Tax Planning:- Do you know you can save income tax in legally ways????

We often investment in various schemes but are you aware weather investment made by you can save your income tax. One can use tax saving investments effectively, to achieve financial goals. Now-a-days every one believes in investment but a part of it there is one more benefit that is tax saving. So considering your points we are giving below in nutshell some of the popular deductions, benefit of which can be taken by taxpayers to reduce their tax burden.

 

  1. Save your tax under section 80C

To promoting the culture of investment government has introduced and approved few schemes by which you can save your taxes. Take a look and do remember the brief of the following few schemes by which you can save your income tax,

Make sure the deduction can be claimed upto Rs.150000 for combination of all investments

  1. Any sums paid or deposited by the you as a PREMIUM OF LIFE INSURANCE for your family.
  2. A contribution by an individual to any PROVIDENT FUND
  3. Contribution by an employee to an approved SUPERANNUATION FUND;
  4. Subscription to any UNITS OF ANY MUTUAL FUND referred to in clause (23D) of section 10
  5. TUITION FEES (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter
  6. Principal paid towards loan take for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property”
  7. as term deposit for a fixed period of not less than five years with a scheduled bank; and
  8. Five year time deposit in an account under the Post Office Time Deposit Rules, 1981.
2. Save your tax under section 80D

The Section 80D deals with the medical insurance. This section allows you to save tax on premiums made for medical insurance for yourself and on behalf of your family.

As mentioned before, Section 80D will help you in tax saving on medical insurance premiums only. The deductions allowed are as follows:

For Self and Family:

  • Maximum deduction of Rs.25,000 per year on health insurance premium for self and family.
  • Maximum deduction of Rs.30,000 per year if you are a senior citizen.

For Parents:

  • Maximum deduction of Rs.25,000 per year on health insurance premium paid on behalf of parents.
  • Maximum deduction of Rs.30,000 per year on premium payments for senior citizen parents.

Additional Deduction:

  • A deduction of Rs.5,000 can be claimed every year on expenses related to health check-ups. This limit includes the check-up expenses of all members in a family, including spouse, kids and parents.

Note:-The health insurance premium paid for the following members in a family are eligible for deductions of Self/Spouse/Children/Parents

3. Save your tax under section 80E

Deduction in respect of interest on loan taken for higher education.

This section allow you to claim tax deductions on the interest paid. the principal component is not available for a tax break. You can claim the benefit for a loan taken for your or your spouse’s or children’s education.

There is no qualifying limit on the deduction you can claim for the interest. However, there are certain rules for eligibility to deductions under Section 80E:

4. Save your tax under section 80EE

Deduction in respect of INTEREST ON LOAN taken for Residential House Property .This is a new section which has been introduced for the sake of further benefit to tax payer but with the few conditions

The deduction shall not exceed Rs.50000 but the deduction shall be subject to the following conditions, namely:—

(i) the loan has been sanctioned between 1st day of April, 2016 and ending on the 31st day of March, 2017;

(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed Rs.35 lakh rupees;

(iii) the value of residential house property does not exceed Rs.50 lakh rupees;

(iv) the assessee does not own any residential house property on the date of sanction of loan.

5. Deductions in respect of rents paid under section 80GG.

Usually HRA forms part of your salary and you can claim deduction for HRA. If you do not receive HRA, and make payments towards rent for any furnished or unfurnished accommodation, you can claim deduction under section 80GG towards rent that you pay.

Deduction –the lowest of these will be considered as the deduction under this section-

(a)    Rs 5,000 per month

(b)   25% of total Income (income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also income is before making deduction under section 80GG).

(c)    Actual Rent less 10% of Income (income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also income is before making deduction under section 80GG).

There are many more ways by which you can save your maximum income tax. if you have any query regarding your income tax you can freely call us at +91-9971627975

8 important points to know before filing your INCOME TAX RETURN

Its time to file your income tax return as income tax department has already issue the relevant forms and you all must have got Form-16 or Form-16A, but before filing your return make sure the relevant following points otherwise it may create trouble for you. Take a look which you need to know about filing income tax return.
  1. Due Date of filing of return

The due date of filling of return whose tax audit is not mandatory is 31st July 2017, so don’t forget to file your return before its too late because loss of current year cannot be carry forward if return not filed before the due date.

  1. Don’t forget to claim rebate under section 87A

The major benefit that government has given is rebate of tax, which means you no need to pay income tax if your income tax liability is upto Rs.5000 (whose net income does not exceeds Rs.5,00,000)

  1. Declare your house property income and losses

House property is a source of income which we often forget to declare. It is more important to declare your house property losses because only the house property loss which can only be set off against the Salary income, so don’t make such mistake and claim your losses.

  1. Declare your Interest from Saving bank and Fixed deposit

Most of the time we don’t remember such income because this interest automatically credited in your bank account and you are not aware of it. In past few years assesses got notices from income tax department just because they didn’t declare interest. It is recommended to show your interest in income tax return.

  1. Link your Aadhar card with PAN

It is not mandatory to link your aadhar number with PAN, but relief has been provided to those who don’t have aadhar but aadhar enrolment ID number will be mandatory. The benefit of linking Aadhar with PAN is you no need to send your ITR acknowledgement at Bangalore.

  1. Claim the TDS deducted

Before filing your income tax return you can see you TDS deduction in Form-26AS. It is good practice to check Form-26AS as you can claim it against your income tax liabilities.

  1. Schedule of Asset & liabilities

If your income is more than Rs. 50 Lakh then you have to declare your assets and liabilities details in your income tax return.

  1. Cash Deposited between 09/11/2016 to 30/12/2016

If you have deposited cash Rs.2 Lakh or more during demonetization then make a report of such deposit in your income tax return. It is recommendation to declare such transaction because income tax department has already information about you.

 For Further query you can contact us at +91-9971627975

Reduce your GST Liabilities by taking the benefit of GST paid on input goods or services

As we all know GST is a business reform and the major purpose of bringing GST is to stop bogus billing and fake invoice which result s in revenue loss,so government has made it fully affords to clarify the provision of input tax credit. In the GST law ‘input’ has been defined in layman language which means ‘which is not capital goods’, so any input tax which is used for the purpose of business can be claimed as input tax credit.
You will have to remember the provisions on which you cannot claim the benefit of input tax credit which has been mentioned as follow:
  1. You cannot avail benefit of GST paid by you on MOTOR VEHICLE but in following businesses you can avail benefit as ITC                                                                                                                                                                  a. further supply of such vehicle or conveyances                                          b. Transportation of passengers/goods                                                        c. Imparting training on driving, flying
  2. GST paid on PERSONAL USE of foods , beauty treatment, health
  3. Membership of club fees
  4. Renting a cab (fare paid to driver of OLA or UBER driver)
  5. Life insurance (GST includes on premium paid)

The above mentioned expenses are of personal use that’s why government has not allow the benefit of ITC on such expenses.

  1. When you purchased goods from a dealer who has opted for composition scheme
  2. When goods are STOLEN/DESTROYED/distributed as a FREE SAMPLES

Input Credit on CAPITAL GOODS:- One of the major benefit that government has given to the tax payer the you can avail the input benefit of GST paid in ONE YEAR. As present laws provides for 2 years.

Now a question arises in mind, what is capital goods?? The definition of capital goods is very simple and easy to understand. We have broken the definition in very simple way which is as follow

  • Value of capital goods is capitalized in books of accounts
  • It is used or intended to be used for business

First point clarify that if you capitalized in books of account as a capital assets not as an input, and second point says it used for business purpose not for personal use.

Removal of capital goods after use:- If you remove capital goods after usage then you have to pay GST on higher of the following :-

  1. Sale value of such capital goods
  2. Percentage of input reduced as government may prescribe. 

Important point to be note:

  1. If depreciation claimed on depreciation part then GST paid on capital goods cannot be claimed.

 

GST : Important FAQs on JOB WORK

 
Job work is an significant industry in economy. The manufacturing industry now-a-days is mostly depends on the job worker. So we are here with our new relevant topic with would definitely help you in understating the taxation provision on job work. As we all know, in job work principal send goods to job worker without payment of tax.

Job work” means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression “job worker” shall be construed accordingly.

Principal” means a person who is sending goods .he should be a registered person.

Now following questions are arisen in mind as a job worker or while doing business with job worker.

  1. Will value of goods supplied by principal be included in turnover of Job worker?

No, as it shall be included in Principal turnover.

  1. How will turnover be calculated?

GST has provided an exemption to small persons having turnover of 20/10 lakhs, so while calculating turnover material supplied by principal will not be included, only job worker service part will be considered.

  1. Can intermediate products be sent for job work?

Yes,  for the purpose of job work, input includes intermediate goods.

  1. Is it necessary to bring input first in principal place and send thereafter to the job worker?

No,  it can send directly from the place of input supplier to jobworker.

  1. Which goods can be sent for job work.

 Input and capital goods can be sent for job work.

  1. When should input or capital goods be brought back?

Input and capital goods shall be brought back within a period of 1 year and 3 years, respectively.

  1. Can goods be dispatched directly from the place of job worker?

Yes.  Goods can be sent, even such goods can export directly from the place of job worker.

  1. Who is responsible for tax?

It is the principal responsibility to pay tax.

  1. What if input and capital goods are not returned within 1/3 years?

GST shall be payable as if goods and capital goods were supplied by principal to job worker and delivery challan shall be deemed to be an invoice.

  1. Can input tax credit be claimed if goods sent out to job worker?

Yes, but subject to conditions as may be prescribed.

Note:- Delivery challan may be issued by consigner instead of tax invoice. Delivery challan shall be prepared in triplicate.

  1. What if goods sent to job worker prior to 01/07/2017 and returned after 01/07/2017?

GST will not be payable If goods sent out to job worker before 01/07/2017 and received back before 31/12/2017.

 For further you can mail us at setmybizin@gmail.com

GST on Imports and Exports supplies

As you know that exports are priority of country and government has always given benefit to the exporter in some forms. In the present laws government has given many benefit to the export in terms of refund of input credit, exemption, duty drawback, zero percent tax on export  etc,
In this article we have tried to explain provisions of GST on export and import in simplified manner so that it can make it easy for you to understand the implication on your business.
GST provisions on Exports:-                          

A. Exports means talking goods out of india to a place outside india

Under the GST government have given the following incentives to the exports:

1. Exemption from GST on FINAL PRODUCT

2. Refund of GST paid on inputs

B. Exports are zero rated supply under the GST law and exporter can take benefit of input tax. The register person can claim refund of input tax in the 2 ways :

1.  Supply goods under bond or LTU without payment of IGST

2.  Supply goods in payment of IGST and claim refund of IGST paid                   on goods or services

C. Cases where refund of input tax cannot be claimed

1.  Where credit has accumulated on account of rate of tax on                          input is higher than rate of tax on output.

2.  Goods exported are subject to export duty.

3. Supplier avails duty drawback or claim refund of IGST paid.

GST provisions on Imports:-

Imports means bringing goods into india from a place outside india.

Supply of goods imported into india will be treated as inter-state supply and IGST will be payable on the value and at the rate as may be prescribed by council.

Compensation on import of goods

This is the new tax which is being levied by government on imported goods. If goods are imported into india then GST compensation cess will be levied at the prescribed rate on imported value.

Note:- Rate of exchange for determining the value of taxable goods or services shall be the date on which point of taxation arises in respect of such supply

 

For further query you can mail us at setmybizin@gmail.com. Feel free to contact us

 

 

 

GST : Impact of GST on E-Commerce operator

E-commerce business growing faster day by day. Amazon, Flipkart, Uber etc and many more are entering into the ecommerce business. As you know when a customer place a order through portal, the E-commerce companies pass these order to actual supplier of goods and services then supplier supply the goods and services to a person that is unknown to him.
In this post we have tried to cover the effect of GST on E-commerce and it effects on your business, if you are running a business of E-commerce then find the answer to your questions.

What is the Tax implication on E-commerce operator BEFORE GST ?

Earlier the E-commerce companies were not liable to VAT/CST as they were not selling goods so their services were brought under the service tax.

What is the Tax implication on E-commerce operator AFTER GST ?

  1. Who will be considered as a Ecommerce operator?

“Electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

“Electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

  1. Is it mandatory for E-commerce operator to get GST REGISTRATION?

Yes , there is no threshold limit for E-commerce operator and they are liable to get register themselves irrespective of the value of supply made by them.

  1. Is there any tax deduction liabilities on Ecommerce operator?

Now under the GST they are liable to deduct TCS of supplier @1% and     E-commerce company the shall paid to the government within 10 days from the end of the month in which such collection is made. The actual supplier can take benefit of this 1% TCS.

  1. Date of filling the statement with the government

Further E-commerce operator is required to submit statement to the government within 10 days after the end of such calendar month.

  1. Is there any annual compliance on E-commerce operator?

Ecommerce operator is required to file annual statement before 31st December of the following financial year.

  1. What if ecommerce operator does not have any physical presence in india?                                                                                                                             a. Where an E-commerce operator does not have a physical presence in the taxable territory, any person representing such ecommerce operator for any purpose in the taxable territory shall be liable to pay tax.                b. Where an E-commerce operator does not have a physical presence in the taxable territory and also does not have any representative in the said territory, such E-commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such shall be liable to pay tax.

 

Are you ready for GST ?

Businessmen is really worry about GST. We a team of professionals assist you in making your business simplify. Over 1000 business use setmybiz daily to implement GST in their business.

For further query you can call us at +91-99716 27975.

GST rates lower for 66 items, Limit inceresed to Rs.75 lakh for traders/manufacturer/restaurant owner.

A one more big relief given by government under the GST by cutting the rate on 66 items after considering the 133 items.  Further the government has also increased the threshold to Rs.75 Lakh for composition scheme earlier it was Rs.50 lakh.

AT Glance provision of Composition scheme

CGST Act provides that an eligible person who is  registered under the GST act, whose aggregate turnover in the preceding financial year did not exceed Rs.75 lakh, may opt to pay, an amount calculated at the rate of:

  1. 1% of turnover in case of traders;
  2. 2% of turnover manufacturer and
  3. 5% of turnover in case of restaurant owner.

Rate of few goods which has been revised:-

Earlier                         Revised          

  1. Insulin                                       12                              5
  2. Agarbatti                                   12                              5
  3. Aluminium foil                          28                             18
  4. CCTV                                          28                             18
  5. Cashew nut                                12                              5
  6. Salt, all types                              5                               0

Movie tickets costing Rs 100 and below will now attract 18%, against 28% proposed earlier, while those above Rs 100 will continue to attract 28% GST.

GST: 7 Type of documents to be maintained at Place of Business….

Books of accounts is a term which is used to record the transaction of your business and documents can be of hardcopy or softcopy like invoices, debit note, credit notes etc…Now under the GST it become necessary to maintain books of accounts and one of the important role of document is input credit. GST law has clearly mention the conditions on the basis of which input credit is claimed and one of which is ‘’maintaining invoices’’ without which you cannot claim Input credit which is paid by you on getting goods and services for your business.
Where to maintain books of Account???

Under the GST every registered person has to keep and maintain the records, at the PLACE OF BUSINESS in electronic or other forms. Place of business has been specifically defined under the CGST bill 2017 which includes

  1. a place from where the business is ordinarily carried on includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods services or both;
  2. a place where a taxable person maintains his books of account; or
  3. a place where a taxable person is engaged in business through an agent, by whatever name called;

Every owner or operator, of a place of storage, or every transporter whether such owner or operator or transporter is registered or not, shall maintain records and other relevant details as may be prescribed.

Type of documents to be maintained

Every registered person shall keep and maintain, at his principal place of business, a true and correct account of the following: –

1. Production or manufacture of goods;

2. Inward supply of goods or services or both;

3. Outward supply of goods and/or services or both

4. Stock of goods;

5. Input tax credit availed;

6. Output tax payable and paid; and

7. Such other particulars as may be prescribed in this behalf.

What if you have multiple businesses at multiple locations?

In case of multiple places of business, the accounts relating to each place of business shall be kept at the respective places of business concerned. Hence, all records are to be maintained at each place of business.

Persons who own/ operate any warehouse, godown, etc. for storage of goods and every transporter should maintain the records of the consigner, consignee and other relevant details of the goods, even if such persons are not registered under the Act – i.e., both registered and unregistered persons shall be required to maintain such records/ details.

Period for which accounts and records to be maintained

Normally retained until the expiry of 72 months from the due date for filing of Annual Return for the year pertaining to such accounts and records.

For further query you can contact us at +91-99716 27975 

GST: Composition Scheme for small manufacturers, traders and Food/restaurent services

This scheme would be available only to certain eligible taxable persons. This scheme is specifically introduced by government to give relief to the small businessman. A similar concept is also present in state vat laws which the government has followed in the GST laws. The best part of this scheme is that this Scheme will be applicable for all goods, Now before moving to the concept of composition levy you should know the person who cannot take the benefit of this scheme
  1. Person making supply of goods which are not liable to GST
  2. Person making inter-State outward supplies
  3. Person making supplies through an e-commerce operator
  4. Manufacture of notified goods
  5. Person collecting GST
  6. Person taking input tax credit

Note:- Before exercising the option the taxable person should make an application to pay tax under this scheme

There are three possibilities in which such option can be exercised:

  1. Taxable Person migrating from existing registration to GST registration
  2. Taxable Person obtaining new registration under GST laws
  3. Taxable Person paying tax under normal levy in one financial year and wants to opt for composition scheme in next financial year, under the GST regime

Composition scheme is not available for services:

Suppliers of services i.e. service providers are excluded from opting to pay tax under composition scheme, except composite supply, by way of or as a part of any service, (i.e. food/restaurant services) for which specifically 5% rate has been prescribed.

Rate of tax:

The rate of tax would be as under:

  1. 2% of the turnover in case of MANUFACTURER
  2. 5% of the turnover in case of Food/Restaurant Services.
  3. 1% of the turnover in case of other suppliers (like traders / agents)
Eligibility to pay tax under composition scheme:

Only those taxable persons whose ‘aggregate turnover does not exceed Rs.50 lacs in the last financial year will be eligible to opt for the composition scheme.

The Government, by notification and with recommendation of Council, is empowered to increase this threshold limit up to Rs.1 crore.

Benefits of Registering under GST Composition Scheme
  • Limited Compliance:  Under the composition scheme, the taxpayer is required to furnish quarterly return only, and thus he need not worry on record keeping and can focus on his business.
  • Limited Tax Liability : Another benefit of getting registered under the composition scheme is that the tax rate for such taxpayer is nominal under the GST Law.

Note:-

  1. he shall mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply issued by him; and
  2. he shall mention the words “composition taxable person” on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business.

For further query you can consult us at +91-9971627975

10 Must know person who are required to get GST registration

GST REGISTRATION

Registration is a concept in which a specified authority grant a unique identification number to particular person so that they can be easily identified by concerned authority. It is the most fundamental requirement for identification of any business and for having compliances. Here we are talking about GST registration which is also called GSTN.

Now come to the GST, where every supplier who makes taxable supply is required to get GSTN in the state from where he supplies.

The registration is required if aggregate turnover in a financial year exceeds Rs.20 Lakh and Rs.10 Lakh for special category states i.e Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Now the most important point is the supplier who is liable for registration will have to take a separate registration even though such supplier may be supplying from more than one State as a single entity. The application for registration shall be made within 30 days from the date when he becomes liable for registration.

CASUAL TAXABLE PERSON or a NON-RESIDENT TAXABLE person shall apply for registration at least five days prior to the commencement of business.

A person having multiple business verticals in one State may obtain separate registrations for each of the business vertical, subject to prescribed conditions.

Condition where a supplier shall NOT BE LIABLE FOR REGISTRATION:

(a) if his aggregate turnover consists of only such Goods and/or Service which are not liable to Tax or wholly exempt from tax under this Act.

(b) an agriculturist, to the extent of supply of produce out of cultivation of land

Condition where a supplier shall BE LIABLE FOR REGISTRATION:

  1. persons making any inter-State taxable supply;
  2. casual taxable persons making taxable supply;
  3. persons who are required to pay tax under reverse charge;
  4. persons who are required to pay tax (electronic commerce operator)
  5. non-resident taxable persons making taxable supply;
  6. persons who are required to deduct tax (TDS), collect tax at source (TCS);
  7. persons who supply goods or services or both on behalf of other registered taxable persons whether as an agent or otherwise;
  8. input service distributor;
  9. every electronic commerce operator;
  10. every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

For further query you may mail us at setmybizin@gmail.com