The Bhimavaram Accountants Welfare Association

12/08/2015

Modi aims to bring reforms to GST for last minute discussion

Prime Minister Narendra Modi govt will try to pass GST bill setting the path for India’s biggest tax shake-up GST, in a last attempt which is restricted by the opposition.

The delay of the bill is happening due to the reason of the majority of BJP in the upper house and that will continue in the same way unless some of the opposition votes are in the favor to pass the bill.

However, the Modi government I likely to outperform the last try of the session and may end up advantageous in passing the bill

29/07/2015

Today d view of d sun-29-7-15

29/07/2015

GST Bill reworked and is all set to go

The GST Committee has analysed and pointed out every difference in the GST Bill. “The Government should therefore be able to pass it in this session of Parliament if it comes to Union Minister of State for Commerce and Industry.

Stating that the committee formed to iron out the differences has done a detailed thrashing of the various processes, she said, “the GST bill itself, prior to the GST Bill per se needs a constitution amendment. The first step therefore is constitution amendment and then the Bill; post this, it will be the laying of rules. At this stage, every difference has been ironed out by the committee.”

After all the new government always says that by bring up new policies on board and to implement them quickly and they are trying to revive the economy. But the odds are manifesting themselves in Parliament. Against every such terrible odd, the government is trying it best to take everyone’s voice on board.

28/07/2015

27/07/2015

the last pic of apj abdul kalam

27/07/2015

Rajya Sabha panel backs majority of GST Bill proposals
The Opposition forced adjournments in both Houses of Parliament on Wednesday, the chances of the Constitution (122nd Amendment) Bill, meant to introduce the Goods and Services Tax (GST), clearing Parliament in the current session brightened, with the Rajya Sabha Select Committee endorsing almost all its provisions.

The GST rate should not go beyond 20 per cent as standard rate and 14 per cent as reduced rate. It agreed with the demand of parties such as the Trinamool Congress for full compensation from the Centre for any revenue loss to the States during the transition. It suggested that the provision in the Bill that the Centre “may” compensate the States for up to five years for any revenue loss be replaced with a commitment of compensation for five years.

The committee’s report also contained dissent notes from the Congress, the AIADMK and the Left parties.

The Bill, which the Lok Sabha has already approved, will now have to be taken up for passage in the Rajya Sabha. As it is a Constitution amendment Bill, it will have to be approved by two-thirds of the members in the Upper House, where the ruling BJP does not enjoy a majority. The government will have to depend upon the support of regional parties and allies.

“Administratively, we are taking steps to ensure that both the Centre and the States will be able to meet the rollout target date of April 1, 2016. Efforts would be made to have a reasonable rate of GST so that the experience is a successful one for the whole country,”.

“We are hopeful that the Congress will reconsider its irresponsible stand on the GST .It is hardly a dissent note on the Bill; it is a dissent against the Congress’s own proposals , Congress MPs are giving a dissent against the suggestions made by their own Chief Ministers,”.

27/07/2015

E-filing preferable to physical route while declaring illegal foreign assets

One of the concerns regarding the one-time settlement window under the Undisclosed Foreign Income and Foreign Assets Bill, 2015 (Black Money Act) is that the information could be misused. Tax payers are worried they could be subject to stringent scrutiny by assessing officers (AOs) on their income, assets, and bank accounts. According to experts, this problem can be addressed to some extent by filing directly, online or physically, with a separate cell and not through the regular procedure.

The sanctity of the information will be maintained. The information will not be leaked and AOs will not be able to use this information to ask questions about other assets or bank accounts of tax-payers,’’.

Under the one-time settlement window, tax payers have time till September 30 to declare their illegal foreign assets and income and till December 31 to pay the penalty and tax. The penalty and tax together is 60 per cent of the assets. After the window, those found with illegal assets will be charged 90 per cent penalty.

For the one-time settlement, tax-payers have to use Form 6. It can be done either physically or electronically. In case of e-filing, tax-payers will need to use a digital signature, which can be purchased from agencies that offer it for a fee. Without the digital signature the disclosure is not valid.

“Tax-payers have to purchase the signature and register it with the I-T department before they can use it. The online route is preferable since it will be faster and tax payers don’t have much time at their disposal,’’.

In case of e-filing, the acknowledgment received is the final acknowledgment. There is no need to send the physical acknowledgment to the central processing centre.

Digital signatures can be purchased from private agencies by paying a fee and furnishing basic information such as PAN card, proof of identity and address. There are different varieties of digital signatures. For all statutory and tax compliance, usually it is Tier-II signature that is used. “The signature is valid for two years from the date of purchase. It can also be used for any other purpose where a digital signature is valid, but remember to register with the agency or government body concerned,”.

While steps such as e-filing will simplify the disclosure process, structural issues are still not addressed. “For instance, the tax plus penalty rate of 60 per cent is too stiff. You effectively end up paying 150 per cent of the post-tax income. Then, the rule about disclosing details of all bank account and all deposits in the account, but not withdrawals, is confusing. And every single deposit need not mean it is income. Does one have to keep documentary evidence of all receipts? These issues require clarity.”

Going ahead, the risk of lack of compliance will be greater as regulation and exchange of information between countries increases.

Hence, it is advisable to use the compliance window and declare foreign assets. But tax payers must also keep in mind that if they don’t pay the entire penalty plus tax amount before December 31, the compliance will not be considered valid. Similarly, if it is discovered that the tax payer had suppressed any information or shown incorrect calculation of the income or assets, then, too, the compliance will be not be considered valid..