Technical Taxation Solution

Present high GST-slab of 18 per cent on service-sector is unreasonable for the honest tax-payers who bear an unreasonable tax-burden of total 48 per cent (30 per cent highest slab Income Tax and 18 per cent GST) in case those availing service do not pay GST. Such high net tax-burden tends for tax-evasion, an aspect for which drastic cut in Income tax was once done after recommendations of Raja Chelliah Committee. GST on service-sector can and should be brought down to 12 per cent slab by abolishing concept of Input-Tax-Credit in service-sector. Moreover, the scope of GST-network can be widened by making all those availing and providing service with annual Rs 10 lakhs or more to be compulsorily registered for GST and paying GST. Also it may be compulsory for all those availing service worth more than Rs 10 lakhs annually, to compulsory deposit GST at source at public-exchequers rather than routed through service-providers. Certificate of GST payment can then be provided to servic...

Touted as the first modern integrated check post in Tamil Nadu, the facility on NH5 near Gummidipoondi is all set for inauguration soon. The Rs 137-crore facility will house various departments for executing an integrated checking of vehicles entering the state from Andhra Pradesh. But, the check post is unlikely to yield significant revenue as the major revenue generator – commercial taxes department – has pulled out of the check post after the implementation of the GST. The 10-year-old project proposed in 2008 started taking shape after the state transport department sanctioned a total of Rs 109.46 crore for setting up the facility at Pethikuppam, about 60km north of the city in Tiruvallur district, in 2013. The plan was to accommodate seven departments, including revenue, police, prohibition and excise, civil supplies and consumer protection, besides commercial taxes in the check post such that an integrated checking can be carried out of vehicles coming from the neighbouring st...

This march ending is going to be very crucial because of changeover from old taxation system to GST regime. Apart from the normal year end practice few additional things will have to be kept in mind while filing the last returns and closing books of accounts. Refund of deposit: As all VAT registered assessees have migrated to GST, ensure that you claim the refund of security deposit of Rs 25,000 paid at the time of taking voluntary registration under Maharashtra Value Added Tax. Books of accounts: The books of accounts should be finalised for two different periods i.e April 1, 2017 to June 30, 2017 as per the VAT regime and July 1, 2017 to March 31, 2018 as per the GST regime. Transitional credit: a) Department is going to scrutinise all the cases of transitional credits of old taxes taken while migrating to GST regime. The assessee who has claimed transitional credit should keep ready following documents and records: Copy of six months returns (January 17-June 17), Copy ...

The Maharashtra State Goods and Services Tax (SGST) Department has started holding weekly meetings with the Federation of Indian Exporters (FEI) to address the problems faced by exporters under the GST regime. The first such meeting was held in Mumbai on Wednesday. “Nodal officers will meet members of FEI every week for the next few months to understand the problems faced by exporters, especially with regard to input tax credit (ITC) refund under the GST regime. Exporters are facing problems with regard to refund under GST and have submitted maximum refund applications in the country. Nodal officers can understand the issues which can be taken up with the Centre," commissioner, SGST, Mumbai, Rajiv Jalota said. Jalota was speaking on the sidelines of a GST open house organised at Mahratta Chamber of Commerce Industries and Agriculture on Friday. Several exporters raised issues pertaining to absence of rebate on exports under advance authorisation, registration requirements ...

The paperless assessment framework was introduced for the first time in the Finance Act 2016 with the object of ensuring issuance of notices in electronic form as well as conduct of tax hearing through communication of data in electronic format. This also gave birth to Income-Tax Business Application (ITBA) project, instrumental in supporting e-assessment initiative of the government. ITBA provides an integrated platform to conduct various tax proceedings electronically. Towards this end, the Central Board of Direct Taxes (CBDT) also formulated guidelines on what constitutes a valid email address to be used for communication by tax authorities, authentication of documents, format of communication that can be sent by tax authorities to tax payers and the maximum size of files that can be sent by tax payers via email, etc. Under the ITBA project, the process of electronic communication of documents is configured with the e-filing account of the assessee on the Income-tax e-filing webs...

Executive Summary Issue of tax rate on works contract has become an intricate issue in GST. The issue has become complicated as Para 6(a) of Schedule II of CGST Act states that composite supply of 'works contract' shall be treated as 'supply of services'. General rate of GST on composite supply of works contract services is 18%. If the plant or machinery or equipment or other material used in execution of works contract carries GST rate of 18%, the question of tax rate does not arise. However, if the plant or machinery or equipment or other material used in execution of works contract (where goods is principal supply) has GST rate of less than 18% (Nil, 5%, 12%) or more than 18% (28%), issue of rate of tax on works contract for GST becomes critical. In my view, works contract is a composite supply and tax rate will be on basis of principal supply. [Other view is that works contract has been defined as 'deemed supply of service' and tax rate should be 1...