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GST Council on 10th January 2019 has taken some major decisions keeping MSME and small traders in mind.

Following are the key decision taken at the 32nd GST Council meeting: 

  • Increa...

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To boost the residential segment of the real estate sector which was hoping for a reduction in GST rates for under construction houses, the following recommendations were made by the GST Council in its 33rd meeting:

Background: Real estate is o...

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This article is an attempt to explain in brief about Composition Scheme, considering the recent changes recommended by the GST council in its last meeting.

Composition levy (Section 10) 

The composition levy is des...

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Taxation of shares & securities is considered one of the most complicated & confusing topics for most of the taxpayers. In this article, we are going to understand the income tax treatment of Future and Options.

In the taxation of shares and securi...

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Meaning of Job Work:

The definition of job work has been defined in section 2(68) of CGST Act, 2017.

"Job work means any treatment or process undertaken by a person on goods belonging to another registered person."

In Job work,...

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<blockquote>Vide RBI Circular No. 40 dated 1<sup>st</sup> February, 2016; RBI has made it mandatory to report any transactions and filing of forms online in respect of issue and transfer of shares from an Indian Entity to outside India, with effect from 8<sup...

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Who is liable to pay advance tax under the Income Tax Act, 1961?
 All assesses are required to pay advance tax where the advance tax payable is Rs. 10,000 or more.

 How is Advance Tax calculated?
 It is calculated on Net Taxable Income after taking into a...

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An assesses liable to pay advance tax has to keep in mind the due dates applicable::
Due Dates Assesses Individual/ Non Corporate Corporate by 15th June - not less than 15% of Tax Payable by 15th Sept not less than 30% of Tax Payable not less than 45% of...

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"Income from House Property" is one of the five sources of income on which an assessee is chargeable to tax. With respect to the Chargeability Section 22 of Income Tax Act, there are certain conditions to be met for basis of tax on rental income. These are: The property should co...

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In view of the Sixth Pay Commission recommendations implemented by the Government, government employees have received salary arrears of past financial years. However, it is generally a matter of great confusion to such employees regarding how tax on arrears will be computed. This arti...

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Service tax is an indirect tax levied by service provider on the service recipient. The service provider collects service tax on bills raised on the service recipient and deposits it into the Gover...

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Payment of Service Tax under Reverse Charge Mechanism: Where Service tax is payable under Reverse Charge Mechanism, it is to be paid by Cash only. Thus benefit of Cenvat credit cannot be availed of in such a case. But any Service Recipient so liable to pay service tax in the above ...

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One of the oft repeated queries that I receive from clients is related to the tax and other government compliances affecting a person working as a freelancer in the fields of Engineering consultancy, IT consultancy, IT education and training etc. If you are a freelancer and cater to b...

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Service tax is an indirect tax levied on certain taxable services provided by service provider to service...

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W.E.F. from F.Y. 2012-13, following persons have to file returns electronically: (Vide Notification No. 34/2013, dated 01.05.2013) Every person (not being a company or person filing ITR...

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If you are a self employed businessman or professional or even a salaried person not in receipt of HRA, and paying high rentals for your residence, find out how you can still claim tax deductions on those monthly rentals and reduce your tax burden. U/S 80GG of Income Tax Act, an as...

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Selling off land or building or flat? Understand what the implications of a higher stamp duty valuation of your property can mean for you - the seller. First step, lets analyse the existing provisions of Sec. 50C with regard to sale of land or building or flat. Section 50C state...

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Where immovable property held as a Capital asset is transferred, provisions of Sec. 50C come into play. For more on that, refer to myread more

There are multitude compliances required of Private limited Companies (SMEs) at all stages of its existence. These range from MCA21 ROC compliances, Income Tax, Service Tax/ VAT/ Sales Tax compliances, IEC codes, Audit and accounts and general statutory law compliances. A ready reckon...

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OTHER STATUTORY COMPLIANCES FOR STARTING A BUSINESS - PRIVATE LIMITED COMPANY ARE MENTIONED HERE. FOR BUSINESS INCORPORATION DETAILS, CLICK HERE. Step 2. Obtaining a ...

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Step 1. Registration on ACES: a) The user shall first log onto the site www.aces.gov.in and select “Service Tax” option on the left side of the screen. b) He shall then register himself ...

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Following up on the last 2 articles where I have detailed the Incorporation formalities required for private limited companies (Article 1, read more

TDS is one of the modes of collection of taxes, by which a certain percentage of taxable amount is deducted by a person at the time of making/crediting certain specific nature of payment to the other person. This deducted amount is then remitted to the Government account. It is also k...

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MAT stands for Minimum Alternate Tax and it is applicable on Indian companies. The important points relating to it are: [su_list icon="icon: arrow-circle-right"] MAT is applicable on both Indian and foreign companies. MAT is applicable on both private and public limited co...

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Profession Tax is levied on the Income of a person earned by way of profession, trade, calling and/or employment even though the tax payer may already be paying Income tax. The difference between Income tax and Profession tax is that Profession tax is levied and collected by the State...

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Where a NRI is interested in investing in or selling off real estate in India, he is governed by the Foreign Exchange Management Act (FEMA) and the Indian Tax Act. This articles covers all the factors governing taxation (income tax, wealth tax andamp; TDS) of real estate w.r.t. an NRI...

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Understand the definition of NRI and PIO in this article and the rules applicable to them with respect to Indian Tax system and Bank accounts. [su_spoiler title="Who is a NRI?" style="fancy"] An NRI is an Indian citizen who stays outside India. For purposes of carrying out emplo...

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The filing fees for Incorporating a Company with share capital in India is dependent on the proposed authorised capital of the new company. The below table explains the fees at different levels of share capital: Authorised Capital (Rs.) Memorandum of Association (Rs). ...

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The basics of Tax Deduction and Collection Account Number with respect to Income Tax are explained in this article. What is TAN? TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsib...

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What is PAN and its utility? Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any "person" who applies for it or to whom the department allots the number without an application. PAN enable...

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Section Nature of Default Basis of Charge Quantum of penalty 221(1) Failure to pay tax; i.e., non-payment of tax required by notice u/s. 156. -- Amount of tax in arrears 271(1)(b) Non-compliance with notice u/s. 142(1) to file returns or to produce documen...

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Comprehensive list of depreciation rates on block of assets as applicable to companies while filing Income Tax Returns. andnbsp; Block Nature of Asset Rate ofDepreciation Building Block-1 Residential building other than hotels and boarding houses...

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The first exercise in undertaking financial planning is preparing a monthly budget to understand your cash inflows and outflows in the household. Today we are going to talk about how to prepare a monthly budget. Tools required are an excel sheet on computer/laptop or simply a pen a...

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The Honorable Finance Minister Arun Jaitley's maiden budget has presented a mixed bag of news for start ups operating in India. Most of these aspects affecting Indian businesses are highlighted below: The good news first: A Rs 10,000 crore fund will be set up to act as a catal...

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These are the major highlights of changes in individual taxation from FY 2014-15 post the 2014 Budget that can affect your Household budget and Savings: 1. Changes in Tax exemption slabs a) For resident individuals (males and females) - exemption limit has been increased to Rs. ...

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One of the most significant ways of saving income-tax for an Individual is to form a separate tax entity in the name of an Hindu Undivided Family. HUF is a separate tax entity in the eyes of law with a separate PAN card and subject to same income tax slabs, exemptions and deductions ...

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A list of tax benefits a HUF can claim are: Tax Deductions under Chapter VI-A:: 1) Deduction u/s 80C:: A HUF can claim tax deduction by (a) taking out Life Insurance Policies/ ULIPs in the name of its members and make payment of the premium (b) contributing to the PPF acco...

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If properly planned, capital can be created in a HUF without attracting any tax provisions. The popular methods of doing this are: 1. Gifts from Relatives from members of HUF: U/S 56(ii) of I.T. Act, 1961, gifts received from relatives of members of the HUF are fully exempt from...

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A HUF can earn income from all sources except Salary. It can enter into any business/ profession and even enter into a partnership business with any other individual. HUF can invest in shares and mutual funds. Any dividend income accruing from such shares or Long-term Capital...

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In case a freelancer has been providing services to companies/ clients situated outside India, there is no service tax liability attracted as such services are deemed to be export of services. What is Export of Services? The word of law ( Rule 6A of Service Tax Rules) states tha...

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Vide Notification No. 14/2015, the new service tax rate of 14% will be applicable from 1st June 2015 . How will this affect companies billing their clients during the month of May? There are three parameters here which have to be taken into...

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The Ministry of Finance has issued a press release dated 31.-05.2015 stating that Income Tax Return Forms ITR 1, 2 and 4S have been simplified for convenience of the tax payers. A number of controversial topics such as the requirement to give details of foreign trips or expenditure th...

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We are starting an easy-to-understand series on topics related to GST, which is due to be applicable in India from 1.4.2016. What is GST ? “Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale, and consumption of goods and services at a...

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The introduction of GST will replace the various taxes presently being levied by Central andamp; State Government(s). The following taxes levied by Central government will be subsumed: i) Central Excise Duty ii) Additional Excise Duty (Goods of Special Importance) iii )Add...

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According to the GST bill, there will be a dual GST model and the taxes will be levied on each kind of transaction. SGST – State GST, levied and collected by the State Govt. CGST – Central GST , levied and collected by the Central Govt. IGST – Integrated GST, collected by the...

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GST is applicable on the supply of goods or services. It will apply to all taxable supplies of goods or services (as against manufacture, sale or provision of Service) made for a consideration except – Exempted goods or services – there will be a common list for CGST and...

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Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of SGST paid on inputs may be used only for paying SGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilised, except in specified circumstances of inter-State sup...

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Features and impact of current system with an ideal GST regime andnbsp; Current regime of indirect taxes An ideal GST structure Features Goods and services taxed separately* No differentiation between a good and a service;...

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Following are the 9 pillars of this Budget: a. Agriculture and farmers welfare b. Rural employment and infrastructure — Digital Literacy mission scheme to cover over 6 crore households — Revamp of National Land records programme and to be implemented as a Central sche...

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1. Relief to small tax payers (a) Rebate under Sec 87A: With the objective of providing relief to resident individuals in the lower income slab i.e. total income not exceeding Rs. 5,00,000, section 87A is proposed to be amended so as to increase the maximum amount of rebat...

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1. Increase in Surcharge Surcharge is increased from 12% to 15% in case of non‐resident individuals 2. Exemption in respect of certain activity related to diamond trading in “Special Notified Zone”. ‐Exemption u/s 9(1)(i) to Foreign Mining Companies through or ...

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Certain forms have been prescribed under CST which are used for different purposes. Form C is used for making interstate purchase at lower rate, Form F is used for transferring goods from one branch to another in different state and Forms E1 and E2 are used for interstate sale or purc...

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Central Sales Tax (CST) is a tax on sales of goods levied by the Central Government of India. CST is applicable only in the case of inter-state sales and not on sales made within the state or import/export of sales. Inter-state sale is when a sale or purchase constitutes move...

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What are the benefits available to senior and very senior citizens? Senior citizens and a very senior citizen are granted a higher exemption limit as compared to normal tax payers. Exemption limit is the quantum of income up to which a person is not liable to pay tax. The exemp...

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---- New manufacturing companies incorporated on or after March 1, 2016 have been provided with an option either to adopt a reduced corporate tax of 27.55% (where the income exceeds Rs 1 crore but does not exceed Rs 10 crore) or 28.84% (where income exceeds Rs 10 crore); provided such...

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The Finance Minister, in his budget speech, has proposed many incentives to encourage entrepreneurship in India. Some of the tax measures which will be beneficial for new start-ups are as follows- 1. Optional lower tax rate for newly setup manufacturing companies: In case ...

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A private trust is an effective estate planning tool used to resolve many tricky situations such as: providing for the future needs of a special child, protect an estate or carry forward business to next generation. Although there is a lot of consideration before a private tr...

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India is the fastest growing and Third Largest Startup Ecosystem Globally as per NASSCOM status report 2014 and is set to become a multi billion dollar industry. Hence, it was imperative to develop a conducive environment for inflow of funds coupled with ensuring ease of doing busines...

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[et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid"] The Modi Government's surgical strike on b...

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A separate code on transfer pricing under Sections 92 to 92F of the Indian Income Tax Act, 1961 (the Act) covers intra-group cross-border transactions which is applicable from 1 April 2001 and specified domestic transactions which is applicable from 1 April 2012. Since the introductio...

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ESOPS are basically rights given to employees of a company. These rights pertain to buying shares of the company at a fixed price on the date of the grant. ESOPs can be in the form of Stock Option Plans, Phantom Equity Plans and Stock Purchase Plans. ESOPs are the best and most frequ...

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There are different forms of business entities that you can set up in India. A brief description of each along with their main features have been given below. Sole Proprietorship :

  • The sole proprietorship is the simplest business form under which one can operate a business...

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    The RBI has laid down FEMA regulations for regulating how FDI flows in India and the procedure to be followed for their compliance. There are two procedures for receiving Foreign Direct investment in an Indian Co. - the Automatic and the Government Route. Automatic route

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    The Benami Transactions Act, 2016 has recently been passed by the government. Read further to understand the provisions of the act. What is Benami Property? Benami essentially means property without a name. In this kind of transaction the person who pays for the property does n...

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    Brief Guidelines of FEMA with respect to Foreign Loan availability for Indian Corporates, along with restrictions as prescribed by RBI have been laid down below Borrowings in Foreign Exchange External Commercial Borrowings Trade Credit Particulars Aut...

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    As a last resort measure for black money hoarders to come clean and pay a lesser amount of tax, the government has introduced the ‘Taxation andamp; Investment Regime for Pradhan Mantri Garib Kalyan Yojana 2016’ under the ‘The Taxation Laws (Second Amendment) Bill, 2016’. The mai...

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    As per the Income-tax Act, a person engaged in business or profession is required to maintain regular books of account and further, he has to get his accounts audited. To give relief to small taxpayers from this tedious work, the Income-tax Act has framed the Presumptive taxation s...

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    Section 44ADA is the newly inserted section and it will take effect from 1st April, 2017. It will apply in relation to the assessment year 2017- 2018 and subsequent years. For whom is the presumptive taxation scheme of section 44ADA designed? It is designed to give relief to ...

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    The scheme of section 44AE is designed to give relief to small taxpayers engaged in the business of plying, hiring or leasing of goods carriages. Eligible taxpayer and eligible business for the purpose of the presumptive taxation scheme of section 44AE Every person (i.e., an i...

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    Rule 114E of Income-Tax Rules, 1962, for furnishing Statement of Financial Transactions (SFT) came into force with effect from 1st April, 2016 and it specifies additional statement to be filed by certain classes of persons as explained in below table. Any person who is liable for a...

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    Section-455 of Companies Act, 2013 has introduced the concept of “DORMANT COMPANY” or "ASSET SHIELDING CONCEPT". A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. ...

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    Amid steps of the Modi government to crackdown on 'Black Money', the 28 yr old law of Benami Transactions (Prohibition) Amendment Act was amended in July 2016. The amended act came into effect from 1st November, 2016. What is Benami? Benami in Hindi means without name. This Act ...

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    The Modi government is now linking all taxpayers under Income Tax and GST. Details filed in GST returns are also to be reflected in Income Tax Returns. Whatever GST details are given in ITR forms will be cross checked by the Income Tax Department. Hence, taxpayers should start reconci...

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    Department of Industrial Policy and Promotion (DIPP), under the Union Ministry for Commerce and Industry, has come out with a new notification on the definition of start-ups According to the notification, an entity shall be considered as a start-up up to a period of seven years fro...

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    Registration under the GST Every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turnover in a financial year exceeds the threshold limit of twenty lakh rupees shall be ...

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    Income tax implications for the beneficial owner When any consideration for purchase of a property is paid by a person, who does not want to show his identity and hence, makes such investments in someone else’s name and the funds used for such investments are not from the known sourc...

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