Unmesh Mehta & Co. - Chartered Accountants

15/11/2020

26/10/2020

We are pleased to announce that our firm has completed 60 years of its professional journey on this auspicious day of Dussehra. To mark this occasion, we have launched our firm's website.

Do visit us at :

https://kkmehta.com/
https://ukmehta.com/

28/11/2016

The Government has announced an Income-Tax Amendment Bill which is in-fact equivalent to Income Disclosure Scheme Part-2 for bringing the present stock of Black Money (in form of 500 and 1000 Rs. notes) into the 'White-Economy' and to generate a considerable amount of Revenue for the Government. The main features of the scheme are given in the table below:

20/11/2016

Are you GST Ready?

GST is not only a new Tax Law, but is going to affect the way business is being done. Businesses will have to start gearing up for ‘The Transition’ from today if they want their ride to be smooth.
Among other things, businesses will have to consider the following aspects: -

1. The Impact of GST on the business operations.
2. Its Cost-structure and Pricing strategy.
3. Its Accounting and Information Systems for GST compliance.
4. The Design and Strategy of business processes.
5. Migration of Input Tax Credit.
6. Legal issues involved.
7. Review of Contracts.

GST will absorb many taxes like Excise duty, Service tax, VAT, CVD, SAD, Entry Tax, etc.

The Major shift in the principle of taxation is that under the old regime the point of taxation was either ‘Manufacture’ under the Excise Act, or ‘Sale’ under the VAT Act. But under the GST Law the point of Taxation is ‘Supply’. Further, under the VAT Law it is the Selling State which will earn the Tax Revenue, but under the GST Regime as it is a ‘Destination-based Tax’ it is the consuming state that will earn the Tax Revenue.

There are many benefits which will accrue on the implementation of GST some of which are: -
1. Cascading effect of Taxation will be abolished.
2. There will be a Single Point of Taxation.
3. Uniform Tax structure throughout the country.
4. No Tax distortion according to the territory.
5. Seamless credit across all Taxes.
6. Increase in Revenue of the Government.
7. GDP to increase by around 1%.
8. No need of separate compliance under separate laws.

The Government has come-out with multi-tier rate structure consisting of 0%, 5%, 12%, 18% and 28%.

About half of the products in Consumer Price Index basket such as food-grains are under the Nil rate category. While the items of mass-consumption are to be taxed at the rate of 5%. Most of the goods will be taxed at 12%, while some of the goods and all services will be taxed at the rate of 18%.

Some demerit goods will be taxed at a higher rate of 28%. Over and above this, some sin goods will attract cess resulting into an effective rate of more than 40%.

As per the opinion of Finance Minister Mr. Arun Jaitley, GST will reduce inflation instead of boosting it, as lower rate has been prescribed for many of the goods to protect people at the lower-end. Rate for Gold is yet to be decided.

The important point here is that there should not be any confusion as regards the classification of goods, otherwise, it would be difficult to identify which rate to apply to what item. Further, which items can be considered as ‘demerit’ is also a moot point, because many items which were considered a luxury before some years are considered as necessity at the present.

The item-wise rate exercise will not be an easy one, with each state pitching for favourable rate for some items.

Migration of registration from Gujarat VAT to GST network (GST Enrolment) has started from 15th November. In the next step, Service Tax and Excise registrations will be migrated.

09/11/2016

*Demonetization of 500 and 1000 Currency Notes*

The Government has decided to cancel the ‘Legal Tender’ character of existing high-denomination bank notes of Rs. 500 and Rs. 1000 from 9/11/2016. The following are the key-highlights of the changed situation: -

a) Old notes can be deposited into the bank account or exchanged in banks and post-office till 30/12/2016, and thereafter in RBI offices till 31/03/2017. However, up to 24th November there is a limit of Rs. 4000 on exchanging old notes. The exchange can be made provided a requisition slip with proof of identity is presented. After 24th November, there will be a review about the upper limit of exchange.

b) There is no limit of quantity or value of notes to be credited to the bank account of the tenderer. However, where the account is not KYC compliant, maximum Rs. 50,000 can be deposited. The depositor will have to present proof of identity. The old notes can also be credited to a third-party account, provided specific authorisation is given by the said account-holder with proof of identity of the person actually tendering the notes. Thus, those having legitimate cash on hand recorded in the books of accounts do not have to worry as they can deposit the legitimate cash without any limits in their bank accounts.

c) ATMs will remain closed on 9th November and in some places, even on 10th November. Withdrawal from ATM would be restricted to Rs. 2,000 per day per card up to 18th November and the limit will be raised to Rs. 4,000 per day per card from 19th November. Banks will remain closed on 9th November.

d) For the first 3 days, i.e. from 9th to 11th November, old notes will be continued to be accepted by railways, Government hospitals, public transportation buses, airports and airlines, milk booth, petrol stations, etc.

e) Cash withdrawals across the counter in banks would be restricted to Rs. 10,000 per transaction and Rs. 20,000 per week till 24th November.

f) Transactions through banking channels other than cash like through cheque/DD, Credit/Debit cards, NEFT, RTGS are allowed without any restrictions.



The above is based on the press-release issued by the Government of India, the relevant notification is available on the web-site: - http://finmin.nic.in


It should also be borne in mind that for any sale of goods or services above Rs. 2 lacs, PAN of the purchaser is mandatory to be quoted on all invoices. Further, any sale consideration received in cash in excess of Rs. 2 lacs in a year from a person need to be reported to Income Tax Dept. in Form 61A. Further, in case of cash sale of more than 2 lacs, TCS provisions are also applicable for sale in cash