GST Registration

GST is an indirect tax levied on Goods and Services. GST is one tax for the whole nation and it’s a destination based tax. It’s a single tax for the goods or services from the manufacturer / Service providers to the customers. The tax paid on each stage will be claimed in the subsequent stage as input tax credit. The GST paid for the Goods or Services is available for set off on the GST to be paid on the supply of goods and services. The final consumer will bear the GST charged by the last dealer.

Income Tax

The Individuals and Companies are required to pay Income tax every year with in the due dates. The governments impose the tax on income generated by the individuals and companies as per the income tax Act for the particular financial year. The companies and Individuals must file income tax return every year and pay the tax because income tax is the source of revenue to the government and these revenues are used by the government for public services and pay government obligations. Solubilis helps individuals and companies to file their income tax returns via online portal.

Persons Liable for Registration:

  • Every supplier shall be liable to be registered if his aggregate turnover in a financial year exceeds the prescribed limits. Any person who is liable to be registered shall apply for GST registration in such state within 30 days from the date on which he becomes liable to register.

Persons Not Liable to Register:

  • Any person engaged in the business of supplying goods / services that are not liable to tax or it’s exempted from the tax under Goods and Services tax Act.
  • An Agriculturist

Documents required for GST Registration – Proprietorship Company

  • PAN Card Copy
  • Aadhaar Card Copy
  • Passport Size Photo
  • Rental agreement and EB Bill copy - If office is taken on Rent.

Persons Not Liable to Register:

  • Any person engaged in the business of supplying goods / services that are not liable to tax or it’s exempted from the tax under Goods and Services tax Act.
  • An Agriculturist

Documents required for GST Registration – Partnership / Private Limited / LLP / Society / Trust / AOP /

  • PAN Card Copy of the Partners / Directors
  • Aadhaar Card Copy Partners / Directors
  • Passport Size Photo Partners / Directors
  • Rental agreement and EB Bill copy - If office is taken on Rent.
  • Incorporation Certificate / Partnership Deed / LLP Agreement.
  • Society Registration Certificate / Trust Deed.

Benefits of GST:

  • Easy Compliance
  • Uniformity of Tax
  • Simple and easy to administer
  • Higher revenue efficiency
  • Transparant Tax system
  • Destination based tax system
  • Single tax to the whole nation.
  • Legal Recognition

Income Tax Slab:

Income Tax Slab Tax rate - Individuals
Up to `2,50,000 Nil
2,50,001 to 5,00,000 5%
5,00,001 to 10,00,000 12,500 + 20% of total income exceeding 5,00,000
Above 10,00,000 1,12,500 + 30% of total income exceeding 10,00,000

The Finance Act, 2020 has introduced new optional tax regime :

  • No Tax – Upto Rs 2.5 Lakhs
  • 5% Tax – Between 2.5 Lakhs to 5 Lakhs
  • 10 % Tax – Between 5 Lakhs to 7.5 Lakhs
  • 15 % Tax – Between 7.5 Lakhs to 10 Lakhs
  • 20 % Tax – Between 10 Lakhs to 12.5 Lakhs
  • 25 % Tax – Between 12.5 Lakhs to 15 Lakhs
  • 30% Tax – Above 15 Lakhs

The tax payer has an option to choose either of the above. Individuals can pay Lower tax as per the new regime or they continue to pay tax under the existing tax slab rate. The Individuals opting for the New Tax regime will have to forgo exemptions and deductions available in the old tax regime.

The below exemptions are Not Allowed:

  • Deduction under Chapter VI-A deduction (80C, 80D, 80E etc. ) (Except Section 80CCD(2))
  • Housing loan interest
  • Salary – Standard Deduction
  • Education allowance for children
  • House Rent Allowance
  • Leave Travel Allowance

It is advisable to choose the new tax regime if you have less investment

Three categories of “individual”

  • Individuals - less than of 60 years of Age
  • Resident Senior citizens - More Than 60 and Less than 80 years of age
  • Resident Super senior citizens - More than 80 years of Age

ITR Forms:

FORM ITR-1 – Sahaj forms can be filed by any person having income for Fy upto Rs. 50 lakh and who receives income from salary, one house property / other sources (interest etc.)

FORM ITR-2 - Individuals and HUFs not having income from business / Profession and not eligible to file sahaj

FORM ITR-3 – Any person having income from business / Profession

FORM ITR- 4 - Individuals, HUFs and firms other LLPs having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions

FORM ITR-5 – Partnership Firm, LLP can file this form.

FORM ITR-6 – Companies can file this form

FORM ITR-7 - Political parties, charitable institutions can file this form.

Due date for filing an Income tax Return:

  • For Individuals and Non Audit Case - 31st July of the assessment year.
  • For Audit Cases - 31st September of the assessment year

Income tax / Proprietorship:

Proprietorship Income tax return filing is similar process as an individual income tax filing. Proprietors under 60 years and the income exceeds the limit of RS.2, 50,000 is need to file Income tax. It is totally different slab from LLP and Companies.

Income tax-Limited liability Partnership/Partnership companies/private limited company

Limited Liability Partnership or partnership companies are considering as the same token of Partnership firms. For Limited Liability Partnership and partnership companies are paying 30% from total income as the rate of income tax. If the income exceed more than a crore sub-charge of 12% need to pay. Public limited company comes under the taxation amount of 25% from total income of earning.

Penalty on Income tax:

Ending of the financial year, all the financial reports need to submit. From the April 1st new financial year is commencing for further business progress. Government of India allotting 31st July the deadline for filing all company’s ITR report. Rs.5000 is levied per day as a Penalty for submitting ITR before December 31st. Suppose, if it extends after December 31st the penalty amount will be Rs.10, 000.

FAQ'S


Income Tax

For Individuals and Non Audit Case - 31st July of the assessment year. For Audit Cases - 31st September of the assessment year.

A return can be filed after the due dates. Penalty will be charged if the return is filed after the due dates.

Request letter to be submitted to the Assessing Officer after making the pending tax dues for the particular financial year.

You can show ITR as your proof of income.

You can claim the refund.

You can avail the loans

You can avail the Credit Cards.

ITR is mandatory for VISA

You can carry forward your losses.

You can check the refund status in the below link - https://tin.tin.nsdl.com/oltas/refund-status-pan.html

Tax Deduction and Collection Account Number is a unique number required to be registered by all persons who are responsible to deduct or collect the tax.

Section 44AB of the income tax act deals with Tax Audit. Tax audit is required for those who get their accounts audited from a chartered accountant. The CA conduct the tax audit and will give his findings, observation, etc., in Form Nos. 3CA/3CB and 3CD.

Advance tax means making the tax in advance instead of lump sum payment at end of the financial year.

Advance Tax instalment are below, (To be calculated based on the Expected liability)

  •  15 % on the Expected liability – On or before 15th June
  • 45 % on the Expected liability – On or before 15th September
  • 75 % on the Expected liability – On or before 15th December
  • 100 % on the Expected liability – On or before 15th March

No. Agriculture income is not taxable.

Yes. You have to maintain the proofs for your every sources of income.

GST

It is a destination based tax on goods and services. It is levied at all stages starting from manufacture up to end consumer with credit of taxes paid at earlier stage available as Input credit.

The central GST and State GST is levied simultaneously on each transaction of Supply of goods and supply of services except for exempted good and services and entities below the prescribed threshold limit. Example if rate of GST is 18% - SGST is 9% CGST is 9%.

The GST on supply of Goods and Services in the case of inter- State trade shall be imposed and collected by Central Government that is IGST. Example if rate of GST is 18% for the goods in trade – IGST – 18%.

Companies involved in supply of goods with annual turnover of more than Rs.40 and Rs 20 lakhs in case of services are required to register GST mandatorily. In addition to the turnover, if there is Interstate sale of goods its mandatory to register GST irrespective of the turnover

No, Person registered under composition scheme is not eligible to claim input tax credit.

No, customer who buys goods from registered person who is under composition scheme is not eligible for composition input tax credit because composition scheme supplier cannot issue a tax invoice.

Imports of Goods and Services will be considered as inter-state supply IGST will be levied on import of goods and services. Complete set-off will be available on the GST paid on import on goods and services.

Exports have treated as zero rated. No tax will be payable on exports of goods or services, But input tax credit will be available and the exporter can get refund. The Exporters are insist as an option to either pay tax on the output and claim refund of IGST or export under Bond without payment of IGST and claim refund of Input Tax Credit.

It means the liability to pay tax is on the recipient of goods and services instead of the supplier of goods or services in respect of specific categories of supply.

In case of receipt of supply from an unregistered entity, the registered person who is receiving goods or services shall be liable to pay tax under reverse charge mechanism.

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