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Financial/Estate Planning
Union Budget of India (2019-20)

Union Budget of India (2019-20)

Ms. Nirmala Sitharaman, Minister for Finance and Corporate Affairs, Government of India announced the Union Budget for 2019-20, in Parliament on July 05, 2019. The budget aimed at boosting infrastructure and foreign investment, the first since the Bharatiya Janata Party led by Prime Minister Narendra Modi returned for a second term in power. The main focus of this budget is reducing red tape, making best use of technology, building social infrastructure, digital India, pollution free India, make in India, job creation in Micro, Small and Medium Enterprises (MSMEs) and investing heavily in infrastructure making India, a US$ 3 trillion economy … Read more

Income Computation and Disclosure Standards

Income Computation and Disclosure Standards

Income Computation and Disclosure Standards (ICDS) have been notified u / s 145 (2) of the Income Tax Act, 1961 vide Notification No. S.O. 3079 (E) dated September 29th 2016. On 23rd March, 2017, certain clarifications were issued by CBDT by way of FAQs.

Below mentioned are the 10 ICDS that are notified up to the date:

  1. Accounting Policies
  2. Valuation of Inventories
  3. Construction Contracts
  4. Revenue Recognition
  5. Tangible Fixed Assets
  6. Effect of Changes in Foreign Exchange Rates
  7. Government Grants
  8. Securities
  9. Borrowing Costs
  10. Provisions, Contingent Liabilities & Contingent Assets

Applicability of ICDS:-
ICDS is applicable to all assesses having Income … Read more

Introduction to E-Way Bill

Introduction to E-Way Bill

Introduction of Goods and Service Tax (GST) across India with effect from July 1, 2017 was a significant step in the indirect tax reforms in India. For quick and easy movement of goods across India without any hindrance, check posts across in the country has been abolished. The GST system provides a provision of e-way Bill, a document to be carried by the person who causes movement of goods in charge of conveyance, generated electronically from the common portal. The e-way bill under GST regime became applicable from April 1, 2018 for the movement of goods from one state to … Read more

Apportionment of Credit & Blocked Credit under GST

Apportionment of Credit & Blocked Credit under GST

GST was made applicable from July 1, 2017 to all the persons making the taxable supply of goods and services wherein the aggregate turnover in financial year exceeds the threshold limit of 40 lakhs rupees (10 lakhs in other states).

Sec 17 of CGST Act, 2017 tells us about the apportionment of credit & blocked credit under GST. A registered person shall be eligible for apportionment of credits of goods & services in the following manner:

  1. Input shall be restricted to the use by business partly for business and partly for others.
  2. Input shall be restricted for the taxable &
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Advance Ruling under GST

Advance Ruling under GST

A letter ruling is a written statement issued to a taxpayer by tax authorities that interprets and applies the tax law to a specific set of facts and an advance ruling is the written statement for interpretation of tax laws. It is issued to applicants when the tax payer is in doubt with regards to provisions of laws.

As per section 95 of CGST / SGST Law and section 12 of UTGST law, ‘advance ruling’ means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in section 97(2) or 100(1) … Read more

The Basics of Crowdfunding

The Basics of Crowdfunding

A small business can raise capital in a number of different ways, including by selling its securities. Under the federal securities laws, every offer and sale of securities, even if to just one person, must either be registered with the Securities and Exchange Commission (“SEC”) or conducted under an exemption from registration. One of the exempt offerings wherein SEC permit companies to offer and sell securities is through crowdfunding.

Crowdfunding is an evolving method of raising capital that has been used to raise funds through internet for a variety of projects.  Title III of the JOBS Act created a federal … Read more

RBI reporting for Foreign Direct Investment

RBI reporting for Foreign Direct Investment

Foreign Direct Investment (FDI) means investment through capital instruments (equity shares, debentures, preference shares and share warrants) by a person resident outside India in an unlisted Indian company or in 10% or more of the post issue paid-up capital on a fully diluted basis of a listed Indian company.

FDI under various sectors is permitted either by an Automatic route or Government route. Under Automatic route, the non-resident or Indian company does not require any approval from Government of India. Whereas, under the Government route the approval from the Government is required prior to investment. Proposals are considered by the … Read more

Reverse charge mechanism

Reverse charge mechanism

Typically, taxes are collected by business owners on behalf of the customers, which is then paid to the government. Reverse charge is when the buyer pays the tax directly to the government. The responsibility of reverse charge can either rest completely on the buyer or in certain special cases, it can be partially / jointly borne both by the buyer and the seller.

Under Goods and Services Tax (GST) laws, a supplier of goods or services collects GST from the receivers and deposits it with the tax authorities. Reverse charge is a mechanism where the recipient of the goods or … Read more

New GST return system – Transition plan

New GST return system – Transition plan

The GST Council in its 31st meeting decided that a new GST return system will be initiated to facilitate taxpayers. Government introduced a transition plan for all the taxpayers under the goods and services tax switching to new simpler return Forms.  In order to ease the transition to the new return system, a transition plan has been worked out. This mechanism allows taxpayers to try the new return filing Forms during July-September and it will become mandatory only from October. The new return mechanism will have 3 Forms – one main return Form (Form GST RET-1) and two annexures (Form … Read more

Common mistakes while filing GSTR-9

Common mistakes while filing GSTR-9

One of the forms taxpayers need to keep track of is annual returns (GSTR-9) under Goods and Services Tax (GST) system. This form is required to be filed once every year by registered taxpayers such as businesses. The due date for filing GSTR-9 for FY 2019 is set as June 30, 2019. While the Government is going to be extra vigilant to flag defaulting filers, taxpayers need to be cautious to avoid making any errors, as there is no way to amend the GSTR-9 return once filed. Below are some of the common mistakes that taxpayers can avoid while filing … Read more

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Deadline to file the Income tax return

Recently, the government notified the income tax return (ITR) forms for financial year (FY) 2018-19. The year following the financial year in which income earned by a person is assessed is referred as assessment year (AY). This is the year in which you file your ITR for the financial year gone by. For instance, for the financial year 2018-19, the AY is 2019-20.There are various different categories to file ITR of taxpayers.

For individuals, Hindu Undivided Families (HUF) and the taxpayers whose accounts are not required to be audited, the deadline to file the ITR for the FY 2018-19 is … Read more

Realty Tax Filing: Errors that can lead to a tax notice

Realty Tax Filing: Errors that can lead to a tax notice

As per tax laws, an individual is required to report all sources of income and file ITR (Income tax returns) using the correct form applicable to him. It is mandatory to file ITR with utmost care because even a small mistake can land you in a trouble getting tax notice. The tax authorities have spruced up their efforts to catch the evaders. The new ITR forms seek detailed disclosures paving no scope for taxpayers to conceal income in their returns. Moreover, the Central Board of Direct taxes mandate to file the returns online, barring super senior citizens above 80 years … Read more

Pruning taxes for products in highest GST slab

Pruning taxes for products in highest GST slab

India could review the goods and services tax (GST) structure to further prune the number of items in the highest slab of 28% as it attempts to stave off a slump in demand. Some states have favored a reduction in tax rates, worried that the slowdown may get entrenched, and have communicated their concern to the Centre. The first GST council meeting to be chaired by Nirmala Sitharaman may meet on June 20, 2019 ahead of the budget presentation on July 5, 2019. Below mentioned are some specific points which will be focused in the meeting:

 

  1. Automobiles are placed
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A gist on AS - 9 / IND AS - 18

A gist on AS – 9 / IND AS – 18

An accounting standard is a common set of principles, standards and procedures that define the basis of financial accounting policies and practices. Accounting standards are adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which is a committee under Institute of Chartered Accountants of India (ICAI) consisting of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc.

Ind AS stands for Indian Accounting Standard and are converged standards for IFRS (International Financial Reporting Standards). Before the introduction of Ind AS, financial statements were prepared on the basis … Read more

Relaxing startups for fund raising

Relaxing startups for fund raising (100 day action plan)

With a field of vision to facilitate fund raising by start-ups, the Department for Promotion of Industry and Internal Trade (“DPIIT” or the “department”) proposed relaxation in the income tax laws proposing a customized incentive package to attract foreign investments in sectors such as electronics, chemicals and food processing. This proposal is a part of a 100 day action plan prepared by DPIIT focusing “Startup India Vision 2024” to promote growth of bussing entrepreneurs facing difficulty in raising finances. At present, startups comply with a plethora of requirements such as GST filings, tax returns and other local laws every month. … Read more

GST e-invoicing module- Curbing tax evasion

GST e-invoicing module- Curbing tax evasion

E-invoicing is a common B2B practice involving exchange of an invoice between a supplier and a buyer in an integrated electronic format. Businesses may have a number of reasons to use e-invoicing. Commercial considerations are likely to drive a company’s decision to adopt e-invoicing, as the administrative costs and processing times for issuing and processing electronic documents are typically far lower than those for traditional paper documents. The savings come not only from reducing printing and postage costs, but also from adopting integrated processes for all invoice-related tasks. Since the introduction of GST (Goods and Service Tax) in the Indian … Read more

Recent amendments in real estate taxes

Recent amendments in real estate taxes

Starting a real estate business isn’t for the faint of heart now. GST (Goods and service tax) announcements favors the developer community by making it flexible choosing between old GST rates with Input tax credit (ITC) or the new reduced GST rates of 5 % without ITC. The new tax structures for real estates solved the transition issues on ITC for the ongoing projects and provided a relief for developers. The 33rd GST council meeting recommended a much needed breather to real estate sector which is beneficial for builders / developers as well as the customers. These changes will … Read more

RBI eases External Commercial Borrowings

RBI eases External Commercial Borrowings

India has always encouraged capital inflows as a part of the development policy. Deficient domestic capital and reduction in the current account compelled the government historically to go after foreign capital. Foreign capital is money obtained from foreign countries to make investment domestically. The major category is foreign investment including FDI (Foreign Direct Investment) and FPI (Foreign Portfolio Investment). Likewise, there are other types of foreign capital like trade credit, NRI Deposits and the most important one for India – the External Commercial Borrowings (ECB).

ECB is a loan which is being availed by an Indian entity from a non- … Read more

Insight to new rules of Input Tax credit

Insight to new rules of Input Tax credit

India could face a tax landmine with authorities beginning to question input tax credit claimed by companies in lieu of Goods and Services Tax (GST) paid by their vendors. The authorities have already started sending notices to businesses, confirming fears that scrutiny will increase in the new financial year as the government looks to plug leakages. While paying tax on any output, you can diminish the tax you have already paid on inputs and pay the balance amount referring to input tax credit (ITC). Everyone has to pay taxes on the purchase of a product / service from a registered … Read more

India-US agreement for Country by Country reporting

India-US agreement for Country by Country reporting

India and United States of America signed an inter- governmental agreement for exchange of country- by –country (CbC) reports on March 27, 2019. This enabled both the countries to exchange CbC reports filed by the ultimate parent organizations of multinationals in respect of jurisdictions, pertaining to the years commencing on or after January 1, 2016. Since there was no agreement between India and U.S before which resulted in a situation where CbC reports are required to be filed locally in India, even if the ultimate parent entities of the international group that were in U.S. had filed the CbC reports … Read more