GST AUDIT: GSTR-9C -Analysis of Point No. 5A to 5O

POINT NO. 5  OF  FORM  GSTR 9C (CLAUSE WISE) – SHORT ANALYSIS

5A – Turnover (including exports) as per audited financial statements for the State / UT (For multi-GSTIN units under same PAN the turnover shall be derived from the audited Annual Financial Statement)

1. The turnover as per the audited Annual Financial Statement shall be declared here.

2. While considering the turnover from the audited financial statements, the Auditor is also required to include indirect income in the form of dividend, interest, forex fluctuation, profit on sale of asset etc.

DOCUMENTS REQUIRED —- 

1. Audited financial statements for the FY to derive the total turnover of the Registered Person;

1. GST (Viz. Form GSTR 3B and Form GSTR 1) returns filed by the Registered Person to ensure that the turnover declared in the returns match with the turnover captured in the audited financial statements.

5B – Unbilled revenue at the beginning of Financial Year

1. In simple terms, unbilled revenue is the revenue recognized in the books of accounts before the issue of an invoice at the end of a particular period as per Accounting Standard-9.

2. Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the earlier financial year for which the invoice is issued under GST law is required to be declared here.

i.e. GST is payable during the financial year on such revenue (which was recognized as income in the earlier year), the value of such revenue is to be declared here.(booked in 16-17 but invoice rasied in 18-19)

3. The expression ‘financial year’ for 2017-18 — to be 9 months period commencing 1 July, 2017, the value under this clause must be reckoned as at 30th June, 2017.

4. ONLY APPLICABLE TO “SERVICES” ; AS FOR “GOODS” IT WOULD GET COVERED UNDER “UNADJUSTED ADVANCES”.

DOCUMENTS REQUIRED —-

1. Reliance has been placed on the audited financial statements for determining the unbilled revenue and no separate exercise is conducted to validate the same.

5C – Unadjusted advances at the end of the Financial Year

1. It is a business practice to collect Advances from customers before effecting supplies.

2. As per GST Law, any advances received from Customers before the supply is made ; on receipt of such advance GST has to be charged.

3. Advances received would be for various purposes. So, the Advances on which GST is liable should only be considered for the adjustment.

INCLUDE	REASON
Advance received for services as on 31st March 2018	Revenue not recognized in books, but offered to tax for GST
Advance received for Goods before 15th Nov 2017 and the supply of goods not complete as on 31st March 2018	Revenue not recognized in books, but offered to tax for GST

NOTE —

(a)  value of all advances for which GST has been paid but the same has not been  recognized as revenue/sale in the audited Annual Financial Statement shall be declared here.

(b) Even if not considered in the returns GSTR 1 and GSTR 9, the same shall be added as turnover here.

5D – Deemed Supply under Schedule I

1. Requirement of this Sl.No. is to report the transactions which were not reported in the financial statements, though the same are reported in the returns filed since they are treated as deemed supplies under the GST law.

2. Any deemed supply which is already part of the turnover in the audited Annual Financial Statement is not required to be included here.

 SCHEDULE-1 COVERS FOLLOWING SUPPLIES MADE WITHOUT CONSIDERATION  – 

1. Assets Donated would also not escape the levy and would have to be subject to GST Certain other examples would be – decommissioning of an entire plant, impairment of assets, assets taken by a proprietor on completion of its useful life (computer taken by the proprietor) etc. (only if ITC was availed on the above Assets).

2. Supply of goods or services or both between related persons or between distinct persons;

Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

3. Supply of goods-

(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal;

or

(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.

5E – Credit Notes issued after the end of the financial year but reflected in the  annual return

1. Value of credit notes which were issued after Mar 31, 2018 ; for supply accounted in 18-19(not 17-18) ; but such credit notes were reflected in the annual return GSTR –9 for the financial year 2017-18.

i.e. credit notes issued after 01.04.2018 — reported in books in FY 2018-19 – but reflected in GSTR-9 of 2017-18.

2. Above amount would get added with Turnover as per Audited Books to reconcile it with Turnover of GSTR-9.

5F – Trade Discounts accounted for in the audited Annual Financial Statement but are not permissible under GST

1. This clause requires disclosure of trade discounts which have been given effect to, in the audited financial statements ;

but which are not permissible as deduction from the value of supply as per VALUATION RULES.(i.e. not permissible under GST).

2. As per Sec.15(3) following discount is permissible –

a. If discount is mentioned on face of Invoice , it can be reduced from the Value of Supply.

b. If discount is not mentioned on face of Invoice , it can be reduced from the Value of Supply , on fulfilling following conditions :

• • Both Supplier & Recipient have agreed about the discount before the supply &
  • Such discount is specifically linked to relevant invoices &
  • Proportionate ITC attributable to discount has been reversed by the Recipient.

3. The Trade discounts can be issued in various ways and manners like special discounts for maintaining the business relationship ; bonus discount for purchasing goods beyond certain stipulated targets

5H – Unbilled revenue at the end of Financial Year

1. Revenue which was recorded in the books of accounts on the basis of accrual system of accounting i.e. as per AS-9 in current FY (17-18) ;

Invoice for the same would be raised in subsequent FY (18-19) &

then GST would also be paid in FY 18-19.

2. Above amount will get reduced from the Turnover as per Books so as to arrive to Turnover of GSTR-9; as GSTR-9 doesn’t includes such unbilled amount.

3. Also refer Point 5B as discussed above.

5I – Unadjusted Advances at the beginning of the Financial Year

1. NIL – for the first year ; as GST was not applicable on advances received in FY 16-17 & till 30.06.2017.

5J – Credit notes accounted for in the audited Annual Financial Statement but are not permissible under GST

1. All the adjustments made by issuing a Credit Note ; in the Books of Accounts ; by way of  reduction in the Turnover of Books ; without having GST effect shall be reported here.

2. Identify all Non-GST Credit notes, which have effect of reducing the Turnover as per Books.

3. Since, these Non-GST credit notes have reduced the Turnover of Books but they aren’t reflected in any GST returns(as they are non-gst).

4. Hence added back to arrive to the Turnover as per GSTR-9.

5K – Adjustments on account of supply of goods by SEZ units to DTA Units

1. Value of all goods supplied by SEZs to DTA units ; for which the DTA units have filed bill of entry shall be declared here.

2. Such outward supplies are not required to be reported by SEZ units in their GST Returns (as it is Import for the DTA unit).

3. Hence, the data cannot be retrieved from the returns filed by such SEZ units.

4. Though above transaction would be ‘sale’ for the purpose of Financial Statements of SEZ unit; but will not be considered as supply for GST purposes and hence, needs to be deducted from the turnovers of financial statements for the purpose of arriving at the turnover as per GSTR 9.

5M – Adjustments in turnover under section 15 and rules thereunder

1. Any difference between the turnover reported in the audited Financial Statements &Turnover reported in GSTR-9 due to difference in Value of Supply (Valuation Rules) shall be declared here.

2. Section 15 provides that transaction value will be considered as Value of Supply only if :-

• Supplier and the recipient are not related  &
• Price is the sole consideration for the supply.

3. Even if the price for a supply is agreed to be the transaction value, few adjustments (provided for under Section 15 itself) are required to carried out ; for the purpose of computation of ‘Value’ on which GST is required to be paid.

For Eg. –

• ADD – Any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act.

• ADD – Incidental expenses, including commission and packing,freight charged by the supplier to the recipient & recovered thereon.

• ADD – Any amount that the supplier is liable to pay in relation to such supply, but which has been incurred by the recipient of the supply and not included in the price.

5N- Adjustments in turnover due to foreign exchange fluctuations

1. Forex Transactions are accounted in the books of accounts based on RBI REFERENCE RATE ; whereas CGST Rulesrequire value of taxable goods to be determined based on the exchange by CBEC NOTIFIED RATE .

2. Hence difference between RBI REFERENCE RATE & CBEC NOTIFIED RATE shall be declared here.

3. Additionally, difference in amount booked in accounts and actual amount received would also result in Forex Gain/Loss which again needs to be adjusted from the Annual Turnover as per as per financials(i.e. reduce forex gain & add forex loss) to arrive at the revenue as per GSTR 9.

5O- Adjustments in turnover due to reasons not listed above

1. This is a residuary clause for difference between the turnover due to reasons not listed above.

2. The following broad head of adjustments can be reported under this Sl.No.: –

• turnover considered as ‘supply’ under GST but not considered as income in the audited Annual Financial Statements;

• turnover discovered as ‘supply’ during the course of audit, but not considered in books of account and Form GSTR 9.

Sl No.	Particulars	Action
1	Physician sample distributed by the pharmaceutical company to physician for free	(+)
2	Notice pay recovered from employees	(+)
3	Gifts given to customers/vendors/distributors	(+)
4	Stocks issued to discharge CSR obligation	(+)
5	Sales promotion / advertisement reimbursement received and considered as supply	(+)
6	Out of pocket expenses considered in the value of supply	(+)
7	Value of Capital Goods on which GST paid on sale	(+)
8	Profit on sale of Capital goods disclosed in audited Annual Financial Statements	(-)
9	Loss on sale of Capital goods disclosed in audited Annual Financial Statements	(+)
10	Income in Profit and Loss account recognized based on special circumstances	(-)
11	value on which GST is liable to be paid in respect of transactions where income is recognized based on special circumstances	(+)
12	Discounts which are not to be excluded from the value of supply as per Section 15	(+)
13	Sale reversals in financials as risk & rewards not transferred.	(+)
14	Provision for doubtful debts written back	(+)
15	Interest income	(-)
16	Miscellaneous income or Any other amount	(-)

                                         (views are strictly personal)

GST New Tax Rate Structure on Real Estate Sector

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. 

The GST Council in its 33^rd meeting held on 24^thFebruary 2019 has recommended for a new GST rate structure on the construction of residential projects. The decision was taken to address the industry concern on the slowdown in the sector and low off-take of under construction houses.

In the 34^th meeting held on 19^th March 2019, the GST Council has given the modus operandi of the new GST rate of 1%/5% on real estate sector.

New rate of tax:

Applicability: It is applicable to new projects or ongoing projects which have exercised the above option to pay tax in the new regime.

Rates:

1% without ITC

• Affordable Houses *1 
• On going Afforable House Project under central and state housing schemes

5% without ITC

• all houses other than affordable houses in ongoing projects *2 
• all houses other than affordable houses in new projects
• commercial apartments such as shops, offices etc. in a residential real estate project (RREP) *3 

*1. Definition of affordable housing:  A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR

2. In case of construction of houses other than the affordable house in ongoing projects, new rate shall be available on installments payable on or after 01.04.2019 in case of houses booked before 01.04.2019.

3. In case of commercial apartments such as shops, offices etc. in a residential real estate project (RREP), the new rate of 5% tax without ITC will be applicable only if the carpet area of all such commercial apartment in a RREP is not more than 15% of total carpet area of all apartments including residential apartments (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).[O1] 

Conditions for the new tax rates

The GST Council has laid down the following conditions on the new tax rates regime

1. The Input Tax Credit shall not be available on the inward supplies.
2. 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons.

In case of shortfall of purchases from 80%, tax shall be paid on the differential shortfall at 18% on RCM basis by the builder. However, Tax on cement purchased from the unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

Is it Mandatory of the existing running/ongoing project?

The GST Council has provided for one time option to the promoters/builders to continue to pay the tax at the old rates of 8% or 12% with ITC on the ongoing projects.

The Ongoing Projects are the Projects/Buildings where construction and actual booking have started before 01/04/2019 and which have not been completed by 31.03.2019.

Therefore for the ongoing projects, the promoters have an option to opt for the new tax structure of 1%/5% without ITC or to continue with the old tax rates of 8%/12% with ITC.

ITC Transitional Provision for ongoing projects

The Ongoing projects where construction and booking both had started before 01.04.2019 and have not been completed by 31.03.2019 opting for new tax rates shall transition the ITC as per the prescribed method.

The transition formula approved by the GST Council, for residential projects extrapolates ITC taken for percentage completion of construction as on 01.04.2019 to arrive at ITC for the entire project. Then based on percentage booking of flats and percentage invoicing, ITC eligibility is determined. Thus, the transition would thus be on pro-rata basis based on a simple formula such that credit in proportion to booking of the flat and invoicing done for the booked flat is available subject to a few safeguards.

To arrive at the eligible ITC we can use the following steps and the formulae.

Step 1: As on 01.04.2019 arrive at the percentage completion of construction
Step 2: Based on step 1 arrive at the ITC of the entire Project.

Formula Derived =

ITC availed as on date  * 100
Percentage Completed (Step 1)

Step 3: Determine the percentage booking of flats and percentage of invoicing made

Step 4: Determining the ITC eligible based on pro-rata basis in proportion to booking of the flat and invoicing done for the booked flat

Formula: ITC Eligible =

Invoicing of the Flat Booking made * Total ITC (Step 2)
Total Estimated sale of the projects

The para 4(ii) of the press release of 34^th GST Council meeting envisages that new rate shall be available on installments payable on or after 01.04.2019. Therefore the ITC will be available only for the invoicing made for installments till 31.03.2019.

In case of a mixed project, the ITC shall be divided on pro rata basis between commercial portion and noncommercial portion in proportion to carpet area of the commercial portion in the ongoing projects (on which tax will be payable @ 12% with ITC even after 1.4.2019) to the total carpet area of the project.

Formula

Carpet area of the commercial portion in the ongoing project * Eligible ITC
Total carpet area of the project

Amendment of ITC Rules

The GST Council in its 34^th meeting has provided that, the ITC rules will be amended to bring greater clarity on monthly and final determination of ITC and reversal thereof in real estate projects. The change would clearly provide procedure for availing input tax credit in relation to commercial units as such units would continue to be eligible for input tax credit in a mixed project.

Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019

The GST Council has to address the concerns of cash flow of the builders/developers has.

The GST Council has provided for the exemption on supply of TDR, FSI, long term (premium) of land by a landowner to a developer if the constructed flats are sold before issuance of completion certificate and applicable tax is paid on them. In case the flats are sold after issue of completion certificate, the exemption will be withdrawn, however 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 Builder/Developer would be liable to pay tax under RCM (Reverse Charge Mechanism) on TDR, FSI, long term lease (premium).

The date of liability to pay tax under RCM on TDR, FSI, long term lease (premium) of land shall be the date of issue of completion certificate in respect of flats sold after completion certificate.

The above points holds good in case of JDA for the share of land owner in the construction of houses. The Builder/developer would be liable to pay tax on the land owner share in the constructed apartments on date of completion i.e. at the time of obtaining occupancy certificate.

Pros and Cons of the new tax rate Structure

The new tax regime on real estate sector comes with the following pros

1. The tax burden is reduced for the ultimate buyer.
2. The buyer of house gets a fair price with GST @ 1%/5% instead of current 8%/12%.
3. The issues like ITC benefit not being transferred to the buyer will not exist.
4. Interest of the buyer/consumer gets protected.
5. Cash flow problem for the sector is addressed by exemption of GST on development rights, long term lease (premium), FSI etc.
6. Unutilized ITC, which used to become cost at the end of the project gets removed and should lead to better pricing.
7. Tax structure and tax compliance become simpler for builders.

However apart from the above pros, it has certain following cons:

1. The ITC becomes the cost to the builder, therefore the apartments prices may go up due to increase in the cost.
2. The compliance on part of minimum 80% purchase from registered dealers would require regular tracking and reconciliation would be the tedious process.
3. Transition of ITC in case of ongoing projects opting for new regime is complex and difficult task.

Conclusion:

The new tax regime is a welcome step in the GST era with the simple taxation in the Real Estate sector and reduced burden of tax compliance. The Real Estate has seen a sign of bear and hope to see the new tax regime comes with a hope of light in the real estate sector. The eyes are on the CBIC and GSTN on how the new regime is implement and given effect to.

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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रियल एस्टेट सेक्टर पर नई जीएसटी दर

The GST council in the 34^th GST council meeting held on 19^th 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 1/3^rd 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.

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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 jobwork- Taxpayers 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 31^st March 2019?

Krishna: Arjun, following are the things to keep in mind-

• In Income tax, 31^st March is the last date to file belated return for FY. 17-18.
• 31^st 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 31^st March 2019.
• If Taxpayers have not paid Advance tax before 15^th March then it should be paid before 31^stMarch so that less interest will be levied.
• Last date to file Professional tax return for FY 18-19 is 31^st March 2019.

Arjun: Krishna, What lesson the taxpayer should take from this?

Krishna: Arjun, All the taxpayers should complete their pending work before 31^st 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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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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sagzp73@gmail.com

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.

Contact us-8545873214

Email-sagzp73@gmail.com