Recommendations of 53rd GST Council Meeting
GST Council recommends waiving interest and penalties for demand notices issued under Section 73 of the CGST Act (i.e., cases not involving fraud, suppression, or willful misstatement, etc.) for the fiscal years 2017-18, 2018-19, and 2019-20, if the full tax demanded is paid up to 31.03.2025. GST Council recommends the time limit to avail input tax credit with respect to any invoice or debit note under Section 16(4) of the CGST Act, through any GSTR 3B return filed up to 30.11.2021 for FY 2017-18, 2018-19, 2019-20, and 2020-21, may be deemed to be 30.11.2021. GST Council recommends a reduction of the quantum of pre-deposit required to be paid for filing appeals under GST. GST Council recommends amending provisions of the CGST Act to provide that the three-month period for filing appeals in the GST Appellate Tribunal will start from a date to be notified by the Government. To ease the interest burden of the taxpayers, GST Council recommends not to levy interest under Section 50 of the CGST Act in case of delayed filing of returns, on the amount which is available in the Electronic Cash Ledger (ECL) on the due date of filing of the said return. GST Council recommends a sunset clause from April 1st, 2025, for the receipt of any new application for Anti-profiteering. GST Council recommends exemption from Compensation Cess leviable on the imports in SEZ by SEZ Unit/developer for authorized operations from 1st July 2017. GST Council recommends 12% GST on milk cans (steel, iron, aluminum) irrespective of use; Carton, Boxes and Cases of both corrugated and non-corrugated paper or paper-board; Solar cookers whether single or dual energy source; and sprinklers including fire water sprinklers. GST Council recommends exemption of certain services provided by Indian Railways to the common man and also intra railway supplies. GST Council recommends certain exemptions related to accommodation services, providing relief to students and working professionals. GST Council recommends rolling out the biometric-based Aadhaar authentication of registration applicants on a pan-India basis in a phased manner. Posted On: 22 JUN 2024 7:43PM by PIB Delhi The 53rd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi today. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya, Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha, besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/UTs. The GST Council, inter alia, made the following recommendations relating to changes in GST tax rates, measures for facilitation of trade, and measures for streamlining compliances in GST. Read More
IMPORTANT DUE DATES IN JUNE 2024
Income Tax Particulars Due Date Payment of TCS/TDS for month of May-24 7th June Advance Tax – Deposit of first Instalment of Advance Tax (15%) by all assessees (other than 44AD & 44ADA cases) 15th June Issuance of TDS Certificate for period Jan to March 2024 15th June GST Particulars Due Date GSTR 7 – TDS Return and Payment under GST for May-24 10th June GSTR 1 – Outward Supply under GST (Sales) for May-24 (Turnover is more than 5 Cr.) 11th June IFF – QRMP – Outward Supply under GST (Sales) for Quarter 4 (Turnover is less than 5 Cr.) 13th June GSTR 3B – Summary Return for month of May-24 (Monthly filing) 20th June PMT 06 – Deposit of GST of May 2024 under QRMP scheme 25th June Other Due Dates (Labour Law, Company Law, etc.) Particulars Due Date Payment of Provident Fund for month of May-24 15th June Payment of ESIC for month of May-24 15th June PTEC payment for FY 2024-25 30th June Professional Tax Return cum Payment May-24 (Monthly) 30th June DPT 03 for return of deposit under Companies Act 30th June
RECORD UNDER GST
In the context of Goods and Services Tax (GST), record-keeping is a critical aspect of compliance for businesses. Maintaining accurate and organized records ensures that businesses can calculate and report their GST liabilities correctly, claim input tax credits, and fulfil their GST-related obligations. Here are the key records that businesses are typically required to maintain under GST:
Top 5 Investment Strategies for Corporate Professionals: Maximizing Your Financial Future:
If you are a corporate professional, you are in a position to earn a lot. Even though the earning potential is completely based on your skills, you can earn a good salary. On the other hand, time is precious and must be used properly. Imagine if you are becoming a corporate professional at 25, you have 35 years of work left. In that period, you have to spend wisely and invest properly. This post aims to help you with five investment strategies for a strong future: Diversification: Diversification is a basic investing strategy involving distributing funds across various asset classes. Securities like stocks, bonds, real estate, commodities, and more can all fall under this category. Diversity is designed to reduce overall portfolio risk by preventing over-concentration in any asset type. Investing in various assets may help you reduce the impact of market volatility on your portfolio and increase the likelihood that you will meet your financial goals. Real estate investments: Investing in real estate means buying, holding, and maintaining it to make money or increase your capital. Real estate may be a great option for diversifying their portfolio or generating passive income by purchasing physical assets. Investing in real estate can be done in a variety of methods, such as buying rental properties, house flipping, or real estate investment trust (REIT) shares. Growth Investing Capital appreciation is the main objective of growth investing. Using metrics like price-to-earnings or price-to-book ratios, investors who use this method look for companies with above-average revenue and profit growth. This strategy involves investments in blue-chip corporations, emerging economies, and smaller businesses with significant expansion potential. Remember, you should be ready to battle the obstacles that come your way. Value Investing Value investing is the equivalent of shopping for investments. Value investors hope to profit when inexpensive businesses reach their full potential in the coming years. They do this by buying stocks that they see as having good long-term prospects. Value investing requires a fairly active hand. Investors must be willing to watch the news and the market for hints about which stocks are affordable at any particular moment. Contrarian investing Using this strategy, investors can purchase company stock during a depressed market. The core of this strategy is buying low and selling high. Recessions, wars, natural catastrophes, and other comparable occurrences are the times when share market downturns occur most frequently. When there is a benefit, there is always a risk. You have to ride the volatility wave when trading against the market. Patience is, therefore, essential. It would help if you were ready to update yourself frequently and ready to face the challenges. Wrapping It Up: Thus, it does not matter how much you earn. You should save some of your salary to invest properly and multiply the money you have. You better adapt any of the abovementioned strategies and let the cash flow uninterruptedly in your life. When there is a constant cash flow, you are all set to live a comfortable life.
Navigating Financial Uncertainty: The Role of CA Firms in Business Risk Management
Organizations need to intentionally create strong resilience in this age of continuous change rather than just noting the possible effects of risks. Businesses may strengthen their operational frameworks and ensure resilience by forecasting the risk and taking adequate measures. CAs are well known for letting companies run effectively with proper financial management. Continue reading to learn the role of CA firms in business risk management: Forecasting the risks and tackling the business challenges: Chartered accountants conduct comprehensive risk assessments to identify possible risks that could endanger a business. They identify weaknesses and areas of concern by closely examining financial records, market dynamics, and operational procedures. Due to this thorough study, CAs can offer practical insights to reduce risks and protect the company from future attacks. Businesses may handle uncertainties with resilience and foresight because of the risk assessment knowledge of certified public accountants (CPAs). This makes life easier in the turbulent corporate world. CAs are great impact players in Startups with their innovative strategies: Chartered accountants create custom risk management strategies based on their evaluation insights and each company’s particular requirements. To mitigate identified risks, they work with companies to establish a suite of controls, procedures, and safeguards. The above strategies are intended to mitigate potential hazards while optimizing prospects for long-term, sustainable expansion. CAs enable firms to traverse turbulent waters confidently and resiliently by utilizing their experience in risk management. They assist companies in setting a route for long-term success and stability through proactive planning and strategic foresight. Effective financial planning: As dependable consultants, chartered accountants help companies create solid financial plans with integrated risk management techniques. Certified Advisors (CAs) assist companies in recognizing possible financial weaknesses and creating proactive plans to mitigate them by closely examining the results of risk assessments. They work closely with company executives to set up emergency savings, which ensures that sufficient funds are set aside to handle unforeseen difficulties. CAs are also essential in resource allocation, and they assist companies in deploying their funds in a way that maximizes returns and minimizes risk. By using accurate forecasting, CAs assist companies in foreseeing and preparing for the possible financial effects of hazards they have identified. Observance and Regulation Advice: Attention to laws and regulations is crucial in today’s intricate corporate environment to avoid legal entanglements and sanctions. Businesses benefit greatly from the critical advice that CAs give them as they negotiate the complex world of regulatory compliance. CAs provide specialized advice on compliance needs specific to each business’s industry and jurisdiction. They draw on their extensive knowledge of national and international rules to ensure that companies comply with all relevant rules and regulations by helping them understand and follow complicated regulatory frameworks. CAs protect companies’ reputations and long-term sustainability by properly ensuring laws and regulations. Constant reviews by CA help startups stay updated: CAs conduct routine evaluations of companies risk management strategies. They search for issues and provide fixes to maintain the company’s security. This keeps companies resilient and prepared for any challenge. Final words: As highlighted in the above points, chartered accountants are crucial in risk management. CAs help firms overcome financial difficulties with resilience and foresight. Meanwhile, you should also be conscious about simple financial matters to ensure your business’s productivity.
Empowering Startups: How CA Firms Provide Vital Investment Support
When you are about to start a new business, you will be excited. On the other hand, it does not stop just by excitement. Even though many steps are involved in initiating a startup, you must remember that you must be perfect in your financial matters according to the law. Besides that, you need to be financially stable as well. Chartered accountants come into this scene. Learn the role of CA firms in empowering startups financially: Personalized Automation Solutions: CAs offer guidance to startups to help them identify and implement customized automation solutions that are in line with their particular business models and financial objectives. This allows the smooth incorporation of technology into current processes. Financial Planning Strategy: CAs give startups strategic insights through automated financial reporting and analytics technologies. They offer thorough risk mitigation strategies and solid financial planning. Startups can use this data-driven approach to make well-informed decisions and proactively avoid potential hazards. Business structuring and Tax Planning: Startups choose the proper business structure, such as a corporation, LLC, partnership, or private company, with the assistance of CPAs. They address the startup’s objectives and requirements while outlining the benefits and drawbacks of each kind. CAs also help with tax planning to legally lessen the startup’s tax burden. They provide a financial analysis of the company and offer recommendations on how to cut costs while still adhering to the law. CAs ensure that companies may build a strong basis for financial success by offering clear assistance on structuring and tax planning. CAs simplify difficult ideas for business owners to understand and put into practice. Financial Reporting: Financial statements, including income statements, balance sheets, and cash flow statements, are crucial for internal decision-making and external stakeholders like lenders and investors. CAs are capable of preparing and reviewing these documents. Assurance and Audit Services: It is essential to ensure that financial information is accurate and to instill trust in the company’s financial health among creditors and investors. For this reason, CAs can offer audit and assurance services. Investor relations: CAs help businesses have financial conversations with possible investors. In discussions with investors, they assist in producing clear reports and presentations that outline the startup’s economic situation. These reports provide evidence of the company’s success and the benefits of investing. CAs also assist with due diligence, which ensures that everything is in order before making a significant decision. CAs increase the likelihood that investors will support a startup and help it develop and thrive by communicating financial concepts in an understandable manner. Expense management and cost control: Since resource limits are a common problem for startups, CAs can assist them in finding opportunities for cost savings and effective expense management. Managing Risk: To help companies build ways to avoid financial risks, CAs can evaluate those risks. Implementing risk management procedures and assessing insurance needs are part of this. The Bottom Line: The above points focus on the role of CAs in empowering startups financially. With their experience, business owners may establish a solid basis for victory and long-term expansion in the competitive business world.
Everything about Tax Deducted at Source (TDS)
What is the Concept of Tax Deducted at Source (TDS)? Tax Deducted at Source (TDS) is a system implemented by the Income Tax Department where income tax is deducted at the time of making specified payments such as rent, commission, professional fees, salary, interest, etc. The person making these payments deducts the tax and sends it directly to the Central Government. This way, the government collects tax right when income is earned, making the process smoother and more efficient. Example: ABC Pvt Ltd makes a payment for office rent of Rs 50,000 per month to XYZ (owner of the property). TDS is required to be deducted at 10%. ABC Pvt ltd must deduct TDS of Rs 5,000 and pay the balance of Rs 45,000 to XYZ. Who is Liable to Deduct TDS? According to the Income Tax Act, any company or individual is required to deduct tax at source (TDS) if the payment exceeds a specified limit. However, to be authorized to deduct TDS, the person or entity must first obtain a Tax Deduction Account Number (TAN). TAN stands for Tax Deduction Account Number. It is a unique 10-digit alphanumeric identifier that must be obtained by all persons or entities responsible for deducting or collecting tax. When should TDS be deducted and paid? The concept of TDS is based on a simple principle: tax should be deducted at the time the payment becomes due or when the actual payment is made, whichever occurs earlier. Tax Deducted at Source (TDS) must be deposited with the government by the 7th of the following month. For example, TDS deducted in May is due by the 7th of June. However, TDS deducted in March can be deposited by the 30th of April. For property purchases, the TDS payment is due 30 days from the end of the month in which it is deducted. What is TDS Return? TDS return can be best described as the quarterly statement or summary of all TDS-related transactions made during the specific quarter. Typically, it comprises details of the TDS collected and deposited to the Income Tax Authority by the deductor. The essential details disclosed in a TDS return statement include the following – Types and Due Dates of TDS returns Form No Transactions reported in the return Due date Form 24Q TDS on Salary Q1 – 31st July Q2 – 31st October Q3 – 31st January Q4 – 31st May Form 26Q TDS on all payments except salaries Q1 – 31st July Q2 – 31st October Q3 – 31st January Q4 – 31st May Form 27Q TDS on all payments made to non-residents except salaries Q1 – 31st July Q2 – 31st October Q3 – 31st January Q4 – 31st May Form 26QB TDS on sale of property 30 days from the end of the month in which TDS is deducted What is a TDS certificate? A TDS certificate is a document issued to the taxpayer by the deductor (the person responsible for deducting tax at source) after filing the TDS return. It serves as proof of tax deducted at source on the taxpayer’s income. Forms such as Form 16, Form 16A, and Form 16B are examples of TDS certificates. The deductor is required to provide the TDS certificate to the assessee from whose income TDS was deducted during the payment process. What is 26AS? When TDS (Tax Deducted at Source) returns are filed by the deductor, the amount of TDS deducted is reflected in the taxpayer’s Income Tax login and can be viewed in Form 26AS. In essence, once TDS returns are filed, the TDS amount is credited to the respective person’s PAN (Permanent Account Number). This credit is visible in Form 26AS, and the taxpayer can claim it when filing their Income Tax returns. Can I request tax deductors to not deduct TDS from my payment? Non-deduction of TDS is possible if your income is below the minimum taxable limit. If your income is below Rs. 2.5 lakh (or the applicable limit for your category), you can submit Form 15G (for individuals) or Form 15H (for senior citizens) to the deductor, declaring your income. Additionally, you can apply to the Assessing Officer using Form 13 to obtain a certificate for lower or nil deduction of taxes. However, if your income exceeds the minimum taxable limit, you cannot request an exemption from TDS. How to determine the correct section and rate for deducting TDS? To determine the appropriate section for deducting TDS and the corresponding rate, you can refer to the detailed guidelines provided by the Income Tax Department. The attached link contains comprehensive information on various TDS sections and their applicable rates. https://incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=/charts%20%20tables/tds%20rates.htm&grp=&searchFilter=&k=&IsDlg=0 Penalty provisions for non-deduction of TDS. Note: We have also enclosed one flow chart below for reference and better understanding.
GST : Importance for making payment in 180 Days to supplier
FAQ’s 1)Can ITC be reclaimed if it was reversed according to Rule 37 of GST? Answer: Yes, ITC can be claimed again when the taxpayer pays the invoice in full. It is not subject to the time limit of 180 days, as opposed to the initial provision. 2)What if an invoice is partially paid? Answer: Then such ITC will be reversed only in proportion to the unpaid invoice and tax payable amount. 3)Is there a need to reverse the Input Tax Credit in regards to non-payment of consideration associated with supplies received that fall under the reverse charge mechanism? Answer: The answer is no. You do not need to reverse the Input Tax Credit that is already availed in regards to inward supplies received under the mechanism of reverse charge. Note: Not Making payment to supplier within 180 Days is can become one of the reasons for reversing Input Tax credit under GST.
IMPORTANT DUE DATES IN MAY 2024
INCOME TAX PARTICULARS DUE DATE Payment of TCS and TDS for month of April- 24 07th May TCS Return for Quarter 4 (Jan-March 24) 15th May TDS Return for Quarter 4 (Jan-March 24) 31st May SFT STATEMENTS (Form 61A) for FY 2023-24 31ST May GST PARTICULARS DUE DATE TDS Return and Payment under GST (GSTR 7) for April- 24 10th May GSTR 1 – Outward Supply under GST (Sales) for April- 24 (Turnover is more than 5 Cr.) 11th May IFF – QRMP – Outward Supply under GST (Sales) for Quarter 4 (Turnover is less than 5 Cr.) 13th May GSTR 3B – Summary Return for month of April- 24 (Monthly filling) 20th May PMT 06 (Tax payment who opted for quarterly filling of GSTR 3B) 25th May OTHER DUE DATES (LABOUR LAW, COMPANY LAW ETC) PARTICULARS DUE DATE Payment of Provident Fund for month of April- 24 15th May Payment of ESIC for month of April- 24 15th May LLP FORM 11 30th May Professional Tax Return cum Payment April- 24 (Monthly) 31st May Note: Above mentioned due dates are only important due dates and not all due dates. Please comply or provide data to consultant well in advance for timely completion of filling.Thanking You: Team ANG Disclaimer Above information provided is for private use and circulation. It is not advertisement or marketing. Information provided above is prepared from taking help/references of various websites and articles available for reference over internet and government websites. Information is provided in summary form to extent possible. If any specific information is required same can be referred in detail in related section of Act or can be consulted with GST expert/Consultants. A N GAWADE & CO LLP or any of his partner or staff or associate doesn’t accept any type of liability arising by referring to this article or information as it is provided just for reference. Before taking any decision or reference from above consult with GST Expert or Consultant.
Financial Futurism: Anticipating Trends and Preparing Businesses for Tomorrow
The world is currently experiencing rapid transformation, and the finance sector is also at a crucial point of transformation. This is why businesses and individuals need financial futurism. Financial futurism is a forward-looking approach that applies innovative thinking, data analysis, and technology to predict and shape the future of finance. It involves studying emerging trends to anticipate how they will impact financial systems, markets, and consumer behavior. Financial futurism also aims to anticipate challenges and opportunities in the finance industry by leveraging insights from diverse disciplines. This article presents the trends anticipated by financial futurism and how businesses in the finance sector can use them for their future, so continue reading to learn more. Generative AI This year, financial technology—such as apps and other online money services—is anticipated to have a greater impact on fintech and the application of generative AI to chatbots, potentially creating new revenue streams. Thanks to generative AI, investment management and financial planning can now be more individually tailored. The insurance industry is an example of this. Because AI can identify patterns in data, it assists insurers in developing customized products that may result in more precise risk evaluations and lower insurance premiums for individuals. Generative AI in the financial services sector will probably be the main driver of change for the whole sector. Cloud technology The advancement of AI and new technologies raises significant concerns regarding personal data and privacy, prompting anticipated shifts in regulatory requirements within financial services. More organizations are expected to adopt hybrid cloud models to manage workloads and compliance tasks. However, it’s crucial to distinguish between a hybrid cloud infrastructure stumbled upon and one intentionally designed. Financial institutions must monitor digital transformations and necessary integrations to foster growth and competitiveness within a purposefully crafted hybrid cloud environment. Cybersecurity risk management More issues arise with AI, particularly in terms of cyber threats. Cyber threats are expected to persist in the finance sector, and as technology develops, they’ll only become more sophisticated. As risks grow, mitigation strategies and having the right instruments for risk management in the finance sector will become increasingly crucial. As more and more financial institutions experiment with generative AI, monitoring the demand for enhanced fraud detection will also be crucial. Prioritizing ESG considerations Environmental, social, and governance (ESG) factors are increasingly influencing investment decisions and corporate governance. Investors are seeking to align their portfolios with sustainable and socially responsible companies, driving the need for businesses to prioritize ESG initiatives. Businesses in the finance sector can attract capital and enhance long-term shareholder value by demonstrating a commitment to environmental stewardship, social equity, and ethical governance practices. Open banking Open banking operates on the basis that APIs provide safe access to a customer’s financial data from traditional banks and other financial institutions. As consumers today want to manage who gets access to their data, open banking usage is predicted to rise. Banks may find that APIs are the most convenient option when it comes to connecting technologies to internal systems and streamlining procedures. Blockchain technology In addition, the emergence of digital currencies and blockchain technology is expected to become a focus on online banking methods and secure transaction management. As cryptocurrencies regain prominence, financial institutions are planning to adopt innovative ways to integrate blockchain into their operations. This will help them ensure transparency and security in confidential transactions. Final thoughts These are the major trends you can expect in the finance sector in the upcoming years. Financial futurists and companies can partner up to adapt to these trends and stay competitive in the market.