CA Updates by CA. Pooja Shukla RYPS

Meaning Generally, the supplier of Goods & Services is liable to pay GST (supplier collect tax from buyer and pay tax to Govt. on behalf of buyer). But under RCM GST is paid by recipient of Goods & Services (under RCM buyer directly pay tax to Govt.) Type of RCM There are two types of cases for which RCM is mandatory 1.        Covered under section 9(3) of CGST/SGST (UTGST)Act and section 5(3) of IGST Act. supply Goods or Services or both notified by the Government 2.        Covered under section 9(4) of CGST/SGST (UTGST) Act and section 5(4) of IGST Act. Supply of taxable Goods or Services or both by an unregistered supplier to a registered supplier.    Registration If RCM is applicable to a person, then GST registration is mandatory. At that time threshold limit of Rs 10/20/40/ lacs will not be applicable to them ITC ...

In the Union Budget 2019-20, The Hon’ble Finance Minister announced the SABKA VISHWAS – LEGACY DISPUTE RESOLUTION SCHEME 2019 , The Scheme has now been notified and will be operationalized from 1st September 2019. The scheme would continue till 31st December 2019. PURPOSE  The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Services Tax that are subsumed in GST and are pending in litigation at various forums. The object of this scheme is to free as large segment of taxpayers from the legacy taxes as possible. COMPONENTS  There are two main components of the scheme are dispute resolution and amnesty. The amnesty component of the scheme offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law. it provides substantial relief in tax dues for all categories of cases as well as full waiver of interest, fine, penalty, there is also complete amnesty from prosecution. ...

 BUSINESS STRUCTURE   i) Registered Dealer                                                                  -   Tax invoice ii) Composite Dealer/ Exclusive exempted supply dealer         -   Bill of Supply iii) Unregistered Dealer                                                               -   NA TAX INVOICE    When Issued      Supply of Goods & Services      Purchases of Goods & Services under Reverse Charge Rules If sale to Unregistered Dealer i) No need to issue tax invoice for Supply of Goods & Services up to Rs 200(in case ...

Now Income tax department is moving toward total computerization of its work. Presently , almost all notice and orders are being generated electronically on the Income Tax Business Application platform. It has been brought to the notice of CBDT that there have been some instance in which the notice, order, and any correspondence were found to have been issued manually, without maintaining a proper audit trail of such communication. In order to prevent such instance or maintain proper audit trail of all communication , the board has decided that no communication shall be issued by any income tax authority relating to assessment, appeals, orders, enquiry, investigation, penalty , any communication etc. to the assessee or any other person , on or after the 1st October 2019 unless a computer generated DIN has been allotted and is duly quoted in the body of such communication  There are some exception i)     When there are technical difficulties in generating th...

Section 269ST of Income Tax Act 1961 -   A  person can not accept  in aggregate cash of Rs 200,000 or more in a day in respect of single transaction or in respect of transaction relating to one Event or Occasion. In case of violation of section 269ST penalty will be levy under section 271DA to the recipient Penalty Amount is Rs 100 % of violation amount     Example –         a)    if a person doing following transactions in a single day               Transaction 1 – 50,000               Transaction 2 – 50,000               Transaction 3 – 50.000               Transaction 4 -  50,000               Transaction 5 – 50,000      Total cash in a day Rs 2,50,000 . it is more than Rs 200,000 hense penalty will be levy     ...

    Exporter can apply for provisional refund in the application form RFD 01 after receiving application by the officer .if  there is no any deficiency  then officer will issue Acknowledgement in RFD 02 within 15 days from the date of receiving application but if there is find any deficiency then officer will issue RFD 03 to rectify the deficiency.  Officer will issue 90 % of Total amount of refund Within 7 days from the date of Acknowledgement in RFD 02. Officer will issue 100% of amount of refund within 60 days from the date of application receipt after completing full assessment. If officer fails to issue 100% refund within time specified then refund will be issue with 6 % p.a. interest FORMULA FOR CALCULATION OF GST REFUND AMOUNT    Refund Amt. = (Turnover of Zero-Rated supply of Goods+ Turnover of Zero-Rated supply of                                 serv...

There are two terms of export which has been define under the GST Law. a) Export of good -   good which are to be taken out of India to a place outside India. b) Export of services – supply of services shall be treated as export if following conditions are satisfied. i)The supplier of service is located in India. ii)The recipient of service is located outside India. iii)The place of service is outside India. iv)The payment of such service has received in convertible foreign exchange v)The supplier of service and recipient of service are not merely establishment of a distinct person EXPORT IS ZERO – RATED SUPPLY            Zero- rated supply – means a supply of good and services on which no tax is payable but credit of the input related to that supply is admissible .ITC is available for set-off against tax payable on domestic transaction and in case of excess input , there is suitable mechanism for allowing refund of ITC. EXP...

CENTRAL GOVERNMENT EXEMPTS CLASS OF PERSONS FROM THE REQUIREMENT FILING ITR A) CLASS OF PERSONS i) A non resident, not being a company                         OR ii) A foreign company  Who have any income during previous year from  any investment in an “INVESTMENT FUND” set up in an International Financial Services Center (IFSC) located in India. B) CONDITIONS  I) If TDS of said class of persons are properly deducted by “Investment Fund “and remitted to the Central Government  as per the provision of section 194LBB                                                                             AND  II) There is no any other income during previous year of said class of person, is otherwise...