If income Tax Already paid, Why you need to pay other taxes? How?

The taxes are of two type.

What you are paying are direct taxes. the government can not solely rely on direct taxes to collect the resources. Moreover higher taxes of a singular type will cause widespread tax evasion. So the government has to levy indirect taxes like Service tax, excise, VAT etc.

So the collection of various taxes ensures that the burden of a particular tax does not fall on selected types of people and is broad-based like excise/service tax which all of us bear in as the component of the cost of goods which we buy or consume.

Income tax Consultants in Bangalore

Taxes in India are based on aspect theory.

Consider this example. You booked a flat in a project wherein the construction is in progress. The taxes applicable in this case are

1) VAT – For goods being sold to you ie steel, cement, sand etc forming part of construction material

2) SERVICE TAX – For service being rendered to you ie labor involved in the construction

3) INCOME TAX – Developer needs to pay taxes on profit earned by him from the sale of apartments

4) STAMP DUTY – On registration of this property.

These are apart from labor licenses, various cess and other like taxes which government collects.

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KYC non-compliance

Govt deactivates ID numbers of 2.1 million directors

The government began the process of deactivating the identification numbers of almost 2.1 million directors of companies that did not comply with KYC standards, according to a senior official. The director’s identification numbers (DIN), a unique number assigned to people who are eligible to be directors at meetings of registered companies, are being deactivated. They will be reactivated after paying a fee of 5,000 rupees along with the required form and the affected people could also face a lawsuit.

KYC

The latest movement of the Ministry of Corporate Affairs also comes at a time when the government has intensified the crackdown on the front companies, which are suspected conduits for illicit cash flows. In June, the ministry decided to carry out the KYC process (Know Your Client) for all directors, including those who have been disqualified.

The last date to comply with the new rules by sending the form ‘DIR-3 KYC‘ without charge ended on September 15. The senior ministry official said that of the 3.3 million active directors, only about 1.21 million directors completed the KYC process. The balance of around 2.1 million people did not meet the requirement.

The process of deactivating the non-conforming DIN is in progress and is likely to be completed on September 17, 2018.

After the deadline of September 15, the MCA 21 system will mark all approved DINs, assigned on or before March 31 of this year, against which the DIR-3 KYC form has not been filed as “deactivated“. The reason for the deactivation would be “no presentation of DIR-3 KYC,” according to the ministry. Interested parties use MCA 21 to submit the required documents to the ministry.

According to another communication from the ministry, which is implementing the Companies Law, the form can be presented “with respect to such deactivated DINs only with a rate of Rs 5,000, without prejudice to any other measure that may be taken”.

Last year, the ministry had disqualified more than 300,000 people from the management of registered companies in the midst of fighting illicit funds flows. These people were directors of companies that did not carry out commercial activities for a long time.

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September: Last Month for ITC Claims and Rectification of Errors for FY 2017-18

A very significant month has arrived for all taxpayers under GST updates namely September because it will be the last month for taxpayers to claim any pending credit for invoices issued between the 2017-18 period and to correct errors in the return form of the year.

Many taxpayers have made some mistakes in filing tax returns including negligence of transactions in certain places while errors in credit claims are increased or incorrect even under credit claim reporting.

In accordance with GST rules and regulations, if there is a taxpayer who is left behind in claiming a tax credit for invoicing for the 2017-18 FY year, he can now claim the same in September.

Also if the tax payer has forgotten one of the debits or credit notes issued in the 2017-18 TA monthly GST return form, can correct the error in the month of September.

It must be noted that in the case if a taxpayer does not take action against errors and omissions in the GST refund details filing on FY2017-18 finally in the return form in September there will be no further opportunity.

The GST Board is in the process of introducing a new GST return form that will be launched effectively on January 1, 2019. The form will bring higher accuracy to match invoices from both suppliers and buyers based on claims made by taxpayers.

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