What happens if we pay income tax in India but do not file a return?

Filing of Income Tax return is compulsory for assessees other than company and partnership firm's having GTI more than basic exemption limit. ( Before giving effect of Sec 10(38).

If IT return not filed / Delay in filing following implications will attract.

✓ For returns of FY 2017-18 and onwards, penalty of Rs 5,000 will be charged for returns filed after due date but before 31stDecember. If returns are filed after 31stDecember, a penalty of Rs 10,000 shall apply. However, penalty will be Rs 1,000 for those with income upto Rs 5Lakhs.

✓ Losses incurred (other than house property loss) are not allowed to carried forward to subsequent years for set off against the future gains.

✓ Interest for delay in Return filing under section 234 A of the income tax act .

Sincere advice is to file with in due date, as a Healthy practice.

Thanks & Regards

Team - Standin Profesionals

Do housewives whose fixed deposits' interest income is less than 2.5 LPA have to file an income tax return?

Opinion : Not required to file Income Tax Return for house wives .

Basis and Analysis : As per Income Tax provisions applicable for FY 2016–17 (AY 2017–18) Tax slabs are as follows.

Hope the above post useful

Thanks and Regards

Team - Standin Professionals

What is the GST rate on a commission agent? I am a broker of trucks. My income is commission received from trucks. Will I need to pay the GST?

Frequently asked questions about the Taxability of the AGENT under CGST Act:

1. Whether commission received from Truck business is covered under the Supply definition?

Answer: Yes, Commission from Truck business is taxable under GST as it is covered under in agent definition. It includes “commission agent”

As per Section 2(5) “agent” means a person, including a factor, broker, commission agent, arhatia,del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;}

2. When should I get the registration under the GST?

Answer: The commission agent required to get GST registration irrespective of the Turnover under section 24 of the CGST Act 2017.

24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––

(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

3. What is the Place of Supply for the Commission Agent?

Answer: As per Section 12 of the IGST act the default rule for the place of supply will be apply.

B2B: Location of the registered person

B2C: Where the address on record exists: Location of the recipient

Other Cases: Location of the supplier of services

4.What is the Value of the supply?

Answer: The Value of supply will be considered as the Transaction Value in the Invoice as per Section 15(1) after including

(a) any taxes, duties, cesses, fees and charges levied under any law

(b) Payments made by the recipient to the 3rd parties on behalf of supplier

(c) Incidental expenses, - any commission etc

(d) Interest or late fee or penalty for delayed payment of commossion .

(e) Subsidies

Further Transaction Value excludes: Discount , which is duly recorded in the invoice.

5.Conditions for availing the Input Tax Credit?

Answer: Some of Eligibility and conditions for taking input tax credit. :

• Input supply of goods or services or both used in the business
• ITC credited to the electronic credit ledger of commossion agent
• Possession of a tax invoice or debit note
• Monthly GST Return Filing.

6. What is the Time limit for the Invoice raising and contents of the invoice?

Answer:

Time Limit : Before or after the provision of service but within a 30 days

Contents of the Invoice : Showing the description, value, tax charged thereon and such other particulars.

7. The list of the Accounts Records to be required maintained and Period of Maintenance?

Answer: As per the Section 35 the Commission Agent required maintain prescribed Books and records for a period of 72 months from such date showing the quantitative details of the goods used and Input Services received and Services supplied

8. What are the due dates for GST Returns :

Answer: The following are the general due dates for various Returns

9. What is the rate at which GST to be collected ?

Answer : The CGST rate is 9% and SGST rate is 9 %. Further if it is interstate Supply ( Supply to another state) then IGST @18% shall be charged instead of CGST and SGST.

FYI : when the commission agent is acting as pure agent . The gst amount shall be charged on the commission amount.

Thanks & Regards

Team Standin Professionals

While preparing a profit and loss account, will sales and purchases include GST or not? Can we claim GST in income tax returns as an expense?

Yes or No ?

Let's see,…

Keep it in mind that GST payable or GST receivable( i.e ITC) are both relating to Balance sheet items.no connection with profit and loss account. while booking purchases or sales , effect of Tax item will comes in Balance sheet ledger,which are Grouped under Current Assets or Current Liabilities as case such.

Hence no more confusion , to be consider in Tax computation or not .!! Absolutely not.

Just set off the Liability and ITC ledger pay the balance payable amount to the government.

Further , in the above case , if your a composition dealer or ITC on items covered under blocked credits under section 17 of the CGST act 2017 or any reason, if you're not eligible for ITC ,or you are the ultimate recipient.

Then we shall pass the entry by booking whole amount under respective expense ledger in profit and loss account.

So in this case the GST booked as expense unlike the first case . It is allowed under section 37 of the Income Tax act . We can avail as deduction for Tax computation.

Happy reading !!!

Happy New Year 2k18.

Adinarayana Murthy Ch