Commerce Duniya

Basics of GSTR-1 a. What is GSTR-1? GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It contains details of all outward supplies i.e sales. The return has a total of 13 Sections. b. When is GSTR-1 due?   The due dates for GSTR-1 are based on your turnover. Businesses with sales of upto Rs. 1.5 crore will file quarterly returns. Other taxpayers with sales above Rs. 1.5 crore have to file monthly return. Annual Turnover up to Rs 1.5 crore can opt for quarterly filing Quarter Due date Oct-Dec 2018 31st January 2019 Jan- Mar 2019 30th April 2019 Monthly GST Return Annual Turnover of more than Rs 1.5 crore must file monthly Period Dates December 2018 11th January 2019 January 2019 11th February 2019 February 2019 11th March 2019 March 2019 11th April 2019   c. Who should file GSTR-1? Every registered person is required to file GSTR-1 irrespective of whether there are any transactions during the month or not. The following registered persons a...

1. What is relief under section 89(1)? Tax is calculated on your total income earned or received during the year. If your total income includes any past dues paid in the current year, you may be worried about paying a higher tax on such arrears (usually tax rates have gone up over the years). To save you from any additional burden of tax due to delay in receiving income, the tax laws allow a relief under section 89(1). In simple words, you do not pay more taxes if there was a delay in payment to you and you were in a lower tax bracket for the year you received the money. 2. How to calculate tax relief under Section 89(1) on salary arrears If you have received any portion of your salary. in arrears or in advance, or you have received the family pension in arrears, you are allowed some tax relief under section 89(1) read along with Rule 21A. Here’s how you can calculate the tax relief yourself – Step 1:  Calculate tax payable on the total income, including additional salary...

All about GST Returns These returns are as per the CGST Act* Return Form Particulars Frequency Due Date GSTR-1 Details of outward supplies of taxable goods and/or services affected Monthly 11th* of the next month with effect from October 2018 *Previously, the due date was 10th GSTR-2 Suspended Details of inward supplies of taxable goods and/or services affected claiming the input tax credit. Monthly 15th of the next month   GSTR-3 Suspended Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of tax. Monthly 20th of the next month   GSTR-3B Simple Return in which summary of outward supplies along with Input Tax Credit is declared  and payment of tax is affected by taxpayer Monthly 20th of the next month CMP-08** Return for a taxpayer registered under the composition levy Quarterly 18th of the month succeeding quarter GSTR-5 Return for a Non-Resident foreign taxable person Monthly 20th of ...

Need for GST Audit and meaning Audit under GST involves examination of records, returns and other documents maintained by a GST registered person. It also ensures correctness of turnover declared, taxes paid, refund claimed, input tax credit availed and assess other such compliances under GST Act to be checked by an authorized expert. GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes and file returns. Thus, to ensure whether the taxpayer has correctly self -assessed his tax liability a robust audit mechanism is a must. Various measures are taken by the government for proper implementation of GST and audit is one amongst them.   Types of GST Audit   Types Performed By When Initiated Turnover based Audit Chartered Accountant or Cost Accountant appointed by the taxpayer If the Turnover exceeds 2 crores the taxpayer has to get his accounts & records audited Normal audit/General Audit Commissioner of CGST/SGST or any...

1. What is ITR? Income Tax Return ( ITR ) is a form in which the taxpayers file information about his income earned and tax applicable to the income tax department. The department has notified 7 various forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. Every taxpayer should file his ITR on or before the  specified due date . The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to like individuals, HUF, company, etc. 2. Why you should file ITR? It is mandatory to file income tax returns (ITR) in India if any of the conditions mentioned below are applicable to you: 1. If your gross annual income is more than- Particulars Amount For individuals below 60 years Rs 2.5 Lakh For individuals above 60 years but below 80 years Rs 3.0 Lakh For individuals above 80 years Rs 5.0 Lakh 2. If you have more than one source of income like house property, capital gains e...

What is capital goods? Capital goods are assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services. For example, a blast furnace used in iron and steel industry is a capital asset for the steel manufacturer.   Difference between capital goods & other inputs Let us take an example. You are making a cake in your oven. You add ingredients eggs, water, flour, butter. These are your inputs. The cake is your final product.  The oven is the capital good which helps you to make the cake. Inputs are consumed while making the final product and are treated as business expenses as cost of production. Capital goods are not consumed when the final product is made. They are not consumed in a single year of production. Therefore, they cannot be entirely deducted as business expenses in the year of their purchase. Instead, they are depreciated over the course of their useful lives. The business recognises part of the...

1. What is Reverse Charge? Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed. 2. When is Reverse Charge Applicable? A. Supply from an Unregistered dealer to a Registered dealer If a vendor who is not registered under GST, supplies goods to a person who is  registered under GST , then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier. The registered dealer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. For Inter-state purchases the buyer has to pay IGST. For Intra-state purchased CGST and SGST has to be paid under RCM by the purchaser. B. Services through an e-commerce operator If an e-commerce operator supplies services then reverse charge will be applicable to the e-commerce operator. He will be liable to pay GST. For...