Some recent updates that you would not like to miss – 24.02.2017

1.    As per GST Rules, all UN bodies Consulate or Embassy of foreign countries and any other class of persons so notified will be required to obtain a Unique Identification Number (UIN) from GST portal so as to claim refund of taxes paid by them and for any  other purpose as may be prescribed. The number so obtained would be uniform for the Centre and all States in conformity with GSTIN structure.

2.    In case where the job worker is registered or the principal declares the place of business of the job worker as his additional place of business, only then it is permissible to supply the goods from the place of business of a job worker.

3.  Irrespective of whether attributable or not, assessee is not required to treat all business expenses comprising of administrative, finance, selling or marketing expenses as a part of cost of project.

4.    Under GST, separate invoice is to be issued for reverse charge and forward charge goods & services. Both cannot be clubbed together in single invoice. 

5.    Supreme Court directed all industrial units situated in severely polluted areas across the country to install primary effluent treatment plants (PETP) within three months, failing which they will be shut down.

6.     All Banks will be closed from 24th to 27th Feb on account of 24th – Shivratri, 25th – Fourth Saturday, 26th – Sunday and 27th – Bank Strike.

Have a nice day ahead!

How to Kickstart your Startup!

You might be wondering that what is a business startup? What benefits we get after registering a business startup? How a business startup gets registered online? How much it costs while registering such startup? What compliances need to be followed in this regard?

Answers to all your questions are here. Team ClicknFile helps you to know more and provide best advice.

Let us brief you some facts about registering a business startup.

Startups can be registered as Private Limited Company or One Person Company (OPC) or Limited Liability Partnership (LLP) depending on the needs and requirements of such business. On one hand, it’s easy to raise funds & loans from Banks, Financial Institutions, individual investors, corporate investors, private equity funding entities, venture capitalists etc. with Private Limited Company or OPC. On the other hand, if you wish to opt for lesser government intervention, relaxed audit requirements, lower formation & compliance cost then you must go for LLP.

Every form of business has its own pros and cons but helping you out in a unique & effective manner is what we offer. Our team of experts shall provide best piece of advice for which form of business to start. So let’s get rolling with ClicknFile and sit back while you get your business startup registered comfortably.

You may drop in your queries at team@clicknfile.in or directly get in touch with our finance experts @ 8872032114, 8872032116, 8872013116

Updates that you would not like to miss –

1.     Against the current threshold of Rs. 5 lakh, now if the amount of cash purchases of jewellery exceeds Rs. 2 lakhs, tax shall have to be collected at source at 1% from April 1 onwards.

2.      After due verification, Proper Officer can reject an application for registration of GST by giving a prior show cause notice and provide the person a reasonable opportunity of being heard.

3.      The I-T department is now planning to launch the next phase of 'Operation Clean Money' next month to close in on unaccounted money into banks but standalone deposits below Rs. 5 lakhs may be ignored for now.

4.      If TDS amount has been credited to Electronic Cash Ledger of the deductee, in that case no refund shall be granted to deductor under GST.

Have a great day ahead!

All you need to know about IEC number and related compliances !

Transacting in global market may appear to be a fascinating task but adhere to with its complexities might not so. If you wish to remit or transfer any money outside India via Banking channel, RBI has intervened for its safe and transparent transfer and issued few instructions to all the banks for not entertaining requests for transferring money abroad if customer doesn’t have 15CA CB certificate duly signed by a Chartere Accountant. While furnishing such certificate, a Chartered Accountant certifies that payer has deducted tax at source (if applicable) before making such remittance abroad. For expansion of your business, product or services must be marketed globally by way of Import-Export of such goods or services. And this will attract a need to register for Import-Export Code (IEC) issued by Directorate General of Foreign Trade (DGFT) operating under Ministry of Commerce and Industry, without which global expansion remains a mere aspiration. One of the most advantageous parts being that registration of Import Export Code is a One-time registration process and wherein no renewal or any return filing is required at any point of time. Such single IE code can be used till lifetime of such business entity. It is prudent for every business entity, engaged in transacting or expanding its business globally, to obtain Import Export Code irrespective of the necessity at the moment. And subsequent to obtaining such IEC number, it becomes nearly necessary for such entity/person to get the requisite CA certificate in 15CA/15CB before making any foreign payments on account of purchase/import of goods and/or services.

Customs clearance and sending shipments requires quoting of the IE Code. Therefore, to import/export goods into/from India and while making/receiving payments to/from abroad, IE Code must be required by the Importers/Exporters and banks respectively.

Form 15CA is basically a declaration given by remitter for gathering information w.r.t. payments made to a non-resident. Form 15CB, on the other hand, is a certificate that has to be obtained from a Chartered Accountant certifying nature of remittance and whether tax has been deducted on such remittance. Irrespective of its chargeability to tax in the hands of such non-resident, it has to be mandatorily e-filed with Income Tax Department. However, e-filing of such forms are not required if such a non-taxable remittance has been made by an ‘individual’ outside India.

It is not mandatory to incorporate a business entity for acquiring IEC number. It can also be obtained by the individuals who are sole proprietors of their respective businesses. However, it is absolutely mandatory to obtain 15CA-CB Certificate for money transfer abroad.

Do not miss our next update on Latest Amendments.

You may drop in your queries at team@clicknfile.in or directly get in touch with our finance/tax experts @ 8872032114, 8872032116, 8872013116

Have a great day ahead!

 

Some recent updates that you would not like to miss – (18th Feb 2017)

1.    Income Tax Department is developing an app that will soon allow assessees to pay taxes or apply for PAN using their mobile phones. The department is also working on a project to issue PAN to assessees within minutes by way of e-KYC authentication using Aadhaar.

2.    Under GST separate invoice to be issued for reverse charge & forward charge goods & services. Both can’t be clubbed together in single invoice.

3.    Due Date for Payment of ESI of Jan (applicable for salary up to Rs. 21,000 instead of 15,000 earlier): 21.02.2017 and E-Payment of DVAT & CST Tax for Jan: 21.02.2017.

4.    Every person who has a bank account but has not furnished his PAN number to the bank at the time of opening of bank account or subsequently, is required to furnish PAN before 28.02.2017.

5.    If a challan has been generated online it cannot be modified. after logging into GSTN portal for generation of challan, payment particulars have to be fed in by the tax payer or his authorized person. He can save the challan midway for future updation. However, onced the challan is finalized and CPIN generated, no further changes can be made to it by the taxpayer.

Have a great day ahead!

Some recent updates that you would not like to miss – (16th Feb 2017)

1.   TDS shall be deducted on basic amount & not on GST. TDS certificate will be issued in 5 days of deposit of TDS. Late fee of depositing TDS shall be Rs. 100 per day up to a maximum of Rs. 5,000.

2.   DVAT Filing of online return for 3rd quarter of 2016-17 has been extended up to 28th February 2017.

3.   Certificate for lower TDS is ‘person specific’ and not ‘income specific’. Meaning thereby it cannot be extended to the amounts specified by the recipient of the payment while making an application for grant of certificate u/s 197 - Levy of interest u/s 201(1A) cannot be sustained

4.   Taxpayer cannot pay the tax liabilities for current period without clearing the payment of tax for previous period in full. Section 35(8) prescribes the order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self -assessed tax and interest for the previous period; thereafter self-assessed tax and interest for the current period; and thereafter any other amounts payable including any confirmed demands under section 51. This sequence has to be mandatorily followed.

5.    Rent cannot be taxed in the hand of co-owner if his name is added merely to avoid succession problems in future.

6.   If the studios would charge the hire charges for using the studios setup on hourly basis and provides their studios room with furniture and equipment on rent to the music directors then the question of TDS deduction u/s 194C does not arise.

Have a great day ahead!