Unicorn Financial Services

Who needs to be registered under GST regime?

The provisions related to registration are provided under Chapter VI of Goods and Services Tax Law 2016 (hereinafter referred as An Act). According to Section 19, every person who is registered or holds a registration certificate under Central Excise law, Service tax law, Central Sales tax or under State VAT law shall be liable to be registered under this Act with effect from date of enactment of this Act.

In Case of a person who is not registered under any of the above act shall be liable to be registered under this act if his turnover in financial year exceeds the taxable threshold. The threshold limit of turnover for the purpose of registration is kept Rs. 4 Lakhs for North East States including Sikkim and Rs 9 Lakhs for other States.

For this purpose turnover means all India Gross Annual turnover including turnover of exempted goods, exempted services and exports. So if any person is doing the business from more than one location, turnover of all such units shall be considered for this purpose.

It may be noted that if a person having turnover below threshold limit but wants to get registered under GST act can apply voluntarily for the same under section 19(3).

*New online PAN application facility has been launched for PAN applicants with an option of paperless submission* of application using Aadhaar based e-Sign
Applicant can select any one of the following three options while filling online PAN application “ Physical acknowledgement, Digital Signature Certificate (DSC) or Aadhaar based e-Sign. In DSC option, an applicant needs to upload scanned images (as per defined parameters) of photo, signature and supporting documents while making application. In Aadhaar based e-Sign option, Aadhaar would be considered as supporting document and the photograph used in Aadhaar card would be used in PAN card as well.
In case Aadhaar number of Individual applicant is entered in the application form, then proof of Aadhaar along with supporting documents is to be submitted to NSDL e-Gov. If copy of Aadhaar is selected as Proof of Identity/Address/date of birth, then it is mandatory to enter Aadhaar number. In case applicant is MINOR, Aadhaar of minor should be mentioned in the application form. (i.e. Do not mention Representative Assessee’s Aadhaar number) Aadhaar number (if provided) would be authenticated using applicants details as mentioned in application form.
In case, AADHAAR is mentioned in the application (applicable for Individuals only), then the copy of AADHAAR allotment letter should also be enclosed along with the acknowledgement.

Things needs to understand by an NRI before filing Income Tax Return.

The income that NRI earn abroad is not taxable in India. Nevertheless, some NRI's also have an earning in their root country, India in the form of interest from deposits, property rent, etc. This income has a basic limit of exemption, which is Rs2.5 lacs. If the NRI earnings from such native sources cross the fixed limit of 2.5 lacs, then they should file their tax return.
In addition to the income sources mentioned above, if these NRIs carry out transactions in shares, mutual funds and/or similar securities, the monetary gains from the same are also tax accountable, for which they are supposed to file returns. The due date for this, only in case of NRIs, is July 31.
However, there are certain things that NRIs filing returns must take into consideration. By considering the following practical scenarios, one can ease out his/her tax-return filing process in India.

--> When should an NRI file for the return?
There are three major criteria for filing the return. These include if their income from the country exceeds the maximum limit permissible as basic exemption, or it can be filed to claim a return if the deducted tax is more than what was payable. To settle the claims for the amount set off as capital losses, one should file his returns.

--> What all documents do you need as a non-resident Indian?
The documents that one should submit include their passport of the residence country. This shows the total number of days spent outside India for them to qualify as a non-resident Indian. Apart from this, they should provide their de-mat account statements, and the TDS certificates they received from other parties. The statements for de-mat accounts are required for the knowledge of their bank accounts and transactions held in India.

--> What are the exemptions and the deductions for which you are eligible?
There are certain exemptions in India by which an individual can reduce his/her taxable income. These include certain investments, payment of the principal amount of the housing loan, etc. These exemptions are applicable to NRIs as well. Therefore, for those exemptions that are applicable, the NRIs can claim the same under the Income Tax [Chapter VI- A deductions].There are certain deductions that are specifically not applicable to NRIs. Firstly, NRIs do not benefit from differential exemption limits, based on age and gender. Secondly, NRI’s short-term or long-term capital gains from their investment sale in India, is also not included under tax exemption.

--> What should you do to claim a refund?
To expect a refund from your filed tax return, you should ensure to put the exact bank details, which includes your account number and the branch IFSC code. In case of an online filing of returns, the processing of your refund happens electronically. Therefore, precise bank account details are always helpful.

--> What are the alternatives available to file returns?
The NRIs can file their return online via the Income Tax Department’s e-filing portal. Alternative to this, they may also use other ways to do the same. This includes taking the help of tax advisors, or by using other private and paid e-filing portals for getting their purpose served.

Points to remember :
NRI, whose total income during the concerned financial year comprises only of investment earnings and/or long-term capital gains, should not necessarily file the returns. Apart from this, if the tax deduction has already taken place at the income source, then too the non-resident Indian may not file the tax return.

Things needs to understand by an NRI before filing Income Tax Return.
The income that NRI earn abroad is not taxable in India. Nevertheless, some NRI's also have an earning in their root country, India in the form of interest from deposits, property rent, etc. This income has a basic limit of exemption, which is Rs2.5 lacs. If the NRI earnings from such native sources cross the fixed limit of 2.5 lacs, then they should file their tax return.
In addition to the income sources mentioned above, if these NRIs carry out transactions in shares, mutual funds and/or similar securities, the monetary gains from the same are also tax accountable, for which they are supposed to file returns. The due date for this, only in case of NRIs, is July 31.
However, there are certain things that NRIs filing returns must take into consideration. By considering the following practical scenarios, one can ease out his/her tax-return filing process in India.
--> When should an NRI file for the return?
There are three major criteria for filing the return. These include if their income from the country exceeds the maximum limit permissible as basic exemption, or it can be filed to claim a return if the deducted tax is more than what was payable. To settle the claims for the amount set off as capital losses, one should file his returns.
--> What all documents do you need as a non-resident Indian?
The documents that one should submit include their passport of the residence country. This shows the total number of days spent outside India for them to qualify as a non-resident Indian. Apart from this, they should provide their de-mat account statements, and the TDS certificates they received from other parties. The statements for de-mat accounts are required for the knowledge of their bank accounts and transactions held in India.
--> What are the exemptions and the deductions for which you are eligible?
There are certain exemptions in India by which an individual can reduce his/her taxable income. These include certain investments, payment of the principal amount of the housing loan, etc. These exemptions are applicable to NRIs as well. Therefore, for those exemptions that are applicable, the NRIs can claim the same under the Income Tax [Chapter VI- A deductions].There are certain deductions that are specifically not applicable to NRIs. Firstly, NRIs do not benefit from differential exemption limits, based on age and gender. Secondly, NRI’s short-term or long-term capital gains from their investment sale in India, is also not included under tax exemption.
--> What should you do to claim a refund?
To expect a refund from your filed tax return, you should ensure to put the exact bank details, which includes your account number and the branch IFSC code. In case of an online filing of returns, the processing of your refund happens electronically. Therefore, precise bank account details are always helpful.
--> What are the alternatives available to file returns?
The NRIs can file their return online via the Income Tax Department’s e-filing portal. Alternative to this, they may also use other ways to do the same. This includes taking the help of tax advisors, or by using other private and paid e-filing portals for getting their purpose served.
Points to remember :
NRI, whose total income during the concerned financial year comprises only of investment earnings and/or long-term capital gains, should not necessarily file the returns. Apart from this, if the tax deduction has already taken place at the income source, then too the non-resident Indian may not file the tax return.

PROFESSIONAL WORK UNDERTAKEN :
INDIAN ACCOUNTS AND TAXATION :
• ACCOUNTING WORK
• INTERNAL AUDIT OF FIRMS & COMPANY
• FINANCIAL TAX PLANNING & ADVICE
• INCOME TAX / VAT /SERVICE TAX
• E-FILING OF ALL IT RETURNS
• BUDGETING & MIS REPORTING STRUCTURE
• PROCESS IMPROVEMENT / COST REDUCTION
• OUTSOURCING ACCOUNTS AND TAXATION WORK
• START UP CONSULTANCY

BUSINESS FINANCE :
• LOANS FOR BUSINESS, CONSTRUCTION, MORTGAGE AND HOUSING
• DETAILED PROJECT REPORT
• CMA DATA

REGISTRATION :
• COMPANY FORMATION
• PARTNERSHIP AGREEMENT
• TAN / PAN / DIN REGISTRATION
• IMPORT EXPORT CODE

BACK OFFICE WORK OF US ACCOUNTING AND TAXATION.
COMPANY INCORPORATION SERVICES FOR DUBAI.

UNICORN FINANCIAL SERVICES - INDIA
Email : [email protected]

Importance of 26AS Report, information on Basic exemptions to assessee, additional surcharge if income exceeds Rs.1cr, and taxes on companies.

-> Every Taxpayer should verify his Form 26AS.
-> Form 26AS provides the Information regarding the TDS, Advance Tax paid and details of refund.
-> Notice may be sent to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return filed is having difference.
-> Basic Exemption Limit for individuals for F. Y. 2015-16 is Rs.2,50,000.
-> Basic Exemption Limit for Senior Citizen i.e. above 60 years age is Rs.3,00,000.
-> Basic Exemption Limit for Super Senior Citizen i.e. above 80 years age is Rs.5,00,000.
-> If taxable income of Individual is less than Rs. 5 Lakhs then relief of Rs. 2,000/- is available in Tax.
-> Advance Tax is to be paid if Tax Liability during the year exceeds Rs.10,000 otherwise interest will be applicable.
-> 12% of Surcharge is applicable if Income Exceeds Rs.1 Crore.
-> Income Tax Return should be filed if Income exceeds Basic Exemption Limit.
-> 30% of Tax applicable on Income of Partnership Firm, Company, LLP etc.
-> For Companies – Minimum Alternate Tax and for other Assesses – Alternate Minimum Tax rate is 18.5%.

Some important noting points towards applicability of Income Tax in case of Long Term & Short Term Capital Gain; Gift received from stranger and tax provisions on Agriculture Income.

-> Long Term Capital Gain will arise if transfer of specified Capital Assets is made after 3 years.
-> Generally Long Term Capital Gains is taxable @ 20%.
-> STT paid Long Term Capital Gain on Shares,etc is exempt from Tax.
-> Short Term Capital Gain is Taxable @ 15% if STT is paid.
-> Capital Gain on Immovable Properties is chargeable at Stamp Duty Value or Selling Price whichever is higher.
-> Dividend received from domestic company is exempt from Tax.
-> Gifts received form stranger of an Amount exceeding Rs. 50,000 is taxable.
-> Income Tax is not chargeable on Gifts received at the time of Marriage, Will, and in case of Succession and from specified relatives.
-> Agricultural Income is exempt from Tax.

Got your Form 16? Prepare to file IT return!!
It is that time of the year when you should start thinking of filing your income tax return for the last year. You should prepare well in advance to avoid any last minute hassles. If you are a salaried person it is advisable for you to collect below mentioned documents before start filing your tax return:
• TDS certificate in Form 16 (for Salaried Individuals)
• Interest cm TDS certificate in Form 16A (from your bank)
• Bank Account statements/passbook of all your bank accounts (updated)
• Details of investments made during the year / at the end of the year
• Tax Challan deposited for the last year
• Last year’s Tax Return
• Form 26AS
Due date for e-filing Income Tax Return for this year is 31st July 2016. ITR forms for AY 2016-17 (FY 2015-16) have been already announced and they are available now for filing.

The Income Tax Central Action Plan 2016-17 talks of blocking of PAN. The important highlights of the suggestions are as under:
1. Pan Blocking shall be after due notice
PAN to be block after due notice to the tax defaulters.
2. PAN blocking shall deprive defaulters from filing their income tax returns
PAN of tax defaulters shall be be blocked in the system, in a such a way that these defaulters would not be allowed to file their Return of Income.
3. PAN blocking to deprive defaulters benefit of carry forward of losses
Blocking of PAN would mean that defaulters cannot avail the benefit of carry forward of Business Loss and Losses under other heads where filing of Return of Income u/s. 139(1) is mandatory.
4. Blocked PAN to be shared with CIBIL
List of such Blocked PANs can be shared with credit rating agency like CIBIL & Banks, so that these defaulters are not sanctioned any loans or overdraft facility by Public Sector Banks, as the same would become NPAs.
5. Withdraw of facility like LPG etc.
Ministry of Finance can be suggested to withdraw facility like LPG Subsidy etc. which are directly credited in to the Bank A/cs, for the said defaulters i.e. Disincentive to be a tax defaulter.
6. Blocking registration of immovable properties
List of blocked PANs can be circulated to Registrar of Properties with a request for not allowing any registration of immovable properties.

*CBDT CLARIFICATION ON TCS PROVISION*
The CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
CBDT Circular No. 23/2016 dt. 24 June 2016
In order to curb the cash economy, Finance Act 2016 has amended section 206C of the Income-tax Act to provide that the seller shall collect tax at the rate of one per cent from the purchaser on sale in cash of certain goods or provision of services exceeding two lakh rupees. Subsequent to the amendment, a number of representations were received from various stakeholders with regard to the scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Act. The Board, after examining the representations of the stakeholders, issued FAQs vide circular.No.22/2016 dated 8th June, 2016. The Board has further decided to clarify the issue as regards applicability of the provisions relating to levy of TCS where the sale consideration received is partly in cash and partly in cheque by issue of an addendum to the above circular in the form of question and answer as under:
Question 1: Whether tax collection at source under section 206C(1D) at the rate of 1% will apply in cases where the sale consideration received is partly in cash and partly in cheque and the cash receipt is less than two lakh rupees.
Answer : No. Tax collection at source will not be levied if the cash receipt does not exceed two lakh rupees even if the sale consideration exceeds two lakh rupees.
Illustration: Goods worth Rs. 5 lakhs is sold for which the consideration amounting to Rs.4 lakhs has been received in cheque and Rs.1 lakh has been received in cash. As the cash receipt does not exceed Rs.2 lakh, no tax is required to be collected at source as per section 206C (1D).
Question 2: Whether tax collection at source under section 206C (1D) will apply only to cash component or in respect of whole of sales consideration.
Answer: Under section 206C (1D), the tax is required to be collected at source on cash component of the sales consideration and not on the whole of sales consideration.
Illustration: Goods worth Rs. 5 lakhs is sold for which the consideration amounting to Rs.2 lakhs has been received in cheque and Rs.3 lakh has been received in cash. Tax is required to be collected under section 206C (1 D) only on cash receipt of Rs.3 lakhs and not on the whole of sales consideration of Rs.5 lakh.

CBDT CIRCULAR PRESCRIBING CONDITIONS FOR RELAXATION FROM HIFGHER TDS U/S 206AA OF THE INCOME TAX ACT 1961 FOR NON-RESIDENTS AND FOREIGN COMPANY:
Section 195 of the Income-Tax Act, 1961 states that the income earned by non-residents in the form of royalties, technical fees, etc. is subjected to TDS by the person who is responsible to make such payment to the non-resident assessee. The section does not mention any rate at which the TDS is to be done by the person liable to make the payment.
However, the rates are referred in PART-II of the First Schedule to the relevant Act.
Further, as per Section 206AA, PAN is mandatorily required to be furnished by the deductee, otherwise income is to be taxed at the higher of the following rates:
a) The Rate in Force
b) The rate specified in the Act
c) The rate of 20%
Further Finance Act 2016 provided that provisions of section 206AA regarding higher TDS in case of non availability of PAN shall not apply to non-resident, not being a company, or to a foreign company, subject to such conditions as may be prescribed.
Now CBDT has come up with Notification No 53/2016 dated 24th June providing conditions and for relaxation of higher TDS u/s 206AA of the Act for non availability of PAN Card in case of Non-Resident/Foreign Company.
As per said notification section 206AA will not be applicable for following nature of transactions:
ü Interest
ü Royalty
ü Fess for technical services
ü Payments on transfer of any capital asset,
However deductee will be required to furnish following details to the deductor for taking benefit of this notification:
ü Name, e-mail id, contact number;
ü Address in the country or specified territory outside India of which the deductee is a resident;
ü A certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate; (iv) Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.
The notification in detail can be seen at following link:
http://www.incometaxindia.gov.in/…/n…/notification532016.pdf

www.incometaxindia.gov.in