CA. Praveen Sharma GST Mitra

  The income of an asset belongs to the person who has paid for it. I have presumed that your mother has not contributed anything towards cost of the house held in joint names. So just because your mother has been added as the joint owner, she does not become owner of the house. So the rent earned on this property belongs to you and no portion of it can be shown as her income. If you show the rent received as her income, the income will still get clubbed due to clubbing provisions of Section 60 which provides that income will be clubbed in the hands of owner of the asset when income is transferred without transferring the asset. In case your mother has contributed towards cost of the house then you can take the rental income in your name and your mother’s name in the ratio of contribution made by your and your mother both toward cost of the house. While computing the respective shares of both of you, treat the principal of home loan as your contribution towards the cost of the ho...

  The Centre may be looking to announce the formation of the Goods and Service Tax Appellate Tribunal (GSTAT) in the Union budget next week. The GSTAT will be the tribunal where taxpayers can bring their litigations. Right now they are forced to go to the country's already burdened High Courts. “The government has been receiving complaints that GST officials often pressurise taxpayers to pay the assessed tax amounts, even if assessees contend that such assessments are arbitrary and erroneous. Unable to file a writ petition in the high court, which is cumbersome, many taxpayers pay GST dues under protest,” a person aware of the matter told While setting up a tribunal for indirect taxes would be something under the purview of the GST council, the Union Cabinet had given its approval to set up the tribunal for such matters in 2019. The National Bench of the Appellate Tribunal shall be situated at New Delhi. GSTAT shall be presided over by its president and shall consist of one technic...

  The Bombay High Court has set aside an order by the deputy commissioner of state tax against a company as the authority had "rejected the application for refund without recording any reasons". Colgate Global Business Services Pvt Ltd (part of Colgate Palmolive Group) had approached the deputy commissioner of state tax seeking refund of Rs 4,33,03,066 of the Goods and Services Tax (GST). However, after it was rejected by the authority on June 15, 2020, Colgate, through lawyers Jitendra Motwani and Rinky Jassuja approached the high court. Colgate argued that the order of the deputy commissioner passed in June 2020 rejecting the application was bound to record reasons in the order. The bench of Justices RD Dhanuka and SM Modak also opined that the order rejecting the application was in breach of the provisions of the Central Goods and Services Tax (CGST) rules as it did not record the reasons in writing for rejecting the application of refund. Appearing for the Commissionerate...

  ITR filing last date: The Government of India (GoI) has powers to launch prosecution against the taxpayer who has failed to file ITR by last date despite having income tax liability Last date for income tax return or ITR filing for AY 2021-22 is 31st March 2022. Those earning individuals who missed to file their ITR by the given due date of 31st December 2021, they can still file their income tax return by the given ITR last date of 31st March 2022. However, ITR filing after the due date will attract penalty depending upon the income tax slab they fall in. However, if a taxpayer, who has income tax liability, fails to file its ITR by the given last date, he or she may have to land in jail for such income tax return violation and the jail sentence can be to the tune of minim 3 years and maximum 7 years. Speaking on the income tax return last date; Mumbai-based tax and investment experts Balwant Jain said, "Failing to file ITR by given last date, the income tax department may levy...

  The Bombay High Court has quashed an order by the GST authorities which had rejected the refund claim of Colgate Global Business Services Ltd. The court has set aside the order since the deputy commissioner of state tax did not provide any reasons while rejecting the order. The court said providing reasons is mandatory under Rule 92(3) under the Central GST Act. As such the order passed by the tax official was in breach of this provision and deserves to be set aside. The company, engaged in the computer and related activities business, had claimed a refund of Rs 4.33 crore for a period from July 2017 to March 2018. The court has asked the officer to pass a fresh order without being influenced by the observations made and the conclusions drawn in the impugned order within three weeks of granting personal hearing to the company. The court also set the timeline for follow-up action. It said the order of the official will be conveyed to the company within one week from the date of pa...

  The Indian government imposed an 18 per cent goods and services tax on smartphones in 2020, which upscaled the prices of handsets, making it costlier. The pandemic, acted as a catalyst to make things go bad to worse. As we all are dependent on our mobile technology for majorly most things, it was tough for many of us during the price hike and inflation. At this juncture, it’s the most effective sense to count on a lenient method in the direction of the mobile enterprise from the Union Budget 2022. There is further an argument that smartphones/mobile phones must be handled as a primary utility for every household. The Indian government is aiming towards ‘Digital India’ but for this, smartphones has top be made handy on the grounds that there’s little or no that we can't do on a telephone in recent times. There should be a few sorts of subsidies for the cellular cellphone enterprise. The India Cellular and Electronics Association (ICEA) has urged the authorities to rethink the mode...

  The government is considering setting in motion the creation of a Goods and Service Tax Appellate Tribunal (GSTAT) for the expeditious resolution of indirect tax litigations in lines with its efforts to reduce compliance burdens and promote ease of business, as taxpayers are currently forced to appeal in high courts, which is expensive and time consuming, two people aware of the development said. Although this is the subject matter of the GST Council, the coming Union Budget, which is expected to focus on reducing compliance burden, resolving litigation, and making lives of businessmen easy, could mention a road map for the new body, they added on condition of anonymity. “The government has been receiving complaints that GST officials often pressurise taxpayers to pay the assessed tax amounts, even if assesses contend that such assessments are arbitrary and erroneous. Unable to file a writ petition in the high court, which is cumbersome, many taxpayers pay GST dues under protest,...

  The CBI has booked a businessman along with an Income Tax inspector and others for allegedly claiming fraudulent tax refunds of over Rs 263 crore, officials said on Thursday. The agency has acted on a complaint from I-T department which alleged that Bhushan Anant Patil in conspiracy with its inspector Tanaji Mandal Adhikari fraudulently claimed credits for taxes deducted at source, they said. The department alleged that they “criminally conspired” with other persons to get issued refunds exceeding Rs 263 crore which were deposited in the bank account of proprietary concern of Patil, they said. The CBI has also booked Rajesh Mathani, Ashish Mehdiratta, VJM Media Pvt Ltd now known as Blitz Multimedia Pvt Ltd, Mumbai and Daywind Enterprises Pvt Ltd in the case, they said. “Looking at the above facts it is evident that money might also have been transferred to some other persons and entities across the country and even outside the country. This is a serious crime against the nation a...

  If a company is in Maharashtra, it need not pay goods and service tax (GST) on the money recovered from employees who leave without serving the notice period. But that may not be the case in Madhya Pradesh. Syngenta India Limited, a company engaged in the manufacturing of pesticides and various types of seeds, recovers money from employees if they leave the job without serving the complete notice period. The company offers various incentives to its employees as a part of the employment policy like a group insurance policy, parental insurance policy. For the same, it recovers the amount from employees. The company approached Maharashtra authority for advance ruling (AAR) on whether GST would be applicable on the amount recovered from employees by way of parental insurance and notice pay recovery. The AAR ordered that GST would not be leviable on these kinds of recoveries. Earlier, in a matter related Bharat Oman Refineries Ltd, Madhya Pradesh AAR held that “relieving an employee w...

  Union Finance Minister Nirmala Sitharaman will make the Budget 2022 announcement next week and all sectors are awaiting relief to ensure ease of doing business, especially given the pandemic situation at hand. But, what does the common man want? In this episode of Budget Podcast, CNBCTV18.com’s Kanishka Sarkar shares the expectations of sectors including infrastructure, education, telecom, and insurance, and how the proposed changes can impact the common man. After the government has rationalised calculation of ‘Adjusted Gross Revenue’ (‘AGR’), reduced the bank guarantee requirements and interest rates on delayed payments of license fee and allowed 100 percent foreign direct investment (FDI), the telecom sector is now looking for support on various tax and policy-related matters. Given that the sector is primarily dependent on the import of core manufacturing equipment and the accumulation of input tax credit under GST, Bipin Sapra, Tax Partner - Indirect Tax Services, EY, says t...

  GST officers have busted a syndicate involved in the creation of fake firms and bogus invoices which led to a GST evasion of ₹ 362 crore, the finance ministry said on Thursday. The Directorate of Goods and Service Tax Intelligence, Ghaziabad Regional Unit, has busted a syndicate involved in creating and controlling fake firms and issuing of bills by these fake firms without supplying any goods or services and encashment of GST refund, the ministry said. Two office premises were searched from where various incriminating documents related to over 200 fake firms were recovered i.e. mobile phones, digital signatures, debit cards, PAN cards, Aadhaar cards, photos of persons, rent agreements, laptops, pen drives, rubber stamps, keys of offices, SIM cards, cheque books and some kuccha records. "After an analysis of the evidences and data, it was revealed that this network consists of 275 bogus firms which exist only on paper. These firms have issued fake invoices having a total value o...

  An indication on reduction in the Goods and Services Tax (GST) rate on health insurance, giving infrastructure status to healthcare facilities, hiking tax deduction for insurance premium are some the budget wishes listed out by the insurance sector. Senior industry officials also urged the government to take steps to increase insurance penetration in the country. Even though the GST rates do not form part of the union budget, insurers want an indication towards slashing of the rates on insurance premium in Finance Minister Nirmala Sitharaman's budget speech. "Health insurance is an essential commodity and needs to be slotted in the five per cent GST tax slab to make it more affordable to access quality healthcare," said Anup Rau, MD & CEO, Future Generali India Insurance. A significant reduction in the GST on all personal lines of products-from the existing 18 per cent to five per cent will encourage more people to buy health insurance. For senior citizens, it shoul...

  An 'accountant' has been arrested for allegedly issuing bogus bills of ₹ 1,000 crore and committing an input tax credit (ITC) fraud of ₹ 181 crore, GST authorities said on Wednesday. The 27-year-old man, who had studied till class 12 and worked as an accountant and GST consultant, was arrested by officers of the Palghar CGST Commissionerate of the Mumbai Zone, as per an official statement. Investigations into the matter started based on specific inputs received from data mining and data analysis, which pointed to M/s Nithilan Enterprises being engaged in availing and passing of fake ITC by issuing fake invoices without receipt of goods or services, it said. It later transpired that the accountant -- whose identity has not been disclosed - had stolen the identity of one of his clients for committing the GST fraud for monetary gains, the statement said. Confronted with material evidence, the accountant confessed to the offence of issuing more than ₹ 1,000 crore of bogus bills a...

  In its Annual Financial Statement -- also called Union Budget -- the Central government provides details of how much money it expects to garner from various sources and how it intends to spend the funds India earns about 80% of its total revenue through taxes. While taxation is the primary source of income for the government, it also earns a recurring income, which is called non-tax revenue. This comes from dividends and profits of public sector enterprises, interest, fines, regulatory charges and user charges for publicly provided goods and services. Tax revenue comes from two categories -- Direct taxes and indirect taxes. Let us first understand As the name suggests, it is levied directly on taxpayers. Direct taxes include income tax and corporation tax. Income tax is imposed on individuals and businesses other than companies. It is paid on the income earned during a particular financial year. Corporation tax is the money paid by companies on the profits made by them in a given...

  Budget 2022 is round the corner. Standard deduction hike, income tax relief, tax relief for saving for kids education are among some of the expectations o the salaried class from Nirmala Sitharaman's Union Budget 2022 . Some key expectations are mentioned below. The Budget 2021 may introduce tax-free work from home allowances for salaried employees. Allowing deductions for such expenses will raise the take-home salary, ultimately creating demand for goods and services in the country. Due to the high direct tax collection this fiscal year, there may be a scope to increase tax deduction limits. For instance, the standard deduction available to those with salary income may be raised, currently at Rs.50,000. This may be adjusted for inflation every year," Spokesperson - Mr Archit Gupta, Founder and CEO - Clear Standard deduction hike, income tax relief for saving for kids' education For paid individuals and pensioners, the standard deduction is a deduction allowed from gross...

  With the advent of digitisation, India witnessed the unlocking of new avenues of economic growth. The rise of fintech, e-commerce, edtech, SaaS and other new-age businesses over the last two years have provided further ammunition for us to be considered a digital powerhouse. But, if India wants to become a US$ 1 trillion digital economy by 2025, one of the major sectors that will immensely contribute to this goal is the country’s Micro, Small, and Medium Enterprises (MSMEs). Characteristic of our country’s age-old entrepreneurial spirit, MSMEs account for 90 percent of all enterprises in the country. This excludes the nearly 15 million small family-run businesses like boutiques and mom-and-pop stores. Though MSMEs contribute about 30 percent towards India’s annual GDP and are widely acknowledged as the backbone of our economy, their role as a catalyst for socio-economic transformation has been underestimated and underserved. It is a known fact that digitally-enabled MSMEs have ...

  प्रदेश में अब सैलून, प्लंबर, केटरर, ब्रोकर, फोटोग्राफर सहित दर्जनों प्रोफेशनल्स को भी जीएसटी चुकाना होगा। दरअसल, सेल्स टैक्स विभाग ने अधिकारियों को जिला स्तर पर करदाता बढ़ाने का अलग-अलग लक्ष्य दिया है। प्रदेश का वाणिज्यिक कर विभाग जिलावार 25 जनवरी से 25 फरवरी तक करदाता बढ़ाने का अभियान चलाएगा। आयुक्त ने संभागीय उपायुक्त एवं सहायक आयुक्त सहित विभाग के सभी अधिकारियों को निर्देश दिए हैं कि वे अपने-अपने जिलों में आबादी के मान से नए करदाताओं का पंजीयन कराएं। कमाई के हिसाब से अब भी विभिन्न श्रेणी के लाखों लोग जीएसटी मुक्त हैं। इन्हें इसके दायरे में लाया जाएगा। 20-40 लाख टर्न-ओवर वाले ये व्यवसायी जीएसटी के दायरे में खनन कारोबार से जुड़े व्यवसायी। लीज एग्रीमेंट करने वाले व्यवसायी। शासकीय विभागों में माल या सेवा सप्लायर। कृषि मंडी, वन विभाग, पीडब्ल्यूडी से जुड़े व्यवसायी। धारा 22 (1) एवं धारा 24 के तहत सप्लायर्स। क्लस्टर आधारित आर्थिक गतिविधियों में कार्यरत समूह। मैरिज गार्डन, कोचिंग, वेस्ट मैनेजमेंट, एडवरटाइजिंग। अस्पतालों एवं शिक्षण संस्थाओं के सप्लायर्स। स्टॉक ब्रोकर, इंश्योरेंस एजेंट, म्य...

  Budget 2022 is round the corner. Standard deduction hike, income tax relief, tax relief for saving for kids education are among some of the expectations o the salaried class from Nirmala Sitharaman's Union Budget 2022 . Some key expectations are mentioned below. The Budget 2021 may introduce tax-free work from home allowances for salaried employees. Allowing deductions for such expenses will raise the take-home salary, ultimately creating demand for goods and services in the country. Due to the high direct tax collection this fiscal year, there may be a scope to increase tax deduction limits. For instance, the standard deduction available to those with salary income may be raised, currently at Rs.50,000. This may be adjusted for inflation every year," Spokesperson - Mr Archit Gupta, Founder and CEO - Clear Standard deduction hike, income tax relief for saving for kids' education For paid individuals and pensioners, the standard deduction is a deduction allowed from gross...