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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.

2016

Key changes in Revised Model GST Law and suggestions invited for submission to Government

  • Taking into consideration majority of the concerns raised by the Trade and Industry, the Government has, on November 26, 2016, released the Revised version of the Model GST Law along with Draft GST Compensation Bill. Apart from addressing key concerns of the Industry in a very decent manner, the Revised Model GST Law has also proposed an anti-profiteering mechanism to ensure benefit of lower taxes is shared with consumers, and also ensures no tax on securities and subsidies provided by the Government.
  • The Draft GST Law is a model which the Central Government and each of the State Governments would use to draft their respective Central and State GST Acts. Further, a Revised Model of the Integrated GST Act, 2016, which will govern levy of GST on inter-State supplies by the Central Government, is also issued.

Financial Management