Income Tax department attaches benami properties worth Rs 39 billion

Show cause notices for provisional attachment of benami properties were issued in over 1,500 cases.

Business News : Income tax department has provisionally attached benami properties of over Rs 39 billion in more than 1,200 cases, the Finance Ministry informed the Rajya Sabha today.

In a written reply, Minister of State for Finance Shiv Pratap Shukla also said the tax department has identified more than 1,600 benami transactions till end-February.

“Show cause notices for provisional attachment of benami properties were issued in over 1,500 cases and provisional attachment has been made in over 1,200 cases.

The value of properties under attachment is over Rs 39 billion,” he said.

In another reply, Shukla said till date, in three phases of ‘operation clean money’, the income tax department has identified around 22.69 lakh persons whose tax profile was found to be inconsistent with the case deposits made by them during the demonetisation period.

“Total case to the tune of Rs 5.27 lakh crore has been found to be deposited in bank accounts in case of these 22.69 lakh taxpayers during demonetisation period,” Shukla said.

However, the unaccounted income in such transactions, if any, can be quantified only after completion of the verification/assessment process.

→ Benami Property Act ←

GST: What happens if person files return but doesn’t make payment of taxes?

Under the GST law, the filing of return without payment of taxes shall not be considered as a valid return.

GST FAQs :

I understand that the applicability of GST on reverse charge basis has been suspended. In this scenario, I want to know if the notification is also applicable on import of services for which we are paying GST on reverse charge basis?

• In case of import of services, the integrated tax is payable under Section 5(3) of the Integrated Goods and Service Tax Act, 2017 (IGST Act). The liability to pay GST under reverse charge has only been deferred in respect of transactions falling under Section 5(4) of the IGST Act, which only covers procurements made from suppliers not registered under GST law. Accordingly, import of services shall continue to be liable to Integrated Tax under reverse charge mechanism.

Who can opt for the composition scheme? Is liability to pay taxes under reverse charge mechanism covered under the composite scheme?

• The GST law provides an option to a supplier of goods, having an annual aggregate turnover not exceeding Rs 10 million, to opt for payment of GST under Composition Scheme. A similar option has also been provided to a person engaged in the supply of food/beverages (other than alcohol). However, this option is not available for other service providers. This option is also not available if the supplier is engaged in undertaking inter-state supplies.
• The GST payable under reverse charge mechanism is not covered under the composition scheme. If a person registered under composition scheme procures any goods/services on which GST is payable under reverse charge mechanism, the person shall be required to pay GST at applicable rate and not based on rates prescribed under composition scheme.

What happens if the taxable person files the return under the GST law but does not make payment of taxes?

• Under the GST law, the filing of return without payment of taxes shall not be considered as a valid return. Section 2(117) defines a valid return. It means, a return furnished under sub-section (1) of Section 39 on which self-assessed tax has been paid in full. It is only the valid return that would be used for allowing input tax credit (ITC) to the recipient. In other words, unless the supplier has paid the entire self-assessed tax and filed his return and the recipient has filed his return, the ITC of the recipient would not be confirmed.

→ GST Identification Number ←

GST: What is an e-way bill and why is it important? All you need to know

A trader opting to discharge GST liability under the composition scheme will not be eligible to claim input tax credit of GST paid on inward supplies.

Business News : What is an e-way bill ?

• An e-way bill is a document that a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 is required to carry. It is a mandatory document that is generated from the GST Common Portal by registered persons or transporters who undertake movement of goods. A transporter needs to generate the e-way bill before the movement of goods commences.

Is there any scheme under GST for payment of taxes by small traders?

• Composition levy is an alternative method of levying tax that is designed for small taxpayers whose turnover is up to Rs 10 million. This scheme is optional and is meant mainly for small traders, manufacturers and restaurant owners. However, it is not available to a trader engaged in inter-state supplies. Further, a trader opting to discharge GST liability under the composition scheme will not be eligible to claim input tax credit of GST paid on inward supplies.

In the pre-GST regime, a special economic zone (SEZ) customer was required to provide Form A-2 to claim exemption from payment of service tax. Will a service provider be required to obtain a similar form from his customers for not charging GST?

• Under the pre-GST regime, a service provider was not required to charge service tax on his invoice for services rendered to an SEZ customer if the latter provided Form A-2 wherein he was authorised to receive specified services from such service providers.
• However, under GST law, there has been a change of procedure.
• Under this law, supplies to SEZs have been treated as zero rated subject to execution of Letter of Undertaking/Bond by the service provider. GST law doesn’t require the SEZ customer to provide any specific form (such as Form A-2 under the service tax law).

If the GST rate on outward supply is less than the GST rate on inputs, what will be the treatment of input tax credit that gets accumulated? If refund is available, then at what time can one apply and within what time will one get it?

• GST law contains a specific provision wherein the supplier of goods or services can apply for refund of input tax credit accumulated on account of inverted duty structure, except for a few categories.
• The refund can be applied for before the expiry of two years from the date on which the claim for refund arises. Further, the supplier would be granted provisional refund within seven days from the receipt of acknowledgment from the tax department.

Click to Read More → GST Eway Bill

From chocolates to cutlery: 200 items cheaper as GST cuts notified

The government formally notified the lower rates, including on chocolates, waffles, furniture, wristwatches, cutlery, suitcases, ceramic tiles and articles of cement.

GST News : Eating out and a little over 200 products of mass consumption, including detergents and ceiling fans, became cheaper from Wednesday with the lower goods and services tax (GST) rates taking effect.

The finance ministry has told citizens to remember this while purchasing these. The government formally notified the lower rates, including on chocolates, waffles, furniture, wristwatches, cutlery, suitcases, ceramic tiles and articles of cement.

The GST Council, chaired by Finance Minister Arun Jaitley, had on Friday in Guwahati decided to cut rates on these items to provide relief to consumers and businesses, amid an economic slowdown. The Council pruned the list of items in the top 28 per cent GST slab to 50, from the earlier 228.

Another 176 had the rate cut from 28 per cent to 18 per cent — chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave deodorant, detergent and washing power, razors and blades, cutlery, water heaters, batteries, goggles, wristwatches and mattresses, among others.

The tax on wet grinders, tanks and armoured vehicles was reduced to 12 per cent from the peak rate. And, a uniform five per cent tax prescribed for all restaurants, both air-conditioned and not.

Broadly, in the highest tax slab are what are termed luxury goods and ‘sin’ goods — pan masala, aerated water, beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, air conditioners, dish washing machines, washing machines, refrigerators, vacuum cleaners, cars, two-wheelers, aircraft and yachts.

Rate on six items were reduced from 18 per cent to five per cent, on eight items from 12 per cent to five per cent, and on six items from five per cent to nil.

Click here to Know → Full List of GST rate

5% GST at restaurants from today: Why your food bill may still not change

AC restaurants and non-AC restaurants will charge 5% GST, down from 18% and 12% respectively

GST News :  Eating out at restaurants will get cheaper as GST council, which lowered the tax rate to a uniform five per cent from 12 per cent on non-AC restaurants and 18 per cent on air-conditioned ones comes into effect from Wednesday.

Currently, air-conditioned restaurants levy a charge of 18 per cent on food bill and non-AC restaurants levy 12 per cent tax.

As the new rate comes into effect today, here’s how it will impact you:

The Downside

• Menu prices: According to a report by Scroll, restaurant owners have been mulling a price rise on their menu. This is because of the high rent they have to pay at expensive locations, loss of input tax credit and competition from big eateries. Several restaurant owners are not convinced that a lower tax will make up for the loss of input tax.
• Input tax credit: Many restaurant owners have indicated that the move may drive prices up, courtesy withdrawall of input tax credit. Under input tax credit, businesses can claim an offset on the tax paid on inputs against the tax paid to the government. But, now the Council has done away with the tax credit on food items used as raw material.
• According to Federation of Hotels and Restaurants Association of India President Garish Oberoi the input tax credit accounts for three to four per cent of a restaurant’s profit, the report added.

The Upside

• You won’t need to burn a hole in your pocket in order to dine at fancy AC restaurants. From 18 per cent tax to five per cent, you will be saving 13 percentage points tax on your food bill.
• Similarly, at non-AC restaurants, you will be saving 7 percentage points tax on your bill as the same has been slashed from 12 per cent to five per cent.
• Want to just chill and order food at home instead? No worries as delivery apps such as Zomato and Swiggy will be delivering food from restaurants that will charge you the revised tax rates i.e five per cent.

Click here to Know → GST on Restaurant Bills

Govt extends deadline for return filing of audit reports to November 7

CBDT has revised e-filing ITR preparation utilities for filing all types of ITR forms and tax audit report

 

 

The government has decided to extend until November 7 the last date for e-filing of income tax returns for those taxpayers who file audit reports.

A senior official said the Central Board of Direct Taxes (CBDT) took the decision to extend the deadline by a week, considering the "representations made by various stakeholders".

This is the second extension given to them after the first deadline expired on September 30 and it was extended until October 31.

Tax practitioner bodies had sought an extension from the government, saying they needed more time to file returns for entities where tax audit report or transfer pricing report or other audit reports are prescribed to be filled.

Among other things, they had cited non-availability of clerical staff at chartered accountants' offices due to the GST rollout as a reason.

"This year, professionals are busy in making compliance with GST obligations... the technical glitches in the system have aggravated the problems," a federation had said in a representation to the CBDT, the policy-making body of the Income Tax Department.

Besides, the CBDT has revised e-filing income tax return (ITR) preparation utilities for filing all types of ITR forms, tax audit report, the federation had said.

Click here to Know → Deadline for Filing Return

Last date for filing GSTR-2, 3 extended by a month

GSTR-2 is the most important return for GST compliance since the availability of input tax credit depends on it

The government on Monday once again extended the deadline for filing the goods and services tax (GST) returns for purchases and input-output transactions for July.

The last date for filing purchase return, or GSTR-2, was extended to November 30, from October 31. That of input-output transactions, or GSTR-3, was put off to December 11, from November 10.

“To facilitate trade, the last date for filing GSTR-2 and GSTR-3 for July 2017 has been extended to November 30 and December 11, respectively,” a government tweet said.

Archit Gupta, chief executive officer, ClearTax, said, “The earlier last date for filing GSTR-2 coincided with the deadline for submission of audited income tax returns and as such was putting a strain on some taxpayers.”.

GSTR-2 is the most important return for GST compliance since the availability of input tax credit depends on it.

M S Mani of Deloitte said that the extension will enable many more taxpayers to file returns. “The challenges faced by some of the taxpayers in dealing with mismatches in GSTR-2 would hopefully get resolved in November,” he added.

Click to know more → GST Deadline

Tax evasion: Real estate coming under GST? Council to decide at Nov meet

Aadhaar could be made mandatory for buying international air tickets, cars

 

 

Real estate is often seen as one of the worst sectors in so far as tax evasion is concerned. To address this issue, the government might soon move to bring it within the ambit of goods and services tax (GST).

Finance Minister Arun Jaitley indicated this on Thursday while speaking at Harvard University in the US. The GST Council, at its November meeting in Guwahati, would consider covering the sector under the new indirect tax regime, Jaitley said.

While delivering a lecture on tax reforms in the country, he called the taxation system in India one of the least efficient in the world, with a very small tax base. He also hinted at making Aadhaar mandatory for buying a car or international air tickets in the future, taking a cue from the recent Supreme Court judgement.

The GST was rolled out on July 1, replacing a large number of indirect taxes with one unified tax of five rates. Petroleum, real estate, and alcohol were kept out of its ambit.



“The one sector in India where maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estate. Some of the states have been pressing for it. I believe that there is a strong case to bring real estate into the GST,” Jaitley said.

The stamp duty, which is outside the GST, has complicated the tax structure for real estate. A lot of states had opposed the inclusion of the stamp duty in the GST, as it was a source of revenue for them.
“Some states want; some do not. There are two views. Therefore, by discussion, we would try to reach one view,” he said.

A 12 per cent GST is levied on construction of a complex, building, or civil structure intended for sale, wholly or partly. However, land and other immovable property have been exempted from the GST. If real estate is brought under the GST, the final tax would be almost negligible, Jaitley added.

Read the Full Article → Real Estate under GST

Over 20 lakh biz due to file final GST returns in 6 days

The final GSTR-3, matching GSTR-1 and 2, is to be filed by November 10

 

 

As the deadline for filing the final GST returns for the first month of GST nears, the Sushil Modi-led Group of Ministers has asked the IT backbone provider GSTN to send reminder text messages to 20 lakh businesses which are yet to submit the tax forms.

In its second meeting, the Group of Ministers (GoM) asked the GST-Network to brace for the rush of last-minute filers.

The last date for filing of final sales returns for July in GSTR-1 form is October 10, while the date for uploading of purchase returns in GSTR-2 is October 31.

The final GSTR-3, matching GSTR-1 and 2, is to be GST filing by November 10.

"So far 33 lakh businesses have filed GSTR-1 for July, while 53 lakh had filed the initial GSTR-3B returns.
So 20 lakh more businesses have to file in the next six days," GoM Chairman and Bihar Deputy Chief Minister Sushil Modi said.

"We appeal to people to file the returns on time. Infosys has prepared a list of businesses who are yet to file returns. GSTN will be sending out mobile messages to these 20 lakh businesses reminding them to file returns," he said.

Besides, the GoM has also asked Infosys, which has prepared the back-end of the GST Network portal, to be prepared to handle the load that would come for GSTR-2 filing between October 11 to 31.

The GST Council in its meeting on October 6would be apprised of the deliberations of the GoM and the improvement in... Read Full Article

Excise on petrol, diesel cut by Rs 2/L; Govt may suffer Rs 26,000 cr loss

This comes at a time when diesel in Delhi scaled an all-time high of Rs 59.14 per litre

 

 

Facing public resentment over the recent spike in fuel prices, the government on Tuesday cut the excise duty on both branded and unbranded petrol and diesel by Rs 2 a litre from Wednesday. According to sources, the finance ministry was initially reluctant to reduce the duty due to revenue concerns, but relented after discussions with the petroleum ministry on implementing steps to bring down petrol prices to Rs 60-65 a litre.

While this would hit the revenues of the exchequer by Rs 13,000 crore in the second half of the current financial year at a time when the fiscal deficit has already touched 96 per cent of the Budget Estimates, consumers will get relief as the move would reduce the consumer price index (CPI)-based inflation rate by 9 basis points as a first round impact.

“(The) government has reduced the basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 a litre with effect from October 4, 2017. The revenue loss on account of these reductions will be about Rs 26,000 crore in a full year and Rs 13,000 crore in the remaining part of the current financial year,” the finance ministry announced on Twitter.

This comes at a time when diesel in Delhi scaled an all-time high of Rs 59.14 a litre, while other cities, too, saw a considerable increase in prices. The petrol price in Delhi was at a two-year high of Rs 70.88 a litre on Tuesday. Currently, taxes constitute the excise duty of Rs 21.48 a litre, 30 per cent of the price of petrol, and Rs 17.33 a litre, 29 per cent, of the price of diesel.

Devendra Pant, chief economist at India Ratings, said the move would reduce the CPI inflation rate by around nine basis points, with petrol accounting for eight basis points and diesel one basis point. The CPI inflation rate rose to 3.36 per cent in August from 2.36 per cent in July.

While the revenue loss from the excise cut for the remainder of FY18 was not very large, it would exacerbate the concerns posed by other fiscal risks, such as the decline in the surplus transferred by the RBI and the possibility of shortfalls in inflows from disinvestment, etc,.... Read Full Story

One nation, one tax: Nearly 3 million GST returns filed in August

Almost half came on final day; Network chief says system stood up to huge test and all glitches would be soon resolved

 

 

As many as 2.97 million assessees have filed the summary input-output return under the new goods and services tax (GST) for the month of August (‘GSTR 3B’), much less than the 4.6 million that came for the month of July.

As many as 46 per cent of filers — 1.37 million — submitted Income tax return on Wednesday, the deadline for doing so.

However, the July returns had risen after an extension of five to eight days was given to assessees, depending on whether they wanted to claim input tax credit for pre-GST stocks or not. The GST Network (GSTN), the entity handling the information technology backbone for the new structure, is hopeful that return filing would equal the tally of July.

→ Income Tax Filing ←  → Income Tax efiling ←

Even if the same number of filers are there for the month of August as in July, proportionately it would be much less. This is so because there were only 5.95 million registrations under the GST in July, excluding those opting for the composition scheme. Now, a little over nine million businesses have registered under the GST. Of this, around one million was for the composition scheme; these may file quarterly returns.

Taxes to the tune of Rs 95,000 crore were collected in the maiden month of the roll-out. The central GST (CGST) and state GST (SGST) laws mandate an interest levy at 18 per cent for delayed payment of tax. And, Rs 100 a day will be levied for... Read Full Article

Over 1.9 million file GST returns

GSTN hopes number will double by deadline

 

As many as 19,42,354 taxpayers have till Wednesday filed IT return for July under the new goods and services tax (GST) regime. Officers of the GST Network (GSTN), responsible for the information technology (IT) backbone of the GST, said they hoped 2.8 million more would do so by the deadline in the next two days.

Those who have filed returns constitute over 22 per cent of total assessees (8.7 million) under the GST regime. However, of the 8.7 million assessees, 2.2 million are yet to complete the migration process to the new indirect income tax regime.

The GSTN, also managing the tax filing apparatus, has geared up the income tax return network to handle the rush, its Chairman Navin Kumar said. A last-minute rush caused the GSTN portal to crash last week, forcing the government to extend the deadline by five days to August 25.

Those who wish to claim transitional input tax credit can file returns by August 28.

Sudhir Singh, MD of Marg ERP, a solution provider for GST returns, said over 1.9 million filers was not really a big number, but the numbers would swell by the deadline. He added that his clients were finding it difficult to file returns....Read Full Article

Get ready to file first returns before Aug 20: GST chief tells companies

Navin Kumar said, 'We are working on the assumption that 50% of the people will come on last day'

 

 

Millions of companies in India are still not ready to file their first IT return under the new Goods and Services Tax (GST) ahead of 20 August deadline, a top official told Reuters, urging them not to leave things to the eleventh hour.

Navin Kumar, chairman of the GST Network, also said barely half of the 34 service providers accredited to help firms bulk-file invoices online had received approval to go live.

Yet he gave an assurance that the huge IT back end that is designed to crunch up to 3 billion invoices a month and calculate companies' taxes would be stable, even if there is a last-minute rush to file. → Efiling Of Income Tax  ←

"It will not crash," he told Reuters in an interview. "We are working on the assumption that 50 per cent of the people will come on the last day."

Billed as India's biggest-ever tax reform, the GST has replaced a slew of federal and state levies. It has also cleared barriers between India's 29 states, uniting its 1.3 billion people into a common market for the first time.   → Income Tax Efiling ←

Yet the complexity of the tax - which has main rates of 5, 12, 18 and 28 per cent and multiple exceptions - has raised concerns that companies will struggle to comply and file their monthly returns on time.

Even before the GST filings kick in, business surveys showed both the services and manufacturing sectors contracting at their fastest rate in years, heralding a likely dip in indirect tax revenues.......Read Full Article

A step-by-step guide for obtaining your GSTIN

The GST registration process has been reopened from June 25 and will continue for the next 3 months

 

Under the VAT and Service Tax regime, TIN number and Service Tax Registration Number were issued by the state and the Centre. However, under the Goods and Services Tax (GST) regime, all taxation will get consolidated into a single platform and taxpayers will be registered under a single authority. All the taxpayers who migrate and register under GST will receive a GSTIN — Goods and Service Tax Identification Number. Here is what the GSTIN format looks like-

→ Income Tax Filing ←  → Tax Filing ←  → IT Return ←

Under the GST regime, every business providing goods and services with a turnover exceeding Rs 20 lakh is required to register as a normal taxpayer. This registration is important because only a registered business can avail benefits like the seamless flow of Input Tax Credit (ITC) on their raw material purchases.

The GST registration process has been reopened from June 25 and will continue for the next 3 months.

How to get a GSTIN
1. Log on to that GST online portal www.gst.gov.in
2. Go to 'Register Now' and fill in Part A of the application with your name, e-mail ID and mobile number
3. The portal will verify your details by sending an OTP to your mobile and email
4. Once the verification process is completed, you will receive the Application Reference Number (ARN) via mobile or email
5. Now you can fill Part B of the application using the ARN. The documents you will require in this step include:
→ Photographs
→ Constitution of taxpayer
→ Proof(s) of place of business
→ Bank account details
→ Authorisation form
6. Fill in all the information and upload all the documents that are required in the application and submit the application using DSC or Aadhaar OTP

Penalties for not registering under GST → Read Full Story

Demonetisation effect: Direct tax mop-up grows 15% to Rs 1.42 lakh cr in Q1

Overall advance taxes, both personal and corporate, grew by 11.9% to Rs 58,783 crore

 

 

Advance tax paid by individuals recorded 40 per cent growth in the first quarter (April-June) of the current financial year.

This could be an impact of the demonetisation of high-value currencies, with more non-corporate entities recording higher incomes.

Overall income tax direct collection after refunds expanded by 14.8 per cent to Rs 1.42 lakh crore over the corresponding period in 2016.

“The government has benefited from demonetisation, as people have started reporting higher income,” Sushil Chandra, chairman of the Central Board of Direct Taxes, told Business Standard.

Overall advance taxes, both personal and corporate, grew by 11.9 per cent to Rs 58,783 crore. Advance tax is paid within a specified period after the money is earned, rather than waiting for the end of the financial year.

Electronic filing of income tax returns up to June for 2016-17 grew by 18 per cent, suggesting that more people regularised their unaccounted income. “People are aware now that the income tax department is carrying out lots of searches and surveys and that black money will not be tolerated any more,” said Chandra.

“Last year, we cleared a lot of pending refunds for the year-ago period, whereas there are no pending refunds of the past fiscal (year) this time,”........ read source

GST regime: New MRP rules released, defaulting manufacturers to be fined

Govt has given 3 months time to reprint revised MRPs under the Packaged Commodities: Paswan tweeted

 

 

The government on Tuesday warned that legal action will be initiated against manufacturers for not printing the revised MRP post rollout of the GST.

Food and Consumer Affairs Minister Ram Vilas Paswan said the government has given three months time till September to reprint the revised maximum retail price (MRP) with the implementation of the landmark Goods and Services Tax (GST).

In a series of tweets, Paswan said that prices of some commodities have fallen, while some have increased with the implementation of GST.

Get all the query on →  Income Tax Efiling  ←

"Fall in prices due to lower GST should be passed on to consumers. ...The government will take legal action against vendors not declaring revised MRP after GST," he said.

The revised rates should be displayed on commodities so that consumers are aware what is the MRP of each item after GST, he added.

"The government has given time till September to reprint the revised MRP under the Packaged Commodities Rule," he said.

GST, launched at midnight of June 30, has subsumed all value added tax (VAT) and Octroi. Read More...

GST in Kashmir: Traders march against new regime with black flags; detained

A special session of the state legislature began today to discuss GST implementation

Police on Tuesday detained several traders after they tried to march towards the Jammu and Kashmir Legislative Assembly to protest the implementation of GST in the state in its present form.

The traders were detained near the gate of the Civil Secretariat complex, which also houses the assembly, after they took out a protest march, police said.

The traders were scheduled to hold a sit-in near the assembly to protest the implementation of the new tax regime in the state in its present form, claiming that it would lead to the erosion of the state's special position and its fiscal autonomy.

Holding black flags and shouting slogans against the GST, several traders reached Jehangir Chowk here to protest.

They tried to march towards the civil secretariat complex, but police swung into action and detained several of them outside the Civil Secretariat,the police said.

A special session of the state legislature began today to discuss the issue of implementation of GST in the state... read more...

Twitter records over 1 mn conversations on GST between June 30 and July 2

Twitter recorded over one million conversations on the goods and services tax between June 30 and July 2 — reflecting the sentiment of the nation on what is being billed as the largest tax reform since Independence.

From #GSTIndia to #GSTForCommonMan, people took to Twitter to express their opinions about the GST.

India ushered in the GST regime on the intervening night of June 30 and July 1. A four-tier tax slab — 5, 12, 18 and 28 per cent — has been decided. People have also been posting pictures on various social media platforms of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/service tax earlier.

"Conversations around the launch of the GST exemplify Twitter as the best place for people to connect with what’s happening in India and around the world and express their opinions,” Twitter India Head of Public Policy and .... read more...

Want us to carry your goods? Show GST number first: Transporters to traders

This is being done to avoid collecting taxes from sender and depositing with the govt

 

 

Transport companies are now insisting traders furnish their GST numbers before accepting goods for transportation anywhere. Traders who have not acquired GST numbers will not be entertained, some transporters told Business Standard.

Ashok Shah, chairman of V- Trans, a large Mumbai-headquartered logistics company and past chairman of Bombay Goods Transport Association confirmed the development. He said, "Octroi being subsumed in GST is a big relief and will save both, time in transit and fuel.

However, for transporting goods, the sender's GST number is required, because given the way tax provisions for transporters have been structured, that becomes necessary".

Under the old tax regime, transport services suffered 5 per cent service tax. That rate has been retained under GST. However in their business, transporters did not have to be registered, collect taxes from the sender on rent or transport charges and deposit them with the government.

This responsibility vested with the sender who paid transport charges. He was responsible for depositing the tax with the service tax department... read more...

Looking to buy a home? Ready-to-move-in apartments to cost more despite GST

Normally, ready properties are priced 20-30 per cent higher than those under construction

 

 

Though ready-to-move-in apartments have been kept out of the Goods and Services Tax's (GST's) ambit, they will continue to cost more than those under construction.

Normally, ready properties are priced 20-30 per cent higher than those under construction.
"Ready properties always cost more. Earlier, too, there was no service tax on ready properties but developers always charged more premium on them," said Sandeep Runwal, director at Runwal group, a Mumbai-based developer.

Amit Bhagat, chief executive officer at ASK Property Investment Advisors, said that since buyers have to pay GST they have to take a call whether they will make their contribution upfront and buy ready apartments or buy an under-construction apartment and make a staggered payment over the next five years.

Under-construction properties carry a tax rate of 12 per cent under GST.

"Ready apartments are not affordable for first-time buyers and they always prefer to go for staggered payments given their rising income levels, age and so on," Bhagat said.

He said that depending on the price of the product, the GST burden will increase on the end-consumer if the property is priced above Rs 6,000 per sq ft... read more...