GJM & Co.

GST Input Credit on Capital Goods Today we shall explain through this article about the implications of considering availability of Input Credit on GST paid towards purchase of Capital Goods. Currently businesses may be using many capital goods on which input tax credit is available. This article is for the portion of credit of GST paid on purchasing capital goods. First let us understand what Capital Goods are:   Capital goods are assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services. For example, a stone screening machine used in mining industry is a capital asset for the Miner. So then what is the difference between capital goods & other inputs? You are using a screener to filter mined minerals like ore. You fill diesel to run the machine or incur expenses on the screener’s maintenance. These are your inputs.   The ore filtered is your final product.   The Screener is the cap...

Outsourcing Finance & Accounts – A revolution to experience The outsourcing industry has grown rapidly and systematically over the last couple of decades with India being at the epicentre of the action.   Yet there are numerous businesses globally who are far away from considering outsourcing as an alternative to in house functions.   The question that remains for them is - why they should start shifting non-core activities overseas?   Isn’t outsourcing your accounts to someone who isn’t a native English speaker and working thousands of miles away risky?   So here we will deal with explaining why outsourcing pros weigh out the cons. As businesses expand, many of them look for strategies to help control expenses, stay ahead of the competitors, and implement novel solutions without increasing overheads. Outsourcing of Finance & Accounts, when professionally managed, happens to be a sure shot solution sufficing those requirements. Still, not everyone ...

Goods & Service Tax Monthly GSTR-1 Filing Due Date Extended The government has modified the due date for filing of final Goods and Service Tax (GST) sales returns by businesses with turnover exceeding ₹1.5 crore to the 11th day of the succeeding month. Currently, such businesses are required to file GSTR-1 or final sales return of a particular month by the 10th day of the succeeding month. In a notification issued today, the Central Board of Indirect Taxes and Customs (CBIC) has stipulated that details of outward supplies for July 2018 to March 2019 has to be filed by the 11th of the succeeding month. All other deadlines remain unchanged for businesses with turnover below & up to ₹1.5 crore. For any queries feel free to write to us at info@gjmco.in Thanks & Best regards, Knowledge Base Team GJM & Co. Chartered Accountants www.gjmco.in

New KYC Norms for Directors by ROC Sometime ago, Registrar of Companies (ROC) across India struck off inactive rather non-compliant Companies and disqualified Directors associated with those Companies. Directors associated with these struck off Companies filled several petitions before various high courts on the ground that opportunity of being heard was not provided. ROC issued notices to Companies concerned but not informed directors associated with them because ROC doesn’t have any database of individual directors. So, as a part of creating database of directors consisting mobile number, email Id and residential address of Directors, Ministry of Corporate Affairs (MCA) issued a new form which is required to be filled every year by every DIN holder. Form DIR-3 KYC is the annual form required to be filled with the ROC by every Director Identification Number (DIN) holders regardless he is appointed as a director or not, whether he is qualified or disqualified. Every ...

TDS on Sale of Property by NRI in India The process, Tax Deduction at Source (TDS) Rate and compliance are complicated when one purchases property from a Non Resident Indian (NRI) as compared to purchase of property from a Resident Indian.   In this article we will focus on TDS Deduction on purchase of property from NRI.   The crux is that TDS is required to be deducted on Capital Gains and not on the Sale Price, when purchasing a property from an NRI. TDS % on Purchase of Property from NRI TDS under Section 195 is required to be deducted on the Capital Gains as per the below mentioned schedule, upon purchasing a property from NRI –:- Long Term Capital Gains (LTCG) – Property held for more than 2 years – 20% Short Term Capital Gains (STCG) – Property held for less than 2 years –Slab Rates of Seller Surcharge and Cess would also be levied on the above respective amounts. This TDS is required to be deducted whenever any payment is made to the NRI f...

Crucial changes in Income Tax returns for A.Y. 2018-19 Returns filing season is here and several changes were made by the Finance Act 2017 which will be applicable in the returns which will be filed in the current Assessment Year 2018-19. This article has guides you to consider changes that has come to the return forms this year. 1.) Surcharge on income over Rs 50 Lakhs A new surcharge @ 10% has been introduced in case of individuals whose Total income exceeds Rs. 50 Lakhs but is up to Rs. 100 Lakhs 2.) Rebate of Section 87A Till last year, any individual having Total Income of less than 5 Lakhs were awarded with a rebate of Rs 5,000 u/s 87A. However, this rebate amount has now been reduced to Rs 2,500 and that too is available only for those individuals whose Total Income is up to 3,50,000  Lakhs   3.) Changes in Tax rates - Income falling in the second slab rate of 2.5 Lakhs - 5 Lakhs (3 Lakhs to 5 Lakhs in case of senior citizens) shall be taxed at ...

Deadline for filing first instalment of advance tax ends 15 June. Come let us have a synopsis of what is Advance tax all  about: Paying advance tax helps you divide your tax liability over the year rather than paying at one go. Not paying advance tax can attract a penalty You need to pay the first instalment of advance tax by 15 June. Paying advance tax helps you divide your tax liability over the year rather than paying at one go at the end of the financial year. Who needs to pay At the beginning of the year, you should ideally estimate your total income for the year, especially if you are a businessman or professional. If the expected tax liability on the estimated annual income is more than Rs10,000, you have to pay advance tax. For individuals with salary as the sole income, advance tax is taken care of by the employer who deducts tax at source at the time of crediting salary. But even if your primary source of income is salary but you have other income which is not declared...