Friday 29 March 2019

E-Way Bill System Forthcoming changes in e-Waybill system

1. Auto calculation of route distance based on PIN code for generation of EWB
Now, E-waybill system is being enabled to auto calculate the route distance for movement of
goods, based on the Postal PIN codes of source and destination locations. That is, the e-waybill
system will calculate and display the actual distance between the supplier and recipient
addresses. User is allowed to enter the actual distance as per his movement of goods. However,
it will be limited to 10% more than the displayed distance for entry. That is, if the system has
displayed the distance between Place A and B, based on the PIN codes, as 655 KMs, then the
user can enter the actual distance up to 720KMs (655KMs + 65KMs). In case, the source PIN
and destination PIN are same, the user can enter up to a maximum of 100KMs only. If the PIN
entered is incorrect, the system would alert the user as INVALID PIN CODE. However, he can
continue entering the distance. Further, these e-waybills having INVALID PIN codes are flagged
for review by the department.
Route distance calculation between source and destination uses the data from various
electronic sources. This data employs various attributes, for example: road class, direction of
travel, average speed, traffic data etc. These attributes are picked up from traffic that is on
National highways, state highways, expressways, district highways as well as main roads inside
the cities. A proprietary logic is then used for approximating the distance between two postal
pin codes. The distance thus derived is then provided as the motorable distance at that point of
time.
2. Blocking of generation of multiple E-Way Bills on one Invoice/document
Based on the representation received by the transporters, the government has decided not to
allow generation of multiple e-way bills based on one invoice, by any party – consignor,
consignee and transporter. That is, once E-way Bill is generated with an invoice number, then
none of the parties - consignor, consignee or transporter - can generate the E-Way Bill with the
same invoice number. One Invoice, One E-way Bill policy is followed. The change will come in
the next version.
3. Extension of E-Way Bill in case Consignment is in Transit
The transporters had represented to incorporate the provision to extend the E-way Bill, when
the goods are in transit. The transit means the goods could be on Road or in Warehouse. This
facility is being incorporated in the next version for the extension of E-way Bill.
During the extension of the e-way bill, the user is prompted to answer whether the
Consignment is in Transit or in Movement. On selection of In Transit, the address details of the
transit place need to be provided. On selection of In Movement the system will prompt the user
to enter the Place and Vehicle details from where the extension is required. In both these
scenarios, the destination PIN will be considered from the PART-A of the E-way Bill for
calculation of distance for movement and validity date. Route distance will be calculated as
explained above.
4. Blocking of Interstate Transactions for Composition dealers
As per the GST Act, the composition tax payers are not supposed to do Interstate transactions.
Hence next version will not allow generation of e-way bill for inter-state movement, if the
supplier is composition tax payer. Also, the supplies of composition tax payers will not be
allowed to enter any of the taxes under CGST or SGST for intrastate transactions. In case of
Composition tax payer, document type of Tax Invoice will not be enabled.

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Thursday 28 March 2019

रियल एस्टेट सेक्टर पर नई जीएसटी दर

The GST council in the 34th GST council meeting held on 19th March, 2019 at New Delhi decided new GST rates and other related issues on real estate sector. Followings are the main provisions (other than transition related provisions) as have been published by way of press release by CBIC on its website.
Q1: What is the new GST rate on Real Estate Sector?
A1: 1% without ITC on construction of affordable houses.
5% without ITC on construction of all houses other than affordable houses.
Q2: What would be the GST rate on commercial apartments in case they are constructed in a residential real estate project?
A2: 5% without ITC if carpet area of commercial apartments is not more than 15% of total carpet area of the residential project. In all other cases GST rate on commercial apartments shall be 18% (effective rate 12%)
Q3: What is the definition of affordable house?
A3: Carpet area is not more than 60 Sq. Mtr. (645.834625 Sq. Ft.) in case residential unit is situated in a metro area
Carpet area is not more than 90 Sq. Mtr. (968.751938 Sq. Ft.) in case residential unit is situated in other than metro area.
Affordable houses being constructed in ongoing projects under the existing central and state housing schemes presently eligible for concessional rate of 8% GST (after 1/3rd land abatement).
Q4: In case of ongoing projects which rate should be followed (Old/New)?
A4: The promoters shall be given a one –time option to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC). Option should be exercised once within a prescribed time limit. Where the option is not exercised within the prescribed time limit, new rates shall apply.
Q5: Which projects are to be considered as ongoing?
A5: Buildings where construction and actual booking have both started before 01.04.2019.
Q6: Whether inputs or input services for constructions of buildings can be purchased from unregistered persons?
A6: Maximum 20% of total value of inputs and input services to complete a project can be purchased from unregistered persons. Therefore, 80% or more of total value of input and input services shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @18% on RCM basis. However, tax on cement purchased from unregistered person shall be paid @28% on RCM basis.
Capital goods, TDR/JDA, FSI, long term lease (premiums) shall be excluded to compute the above mentioned 80%
Tax on capital goods purchased from unregistered persons shall be paid under RCM at applicable rates.
Q7: What are the treatments of TDR/FSI and long term lease for projects commencing on or after 01.04.2019?
A7: Supply of TDR, FSI, long term lease (premium) of land by a landowner to a developer shall be exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sold after issue of completion certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.
The liability to pay tax on TDR, FSI, long term lease (premium) shall be shifted from land owner to builder under the reverse charge mechanism (RCM).
The date on which builder shall be liable to pay tax on TDR, FSI, long term lease.
(Premium) of land under RCM in respect of flats sold after completion certificate is the date of issue of completion certificate.

The liability of builder to pay tax on construction of houses given to land owner in a JDA is also being shifted to the date of completion.

Important Things To Remember This March ending!

इस मार्च अंत को याद करने के लिए महत्वपूर्ण बातें!


Arjun (Fictional Character): Krishna, the financial year 2018-19 is about to end, and the new financial year is about to start. During the year many changes were made in GST. So now in March 2019, what precautions the taxpayer needs to take in respect of GST?
Krishna (Fictional Character): Arjun, This financial year was an important one. Many important changes were brought in GST this year. Soon, taxpayers would be filing their Annual return and getting their accounts audited. This would be the first time taxpayers would file annual return and also their last chance to rectify mistakes if any in FY 2017-18. So, as March end approaches the taxpayers should reconcile their books with returns.
Arjun: Krishna, what are points on which the taxpayers need to pay attention at the end of financial year?
Krishna: Arjun,
1. Amendments/ rectification: One should note that the return for March 2019 is the last chance to amend or rectify mistakes done, or things omitted in GSTR-1 or GSTR 3-B return for FY 17-18.
So, The taxpayers should reconcile their books of accounts and returns uploaded and adjust their differences in March GSTR-3B. Also, if any mistake is made in GSTR-1, like B2C shown as B2B, or wrong GSTIN uploaded, invoices omitted to be uploaded etc. can be amended.
2. Last chance to Avail pending Input tax credit-  The taxpayer should reconcile their Input tax credit as reflected in GSTR 2-A with GSTR 3B filed by them and also books of accounts.
Taxpayers should also take supplier follow up for the invoices not uploaded by them, as ITC cannot be taken by taxpayer if the same is not auto populatedin GSTR 2A.
3. Return ITC-04 in relation to jobworkTaxpayers should ensure that they have filed ITC-04 for all quarters from July 17 to December 18, giving details of goods sent to jobworker and goods received from jobworker.
4. TDS returns- TDS deductors should file TDS returns from October 18 to February 19, so that the counterparty can receive TDS credit before filing their last GST 3B of FY 18-19.
5. TDS credit- Taxpayers should accept the TDS credit as reflected on GST portal on monthly basis so that the amount of TDS deducted can be credited to the cash ledger.
6. Letter of Undertaking (LUT) - All the exporters who make exports without paying tax under LUT should apply for LUT for FY 19-20.
7. Opting for Composition Scheme – The taxpayer must also workout whether he wants to convert to Composition scheme (Limit is Rs. 1.5 Cr. Now) from FY 19-20.
Arjun: Krishna, what other things should the taxpayer keep in mind before 31st March 2019?
Krishna: Arjun, following are the things to keep in mind-
  • In Income tax, 31st March is the last date to file belated return for FY. 17-18.
  • 31st March is the last date for filing Revised returns for FY. 16-17/17-18.
  • Aadhaar-PAN linking is now mandatory for the PAN holders requiring filing of Income Tax Return. The last date to link Aadhaar number and PAN is 31.03.2019.
  • If deduction u/s 80 is to be claimed in Income tax, then every taxpayer should verify the limits of Income tax and their tax liability and should invest, donate, etc. before 31st March 2019.
  • If Taxpayers have not paid Advance tax before 15th March then it should be paid before 31stMarch so that less interest will be levied.
  • Last date to file Professional tax return for FY 18-19 is 31st March 2019.
Arjun: Krishna, What lesson the taxpayer should take from this?
Krishna: Arjun, All the taxpayers should complete their pending work before 31st march. The taxpayers, who are liable to make payment, should do the payment on time. Everyone should follow the correct tax system from this new financial year. So, pay the tax as per provisions of the Act. Otherwise taxpayers will have to face consequences in the future.

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Wednesday 13 March 2019

ITR फाइलिंग के क्या लाभ हैं?

आईटीआर फाइलिंग के कई लाभ हैं जिनके पास कर देयता है, लेकिन आप सोच रहे होंगे कि किसी व्यक्ति को आयकर रिटर्न क्यों दाखिल करना चाहिए जब उनकी आय छूट सीमा से कम हो? यहाँ कारण हैं: -

टैक्स रिफंड का दावा

ऐसी संभावनाएं हैं कि, टीडीएस को व्यक्ति के नाम पर किए गए कुछ निवेश पर काट लिया गया है, तो करदाता को कर वापसी का लाभ उठाने के लिए आयकर रिटर्न दाखिल करना आवश्यक है।

ऋण के लिए आवेदन करते समय लाभकारी

यदि आप ऋण के लिए आवेदन करने की योजना बना रहे हैं, तो पात्रता और ऋण की मात्रा आपकी आय पर निर्भर करेगी, जिसका पता आपके आयकर रिटर्न से लगाया जा सकता है। आयकर रिटर्न अधिकारियों को प्रासंगिक वित्तीय वर्ष के लिए आय के खिलाफ भुगतान की गई कुल आय और कुल करों की स्पष्ट तस्वीर प्रदान करता है।

आप नुकसान को आगे बढ़ा सकते हैं

आयकर नियमों के अनुसार, जिन लोगों ने संबंधित आकलन वर्ष के लिए आयकर रिटर्न ई-फाइल किया है, वे पूंजीगत लाभ के खिलाफ उन्हें निर्धारित करने के लिए आगे के नुकसान उठाने के पात्र हैं। ऐसी संभावनाएं हैं कि आपको एक वर्ष के लिए नुकसान हो सकता है। ऐसी स्थिति में, आप ई-फाइलिंग इनकम टैक्स रिटर्न भर कर हानि को आगे ले जा सकते हैं, यदि आपके पास छूट सीमा से कम आय है।

इसके अलावा, नागरिकों को हमेशा प्रासंगिक वित्तीय वर्ष के लिए आयकर रिटर्न दाखिल करने की सिफारिश की जाती है, भले ही व्यक्ति को छूट सीमा से कम आय हो, क्योंकि यह भारत में आपकी आय का एकमात्र प्रमाण है।


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What are the benefits of ITR Filing?

There are several benefits of ITR filing for those who have tax liability, but you must be wondering why an individual should file Income Tax Return when their income is below the exempt limit? Here are the reasons why: –
Claiming Tax Refund
There are chances that, the TDS has been deducted on some investment made under the name of the individual, then the taxpayer is required to file Income Tax Return, in order to avail the tax refund.
Beneficial while applying for Loans
If you are planning to apply for loan, then the eligibility and the quantum of loan will depend on your income, which can be traced by your Income Tax Return. Income Tax Return provides the authorities a clear picture of the total income earned and total taxes paid against the income for the relevant Financial Year.
You can carry-forward losses
As per the Income Tax Rules, only those who have e-filed the Income Tax Return for the relevant assessment year are eligible to carry forward losses to set them off against capital gains. There are possibilities that you may have incurred losses for a year. In such a situation, you cannot shy-away from e-filing Income Tax Return, if you have an income below the exemption limit.
Moreover, it is always recommended for the citizens to file their Income Tax Return for the relevant Financial Year even when the individual has income below the exemption limit, as it the only proof of your Income in India.


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