Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: list of goods taxed at 4% :: articles on VAT and GST in India :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: empanelment :: VAT RATES :: cpt :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd
« Service Tax »
 GST to enhance ease of doing business, says Assocham
 Govt sources say cess is a better option than high tax rate
 Goods and Services Tax: There should not be more than three grades of rates, says Chidambaram
 Chidambaram says there cannot be multiple tax slabs in GST
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C
 Determination of value for transactions between the Related parties under GST Laws.
 Higher collections can offset GST losses

Monthly returns to be mandatory under GST
September, 28th 2016

Businesses have to file at least three monthly returns and one annual return for each state, if draft rules proposed by the indirect tax department are introduced under the goods and services tax (GST) regime.

The Central Board of Excise and Customs (CBEC) on Tuesday came out with one more set of draft rules and their formats on GST returns and refunds, after it released one set on Monday. The indirect tax regime is expected to be rolled out from April 1, 2017.

Monthly returns are for output supply, input supply and summary accounts and would cover state GST, integrated GST (IGST) and central GST (CGST).

Currently, businesses have to file valued added tax returns but these are quarterly. Service tax returns must be filed but only twice in a year and not state-wise, explained Pratik Jain, leader-indirect tax, PwC India.

The GST returns has to contain details of profit, according to the profit and loss account, incorporating gross profit, net profit, etc, Jain said.

On why the profit and loss account was needed as it was not corporate income tax, Jain said the purpose was not clear from the rules issued by the CBEC. However, it seemed that the government wanted to reconcile the information given on these returns with the income-tax returns, he said.

Comments on the rules have been sought by Wednesday.

Also, the accounts have to be audited for those having an annual turnover of more than Rs 1 crore. "This will require a major overhaul of the accounting systems for large companies," Jain said.

"Overall, the rules on return, in particular, look quite comprehensive and it is clear that businesses would need to have a strong technology support for GST compliance. The key, of course, will lie in effective implementation of the rules by the government," he said.

On refunds, in case of supplies to special economic zones (SEZs), the recipient of goods and services has to file an application for refund, which makes it clear that upfront GST has to be incurred in such cases, unlike now where there is upfront exemption in most cases. This will lead to cashflow issues for SEZs and impact the information technology (IT) and IT-enabled services sector.

However, there is a stipulation of provisional refund within seven days of receipt of refund application. Such provisional refund, though, is only contemplated if the compliance rating of the supplier is at least five (out of a score of 10), a concept which is alien to taxpayers now.

As to how the score would be calculated, Jain said it was not clear from the draft rules.

The two set of draft rules will be finalised at the second meeting of the GST Council on September 30.

The draft rules, according to Rajat Mohan, director-indirect taxation, Nangia & Co, "have prescribed the form and manner of submission of quarterly returns by composition supplier, returns by non-resident taxable person, input service distributor, persons required to deduct tax at source and the form and manner of submitting statement of supplies effected through e-commerce."

Sandeep Chilana, partner, Shardul Amarchand Mangaldas & Co, said the government in its frequently asked questions had clarified that only interstate branch transfers would attract GST and that intrastate branch transfer would not have such tax incidence.

However, the draft registration rules issued by the CBEC on Monday said in case a company seeks separate registration for its business verticals in a state, intrastate branch transfer between such registered business verticals would also attract GST.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions