P.G.Joglekar & Company

New Income Tax provisions effective from 1st September 2019
Law changes not only from the beginning of the year but from the middle of the year as well. This year, final budget was presented in July and certain amendments are made applicable from 1st September. Let us have a look at the amendments which are effective from 01-09-2019.

TDS on non-exempt portion of life insurance [Section 194-DA]:

Amount received at the maturity of a life insurance policy are exempt from tax U/s 10(10D) if the annual premium is not exceeding 10% of the sum assured (20%in case of policies issued prior to 01-04-2012). Further, if the amount received is not exempt u/s 10(10D) then TDS on the gross amount is required u/s 194DA @1%. There were confusions as to whether entire amount received is taxable as income or only the difference between the amount received and amount invested is taxable as income. Issue becomes more controversial in view of the fact that the TDS was required to be done on entire amount. Issue is now settled by amending section 194DA which logically provides for TDS @ 5% on the net amount only.

TDS on cash withdrawals from bank account [Section 194N]:

In order to curb the circulation of cash in the economy a new section, section 194N is inserted in the Income Tax Act -1961 w.e.f 01.09.2019. Now, cash withdrawals exceeding Rs 1 crore on aggregate basis during the year from an account held with a bank & post office will be subject to TDS @2%. No TDS is required on cash withdrawn till 30.08.2019. However, for reckoning the limit of Rs. 1 Crore, even cash withdrawals prior to 01.09.2019 will also be aggregated.

TDS on payments made by individuals and HUFs to contractors and professionals [Section 194M]:
Most of the TDS provisions originally were applicable to taxpayers who were engaged in business activity. The scope was stretched so as to include other categories of taxpayers like those purchasing immovable property exceeding Rs. 50 Lakh or those making payment of rent exceeding Rs. 50,000/- p.m. Effective from 1st September, the scope is further widened by introducing new section 194N which provides that individuals & HUF taxpayer need to do TDS @ 5% if they are making payment to contractors and professionals exceeding Rs 50 Lakh p.a. As a result, if any individuals make payments exceeding Rs. 50 Lakh towards expenses like house construction, renovation, wedding, personal events, etc in a year to any person then they would be required to deduct tax at the time of making the payment. No TAN (tax deduction account number) is required in such cases & compliance need to be done by using PAN.

Expanding the scope of TDS while purchasing immovable property [Section 194-IA]:

Earlier, only the payment of sale consideration for purchase of immoveable property was liable for Tax Deduction at Source (TDS) u/s 194-IA. Payment towards various other amenities like car parking fee, electricity and water facility fees, services club membership fees, etc was not required to be considered earlier while doing TDS. Now, payment towards all such amenities also attracts TDS @1%.

Banks and FIs to report even small transactions
Government is collecting information from multiple sources & avenues.
One of the most important sources of information is Statement of Financial Transactions (SFT) which is required to be filed by banks and FIs. Earlier, information was required to be submitted only if the amount is above some threshold. In most of the reportable transactions, the limit was Rs 50,000 or more. Now, the scope has been widened & banks/FI may even be required to report transactions below threshold limit of Rs. 50,000/-.

Dear All,
Please find below my notes on FM’s speech
1. GST returns to be further simplified
2. Monetary penalties will be on focus, no prosecution anymore. Not fulfilling CSR will be a civil offence, not criminal offence
3. all IT summons will be issued from a centralized system
4. Any notice without a Document Identification Number (DIN) will be treated as invalid. All old notices will be uploaded with DIN on or before 31st October 2019.
5. All notices on which responses have been received will be closed within 3 months from the date of response.
6. Enhanced surcharge on CGs in case of FPIs removed
7. Section 56(2B) of IT Act, 1961 shall be not applicable to a registered startups. A dedicated cell in CBDT will be available to resolve issues related to startup
8. Benefit of Interest Rate reduction will be passed on by the banks.
9. Banks to link Repo rates with Interest rates on loan : Working capital loan and Home loan interest rate change to be effected immediately once RBI repo rate changes
10. Bank Documentation after loan repayment to be completed within 15 days.
11. Online tracking of loan application will be available with status.
12. Banks for One-time settlement of loan by MSME will follow a check box approach
13. Banks to classify matters as Vigilance and Non-vigilance to improve decision making process
14. NBFC to be permitted to use Aadhar authenticated bank KYC to avoid repeated process.
15. All pending GST refund due till date to MSMEs shall be paid within 30 days.
16. All new GST refund due to MSMEs shall be paid within 60 days
17. MSME definition will soon have one single definition
18. Bond markets in India to be deepened.
19. Indian companies to access global markets – Depository Receipt Scheme to be operationalised
20. Aadhar based KYC for domestic retail investors
21. Measures to bring Offshore rupee market to domestic stock exchanges
22. Delayed Infra payment from Government / Central Public Sector Enterprises (CPSEs) will be dash boarded and monitored for early clearance.

Automobile sector:
23. BS-IV vehicles purchased till 31.3.2020 will remain operational for entire period of registration.
24. Revision of one-time registration fee is deferred till June 2020.
25. Additional 15% depreciation on all vehicles acquired from now till March 2020 is available (in essence 30%)
26. Both Electric Vehicles and Internal Combustion vehicle will continue to be registered.
27. Government departments to replace old vehicles with new ones

*NAC की 31/03/2020 तक के लिए नई कार्यकारणी गठित*

जोकि NAC के संविधान बनाने एवं इसे पास कराने के लिए पदाधिकारी व कार्यकारणी सदस्यों का मनोनयन करेगी।

संविधान का गठन एवं पास होने पर पुनः नई कार्यकारिणी, पदाधिकारी, अध्यक्ष, मंत्री, उपाध्यक्ष, सह- सचिव, पीआरओ आदि का मनोनयन किया जाएगा।

*नई गठित कार्यकारणी के चयनित पदाधिकारी* :

1) *गवर्निंग बॉडी*:
-सदस्य, श्री अक्षत व्यास, श्री डी के गांधी, श्री दीपक बापट, श्री डी के गांधी, संजय कुमार सुरेखा, श्री एस एस सुब्रमण्यम, श्री हर्ष शर्मा एवं श्री रुपेंद्र कंसल।

2) *मैनेजिंग कमेटी*:
अध्यक्ष-डॉ MVK मुर्थी
डिप्टी प्रेसिडेंट-श्री अमीत दवे
उपाध्यक्ष :
East - इराह इहा
West - श्री वरिश इसानी
North - श्री अरविंद गुप्ता
South - श्री TVS सुब्बाराव
Center - श्री मुकेश गुप्ता

*जनरल सेक्रेटरी*- श्री निगम शाह

*जोनल सेक्टरीज़*:
East. -मनोज अग्रवाल
West -भव्य पोपट
North -संजय अरोरा
South - सुनील कोटा
Center- अश्विन लखोटिया

*कोषाध्यक्ष* : प्रकाश जोगलेकर

*नेशनल ड्राफ्टिं कमेटी*:
सदस्य- श्री MVK मुर्थी
सदस्य- श्री दीपक बापट
सदस्य- श्री डी के गांधी
सदस्य- श्री ए के गौर,इंदौर।

*From 1st April 100% tax returns will be scrutinise and tax evasion will be history in India.*

Imagine a Tax tracker software which cost government more than Rs 1000 Crore and several years of building it, just to track expenses of all assesssee based on big data and then suggest department to pick up cases for scrutiny. That’s what India tax department is going to implement from 1 April 2019

Big data Software which can be use to track tax evader is reality for Income Tax department. As per our sources the Income Tax Department has given access to the software on 15 March 2019.

Now if you are travelling foreign county and posting pictures on social media, buying an luxury car and its beyond your income as per your returns filed, then Income Tax Department can use big data to analyse it and check the mismatch between your earning and spending. The process can easily use complete trail for even new tax filer. Also Department can prepare a master file having all details and key information about individuals and corporates.

The basic idea is to catch the tax evaders and also increase number of people to file returns and pay tax, who are not filing returns. The Insight project will feature an integrated information management system, which will harness machine learning to help take the right step and the right time. It will entail collecting relevant web pages and documents that could be probed

India now joins a select league of countries like Belgium, Canada and Australia that are already using big data to keep a check on evasion. It is estimated that in case of Britain launched similar software at estimated cost of 100 million pounds. Since its inception in 2010, the system has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue. These cases would have mostly remained undetected without cutting-edge analytics.

The software will ensure 100% Scrutiny of all the returns filed and selection based on thousands of small parameters from which the probability of tax evasion will be Zero

*Input Tax credit (GST) Can not be denied to recipient for default on part of the supplier- Delhi High Court issued notice to UNION OF INDIA.*

Delhi HC issues notice in writ petition challenging Section 16(2)(c), second proviso to Section 16(2)(d) and proviso to Section 16(4) of Central Goods and Service Tax Act, 2017 (CGST Act); Validity of Section 43A(6) of CGST Act, which hasn’t been notified yet, is also being challenged; Petitioner’s contention is that the Department has been vested with all the powers to recover any revenue lost owing to non-payment of taxes by erring suppliers and credit cannot be denied to recipient for default on part of the supplier; Lists the matter on September 18 : Delhi HC

The matter is being heard by Division Bench comprising of Justice Dr. S. Muralidhar and Justice Asha Menon.

The Petitioner i.e. Bharti Telemedia Ltd. is engaged in providing Direct-To-Home satellite television broadcast services. Writ Petition has been filed challenging the legality and validity of Section 16(2)(c), second proviso to Section 16(2)(d) and proviso to Section 16(4) of the Central Goods and Service Tax Act, 2017. The Writ Petition also challenged the validity of Section 43A(6) of the Central Goods and Service Tax Act, 2017, which has not been notified until.

Section 16(2)(c) of CGST Act, 2017 provides for a condition wherein the recipient would only be entitled to Input Tax Credit if the tax charged in respect of such supply has been actually paid by the Supplier. The second proviso to Section 16(2)(d) provides that the recipient shall add an amount of Input Tax Credit availed, along with interest to the output tax liability if the recipient fails to pay the invoice amount to the supplier within 180 days.

Proviso to Section 16(4) extends the benefit of availment of ITC till the due date of furnishing of return under Section 39 for the month of March, 2019 in respect of certain invoices, only if the supplier for such supplies has uploaded the details of such invoices in its return under Section 37(1) for the month of March, 2019. Section 43A(6) of the CGST Act provides that the supplier and recipient shall be jointly and severally liable to pay tax or pay ITC availed in relation to outwards supplies for which the details have been furnished under sub-section (3) and (4) but returns thereof has not been furnished.

The provisions have been challenged on the following grounds:

Section 16(2)(c), proviso to Section 16(4) is violative to Article 14 of the Constitution of India;
The Department has been vested with all the powers to recover any revenue lost owing to non-payment of taxes by erring suppliers;
The credit cannot be denied to the recipient for the default on the part of supplier.

Delhi HC has issued a notice to Union of India today and posted the matter on September 18, 2019.

Happy to announce the continuation of Training Program of the Institute:

The 6th Batch of *NACIN accredited Intensive 3-Day Residential Training to GSTP's* by Renowned, Eminent Faculties & Trainers at *MBA Dept., SIT Campuss, B.H.Road, Tumakuru* in coordination *with our institute(ITPI)* from *Tuesday the 2nd April 2019 to Thursday, the 4th April 2019*. May check-in before 8.00 PM on previous day i.e., on Monday, the 1st April 2019 at *Alumni Guest House* of the SIT Campus, Bengaluru-Honnavar Road, Tumakuru.

Course Fee: Rs.9,000/- (for *Accommodation & Food, Study Material, GSTP Mock Tests on Computer, Training Certificate*)

By and the order of The National Board of Education & Research & The National Consultative & Executive Committee of The Institute of Tax Practitioners of India (R)

Sd/-. Sd/-
TPr.S.N.prasad TPr.Nigam.K.Sha
OSD-ITPI(NCC) PRO-ITPI(NEC)

To Book your seat, visit http://www.aitpi.org/register-here2.aspx

Sd/-
TPr. D.M.Bhattad
National Secretary General.

tpr.s.n.pr

*HC upheld additions on the basis of ‘window-dressed’ financials prepared for bank loans:*

[Binod Kumar Agarwala v. CIT [2018] 94 taxmann.com 422 (Calcutta)]

The assessee approached a bank to obtain credit facilities on the basis of books of account prepared by a firm of Chartered Accountants. Subsequently, different financial statements were presented before Income-tax Dept. which were audited by another Chartered Accountants Firm. The financials for Income-tax purposes were not commensurate with what was reflected in the books of account presented before Bank. The Assessing Officer made additions due to difference in two audited balance sheets.

The High Court held in favour of revenue that once assessee presents the financial statements, as certified by a Chartered Accountant, for obtaining bank loan, he *can’t subsequently backtrack* from such position at the time of filing annual accounts for the purpose of taxation. The assessee can’t argue that, earlier accounts had been prepared on estimation basis for presentation thereof to bank.

When financial statement of an assessee is accompanied by a certificate as to its fairness, it *couldn’t be tailor-made* to suit a particular purpose or window-dressed to make it attractive for bankers to rely thereupon.
Thus, it is open to the Assessing Officer and income tax authorities to pin the assessee down, on basis of assessee's representation contained in earlier balance-sheet and make additions.

Source: post from
*CA Amresh Vashisht*
Meerut

Income Tax, GST & Indirect Taxes, Corporate Laws, International Taxation - Taxmann Taxmann is the most reliable online source for research on income tax, indirect tax & GST, company law, IFRS, Ind AS & international taxation related information.

Today Hon’ble Labour Minister Shri Sambhaji Patil Nilangekar informed to all trade representatives that Notification for Withdrawal of Shop & Establishment License for All the Shops Across Maharashtra having less than 10 Employees has been released by the Govt of Maharashtra Labour Department. The said Notification will be available on Website from today Midnight. This will give Ease of Doing Business to Lakhs of Shop Keepers of Maharashtra. He also assured to consider traders demand for Complete Abolition of Shop and Establishment Act and various licenses to be taken by the shop keeper's.

We thank Government of Maharashtra for Abolishing the License under Shop & Establishment Act.

Hence all shopkeepers / offices having less than 10 employees need NOT pay any renewal charges to BMC for shop and establishment licence.

Question No. 1: Is ITC available on vehicle taken on lease for employee in a manufacturing company?

Answer: No. It is not allowed as per section 17(5) of CGST Act, 2017.

Question No. 2: We are dealer having more than 1.5 cr turnover. Whether GSTR-1 return to be filed for every month for July- October, 2017 or Single GSTR-1 Return will be filed for the month of July- October, 2017 on or before 31st December, 2017.

Answer: FORM GSTR -1 return is to be filed for every month from July-October, 2017 by registered persons having more than 1.5 cr turnover. Last date is 31st Dec, 2017

Question 3: In GST portal GSTR 2 online preparation is not showing, but in GST home page GSTR 2 filing last date is 30.11.17. Pls confirm whether we have to file or not?

Answer: Last dates for filing FORM GSTR – 2 are yet to be notified. Please refer to notf No. 57/2017-CT and Notf No. 58/2017-CT dated 15.11.2017.

Question No. 4: Is it necessary to Provide Job work challan details in GSTR -1 filing online

Answer : No.

Question No. 5: What documents are needed for Sales return from unregistered persons. Do i need to issue debit note on behalf of him. please clarify

Answer: Registered person will issue a credit note to the unregistered person.

Question No. 6: What is last date for filing FORM GSTTRAN-1?

Answer: 27th December, 2017

Question No. 7: How to convert regular GST registration into ISD registration?

Answer: You will have to first cancel the regular registration by filing FORM GST REG 29 and then take a fresh registration by filing FORM GST REG-01 choosing ISD in the field “Reason to obtain registration”.

Question No. 8: Can we add different trade name under one GSTIN

Answer: No

Question No. 9: If I missed certain invoices in Sept, and now added them in GSTR-3B of Oct, how will return be dealt?

Answer: Tax will have to be paid with interest in GSTR-3B return of October.

Question No. 10: Is there any provision for revision or rectification of GSTR-3B for those dealers who have filed their returns.

Answer: No, the facility to edit FORM GSTR 3B is not available if you have filed the return. However, in case you have only submitted the return but not filed, edit facility shall be available.

Question No. 11: Kindly clarify whether tax under reverse charge is payable on purchase from unregistered dealers upto 12th October or not.

Answer: Yes it has to be paid till 12th October as Not. 38/2017-Central Tax (Rate) came into force with effect from 13th October, 2017.


Question No. 12: How to get refund of wrongly deposited cash in IGST ledger?

Answer: A Circular is being issued to provide for manual filing and processing of refund claims in this regard.

Question No. 13: If any regular dealer opted Composition scheme in Nov. What Will be effective date for composition 1st Dec or Date of opting out??

Answer: 1st Dec since as per rule 3 of CGST Rules, 2017 he may opt to pay tax under composition scheme with effect from the first day of the month immediately succeeding the month in which he files an intimation

Question No. 14: Is FORM GST CMP 3 compulsory for migrated dealer or for new dealer who opt for composition scheme or for both ?

Answer: It is only for migrated dealers as per rule 3(4) of CGST Rules, 2017

Question No. 15: have received refund from previous regime of CBEC at Cenvat credit of my pre deposit. How to avail it.

Answer: It can be claimed as per the provisions of Section 140 of CGST Act, 2017

Question No. 16: What is the due date for filing FORM GSTR-4 for the quarter of July 2017 to September 2017??

Answer: 24.12.2017

Question No. 17: Sir B2B business me outward supply me bill amount ke uper interest add hoke aata he to interest par kitna GST lagta he

Answer: The rate at which the corresponding supply is taxed

Question No. 18: When will RFD-01 be functional on GST site so that refund in cases other than exports can be claimed?

Answer: In place of FORM GST RFD-01, a new FORM GST RFD-01A is available on the common portal for claiming refunds. Pls refer to Circular No. 17/17/2017-GST dated 15.11.2017.

Question No. 19: Less ITC is claimed in GSTR 3B but books had more ITC. GSTR 3B is filed, how to claim differential ITC?

Answer: You can clain ITC in the subsequent months.

Question No. 20: More Output is shown in another GSTR 3B because Tax Paid on Advances could not be adjusted in books, how to rectify that increased Output?

Answer: You can utilize the amount paid to discharge future tax liability.

Question No. 21: I am a work contractor. I have been given contract of making roads by PWD and nagar nigam. While issuing sale invoice is GST applicable and will I get tax credit on it.

Answer: GST pay karna padega par aap credit lene ke liye eligible nahi hai. (refer Sec 17(5) of CGST Act, 2017)

Question No. 22: Should hotel room bookings less than Rs. 1000 not be adding GST?

Answer: There is no tax if the declared tariff is less than Rs. 1000

Question No. 23: How one can identify GST Registration under composition scheme?? Any particular series or serial for them. It may happen restaurant under composition may charge 5% and pay @1%. Its a loss for both parties. Any way out?

Answer: “Composition taxable person, not eligible to collect tax on supplies” is required to be mentioned on bill of supply and at the place of business, “Composition taxable person” should be prominently written – Rule 5 of CGST Rules refers

Question No. 24: kindly note that Decrease in the GST rates on Restaurant from 18% to 5% is a welcome step but I personally found that most of the restaurants are continuing with the same price as before and increased their gross rates.. so no benefits of reduced rates to customers. What to do

Answer: National Anti-Profiteering Authority is set up to take action in such cases. Pls refer to the print ad carried out in all daily newspapers on 22.11.2017.

Question No. 25: supply made to EOU if infra state CGST/SGST or IGST Applicable?

Answer: Vide Notf 48/2017-CT, supply of goods to EOU are deemed exports, hence IGST To be paid



Question No. 26: Sir, If services rendered & bill is raised before 01/07 but payment recd now with Service tax (following receipt basis). Whether to pay Service Tax or GST. Please guide.

Answer: Time of supply is before appointed date. Hence ST is to be paid in accordance with section 142

Question No. 27: Which are non gst supply ?

Answer: Those which are not leviable to GST under the GST Acts viz., petrol, Diesel, Air Turbine Fuel

Question No. 28: How can I know my GST jurisdictional officer to submit my refund application.as per notification no. 17/17/2017 date 15/11/2017 ?

Answer: Administrative orders for assigning the taxpayers to either the Central Tax or State Tax authorities are being issued in the States. In case such an order has not been issued in your State, you can approach either authorities.

Question No. 29: how do I check the authenticity of GST bill. The GSTIN and product etc is correct but is there a way to find out if the supplier paid that money to GST or just took it from me?

Answer: Currently there is no such provision to check this since tax is paid by the supplier in a consolidated manner.

Question No. 30: Our firm had input GST credit (of import purchase) greater than the output liability but the accountant paid GST in the cash ledger erroneously and now we don’t have enough funds to meet the working capital requirements..how can we claim the refund?

Answer: A Circular detailing the procedure for manual filing of the application form for refund will be issued shortly. Or else, the amount paid can be used to pay future tax liability.

Question No. 31: Can an unregistered vendor with annual turnover under INR 20 Lakh sell goods to SEZ Developer/SEZ Unit?

Answer: Since SEZ is deemed foreign territory, it will be an inter-State supply of goods and the vendor has to get registered compulsorily as per section 24 of CGST Act.

Question No. 32: What is the Procedure of claiming refund of GST late fee paid under penalty column?

Answer: It will be credited in the respective cash ledger by the common portal.

Question No. 33: Pls tell me small traders of 40-50 lakhs turnover have to deposit tax monthly or quarterly. nobody is telling the clear picture. traders are muffled by accountants on this account pls clear the scenario

Answer: All registered persons have to pay tax monthly by filing FORM GSTR-3B.

Question No. 34: Can a manufacturer who was not registered in excise take credit of goods on which he doesn’t have duty paying documents i.e. Can he take deemed transitional credit?

Answer: No, as per section 140 of CGST Act

Question No. 35: We have accidentally filed GST amount in wrong head. Filed under Cess. Can this be changed?

Answer: A Circular detailing the procedure for manual filing of the application form for refund will be issued shortly. Or else, the amount paid can be used to pay future tax liability.

Question No. 36: Can an unregistered vendor with annual turnover under INR 20 Lakh supply services to SEZ Developer/SEZ Unit?

Answer: Yes. (Refer Notf No. 10/2017-Integrated Tax date 13.10.2017)

Question No. 37: Is the payment of tax required on receipt of advance in case of goods now?

Answer: No. (Refer Notf No. 66/2017-Central Tax date 15.11.2017)

Question No. 38: What is the last date for filing ITC-04 for Jul- Sep Quarter, 2017?

Answer: 30th December, 2017

Question No. 39: I am an ISD. By when can I file ITC-06 for July, 2017?

Answer: By 31st December, 2017

Question No. 40: If goods are destroyed or lost due to various reasons, can a person take ITC for such goods ?

Answer: No, a person cannot take ITC with respect to goods lost, stolen, destroyed or written off.

Question No. 41: sir if someone is not providing proper bill and charging gst on blank/ rough page,as a consumer what can we do?

Answer: Issuing an invoice/ bill of supply is mandatory under GST law. Complaint against such persons can be made to jurisdictional tax officers

*Real Estate Regulatory Act (RERA) Rules Notified For Union Territories* 10 Things To Know

1) *For ongoing projects without Completion Certificate (CC)*, developers will have to deposit 70% of the amount collected from homebuyers in a separate bank account within 3 months of registering a project with RERA.

2) *In case of delays*, developers will be required to pay compensation to the allottees with an Interest Rate of SBI’s highest Marginal Cost of Lending Rate plus 2%. This effectively means a developer will have to pay interest rates of 11 to 12 % in case of a delay in project delivery.

3) The rules also contain clauses providing for compounding of punishment with imprisonment for violation of the orders of Real Estate Appellate Tribunal against payment of 10% of project cost in case of developers and 10% of the cost of property purchased in case of allottees and agents.

4) *Discrimination in sale of properties* on any grounds will also *not be entertained* under the new rules. Adjudicating Officers, Real Estate Authorities and Appellate Tribunals shall dispose of complaints within 60 days

5) For ongoing projects that have not received Completion Certificate (CC), the *developers will have to make public the original sanctioned plans* with specifications and changes made later, total amount collected from allottees, money used, original timeline for completion and the time period within which the developer undertakes to complete the project.

6) The promoter shall also be required to *declare the size of the apartment based on carpet area* even if it was sold earlier on any other basis.

7) *For registration of projects with the authorities*, developers will be required to submit authenticated copy of PAN Card, annual report comprising audited profit and loss account, balance sheet, cash flow statement and auditors report of the promoter for the immediate three preceding years, authenticated copy of legal title deed, copy of collaboration agreement if the promoter is not the owner of the plot. The promoter will also has to declare information regarding the number of open and closed parking areas in the project.

8) The *promoter will also have to upload details* regarding number and type of apartments or plots, status of the project with photographs floor-wise, status of construction of internal infrastructure and common areas with photos, status of approvals received and expected date of receipt, within 15 days of expiry of each quarter on the project website.

9) In a departure from the draft rules, the requirement of disclosing Income Tax returns has been withdrawn in the final rules keeping in view the confidentiality attached with them and as pointed out by legal experts and promoters.

10) In addition to this, the Real Estate Regulatory authorities will also *publish information relating to profile and track record of promoters, * details of litigations, advertisement and prospectus issued about the project, details of apartments, plots and garages, registered agents and consultants, development plan, financial details of the promoters, status of approvals and projects etc., on the RERA website.

https://www.facebook.com/taxprakash/posts/10211162215198348

Ways out of the GST maze The GST Council should stick to the original mandate of a uniform, simplified rate structure and uniform tax administration

6 things you must know about Krishi Kalyan Cess

The Central Government had announced,at the time of budget 2016, a new cess, namely, ‘Krishi Kalyan Cess’ (“KKC”), which is to be levied at rate of 0.5% on the value of all taxable services w.e.f June 1, 2016. Earlier the rate of service-tax was 14.5% (after including Swacch Bharat Cess at 0.50%).But after the introduction of KKC the effective rate of service tax would beat 15%. For example- If a service of Rs.100 is provided then amount of tax would be computed as follows:

Service tax - Rs 14 (@ 14% ),

Swachh Bharat Cess (SBC) - Rs.0.05 (@0.5%),

Krishi Kalyan Cess would be Rs.0.05 (@0.5% rate).

Recently, the CBEC has issued various notifications on KKC. Impacts of such notifications are given hereunder:

1) KKC will be levied, charged, collected and paid separately to the Government independent of service tax. CBEC has allotted separate accounting codes for KKC [Circular No. 194/01/2016-ST]

2) KKC is not leviable on services which are exempt from the whole of service tax by a notification or special order issued under Finance Act, 1994. In case of services, where service tax is leviable on abated value, KKC will also be leviable only on that taxable value [Notification No. 28/2016 – Service Tax]

3) KKC is also leviable on services on which service tax is leviable as per reverse charge mechanism. –[Notification No. 27/2016 – Service Tax].

4) Cenvat credit of KKC is available but it shall be utilized only for the payment of KKC, i.e. credit of KKC is available only for service providers. Manufacturers of goods are not eligible to take cenvat credit of KKC paid on input services. -Notification No. 28/2016 – Central Excise (N.T)

5) Point of taxation for levying KKC would be determined as per Rule 5 of the Point of Taxation Rules, 2011 since KKC is a new levy. If invoice is issued and payment is received before June 1, 2016, KKC would not be levied and if payment is made before June 1, 2016 and invoice is raised before June 14, 2016.

6) SEZ units are entitled to claim refund of Krishi Kalyan Cess paid on input services along with service tax. Rebate of Krishi Kalyan Cess paid on input services is available in case of export of services - Notification No. 29/2016 – Service Tax and Notification No. 30/2016 – Service Tax