S. T. Patil And Associate

05/06/2019

Successfully Completed 6 Years

16/06/2018

Success party..

19/08/2017

3B return date extended i.e. 28/08/2017 is only for those dealers who's excess set-off of 30/06/2017 is carry forward in GST Era & they want to take set-off in tax liability of july return but such persons has to File Trans-1 Form (Stock Statement) before 28/08/2017 compulsorily. Date for challan payment is not extended and is the same i.e. 20/08/2017.

10/05/2017

The Indian indirect tax system presently has myriad taxes. The Goods and Service Tax (GST) that is slated to come into force from July 1 will subsume all these taxes into one. Before delving into detail, let us understand the various taxes that will collapse into GST.
-Central Excise Duty
-Service Tax
- Countervailing Duty
- Special Countervailing Duty
-Value Added Tax (VAT)
-Central Sales Tax (CST)
-Octroi
-Entertainment Tax
-Entry Tax
-Purchase Tax
-Luxury Tax
-Advertisement taxes
-Taxes applicable on lotteries.
All transactions such as sale, transfer, barter, lease, or importation of goods and/or services made for consideration will attract GST.
How will GST actually work?
India shall adopt a Dual GST model, which means that the GST would be administered by both the Central and the State Governments. The dual GST model and the taxes levied on each kind of transaction can be seen as below:GST_Table_May09

The GST to be levied by the Centre on intra-state supply of goods and/or services is Central GST (CGST) and that by the States is State GST (SGST).
On inter-state supply of goods and services, Integrated GST (IGST) will be collected by Centre. IGST will also apply on imports.
GST is a consumption based tax i.e. the tax should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured. IGST is designed to ensure seamless flow of input tax credit from one state to another. One state has to deal only with the Centre government to settle the tax amounts and not with every other state, thus making the process easier.
Illustration I: Selling within the state
Suppose a manufacturer in Pune sells goods to dealer in Nasik worth Rs 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%. The tax collected is Rs. 1800; Rs. 900 will go to the central government and Rs. 900 will go to the Maharashtra government. Now the dealer sells the goods to customers in Mumbai for Rs 15,000. Here again CGST at 9% and SGST at 9% will be levied. The sale price increases and so does the tax liability. In case of resale, the credit of input CGST (Rs 900) and input SGST (Rs900) is claimed as shown, and the remaining taxes go to the respective governments.
GST_Illustration1_NewA
Illustration II: Selling within the state and then outside the state
Suppose a manufacturer in Pune sells goods to dealer in Nasik worth Rs 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%, in such case, the tax collected is Rs. 1800 - Rs. 900 will go to the central government and Rs. 900 will go to the Maharashtra government. Now the dealer sells the goods to customers in Bangalore for Rs 15,000. The applicable GST now will be IGST at 18% (IGST will be the sum of CGST and SGST) this will work out to Rs 2700. But the dealer will be able to take the input tax credit CGST (to the tune of Rs 900) and SGST (to the tune of Rs 900).
Against IGST, both the input taxes are taken as credit. But we see that although SGST never went to the central government, the credit is still claimed.This is the crux of GST. Since this amounts to a loss to the Central Government, the state government compensates by transferring the credit to Central Government.
GST_Illustration2_newA
Illustration III: Selling outside the state and then within the state
Suppose a manufacturer in Pune sells to a dealer in Bangalore, goods worth Rs 10,000. The applicable GST is IGST at the rate of 18%. The manufacturer collects Rs 1800 and this will go to the Central government. Now the dealer sells it to customers in Mysore for Rs 15,000. The applicable GST will now be CGST (at 9%) and SGST (at 9%).
Against CGST and SGST, 50% of the IGST that is, Rs. 900 is taken as a credit. But we see that although IGST never went to the state government, the credit is still claimed against SGST. Since this amounts to a loss to the state government, the Central Government compensates thestate government by transferring the credit to the state government.
GST_Illustration3_NewA
How should one avail of the tax credit?
Availability of Input Tax Credit (ITC) at various levels is one of the most important features of GST.
For claiming of the ITC, billions of buyer and seller invoices will have to be uploaded and matched every month. The Common GST Portal which has been developed by GSTN (Goods and Services Tax Network) will handle this task on the basis of invoice level data filed as part of return by all the taxpayers.
In the case of Inter-state supplies where goods or services will be supplied from the state of origin to the state of consumption, the taxation will be done accordingly, as GST is a destination based tax. The claim of IGST and the utilisation of credit will be done on the basis of the returns filed on the GST portal.
So every entity with an annual turnover of greater than Rs 20 lakhs will have to be registered and every transaction detail will have to be uploaded in the portal.
So if a good or service is procured from an entity with annual turnover of less than Rs 20 lakhs GST has introduced areverse charge mechanism - the buyer is the responsible person to pay the GST tax because the registration was not taken from the department by the seller.
Here the buyer should not claim any input tax credit but GST will be collected from him on his sale.
What happens to smaller entities?
As the above-mentioned process highlights GST will entail significant amount of compliance work to start with. Hence, companies will have to hire the right kind of skill set and be ready with the IT infrastructure prior to the roll out.
Small businesses need not fret. The GST System will have a G2B portal for taxpayers to access the GST Systems. However, that would not be the only way for interacting with the GST system as the taxpayer may choose third party applications, which will provide all user interfaces and convenience via desktop, mobile, other interfaces, to interact with the GST system. All such applications are expected to be developed by third party service providers who have been given a generic name,GST Suvidha Provider or GSP.
(This is the first of a two-part series to make our readers understand the basics of GST)

S. T. Patil And Associates,
Akola

20/03/2017

Last Date For Filing Of Belated Income Tax Return U/s. 139(4) For Assessment Year 2016-17– Whether 31.03.2017 Or 31.03.2018
Introduction: The due date for filing of Income Tax Return is mentioned in Section 139(1) of the Income Tax Act (hereinafter mentioned as “Act”). As per this section the due date for filing of return for the Assessment Year 2016-17 were 31st July, 2016 and 30th September, 2016 for different types of assesses. Later on, the above due dates of 31st July, 2016 and 30th September, 2016 were extended by the CBDT to 5th August, 2016 and 17th October, 2016.
If the return could not have been filed within the above due dates even then the same can be filed validly as a belated return within the time limit prescribed U/s. 139(4) of the Act.
Last year, the above section 139(4) was amended by the Finance Act, 2016 due to which it is being frequently asked that whether the last date for filing of belated income tax return U/s. 139(4) for the Assessment Year 2016-17 is 31st March, 2017 or 31st March, 2018.
Present Provisions of Section 139(4) (Before amendment) : These are mentioned as under :
(4) Any person who has not furnished a return within the time allowed to him under sub-section (1), or within the time allowed under a notice issued under sub-section (1) of section 142, may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier : (emphasis is supplied by me).
According to these provisions, the belated return can be filed within one year from the end of the relevant assessment year (the provisions of “before the completion of the assessment” is not relevant here for present discussion). The assessment year 2016-17 will end on 31st March, 2017. One year from the end of the assessment year (i.e., from 31.03.2017) will expire on 31st March, 2018. Therefore, according to the present provisions (before amendment) of section 139(4), the belated return for the assessment year 2016-17 can be validly filed up to 31stMarch, 2018.
Amendment In Section 139(4) by Finance Act, 2016 : The above section 139(4) has been amended by the Finance Act, 2016. The amended provisions are mentioned as under :

Following sub-section (4) shall be substituted for the existing sub-section (4) of section 139 by the Finance Act, 2016, w.e.f. 1-4-2017 :
(4) Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. (emphasis supplied by me).
Through the above amendment, the time limit for filing of belated return has been reduced by 1 year. Due to this, a belated return can be filed only up to the end of the assessment year. This amendment is effective from 01.04.2017. In the memorandum explaining clauses / notes on clauses it has been specifically mentioned that this amendment is applicable from the Assessment Year 2017-18. Thus, the amended provisions may not be applicable for filing of the belated return of the Assessment Year 2016-17. Therefore, 31st March, 2017 may also not be the last date for filing of belated return for the Assessment Year 2016-17. The last date for the same may be only 31st March, 2018.
An Another Prevailing View : There is an another view prevailing that the above amendments may also be applicable to the filing of returns of Assessment Year 2016-17. Thus, according to this view, the last date for filing of belated return for the Assessment Year 2016-17 may be 31.03.2017 and not 31.03.2018. This view appears to have been generated on the basis that these provisions are applicable from 01.04.2017. When these provisions will be read on 01.04.2017 or later then the straight forward meaning of this section will be that the belated return can be filed only up to the end of the assessment year. Up to that time, the assessment year 2016-17 will become ended. Thus, according to this view, the return for AY 16-17 may not be filed on or after 01.04.2017. In support of this view, there are many articles on the internet on various website. It is also seen that various messages in support of this view are being circulated on social media.
An Analysis of Second View : The second view do not appear to be logical in the present scenario. It is so because with the amendment, merely the effective date of its applicability i.e., 01.04.2017 has not been mentioned but alongwith that the assessment year from which the above amendment shall be applicable has also been specifically mentioned in the Memorandum explaining clauses / notes on clauses. If only the effective date of amendment i.e., 01.04.17 would have been mentioned without any reference to the assessment year from which the amendment will be effective, then in such a situation the second view might have been applicable. But the present situation is completely different as the assessment year from which the amendment shall be applicable has been specifically mentioned.
Apart from the above, it is also considerable that it is seen that many assesses have received reminder from the Income Tax Department for filing the income tax return. These are only for the Assessment Year 2015-16. If the upcoming date of 31st March, 2017 was also the last date for filing of the belated returns for the Assessment Year 2016-17 then the department might had also issued such reminders for the Assessment Year 2016-17 also.
Conclusion : Therefore, logically it may be considered that the above amendment may not applicable for filing of belated returns for the Assessment Year 2016-17. Thus, the last date for filing of belated return for the Assessment Year 2016-17 may be only 31.03.2018 and not 31.03.2017.
However, it is expected that the CBDT should also issue some clarification to give relief to the tax assesses from inconveniences

- S T PATIL AND ASSOCIATES...
AKOLA

19/03/2017

05/03/2017

Furnishing of Aadhaar mandatory for final settlement of Pension claims

The EPFO has clarified that obtaining of Aadhaar should be mandatory for the time being only for final settlement of Pension and not in withdrawl cases. The EPFO had extended the date of submission of Aadhaar Number authentication by the members of Employees’Pension Scheme 1995 upto 31st March 2017.

However, news item appearing in few dailies suggested that Aadhaar is not required in settlement of pension claims. Accordingly, the EPFO reiterated that the requirement of submitting Aadhaar is not insisted for the time being only in withdrawal benefit cases under Employees’ Pension Scheme, 1995. Furnishing of Aadhaar is still mandatory for final settlement of pension and scheme certificate cases.

S. T. Patil And Associates...

Akola

04/03/2017

Govt aiming for July 1 rollout of GST: Jaitley:

Finance Minister Arun Jaitley addressed the media after the GST Council meeting in New Delhi. Here's what he said:

"State GST law has to be passed in state assemblies, legal committee will finalise it in next 3 days & circulate to states."

"July 1 looks possible for rollout of GST; cap rate will be kept at a higher rate; applied rate will be 5, 12, 18, 28 per cent."

"UT-GST along with SGST will be on lines of CGST law; GST Council to consider them at March 16 meeting"

"CGST, IGST and UT-GST law to be taken to Parliament in the second half of Budget session beginning March 9."

The GST Council meeting broadly agreed on the contours of two key legislations -- CGST and IGST -- but a final approval is likely only by mid-March. Jaitley met his state counterparts and discussed the GST legislation to be adopted by Union Territories, but there was no discussion with regard to the State GST Bill.

"As many as 26 changes sought by the states have been accepted by the Centre. This shows the federalist character of India. CGST and IGST will come up for further discussion at the next meeting of the Council in mid-March," West Bengal Finance Minister Amit Mitra said.

S. T. PATIL AND ASSOCIATES...

AKOLA

03/03/2017

News

Road to GST: Jaitley-headed council to approve four draft bills on Saturday

The Goods and Services Tax (GST) Council headed by Finance Minister Arun Jaitley is expected to approve four crucial bills on Saturday paving the way towards the roll-out of India's biggest tax reform from July 1.

The legally vetted draft laws for all important bills — Central GST (CGST), State GST (SGST), Integrated GST (IGST) and Union Territory GST (UTGST) — will likely be cleared by the Council in its eleventh meeting in New Delhi.

The government would then introduce the model GST law, which provides a common draft of CGST law, SGST law, IGST law, UTGST law and Compensation Law, in Parliament in the second half of the Budget Session beginning next week.

Last month the Council cleared the draft compensation law, according to which the Centre will have to fully compensate states for any revenue loss for five years after migrating to the new tax system.

Vetting of the legal language of the draft CGST, IGST and SGST laws raised a couple of issues that had to be clarified to the legal department of the Council. As a result, these laws were not cleared in the last meeting in February.

The legal committee had questions on some of the issues including Composition of Appeal tribunal in Centre and States and eligibility of members, delegation of powers, exemptions during the transition phase, services and Value Added Tax in works contracts, as well as definition of agriculture.

Under GST, the states and the Centre will collect identical rates of taxes on goods and services. For instance, if 18 percent is the GST rate on a good, the states and the Centre will get 9 percent each called the CGST and SGST rates.

The Centre will also levy and collect the IGST on all inter-State supply of goods and services. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one state to another.

The GST Council is also said to have proposed raisingthe peak rate in the model GST Bill to 20 percent from existing 14 percent, which may lead to a peak GST levy move up to being as high as 40 percent (20 percent central and 20 percent state).

This would be only an enabling provision to ensure that Parliamentary ratification is not required if the rate need to be increased in the future for an exigency. The effective peak rate will continue to remain at 28 percent.

Last year, the council had agreed on a four-slab structure –5, 12, 18 and 28 percent.

The draft of model GST law provides for a maximum rate of tax at 14 percent, which would imply an equal 14 percent central GST and state GST, taking the total to 28 percent.

The rates committee, comprising officials from the Centre and the States, will soon determine which commodity will fall in which rate slab.

S. T. Patil And Associates....

Akola

28/02/2017

GST to be in force from July 1; all states have agreed: Shaktikanta Das
Mumbai: It's official. The Goods and Services Tax will be implemented from July 1 this year. Economic Affairs Secretary Shaktikanta Das on Tuesday said that all states have agreed on July 1 deadline.
"GST to be implemented by July 1, 2017; all states have agreed," ET Now quoted Das as sating. The indirect tax regime that will subsume all other taxes is on path to miss its initial deadline of April 1.
Earlier, the all-powerful GST Council at its 10th meet cleared certain provisions of key supporting legislations. The Council will again take up model GST laws at its next meeting on March 4-5 for a final clearance.
Draft bill over compensation to states was approved at the same meeting. The compensation law provides for a formula for revenue sharing between the Centre and the States.
Earlier, the Council headed by Finance Minister Arun Jaitley had stated that in the beginning states will be compensated for five years for loss of revenue due to GST implementation.
Once the Council approves Integrated GST, Central GST, the government will prepare a model GST bill to present it in the later phase of Budget session of Parliament.

S. T. Patil And Associates....

Akola...

29/01/2017

Officials will be protesting some recent decisions taken by the GST Council headed by FM Arun Jaitley.

New Delhi: About 70,000 tax officers and employees in the country will wear black bands at work tomorrow, on Martyrs Day, to protest some recent decisions taken by the GST Council headed by Finance Minister Arun Jaitley.

The associations representing them said the decisions are heavily tilted towards the states which is not good for the sovereign function of the Centre to levy and collect taxes. While extending their support for successful and smooth implementation of Goods and Services Tax (GST), the associations demanded that the same has to be done in a rational and transparent manner.

"However, in the present set of things and decisions, which has been taken in the recent meeting of the GST Council, it is felt that the basic structure of the scheme is being compromised and the same may lead to utmost chaos which may be detrimental not only to the revenue but also to the industry, trade and commerce in general," the associations said in a statement issued today.

The Council had in its January 16 meeting agreed to give states the powers to levy tax on economic activity within 12 nautical miles of territorial waters and to administer 90 per cent of the tax payers under Rs 1.5 crore annual turnover besides certain provisions of Integrated GST.

These and other decisions are being objected to by the officers working under Central Board of Excise and Customs (CBEC) who feel that there is an urgent need for their review.

The associations said they believe in Constitutional methods of protests only to make their voices heard and to draw the attention of decision makers. The action plan of the movement will start with wearing of black bands by 70,000 officials of CBEC on January 30, Martyrs Day, it said.

The members of Indian Revenue Service (Customs and Central Excise), All India Association of Central Excise Gazetted Executive Officers, All India Central Excise Inspectors' Association and All India Central Excise and Service Tax Ministerial Officers Association will participate in tomorrow's symbolic protest.

Referring to the contentious issue of dual control over the assessees, the associations said the duality of control would in turn lead to spurt in litigation amongst the states thereby increasing the burden on the courts that are already burdened.

"Any decision taken in haste may lead to a situation wherein the national interest gets jeopardised and the trade and industry suffers which would not be in the interest of the nation and its economical growth," they said.

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