Speaker: CA Rajesh Loya, CA Shailendra Jain & CA Varun Vijaywargia
VIA Tax & Corporate Law Forum & Vidarbha Tax Practitioners Association jointly organised a programme “Chhoti Chhoti Batein” by renowned & Prominent Tax Professionals of the city namely CA Rajesh Loya for Income Tax, CA Shailendra Jain for Value Added Tax (VAT) and CA Varun Vijaywargia for Service Tax, Excise and Custom.
Naresh Jakhotia welcomed the guest and briefed about the concept of the programme to the audience and the results of small mistake in the tax laws. Atul Pande, President – VIA in his welcome address said the formation of VIA Taxation Forum came in to existence 8 years back to simply update the industrialist and taxpayers about the changes in the tax laws and harmful tax provisions. He emphasized the importance of compliance vis a vis ignorance in compliance. CA. R.S.Paliwal, President – VTPA in his opening remarks highlighted the importance of timely updation of tax information so as to match the speed of amendment.
Initiating the presentation, CA Rajesh Loya asked the tax payer to be very serious in keeping the records and books of accounts. He began his presentation with the appeal to the taxpayer to change the mindset to comply with the law. He asked the taxpayer to comply with the law in due spirit and respect. He appealed the assessee to ensure the timely filing of TDS return, Income Tax Return & Advance tax payment. He also covered the penal provision for not complying with the various provision of Income Tax. He also cautioned about various other laws like money laundering, IPC that could have repercussion after the income tax survey. He advised the gathering of the AIR information and CIB, STR & FIU information gathering done by the Income Tax Department. He strongly asked to ensure the payment of statutory dues within time. He gave special emphasis to the income tax implications on various practical aspects as a result of demonetization. He also covered the implications of cash credit, cash deposits in the bank account and increase in sales as a result of recent demonetization move of the Government. He advised the assessee not to treat the tax compliance as year end affair and also to check the 26AS frequently. He cautioned the investor about the classification of income in proper way. He advised the taxpayer to be cautious in the TDS compliance as the non deduction /payment results in disallowances and results in unwanted tax liability. He also emphasizes the need for correct classification of income as capital expenditure vs. revenue expenditure. He appealed taxpayer to be genuine and honest in paying the tax. He also told the audience about the prosecution proceedings which are initiated through out the country for wrong filers or non filers. He also highlighted the new provision of taxing income @ 75% and that too without any exemption limit if the source of income remained unauthentic. He informed the audience about the quality scrutiny proceeding which is at 6% presently. He has also thrown the light on deemed dividend, section 14A & notional tax provision.
CA Shailendra Jain said advised the gathering to start following up for declarations in Form ‘C’, E-1, E-2, H,F,I as soon as the quarter end instead of waiting till the end of the year or start of the VAT Audit. He asked to dealer to verify the declarations forms received from buyers so as to ensure that the information furnished, therein is correct and meets the requirement of law. With an example he explained to ensure that all the required details are properly filled particularly in case of ‘H’ Form and ‘I’ Form. After receipt of the declaration forms, he suggested dealer to arrange them in proper sequence and make the list of wanting declaration forms to pursue for the rest of the declarations. If on receipt of any declaration any discrepancy is noted there in please communicate to the buyers immediately and insist for issue of correct and complete declarations, he highlighted. In case of doubt please take the declaration to your consultant and have his opinion on the admissibility of declarations and the future course of action to be taken. If you wait till audit U/s. 61 or the assessment then and if during the course of assessment or Audit any discrepancies pointed out then it may be too late for you to get the discrepancies removed as a result you may suffer loss because of additional tax liability, interest and penalty, he cautioned. When you submit any declaration to the department please ensure that you obtain a dated acknowledgement from the authorities to that effect and make a bunch of duplicate of all such forms submitted and on the top of the bunch/bundle keep the acknowledgement stapled/ pasted / tagged, he opined. He said that dealers should adopt a system so as to get the declaration forms on timely basis. No stay for tax liability is granted in the course of appeals where declaration forms are not available. Further the sales tax department has adopted the e-correspondence where all the correspondences will be send on mails only. The dealers should develop habit of checking mails on daily basis and should reply timely.
CA Varun Vijaywargia for Service Tax, Excise and Custom, , said in Service Tax & Excise presentation that Payment should be invariably made within due date else assessee is liable for interest and penalty both which is very hefty. He also informed the audience about the non availability of set off of taxes against capital goods purchased. Old registrations if not in use should be cancelled immediately. The status of ER-1, Dealer and ST-3 Returns uploaded online & should be checked on next day, whether “Filed” or some error is there. Always reconcile the annual figures shown in ST-3 Returns with the P&L A/c and Form 26AS, he opined. For Companies, service tax on reverse charge basis is applicable. The registration should be amended suitably. He further advised the service tax dealer to be in touch with their consultant always, to take preventive consultancy, rather than waiting for the end of period / year. Don’t try to decide the applicability of tax on your transactions on the basis of “newspaper items”, he cautioned the gathering. After July 2012, the Mega Exemption notification and Negative List are the only things which should be kept in mind while deciding the applicability of service tax. He explained the mode of taxability in the next year if in the preceding year, service receipt falls below the exemption limit. He elaborated about the reverse service charge mechanism of service tax and the precaution that one should take while complying with the service tax & excise laws. CA Varun Vijaywargia said due care should be taken while filing returns under service tax where both exempted and taxable turnover should be given. The return filed is taken as self assessment of tax and non disclosure of correct figures may attract penal provisions too. He further added that documents supporting the abatements & exemptions claimed should be carefully done, as these documents will be helpful in case of departmental audits.
The programme was largely attended by Industrialists, Professionals, Students, Businessman and general public and was followed by numerous question and answers round. The speakers have replied all the queries of the audience and all have appreciated the initiative done by VIA & VTPA.
At the outset, floral welcome of CA Rajesh Loya, CA Shailendra Jain & CA Varun Vijayvargia was done by Shri Atul Pande, CA. O.S. Bagadia and CA. R.S. Paliwal. The programme was well conducted by CA. Naresh Jakhotia, Convener, VIA Taxation & Corporate Law Forum & vote of thanks was offered by CA. Sachin Jajodia
The programme was well attended by CA. Nitin Gandhi, Kamal Sarda, Pawan Khabia, Mahendra Jain, Anil Sharmaand lot of industrialist and members.
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