“MAKING MARCH MEANINGFUL”
“TIMELY COMPLIANCE OF TAX LAWS COULD
PREVENT UNWANTED CONSEQUENCES” – BAHRI
VIA Tax & Corporate Law Forum in association with the Nagpur Branch of WIRC of ICAI organised Tax awareness Programme “Making March Meaningful”. The speaker for the Programme wereCA Kapil Bahri for Income Tax, CA Mahendra Jain for Sales Tax & CA Atul Sarda 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. The property transactions cannot be done in cash in excess of Rs. 20,000/- w.e.f. 01.06.2015 & violation attracts hefty penalty, he informed the gathering. Accounting is very important business tool and should be done regularly and not after year end, he emphasised. Bank accounts should be checked regularly as the unexplained cheque entry can have implication under the money laundering Act as well behind income tax @ 30% for such 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. Inventory, the widely mismatched in the accounts books, should be checked and maintained regularly and more particularly Physical stock should be taken at the end of the year with the involvement of the taxpayer personally. Inventory not only help the taxpayuer from taxpayer angel but also enforces self disciplined, he opined.
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 and the way it will affect the property transactions. He also highlighted the various conclusions from the operation or non operation of lockers. 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 yearend 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.
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 despatch proof to justify the genuineness, he advised the audience. 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. For stock transfer, there is a reduction of 4%, he informed the participants. As far as the period for which books of accounts are required to be kept, he shared that even though the records of 6 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. He appealed for timely filing of sales tax return by the dealer as the delay now attracts the late fees of Rs. 5,000/- if dealy is beyond one month and if the delay is of less than 1 month than late fee would be Rs. 1,000/-. He also highlighted the features of composition schemes that is made applicable to the retailers and bakery. 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 also covered the provision of inter act set off provision that is available like entry tax, CST, Luxury tax etc. He aptly covered the TDS provision in the VAT laws as well as the changes proposed in the state budget presented today only.
CA Atul Sarda, a renowned tax consultant in Excise & service Tax categorically argued that the industry should get financial statements should be got scrutinized by indirect Tax Consultant apart from direct tax consultants. He insisted on the timely reconciliation of the Excise record/ service tax record with the financial record to avoid the unwanted consequences at a later date. He suggested the integration financial accounts with the excise/service tax records. of He also highlighted the reverse charge mechanism and expressed concern over the ever increasing scope of reverse charge mechanism. He explained the cenvat credit rules on regular service tax payment as well as service tax paid under reverse charge mechanism. On input credit, he informed the audience that without payment also, the input credit can also be availed but the payments has to be done within a period of 90 days. He elaborated the Validity period in case of Stay Order and mentioned that the same is for a period of 180 days only. He informed about the applicability of service tax rate & also of swatch bharat cess of 0.50% against which no cenvat credit is available.. He also covered various changes that is proposed in the recent budget vis-a-vis recent budget.
The programme was attended by Industrialists, Businessmen, Accountants, Professionals & VIA Members.
At the outset, the speaker CA Kapil Bahri was welcomed by O S Bagadia, Chairman – VIA Economy & Finance Forum, Speaker CA Mahendra Jain was welcomed by Chairman of ICAI, CA Swapnil Ghate, SpeakerCA Atul Sarda was welcomed by O S Bagadia. The workshop began with introductory remarks by CA. Naresh Jakhotia, Convener, VIA Tax & Corporate Law Forum. O S Bagdia also welcomed CA Swapnil Ghate for holding the charge of Chairman of the Nagpur Branch of ICAI. CA Swapnil Ghate gave his welcome address and said organizing such meaningful program in March helps and benefit of the entrepreneurs of the region. The programme was well conducted by CA. Naresh Jakhotia, Convener, VIA Tax & Corporate Law Forum & Sandeep Jotwani gave a concluding remark & proposed a formal vote of Thanks.