Y S Rao & Co

24/11/2018

01/11/2018

Celebrate the magic and joys of Diwali

25/01/2018

It is advised that you may ascertain your tax liability for AY 2017-18 (Financial Year 2016-17) and file your Income Tax Return (ITR) without any further delay.

Last date to file your return for AY 2017-18 is 31st March 2018. However, you are advised to file the Income Tax Return much before the last date to avoid last minute rush.

Please note that the law has changed and ITR for AY 2017-18 CANNOT be filed beyond 31st March 2018 (Online).

After 31st, you can file only against notice sent by IT department.

17/08/2017

*Frequently Asked Questions (FAQs) on GSTR-3B:*

*Q1: Why am I supposed to fill GSTR-3B?*

A: GSTR-3B is to be filed in lieu of GSTR-3. Here it has been notified as of now that GTSR-3B has to be filed for the month of JUL & AUG. GSTR-3B has to be most probably filed in those cases where GSTR3 cannot be filed.

*Q2: In the previous answer it is mentioned GSTR-3B has to be filed where GSTR-3 cannot be filed, what does that mean?*

A: For the months of JUL & AUG, GSTR-1 & GSTR-2 are not to be filed within the originally prescribed time and thus GSTR-3 will not be formed because it is the auto-populated form and thus GSTR-3B comes into scenario.

*Q3: In what manner data has to be provided in GSTR-3B?*

A: Data in GSTR-3B has to be provided in a consolidated manner i.e. the consolidated amount in respect of information asked has to be furnished. Invoice wise information has not to be furnished. So, taxpayer will be required to consolidate their sales and purchase data for the month for the purpose of filing GSTR-3B.

*Q4: Is GSTR-3B the only return which has to be filed for the month of July and August?*

A- No, GSTR-1, GSTR-2 and GSTR-3 for the month of JUL & AUG are to be filed in SEP. GSTR-3B is the consolidated return form being filed for temporary purpose and proper returns has to be filed for both the months.

*Q5: There is no field for credit note, debit note, advances received etc. then how the data regarding that has to be filled?*

A: In GSTR-3B data has to be filed as net amount i.e. Value of Taxable Supplies = Value of invoices + value of Debit Notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices. So, suppose if any invoice is issued and further in respect of that invoice other documents like Credit Note, Debit Note, Etc. are issued then the impact of those further issued documents has to be adjusted against the amount of invoice and net amount has to be uploaded.

*Q6: There is amendment in any invoice, how will it be shown?*

A: As per instruction in regard to GSTR-3B any amendment in invoice issued has to be adjusted against the invoice amount and the net adjusted amount has to be shown and no amendment will be shown separately.

*Q7: How can I file GSTR-3B?*

A: GSTR-3B can be filed by logging-on to GSTN common portal and now you can also file the same through ASP/GSP if you have availed that service for your organization.

*Q8: If I missed due date, Whether the penalty of Rs.100/- per day or maximum upto Rs.5,000/- will be levied?*

A: Earlier there had been a press note for non-levy of any penalty but this has not notified yet.

01/04/2017

Wish you happy financial year

Kindly make note of the following changes in IT law that come into effect from 1-4-2017 -

(1) Limit for payment of expenses by cash (both, capital and revenue expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person. Capital expenses paid in cash beyond the said limit will not be taken into account for depreciation purposes. However, the cash payment limit for lorry fright etc. remains the same at Rs.35000.

(2) No person shall receive an amount of two lakh rupees or more, by cash (Sec. 269ST) —
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion.
The penalty for violation of above is to be a sum equal to the amount of such receipt.

Examples for above -

👉 i) If one sells goods worth Rs. 300000 through three different bills of Rs.100000 each to one person and accepts *cash in single day* at different times then section 269ST(a) will get violated.

👉 ii) If one sells goods worth Rs. 300000 through *single bill* to another person and receives cash of Rs.150000 on day 1 and another Rs.150000 on day 2 then section 269ST(b) will get violated, since it pertains to single transaction.

👉 iii) If one accepts cash of Rs.180000 for *sales* and Rs.20000 for *freight charges*, then section 269ST(c) will get violated even if cash is accepted on different dates, since they pertain to a single sales event.

👉 iv) If one sells his car for Rs.300000 and receives the amount in cash, then penalty levied on him will be Rs.300000.

(2A) In view of the newly introduced above said penal provisions relating to cash sales, the existing provisions (in vogue from 1.6.2016) relating to collection of TCS @ 1% on cash sales exceeding Rs.2 lakhs (Rs.5 lakhs, in the case of jewellery) are deleted. Consequently, there is no need to collect TCS on cash sales exceeding Rs.2 lakhs. Straight away it will attract equal amount penalty now.

(3) For below Rs.2 crores turnover cases -
👉 For Non Cash Sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover/Gross Receipt.
👉 For Cash Sales : Net Profit will be taken as 8% of Turnover/Gross Receipt.

(4) Tax Exemption limit is Rs.2,50,000/- (same as earlier) -
👉 After that, upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%). Tax rebate of maximum Rs.2500 will be allowed, for total income upto Rs.3.50 lakhs.
👉 Individuals having total income exceeding Rs.50 lakhs but below Rs.1 crore, are to pay surcharge @ 10% of the tax. Those having total income exceeding Rs. 1 crore shall continue to pay surcharge @ 15%.

(5) Payment of Rent - Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) - deduct TDS @ 5%.

(6) Capital Gain in respect of Land & Buildings -
– Periodicity for long term Capital Gain is reduced from 3 years to 2 years.
– Base year shifted from 01.04.1981 to 01.04.2001 for all assets including Immovable property.

(7) Corporate tax 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%.

(8) Donations made exceeding Rs.2000 will be not be eligible for deduction under section 80G, unless these are made using modes other than cash. Consequently, trusts accepting 80G donations may advise their donors to give donations exceeding Rs.2000 vide cheque / RTGS / digital modes.

(9) Sale of unquoted shares to be taxed at (deemed) fair value.

(10) In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.

(11) From financial year 2017-18, if Return is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.

(12) Every person who is eligible to obtain AADHAR number, should quote such number, on or after 1 July 2017, in the Return of income. Furthermore, every person who has been allotted PAN as on 1st July 2017 must intimate the AADHAR number to the Tax Authority, failing which, PAN allotted to such person shall be deemed to be invalid. Kindly note that linking of AADHAR with PAN is not possible, unless name as per AADHAR and PAN match perfectly. Hence, please take steps to rectify your name as per AADHAR to match as per PAN.

(13) Where Sec.12AA registered trusts modify their objects clause, they need to apply within 30 days to CIT for approval of the modified clauses.

05/03/2017

26 days left to file income tax return for the financial year 2014-15(assessment year 2015-16) with late filing penal interest.

Assessees are advised to file their income tax returns for both Financial years 2014-15 and 2015-16 as, for the returns filed after 1st April 2017 new concealment penalty provision 270A may atrract instead of 271(1)(C), where former 270A is more stringent than later.

Please consult your auditors, Chartered accountants asap for more details.

05/03/2017

05/03/2017

All those who are owning companies, pls file annual returns immediately for the earlier years too. MCA started sending notices. So u ll be attracted to penalty plus this non filing of returns is being sync with one data base and using at various places. Ex - Visa is rejected becoZ of non filing of annual returns. Ya. It has happened

05/03/2017

*04-March-2017* 17:50 IST

Press Information Bureau
Government of India
Ministry of Finance

*Goods and Services Tax* (GST) Council approves the Central Goods and Services Tax (CGST) Bill andthe Integrated Goods and Services Tax (IGST) Bill.

Some of the *main features* of the two Bills, as finalized by the GST Council, are as follows:

i. A State-wise single registration for a taxpayer forfiling returns, paying taxes,and to fulfilother compliance requirements. Most of the compliance requirements would be fulfilled
online, thus leaving very little room for physical interface between the taxpayer and the taxofficial.

ii. A taxpayer has to file one single return state-wise to report all his supplies, whether madewithin or outside the State or exported out of the country and pay the applicable taxes on them.
Such taxescan be Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST),Union Territory Goods and Services Tax (UTGST) and Integrated Goods and Services Tax (IGST).

iii. A business entity with an annual turnover of upto Rs. 20 lakhs would not be required totake registration in the GST regime, unless he voluntarily chooses to do so to be a part of theinput tax credit (ITC) chain. The annual turnover threshold in the Special Category States (as
enumerated in Article 279A of the Constitution such as Arunachal Pradesh, Sikkim,Uttarakhand, Himachal Pradesh, Assam and the other States of the North-East) for not takingregistration is Rs. 10 lakhs.

iv. A business entity with turnover upto Rs. 50 lakhs can avail the benefit of a compositionscheme under which it has to pay a much lower rate of tax and has to fulfil very minimalcompliance requirements. The Composition Scheme is available for all traders, select
manufacturing sectors and for restaurants in the services sector.

v. In order to prevent cascading of taxes, ITC would be admissible on all goods and servicesused in the course or furtherance of business, except on a few items listed in the Law.

vi. In order to ensure that ITC can be used seamlessly for payment of taxes under the Centraland the State Law, it has been provided that the ITC entitlement arising out of taxes paid underthe Central Law can be cross-utilised for payment of taxes under the laws of the States or UnionTerritories. For example, a taxpayer can use the ITC accruing to him due to payment of IGST todischarge his tax liability of CGST / SGST / UTGST. Conversely, a taxpayer can use the ITC
accruing to him on account of payment of CGST / SGST / UTGST, for payment of IGST. Suchpayments are to be made in a pre-defined order.

vii. In the Services sector, the existing mechanism of Input Service Distributor (ISD) under theService Tax law has been retained to allow the flow of ITC in respect of input serviceswithin alegal entity.

viii. To prevent lock-in of capital of exporters, a provision has been made to refund, withinseven days of filing the application for refund by an exporter, ninety percent of the claimedamount on a provisional basis.

ix. In order to ensure a single administrative interface for taxpayers, a provision has beenmade to authorise officers of the tax administrations of the Centre and the States to exercise the
powers conferred under all Acts.

x. An agriculturist, to the extent of supply of produce out of cultivation of land, would not beliable to take registration in the GST regime.