GST RETURNS

Every registered taxable person has to furnish outward supply details. A normal taxpayer has to submit three returns on a monthly basis and one such return annually. There are different returns for a taxpayer registered under the composition scheme. If there is no activity carried out in business, the business has to fie the returns. The return has to be filed and no paper returns will be acceptable in the GST regime.
The GST council has decided to relax the GST filing requirement for the first three months after GST implementation.
GST RETURNS
All registered taxpayers have to pay it thrice a month.
GSTR1 - Details of outward supplies, has to be filed by 10th of every month.

• The first GSTR-1 filing is now due only on 5th September 2017.
• If GSTR-1 filed on 5th September 2017 the taxpayer must file GSTR-1 on 20th September 2017
• If GSTR-1 filed on 20th September, the GST return due in August.

GSTR2 - Details of inward supplies, has to be filed by 15th of each month.
GSTR3 - it is monthly return and has to file 20th of every month. Compounding taxpayers have to file their returns on a quarterly basis.
GSTR5 - Return for non-resident foreign taxable person, 20th of the next month.
GSTR6 - Return for input service Distributor, 13th of the next month.
GSTR7 – Return for authorities deducting tax at source, 10th of the next month.
GSTR8 – Details of supplies effected through e-commerce operator and the amount of tax collected, 10th of the next month.
All returns are required to be filed digitally online through a common portal to be provided by GSTN, non-government, private limited company promoted by the central and state governments with specific mandate to build the IT infrastructure and the services required for implementing Goods and Services Tax (GST).
The Government has stated that no GST penalty will be levied for wrong or late filing of GST returns in the first two months of GST implementation.

This article is about GST Registration and SGST Registration for more information please visit our website: https://efilingportal.in

Income Tax on Interest from Savings Account

Section 80TTA of the income Tax Act deals with deduction with respect to interest income from savings Bank Account. Section 80TTA does not apply to interest income from fixed Deposits. Deduction u/s 80TTA is available to an individual assessee and also a HUF. Deduction is allowed for interest from savings Account held with a Bank, Co-operative society or a post office.
PURPOSE OF SECTION 80TTA
The reason for introducing this deduction into the income tax act is to promote savings among the salaried individuals. Taking lessons from the economic downturn in the US, India government has cotempted to act. This has led to drafting this provision in a record time of 6 months and introducing it in the Budget.
SECTION 80TTA DEDUCTION
The maximum deduction an individual or HUF can claim under this section cannot exceed Rs.10,000. It is hereby mentioned that this deduction is not available for interest from savings Accounts held by firms or BPOs.
APPLICABLE TO NRI
The ‘NRO Accounts’ do earn just like regular savings Accounts. Therefore, any interest earned by an NRI is also deductible under section 80TTA.
Interest earned on NRE Accounts is not covered under this section, because, such interest is already exempt from tax.
A NRI can claim interest Deduction under 80TTA, whether the account is maintained with a public sector or a Private Sector Bank.
RECURRING DEPOSITS COVERED UNDER 80TTA
As the words ‘Savings Account’ were clearly mentioned in the section, it is easy to conclude that any interest income earned from Recurring Deposits is not deductible under section 80TTA.
Any income from Recurring Deposits are liable to Tax and the payer shall also deduct TDS at the rate of 10%.
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Compliances Under Gst

A Tax invoice is an invoice issued by a registered dealer to the purchaser, showing the amount of tax payable. The invoice should be created in triplicate – Original for recipient, Duplicate for Transporter and Triplicate for supplier.

A return is a document that a taxpayer is required to file as per the law with the tax administrative authorities. Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an input service Distributor, a person liable to deduct or collect the tax (TDS/TCS)

TYPES OF RETURNS
GSTR-1 (Registered taxable supplier)
- Details of outward supplies of taxable goods and/or services effected.
- 10th of the next month

GSTR-2 (Registered taxable recipient)
- Details of inward supplies of taxable goods and/or services effected claiming input tax credit.
- 15th of the next month

GSTR-3 (Registered taxable person)
- Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.
- 20th of the next month

GSTR-4 (Composition supplier)
-Quarterly return for compounding taxable person
-18th of the month succeeding quarter

GSTR-5 (Non-Resident Taxable Person)
- Return for non-resident foreign taxable person
- 20th of the next month

GSTR-6 (Input Service Distributor)
- Return for input service Distributor
- 13th of the next month

GSTR-7 (Tax Deductor)
- Return for authorities deducting tax at source.
- 10th of the next month

GSTR-8 (E-Commerce operator/Tax collector)
- Details of supplies effected through e-commerce operator and the amount of tax collected
- 10th of the next month

GSTR-9 (Registered Taxable Person)
- Annual Return
- 31st December of next financial year

GSTR-10 (Taxable person whose registration has been surrendered or cancelled)
- Final Return
- within three month of the date of cancellation or date of cancellation order, whichever is later.

GSTR-11 (Person having UIN and claiming refund)

- Details of inward supplies to be furnished by a person having UIN
- 28th of the month following the month for which statement is filed.

This article is about GST Registration for more information please visit our website:eFiling Portal

One Person Company (Opc) Incorporation

One person company is a new form of business introduced by the companies Act, 2013. It gives a single promoter full control over the company while limiting his liability to contribution to the business. This person will be the only director and shareholder (100% Shareholder).
OPC INCORPORATION ELIGIBILITY

• A person who is Indian citizen and resident in India can incorporate OPC (resided in India not lesser than 182 days)
• Other legal entities cannot incorporate an OPC.
• A nominee should be appointed by the promoter during incorporation
• Business involved in financial activities cannot be incorporated as OPC.
• It must be converted if the paid up share capital is in excess of 5 Lacs and turnover is in excess of 2 Crores.

HOW TO INCORPORATE OPC?
Documents Required for Incorporating OPC
It requires

1. Passport size photos of the applicant
2. PAN Card of the applicant and nominee
3. Identity proof of Applicant (Voter ID/ Passport/ Driving License/ Adhaar)
4. Adhaar Card Copy of the Nominee.
5. Address proof of the Applicant & Nominee (Bank Statement/ Mobile Bill)
6. ONE PERSON COMPANY (OPC) INCORPORATION

Obtaining Digital signature (DSC)
It is obtained for the sole promoter for processing the incorporation.
DSC for Nominee need not be obtained.
Obtaining Director Identification Number (DIN)
Once Digital signature is obtained, DIN must be obtained for the promoter/Applicant.
Name Availability

• After DIN is obtained, the name approval should be submitted to the MCA.
• The name should be unique and description should be related to the business.
• The State in which Registered Office is situated should be mentioned carefully. Once the Approval is obtained you cannot change.
• There are six name options to submit and the name will be approved within one or two days.

Incorporation

• After obtaining name approval, other documents like affidavits and declaration of the sole promoter must be submitted.
• Form INC3 must be attached for the nominee.
• Approval is granted by the Registrar of companies within 2 to 3 days. If there is any issue the incorporation application can be asked for resubmission.

 For More Information Please visit our website: eFiling Portal

Procedure For Striking Off Limited Liability Partnership (LLP)

E-form 24 is required to be filed for striking off the name of the LLP under clause (b) of sub rule 1 of Rule 37 of LLP Rules 2008. Winding up of an LLP may be voluntarily or compulsorily.
Voluntary Winding up

• The partners may decide to stop and wound up the operations of the LLP voluntarily.

Compulsory winding up

• The Limited Liability Partnership may be wound up by the order of a Tribunal or court.
• If the company is unable to pay its debts.
• If there is no business activity for the continuous period of 1 year or more.
• If the company has acted against the interest of the sovereignty and integrity of India, the security of the state.
• If the company has made a default in filing of statement of Account and solvency or annual return with the Registrar for any five consecutive financial years.

Section 63, 64 and 65 of LLP Act 2008 governs the process for Winding up of LLP.
DOCUMENTS REQUIRED TO WIND UP LLP

• Board Resolution
• Affidavits from the Designated Partners
• Consent of the creditors
• Report regarding the current valuation of the assets of the LLP, by a recognized valuer.
• Statement of Accounts
• Statement of Assets, liabilities, Debts, etc.
• Indemnity Bond from the Designated Partners
• Authorization to make an Application
• Application of Closure
• Consent of the Designated Partners to strike off the LLP

PROCEDURE TO WIND UP LLP

• An application to the ROC in eform 24 along with consent of all partners for striking off the name of the LLP.
• The LLP must pass a resolution in favor of at least ¾th of its total number of partners.
• The majority of the designated partners shall make a declaration in the form of affidavit that LLP does not have any dues towards Income Tax, Sales Tax etc. and there is no litigation pending against the LLP and the information furnished is true to the best of my knowledge and belief.
• Then the registrar will send a notice to the LLP
• The Registrar shall publish a notice on its website for a period of one month for the general public.
• If no reply is received within the prescribed period, registrar may strike off the name of LLP as it deem fit.

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Inclusion Of Anti Profiteering Clause In Gst Regime

Anti-profiteering means to stop a person from earning unreasonable profit through sale of goods and services It mandates a manufacturer and others in the supply of chain to pass on the benefits arising out to input credit and lower taxes to consumers at the pain of penalty. The main intention is to protect consumers from inflation after GST implementation.
MAIN REASONS FOR ANTI-PROFITEERING CLAUSE
There are three main reasons which make this clause necessary is

• To set up honest pricing policy, this will help to retain consumers in the GST regime.
• To examine whether input tax credits or lower tax rates actually result in a commensurate reduction in price.
• To observe the inflationary trends during the initial stages of GST introduction and to analyze and control its long-term effects.

FEATURES OF ANTI-PROFITEERING CLAUSE

• A state wise single registration for a taxpayer for filing returns, paying taxes and to fulfill other compliance requirements.
  (Most of the compliance requirements would be fulfilled through online)
• A taxpayer has to file one single return state wise to report all his supplies, whether made within or outside the state or exported out of the country and pay the applicable taxes on them. (CGST, SGST, IGST etc.)
• A business entity with an annual turnover of up to Rs 20 lakh would not be required to take registration in the GST regime, unless it voluntarily chooses to do so to be a part of the input tax credit (ITC) chain.
• In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course of business except on a few items listed in the law.
• In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State law, it has been provided that the ITC entitlement arising out of taxes paid under the central law can be cross utilized for payment of taxes under the laws of the states or union territories.
• Detailed transitional provisions have been provided to ensure migration of existing taxpayers and seamless transfer of unutilized ITC in the GST regime.
• In order to mitigate any financial hardship being suffered by a taxpayer, commissioner has been empowered to allow payment of taxes in installments.
• To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority.

This Blog is About GST Registration for more information please visit our website: efilingportal

Government Loan Schemes For Small Scale Businesses

THE CREDIT GUARANTEE FUND SCHEME FOR MICRO AND SMALL ENTERPRISES

• It is launched by the Government of India to provide collateral free finance to the micro and small enterprise sector.
• The Amount is contributed by Government and SIDBI is 4:1 in ratio.
• It also provides credit facilities in the form of term loans and working capital facility of up to Rs.100lakh per borrowing unit.
• Rehabilitation assistance is also made available to sick units.

CREDIT LINK CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION

• Its main intention is to create an impact in the international trade.
• It is launched to facilitate technology up gradations by extending an upfront capital subsidy of 15% (max INR 15lakhs).
• The corresponding plant and machinery is important
• It is available to machinery to Sole Proprietorship, Partnership firms, Cooperative, Private and Public Limited Companies.

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

• SIDBI is one of the most illustrious names among the government financial institutions.
• It played an active role in the promotion and development of the small business industry.

Schemes provided by SIDBI

• Direct Assistance Scheme
• Indirect Assistance Scheme
• Promotional and Development Activities
• National Equity Fund, scheme
• Technology Development and Modernization Fund scheme
• Single window scheme
• Mahila Udyami Nidhi (MUN)
• Scheme and Equipment Finance Scheme

NATIONAL SMALL INDUSTRIES CORPORATION LIMITED (NSIC)

• The main feature is to import machines on hire-purchase terms.
• It promotes awareness about advancements in the small scale industries sector of the country.
• It highlight on supply and distribution of both indigenous and imported raw materials as well as exporting the products of the small business units.

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

• NABARD mainly came into existence to promote agriculture based rural business enterprises.
• It mostly offers financial assistance to small scale industries viz,. Cottage and village industry.

MARKET DEVELOPMENT ASSISTANCE SCHEME FOR MSMEs

• It offers funding for participation in international trade fairs and exhibitions under MSME India stall.
• It also offers financing for sector specific market studies by industry association, export promotion councils and FIEO.
• This scheme offers reimbursement of 75% of a one-time registration fee and 75% of annual fees paid to GSI by SMEs for the first 3 years for the bar code.

TECHNOLOGY AND QUALITY UPGRADATION SUPPORT TO MSMEs

• It aims to improve the production quality of MSMEs to encourage them to adopt global manufacturing standards.
• The main aim of this scheme is to sensitize the manufacturing MSME sector to make use of energy sufficient technologies
• And also the manufacturing processes to reduce manufacturing cost and emissions of harmful gasses that can hamper the environment
• The Indian government provides financial support to the extent of 75% of the actual expenditure to assist manufacturing sector purchase energy efficient technologies for production.

MINI TOOLS ROOM AND TRAINING CENTRE SCHEME

• The mission of this scheme is to develop more tool room facilities to provide technological support to the MSMEs
• The training in tool manufacturing and tool design to create a skilled workforce of workers, supervisors, engineers/designers.
• 90% of the cost of machinery/equipment in case a new Mini tool room is to be created.
• In case an existing room to be upgraded – 75% of the cost is funded.

MUDRA LOAN (Micro Units Development and Refinance Agency Ltd.)

• The vision of Funding the Unfunded.
• It is established by Government of India for development and refinancing activities relating to micro units.
• It provides low cost funding for MFI (Micro Finance Institutes)
• It also supporting to the institutions , societies, trusts section 8 companies, co-operative societies, small Banks, Scheduled commercial Banks and Rural Banks which are in the business of lending to micro or small business etc.

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