GST UPDATES: - Valuation in GST: - Value of Supply: - Every fiscal statute makes provision for the determination of value as tax which is normally payable on ad-valorem basis. In GST also, tax is payable on ad-valorem basis i.e percentage of value of the supply of goods or services. Section 15 of the CGST Act and Determination of Value of Supply, CGST Rules, 2017 contain provisions related to valuation of supply of goods or services made in different circumstances and to different persons. Transaction Value: - Under GST law, taxable value is the transaction value i.e. price actually paid or payable, provided the supplier & the recipient are not related, and price is the sole consideration. In most of the cases of regular normal trade, the invoice value will be the taxable value. However, to determine value of certain specific transactions, Determination of Value of Supply rules have been prescribed in CGST Rules, 2017 Compulsory Inclusions: - Any taxes, fees, charges...
Posts
GST UPDATES: - RETURNS UNDER GST: - The basic features of the returns mechanism in GST include electronic filing of returns, uploading of invoice level information and auto-population of information relating to Input Tax Credit (ITC) from returns of supplier to that of recipient, invoice-level information matching and auto- reversal of Input Tax Credit in case of mismatch. The returns mechanism is designed to assist the taxpayer to file returns and avail ITC. Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There are separate returns for a taxpayer registered under the composition scheme, non-resident taxpayer, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS) and a person granted Unique Identification Number. I...
GST UPDATES INPUT TAX CREDIT MECHANISM: - Uninterrupted and seamless chain of input tax credit (hereinafter referred to as, “ITC”) is one of the key features of Goods and Services Tax. ITC is a mechanism to avoid cascading of taxes. Cascading of taxes, in simple language, is ‘tax on tax’. Under the present system of taxation, credit of taxes being levied by Central Government is not available as set-off for payment of taxes levied by State Governments, and vice versa. One of the most important features of the GST system is that the entire supply chain would be subject to GST to be levied by Central and State Government concurrently. As the tax charged by the Central or the State Governments would be part of the same tax regime, the credit of tax paid at every stage would be available as set-off for payment of tax at every subsequent stage. Let us understand how ‘cascading’ of taxes takes place in the present regime. Central excise duty charged on inputs used for manuf...
GST UPDATES Accounts and records in GST) Assessment in GST is mainly focused on self assessment by the taxpayers themselves. Every taxpayer is required to self-assess the taxes payable and furnish a return for each tax period i.e. the period for which return is required to be filed. The compliance verification is done by the department through scrutiny of returns, audit and/or investigation. Thus the compliance verification is to be done through documentary checks rather than physical controls. This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and records. Section 35 of the CGST Act and “Accounts and Records” Rules (hereinafter referred to as rules) provide that every registered person shall keep and maintain all records at his principal place of business. It has cast the responsibility on the owner or operator of warehouse or go-down or any other place used for storage of goods and on every transporter to maintain specified ...
Tax Evasion & Tax Avoidance
Pritam Vats What many understood is that they believe that tax evasion is the same as tax avoidance. Therefore, both are termed as illegal practices of bringing wealth offshore for tax benefits – among others. Here's the whole truth: Tax evasion is not the same as tax avoidance. Tax evasion is illegal, but that's not the case with tax avoidance. Not only tax avoidance is legal, but it's also one of the methods that people do in their wealth building endeavors. In essence, tax evasion means that you're underpaying taxes deliberately, which makes your endeavor an illegal one. Tax avoidance, on the other hand, means that you're using legal ways to reduce your tax liabilities. But why knowing the difference matter? It's quite simple: Doing it in the right way can lower your taxes, but doing it in the wrong way can get you fined, even take you to prison. The Difference Between the two is quite simple. Tax Avoidance is taking benefits of government sancti...
UPDATE _ GST ENROLMENT
(Migration of Existing Registrants to GST) This is continuation of earlier updation on the subject vide which we had conveyed that the period for applying for enrolment under Goods & Service Tax (GST) by the units situated in Haryana, Delhi, Rajasthan and Uttar Pradesh is fixed from 16 th to 31 st of December, 2016. It was also conveyed that all the information/details of the assessee have been transferred from existing registration certificates to GST Portal, hence, it is hoped that you must have updated the A-1 Application. To assist for making applications online for seeking enrolment under GST System Portal i.e. www.gst.gov.in in using provisional ID and Password from 10:00AM to 5:00PM and for assistance for the same, we have decided to start the said work from 19.12.2016 i.e. coming Monday and till then it is hoped that some more instructions or information may be in pipe line. At the same time, we shall request your goodself to convey the date when you intend to ...