Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Monday, June 25, 2018

E-Way Bill in Delhi-NCR (Delhi, Haryana, UP)

What is E-Way Bill?

E-Way Bill is an electronically generated bill which is required to be generated by a registered person who intends to initiate the movement of goods in India from one place to another (both inter-state and intra-state), the value of which per invoice is more than Rs. 50,000 with the exception of Delhi where the value shall be more than Rs. 1 lac.

The bill is required to be carried by the carrier of a consignment.

Upon generation of the e-way bill on the common portal (http://ewaybill.nic.in), a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

Applicability of E-Way Bill

Who, When and How 

Who

Registered Person who causes the movement of goods of consignment of more than Rs 50,000 in value.
- in relation to supply (eg. sales)
- for reasons other than supple (eg. sales return, branch transfers, etc.)
- due to inward supply from unregistered person

Unregistered Persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.

Transporters carrying goods by road, air, rail, etc. need to generate eway bill if neither the consignor nor the consignee generates the eway bill and the value of goods is more than Rs. 50,000.

They can enroll themselves on the e-way bill portal (https://ewaybillgst.gov.in) and generate the 15 digits Unique Transporter Id.

The transporters however are not obligated to generate the eway bill where all the consignments in the conveyance are
- individually (single invoice/bill/delivery challan) ≤ Rs. 50,000 but
- in aggregate (of all invoices/bills/delivery challans) > Rs 50,000

If the transporter is transporting multiple consignments in a single conveyance, Form GST EWB-02 can be used to produce a consolidated e-way bill, by providing the e-way bill numbers of each consignment.

When

- Value of goods is more than Rs. 50,000
- Inter-state movement of goods for Job Work irrespective of the value of consignment
- Inter-state movement of handicraft goods irrespective of the value of consignment

In case of transport by road - generated before the movement of goods
In case of transport by railway, air or vessel - generated before or after the movement of goods

Notes:

The railways shall not deliver the goods until e-way bill is produced.

The consignment value of goods for the purpose of e-way bill generation shall be the value declared in an invoice/bill of supply/delivery challan, as the case may be, including tax and cess as mentioned in the document and excluding the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

Consignment Value = Invoice Value + Taxes - Value of Exempt Goods

How

Furnishing information related to transaction in Part A of Form GST EWB-01
Furnishing information related to transport in Part B of Form GST EWB-01

Validity

The validity is dependent on the distance travelled by the goods since the generation of e-way bill.















Notes:

Validity of one day will expire at midnight of the day immediately following the date of generation of e-way bill. 

The validity of an e-way bill can be extended by the generator either 4 hours before expiry or within 4 hours after its expiry.

Where, under exceptional circumstances, the goods cannot be transported within the validity period, the transporter may generate another e-way bill after updating the details in Part B of Form GST EWB-01.

In case of import or export of goods, the approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country i.e. in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs.

Non-Applicability of E-Way Bill

1. Goods of value less than Rs. 50,000 (except in specified mandatory applicability eg. movement of handicraft goods and movement of goods for inter-state job work)

2. Goods are being transported by a non-motorised conveyance (eg. manual carts, horse carts, etc.)

3. Goods are being transported:
  • from the port, airport, air cargo complex and land customs station to an inland container depot (ICD) or a container freight station (CFS) for clearance by Customs
  • from ICD or CFS to a customs port, airport, air cargo etc under customs bond
  • from one customs port/station to another one under customs bond
  • under the customs supervision or customs seal
4. Goods transported within the notified area

5. Goods transported are transit from/to Nepal or Bhutan

6. Goods are transported to a weighbridge within 20kms and back to the place of business by being covered under a Delivery Challan

7. Where Government or local authorities transport goods by rail as a consignor

8. Goods transported are to/from the Ministry of Defence

Notes:

In case of movement of goods from the place of consignor to the place of transporter up to a distance of 50 km does not require filling of PART-B of e-way bill. However, Part-A needs to be generated.

E-Way Bill in Uttar Pradesh

Intra-State implementation of e-way bill for Uttar Pradesh commenced from 15th April 2018.
The Commercial Taxes Department of Uttar Pradesh has prescribed one or more of the following documents/certificates:

TDF - (Transit Declaration Form) for goods of other states that pass through UP while in transit.

Every goods vehicle that passes into/through UP is required to be registered on the portal after which TDF-1 and TDF-2 can be generated.

TDF - 1

Every heavy vehicle, passing through UP, is required to generate transit form in TDF-1, while entering UP.

The form shall require particulars relevant to the goods and the transportation of goods and is to be carried while traveling in UP, for verification at any point in time.

TDF - 2

This form has to be generated within 24 hours of the vehicle exiting UP to utilize TDF -1.

E-Way Bill-01 (Import Declaration Form) for heavy vehicles transporting goods from other States into Uttar Pradesh for delivery.

E-Way Bill-02 (Transport Memo) for movement of goods from UP to any other state or for movement of goods within the state between two cities in UP.

E-Way Bill-03 (Declaration Form) for movement of goods by e-commerce operators within UP.

Validity

E-Way bill TDF remains valid for a period of 4 days from the date of its generation.
E-Way Bill in Delhi

Delhi became the last to implement intra-state e-way bill amongst all the states in the country. 

With effect from the 16th day of June, 2018 e-way bill shall be required in respect of intra-state movement of goods in Delhi, without passing through any other state, where the consignment value of the goods being transported exceeds Rs. 1 lac.

This shall be applicable only in case of B2B transactions above Rs. 1 lac only, i.e. B2C transactions of any value shall not require e-way bill for intra-state movement in Delhi.


Contributed by:
Ms. Kashika Ahuja
Member, GST Core Team
Sandeep Ahuja & co.

Monday, June 18, 2018

TDS Notices, Defaults, Penalties, Interest and Online Correction of 26QB – TDS on sale of Immoveable Property


TRACES is the site where we can generate 26QB – TDS on sale of Immoveable Property make corrections and generate TDS Certificates for TDS deducted by the buyer of property
TDS is applicable on transfer of Immovable property under section 194IA enacted by Finance Act 2013 where the consideration of property exceeds or is equal to 50 lacs. TDS Provisions for Property Sale/ Purchase above 50 Lacs are as under:
1)     WEF 1st June, 2013 Tax @ 1% should be deducted by the buyer of the property at the time of making payment of sale consideration.
2)     For furnishing of Information of such transaction a 26QB form is to be filed online containing PAN of seller as well as buyer & Address, Transaction value and date of agreement for such transaction. In case of more than 2 buyers or sellers the Challan and Form 26QB will be filled in by all the buyers for respective sellers for their respective share.
3)     Any sum so deducted under section 194 IA shall be required to be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made either through Net Banking or through Authorized Bank Branches.
4)     TDS certificate in Form 16B is required to be issued by the Buyer of property to the Seller, in respect of the taxes deducted and deposited in Government Account.
5)     Challan and Form 26QB will be filled in by all the buyers for respective sellers for their respective share.
6)     If the person liable to deduct tax does not file 26QB and deposits the Tax Deducted in time will be treated as Assessee in default and shall be liable to pay Interest under section 201 of Income Tax Act,1961 before furnishing the Form 26QB
(a)   In case of TDS Deducted but Not paid in Time @1.5% for every month or part of a month on the amount of such TDS from the date on which such TDS was deducted to the date on which such TDS is actually paid.
(b)   In Case TDS is not deducted @1% for every month or part of a month on the amount of such tax from the date on which such TDS was deductible to the date on which such TDS is deducted.
7)     No filing or late filing of statement of TDS / TDS returns in Form 26QB the Assessee in Default shall be liable to pay late fees under section 234E @ Rs 200 per day till the failure to file TDS statement continues with challan within a period of seven days from the end of the month in which the deduction is made.
8)     The late filing fees shall be deposited before filing the TDS return in Form 26Q but the total fee cannot exceed the amount of TDS deductible for which statement was required to be filed filing fee.
9)     No filing or late filing of statement of TDS / TDS returns in Form 26QB shall invite penalty under section 271H minimum Rs 10,000/- to Rs 1 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement.
10) As Per section 271H, penalty will be levied if the deductor/collector files an incorrect TDS return minimum penalty of Rs. 10,000 and maximum penalty of upto Rs. 1,00,000/-. In Case TDS return is filed without payment of Penalty under section 271H it may be levied on deductor by the assessing officer.
11) TRACES is sending two types of notices:
 i) Demand of interest payment in case TDS is paid but interest is payable, and
ii) Demand of TDS and interest payment in case TDS is deducted or not deducted but not paid to the credit of the Central Government and TDS return in Form 26QB not filed.

Online Correction of 26QB

The CPC TDS released Online Correction facility for TDS statements filed in form 26QB, for TDS on transfer of Immovable Property where consideration exceeds Rs. 50 Lacs. The TRACES has given now Online Correction facility for closure of the following TDS Defaults due to incorrect data entry in the 26QB statement.

Steps for online correction in 26QB
·         Register at Traces.
·         Register your DSC.
·         Make Correction in the following Fields : PAN of Buyer Details, PAN of Seller Details, Amount Paid/Credited, Date of Payment / Credit, Date of Tax Deduction, Financial Year & Details of Property.
·         No DSC required for Corrections in the fields of email address, Mobile Number and Address of the Property.
·         In case a person does not have DSC then Assessing Officers’ Approval is required except for amendment in E Mail ID, Mobile and Address of the property.


Some important points related to correction of form 26QB
1) Bank Branches cannot do 26QB challan correction.

2) Assessing officers are not authorized for 26QB challan correction.
3) Correction only in select challan fields:
·         Buyer PAN
·         Seller PAN
·         Assessment Year
·         Major Head i.e.0020- Income tax on companies(Corporation Tax) and 0021- Income Tax(other then companies).

4) Challan fields that cannot be corrected: Correction is not possible for following relevant fields:
·         Total Value of Consideration (Property Value)
·         Minor head i.e. Type of Payment – 800 (TDS on Sale of Property)
·         Address
·         Property Details
·         Payment Details
·         TDS or Tax Deposit Details including penalty i.e. interest and Fee.

5) The Process of 26QB Challan Correction: For 26QB Challan Correction, a buyer has to submit the written application to the PAN Assessing Officer as per the jurisdiction of the buyer’s PAN. To know your PAN Assessing Office, please click on the following link : https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html

6) NOC from seller: A buyer need NOC from the seller on an affidavit in original. This original NOC should be attached to the application for 26QB Challan Correction.

7) Correction Status: If your correction is approved by IT department then it will be reflected in the Form 26AS of the seller. A buyer may request the seller to check his/her Form 26AS for corrections.

TDS on Sale of Property, Delays & defaults in 26QB and
payment of TDS

The Buyer of Immovable Property (Other than rural agricultural land) is required to deduct tax on the rates applicable from the sales consideration payable to RESIDENT Transferor provided the sales consideration is equal to or more than Rs.50 Lacs.
Section 194IA would be applicable if any of the following conditions are satisfied:
1. If the transaction of sale is occurred on or after 1st June 2013 & sales consideration is equal to or exceeding Rs. 50 Lacs. OR
2. If the advance consideration received before 1st June 2013 is equal to or exceeding Rs. 50 Lacs but sale agreement is made after 1st June 2013.

Tax is to be deducted at Source at the time of payment or at the time of giving credit to transferor, whichever is earlier. So at the time of sale of property the tax can be deducted in installments or lump sum as per the date of agreement by the 7th of the subsequent month in which agreement is entered into for payment in installments or in lump sum but as per the date of payment. If any advance payment is being made, then tax is to be deducted at the time of such payment. If the payment is made in installments then tax is to be deducted on payment of each installment.

The Tax is deductible @ 1% of the consideration payable to resident transferor [if valid PAN is quoted]. If the seller does not provide valid PAN, then the tax is deductible @ 20%.
The tax deducted is to be deposited by challan cum statement on Form 26QB. In case
the property is held by joint owners, the provisions of Sec 194IA will still be applicable
because the threshold limit of Rs. 50 Lacs is property-wise and not transferee-wise.
Permanent Account Number (PAN) of the seller as well as buyer should be mandatorily
furnished in the online Form for furnishing information regarding the sale transaction. If the PAN of seller is not filled or wrongly filled, then TDS would be deducted @20%.

Procedure of depositing the Tax Deducted:

The buyer has to fill the details of buyer and seller in Form No. 26QB. After that, the buyer has to remit the tax deducted electronically. On receipt of payment confirmation, a nine digit alpha numeric acknowledgement no. would be generated and such acknowledgement no. is to be kept by the buyer. On successful payment, a challan containing CIN and payment details would be generated. Print this as it will be required at the time of registration as Tax Payer.

There are two options to make payment:
a) Online payment through net Banking.
b) E-Payment at a subsequent date.
In case a) option is selected then as soon as click for first option there is window to select the name of the bank from where the payment is to be made and then account details and other details a for E-payment are required. After successful payment the receipt is generated which is further required at the time of generating Form 16B i.e TDS Certificate.
In case b) option is selected then Acknowledgement slip for TDS on sale of immovable
property is generated having PAN of Buyer, PAN of Seller, 9 digit alpha numeric Acknowledgement number, Amount of TDS as well as last date of payment. Then second step in this option is to make payment which can be done by bankers on behalf of the Buyer of the property or otherwise e-payment can be made by Clicking on the given link:
https://onlineservices.tin.egov-nsdl.com/etaxnew/PopServletOffline
After clicking the above web page there are the following information is to be entered:
·         PAN of Buyer.
·         PAN of Seller.
·         Ack Number of Pre-generated 9 digit Alpha Numeric Acknowledgement Number.
·         Assessment Year which is subsequent to Fin. year in which property is purchased i.e Assessment Year is 16-17 for Financial Year 15-16.
Generally payment of TDS on Purchase of property is a huge amount so Income Tax
Department has given tutorials for the same.
There are E-Tutorials for TDS on Sale of Property:
E-Tutorial for making the on line payment or for subsequent payment please follow the given links respectively:
TDS on Property - e-tax payment immediately (through net banking)
TDS on Property - e-tax payment on subsequent date (through bank branches)
https://www.tin-nsdl.com/download/TDS/eTutorial_TDS%20on%20property_etax-subsequently.pdf
In case of failure to deposit the tax deducted, interest and penalty would be levied on the purchaser. Interest will be charged @ 1.5% per month or part of the month from the date of deduction to date of actual deposit. TDS CPC has raised the demands against delays and defaults in filing 26QB. TDS CPC has sent U/S 200A and raised demands under Section 156 for defaults and Section 234E for delays @ Rs.200/- per day.

Payment of Demand raised on delays and defaults:
Now TDS CPC has given the facility to make payment of demand raised against TDS on Sale of Property has been enabled.
To Pay Such Demand raised please click on
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp


Contributed by Megha Bansal

Monday, June 4, 2018

Seva Bhoj Yojna to reimburse Central Share of CGST and IGST on Free Food by Religious Institutions

1st june 2018 Govt  introduces a scheme - ‘Seva Bhoj Yojna’ to reimburse Central Share of CGST and IGST on Food/Prasad/Langar/Bhandara offered by Religious Institutions

The Ministry of Culture has introduced a new scheme namely ‘Seva Bhoj Yojna’ with a total outlay of Rs. 325.00 Crores for Financial Years 2018-19 and 2019-20 to reimburse the Central Government share of Central Goods and Services Tax (CGST) and Integrated Goods and Service Tax (IGST)so as to lessen the financial burden of such Charitable Religious Institutions who provide Food/Prasad/Langar (Community Kitchen)/Bhandara free of cost without any discrimination to Public/Devotees.

ü  The Charitable Religious Institutions should have been in existence for at least five years before applying for financial assistance/grant.
ü  Not less than 5000 people  in a month should have been served free food
ü  Such institutions covered under Section 10( 23BBA)  of the Income Tax Act  or Institutions registered as Society  under Societies Registration Act ( XXI of 1860) or as a Public Trust under any law for the time being in force of statuary religious bodies constituted under any Act  or institutions registered under Section 12AA of Income Tax Act  shall be eligible for grant under the scheme.
All the eligible institutions should be registered with Darpan portal.
The Ministry will examine all applications along with supporting documents received from the institutions within 4 weeks and if found eligible such charitable religious institutions will be registered for reimbursing claim of CGST and Central Government share of IGST paid on above mentioned specific items.
Ministry of Culture will register the eligible charitable religious institutions for a time period as may be decided and the registration may be renewed on the performance evaluation of the institutions.
The details of registered institutions will be available on an online portal for the viewership of public, GST authorities and entity / institution itself. The entity / institution will be permitted to submit the reimbursement claim of the GST and Central Government share of IGST to designated authority of GST Department at State level in the prescribed format during the validity of registration.
Such institutions/entity will be responsible to intimate the Ministry about any changes being made in Memorandum of Association, Office bearers or addition / deletion of the location of the free food services.

Amendments in Income Tax w.e.f. 1st April 2018

1. RE-INTRODUCTION OF STANDARD DEDUCTION

In a relief to the Salaried Class, the finance minister has re-introduced  standard deduction of Rs. 40,000 from salary income. Such deduction is  also available to PENSIONERS .

2. CESS HIKED TO 4%

Cess on the tax liability has been increased by 1%. this cess will be called "Health and Education Cess."

3.TRANSPORT ALLOWANCE AND MEDICAL REIMBURSEMENT TO BECOME TAXABLE

4. HIKE IN THE DEDUCTION LIMIT ON MEDICAL EXPENDITURE

Under section 80 D, the limit has been proposed to be hiked from Rs.30,000 to Rs.50,000 for individual above 60 years of age.

The deduction for individual below 60 years of age continues to be Rs.25,000 but if their parents are senior citizen, they can claim an additional deduction  of Rs.50,000-Taking total deduction of Rs.75,000. Similarly, under section 80DDB limit has been hiked to Rs.1,00,000 for senior and super senior citizens.

5.TAX-EXEMPTIONS ON NPS CORPUS FOR SELF EMPLOYED.

For self employed ,it has been proposed to exempt 40% of total amount payable from tax upon closure of national pension scheme   to bring self employed individuals at par with salaried class.

6. DIVIDEND DISTRIBUTION TAX ON EQUITY MUTUAL FUNDS.

DDT @10/% will be levied in case of equity mutual funds. however, dividend will remain tax free in hands of investors and the tax will be deducted by the fund houses before distribution of dividend.

7. MORE INCOME TAX BENEFITS ON SINGLE PREMIUM HEALTH INSURANCE POLICIES

Health insurers typically provide some discount if you pay premium for a few years upfront. But earlier, an individual could claim deduction only up to Rs. 25,000. Under the proposed changes in Budget 2018, in case of single premium health insurance policies having cover of more than one year, deduction will be allowed on a proportionate basis for the number of years for which health insurance cover is provided, subject to the specified limit.

FOR EXAMPLE, your insurer is offering a 10 per cent discount on health insurance premium if you pay Rs. 40,000 for the two-year cover. Under the proposed changes, the individual can claim Rs. 20,000 in both years.

8. DEDUCTION IN RESPECT OF INTEREST INCOME TO SENIOR CITIZENS

Senior citizens will get higher interest income exemption limit on deposits in banks and post offices, including recurring deposits. Currently, a deduction up to Rs. 10,000 is allowed under Section 80TTA of the Income Tax Act to an individual in respect of interest income from a savings account. Under the tax laws, a new Section 80TTB is proposed to be inserted to allow a deduction up to Rs. 50,000 in respect of interest income from deposits held by senior citizens.However, no deduction under Section 80TTA shall be allowed for senior citizens.

Compliance Calendar - June 2018

DATE
STATUTORY COMPLIANCE
APPLICABLE FORM
OBLIGATION
07/06/18
Income Tax
Challan No.-281
Payment of TDS/TCS deducted/collected by Government Entities/ Non -Government entities in  May,2018 except for provisioning.
07/06/18
Income Tax
Form No. 27C(TCS)
Submission of Forms received in May to IT Commissioner
10/06/18
GST
GSTR-1
Registered person ( aggregate turnover of more than 1.5 Crore ) for month of April,2018.
14/6/18
Income Tax
TDS Certificate
Issue of TDS Certificate for tax deducted in the month of April, 2018 - under section 194-IA(Sale of Immovable Property)
15/06/18
Provident Fund
Electronic Challan Return (ECR)
E Payment of PF for May,2018
15/06/18
Income Tax
Form 24G
Filing of Form 24G by Government Office where TDS for April,2018 paid without production of challan
20/06/18
GST
GSTR-3B
Monthly self declaration for month of May, 2018.
20/06/18
GST
GSTR-5
To be filled by Non Resident Taxable person for May, 2018.
20/06/18
GST
GSTR-5A
Return to be filled by OIDAR  for May, 2018.
25/06/18
EPF
EPF
For month of May, 2018
30/06/18
Income tax
Challan
Furnishing challan cum statement u/s 194-IA for May,2018
30/06/18
GST
TRAN-2
For the dealers who do not have bills/invoices for the tax paid on the inputs.