Stemfluid Business Solutions Pvt. Ltd.

01/07/2017

Update:

10 things to know before GST rollout. GST will be rolled out from July 1, 2017 and just before its implementation the Govt. had issued various notifications on GST:

1. There is a requirement to mention code of items in tax invoice under GST. Now the Govt. has given some relief to small assessees with annual turnover uptoRs 1.5 crores. They are not required to mention HSN code in their tax invoice. Taxpayers having turnover in the range of Rs 1.5-5 crore will be required to mention only two digits of HSN code and taxpayers with turnover more than Rs 5 crore will be required to mention four digits of HSN code.

2. Now the Govt. has given exemption from reverse charge in those cases wherein the value of goods or services does not exceed Rs 5000 and such goods or services are received by registered person from the unregistered person.

3. Earlier Military canteens (‘Canteen Stores Department’)were not required to pay any indirect tax on purchase of goods. Now Military canteens will be required to pay GST at the time of purchase of goods and they would be entitled to refund of 50 percent of inputtax under GST.

4. Now e-commerce operators (like Ola, Uber) are required to pay GST on radio taxi services.

5. Now e-commerce operators (like MMT, Oyo rooms) are required to pay GST on services of hotel accommodation only when such hotels are not registered under GST.

6. Exemption from reverse charge has been given to registered person on purchase of second hand goods from unregistered person subject to the condition that buyer will pay GST on its subsequent sales.

7. Now builders would not be able to claim credit of unutilized input tax on supply of construction services.

8. Earlier UN and Foreign diplomatic missions were not required to pay any indirect taxes. Now they are required to pay GST and they will be entitled to claim a refund of GST subsequently.

9. GST will be be levied at rate of 5% on various goods used for petroleum operations subject to some conditions.

10. Any services provided by Panchayat will not be liable to GST.

22/05/2017

30/04/2017

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01/04/2017

31/03/2017

Changes in law wef #1-4-2017:
(A) Limit for payment of by cash (both, capital and revenue expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person.
(B) No person shall receive an amount of two lakh rupees or more, by (Sec. 269ST).
(C) For below Rs.2 crores turnover cases - For Non Cash Sales (through Digital, Online, cheque, Bank etc.) : will be taken as 6% of Turnover/Gross Receipt. For Cash Sales it's 8%.
(D) Exemption limit is Rs.2,50,000/- (same as earlier) After that, upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%).
(E) Payment of - Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) - deduct TDS @ 5%.
(F) in respect of Land & Buildings period reduced from 3 years to 2 years and Base year shifted from 01.04.1981 to 01.04.2001.
(G) rate for the account year 2017-18 for companies with annual turnover upto Rs. 50 crores (in the account year 2015-16) is reduced to 25%. No change in firm tax rate of 30%.
(H) made exceeding Rs.2000 will be not be eligible for deduction under section 80G.
(I) Sale of unquoted to be taxed at (deemed) fair value.
(J) In absence of of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.
(K) From financial year 2017-18, if is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.
(L) Where Sec.12AA registered modify their objects clause, they need to apply within 30 days to CIT for approval.