R A R E And ASSOCIATES_Tuticorin

What is the CIBIL Score? The CIBIL Score is a 3 digit numeric summary of your credit history. The Score is derived by using the details found in the “Accounts” and “Enquirers” sections on your Credit Information Report (CIR) and ranges from 300 to 900. The closer your Score is to 900, the more favorably your loan application will be viewed by a credit institution. The Score plays a critical role in the loan approval process. What does my score Mean? The score tells a credit institution how likely you are to pay back your loan based on your past pattern of credit usage and loan repayment behavior. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence better the chances of your application getting approved. What are the major factors that affect my score? There are 4 (Four) major factors that affect your score. These are described below. Late Payment or Defaults in the Recent Past: Your Payment hi...

GENERAL The reconciliation statement to be prepared for the period from July 2017 to March 2018 for the financial year 2017-18. The reconciliation statement to be filed for every GSTIN separately in cases where the multiple GSTIN exists for one PAN. Reconciliation statement to be prepared for the ANNUAL TURNOVER declared in audited Annual Financial Statement with the turnover as declared in the Annual Return (GSTR 9) . [GSTR 9C - Part I) TAX PAYABLE as per declaration in the reconciliation statement(GSTR 9C-Part I)   and the actual tax paid as declared in Annual Return (GSTR 9) INPUT TAX CREDIT (ITC). Audited Financial Statement for the financial year 2017-18 to be divided for two periods for the period from 01st Apirl, 2017 to 31st June 2017 and for the period from 01st July 2017 to 31st March 2018 The reconciliation statement to be certified by a chartered accountant. POINTS TO BE CONSIDERED FOR  ANNUAL TURNOVER RECONCILIATION In cases where One...

TRANSACTION VALUE: Why analysis of transaction value is more important for arriving taxable value of any supply? Unlike Central Excise which relies upon ‘assessable value’ for qualifying the duty, GST relies upon ‘transaction value’ for qualification and there appears to be no room to include notional additions. As per section 15(1) of CGST Act, 2017 “The value of a supply of goods or services or both shall be the TRANSACTION VALUE , which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the PRICE is the sole CONSIDERATION for the supply ” As per section 15(2) the value of supply shall include:- (a)… (d) (e) Subsidies directly linked to the price excluding subsidies provided by the central government and state government. The term ‘Consideration’ defined in the act under section 2(31) as Consideration in realtion to the supply of goods or services or both include...

In this case assessee (male/female below 60 years) having salary/business or professional income/income from other sources of Rs 7,85,000/- (including saving bank account interest Rs. 10,000/-) and living in a house/flat acquired with borrowed funds, will be required to pay no tax as under: Net Income from Salary/Business/Profession Other Sources                             Rs. 7,85,000 Income From House Property                   (Fully self occupied)                                                  Nil Less: Interest on funds borrowed                                             Rs. 2,00,000         ...

A much needed clarity given by circular 40/14/2018 GST dated 6th April,2018 to trade and administration. The clarity sought by local tax administration as much as local bodies explained below Form for LUT: Earlier the (exporters) were required to download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner. Now, the registered person (exporters) shall fill and submit FORM GST RFD-11 on the common portal and the LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated on-line. Document for LUT: Earlier, self deceleration by the exporter to the effect that he has not been prosecuted should suffice for the purposes of Notification No. 37/2017- Central Tax dated 4th October, 2017.  Now, by this circular it has been clarified that no such document needs to b...

Eligibility: Between 18 to 70 years. Loan should be repaid when the borrower is 70 years old. Loan Amount: The amount of loan will be determined considering such factors as  applicant's income and repaying capacity age assets and liabilities cost of the proposed house/flat. To Enhance Loan Eligibility: One could add income of spouse/son/daughter. They should have a steady income and their income should be routed through an bank account The expected rent accruals if the house/flat being purchased is proposed to be rented out. Self employed could also add depreciation and other regular income and all sources. Security: The loan shall be secured by equitable mortgage of the property. In case the property is not mortgagable, then other tangible security of adequate value like NSC, Life Insurance Policies could be furnished. Repayment Period: maximum 25 years or up to the age of 70 years of the borrower which is early. Income Proof: Original sal...

RETURN FILING: GSTR1 and GSTR3B filing will be allowed to continue for next 6 months New simplified (?) monthly return will go live in 6 months with one return for a month except composition dealers and nil return filers who allowed to file quarterly returns. In new return seller can upload their invoices any time during the relevant period and check the same. Input credit will be automatically calculated by the system based on the invoices uploaded by the sellers. B2B dealers will need to file invoice wise details of all outward supplies made by them , the system will automatically calculate their tax liability. In case of supplier defaulted in payment of tax above a threshold limit, such a supplier will not be allowed to uploaded their invoices and this will not be allowed to avail any input credit. Comments: To file the new simplified return every entity need to account and file their details in real time basis. Based on the volume of their data entity ...

Construction of flats, complex, building have a lower incidence of GST as compared to a plethora of Central and State Indirect Taxes suffered by them under the earlier regime. Central Excise Duty was earlier payable on most construction material @ 12.5%. It was higher in case of cement. In addition, VAT was also payable on construction material @212.5% to 14.5% in most of the states, Input Tax Credit of the above taxes was not allowed for payment of Service Tax. Credit of these taxes was not available for payment of VAT on construction of flats etc.,. Under composition scheme. Thus there was cascading of input taxed on constructed flats etc. as a result, incidence of Central Excise Duty, VAT, Entry Tax, etc., on construction material was earlier being borne by the builders, which they passed on to the customers as part of the price of flats charged from them. This was not visible to the customers as it formed a part of the cost of the flat. The earlier headline rate of service ...

Goods Transport Agency (GTA) in GST: To be covered under GTA services a person needs to provide service in relation to goods transport by road AND issues consignment note (by what ever name called) by which lein on the goods transfered to the transporter and the transporter becomes responsible for the goods till its safe delivery to the consignee. Hence to be qualified as GTA the service provider should be necessarily issuing a consignment note. Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA. GST is charged @ 5% when input was not availed by GTA and the service receiver is liable to pay tax . However the service receiver shall take input credit on GST paid. When the service is provided to un registered person, GTA is liable to pay tax not the service receiver.  GST is charged @12% when input was availed by GTA and the GTA itself is liable to pay tax not the service receiver. No GST charged by...

Intra State E-Way Bills: Staggered Rollout From April 1 interstate movement of goods will need generation of e-way bill State have divided into four groups for the purpose of E-Way bills implementation The mechanism will be rolled out in a staggered manner, with one new zone be added every week. will try and complete the rollout of intra-state E-Way bills by April end. Reverse Charge Mechanism: The reverse charge mechanism has been extended by three months Relief For Exporters: The tax relief for exporters has been  extended by 6 months. Exporters presently availing various promotion schemes can now continue to avail such exemptions on their imports up to october1, by which time an e-wallet scheme is expected to be in place to continue the benefits in future. Council directed GSTN to expeditiously forward the balance refund claims to the customs / Central / State GST authorities, as the case may be, for their immediate solution and disbursal. Return Fili...

Long Term Capital Gain: If an asset was held for more than one year, then sold for a gain, is a Long Term Capital Gain(LTCG) includes conversion of capital asset into stock in trade. Tax Rate: Taxed at the rate of 20%. Scheme: Income tax act allows deduction in respect of LTCGs if invested in Long Term Specified Assets Long Term Specified Assets: Any bond issued by National Highway Authority of  India Rural Electrification Corporation Limited Quantum of Deduction: Case 1: If the amount invested in specified asset >= Capital gain then entire capital gain is exempt Case 2: If the amount invested in specified asset < Capital gain then to the extent of amount invested Maximum to the extent of Rs 50 Lacs Conditions For Availing Exemption: The investment has to be made within a period of 6 months from the end of the month in which the transfer takes place. The specified asset should not be transfered within a period of 3 year...

Eligibility to Export Under LUT: All registered persons who intend to supply goods or services for export without payment of Integrated Tax (IGST) should apply. He should not be prosecuted for any offense under GST act or any of the existing law for an amount exceeding two hundred and fifty lakh rupees Validity: valid for the whole financial year in which it is tendered. In case goods not exported within the time frame and fails to pay the tax amount then the LUT is deemed to be withdrawn. Form for LUT: Form GST RFD 11 available for download in CBEC website untill the time its made available in common portal of GST. Documents for LUT: Self declaration to the effect that the conditions of LUT have been fulfilled shall be accepted unless there is specific information otherwise. Time of Acceptance of LUT: Should be accepted within a period of three days. if not accepted with in a period of three working days from the date of submission, it shall deem...

Eligibility: File GSTR-3B of the relevant tax period for which refund is to be sought. File GSTR-1, providing export details in Table 6A of GSTR1 along with shipping bill details and having integrated tax levied. Claiming of Refund: NO separate refund application required, shipping bill itself shall be considered as refund application. Processing of Refund: Export data as filed in GSTR1 (Table 6A) after validated with GSTR 3B will be shared with ICEGATE. Customs validate GSTR 1 data with their shipping bill and EGM data. On sucessful matching of data refund will be processed. Once the refund payment credited to the account of the tax payers -> ICEGATE system shares the payment information with the GST Portal -> GST portal inform the tax payer through SMS and e-mail Further Clarification regading Refund: Contact corresponding ICEGATE jurisdictional officials. Bank Account for Refund: The refund amount will be credited in the bank account ma...

Scope of power of Attorney: Its not an instrument of transfer in regard to any right, title or interest in an immovable property. Its a creation of agency where by grantor authorizes the grantee to do the acts specified there in. This is quite common in the case of NRIs who invest in india but are not in a position to sign the various documents or do the follow-up on these investments. All the actions taken by the attorney under the PoA are the actions of the grantor Income Tax on (guarantee) power of attorney holder: As attorney acts as an agent he is not taxable under tax laws for the acts done or receipts or incomes received by him on behalf of the grantor. However the tax officers may raise tax demand on the attorney as recent income tax tribunal decisions are in their favour. It is advisable to take the following precautions (preventive measures) to minimize the risk of such amounts being treated as income of attorney. Preventive Measures: Funds received ...