RSR Advisory & Consulting Services LLP

05/01/2020

ألف مبروك للفائز بجائزة ⁧ ⁩ و مبروك لنادي النصر حصوله على كأس السوبر السعودي. 🏆

⁧

Congratulations to the winner of the award and congratulations to Al-Nassr Club for winning the Saudi Super Cup.🏆

05/01/2020

16/07/2018

Dear Tax Payer

File Your Income Tax Return


31/07/2018 is Due Date for filing of Income Tax Return for the A.Y. 2018-19

ITR filing After Due Date will attract Penalty of Rs. 5000

10/04/2018

LATE FEE ON DELAY IN FILING INCOME TAX RETURN FOR THE YEAR ENDED 31ST MARCH, 2018 (Asst.Yr: 2018-19) under sec. 234F:

1. If Return filed during 01/04/2018 – 31/07/2018 : Late Fee NIL
2. If Return filed during 01/08/2018 – 31/12/2018 : Late fee Rs. 5000 (Five Thousand)
If total income does not exceed Rs.5 Lakhs then this Late fee will be restricted to Rs.1000 only.
3. If Return filed during 01/01/2019 – 31/03/2019 : Late Fee Rs.10000 (Ten Thousand).
If total income does not exceed Rs.5 Lakhs then this Late Fee will be restricted to Rs.1000 only.
There nay be last minute moment panic due to any technical problem such as AADHAR mismatch, server problem, personal problem, etc.
TIME FOR LINKING AADHAAR WITH PAN IS EXTENDED TILL 30TH JUNE 2018.

03/04/2018

*Review outstanding debtors and creditors*

To be able to claim input tax credit of an invoice, its payment must be made within 180 days. If the payment is not made, the credit taken on that invoice must be reversed. And whenever such payment is made credit may be taken then. By this logic, invoices issued before 1st October 2017 must have been paid by 31st March 2018. If not, you’ll have to reverse the input credit claimed. This requires proper ageing analysis of outstanding debtors and creditors. so your March 2018 GST Return is filed properly.

10/11/2017

GST update on issuance of debit notes and credit notes.

Section 34 of CGST Act 2017 prescribes provisions related to issuance of debit notes and credit notes. The sub-section (1) and (2) to this section reads as follows:-

"(1) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.

(2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:

Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person."

The analysis of this section makes it clear that where a tax invoice has been issued against any supply, credit note MAY be issued by the supplier in following cases:-
• Taxable value or tax charged in that invoice is found in excess of actual; or
• In case of goods returned by the recipient; or
• Where the supply (goods or services or both) is found deficient.


Thus, in any of the above cases, option has been given to the supplier to issue a credit note as the language contained in the above section uses the word "may". This shows that it is optional for the supplier to issue the credit note, but once issued, its details are supposed to be filed by the supplier in the return.

Further, section 34(3) & (4) of CGST Act prescribes the conditions related to issuance of debit notes. This section reads as follows:-

"(3) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed.

(4) Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare the details of such debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted in such manner as may be prescribed.

Explanation.––For the purposes of this Act, the expression “debit note” shall include a supplementary invoice."

The analysis of above makes it clear that debit note SHALL be issued by the SUPPLIER in the cases where the tax amount or taxable value charged on the invoice is found to be less than actual. Further, where the debit note is issued, the supplier shall declare the details of such debit note in the return for the month during which such debit note has been issued.

The analysis of above provisions related to issuance of debit note or credit note makes it clear that in case of sales return, an option has been given to the supplier to issue the credit note. Since the language of this section uses the word 'may', we can conclude that it is an option lying with the supplier and alternatively, the debit note can also be issued by the recipient while returning the goods to original supplier.


But at the same time, the language of section 34(3) is also clear that the debit note "SHALL" be issued by the SUPPLIER. In other words, section 34(3) gives exclusive power to issue the debit note to the supplier only. It nowhere states that the debit note can be issued by the recipient also.

However, when we look into the returns prescribed under GST law, it shows some other picture. GSTR-2 in which details of inward supplies is to be given reflects that the debit note as well as the credit note, both can be issued by the buyer/recipient of supply also. Thus, the return formats which are the parts of CGST Rules, 2017 are giving altogether different interpretation than what is suggested by the section 34. If there arises any dispute, which one will prevail in such case.

If there is any conflict between the interpretation given by the Act and interpretation given by the Rules, the Act will always have the precedence. This is known as “Gunpradhan principle” which has been laid down by the hon’ble Supreme Court in the case of ISPAT INDUSTRIES LTD. Versus COMMISSIONER OF CUSTOMS, MUMBAI [ 2006 (9) TMI 181 - SUPREME COURT OF INDIA ]. In this case, it was held that the Act is primary and the rules framed there under are subsidiary to it. As such, in case of any conflict between the two, the Act will have precedence.

03/10/2017

Assist and Manage all accounting operations based on accounting principles

Prepare budget and financial forecasts

Publish financial statements in time

Conduct month-end and year-end close process

Collect, analyze and summarize account information

Compute taxes and prepare tax returns, balance sheet, profit/loss statement etc

Develop periodic reports for management

Audit financial transactions and document accounting control procedures

Keep up with financial policies, regulation and legislation

23/09/2017

GST Return Filings

GST registration holder are required to file GSTR-1 (details of outward supplies) on the 10th of each month, GSTR-2 (details of inward supplies) on the 15th of each month and GSTR-3 (monthly return) on the 25th of each month. Dealers registered under the GST composition scheme are required to file GSTR-4 every quarter, on 18th of the month next to the quarter. Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December.

GSTR 1:

GSTR1 or return of outward supplies must be filed by all taxpayers having regular GST registration. The due date for filing GSTR1 return is the 10th of every month. For July, September and October, the GST return due dates are different from the normal schedule.

GSTR 2:

GSTR2 or return of inward supplies must be filed by all taxpayers having regular GST registration. The due date for filing GSTR 2 return is the 15th of every month. For July, September and October, GSTR2 return due dates are different from the normal schedule.

GSTR 3:

GSTR3 or monthly GST return must be filed by a taxpayer after filing GSTR1 and GSTR2 return. GSTR3 is due on the 20th of every month. For July, September and October, GSTR2 return due dates are different from the normal schedule.

GSTR 4:

GSTR4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that is due on the 18th of October, January, April and July.

GSTR 5:

GSTR5 return must be filed by persons registered under GST as a non-resident taxable person. GSTR5 is due on the 20th of every month.

GSTR 6:

GSTR6 return must be filed by persons registered under GST as an input service distributor. GSTR6 return is due on the 13th of every month.

GSTR 7:

GSTR7 return must be filed by all taxpayers required to deduct tax at source (GST TDS). Under GST, only certain government agencies are required to deduct tax at source after obtaining registration. Hence, GSTR7 is due only for those entities having GST TDS registration. GSTR7 is due on the 10th of every month.

GSTR 8:

GSTR8 return must be filed by taxpayers required to collect tax at source. E-commerce operators are required to collect tax at source. Hence, any persons operating an e-commerce venture must register for TCS, collect tax at source and file GSTR8 return before the 10th of every month.

GSTR 9:

GSTR9 is GST annual return that must be filed by all regular taxpayers. Details submitted with GSTR9 must be audited if the entity has a turnover of more than Rs.2 crores. GSTR9 is due on or before the 31st of December.

GSTR 10:

GSTR10 return must be filed by any person whose GST registration has been cancelled or surrendered. GSTR10 must be filed within 3 months of the date of cancellation order or surrender.

GSTR11:

GSTR11 must be filed by persons having Unique Identity Number. GST Unique Identity Number is allotted to Consulate, Embassies and UN Bodies for claiming refund on inward supplies.

For More Details :: Contact RSR

22/09/2017

At RSR, We Offer Following Services too

A. ACCOUNTING SERVICES for national and international clients (mainly GCC)

Entries in the accounting system
Receivable management
Payable management
Accounts Finalisation
MIS Reporting
COMPLIANCE SERVICES

B. Incorporation Services

Company secretarial Compliances
Direct tax Compliances
Indirect Tax Compliances
TDS compliance

HOW WE WORK:::

At RSR Team of Accounts executives is managed by qualified experienced Chartered Accountants, tax practitioners and lawyers.

There are two ways in which accounting and compliance services are provided:

1. At Your Place:

In this situation the entire work is done at your office by our/ your accounts executives and which is monitored by a qualified chartered accountant on a weekly or monthly basis as per the requirements. All complex work like GST, TDS and GST, TDS Returns are done at our office under strict supervision.

2. At Our Place :

In this case you can send the documents through courier or email to our office or we can get it collected from your office. All accounting will be done at our office. It is very helpful and cost effective when the numbers of transactions are very low.

17/09/2017

*ITC Rules for Capital Goods under GST*

One of the critical aspects of the Goods and Services Tax, or GST, is the availability of input tax credit on capital goods used for manufacturing activities. ITC Rules for Capital Goods under GST have been prescribed which is to be followed strictly.

Manufacturing contributes a major part to our country’s GDP and initiatives such as Make in India, Digital India are going to boost it further.

The GST Council has agreed upon rules related to transition, input credit, registration as well as other features of the tax. In this article, we shall give you our guide on ITC Rules for Capital Goods under GST.

*ITC Rules for Capital Goods under GST*

Below are the high level rules for determination of Input Tax Credit (ITC) w.r.t. Capital Goods and reversal if any:

A. Credit of Input Tax will not be available on the following:

i. Capital Goods used exclusively for effecting exempt supplies

ii. Capital Goods used exclusively for non-business (personal) activity

B. Credit of Input Tax will be available in totality where Capital Goods have been used for effecting taxable supplies and business activity without any restrictions

C. Amount of input tax referred in above points A and B must be indicated in Form GSTR-2 and however only point B will be credited to electronic credit ledger.

D. Where Capital Goods is used commonly for exempt and taxable supplies and/or business and non-business activity the credit of input tax shall be calculated in the following manner:

Such amount shall be credited to Electronic Credit Ledger

Useful life of such capital good shall be taken to be 5 years from the date of purchase

Now the total amount of input tax credited to Electronic Credit Ledger w.r.t. whole useful life such common capital good shall be distributed over the useful life



4. The above amount shall be calculated for all such common capital goods for every tax period namely a month

5. The amount of credit to be added to output tax liability attributable to exempt supplies out of input tax for common use of capital good shall be

6. Remaining amount after deducting credit attributable towards exempt supplies will be allowed as ITC

7. the above calculations must be done separately for:

Central tax

State Tax

Union Territory Tax

Integrated Tax

E. Where a capital good which was earlier used or intended to be exclusively used for:

Non- business purpose

Effecting exempt supplies

Later to be used commonly for:

Business and non-business purpose

Effecting taxable and exempt supplies

Input tax to be credited to electronic credit ledger would be:

= Input Tax – 5% of Input tax for every quarter or part thereof

Let us understand the situation through an example

Mr. Avinash bought a Capital Good intended to be used for effecting exempt supplies only, for Rs 1,00,000/- paying Rs 18,000 as input tax on 01/04/2017 and now on 15/11/2018 he wishes to use the capital good commonly for taxable and exempt supplies.

Now the eligible common input tax credit will be calculated as follows

= Input Tax – 5% of Input tax for every quarter or part thereof

= 18,000 – 5% of 18000 * 3 quarters

= 18,000 – 2,700

= 15,300

Now Mr. Avinash will credit Rs 15,300 to Electronic Credit ledger and follow the steps shown in point D to calculate the input tax attributable to exempt supplies out of common credit

F. Where a capital good which was earlier used, or intended to be exclusively used for effecting taxable supplies and business purpose

Later to be used commonly for

Business and non-business purpose

Effecting taxable and exempt supplies

Input tax to be credited to electronic credit ledger would be:

= Input Tax – 5% of Input tax for every quarter or part thereof

*Manner of reversal of credit under certain circumstances*

Under the following circumstances attributable credit of input tax will be added to output tax liability:

Where a normal taxpayer opts to pay tax under composition scheme or goods and/or services supplied by him become exempt

2. In case of supply of capital goods or plant and machinery, on which input tax credit has been taken

3. Every registered person whose registration is cancelled

Input tax credit involved in the remaining useful life in months shall be computed on pro-rata basis, taking the useful life as five years.

Example

Capital goods have been in use for 4 years, 6 month and 15 days.

The useful remaining life in months= 5 months ignoring a part of the month

Input tax credit taken on such capital goods= Ç

Input tax credit attributable to remaining useful life= C multiplied by 5/60

The above calculation must be done separately for integrated tax and central tax.

The amount determined must form part of output tax liability and furnished in:

Where a normal taxpayer opts to pay tax under composition scheme or goods and/or services supplied by him become exempt- FORM GST ITC-03

Registration is cancelled- FORM GSTR-10

Along with certification from a practicing chartered accountant or cost accountant.

In case of sale of capital good, where the amount determined as above is greater than the tax on transaction value of such supply, the amount determined as above will be added to output tax liability and details to be furnished in FORM GSTR1

*Capital goods send on job work*

Where a capital good including plant & machinery have been send to a job worker for job work, credit of input tax shall be allowed to the principal manufacturer.

Such goods must be received back within a period of 3 years of being send out or else it shall be treated as supply on the date on which goods was earlier send and tax would be payable along with interest for late payment of taxes

Where capital goods have been send directly to job worker after purchase of such capital goods, the period of three years would be calculated from the date of receipt of such goods by the job worker.

All the above provisions will not apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.

31/08/2017

The government has extended the date for filing goods and services tax (GST) for those providing online information and database access or retrieval services from outside India to a non-taxable online entity.

They can now file their July return (GSTR5A) by September 15, according to notification by the central government. This covers central GST as well as integrated GST. States would separately issue their respective notifications for SGST.


The government has notified new dates for filing of returns (GSTR6) for input service distributors for July to September 8 and for August to September 23. The July return forms had to be filed till August 13.

26/08/2017

The Goods and Services Tax1 (GST) in India was implemented on July 1, 2017. Even after two months of GST roll out, there is much confusion on what products come under GST and what not. Here is the list of products that are kept outside the purview of GST:
* Animal feed
* Aquatic feed
* Betel leaves
* Bread
* Butter milk
* Children's' picture, drawing or colouring books
* Coconuts
* Contraceptives (Condoms)
* Curd
* Earthen pot and clay lamps
* Educational services
* Eggs
* Fire wood


* Fish
* Fresh fruits
* Fresh milk
* Fresh vegetables
* Gandhi topi
* Hand operated agriculture equipments
* Hearing aids
* Human blood
* Human hair
* Indian national flag
* Indigenous handmade musical instruments
* Jaggery
* Judicial, Nonjudicial stamp papers, Court fee stamps
* Khadi yarn
* Kumkum, Bindi, Sindur
* Lassi
* Live animals
* Live trees and plants
* Medical services
* Municipal waste, sewage sludge, clinical waste
* Non-alcoholic Toddy, Neera
* Oraganic manure
* Pappad
* Plastic bangles
* Poultry feed & cattle feed
* Prasad (sacred food)
* Printed books, including Braille books and newspaper, periodicals & journals
* Puffed rice (muri)
* Puja samagri


* Raw jute
* Raw silk
* Raw wool
* Salt
* Semen
* Slates, Slate pencils and chalk sticks
* Tender coconut water
* Unbranded atta (flour) and maida
* Unbranded besan (gram flour)
* Unbranded natural honey
* Unpacked foodgrains (Cereals, pulses)
* Unpacked paneer
* Water (other than aerated, mineral, purified)
* Wood charcoal