Neeraj Bhagat & Co. – Page 14 – Chartered Accountants

April 8, 2020 / Goods and Services Tax (GST)

Govt to Vet GST, Income Tax and Transfer Pricing Filings to Find Leakage

The government is planning to compare data filed by companies with different departments to detect discrepancies and check whether there’s been any leakage in tax collected, raising the prospect of even greater scrutiny, said people with knowledge of the matter. Goods and services tax (GST) returns, income tax filings and transfer pricing submissions will be analysed and synchronised in a manner that hasn’t been possible before, they said.
Multinationals including banks, fast-moving consumer goods (FMCG) companies, tech firms and automobile …

April 8, 2020 / Goods and Services Tax (GST)

Highlights of 29th GST Council Meeting

The 29th GST Council meeting was held on August 04, 2018 at New Delhi. The GST Council meeting has been held to address the concerns of Micro, Small and Medium Enterprises (MSME’s) and to affirm the proposal of cashback on digital transactions. The key recommendations of meeting are as follows:

1. Cashback on Digital Transactions
The GST Council has recommended cashback of 20% of GST paid on B2C transactions subject to the maximum amount of Rs. 100 per transaction. The …

April 8, 2020 / Goods and Services Tax (GST)

Tax breather under GST for e-com on the anvil

E-commerce players will finally see scrapping of the proposed tax collected at source (TCS) under the goods and services tax (GST) regime, if proposals for the draft policy are implemented.
The proposals call for revisiting TCS, which according to the players mean abolishing the concept altogether.
TCS at the rate of up to 1 per cent is yet to be implemented as it has been deferred till September.
A spokesman for online marketplace ShopClues says, “Not only for the benefit …

April 8, 2020 / Direct Taxation

2019 in Mind, Govt Moves to Ease Taxpayer Distress

‘End of tax terrorism’ was one of the political planks that had swung urban votes in favour of BJP in 2014. After four years, the government is making sure that the catchphrase does not come back to haunt it in 2019.
A few days ago, the chief of the Central Board of Direct Taxes (CBDT) — the finance ministry arm which serves as the apex body for Income tax (I-T) — directed all principal chief (I-T) commissioners to closely monitor …

April 8, 2020 / Direct Taxation

´PoeM´ firms to be taxed at 40%

Foreign companies whose place of effective control are in India will have to shell out 40 per cent corporation tax against 30 per cent levied on domestic firms.
The Central Board of Direct Taxes has come out with clarifications for place of effective management (PoeM) through a notification for these companies.
Through PoeM, the government taxes companies located outside the country but controlled from India.
It applies to companies having annual turnover of more than Rs. 500 million.

Soon, govt …

April 8, 2020 / Business

Fund of Funds to Provide Rs. 1L cr to Startups: Modi

Putting an end to the questions over effective utilisation of the ‘Fund of Funds’ under the Startup India initiative, the Prime Minister clarified that about Rs. 1,285 crore has been committed towards startups since the launch of the Rs. 10,000-crore fund in January 2016. In an interaction with young entrepreneurs from across the country, including cities such as Dehradun, Guwahati and Raipur, PM Narendra Modi said the fund of funds has helped venture capital firms in the country leverage investments …

April 8, 2020 / Foreign Investment

Legal Shield in the Works for Foreign Investments

The civil aviation ministry is likely to approach the Goods and Services Tax(GST) Council soon for bringing aviation turbine fuel(ATF) under the tax regime.
Current India is working on a framework that will provide legal backing for a stable and predictable foreign investment regime in the country as it looks to attract more capital to help create jobs and accelerate economic growth.
The law that is in the works in the finance ministry is aimed at promoting and protecting foreign …

April 8, 2020 / Goods and Services Tax (GST)

Aviation ministry may want inclusion of ATF under GST

The civil aviation ministry is likely to approach the Goods and Services Tax(GST) Council soon for bringing aviation turbine fuel(ATF) under the tax regime.
Thursday´s meeting in the Capital was attended by AirIndia Chairman and Managing Director(CMD) Pradeep Singh Kharola, Pawan Hans CMD BP Sharma, the chief executive officer of a private airline, and the chief financial officers of other carriers.”We have given our suggestion to the ministry and Minister of State for Civil Aviation Jayant Sinha is likely to …

April 8, 2020 / Direct Taxation

Ecomm Cos may Need to Prepare for Withholding Tax in 2 Months

India Inc, in particular ecommerce platforms such as Amazon and Flipkart, may need to prepare for withholding tax provisions in two months under the goods and services tax (GST).
The tax deducted at source (TDS) and tax collected at source (TCS) provisions had been put on hold following petitions by industry that this would increase the compliance burden.
But with the GST regime stabilising, these provisions may be imposed from July 1, said a senior government official.
The TDS …

April 8, 2020 / Direct Taxation

Start-ups get partial exemption from angel tax

Since a start-up gets high investment because of its idea, applying Section 56(2)(viib) to recover the tax on pretext of inflated valuation would be prejudicial to the interest of the start-up. Startups to file new Form-1 and Form-2 in order to claim tax incentives.
The application in Form-1 shall be filed along with prescribed documents before CBDT to obtain a tax exemption certificate under Section 80-IAC. The Form-2 shall be filed by the start-up to claim exemption from the applicability …