What is the date of Effective Voluntary Cancellation of Registration under the IT ACT?

Say 12AA Registration, Registration u/s Sec 10 (23C) , PAN NO, TAN NO. etc

1.Voluntary Cancellation of any Registration ( Maybe granted Sec 12AA, u/s 10(23C, etc), Assessee may apply for cancellation of the Registration to the Authority at any point of time.

2.Once the cancellation application was received by the Authority, it is the duty of the Authority Either to accept it OR issue a Show Cause Notice to the Assessee within a reasonable time.

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3.Where no show cause notice was received within a reasonable time then Date of Cancellation of Registration has to be accepted as on the date when Assessee made the application before the Authority.

4.Where Show Cause Notice was received from the Authority, towards Cancellation Application, then the Effective date of Cancellation shall be held as the Date on Conclusion of hearing before the Authority OR reply to the Show Cause notice was placed before the Authority.

The above view was based upon the Principle that
” All the Powers held by someone in a Public Office are powers held in TRUST for the benefit of the Public at Large.
Officers have no discretion either to use or not to use the powers given by the ACT to the Officers.

registration

5.Ex: For deciding the Effective Date of Voluntary Cancellation of Registration:
(i). Date of Application: 5th Feb 2019.
( ii). Show cause notice issued by Deptt: 10.03.2019.
(iii). Date of the hearing of Show Cause Notice. 20.03.2019.
(iv). Date of communication towards Cancellation from.Deptt: 05.06.2021.

Here the date of Voluntary Cancellation of Registration Shall be the date when on Conclusion of hearing of the Show Cause Notice that is 20.03.2019.

Date of Communication from Deptt. Towards Cancellation that is 05.06.2021 has no Relevance.

According Assessee is not under any obligation to fulfil the provisions relating to the Registration From.FY 2019-20.

The above view is supported by the Judgment of the ” NAVAJBAI RATAN TATA TRUST vs. PCIT (MUM.ITAT).

Nut Shell:

1.Voluntary cancellation of Registration ( Say 12AA, (10(23C)), shall be effective from the date on conclusion of the Hearing or filling reply to the Show Cause Notice towards Cancellation.

2.No Show cause notice it is the date of Application for Cancellation.

3.Date of Deptt’s letter granting Cancellation has no relevance to decide, Date of Cancellation.

I think this article may help you to fulfil your professional endeavours. Please read and circulate.

HSN Number for GST

HSN Number for GST

What is HSN Number for GST

The full form of HSN means Harmonized System Nomenclature.

HSN code number is broadly utilized as a part of numerous nations to order products for tax collection reason, asserting advantages and so on. Fit System of Nomenclature number for every item is acknowledged by the greater part of the nations and the said HSN code stays same for all products. In any case, HSN number utilized as a part of a portion of the nations changes nearly nothing, in light of the idea of products characterized.

HSN Code for GST

HSN code is not linked with Tax Rate

  •  HSN code is not linked with tax Rate till everybody understands HSN code. And for Turnover below 1.5 Cr. No need to mention HSN code in the invoice, from 1.5 Cr. – 5 Cr only mention 2 digits of HSN code and above 5 Cr mention only 4 Digit of HSN code.|

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  • For the invoice, No format and No color are Specified by the department. You can design your own invoice. The only thing to keep in mind is that some details are mandatory is to mention in Invoice.

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  • If our supplier registers under composite scheme (below turnover of 75 lacs) he could not take credit of GST or he could not pass GST credit. He has to pay only 2% of turnover as GST if he is a manufacturer and 1% if He is Traders. And 5% if he is the restaurant.

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  • If our GST input is more than GST output (ie for E-rickshaw industries most of the items input credit of 28% and output GST is 12%) in that case after every month return files person can apply for refunds (RDF1)  and that refund will be obtain within 60 days  otherwise departments is liable to pay interest on it. and refund application can be done up to 2 years. So worries of a Capital block is removed.

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Anti-Profiteering Rules

     

  • There are Anti-Profiteering Rules. –  Everyone is can take mod vat credits of Excise, Services Tax, VAT, Octroi, Entry Tax on its stock items and it has to pass to customers. For example, If I am buying today an iron pipe at Rs.62 per Kg plus 5% VAT ( which included 12.5% excise, 2% CST and 3.5% Octroi.) but after 1st July supplier can credit of all the tax and he has to reduce its basic price. He can not charge Rs 62 + 18% GST but he has to reduce its price by tax amount and decide the new base price, if any supplier is not abiding by it then we can complain against him and the department will penalize on such suppliers.

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 No need of E waybill till next 6 months.

     

  • If we do not receive payments in 60 days from customers then we can claim for GST amount charged on it. So most people worried removed if customers fail to pay us then we lose our Tax amount also. And if customers pay after six months then we can again pay GST which we have taken back as credit.

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  • All people worried there are 37 Returns in the year. And there is no revised return. But it’s not 100% truths. Every month we have to files our output ( sales or services) we add our invoice day to day base to GST portal. And save it. we can edit also that invoice. On 10th or before 10th we just have to upload all edited sales invoice. Since we have edited invoice before uploading no need of revised return.  Until 15th you can check all your purchase and verified (no need to files return its only verification) on 20th you just need to update your final return after correction if any.  And if there is any mistake found we can be rectified that mistake in next months returns So it becomes more simple than before.

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Thus GST is very easy and it removes all headache of Form C, Deals with different departments like Excise, Sales Tax, Octroi, Entry Tax and many others. So we all should welcome GST open heartedly.