Blog

2017
  • Indian exporters are worried about the advent of GST and the liquidity crunch it could create for them. The crunch and issues connected to GST administration could adversely affect their overall competitiveness.
  • The Finance Ministry has recently assured exporters that 90 percent of taxes paid will be refunded within seven days. This is certainly good news for exporters. However, given that GST is a new system involving both the central government and states, the speed with which refunds will be issued remains a source of concern.
  • Exports are exempt from many domestic indirect taxes under the current tax regime. This will change once GST kicks in. GST is imposed every time value is added so manufacturing exporters will have to pay GST at various stages, beginning with raw materials. This will likely increase production costs and working capital requirements.

Archive


2017
  • Let us have a bird’s eye view for the GST return preparation and due dates for the month of July 2017 and August 2017.
  • There have been widespread concerns over the smooth rollout of GST and there were some glaring concerns from trade and industry. These have led to a decision by the government that for the first two months of the GST implementation, GST would be payable basis a simple return form – Form GSTR-3B. This will contain a summary of outward and inward supplies and you need to submit this before 20thof the succeeding month.

2017
  • The term “profiteering” means making unreasonably high profits in the course of ordinary trade or business. The government of India is committed to protecting consumers from profiteering during the implementation of the Goods and Services Tax (GST) regime. In its efforts to prevent profiteering and ensure the proper levy of GST in India, the government will incorporate an anti-profiteering clause.
  • Since goods and services are taxed at multiple stages of the supply chain, any change in tax structure or tax rates creates an opportunity to improve profit margins at each stage. Thus, the Indian government intends to take measures to ensure that benefits accrued due to the introduction of the indirect tax regime are duly shared with consumers in the form of reduced prices.
  • Under the anti-profiteering clause in GST (Section 163), the central government is authorised to examine whether input tax credits claimed by any registered taxable person result in a “commensurate reduction in the price” of goods and services sold by that person. The central government is authorised to impose penalties in the event such price reductions are not implemented. However, the law is not intended to quash all profits — it’s designed to protect consumers from undue exploitation.

2017
  • As a non-resident Indian have you been grappling with the constant challenge of how various incomes would be taxed in your home country and in India? Are your decisions related to remittances, investments, property purchases and rentals marred at the thought of taxes?
  • Though tax laws in different countries are difficult to fathom, they aren’t as perplexing as you thought. Take for instance the income from abroad. The ground rule is that income which is earned outside India by an NRI is not taxed in India.
  • Similarly, there are a host of other incomes that aren’t taxed in India, but may or may not be touched in the country you are residing in. We present a simple guide for Non-resident Indian to assist them in saving taxes by understanding which income will be exempt and which won’t.

2017
  • A taxpayer has to comply with ‘paying’ income tax and ‘filing’ income tax returns every year. Though it is important to file the tax returns within the due date, this doesn’t mean that he cannot file his income tax returns, in case he has missed filing it, due to some unforeseen reason.
  • But if a person has missed the deadline, he might have to face some penal consequences and might even get a notice from the IT department anytime. In addition to it, there are other consequences of filing belated taxes which may affect the total tax liability of the taxpayer. The Income Tax Act has prescribed certain penalties for late filing of tax returns.

2017
  • The last day to file your taxes is July 31 (extended to August 5, 2017, for Assessment Year 2017-18). We hope that most of you have filed your taxes by now. A wise man once said that in this world, only two things are certain - Death & Taxes. Both of these entities have a due date. We can’t know and plan for the deadline for the first one, but have you ever wondered what will happen if you miss the deadline for the second.
  • If you haven’t filed your Income Tax Return for any reason, then don’t take the situation lightly. Failing to file tax return on time can be pernicious. There is a lot to lose if you don’t hurry. Some people have a common misconception that there is nothing to lose if they have paid their taxes on time. Today, we will look at everything which you can possibly, if you squander the chance to file your Income Tax Return on time.

Lose the chance to revise return

  • If you made any error in doing your taxes, tax department allows you to file a revised return. However, you cannot file a revised tax return if you filed your original return late. You should file your return before the due date so that you do not lose any refund due to incorrect filing.

Financial Management