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2017
  • It’s has been over 60 days since government demonetised 500 and 1,000 rupees notes. It was a major decision which had its impact on all sections of the society. Demonetisation has given a new direction to the way people do monetary transactions in India. Just like a coin has a flip side, demonetisation too has its advantages and disadvantages.

Advantages of Demonetisation

  1. A major advantage of demonetisation is that it helped the government track black money. Large sums of black money was kept hidden by tax evaders. Demonetisation helped government uncover huge amount of unaccounted cash. According to estimates made by RBI, people have deposited more than rupees 3 lakh crores worth of black money in the bank accounts. This has helped the government in slowing down the plague of parallel economy.
  2. A major reason behind demonetisation was that a big part of black money was being used for funding terrorism, gambling, in inflating the price of major assets classes like real estate, gold and other social evils. Demonetisation is acting as an effective countermeasure against such activities. Now all such activities will get reduced for some time and also it will take years for people to generate that amount of black money again and hence in a way it helps in putting an end this circle of people doing illegal activities to earn black money and using that black money to do more illegal activities.

Archive


2017

This Article discusses about:

  • Meaning of presumptive taxation scheme,
  • Presumptive Taxation Scheme of Section 44AD,
  • Section 44ADA, Section 44AE,
  • For whom the presumptive taxation scheme of is designed?,
  • Businesses not covered under the presumptive taxation scheme,
  • No need to maintain books of account as prescribed under section 44AA,
  • Eligible taxpayer and eligible business for the purpose of the presumptive taxation scheme.

2017
  • ESI Gross limit has been increased from Rs. 15,000 to Rs. 21,000 with effect from 1st January 2017.
  • Therefore, Employee with gross salary upto Rs. 21,000 will be under the net of ESIC.

2016
  • Goods and Services Tax (GST) is by far the most significant and comprehensive reform in Indian taxation history. Every business, small or big, is bound get impacted by it. Therefore, it becomes all the more important to prepare for GST well in advance. Should GST roll out from April 2017, this is your 7 point list that need your attention for seamless transition to GST:
    1. Re-vamp ERP: Your ERP structuring has to undergo a major change, be it coding or invoice generation. Be it purchase order booking or expense recording. The first thing that needs attention is ERP.
    2. Modify contracts: Companies, in practice, enter into annual contracts. Therefore, many contracts entered today would speak of delivery of service/ goods post April 2017 also i.e. post GST. Make sure an appropriate addendum is made to contracts to align it with GST.

2016

INTRODUCTION:

  • Tax point or time of supply provided under revised Model GST Law is different from current scenario. In excise, time of supply is removal of goods. In service tax, point of taxation is date of invoice and date of payment subject to date of completion of service. However, in VAT Laws, tax point is date of invoice since sale cannot be made without invoice. But under GST, provisions for time of supply of goods and services have been provided separately to avoid such ambiguities. Here we are providing decoding of time of supply under GST Model Law.

DECODING OF TIME OF SUPPLY OF GOODS

  • Revised Model GST Law has defined the time of supply of GOODS under 4 categories:
    • Time of supply of goods under forward charge.
    • Time of supply of goods under reverse charge.
    • Time of supply in case of supply of vouchers.
    • Residuary clause.

2016
  • Finally, anti profiteering will become a reality in lieu of Section 163 incorporated under the Revised Model GST Act, 2016. It must be known that the GST Council secretariat has issued the revised model GST Act,2016 through CBEC on 25.11.2016.

Section 163. Anti-profiteering Measure

(1) The Central Government may by law constitute an Authority, or entrust an existing Authority constituted under any law, to examine whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him.
(2) The Authority referred to in sub-section (1) shall exercise such functions and have such powers, including those for imposition of penalty, as may be prescribed in cases where it finds that the price being charged has not been reduced as aforesaid.

Financial Management