16 January, 2017
12 January, 2017
Now, we have given the deadline to March 31, 2017 (from earlier December 31, 2016)", Ministry of Labour and Employment, Secretary, M Sathiyavathy told PTI here
The Ministry of Labour and Employment has extended the deadline by three months for companies and other commercial establishments to get registered with the Employees Provident Fund Organisation. "We are asking those companies or commercial establishments to come forward and get registered (with EPFO). Now, we have given the deadline to March 31, 2017 (from earlier December 31, 2016)", Ministry of Labour and Employment, Secretary, M Sathiyavathy told PTI here.
"The companies may be operating for three years or five years or even more than that (without registration). We are asking them to come forward and get registered or else they may be prosecuted (for not registering)", she said.
The move by the Ministry comes in the backdrop of its top priorities which include job security, wage security and social security to the employees. "This government headed by Prime Minister Narendra Modi is pro-poor. Our primary responsibility and top priority is to give job security, wage security and social security to employees.
10 January, 2017
Realty portal PropTiger acquires Housing.com in all-stock deal
PropTiger and Housing.com come together to become India’s largest digital real estate company, procuring the largest investment in recent times
PropTiger.com and Housing.com, two of India’s leading online real estate service providers, today announced that they will come together to become India’s largest online real estate services company, procuring an investment of US$55 million in the joint entity
PropTiger.com and Housing.com, two of India’s leading online real estate service providers, today announced they will come together to become India’s largest online real estate services company. As part of the transaction, REA Group Limited (ASX: REA) will invest US$50 million in the joint entity, with an affiliate of SoftBank Group Corp investing US$5 million.
News Corp remains the largest shareholder of PropTiger, and also owns 61.6% of the REA Group. Representatives of REA and SoftBank will join the board of the joint entity, which will continue to be chaired by a News Corp representative.
Henry Ruiz, Chief Digital Officer, REA Group; Simon Barnett, Sales Director, News Corp, and Jonathan Bullock, MD, SoftBank Group International, will join Raju Narisetti (chair), Ravi Adusumalli from SAIF Partners and Prashanth Prakash from Accel Partners, as investor directors on the board of the joint entity.
Dhruv Agarwala, co-founder and CEO of PropTiger, will serve as CEO of the joint entity. Jason Kothari, CEO of Housing.com, who has skillfully steered the company and strengthened the brand among Indian internet users, has decided to move on to pursue other opportunities in the Indian Internet space. He will continue to be an advisor to the joint entity, through the end of February, 2017.
The joint entity will draw on the strengths of PropTiger, Housing.com and Makaan.com to offer a unique holistic experience to consumers, real estate developments, brokers and home owners. PropTiger is the largest online residential real estate brokerage firm, having completed transactions worth $1.5 billion since its founding in 2011, while Housing.com is India’s most popular online platform for buying and selling homes, receiving over 4 million visits every month.
The joint entity will be the only player in India offering the full range of online and offline services in the real estate space, such as personalised search, virtual viewing, site visits, legal and financial diligence, negotiations, property registration, home loans and post- sales service.
By 2030, India is expected to be the 3rd largest real estate market in the world, with the sector contributing to over 15% of the national GDP. The joint PropTiger-Housing.com entity, is exceptionally well-positioned to win the digital real estate market in India with its unique capabilities and a strong set of institutional investors, which also include SAIF Partners, Accel Partners and Nexus Venture Partners.
Commenting on the investment, REA Group CEO, Tracy Fellows, said “India is an important part of our international growth strategy. We believe in the potential of the Indian real estate market. REA invests in companies that are leaders in their markets. The joint entity will have access to REA Group’s expertise and know-how from its operations across the globe.”
News Corp Chief Executive, Robert Thomson, welcomed the development saying, “Our investments in PropTiger, REA Group and Move, Inc. are testimony to our faith in the potential of the global digital real estate market, of which we are now the largest player. With 1.2 billion people and a rapidly growing economy and middle-class, India’s future as a real estate powerhouse is exceptionally bright, and we are proud to be a part of this expanding sector. Clearly there is a compelling commercial purpose to the deal, but we also firmly believe in providing transparency, analysis and insight so that all Indian families, regardless of traditional background or means, will have a better understanding of the property market.”
SoftBank Group International MD, Jonathan Bullock said, “Housing.com is very well-established as an online real estate platform brand and we have been working with the management team to create strong execution capabilities, to offer full stack services under one umbrella. PropTiger has already created a great transaction engine. We have full confidence in the management team and will continue to support them. We would particularly like to thank Jason for his leadership and wish him well for his future endeavor.”
The union will immediately strengthen PropTiger’s full stack Online-to-Offline (O2O) services proposition. In April, 2015, PropTiger acquired online classifieds platform Makaan.com to launch India’s first O2O platform, aiding consumers through their home buying journey – from the initial search and discovery, to the final step of transaction closure.
Speaking on the partnership, Dhruv Agarwala, co-founder and CEO of PropTiger, said “We are excited to join hands with Housing.com. The deal is a continuation of our efforts to bring the best-in-class services to consumers and create a unified technology driven platform that is capable of serving all needs of consumers, developers and brokers, with respect to buying, selling and renting of homes. Housing.com has established itself as a formidable online brand and we admire its consumer-centric product innovation. The timing of this deal is just right.”
Jason Kothari, CEO of Housing.com, added, “I am proud of the exceptional progress the Housing team and investors have achieved together in the past 18 months. Housing.com’s partnership with PropTiger, is the next transformational step to realise our vision of becoming a full-service online-to-offline real estate services company. Housing.com and PropTiger share similar values – to provide trust, transparency and simplicity to the home buying journey. The joint entity will be well-positioned to establish market leadership in a large and rapidly changing marketplace. As I move on to my next opportunity, I am glad to leave behind a strong foundation.”
Another major highlight of the deal is the strategic investment by REA Group in the combined entity. REA is the leading digital real estate company in Australia and in February 2016, acquired control of Southeast Asia’s digital real estate company iProperty, which leads the industry in Malaysia and has a significant presence in Hong Kong, Indonesia and Thailand. REA also owns a significant stake in Move, Inc., which was acquired by News Corp in November, 2014. Move operates realtor.com, which has since become the second largest digital real estate company in the US.
The new investment in the PropTiger-Housing.com combination is another step in REA Group’s strategy, along with News Corp, to become market leaders in Asia
The goods and services tax (GST) network has extended the date of enrolment for taxpayers under GST till the end of this month. Barring a few states, dealer enrolment rate has been less than 50% in most states, shows data collated by GSTN.
Taxpayers located across different states can log into the website—www.gst.gov.in—to update their information and other relevant documents as a first step towards obtaining a registration number under GST.
CA Ankit Gulgulia (Jain) | 9811653975
07 January, 2017
India and Singapore Sign a Third Protocol for Amending the Double Taxation Avoidance Agreement (DTAA) India and Singapore have amended the DTAA for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, by signing a Third Protocol on 30th December, 2016.
This is in line with India’s treaty policy to prevent double non-taxation, curb revenue loss and check the menace of black money through automatic exchange of information, as reflected in India’s recently revised treaties with Mauritius and Cyprus and the joint declaration signed with Switzerland. The Protocol for amendment of the India-Mauritius Convention signed on 10th May, 2016, provides for source-based taxation of capital gains arising from alienation of shares acquired from 1st April, 2017 in a company resident in India.
Simultaneously, investments made before 1st April, 2017 have been grandfathered and will not be subject to capital gains taxation in India. Where such capital gains arise during the transition period from 1st April, 2017 to 31st March, 2019, the tax rate will be limited to 50% of the domestic tax rate of India. However, the benefit of 50% reduction in tax rate during the transition period shall be subject to the Limitation of Benefits Article. Taxation in India at full domestic tax rate will take place from financial year 2019-20 onwards.
The revised DTAA between India and Cyprus signed on 18th November, 2016, provides for source based taxation of capital gains arising from alienation of shares, instead of residence based taxation provided under the DTAA signed in 1994.
However, a grandfathering clause has been provided for investments made prior to 1st April, 2017, in respect of which capital gains would continue to be taxed in the country of which taxpayer is a resident. It also provides for assistance between the two countries for collection of taxes and updates the provisions related to Exchange of Information to accepted international standards. Fighting the menace of Black Money stashed in offshore accounts has been a key priority area for the Government. To further this goal, the ‘Joint Declaration’ for the implementation of Automatic Exchange of Information (AEOI) between India and Switzerland was signed in November, 2016. It will now be possible for India to receive from September, 2019 onwards, the financial information of accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.
The India-Singapore DTAA at present provides for residence based taxation of capital gains of shares in a company. The Third Protocol amends the DTAA with effect from 1st April, 2017 to provide for source based taxation of capital gains arising on transfer of shares in a company. This will curb revenue loss, prevent double non-taxation and streamline the flow of investments. In order to provide certainty to investors, investments in shares made before 1st April, 2017 have been grandfathered subject to fulfillment of conditions in Limitation of Benefits clause as per 2005 Protocol. Further, a two year transition period from 1st April, 2017 to 31st March, 2019 has been provided during which capital gains on shares will be taxed in source country at half of normal tax rate, subject to fulfillment of conditions in Limitation of Benefits clause.
The Third Protocol also inserts provisions to facilitate relieving of economic double taxation in transfer pricing cases. This is a taxpayer friendly measure and is in line with India’s commitments under Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement Procedure (MAP) access in transfer pricing cases. The Third Protocol also enables application of domestic law and measures concerning prevention of tax avoidance or tax evasion.
(Meenakshi J. Goswami) Commissioner of Income Tax (Media and Technical Policy) Official Spokesperson, CBDT.
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 30th December, 2016. Press Release
India's per capita income likely to be about 82,000/- in current fiscal
AS per the latest CSO report, India's per capita income in real terms (at 2011-12 prices) during 2016-17 is likely to attain a level of Rs. 81805 as compared to Rs. 77,435 for the year 2015-16. The growth rate in per capita income is estimated at 5.6 per cent during 2016-17, as against 6.2 per cent in the previous year.
The nominal Net National Income (NNI), also known as national income (at current prices) is likely to be Rs. 133.81 lakh crore during 2016-17, as against Rs. 119.69 lakh crore for the year 2015-16. In terms of growth rates, the national income registered a growth rate of 11.8 per cent in 2016-17 as against the previous year's growth rate of 8.7 per cent.
Private Final Consumption Expenditure
Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs. 89.72 lakh crore in 2016-17 as against Rs. 80.78 lakh crore in 2015-16. At constant (2011-12) prices, the PFCE is estimated at Rs. 67.13 lakh crore in 2016-17 as against Rs. 63.01 lakh crore in 2015-16. In terms of GDP, the rates of PFCE at current and constant (2011-12) prices during 2016-17 are estimated at 59.1 per cent and 55.2 per cent, respectively, as against the corresponding rates of 59.5 per cent and 55.5 per cent, respectively in 2015-16.
Government Final Consumption Expenditure
Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs. 18.61 lakh crore in 2016-17 as against Rs. 14.39 lakh crore in 2015-16. At constant (2011-12) prices, the GFCE is estimated at Rs. 13.95 lakh crore in 2016-17as against Rs. 11.27 lakh crore in 2015-16. In terms of GDP, the rates of GFCE at current and constant (2011-12) prices during 2016-17 are estimated at 12.3 per cent and 11.5 per cent, respectively, as against the corresponding rates of 10.6 per cent and 9.9 per cent, respectively in 2015-16.
Who needs to file Return in GST regime?
1.7 Every registered person is required to file a return for the prescribed tax period. A return needs to be filed even if there is no business activity (i.e. Nil Return) during the said tax period of return.
1.8 UN agencies etc. will have unique GST ID and will file return for the month (in simpler form) during which they make purchases. They would not be required to file regular return. They would submit their purchase statements (without purchase invoices) as per the periodicity prescribed for claim of refund. 6
1.9 Government entities / PSUs , etc. not dealing in GST supplies or persons exclusively dealing in exempted / Nil rated / non –GST goods or services would neither be required to obtain registration nor required to file returns under the GST law. However, State tax authorities may assign Departmental ID to such government departments/ PSUs / other persons. They will ask the suppliers to quote the Department ID in the supply invoices for all inter-State purchases being made to them. Such supplies will be at par with B2C supplies and will be governed by relevant provisions relating to B2C supplies.
2.1 Common periodicity of returns for a class of taxpayers would be enforced.
There will be different frequency for filing of returns for different class of taxpayers, after payment of due tax, either prior to or at the time of filing return. The return can be filed without payment of self-assessed tax as per the return but such return would be treated as an invalid return and would not be taken into consideration for matching of invoices and for inter-governmental fund settlement among States and the Centre. The periodicity of return for different categories of taxpayers is as follows:
Return / Ledger
To be filed by
|Outward supplies made by taxpayer (other than compounding taxpayer and ISD)||10th of the next month|
|Inward supplies received by a taxpayer (other than a compounding taxpayer and ISD)||15thof the next month|
|Monthly return (other than compounding taxpayer and ISD)||20thof the next month|
|Quarterly return for compounding Taxpayer||18thof the month next to quarter|
|Periodic return by Non-Resident Foreign Taxpayer||Last day of registration|
|Return for Input Service Distributor (ISD)||15th of the next month|
|Return for Tax Deducted at Source||10th of the next month|
|Annual Return||By 31st December of next FY|
ITC Ledger of taxpayer
Cash Ledger of taxpayer
Tax ledger of taxpayer
3. Monthly Return: There would be separate returns for the outward supplies, inward supplies and a consolidated return based on these two returns. Besides that, there would be separate returns for the Input Service Distributors, non-resident taxpayers (foreigners) and Tax Deductors. The components of each of these return is being discussed hereunder:
3.1. Components of valid GST Return for Outward Supplies made by the Taxpayer (GSTR-1):
3.1.1 This return form would capture the following information:
1. Basic details of the Taxpayer i.e. Name along with GSTIN
2. Period to which the Return pertains
3. Gross Turnover of the Taxpayer in the previous Financial Year. This information would be submitted by the taxpayers only in the first year and will be auto-populated in subsequent years.
4. Final invoice-level supply information pertaining to the tax period separately for goods and services:
(i) For all B2B supplies (whether inter-state or intra-state), invoice level specified details will be uploaded.
(ii) For all inter-state B2C supplies (including to non-registered Government entities, Consumer / person dealing in exempted / NIL rated / non GST goods or services), the suppliers will upload invoice level details in respect of every invoice whose value is more than ₹ 2,50,000/-. For invoices below this value, State-wise summary of supply statement will be filed covering those invoices where there is address on record. The address of the buyer has to be mandatorily reflected in every invoice having a value of ₹ 50,000/- or more. (Model GST Law may provide for such a provision). Invoices for a value less than ₹ 50,000/- that do not have address on record will be treated as intra-state supply. In other words, State-wise summary of inter-State supply would be filed covering (a) those invoices value of which is less than ₹ 50000/- and where address is on record and (b) those invoices whose value is between ₹ 50000/- to ₹ 250000/-.
(iii) The recommendation of the Committee on IGST and GST on Imports with respect to the details about HSN code for goods and Accounting code for services to be captured in an invoice have been accepted with certain modifications. The details proposed by this Committee are as follows:-
a) HSN code (4-digit) for Goods and Accounting Codes for Services will be mandatory initially for all taxpayers with turnover in the preceding financial year above ₹ 5 Crore (For the first year of operations of GST, self-declaration of turnover of previous financial year will be taken as the basis as all India turnover data will not be available in the first year. From the 2nd year onwards, turnover of previous financial year under GST will be used for satisfying this condition).
b) For taxpayers with turnover between ₹ 1.5 Crores and ₹ 5 Crores in the preceding financial year, HSN codes may be specified only at 2-digit chapter level as an optional exercise to start with. From second year of GST operations, mentioning 2-digit chapter level HSN Code will be mandatory for all taxpayers with turnover in previous financial year between ₹ 1.5 Crores and ₹ 5.0 Crores.
c) Any taxpayer, irrespective of his turnover, may use HSN code at 6- digit or 8-digit level if he so desires.
d) To start with, compounding dealers may not be required to specify HSN at 2-digit level also.
e) Prescribed Accounting code will be mandatory for those services for which Place of Supply Rules are dependent on nature of services to apply the destination principle, irrespective of turnover.
f) HSN Codes at 8-digit level and Accounting Codes for services will be mandatory in case of exports and imports.
(iv) The above parameters with respect to HSN code for goods and Accounting Code for services will apply for submitting the information in return relating to relevant invoice level information for B2B supplies (both intra-state and inter-state) and inter-state B2C supplies (where taxable value per invoice is more than ₹ 2.5 lakhs). It is proposed that in the return form the description of goods and services may not be required to be submitted by the taxpayer as the same will be identified through the submission of HSN code for goods and Accounting Code for services. In order to differentiate between the HSN code and the Service Accounting Code (SAC), the latter will be prefixed with “s”. The taxpayers who have turnover below the limit of ₹ 1.5 Crore will have to mention the description of goods/service, as the case may be, wherever applicable.
(v) For all Intra-State B2C supplies (including to non-registered Government entities, consumer / person dealing in exempted / NIL rated / non GST goods or services), consolidated sales (supply) details will be uploaded. However a dealer may at his option furnish invoice wise information in respect of exempted and nil rated supplies also.
(vi) The supply information will also have details relating to the Place of Supply in order to identify the destination state as per the Place of Supply Rules where it is different from the location of the recipient.
(vii) Details relating to supplies attracting Reverse charge will also be submitted
5. Details relating to advance received against a supply to be made in future will be submitted in accordance with the Point of Taxation Rules as framed in the GST law.
6. Details relating to taxes already paid on advance receipts for which invoices are issued in the current tax period will be submitted.
7. Details relating to supplies exported (including deemed exports) both on payment of IGST as well as without payment of IGST would be submitted.
8. There will be a separate table for submitting the details of revisions in relation to the outward supply invoices pertaining to previous tax periods. This will include the details of Credit/Debit Note issued by the suppliers and the differential value impact and the concomitant tax payable or refund/tax credit sought.
9. There will be a separate table for effecting modifications/correcting errors in the returns submitted earlier. The time period for correcting these errors will be provided in the GST Law.
10. There will be a separate table for submitting details in relation to NIL rated, Exempted and Non GST outward supplies to ( both inter-state and intra-state) to registered taxpayers and consumers.
3.1.2 The return (GSTR-1) would be filed by the 10th of the succeeding month. Late filing would be permitted on payment of late fees only.
3.2. Components of valid GST Return for Inward Supplies received by the Taxpayer (GSTR-2):
3.2.1 This return form would capture the following information:
1. Basic details of the Taxpayer i.e. Name along with GSTIN
2. Period to which the Return pertains
3. Final invoice-level inward supply information pertaining to the tax period for goods and services separately
4. The information submitted in GSTR-1 by the Counterparty Supplier of the taxpayer will be auto populated in the concerned tables of GSTR-2. The same may be modified i.e. added or deleted by the Taxpayer while filing the GSTR-2. The recipient would be permitted to add invoices (not uploaded by the counterparty supplier) if he is in possession of invoices and have received the goods or services.
5. There will be separate tables for submitting details relating to import of Goods/Capital Goods from outside India and for the services received from outside India.
6. The details of inward supplies would be auto-populated in the ITC ledger of the taxpayer on submission of his return. The taxpayer will select the invoice details regarding the in-eligibility and eligibility of ITC in relation to these inward supplies and the quantum available in a particular tax period.
7. There will be a separate table for submitting details in relation to ITC received on an invoice on which partial credit has been availed earlier.
8. In respect of capital goods, there will be a field to capture appropriate information regarding availment of ITC over a period (to be prescribed in GST Law in terms of duration and number of installments) from the date of accountal of capital goods in the taxpayer’s books of accounts. [GST Law may provide that Input credit pertaining to Capital Goods will be allowed to be availed over a period of 2 years in two equal
9. In respect of inputs, there can be two situations. If inputs are received in one lot, the ITC will be given in the return period in which the purchase is recorded in the books of accounts. In case inputs covered under one invoice are received in more than one instance/lot, the ITC will be given in the return period in which the last purchase is recorded in the books of accounts. (GST Law to contain appropriate provision in this regard). A note in this regard has been incorporated in the Return form for the guidance of the taxpayer.
10. There will be a separate table for submitting the details of revisions in relation to inward supply invoices pertaining to previous tax periods (including post purchase discounts received). This will include the details of Credit/Debit Note issued by the suppliers and the differential value impact and concomitant tax payable or refund/tax credit sought.
11. There will be a separate table for effecting modifications/correcting errors in the returns submitted earlier. The time period for correcting these errors will be provided in the GST Law.
12. There will be a separate table for submitting details in relation to NIL rated, Exempted and Non GST inward Supplies ( Both Inter-State and Intra-State) including those received from compounding taxpayers and unregistered dealers.
13. There will be a separate table for the ISD credit received by the taxpayer.
14. There would be a separate table for TDS Credit received by the taxpayer.
3.2.2 Auto Population in this return from GSTR-1 will be done on or after 11th of the succeeding month. Addition or Deletion of the invoice by the taxpayer will be permitted between 12th and 15th of the succeeding month. Adjustments would be permitted on 16th and 17th of the succeeding month.
3.2.3 The return (GSTR-2) would be filed by 17th of the succeeding month. Late filing would be permitted on payment of late fees only.
3.3. Components of valid GST Return (GSTR-3):
3.3.1 The GST Monthly Return form would capture the following information:
1. Basic details of the Taxpayer i.e. Name and Address along with GSTIN
2. Period to which the Return pertains
3. Turnover Details including Gross Turnover, Export Turnover, Exempted Domestic Turnover, Nil Rated Domestic Turnover, Non GST Turnover and Net Taxable Turnover
4. Final aggregate level outward and inward supply information. These details will be auto populated from GSTR-1 and GSTR-2.
5. There will be separate tables for calculating tax amounts on outward and inward supplies based on the information contained in various tables in the GSTR-3 return.
6. There will be a separate table for capturing the TDS credit received and which has been credited to his cash ledger (the deductee).
7. Tax liability under CGST, SGST, IGST and Additional Tax.
8. Details regarding revision of invoices relating to outward and inward supplies (as per details in para 3.1.1 and 3.2.2 above)
9. Details of other liabilities (i.e. Interest, Penalty, Fee, others etc.).
10. Information about ITC ledger, Cash ledger and Liability ledger (these are running electronic ledgers maintained on the dashboard of taxpayer by GSTN). These would be updated in real time on an activity in connection with these ledgers by the taxpayer. Both the ITC ledger and the cash ledger will be utilized by the taxpayer for discharging the tax liabilities of the returns and others. Details in these ledgers will get auto populated from previous tax period return (irrespective of mode of filing return i.e. online / offline utility)
11. Details of ITC utilized against tax liability of CGST, SGST and IGST on supplies of goods and services.
12. Net tax payable under CGST, SGST, IGST and Additional Tax.
13. Details of the payment of tax under various tax heads of CGST, SGST, IGST and Additional Tax separately would be populated from the debit entry in Credit/Cash ledger. GST Law may have provision for maintaining four head wise account for CGST, SGST, IGST and Additional tax and at associated minor heads for interest, penalty, fee and others. Excess payment, if any, will be carried forward to the next return period. The taxpayer will have the option of claiming refund of excess payment through the return for which appropriate field will be provided in the return form. The return form would display all bank account numbers mentioned in the registration, out of which one will be selected by the taxpayer to which the refund will be credited.
14. Details of other payments - Interest/Penalties/Fee/Others, etc. This will be auto populated from the Debit entry in Cash ledger irrespective of mode of filing i.e. online / offline utility.
15. Details of ITC balance (CGST, SGST and IGST) at the end of the tax period will be auto-populated in the ITC ledger irrespective of mode of filing return. In case of net exporter or taxpayers dealing with inverted duty structure or similar other cases, where input tax credit is greater than output tax due on supply, the taxpayer would be eligible for refund. The return would have a field to enable the tax payer to claim the refund or to carry forward the ITC balance (CGST, SGST and IGST). The return form should display all bank account numbers mentioned in the registration, out of which one will be selected by the taxpayer to which the refund will be credited. To begin with GST law may provide that the refund will be processed quarterly.
16. Details of cash balance (CGST, SGST, IGST and Additional tax) in personal ledger at the end of the tax period (this will be auto populated irrespective of mode of filing return).
17. Information regarding quantity of goods (as per Unique Quantity Code) supplied will not be contained in the monthly return. However, the same would be submitted by the taxpayer in the annual return. (GST Law may contain appropriate provision in this regard). The format of the annual return would have a suitable field for this purpose.
3.3.2 The return (GSTR-3) would be entirely auto- populated through GSTR-1 (of counterparty suppliers), own GSTR-2, ISD return (GSTR-6) (of Input Service Distributor), TDS return (GSTR-7) (of counterparty deductor), own ITC Ledger, own cash ledger, own Tax Liability ledger. However, the taxpayer may fill the missing details to begin with.
3.3.3 The return would be permitted to be filed both on online and offline mode. In case of offline mode, payment by debit to cash / ITC ledger can be done at an earlier date also and such debit entry number would be verified at the time of uploading of the return. In online mode, both debiting and filing can be done simultaneously.
3.3.4 The return would be filed by 20th of the succeeding month. Late filing would be permitted on payment of late fees only.
3.4 Quarterly Return for compounding Taxpayers (GSTR-4):
3.4.1 After crossing the threshold exemption limit, the taxpayers may opt for compounding scheme wherein they would be required to pay taxes at fixed rate without any ITC facilities. Such taxpayers would be required to file a simplified quarterly return (GSTR-4) as per the format prescribed. In this return the taxpayer is only required to indicate the total value of supply made during the period of return and the tax paid at the compounding rate along with the details of payment of tax in the return. The compounding taxpayer will also need to declare invoice-level purchase information (auto-drafted from supply invoice information uploaded by counter-party taxpayers) for the purchases from normal taxpayers. The Compounding taxpayer will also be required to submit details of the goods and services imported from outside India. The Compounding taxpayers would be allowed to export supplies outside India. GST Law may provide for suitable provisions with respect to the eligibility of such taxpayers to purchase only tax paid supplies and that they can make purchases from unregistered suppliers on payment of GST on reverse charge basis.
3.5 Non-Resident Foreign Taxpayers (GSTR-5):
3.5.1 Non-Resident foreign taxpayers would be required to file GSTR-5 for the period for which they have obtained registration within a period of seven days after the date of expiry of registration. In case registration period is for more than one month, monthly return(s) would be filed and thereafter return for remaining period would be filed within a period of seven days as stated earlier.
3.6 Components of a valid ISD Return (GSTR-6):
3.6.1 This return form would capture the following information:
1. Basic details of the Taxpayer i.e. Name along with GSTIN
2. Period to which the Return pertains
3. Final invoice-level inward supply information pertaining to the tax period separately for goods and services on which the ITC is being claimed. This will be auto populated on the basis of GSTR-1 filed by the Counterparty Supplier of the taxpayer. The same may be modified i.e. added or deleted by the Taxpayer while filing the ISD return. The recipient would be permitted to add invoices (not uploaded by the counterparty supplier) if he is in possession of invoices and have received the services.
4. Details of the Invoices along with the GSTIN of the receiver of the credit i.e. to whom the ISD is distributing credit.
5. There will be separate ISD Ledger in the return that will detail the Opening Balance of ITC (to be auto- populated on the basis of previous return), credit for ITC services received, debit for ITC reversal and ITC distributed and Closing Balance.
3..6.2 This return would be filed by 15th of the succeeding month. Late filing would be permitted on payment of late fees only.
3.7 Components of a valid TDS Return (GSTR-7):
3.7.1 This return would capture the following information:
1. Basic details of the Taxpayer i.e. Name along with GSTIN
2. Period to which the Return pertains
3. Details of GSTIN of the Supplier along with the invoices against which the Tax has been deducted. This will also contain the details of tax deducted against each major head i.e. CGST, SGST and IGST.
4. Details of other payments - Interest/Penalties/Fee/Others, etc. (This will be auto populated from the Debit entry in Cash ledger)
3.7.2 This return would be filed by 10th of the succeeding month. Late filing would be permitted on payment of late fees only.
3.8 Steps for Return Filing:
Step1: The taxpayer will upload the final GSTR-1 return form either directly through data entry at the GST Common Portal or by uploading the file containing the said GSTR-1 return form through Apps by10thday of month succeeding the month during which supplies has been made. The increase / decrease (in supply invoices) would be allowed, only on the basis of the details uploaded by the counter-party purchaser in GSTR-2, upto 17th day of the month. (i.e. within a period of 7 days). In other words, the supplier would not be allowed to include any missing invoices on his own after 10th day of the month.
GSTN will facilitate periodic (may be daily, weekly etc.) upload of such information to minimize last minute load on the system. GSTN will facilitate offline preparation of GSTR-1.
Step2: GST Common Portal (GSTN) will auto-draft the provisional GSTR-2 of taxpayer based on the supply invoice details reported by the counter-party taxpayer (supplier) on a near real-time basis.
Step 3: Purchasing taxpayer will accept / reject/ modify such auto-drafted provisional GSTR-2. (A taxpayer will have the option to download his provisional purchase statement from the Portal or through Apps using Application Programming Interface (APIs) and update / modify it off-line).
Step 4: Purchasing taxpayer will also be able to add additional purchase invoice details in his GSTR-2 which have not been uploaded by counter-party taxpayer (supplier) as described in Step 1 and 2 above, provided he is in possession of valid invoice issued by counter-party taxpayer and he has actually received such supplies.
Step 5:Taxpayers will have the option to do reconciliation of inward supplies with counter-party taxpayers (suppliers) during the next 7 days by following up with their counter-party taxpayers for any missing supply invoices in the GSTR-1 of the counter-party taxpayers, and prompt them to accept the same as uploaded by the purchasing taxpayer. All the invoices would be auto-populated in the ITC ledger of taxpayer. The taxpayer would, however, indicate the eligibility / partial eligibility for ITC in those cases where either he is not entitled or he is entitled for partial ITC.
Step 6: Taxpayers will finalize their GSTR-1and GSTR-2 by using online facility at Common Portal or using GSTN compliant off-line facility in their accounting applications, determine the liability on their supplies, determine the amount of eligible ITC on their purchases and then generate the net tax liability from the system for each type of tax. Cash details as per personal ledger/ carried forward from previous tax period, ITC carried forward from previous tax period, ITC reversal and associated Interest/Penalty, taxes paid during the current tax period etc. would get auto-populated in the GSTR-3.
Step 7: Taxpayers will pay the amount as shown in the draft GSTR-3 return generated automatically at the Portal post finalization of activities mentioned in Step 6 above.
Step 8: Taxpayer will debit the ITC ledger and cash ledger and mention the debit entry No. in the GSTR-3 return and would submit the same.
3.9.1 On submission of return, an Acknowledgement Number will be generated. In case of submission of a return which has been prepared by using offline tools, acknowledgement of submission will take some time as GSTN System will need to first verify details like the carry forward cash as per personal ledger, ITC, tax payment details etc. In such cases, initially a Transaction ID confirming receipt of data will be conveyed to the taxpayer, (as also envisaged in case of filing of short paid / non –paid return). Final acknowledgement of receipt of return will be generated after validation of data is completed, which will also lock-in the Transaction ID.
3.9.2 The acknowledgement of e-return would contain the following details:
(i) Return acknowledgement number (unique number generated by the GSTN), Date and Time
(ii) Transaction ID No., Date and Time
(iii) GSTIN of taxpayer
(iv) Relevant tax period details
(v) Gross Supplies, Taxable Supplies and Tax paid / refund claimed(CGST, SGST, IGST and Additional tax separately) during the Return period
3.10 Contents of Invoice level information:
3.10.1. The following invoice level information would be captured in the return:
1. Invoices pertaining to B2B transactions (Intra-State, Inter-State and supplies to UN organizations/embassies) [both for supply and purchase transactions]:
(i) Goods and Services Tax Identification Number (GSTIN)/Unique ID issued to UN organizations/Embassies
(ii) Invoice Number, Date and value
(iii) HSN code for each item line (for Goods)/ Accounting code for each item line (for services)
(iv) Taxable Value
(v) Tax Rate (CGST & SGST or IGST and/ or Additional Tax)
(vi) Tax Amounts (CGST & SGST or IGST and / or Additional Tax)
(vii) Place of Supply (State)
(viii) For Capital Goods, there will be separate column in the Table of the return for ease of tracking of credit due and availed over the period as prescribed by GST law
(ix) An Invoice may have two items having different tax rates or different HSN codes in case of B2B supplies. If the invoice contains more than one tax rate/one HSN Code, the taxpayer would have to submit line-wise information separately for each HSN Code / each tax rate
2. Invoices pertaining to B2C transactions (Inter-State B2C supplies for consumer on record)[only supply transactions]:
A. In respect of invoices whose taxable value is more than ₹ 2.5 lakhs (to enable transfer of funds to respective states):
(i) Invoice Number, Date and value
(ii) HSN Code for goods / Accounting code for services
(iii) Taxable Value
(iv) Tax Rate (IGST and Additional Tax)
(v) Tax Amount (IGST and Additional Tax)
(vi) Buyer’s address (State Code)
(vii) Departmental ID allotted by State Government to Government entities / PSUs , etc. not dealing in GST supplies or to persons dealing in exempted / Nil rated / non –GST goods or services
(viii) Place of Supply (State) if different than S. No. (vi) above
B. For invoices whose taxable value is upto ₹ 2.5 lakhs, only aggregated taxable value of all such invoices will be submitted, state-wise and tax rate-wise.
(GST Law may provide for mandatory mention of address of the buyer in every invoice whose taxable value is more than ₹ 50000/-)
3. Invoices pertaining to B2C transactions (Intra-State B2C supplies) [only supply transactions]:
For intra-state B2C supplies, aggregated taxable value of all such invoices will be submitted tax rate-wise.
4. Invoice pertaining to Export and deemed export supply [only supply transactions]:
(i) Invoice Number, Date and value
(ii) 8-digit HSN Code for goods/ Accounting Code of Services for each line item ( as HSN Code / Accounting code is mandatory in case of exports)
(iii) Taxable Value
(iv) Tax Rate
(v) Tax Amounts (IGST, CGST & SGST) (in case exports on payment of GST).
(vi) Shipping Bill/ Bill of Export Number
5. Invoices pertaining to exempted including Nil rated supply [both for supply and purchase transaction ]:
Aggregate value of all exempted (including Nil rated) supplies made by the taxpayer during the return period would be submitted. The aggregate value of exempted (including Nil rated) purchases would also be declared by the taxpayer in the return.
6. Bills of Entry relating to Import [only purchase transactions]:
(i) Bill of Entry Number, Date and value
(ii) Assessable Value for IGST
(iii) 8-digit HSN Code for goods
(iv) IGST rate
(v) IGST Amount
(vi) Importer’s address (for transfer of IGST) [Will get auto populated in case of registered taxpayer. In case of others, it will have to be provided by them]
These details would be verified from Bill of Entry data available at ICES / ICEGATE.
7. Credit Note / Debit Note [for Sales-Purchase return, Post-sale discount]:
For sale-purchase return, on account of differential value/quantity/tax rates:
(i) Debit / Credit Note Number
(ii) Original Invoice Number and Date
(iii) Taxable Value, Tax Rate and Tax Amount (CGST & SGST or IGST and Additional Tax) ( that is being modified )
The credit/debit note will be reflected in the monthly return in which such notes have been issued.
GST Law may provide the time period within which sales return can be made and the date (invoice date or date of receipt by the buyer) from which such time period is to be calculated.
8. Post sales discount:
GST Law may provide what constitutes a sale price especially with respect to post sales discount. The Law may also contain suitable provisions about admissibility or otherwise of post supply discounts. The adjustments for post sales discount will be completed before filing of annual return. The credit/debit note will be reflected in the monthly return in which the said adjustment is made.
9. Advances received against a supply to be made in future:
GST law may provide for Point of Taxation Rules which will determine the point at which the taxes would be paid by the taxable person. So, accordingly,
if the tax is to be paid on the basis of advance payment received against a future supply of goods and/or services, then the following details would be required to be provided:
(i) GSTIN/UID/GDI/Name of customer
(ii) State Code
(iii) HSN Code for goods / Accounting code for services
(iv) Amount of advance received
(v) Tax Rate (CGST and SGST or IGST and Additional Tax)
(vi) Tax Amount (CGST and SGST or IGST and Additional Tax)
GST law may provide for provision of TDS (Tax Deducted at source) for certain supplies of goods and/or services made to specified categories of purchasers who will be obligated to deduct tax at a certain percentage from the payment due to the suppliers. They will be required to file a TDS return and submit the following details:
(i) GSTIN/GDI of deductor
(ii) GSTIN of deductee/supplier
(iii) Invoice no. with date (iv) TDS Certificate no. with date and value
(v) Taxable value
(v) Rate of TDS for IGST, CGST and SGST as applicable
(vi) Amount of IGST, CGST and SGST as applicable, deducted as TDS
GST law may retain the concept of Input Service Distributor (ISD). Accordingly, ISDs would be required to file a monthly return and submit the following details:
(i) Details of ISD i.e. GSTIN, name and address
(ii) Details of recipient i.e. GSTIN, name and address
(iii) Details of the inward supply invoices on the basis of which Input Tax Credit is claimed.
(iv) Invoice / Document no. with date
(v) Amount of IGST, CGST, SGST Credit, as applicable, being distributed.
3.10.2 GST Law may provide the suitable provisions for the mandatory fields and data structure which must be contained in a GST invoice.
3.12 Revision of Return
3.12.1 There would be no revision of returns.
3.12.2 All unreported invoices of previous tax period would be reflected in the return for the month in which they are proposed to be included. The interest, if applicable will be auto populated.
3.12.3 All under-reported invoice and ITC revision will have to be corrected using credit/debit note and such credit / debit note would be reflected in the return for the month in which such adjustment is carried out. The credit/debit note will have provision to record original invoice, date etc. to enable the system to link the same with the original invoice as also to calculate the interest, if applicable. Its format will be like the invoice.
3.12.4 There would be separate tables in the returns for reflecting those adjustments for which credit / debit notes are not required to be issued / issued. The interest, if applicable will be auto populated.
5 Annual Return (GSTR-8):
5.1 All the Normal taxpayers would be required to submit Annual Return. This return to be filed annually is intended to provide 360 degree view about the activities of the taxpayer. This statement would provide a reconciliation of the returns with the audited financial statements of the taxpayer.
5.2 This return is a detailed return and captures the details of all the income and expenditure of the taxpayer and regroups them in accordance with the monthly returns filed by the taxpayer. This return also provides for the reconciliation of the monthly tax payments and will provide the opportunity to make good for any short reporting of activities undertaken supply wise. The said return would also capture the details of pending arrears against the taxpayer and the current status of the orders leading to such arrears. The details of all the refund claims pending with the tax authorities would also be captured. Since this return captures the minutest details of income and expenditure of the taxpayer, the gross profit/loss arrived on the basis of the details submitted in this statement should tally with the gross profit/loss indicated in the Profit and Loss Account of the dealer. Accordingly, this return is to be submitted along with the audited copies of the Annual Accounts of the dealer and would be filed by 31stDecember following the end of the financial year for which it is filed.
5.3 A separate reconciliation statement, duly certified by a Chartered Accountant, will have to be filed by those taxpayers who are required to get their accounts audited under section 44AB of Income Tax Act 1961. Currently this limit is ₹ 1 Crore.
5.4 Consolidated statement of purchases and supplies based on monthly returns filed by the taxpayer can be made available to taxpayers by GSTN common portal as a facilitation measure for enabling him to prepare annual return.
5.5 The format of Reconciliation statement would be finalized after finalization of GST Model law.
3.13 Non-filing, late-filing and short-filing of return
A. Non-Filers & Late-Filers
In case of failure by the taxpayer to submit periodic returns, a defaulter list will be generated by the IT system by comparing the return filers with the registrant database. Such defaulter list will be provided to the respective GST Authorities for necessary enforcement and follow up action.
GST Common Portal can auto generate and send the notice to all non-filers (being done by many State VAT authorities) in the form of email and SMS. Jurisdictional tax authorities can get the same printed and dispatch such notices. The details of non-filers shall be made available on the dash board of jurisdictional officers. GST Law may also provide for imposition of automatic late fees for non-filers and late filers which can also be in-built in the notices.
As per the requirement of the IGST model, Return should be allowed to be filed only on payment of due tax as self-assessed and declared in the return. It has, however, been decided that e-Return should be allowed to be uploaded even in case of short payment for the limited purpose of having the information about self-assessed tax liability even though not paid. The invoice matching and inter-governmental fund settlement would, however, take place only after the full tax has been paid. Return without full payment of tax will be allowed to be uploaded but it will be treated as an invalid return and this return will not be used for matching of invoices and settlement of funds.
Any invalid return (including the one not supported by full payment) will merely be recorded with unique transaction ID, but not accepted in the system, and that aspect will be made known to the taxpayer at the time of communicating the ID itself.
[GST Law may provide adequate penal provisions for short-filing and non-filing of return]
06 January, 2017
Government of India has implemented the Employees’ Enrolment Campaign, 2017 (the Campaign) through various notifications. These changes have also been communicated by the Employees’ Provident Fund Organisation (EPFO) to its officials through circulars.
Now, the EPFO has issued FAQs with regard to the Employees’ Enrolment Campaign, 2017.
- EPFO launches Employees enrolment Campaign, 2017
- Limited time opportunity to the employers to voluntarily declare details of all employees hitherto deprived of social Security benefits under EPFO.
The Central Board (EPF) in its 215th meeting held on 19 December 2016, decided to launch a special campaign from 01.01.2017 to 31.03.2017 to enroll left out eligible workers for bringing them under the social security umbrella of EPFO. The campaign seeks to enroll new establishments and employees with or without past service.
2. The Central Government accepting the recommendation of the Board since has notified the scheme for the same. The campaign aims to encourage employers to voluntarily come forward and declare details of all such employees who were entitled for membership between 01.04.2009 to 31.12.2016 under EPF & MP Act 1952, but could not be enrolled.
The enrolment drive offers a limited time window to employers to bring all eligible workers under social security net.
3. According to provisions of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the employer of an establishment covered under the Act is required to enroll all employees drawing wages of up to Rs. 15000/- per month.
4. The declaration scheme is operational between, January 1st 2017 to March 31st 2017. Salient features as under: The employee’s share of contribution if declared by the employer as not deducted, shall stand waived. The damages to be paid by the employer in respect of the employees for whom declaration has been made under this campaign shall be at the rate of Rupee 1(one) per annum. No administrative charges shall be collected from the employer in respect of the contribution made under the declaration. A declaration can be made under the Campaign for the period for which no inquiry under section 7A has been initiated
5. Enabling provision have been made under para 32(a) of the EPF Scheme 1952 and under para (5) of Employees Pension Scheme, 1995 and para 8-A of EDLI Scheme, 1976 to run this campaign. The purpose is to meet the twin objectives of increasing the enrolment, extending social security benefits to employees and reducing unnecessary litigation in courts. The interest of workers enrolled under the campaign remain fully protected and they shall be eligible to get benefits as laid down in the Schemes.
6. Establishments that enroll new employees under the campaign will be eligible to draw benefits available under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) as well as Pradhan Mantri Paridhan Rojgar Protsahan Yojana (PMPRY). The Government pays 8.33% contribution of employers’ share to the Employees’ Pension Scheme (EPS) in respect of new employees having UAN. For textile (apparel) sector, the Government additionally pays 3.67 % towards EPF contribution for new employees required to be paid by the employers.
7. EPFO has made special arrangements for the success of the campaign and appropriate assistance will be made available to employers coming forward to extend social security coverage of their employees. a. Special assignment has been given to officers of the rank of Addl. CPFC for effective and efficient implementation in their respective Zones/States. b. Stakeholder meetings will also be conducted with all employers’ and employees’ associations at all levels to have joint efforts to secure social security to all workers. c. Requisite online facilities for enrolment of workers is also made available. Employers can submit declarations by through their login on the Principal Employer portal on the EPFO’s website and forward authenticated copy to the concerned RPFC. It is expected that with launch of the enrolment campaign many eligible workers hitherto deprived of membership of schemes under EPF & MP Act, 1952 will finally get membership and consequent due benefits under the scheme.
8. Any employer may send during the campaign period, a declaration for membership of the employees. More details of the campaign and FAQS are available at www.epfindia.gov.in and can be accessed at the URL
TATA Translational Cancer Research approved U/s 35(1) (ii) Of Income Tax Act 1961
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION No. 01/2017
New Delhi, the 2nd January, 2017
S.O. 22(E).-It is hereby notified for general information that the organization TATA Translational Cancer Research Centre (‘TTCRC’) under the aegis of TATA Medical Centre Trust (PAN:- AABTT2222Q) has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5D of the Income-tax Rules, 1962 (said Rules), from Assessment year 2016-2017onwards in the category of ‘Scientific Research Association’, subject to the following conditions, namely:-
Exchange facility to foreign citizens - Circular - Dated 3-1-2017 - FEMA
A.P. (DIR Series) Circular No. 24
January 03, 2017