Forum: Taxation & Corporate Law Forum
Speaker: Renowned Tax Consultants
AWARENESS PROGRAMME “MAKING MARCH MEANINGFUL”
VIA Taxation & Corporate Law Forum in association with the Nagpur Branch of WIRC of ICAI organised Tax awareness Program “Making March Meaningful”. The speaker for the Program were CA Kapil Bahri for Income Tax, CA Mahendra Jain for Sales Tax & CA Hemant Rajandekar for Excise & Service Tax.
CA Kapil Bahri specialist in Income Tax said precautions should be taken by everyone in regards to filing returns of Income Tax. Starting his deliberation he said that this year March is different than previous years as our country is going through major reformation in form of Demonetization, less cash economy, early presentation of Budget. Accounting is very important business tool and should be done regularly and not after year end, he emphasized. Bank accounts should be checked regularly as the unexplained cheque entry can have implication under the Money Laundering Act and Benami Transactions as well behind income tax @ 137% as well as prosecution for such transactions. He stressed that the cash transactions pre & post demonetization should be supported with genuine transaction documents. Public at large should change their habit and move towards cash less transactions. He explained the importance of timely Advance tax and made it clear that in time to come, nonpayment of advance tax could also be reason for scrutiny assessment.
He opined that advance to sister concern should normally be interest bearing to avoid the taxability on notional basis. Payment of towards term loan & other facilities to bank should be done timely to avoid the disallowance u/s 43B. He has also covered all the implications of the new budget proposal such as tax benefit to Corporate sector of 5%, Less tax on online / bank transactions. He also advised the businessmen to regularly obtained the valuation report of jewellery which could help in subsequent years to the tax payers. Unwanted debit and credit balances should be examined before the year end so as to have hassle free books closing as well unwanted consequences during scrutiny and other proceedings, he advised. Before accepting the loan, verify the creditworthiness and sources of the funds of lender to avoid unwanted additions in the income, he cautioned the Industrialist. The confirmation of account should be obtained at the year end so as to avoid complications at a later date, he suggested. He also highlighted various practical instances and problem that has resulted in heavy penalty & fine on the taxpayer.
CA Mahendra Jain, expert in VAT said smiling started by commenting “Verify your purchaser before purchasing any goods and check its TIN number with its validity”. On the date of transaction the registration certificate of dealer is live or not. Check regularly the details of your vendor from the website of the sales tax department wherein entire detail of non filers & short filers is available in updated mode, he advised. All purchase should be with dispatch proof to justify the genuineness, he advised the audience. He cautioned that the dealers should time the returns timely and pay the dues within the due time prescribed as the sales tax department has started charging interest on progressive basis ranging from 1.25% per month to 2% per month. The deals should avoid paying interest. He further advised the industrialist to check the registration certificate so as to evaluate if the new commodity is to be added in that certificate. As far as the period for which books of accounts are required to be kept, he shared that even though the records of 6 to 10 years are compulsory for income tax purpose, the same is required t be maintained for a period of 8 years are required to be kept for the purpose of VAT purposes. As the Governments at Central as well as State level has replaced the penalty with late fees, which is non appealable, thus this should be avoided.
Transition towards GST- the mobile number and email id given for provisional registration of GST should be given cautiously as there is no provision to change the details till GST is implemented. Since every time OTP will be sent to registered mobile number and email id. The State Government has provided last change to get provisional GST registration is 6th March 2017.
The purchaser while obtaining Tax Invoice should also have the TIN of the seller to have the proper credit. Penalty for failure to apply for registration is equal the amount of Tax payable, he shared the law with the gathering. He aptly covered the TDS provision in the VAT laws as well as the changes proposed in the state budget presented today only.
CA Hemant Rajandekar, The indirect taxes, Central Excise, Service Tax &VAT was under a shadow of GST entire year. Hence while finalizing the books of accounts for March 17 we have to keep eye on GST, which will come in force from 1st July 2017. He highlighted importance of availing all balance cenvat credit as per returns on 30/06/2017 will only be available as opening credit in GST. Thus has to be done in specific reference of CENVAT credit on a/c of reverse charge which is available only on payment. He further pressed on the importance of giving correct quantitative details of inventories on 31st March 2017 in financial statements as on the date because transitional provisions of GST will require calculation of input credit based on opening financial statements. He emaphasied on developing the habit of maintaining of regular books of account from March 2017, only so that we are ready for GST.
The program was attended by Industrialists, Businessmen, Accountants, Professionals & VIA Members.
At the outset, the speaker CA Kapil Bahri was welcomed by O S Bagdia, Vice President – VIA, Speaker CA Mahendra Jain was welcomed by CA Umang Agrawal, Vice Chairman – ICAI, Speaker CA Hemant Rajandekar was welcomed by CA Sandeep Jotwani, Chairman of ICAI. The workshop began with introductory remarks by CA Naresh Jakhotia, Joint Secretary – VIA, O S Bagdia also welcomed newly elected Chairman of the Nagpur Branch of ICAI CA Sandeep Jotwani.
CA Sandeep Jotwani gave his welcome address and said organizing such meaningful program in March Marching Meaningful and Chhoti Chhoti Batein helps and benefit of the entrepreneurs of the region. The program was well conducted by CA Naresh Jakhotia, Jt Secretary – VIA Tax & CA Sachin Jajodia, Convener, VIA Tax & Corporate Law Forum gave a concluding remark & proposed a formal vote of Thanks.
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