Life Style,News

GST – All You Need To Know

admin,   29 May , 2017  

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India is ready for GST, are you? Know every thing about GST here and stay updated to avoid any loss.

  • GST is now on the path to be implemented from July 1st, 2017.
  • Types of taxation in GST
    • IGST : Integrated GST
    • CGST : Central GST which with replacement CST
    • SGST : State GST which will replace VAT
  • WEF from June 1st, 2017 : Migration towards enrolment of GST will start till June 1st, 2017.
  • Registration certificates will be issued online
  • There will be no check post for 1 year. Only mobile check posts will be in full force. All intelligence officers will be dormant for sometime.
  • 5 forms on different dates have to be submitted every month
    • R1 form on 10th
    • R2 form on 13th
    • R3 form on 15th
    • R4 form on 17th &
    • R5 form or final returns on 20th
      You cannot file revised returns at all. Once filed on 20th is final.
  • Tax payments will be accepted only by e payments. Tax Payments via credit & debit card also added.

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  • In the present VAT system you upload sales & purchases every Quarter. In GST you have to upload every sale & purchase bill every month.
  • Be careful , every thing in GST is system driven. Once uploaded you cannot revise anything. No officer can help you in this. They can only pity the mistake!!!
  • Your firm rating will be done by the system. Based on the rating audit trials will be conducted.
  • Proposed e-sugam for ₹50,000 & above value only.
  • Proposed rates of GST in percentage are 0, 5, 8 , 12, 18 , 28 & 40
  • 1st time in the history of independent India 4 major category of businesses will be covered : Education, Textiles, Medical & Professional services.
  • You need to submit 17 documents for migration to GST.
  •  Most products MRP to come down.

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  • Distribution and C&F channel under threat of becoming redundant
  • All these categories which were not taxed will now be taxable : Replacements/ return goods, Barters , Free Samples, disposables, scrap material. For example : if you buy a 40 inch led TV from a shop for ₹30000 & return back your old TV in exchange for ₹4000, you have to pay tax on ₹34000.
  • All movements of material will be taxable like : Head office to branch office (stock transfer), factory to C&F agent, godown to shop.
  • All books & records to be maintained on daily basis.
  •  The GST officer has all rights to value your goods & fix the price. The law will decide Valuation of the product at Various levels like : Manufacturing, wholesalers, distribution & retailers. For example if Kissan is selling Jam for ₹150 & Patanjali is selling the same Jam for ₹120. (Same quantity, flavour, ingredients etc) Then Patanjali has to pay tax on ₹150.
  • You will need a full time accountant in your shop/office to maintain books under GST.
  • All travel & tour expenses related to business have to be claimed under firm name.

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  • If your vendor does not upload his bills within 180 days , you will not get tax credit.
  • You cannot claim credit for material in stock beyond one year.
  • They propose that You have to dispose all your old stocks purchased under VAT/CST within September 2017.
  • All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017.

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Life Style

11 ways to save tax LEGALLY

Sanyam Mittal,   12 Sep , 2015  

easy tax saving

tax saving is not illegalsaving tax is awesomeIf you are reading this, you are likely to be someone whose income exceeds the threshold of ₹ 2.5 lakhs for paying tax. There are some legitimate ways of saving taxes and the good thing is that most of them also help you grow your wealth. These options usually have a lock in period and vary in the nature and amount of return they provide. You must also remember that each of these alternatives also serve specific purposes and tax saving is not the purpose but an ancillary benefit of that.


1. ELSS Tax Saving Mutual Funds

ELSS or Equity Linked Saving Schemes, are a kind of equity linked mutual funds.  As they invest in equity or stocks, ELSS funds have the ability to deliver superior returns – 14-16% over the long-term. That’s a full 6-8% above inflation.This return is not guaranteed though but historical evidence suggest that these returns are achievable over the long-term.

ELSS funds have a lock in period of only 3 years – the lowest among the options available. The return from ELSS funds is also tax-free. More…

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