Financial institutions have been fending off the service taxes and GST notices since April 2018 and this has again led to a dysfunctional relationship between banks and Government of India.
The Government has levied Rs 18,000 crore goods and services tax (GST) on banks for their services like wealth management, zero-fee lockers, ATM facilities etc. Financial institutions have scuffled with the government and went to court over this matter. An animosity between banks and government has become the run of the mill and the government is dealing with this matter since 2015.
According to some sources, the tax notices related to service tax and GST have been sidestepped by the private, public and foreign banks since April 2018, as they prefer to present representations at different forums before stepping ahead towards the Delhi High Court regarding the notices. The Delhi High Court has asked banks to respond to the government notices regarding the dues of Rs 18,000 crore GST applicable to bank services including lockers with zero annual rent, deposits and wealth management. August-end has been set as the deadline to answer the notices, by the Delhi HC.
The government is accusing public banks of deceiving the taxes to upkeep the Monthly Average Balance (MAB). For instance, Banks catered locker facility to the customer in exchange for a deposit worth Rs 50,000, rather than at a yearly rent of Rs 20,000 for a locker facility because of applicability of Rs 360 GST on the rent while deposits do not germinate any liability towards the government revenue.
At the same time, Foreign and private banks provided free facilities including free ATM and debit card along with other offers and wealth management service to the “premium account holders” which has abbreviated their contribution in the government treasury.
However, according to the bankers, these practices were a part of the normal course of practices and were not initiated with an intent to avert the tax obligation
Haryana has created a benchmark by contributing the highest of 4.7 percent in the national GST collection. It is one of the 29 states in India owning just 1.8 percent of the geographical land of the country and accommodating the 2.9 percent of the national population.
State’s finance and tax minister Captain Abhimanyu declared that the per capita GST collection of the state holds Rs. 21,745 which is more than twice the national per capita GST Collection (Rs 9,370).
Collections under GST are further segregated into four different Acts namely, Haryana Goods and Services Tax Act, 2017, Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017, and the Compensation to States Tax Act, 2017.
The minister said, Haryana has the highest GST return filing compliances in the country. He further clarified his words by addressing some statistics, the yearly collection of the state including all the four Acts was Rs. 55,231 crore which if calculated on a monthly basis is Rs. 4,602.56 crore per month. The State GST collection of Haryana in the financial year 2018-19 is Rs 18,987.83 crore against the collection of Rs. 10,844.6 crore in the financial year 2017-18 which clearly shows that the state has shown the growth of 16.77 percent in regards to GST Collection.
Abhimanyu says on a good note, the return compliance of the state alone is 4.5 percent higher than the average national return compliance making it one among the top three high GST compliant states in the country.
The state government keeps a check on the non-fillers. They regularly send SMS alerts, emails and show-cause notices to the non-fillers.
The minister further stated that the taxation department is working on the refund applications and issuing the refunds to the taxpayers within the time limit of 60 Days. Till date, the department has processed around 10,300 applications granting refunds of Rs. 1643 crores under all the GST Acts.
He said the department has already taken initiatives for increasing the tax revenue and removing the chances of tax-evasion from the state. One among such initiatives is to bring the taxpayers under tax net who were immune from paying tax under VAT, for example, dealers of textiles and pesticides. Since GST is implemented in the country, from Haryana alone 2,47,814 new taxpayers have been added in the list. Now the total registered taxpayers prevailing in the state are 4,49,827.
There are some basic points which should be always kept in mind while filing an income tax return for the first time. As it is a tedious task and has to do with governmental procedures, so for the sake of economy and your own liabilities towards the nation, it is the duty of every citizen or taxpayer to check the rules thoroughly and take notes of these helpful points. So, let’s go through all the important provisions considered under the income tax filing.
The current year income tax filing the due date is 31st July 2019 (now extended to 31st August, 2019 by order of CBDT on 23rd July, 2019) and the mistakes while filing income tax can be reverted to a true position by the revision later. Losses from business and profession, capital gains can be carried forward only when the return is filed on or before 31st August 2018.
Note: Note: For AY 2019-20, the due date is 31st August 2018. After that penalty, u/s 234F will be levied. Under Section 234F, an individual would have to pay a penalty of up to Rs 10,000 for late filing income tax return after the due dates. A penalty of Rs.5000 will be applicable for returns filed after the due date of 31st August but before 31st December of the relevant assessment year. The return filed after December will attract a penalty of Rs.10,000. For assesses with a taxable income of up to Rs.500,000, a reduced penalty of Rs.1000 will be applicable.
One of the most important steps to be taken while filing for income tax is that one must link their Aadhar Number while filing an income tax return and when one is applying for a new Permanent Account Number. Also one must note down the consequences that if the taxpayer fails to link PAN cards to the Aadhar numbers before the deadline of June, the application will be discarded straight away.
One should know the time period for which the income tax return is filed up i.e. from April 1 to March 31, which is a standard time period followed in almost every financial year.
The tax slab has to do with the income tax computation as there are various slabs to be careful with different categories of income.
Income Tax Slab Rates for The F.Y. 2018-19 (A.Y. 2019-20)-(FOR INDIVIDUAL)
Income
General Rates
Senior Citizens (60<=Age < 80)
Super Senior Citizen (80<=Age)
Up to Rs. 2,50,000
NIL
NIL
NIL
Rs. 2,50,000 to Rs. 3,00,000
5%
NIL
NIL
Rs. 3,00,000 to Rs. 5,00,000
5%
5%
NIL
Rs. 5,00,000 to Rs. 10,00,000
20%
20%
20%
Above Rs. 10,00,000
30%
30%
30%
The basic exemption limit is Rs 300,000 and Rs 500,000 for individuals aged 60/80 and above respectively. Health & Education cess of 4% will be levied on the amount of income-tax plus surcharge. The surcharge is levied @10% where total income exceeds Rs.50 lakhs up to Rs. 1 crore. A surcharge of 15% is applicable when the total income exceeds Rs. 1 crore.
Income Tax Slab Rates for The F.Y. 2018-19 (A.Y. 2019-20)-(FOR INDIVIDUAL)
Income
General Rates
Senior Citizens (60<=Age < 80)
Super Senior Citizen (80<=Age)
Up to Rs. 2,50,000
NIL
NIL
NIL
Rs. 2,50,000 to Rs. 3,00,000
5%
NIL
NIL
Rs. 3,00,000 to Rs. 5,00,000
5%
5%
NIL
Rs. 5,00,000 to Rs. 10,00,000
20%
20%
20%
Above Rs. 10,00,000
30%
30%
30%
Surcharge On Income Tax
a. Total income exceeding Rs. 50,00,000 but not exceeding Rs. 1,00,00,000, at the rate of 10%, of income tax
b. Having a total income exceeding Rs. 1,00,00,000 at the rate of 15% of income tax
Some basic identity details like address, contact number, email id, bank account details along with IFSC code and PAN i.e. permanent account number which is very much necessary for any tax process in India.
Health and education cess at the rate of 4% of the tax amount are levied.
Various source of income should be mentioned in the filing of return which can determine the tax computation accordingly, some of the common taxable income categories are:
Income from salary
Income from house property
Income from capital gains
Income from business and profession
Income from other sources
Form 16 and 12BA is a salary based tax computation documents which the employer of person seeks the authority to withhold on your salary.
A consolidated document of TDS, TCS, Advance tax etc. can be gained from Income tax departments website named as Form 26AS in which all the paid taxes are shown.
Also, the investment proof required to be given while claiming for the refund or exemption in interest which marks up to Rs 2,00,000. in case of self-occupied property. Investments/Contributions made under LIC, PPF, NSC, ULIPS also comes under exemption scheme under section 80C up to the limit of Rs 150,000. This also includes the contribution of the EPF while in employment.
After all this process, there comes a point where the proper income tax return form is to be identified. Generally, there are some forms which are classified in various cases like:
a. ITR1 – Applicable to an individual having income from salary/one house property (not a case of brought forward loss) / other sources (not being lottery winnings and income from race horses) and (having income up to Rs.50 lakhs).
b. ITR2 – Applicable to Individuals/Hindu Undivided Family (HUF) not having income from business or profession
c. ITR3 -Applicable to an individual/ HUF having income from Business and Profession.
Finally, the verification part is left. Earlier returns were e-verified after submitting the XML. But now the verification part has to be done prior to uploading XML. Either we can verify our return online by the process of e-verification through Aadhaar or we can send the signed copy of ITR to the Centralized Processing Centre (CPC) of the Income Tax Department by any means of the post within the time frame of 120 days failing which the person has to again re-file the return.
Some of the general topics are discussed just above for the sake of hassle free return for the first time income tax filers.
Union budget which was recently unveiled on 1st Feb 2019 took turns for many reasons for both positive and negative aspects of the common public. The announcement of union budget has struck through various benefits for the farmers including yearly INR 6000 pay for the lesser than 2 hectares of the land of any individual farmer. While income tax rebate took the central position of the announcement.
The announcement of union budget 2019, there were multiple benefits showered on the middle class as well as on the farmers alike. The salaried one also got some relief as the government has given full tax rebate up to an income of 5 lakhs.
The effects will take place after the onset of the Assessment Year 2020-21 which will further implement the changes done on an actual level.
Also, note some of the significant changes in the income tax laws:
Full tax rebate on income up to INR 5 lakh while in other cases all the aspects i.e. income tax rates/slabs will remain unchanged
Standard deduction limit which is applicable to the employees and pensioners hiked from INR 40,000 t0 INR 50,000
Now, Here we will go through some examples understanding the latest amendments in the income tax slab which will further change the liability aspect of a taxpayer.
Tax Calculation According to the Budget 2019
Taxable Annual Income (After Adjusting Deductions)
On 24th July, the CBDT will conduct a taxpayer e-assistance campaign across the country to acknowledge the 159th Income Tax Day. while the Finance Minister Nirmala Sitharaman will be the chief guest of the event, as mentioned from the Officials. The Central Board of Direct Taxes (CBDT) is authorized body behind the launch of the campaign and all the regional offices of the Income Tax Department will be benefited with this movement, they further added.
The taxman that is authorized to maintain camps across the country, will help taxpayers in e-filing of their tax returns and this “hand-holding” program will make taxpayers aware with recently made changes to the forms, laws and utilities (software) of the direct taxes system, PTI reported as per a policy plan.
The CBDT, responsible to craft policy for the department, planned for the campaign post getting representations from taxpayer and stakeholders, likewise chartered accountants and bank, that they require more help in terms of filing returns electronically and performing several other IT related duties under the tax laws, they said.
On 24th July, all the regional offices of the Income Tax Department will commemorate the day by honouring the taxpayers who file their taxes diligently. As the sources revealed, the main event will be organized in Delhi and the Finance Minister Nirmala Sitharaman along with the Minister of State for Finance Anurag Thakur will mark their presence as the chief guest.
Not even this, it is being expected that the Union Minister will deliver a speech and the top officials of the department like Indian Revenue Service (IRS) and other officials are likely to be rewarded for their excellent performance in the service.
The event which is going to be held at Ambedkar International Centre on Janpath Road from 10 AM, mandates all officers from the rank of Assistant Commissioner and above posted in Delhi to attend the event, a source said. In the year 1860, the income tax was first levied on July 24, that’s why this day is celebrated as the ‘Income Tax Day’ every year.
In a recent announcement, the Finance Ministry has said that no GST invoice will be required for the goods that were taken abroad for exhibitions or other kinds of export promotion events and are brought back to India within six months.
The ministry further said that most of the exporters were having problems due to a lack of clarity about the GST procedure for the goods that are exported from India.
The applicability of GST during such goods sale was a matter of concern for most of the exporters.
Issuing clarification on GST applicability for exported goods, the ministry said that goods that were taken outside India on a consignment basis for the exhibition purpose do not qualify as supply under GST, but such products must be carried outside with a “delivery challan.”
The ministry said, “Since taking such goods out of India is not a supply, it necessarily follows that it is also not a zero-rated supply. Therefore, execution of a bond or LUT (Letter of Undertaking), as required under section 16 of the IGST Act, is not required.”
It was also mentioned in the clarification that goods that were exported from India for the exhibition purpose must be sold or brought back of India with a period of six months, starting from the date of removal or dispatch.
Although if the exported goods for exhibition purpose are not sold or brought back of India within six months than the tax authorities would consider as a supply that has taken place.
In this regard, the ministry stated, “In this case, the sender shall issue a tax invoice on the date of expiry of six months from the date of removal, in respect of the quantity of goods which have neither been sold nor brought back. The benefit of zero-rating, including refund, shall not be available in respect of such supplies.”
If the goods exported are sold abroad, full or partially, within six months, then the authorities would mark it as a valid supply under GST, in regard to the quantity so sold on the date of sale.
The sender of goods in such cases will also be required to issue a tax invoice against the sold goods. The supply would be counted as a zero-rated supply during the invoice generation.
Although, the refund for such supplies would be available only as a refund of unutilised Input Tax Credit (ITC), rather than a refund of Integrated GST.
“No tax invoice is required to be issued in respect of goods which are brought back to India within the period of six months,” the ministry mentioned.
At the point of origin of income, the taxpayers in India have to pay TDS (Tax Deducted at Source) as per the Income Tax Act, 1961. An amount from the total earnings received by a deductee or receiver is generally withheld by the deductor (person, institution, or organization). This deducted amount is equal to the tax amount, which needs to be credited to the government account within the prescribed time limit.
TDS Applicability in Multiple Forms
Most of the people in India believe that TDS is applicable to salaried individuals, but that’s completely wrong. There are multiple scenarios where TDS is applied, such as:
Income earned from the internet against securities and debentures
Interest Income received from various sources other than securities and debentures
Dividend Income
Money received from EPF (if it is availed before the prescribed withdrawal limit or if the amount withdrawn exceeds the specified limit)
Money sent to freelancers, contractors or subcontractors
Winnings from the game shows, lotteries, crossword puzzles or any other game-related winning Insurance or brokerage commission earnings
Earnings from the transfer of Movable property
Profits received from technical or professional services to clients
Income earned against royalty, etc.
Why is TDS at First Place Exists?
It is a well-known fact to everyone that earnings or income received by people in India is subject to tax at the end of the financial year. It is challenging for the central government to maintain cash reserves or national revenue if income earned by citizens are taxed only at the end of the year, Hence, to avoid such a situation, the concept of TDS has been introduced. The introduction of the TDS system helps the Indian government to:
Prevent the evasion of Tax: TDS mechanism is a masterstroke by the government to receive a portion of the total payable tax from the income at its source point directly with zero delays. This way, the government ensures that people do not hide their actual income and also minimize tax defaults.
Steady Revenue Source: the imposition of TDS on taxpayers also provide a stable revenue source to the government throughout the fiscal year.
SimplifyTax Return Filing Process: As the tax gets deducted automatically via TDS at source, the taxpayers won’t have to pay any other taxes during return filing, if they do not have any other source of income.
Maintain Timely Collection of Tax: The government ensures a timely collection of taxes by imposing the TDS system.
Provide Convenience of the Taxpayers: Individuals can plan their finances very well as the total tax payment gets spread throughout the year for them via TDS. Lump-sum payment of TDS in a single month is a bit difficult for salaried persons as it struck their financial obligations hard.
TAN stands for Tax Deduction and Collection Number; It is a ten-digit alphanumeric number that is issued to the registered organizations or individuals who are obliged to deduct or collect tax at source against payments made by them.
It is mandatory for all the individuals or organizations (bind to deduct tax) to mention the required TAN details to the Income Tax Department in all practices that are relevant to TDS (e.g. TDS returns, issuance of Form 16, TDS payments, etc.), as per the Section 203A of the Income Tax Act 1961. Those who fail to fulfil the above duties are obliged to pay a penalty of INR 10,000.
All the authorized banks in India don’t accept TDS deposits or payments when the TAN details are not mentioned by the depositor.
Point to Note:
In many instances, TAN and PAN are assumed to be the same documents by many people, thinking they can be used interchangeably, which is entirely a false assumption.
One must know that the organizations, individuals or any other entity who is responsible for tax deduction at source must have a TAN, even if they have a PAN. Immovable property buying/selling activity is the only valid exception in this case, where the buyer or deductor is not required to present TAN and can use PAN for TDS payment.
TAN Application Procedure
TAN application procedure is straightforward and can be done online by submitting the Form 49B.
TDS Deduction
As per Section 192 of the Income Tax Act, the deductor must collect TDS at the time of actual payment of salary to employee accounts rather than accrual time of salary.
If any employee gets salary/wages in advance or arrears on salary are paid in advance, then TDS must be collected at that time too.
Apart from this, for all other payments TDS must be deducted at the time of Payment or credit or income (whatever falls first).
TDS Online Payment
Online TDS payment facility is driven by the philosophy of “Anytime, Anywhere.”
Thanks to all the online TDS filing, the TDS administration has become easy and transparent for both taxpayers and government, helping minimize tax scams.
TDS website is a common platform for everyone, including deductors, taxpayers, and assessment officers to obtain or get hands-on the same TDS data.
Increasing Digitization is becoming a cornerstone of a speedy, accurate, and stabler TDS system in the country.
How to Make TDS Payment Online?
W.e.f. January 1st, 2014, the government has made it compulsory for all the public & private sector deductors, and other assesses, who are bound to audit under Section 44AB to use the electronic transfer method of making TDS Payment online. For such purpose, such personnel must have an active net-banking facility with an authorized bank; the eligible banks are listed on the NSDL-TIN website.
Here is a step by step procedure for online TDS payment:
The taxpayers, first, should visit the Income Tax Department E-Payment website. Here is the link for the same: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Deductee falling in the category other than company must select (0021), Non-company deductee option. Others must choose (0020) Company Deductee.
Enter TAN details. Entered details must be used for online verification of TAN.
If the entered TAN details are not present in the income tax department database, then the user won’t be allowed to proceed further with the online Payment.
After submission of TAN, enter the relevant assessment year (AY), which is the immediately following year for the given financial year whose income is being evaluated. For instance, AY for the income earned between April 1st, 2015 to March 31st, 2016 would be AY 2016-17.
Afterwards, enter challan details. The details like name, address, email I.D., and contact details of the TAN holder must also be submitted.
Also, you will need to select the bank through which the TDS will be deposited.
Select the payment type
In case of a normal payment, click on the (200) TDS/TCS Payable by Taxpayer, or if it is a payment against the request raised by the income tax department (e.g., Payment of interest or late fees as per the section 234E), then you must click on the (400) TDS/TCS Regular Assessment (Raised by I.T. Department)
Select the payment nature type (e.g. Payment of insurance commissions, fees for professional services or rent), etc.
Confirm all the entered data in the challan by entering it properly and as per the best of your knowledge.
Post confirmation of data, you will be redirected on your bank’s net banking website page.
You must log in with valid user I.D. and password for processing of Payment.
Once the payment is successful, the system will display a challan counterfoil.
This particular challan contains CIN (Challan Identification Number) along with other details like bank name, customer name, Bank Branch Code, date of challan, etc.
All the entered challan details are transmitted by your collecting bank to the “Tax Information Network” (TIN) by taking the help of the Online Tax Accounting System (OLTAS).
Challan status can also be verified by you through ‘Challan Status Inquiry” on the NSDL – TIN website after seven days of making Payment via CIN.
Why TDS Certificate Required?
Once the TDS has been deposited with the income tax department, the deductor must issue a TDS certificate to the deductee on behalf of whom the tax payment has been made. The TDS return certificate required or Form 16 / Form 16A is generally issued on an annual or quarterly basis.
Advantages of Online TDS Payment
The online TDS payment facility is available 24X7 throughout the year for taxpayers.
The deductor can make TDS payment anytime, anywhere as per the convenience.
Immediate acknowledgement is received by the taxpayer in case of an online TDS payment.
The challan copies can be downloaded instantly and can be saved in the computer for future reference.
Minimal Paperwork with zero hassle.
As Paperwork is completely zero, it leads to better environmental safety.
Time Limit of TDS Payment and Schedule
The last date for making Payment of TDS collected by the deductor is the 7th of the subsequent month. For instance, for the month of July, the deductor is required to make the TDS payment on or before August 7th.
The only exception is the month of March (as it is the last month of a particular financial year) where the TDS deductor is allowed to maker TDS payment on or before April 30th for the given year.
All types of deductors (e.g., government and non-government assessee, etc.), who submit ta with Challan (treasury challan) are instructed by the government to follow this particular TDS timeline.
In the case of government deductors making TDS Payment without challan, the due date for Payment of TDS will be the same day when the tax amount has been deducted.
In some cases, the quarterly Payment of TDS might be allowed by the Assessing Officer (AO) by taking the prior approval of the Joint Commissioner. If that happens, then the last date for TDS paymentwould be the 7th of the subsequent month following the given quarter and April 30th for the last quarter of a particular financial year.
E-File TDS Returns
All the corporate deductors are mandated to furnish their TDS returns in electronic format (w,e.f. June 1st, 2003) (e-TDS returns).
W.e.f. In the fiscal year 2004-05, the government deductors have also been enforced to furnish e-TDS returns.
Apart from the government and corporate deductors, other deductors have the option to furnish TDS return in either electronic or physical format.
How TDS Return File Online?
The TDS returns need to be filed, on a quarterly basis and the due date for the same is 31st of the month after the end of the concerned quarter.
TDS return can be filed by a registered taxpayer individual, organization or institution, who operates as a deductee. Quarterly TDS returns are filed by such entities. According to section 201 (A), the interest incurred on delay in Payment of TDS should be furnished by the taxpayers before filing their TDS return.
Some Important Points About TDS Return Forms:
Form 24Q: This form needs to be filed against deductions made from salaries
Form 26Q: This form must be filed for deductions made from payments apart from salary.
Form 27Q: This is a quarterly TDS return form that needs to be filled out by deductor on behalf of all the deductions made against NRIs
Form 27EQ: This serves as TCS quarterly return that needs to be filed by the deductor
Form 27A: This form must be attached along with quarterly statements by duly signing it.
Key Points to Remember Concerning TDS Returns
NSDL e-Governance Infrastructure Limited, (NSDL e-Gov), operates as an e-TDS intermediary between the CBDT and the TDS deductors.
TIN Facilitation Centres (TIN-FCs) has been established across the country by NSDL e-Governance for assisting TDS deductors in the TDS return filing process.
Both the online and offline formats of file TDS return quarterly are the same.
The e-TDS statements should be structured as per the file format (clean ASCII File), which is similar to the details that are provided by the income tax department.
For easy preparation of TDS returns, the government also offers free downloadable software (Return Preparation Utility – RPU) that has been devised by NSDL.
The TDS deductors can also use third-party TDS tools for preparing and furnishing e-TDS.
All the approved vendor’s details can be seen by taxpayers on the NSDL-TIN website (www.tin-nsdl.com).
Penalties & Consequences for Missing the TDS Payment of Due Dates Penalty
Late In TDS Payment
It is mandatory for deductors to deduct the TDS on the 30th of each month, except for the month of February where it should be deducted on the last day of the month.
In case, TDS is not deducted on the due date (whether in whole or part), the deductor would have to pay interest at a rate of 1% p.m or part thereof, starting from the date of actual deduction.
For instance, if the due date of TDS payment was July 30th, but it was actually deducted on August 5th, in such a scenario, the TDS deductor would be bound to pay interest for two months, i.e., July and August.
Delay in TDS Payment
As per the Section 201 (1A) of the income tax act, if the TDS deductor fails to furnish the deducted TDS payment to the credit of the concerned tax authorities within the given time frame, whether in whole or in part, he/she would be liable to pay interest at a rate of 5% per month or part thereof, starting from the date when TDS was actually deducted till the date TDS was furnished to the credit of the government.
For ease of calculation, the entire calendar month is considered during interest calculation (e.g. a portion of a month will be considered as full while making TDS interest calculation).
This simply means that even a delay of one day can cause interest in two months for TDS deductors.
For instance, suppose for the TDS deducted in the month of July, the Payment has been delayed by a single day and deposited to the credit of government on August 8th. In such a case, the deductor would be forced to pay interest for two months, i,e, total 3% interest.
Apart from interest applicable on TDS late deduction and late Payment, there are some additional provisions for penalty and prosecution too:
Penalty as per Section 221
The defaulter, i.e., TDS deductor, is liable to pay the penalty, In case he fails to deduct tax, without any proper reason as judged by the Assessing Officer.
In any case, the amount of penalty should not exceed the amount of tax in arrears.
Penalty as per the Section 271C
A penalty that equals the tax amount can be imposed, if deductor fails to deduct required TDS amount
Although, the authority to levy such penalty lies within the hand of a Joint Commissioner of Income Tax dept only.
Prosecution Proceedings According to Section 276 B
The deductor is liable to receive rigorous imprisonment for 3 months to 7 years, and fine, in case, if he/she has fails to deposit the deducted TDS amount to the credit of concerned tax authorities without a valid reason.
Late TDS Return Filing
In case, an assessee or deductor fails to furnish TDS return within the given time period, he/she is liable to a penalty of INR 200 per day, until TDS return has been furnished, as per the Section 234E of the income tax act.
The total penalty amount should not surpass the total amount of TDS collected.
This penalty is also imposed, in case of purchase of immovable property or furnishing Form 26 Q.B.
Submission of incorrect data such as TAN, Challan Number, TDS Amount, etc. or delay in TDS return filing for more than a year, starting from the due date can attract a minimum penalty of INR 10,000 to 1,00,000.
Procedure to Check/Verify TDS Payment Status
TDS payment status can be checked online by TDS deductee by visiting the online portal of Centralized Processing Cell.
Here are the detailed steps for the same:
Go to the official TDS CPC website, click on the link https://www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml
Enter the given captcha code and press the submit button.
Mention details like PAN, fiscal Year, TDS Quarter, TAN, and Return type. Now, click on the “Go” button.
TDS credit details of the taxpayer are showcased on screen.
What is TDS Return Due Date?
The detailed information about TDS payment due dates and other timelines for filing and depositing TDS/TCS return is mentioned below in the table. You can also check the late payment and interest charges on late deduction and deposit of TDS.
GST composition scheme was implemented under the respective State VAT Laws with conditions applied on eligibility for the scheme accordingly. GST composition scheme assures greater compliance without the requirement of maintaining records. This system is missing in Service Tax laws.
32nd Council GST Meeting for Composition Traders
The annual turnover limit increased by GST council to 1.50 Crores, effectively from 1 April 2019
Annual filing of GSTR 4 return instead of quarterly. Also, tax paid to be deposited on a quarterly basis.
6 per cent GST rate applicable to the Composition scheme for service providers and turnover up to 50 lakh per annum
Note:
Above amendments shall be applied after the official government notification.
Every taxation system has some prescribed rules or regulations which must be followed by individuals, taxpayer or business owners. Maintaining records properly, submission or filing returns timely, simplified generation and periodic payment of taxes are some of the essential elements of the taxation system for corporate taxpayers. However, business enterprises and owners are facing difficulties to cooperate with such responsibilities of law. It happens just because of lack of knowledge and the majority of people is not aware of the taxation system.
In 28th GST council meeting, the FM has decided to extend the threshold limit of composition scheme taxpayers from 1 crore to 1.5 crores. Also, included the 10% provision of normal taxpayer annual turnover within the composition scheme if in case the given 10 percent is provided as the service.
Key Features of GST Composition Scheme
Eligibility: – Everyone is not eligible to register under the GST composition scheme. Taxpayers or people whose annual turnover up to INR 1.5 crore in a financial year. Turnover for special category States, except Jammu & Kashmir and Uttarakhand, the limit is now increased to Rs 75 Lacs. While the turnover threshold for Jammu & Kashmir and Uttarakhand will be Rs 1 crore must register under the GST composition scheme. The small traders should fill up GST CMP-01 form to accept the scheme.
Special Eligibility:- The GST council has included normal taxpayers within the composition scheme in case 10% of annual turnover is provided as a service.
Quarterly Filing Returns: – Instead of submitting returns 3 – 4 times in a month, taxable person or registered taxpayers will be required to submit or filing tax returns only one time in every quarter under the GST composition scheme.
Intra- State Supplies: – Local suppliers, who supply goods or services within a state can take advantage of the GST composition scheme. Interstate suppliers will come under the regular GST laws.
Bill of supply, not tax invoice: – Registered taxpayers under the GST composition scheme will be required to show the bill of supply instead of tax invoice to the tax authorities. A person paying taxes under the composition scheme can issue a bill of supply instead of the invoice. Exemptions up to 5 lakhs for services under composition scheme are also available.
Not Eligible for Input Tax Credit: – According to section 16, goods and services on which composition tax has already been paid (under section 8) do not apply for Input Tax Credit.
Tax Rate: – Manufacturers – 1% ( .5% central and .5% state), Restaurants services – 5% ( 2.5% central and 2.5 state ), Composition levy eligible – 1% ( 0.5% central and 0.5% state )
GST Only on Taxable supplies: – Earlier it was a provision to pay composition GST even on the exempted goods but now after 1st January 2018, the GST will be only payable on the taxable goods.
Penalty: – If the taxable person is not eligible for the GST composition scheme, then the tax authorities can charge a penalty equal to the amount of tax on such person along with his tax liability. Be careful when availing this scheme and paying taxes. The penalty will be imposed according to the provision of section 73 or 74 if an individual represents incorrect data under the composition scheme.
Voluntary Registrations: – For availing the benefits of this scheme, taxpayers need to make voluntary registration. If in case, the taxpayer annual income turnover exceeds 75 lakh then he will be transferred to the regular scheme. Taxpayers who are already a part of VAT composition need to voluntarily register under this scheme. The scheme can be availed by both migrated and new taxpayers is now extended up to 31st March 2018.
Note: The eligibility and service supply exemption is under review after the 23rd GST Council meeting
Registration Procedure Under the Composition Scheme
Registered or existing taxpayers not under the Composition Scheme may prefer to opt for it (subject to being qualified), only from the beginning of the next financial year. Tax returns to be filed on as or before 31 March of the previous year.
If in case dealers want to switch to the normal scheme, during the year, they may be allowed to do it. Although, they are not able to switch over to the Composition scheme again within the same Financial Year
Filing Returns Under the GST Composition Scheme
Individuals or registered taxpayers can pay tax under the provisions of Composition Scheme shall provide a return in official form and official manner within the eighteen days after the end of the relevant quarter.
GSTR- 4 form has been officially declared by the government for filing tax returns quarterly under the Composition Scheme. GSTR 4 form is specifically only for the dealers.
FAQs on GST Composition Scheme
Q1. Can a composition dealer purchase goods from an inter-state supplier?
Yes, of course, a person who has opted for composition scheme can procure goods from an inter-state supplier without any restrictions
Q2. What are the specified composition rates?
Composition rate is uniform for dealers & manufacturers at 1% ( 0.5% Central tax plus 0.5% State tax). Composition rate for Restaurant Services is 5% (2.5% Central tax plus 2.5% SGST) of the turnover. Composition rate for service providers is 3%
Q3. Is it mandatory for a Composition Dealer to maintain detailed records?
No, it is not mandatory for a registered Composition dealer to maintain detailed records as needed by a normal taxpayer
Q4. Is a Composition Dealers allowed to avail Input Tax Credit?
No, Composition dealer is not allowed to avail Input Tax Credit. A taxpayer who opts to pay tax under the composition scheme cannot take credit on his input supplies
Q5. Is composition dealer responsible to pay both, the Reverse charge and a fixed percentage of normal GST which he is supposed to pay?
If the reverse charge is applicable on a specific supply then the composition dealer is liable to pay GST under reverse charge as a recipient of supply at standard GST rates
Q6. Can the service provider go for the Composition Scheme?
Yes, Composition scheme for services has been introduced with an initial limit of Rs 50 Lakh, taxable at 6%, beginning from April 1, 2019
Q7. Can a person avail ITC on the stock after being denied to pay tax under composition from an authorised officer?
Yes a person can still avail ITC by filing a statement in FORM GST ITC-01 (containing details of input stocks along with the inputs contained in semi-finished or finished goods present in stock) on the date on which the option is refused as per order in FORM GST CMP07, within a period of thirty days from the order
Q8. When does an individual who opted for composition, pay tax?
An individual who opted for composition pays tax on a quarterly basis prior to the 18th* of the subsequent month of the quarter during which the supplies were made (changeable by the government notification)
Q9. Can a Composition Dealer issue Tax Invoices?
No, a Composition Dealer can not issue a tax invoice because he has to pay the tax out of his own pocket and he is not permitted to recover the same from the customers. He is bind to issue Bill of Supply
Q10. What are the different types of returns, a Composition Dealer has to file?
Q11. Can a Composition Dealer collect tax from customers?
No, a Composition Dealer has to pay taxes from his own sources and he is not eligible to recover the composition tax from the buyer
Q12. Can an interstate supplier opt for Composition Scheme?
An interstate supplier can not opt for Composition Scheme as it is available only for dealers imbibed in intra-state supplies
Q13. How is availed input credit treated when one switch on to Composition Scheme from the normal scheme?
In such a case when a person switches on to composition scheme from normal scheme, he/ she becomes accountable to pay an amount equal to the credit of input tax in terms of inputs present in stock on the day instantly after the date of the switchover. The remaining balance of input tax credit in the credit ledger after payment of such amount will be treated inconsiderable
Q14. Can I choose for Composition Scheme in one year and flip flop in the later year?
Yes, You are allowed to switch between the Composition Scheme and the normal scheme on the basis of your turnover. The same switchover can be declared on the GST Portal. However, this flip flop comes along with alterations in the way you issue invoices and file your returns
Q15. Is the alternative to pay tax under composition practicable at any time of the year?
No, the tax under composition cannot be paid at any time of the year. A registered taxpayer is supposed to provide a declaration on the GST Portal in FORM GST CMP-02 prior to the beginning of every financial year
SAG Infotech Blog is a source for all the 2019 latest GST notifications regarding Central, Integrated, Union Territory, Compensation cess and their respective taxes applicable. The following of latest GST notifications in accordance with proper laws, rules and rates is a must for every trading and business unit and will keep the tradition in a proper managerial way. Goods and services tax has been rolled out and almost every business unit must be working by the latest notifications being issued by the official government departments and according to the central board of excise and customs.
According to the notifications over the Central tax, follow and have a look at the link and be updated through the latest update over central tax issues. Also, the notifications regarding the central tax (rate) will keep you updated through the ups and downs in the rates of central taxes. Central taxes will be levied on the basis of Central GST and will be collected by the central government from every transaction of both interstate and intrastate in nature.
The exemption provided from the furnishing of Annual Return / Reconciliation Statement for suppliers of Online Information Database Access and Retrieval Services(“OIDAR services”).
Due date extended for furnishing FORM GSTR-1 for registered persons having an aggregate turnover of more than 1.5 crore rupees for the months of July 2019 to September 2019
The due date prescribed for furnishing FORM GSTR-1 for registered persons having an aggregate turnover of up to 1.5 crore rupees for the months of July 2019 to September 2019.
Date extension from which the facility of blocking and unblocking on an e-way bill facility as per the provision of Rule 138E of CGST Rules, 2017 to be applicable from 21.08.2019.
“Seeks to extend the due date for furnishing FORM GSTR-3B for the month of for the month of April 2019 for registered persons in specified districts of Odisha till 20.06.2019.”
“Seeks to extend the due date for furnishing FORM GSTR-1 for taxpayers having aggregate turnover more than Rs. 1.5 crores for the month of April 2019 for registered persons in specified districts of Odisha till 10.06.2019.”
Procedure notification for quarterly tax payment and annual filing of return for taxpayers claiming the benefit of Notification No. 02/2019– Central Tax (Rate), dated the 7th March 2019
“Seeks to extend the due date for furnishing of returns in FORM GSTR-3B for the Month of March 2019 for three days (i.e. from 20.04.2019 to 23.04.2019).”
“Seeks to extend the due date for furnishing FORM GSTR-1 for taxpayers having aggregate turnover more than Rs. 1.5 crores for the month of March 2019 from 11.04.2019 to 13.04.2019”
Notification No. 08/2017 – Central Tax dated 27.06.2017 in order to further extend the limit of the threshold of aggregate turnover for coming under Composition Scheme u/s 10 of the CGST Act, 2017 to Rs. 1.5 crores.
Prescribed due dates for the furnishing of FORM GSTR-1 for taxpayers having an aggregate turnover of more than Rs. 1.5 crores for the months of April, May and June 2019.
Prescribed due dates for furnishing FORM GSTR-1 for taxpayers having an aggregate turnover up to Rs. 1.5 crores for the months of April, May and June 2019.
Registration exemption for a business unit engaged in the exclusive supply of goods and whose aggregate turnover in the financial year does not cross Rs 40 lakhs.
Extension of due date for furnishing FORM GSTR-3B for the month of January 2019 to 28.02.2019 for registered persons having a principal place of business in the state of J&K; and 22.02.2019 for the rest of the States.
Amendment notification No. 65/2017-Central Tax dated 15.11.2017 bringing effects of amendments (to align Special Category States with the explanation in section 22 of CGST Act, 2017) in the GST Acts
“Seeks to specifies retail outlets established in the departure area of an international airport, beyond the immigrationcounters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund”
“To amend notification No. 11/ 2017- Central Tax (Rate) so as to extend the last date for exercising the option by promoters to pay tax at the old rates of 12%/ 8% with ITC”
Amendment of notification No. 02/2019- Central Tax (Rate) providing for the application of Composition rules to persons opting to pay tax under notification no. 2/2019- Central Tax (Rate).
Amendment of notification No. 13/2017- Central Tax (Rate) specifying services to be taxed under Reverse Charge Mechanism (RCM) as recommended by GST Council for real estate sector.
Rescinding the notification No. 8/2017-Central Tax (Rate) dated 28.06.2017 to bring in the effects of the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts
GST Notifications on Integrated Tax and Rate in 2019
Integrated taxes will keep you informed and updated regarding the latest issues and rules and regulations of integrated taxes and the rates being decided the time to time. All the integrated taxes of state and central will be covered up in this section.
Amendment notification No. 10/2017-Integrated Tax dated 13.10.2017 bringing in the amendments (to align Special Category States with the explanation in section 22 of CGST Act, 2017) in the GST Acts
“Seeks to exempts any supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist.”
“Seeks to specifies retail outlets established in the departure area of an international airport, beyond the immigrationcounters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund.”
“To amend notification No. 8/ 2017- Integrated Tax (Rate) so as to extend the last date for exercising the option by promoters to pay tax at the old rates of 12%/ 8% with ITC”
Amendment of notification No. 1/2017- Integrated Tax (Rate) notifying IGST rate of various goods as recommended by GST Council for the real estate sector
Amendment of notification No. 10/2017- Integrated Tax (Rate) specifying services to be taxed under Reverse Charge Mechanism (RCM) as recommended by GST Council for real estate sector.
Amendment of notification No. 8/2017- Integrated Tax (Rate) notifying IGST rates of various services as recommended by GST Council for real estate sector.
“Seeks to rescind Sl. No. 10D of Notification No. 09/2017-Integrated Tax (Rate) dated 28.06.2017 in relation to exemption of IGST on the supply of services having a place of supply in Nepal or Bhutan, against payment in Indian Rupees.”
Rescinding notification No. 32/2017-Central Tax (Rate) dated 13.10.2017 bringing in the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts
2019 GST Notifications on Union Territory Tax and Rate
Union Territory section of notification is formed for the overall updates of rules and laws regarding the integrated taxes and its rates being levied across the designation union territories. All the 7 union territories along with New Delhi has been applied with UTGST and here you can catch every notification regarding the union territories updates.
The exemption from registration for the person within the exclusive supply of goods and having the aggregate turnover in the financial year does not exceed Rs 40 lakhs.
“Seeks to specifies retail outlets established in the departure area of an international airport, beyond the immigrationcounters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund.”
“Seeks to amend notification No. 11/ 2017- Union Territory Tax (Rate) so as to extend the last date for exercising the option by promoters to pay tax at the old rates of 12%/ 8% with ITC”
Amendment of notification No. 02/2019- Union Territory Tax (Rate) providing for application of Composition rules to persons opting to pay tax under notification no. 2/2019- Union Territory Tax (Rate).
Amendment of notification No. 1/2017- Union Territory Tax (Rate) notifying UTGST rate of certain goods as recommended by GST Council for real estate sector.
Amendment of notification No. 13/2017- Union Territory Tax (Rate) specifying services to be taxed under Reverse Charge Mechanism (RCM) as recommended by GST Council for real estate sector.
Amendment of notification No. 11/2017- Union Territory Tax (Rate) notifying UTGST rates of services as recommended by GST Council for real estate sector
Rescinding notification No. 8/2017-Union Territory Tax (Rate) dated 28.06.2017 bringing in the effects of amendments (regarding RCM on supplies by unregistered persons) in the GST Acts
GST Notifications on Compensation Cess & Rate in 2019
“Exempts any supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist.”
Association of Chartered Accountants is voicing out against the confluent changes in the tax return filing software and forms seeking excess information about long-term capital gains tax.
In this regard the Bombay Chartered Accountant Society (BCAS) – India’s oldest voluntary body of Chartered Accountants, has written a letter to the finance minister Nirmala Sitharaman, seeking convenience in filing ITR. The letter calls attention to the chronology of form and changes introduced to the utility.
The letter of BCAS to FM asserts, “Constant tinkering with the forms necessitates changes in software on the e-filing portal; this in turn leads to delays in making the government utility available to taxpayers…The pain that is now being faced is beyond tolerance levels…,”
CA associations of Surat, Ahmedabad, Lucknow and Karnataka are also foreseeing to join the appeal made by BCAS regarding frequent updated in software which takes place during the intermediate period of ITR preparation.
Issues written by BCAS is about additional details of ISIN and Delayed introduction of Form 16s for employees.
ISIN (International Securities Identification Number) is a 12-digit alphanumeric number which is allotted to every security. This number is asked when the tax-payers furnish long-term capital gains. BCAS wrote that these additions to the utility which asks additional information about ISIN will complicate the situations as ITR forms are already notified. To this, a clarification was issued from the Central Board of Direct Taxes within a few hours which states that the tax-payers who have already filed ITR-1, before the changes in utility, will not have to file it again. So, 1.38 crore taxpayers who had filed their returns will not be required to consider the changes made to the utility.
Further, the issue regarding the lag in Form 16s for salaried professional was also called attention as chartered accountants had already filed returns for salaried class by June.
Raju Shah, former chairman of legal representation committee of CA Association of Ahmedabad said, “We couldn’t file returns in May-June as forms were notified late and salaried individuals didn’t receive their Form 16. In July, when we move over to business taxpayers, we are still getting salaried individuals returns,”.
To which CBDT made clarification saying, “Even though the utility is being updated regularly to provide ease to taxpayers, returns filed by using the previous version of the utility will continue to be valid. This means, those who have already filed the returns, will not need to re-file it as per the updated version of the software”.
Although the changes are made to bring ease for taxpayers, to combat tax evasion and to increase tax collection, the IT Dept. needs to bring in these mutations in their entire advertisements.
Chartered accountants study the changes and fare forward with them but taxpayers remain unaware about the same. It gives rise to a heavy-handed situation for the taxpayers as CA frequently visit them seeking additional information.
Taxpayers have a sole motto of filing the ITRs on time and not getting penalized with Rs 5,000, for delayed filing. So if the taxpayers will be on board with the latest notifications and changes, C.A. will find it easy to incorporate the alterations.
