GJM & Co.

*GST Council in the 32nd meeting held on 10th Jan 2019 took following decisions to give relief to MSME (including Small Traders):* *Increase in turnover limit for the existing composition scheme for goods:* The limit of annual turnover in the preceding financial year for availing composition scheme for Goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the composition limit in their respective States. *Composition scheme for services:* A composition scheme shall be made available for suppliers of services (or mixed suppliers) with a tax rate of 6% (3% CGST + 3% SGST) having an annual turnover in preceding financial year up to Rs 50 lakhs. The said scheme shall be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods. *Compliance simplification under composition scheme :* The compliance under composition scheme shall be simpl...

The NRI Series – NRI Obligations, Incomes & Deductions In our first article of the NRI Series ( https://gjmco.blogspot.com/2018/11/the-nri-series-understanding-nri-status.html ) we discussed about NRI Status and Scenarios when the NRI incomes can be liable to taxes in India.   In this second article we shall discuss the various types of income and deductions NRIs’ are eligible to.   But before we move further let’s revise upon the NRI Status & their taxability from the previous article briefly: NRI Status: You are considered an Indian resident for a financial year: (i.) When you are in India for at least 6 months (182 days to be exact) during the financial year (ii.) You are in India for 2 months (60 days) for the year in the previous year and have lived for one whole year (365 days) in the last four years. If you are an Indian citizen working abroad or a member of a crew on an Indian ship, only the first condition is available to you – which means you ar...

The NRI Series – Understanding NRI Status & Taxation From today we are commencing a series of Articles related to Non Resident Indians’ (NRIs) implications under Indian Income Tax Laws.   The articles will endeavour to educate our NRI readers on applicability of Indian Income tax laws on their incomes and in each article we will take up different income aspects and how they should are dealt with.   We trust this will be helpful. Our first article in this series is about understanding your NRI status under the Income tax Act of India which primarily determines taxability of your incomes. Hence, the first step is to understand the status of an NRI in order to decide whether the income of the NRI is subject to tax in India or not. This article talks about different NRI statuses, NRI taxation and Resident but not Ordinary Resident (RNOR) status. Are you a Resident or a Non Resident Indian?   What constitutes taxable income in India for a Non Resident...

Cases where GST Credit Not Available Today we shall discuss situations/transactions where Input Tax Credit under GST cannot be availed.   This is a very important aspect one needs to know as incorrect recording or GST transactions can have serious repercussions.   So we have tried to simply what transactions are a NO for claiming input tax credit (ITC) under GST rules: 1.      Motor vehicles & conveyances ITC is not available for motor vehicles and conveyances. Exceptions to ITC on motor vehicles when they are used for : a.)    Supply of other vehicles or conveyances.   If you are in the business of supplying cars then ITC will be available.   So automobile dealers can claim ITC. b.)    Transportation of Passengers.   So if you are providing transportation of passengers then ITC will be allowed on the Vehicle purchased and used for such transport.   Hence, all businesses running Passenger ...