is a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage. The consignment note is serially numbered, and contains the names of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods, place of origin and destination, and person liable for paying service tax whether consignor, consignee or the GTA .

The courts held only persons issuing consignment notes are covered within GTA. So, individual truck owners who do not book cargo and issue consignment note in normal course of business are, not GTA and accordingly, services provided by them are not liable to service tax.

Service Tax
RCM applied under Service tax. There was an abatement of 60% for transportation of used household goods and 70% for transportation of normal goods.

Goods Transport Agency under GST
GST will not apply on transport of following goods by a goods transport agency-

agricultural produce
milk, salt and food grain including flour, pulses and rice
organic manure
newspaper or magazines registered with the Registrar of Newspapers
relief materials meant for victims of natural or man-made disasters
defence or military equipment
goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage is less than Rs. 1,500
goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750.
Rates
goods transport agency under GST

Is a GTA liable to register?
As per Notification No. 5/2017- Central Tax dated 19/06/2017, a person who is only engaged in making supplies of taxable goods/services, where the total tax on which is liable to be paid on reverse charge basis by the recipient as the category of persons exempted from obtaining registration under GST.

Thus, a GTA does not have to register under GST if he is exclusively transporting goods even if the turnover exceeds 20 lakhs as the total tax is required to be paid by the recipient under reverse charge basis.\

goods transport agency under GST

Reverse Charge in case of GTA
Normally a service provider is required to pay taxes, but in case a GTA provides the services to the following persons, recipient of services is required to pay GST under reverse charge (notification No. 13/2017- Central Tax (Rate) dated 28th June, 2017) :-

Factory registered under the Factories Act,1948
A society registered under the Societies Registration Act, 1860 or under any other law
A co-operative society established under any law
A person registered under GST
A body corporate established by or under any law; or
A partnership firm whether registered or not (including AOP)
Casual taxable person
Who will pay under Reverse Charge Basis?
As per Notification No. 13/2017- Central Tax dated 28/06/2017 the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the receiver of service.

goods transport agency under GST

Payment is by sender

If the supplier of goods (consignor) pays the GTA, then the sender will be treated as the recipient. If he belongs to the category of persons above then he will pay GST on reverse charge basis.

goods transport agency under GST

Payment by Receiver

If the liability of freight payment lies with the receiver (Consignee), then the receiver of goods will be treated as a receiver of transportation services. If he belongs to any of the above category of persons, then he will pay GST on reverse charge basis.

goods transport agency under GST

Goods transport agency exempt from GST registration'
July 06, 2017 16:38 IST


R Vignesh, a member of the Institute of Cost and Management Accountants of India in Chennai, practises indirect taxation. He also addresses GST related issues on various platforms.

*He appeared on Redif Chat to answer readers' queries on GST*


R Vignesh
Hi friends, good after noon. I am ready now to answer your questions on GST
Mohamed Sheikha
Q: How will the inter-state transporting of goods will be regulated after GST? The effect on small-medium inter-state dealers under GST?
R Vignesh
Ans: Inter state transactions are covered under IGST ACT and are subject IGS
Inderjeet Sunda
Q: Sir, Trader who Imports Goods and Sale them in India will be eligible for Composition Scheme???
R Vignesh
Ans: No dealers who procure goods from outside state are not qualified to go under composition scheme
Sushil Kumar
Q: After several reminder mail and approach unable to get PID for GST migration, how we can start invoicing to customers
R Vignesh
Ans: You can raise normal invoice now and should revise the invoice once the GSTIN is received.
Victor Lemos
Q: Is GST charged on Samples (Free of Cost)
R Vignesh
Ans: Free samples are not liable to GST.
Pearl M
Q: CCTV & Access Control systems will be billed under what tax?
R Vignesh
Ans: To my understanding the same is liable at the rate of 18%. You may please verify with the schedule of rates
Venkatesh Ramachandran
Q: Sir can you explain the Anti-profiteering clause in detail. It looks so vague.
R Vignesh
Ans: The anti-profiteering clause requires a registered person to pass on the benefit arising on reduction in cost or price due to seamless ITC. This is the one line summary for your query.
KALPESH SONECHA
Q: Please advise input tax credit of GST on Fabrics can be availed by apparel manufacturers
R Vignesh
Ans: ITC under GST can be taken if the goods or services so procured are used for furtherance of business. There is only little exclusion where you cannot take ITC. Fabrics don not come under such exclusion
Vande Vishnu
Q: Still we need to fill any entry form for inter state billing
R Vignesh
Ans: No more entry form required under GST regime
Sandeep Banerjee
Q: I booked a under construction apartment in Mumbai 1 year ago 45% of the payment done before GST at the ongoing service tax and vat - what will happen now will i have to pay 12% on balance 55% to the builder?
R Vignesh
Ans: For the balance portion executed and billed under GST, the rates prevailing under GST will have to be paid
Sunita Jhunjhunwala
Q: My turnover is 30 Lakhs am a retailer. I do buy materials from out of my home state but do not sell any thing out of state. Can I opt for composition or not?
R Vignesh
Ans: No dealers procuring from outside state are not qualified to opt under composition scheme
Som Bahadur
Q: On under construction flats we were paying a service tax @ 4.5% (according to the abatement calculation). Now we have to pay a flat 12% on the total amount. is it correct?
R Vignesh
Ans: Yes correct
Ashish Sharma
Q: For opening a branch of a Pvt. Ltd. company in other state, do we need to have separate GSTIN ?
R Vignesh
Ans: Yes GSTIN registration is state specific
Sivakishore Madhamsetty
Q: Is their any procedure for invoice rising for reversing mechanism?
R Vignesh
Ans: Yes. Under reverse charge mechanism, you have done a self invoicing for you and show it under inward supply return
Lucky-Patel
Q: I am unregistered dealer in cloth, turnover is less than 8 lacs PA, and can I make purchases interstate with out registration. For resale without collecting the tax.
R Vignesh
Ans: Interstate purchase can be done without registration
Gagan Grover
Q: How can I put an invoice no on invoices as , invoice is raised once item is billed and invoice number is generated when such invoice is uploaded
R Vignesh
Ans: You may mention it manually
Ajaj Sayyed
Q: Sir what would be GST rate on Billing Supply Manufacturing and Same to be used as works contract.
R Vignesh
Ans: Please refer the schedule of rates available under CBEC site
Biswajit
Q: Sir my friend is a stockist who had GST no but he use to sell products to small retailers/ pan shops who don't have GST no and whose yearly turnover is below 20 lacs. ... Can the stockist still bill these retailers without any documents?
R Vignesh
Ans: The stockist has to raise a tax invoice on these retailers
Mukta Opticians
Q: Am I got ITC in Capital Goods & Stationery?
R Vignesh
Ans: Yes if it is procured for furtherance of Business
Rajesh Kejriwal
Q: Will job-work attract GST? A company is making copper components, but is getting half of machining done by us. They send us copper rods and we cut the rods and do some machining and send the whole material back to them. Then they finish the product and sell to their customers. We are only doing half of machining and charging them for the labor job.
R Vignesh
Ans: Yes this job work attracts GST @ 18%
CHINTANGALA
Q: 8 digits HSN is compulsory or first 4 digits of HSN code will do
R Vignesh
Ans: Turnover up to 1.5 CR - No HSN required to be mentioned1.5 CR to 5 CR - 2 digit HSN code required to be mentioned more than 5 CR - full HSN should be mentioned
DHANANJAY
Q: I m a helmet manufacturer (GST @18%). Its has many components. Visor (face glass) is one of them what will be the rate of GST on that
R Vignesh
Ans: Please refer the schedule of rates. This is available in CBEC site
Sudeep Pagedar
Q: I am a Mutual Fund investor...could you please tell me how GST will impact and affect me?
R Vignesh
Ans: Mutual find is subject to GST and you have to charge GST on the consideration received from the investors for managing the funds
Sai Chavan
Q: Is non ac hotels also charge GST on food items
R Vignesh
Ans: Yes non ac hotels are covered under 12% bracket
Ramesh-Kumar
Q: I am manpower supplier and supplying in various states but billing on H O I have no offices in those cities Do I Need to register in those states
R Vignesh
Ans: No not required. Register only in the state from where you make taxable supply
Mayank Agarwal
Q: Manufacturer is in UP. Recipient is in Punjab. Place of delivery to UP. Will IGST be levied or SGST/CGST?
R Vignesh
Ans: IGST and not CGST & SGST.
Vikash Chowdhury
Q: Sir, for transporters (GTA), is it required to register bcoz as per Notification 5 of 22/6/17, it is mentioned as exempted but doubt still is there & what if we are already registered?
R Vignesh
Ans: GTA is exempted from taking registration under GST
Reema Tandon
Q: What % of GST will cover in nutraceutical formulation under food license?
R Vignesh
Ans: Please refer the schedule of goods with rates based on your product HSN code. The same is available in CBEC site
Tejas Mistry
Q: I given construction contract to my Contractor to construct my Factory Building Contractor charges GST on his invoices which includes his over all rate of Goods and His services can I claim such GST as ITC?
R Vignesh
Ans: No this is excluded from the ITC list
Venkatachalam
Q: What is the impact on seller if he sells goods to unregistered persons i.e. Company selling scrap?
R Vignesh
Ans: No impact

26/06/2017

Documents required for fresh registration under GST

The following are the documents required for fresh enrolment for GST:

In case of Individual:

1) PAN card
2) ID proof and address proof of Individual
3) Photo (JPG - 100 KB)
4) Bank Details - Copy of cancelled cheque or first page of Pass Book (JPG, PDF - 100 KB) or first page of recent bank statement (JPG, PDF - 500 KB)
5) Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc.(JPG, PDF - 100 KB) , also in case the premises is rented, Rent agreement (JPG, PDF - 200 KB) will be required.

In case One Person Company/ Private Limited Company/ Public Company:

Documents of Company:

1) Company PAN card
2) Memorandum of Association (MOA) /Articles of Association (AOA) (JPG, PDF - 1 MB)
3) Registration Certificate/ Incorporation Certificate of the company(JPG, PDF - 1 MB)
4) Bank Details - Copy of cancelled cheque or first page of Pass Book (JPG, PDF - 100 KB) or first page of recent bank statement (JPG, PDF - 500 KB)
5) Copy of resolution passed by BOD / Managing Committee. (JPG, PDF - 100 KB)
6) Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc.(JPG, PDF - 100 KB), also in case the premises is rented, Rent agreement (JPG, PDF - 200 KB) will be required.
7) Director related Documents- PAN and ID proof of directors& Photo (JPG - 100 KB)
8) Proof of Authorized Signatory (PDF, JPEG - 1MB)
9) DIN No of Partners & Digital Signature

Incase of Partnership & Limited Liability Partnership (LLP)

Documents of Partnership & LLP:

1) Partnership / LLP PAN Card (as the case may be)
2) Partnership Deed/ LLP Agreement
3) DIN No of Partners & Digital Signature (in case of LLP)
4) Bank Details - Copy of cancelled cheque or first page of Pass Book (JPG, PDF - 100 KB) or first page of recent bank statement (JPG, PDF - 500 KB)
5) Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc. (JPG, PDF - 100 KB), also in case the premises is rented, Rent agreement (JPG, PDF - 200 KB) will be required.
6) Partner's related Documents- PAN and ID proof of designated partners& Photo (JPG - 100 KB)
7) Proof of Authorized Signatory (PDF Or JPEG - 1MB)

Further in case of principle place of business if the premises are owned than any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill. If the said premises is rented/ leased a copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lesser like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill. If the premises is neither owned nor rented than consent letter (JPG, PDF - 100 KB) would be required with any supporting document of premise.

15/06/2017

15/05/2017

STATEMENT OF FINANCIAL TRANSACTIONS(SFTs), replaced AIR. It's applicable on Professionals & all assesses liable to Tax Audit also

1) Earlier the requirement of filing Annual Information Return(AIR) has now been completely replaced by Statement of Financial Transactions (SFT).

2) The DUE DATE for filing first such SFT is 31.5.2017.

3) By May 31, business establishments, any person liable to tax audit u/s 44AB, various financial institutions & professionals, including doctors, lawyers and architects, will have to report a slew of high-value transactions such as cash deposit, credit card payments, share sale, property deals, debentures and mutual fund units among others.

4) Salaried individuals are not required to file the newly introduced statement of financial transactions (SFT).

5) Entities that will have to report are banks, professionals, fund houses, forex dealers, post office, nidhis, non-banking finance companies, property registrars, companies issuing bonds and debentures, and listed companies buying back shares from specific persons.

6) Under the modified rules, the earlier requirement of filing annual information return (AIR) has now been replaced by SFT.

7) The changes have created new classes of first time filers who have to file SFT of specified transactions for FY 2016-17.

8) The nature of transactions includes cash payment for purchase of demand drafts or pay orders of Rs 10 lakh or more in a year; cash payment of Rs 10 lakh or more for purchase of pre-paid RBI instruments, cash deposit or withdrawal of Rs 50 lakh or more from current account; one-time deposit of Rs 10 lakh or more with banks, nidhis, NBFCs and post offices; payment of Rs 1 lakh or more in cash and Rs 10 lakh or more by other mode against credit card bill issued to a person during the year; and property registrars for deals worth Rs 30 lakh or more.

9) SFTs have to be filed in separate form and not along with the regular Income tax returns.

10) As per the new requirements, apart from specific filers like banks which used to file similar AIR returns, SFT regulations would cover *any person who is liable to audit under Section 44AB* of the Income Tax Act, 1961. The particular section relates to audit of businesses and professions.

12) Form 61A , which consists of 4 parts, where part 1 of the said form is compulsory for any taxpayers falling in preview of section 285BA of the Income tax Act.

13) Form 61A is available on income tax site can be reached from HELP button on home page.

14) It is a zip file , unzip and click on Export file, to fill in excel formal. After filing the form , validate the file. Xml will be generated. While uploading, import the file,again zip file will be created.

15) Point to remember is that even after file gets uploaded , it takes 24 hours to confirm successfully uploaded. So last hour rush should be avoided.

16) Any technical queries pertaining to Efiling 61A can be emailed to Mr. Kajla at:
[email protected]

17) For instance, while reporting an entity will have to take into account all the accounts of the same nature maintained in respect of a person during a financial year; also, while attributing the entire value of the transactions to all the persons in cases where the account is maintained or transactions recorded in the name of more than one person.

18) Penalty on delay is Rs. 100 per day, if notice not received, else upto Rs 500/ day.

19) Filing of inaccurate information will attract penalty of Rs 50,000.

20/04/2017

Linking Aadhaar with PAN.
As you are all aware linking of Aadhaar number with PAN is made mandatory for filing of Income Tax Returns now.
Many people are facing difficulty in this regard.As the name appearing on Aadhaar card did not match exactly as appearing on PAN card I also faced difficulty in linking. The best solution is to modify your name on the Aadhaar Crad.
The following procedure on my laptop and successfully changed the name on the Aadhaar card and linked the Aadhaar number and PAN successfully and without any difficulty.
You will be able to generate my eAadhar card.
Every thing was done from home , not visiting any Aadhaar centre. Please note that this is possible only if your mobile number is recorded on your Aadhaar card.
The Procedure/ Steps I followed are as under. You may also try.
1] Take a xerox copy of your PAN card on a full white sheet of paper.
2]Self attest it with your signature.
3]Write your name and Aadhaar number on the Xerox copy.
4]Scan the Xerox sheet.
5]Open the UIDAI website.
6]Enter Aadhaar Number.
7]Enter the OTP you receive n proceed.
8]Select the option change/update Aadhaar Details.
9] Change /modify your name as appearing on PAN.
10]Upload the scanned Xerox copy.
Normally within a day or two the change /modification is effected.
Once the change is effected you can easily link Aadhaar number and PAN.
A new card is issued .It may take a few more days.
If you are in a hurry you you can download eAadhar card .
If you visit UIDAI website only 3-4 steps are needed. Enter Aadhaar number,name as modified, pincode etc.
You get OTP. Enter the OTP. Then Download the eAadhaar.

01/02/2017

Major Highlights of Union Budget 2017:
1. Total Budget of ₹ 21.47 Lakhs crores for 2017-2018.
2. Increase in Direct Tax collection by 34% after demonetisation.
3. Holding period for LTCG for Land & Building reduced to 2 years.
4. Carried forward of MAT Credit for 15 years instead of 10 years.
5. 5% tax exemption for companies having turnover below ₹ 50 crores. New Rate of Tax will be 25%.
6. 6% presumptive tax for turnover upto ₹ 2 crores.
7. No cash transaction above ₹ 3 Lakhs will be permitted.
8. Maximum Donation receivable from unknown source by pol party will be ₹ 2000.
9. Change in period of limitation for scrutiny assessment.
10. 5% tax for income below ₹ 5 Lakhs. Hence Effectively No tax for income upto ₹ 3 Lakh.
11. 10% surcharge for assesse income between ₹ 50 Lakhs to ₹ 1 crores.
12. One page Income Tax return proposed.
13. No major changes for Indirect taxes due to GST implementation.