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Not all is well with the unorganised transportation segment, mainly truck owners, post implementation of the Goods and Services Tax (GST). Three days into the new tax regime, truck owners across India are struggling to smoothen the flow of cargo amid lack of clarity on procedures. "We cannot understand whom to ask for the GST number. Every day we are getting to know something new," said P Sukeshan, president of the Cochin Goods Transport Association. The association operates mainly in Kerala and has 120 truck owner members with about 3,000 trucks. "We are also taking consignments without GST numbers as there is no clarity on what is needed. Cargo movement is affected as we are unable to understand how the GST works," he added.Transportation in the north zone of the country is also impacted. With Jammu & Kashmir (J&K) still to accept the new tax regime, cargo flow has come to a stand still. "Movement is halted as there are no dispatches to J&K. C...

The Centre on Tuesday warned that legal action would be initiated against manufacturers for not printing the revised MRP after GST roll-out. Food and Consumer Affairs Minister Ram Vilas Paswan said the government had given time till September to reprint the revised maximum retail price(MRP) with the implementation of the land mark goods and services tax(GST). He said the prices of some commodities have fallen, while prices of some have increased with the implementation of GST.“Fallin prices due to lower GST should be passed on to consumers....The government will take legal action against vendors not declaring revised MRP after GST,” he said. Business Standard New Delhi, 05th July 2017

In a recent notification, the Ministry of Corporate Affairs erased the requirement to apprise the Competition Commission of India (CCI) within 30 days of the signing ofadeal foramerger and acquisition (M&A). However, an M & A deal can´t be implemented without CCI clearance. So, competition lawyers say the rule change would end the practice of sending ´half baked filings´ to avoid heavy penalties. Earlier, they say, in the rush to comply with the deadline, these filings would contain little substantive information.The penalty used to be one per cent of annual turnover or the relevant assets for delayed filings. Hence, the experts believe the change would result in companies trying to send all the requisite documents at one go to the CCI, which could result in wrapping up of M & A cases within stipulated 210 days. Till now, the CCI would approach companies every now and then after getting their M & A filings for clarifications.When a clarification is sought, the 210 d...

The government is closely monitoring the price and supply situation in the markets and has deployed 175 senior officers to ensure a smooth transition  to the goods and services tax (GST), Revenue Secretary Hasmukh Adhia told the media on Tuesday. “We are keeping an eye on the prices and supply of essential and daily-use items, in particular,” he said, adding, “Not a single incident of hindrance in the implementation of the GST has been reported since its roll-out.” As many as 175 officers of the ranks of joint secretary and additional secretary have been given the charge of four-to-five districts each to oversee the GST implementation. These officers will not be in the field but will receive feedback from link officers posted in the respective districts on the availability of essential commodities and retail price movement. They will subsequently submit reports to a central monitoring group, chaired by Cabinet Secretary P K Sinha and comprising 15 other secretaries who will mee...

Corporate Travellers Must Give Employer Details for Tax Credit GST invoices to be shared with cos every month, which can be used to claim benefits. Airlines have written to its corporate travellers to register their companies’ or employers’ GST number to claim a tax credit. Corporate travellers form a significant chunk of the air traffic in India. They comprise between 30% and 45% of passengers of a lowcost airline and up to 60% for a full service airline. GST of 5% has been levied on economy-class airline tickets and 12% is charged on business class. “It is mandatory for guests travelling for business to add their company’s GST details at the time of booking. To ensure a seamless experience, we request that you inform your guests travelling for business to register on our portal and claim up to 12% back on flights," Jet Airways said in the letter to its registered passengers. “After registering, simply add your guest’s GST number every time you make a booking, and all other G...

The goods and services tax (GST), India’s new indirect tax regime, makes directors of private limited companies liable for recovery of unpaid taxes, interest or penalties pertaining to supply of goods or services. To complicate matters, the GST Acts do not provide a definition for the term ‘director’ or make any distinction between executive or non-executive directors. Further, the existing directors and officer’s liability insurance — that helps a company hedge against professional and functional risks emanating from managing and running a business – do not cover the additional risks under GST. Section 89 of the Central GST Act refers to recovery of tax, interest and penalties in case of private companies. “In such cases all directors will be held liable unless they prove it is not due to their neglect or breach of duty," says Shriram Subramanian, founder and managing director, InGovern Research Services. Legal experts say VAT Acts of some states put the onus on directors for...

Be careful before categorising it as business income to claim deductions. Court judgements have clearly defined rules for such classification Nowadays, many individuals are investing in real estate to create a regular income stream from rent. Apart from residential property, they are increasingly looking at spaces they can rent out to banks for ATMs, godowns, small shops and even commercial complexes. However, filing tax on the income received from such rent can be tricky—it can be classified business income, income from house property, or as other income depending on owner’s main line of business. Claiming deduction Whether your income from real estate is treated as business income or as income from house property will have a significant impact on the tax deductions you can claim. For example, there are no specific restrictions on the deductions you can claim for business income. The tax payer is free to deduct all eligible expenses from his business income. However, the tax laws ...

The Central Board of Excise and Customs (CBEC) is prepared for the transition to the goods and services tax (GST). Any issues that come forward will be resolved  within the best time possible, VANAJA SARNA, its chief, tells Dilasha Seth. Edited excerpts: What will be on top of your agenda for the next 15 days? With the legal framework put in place, the next and most important step is to hand-hold the taxpayers and other stakeholders, to ensure their smooth transition into this new regime. We will be focusing on helping them in their compliance requirements. All our field offices have opened GST Sewa Kendras, from where taxpayers can get the help they need. Information on various aspects is also being disseminated through the media. Another important aspect will be clarifying any doubts that might arise while interpreting the laws and notifications. How prepared is CBEC (to be soon renamed the Central Board of Indirect Taxes and Customs) for the implementation? We are fully prep...

As many as 223,000 new dealers have entered on the GST Network since June 25, when the registration was opened to them. Issuing a statement on the second day after the GST roll-out, the finance ministry said 63,000 of these dealers had submitted full details of which 32,000 had been granted fresh registrations. The GSTN gives preliminary IDs on the basis of basic information, and final registration after detailed information is submitted on the network. The ministry said the second day passed without any major problems being reported from the field. The revenue department has got encouraging reports from roadside dhabas and big restaurants as well as from kirana shops and departmental stores. Business Standard New Delhi, 03rd July 2017

The Indian stock market could continue to remain volatile with a downward bias as corporates and investors assess the impact of the landmark goods and services tax (GST) on their businesses, investments, and the economy. Market pundits are still trying to get a grip on how the new tax regime will impact inflation, gross domestic product, and profit margins of firms after July 1 roll-out. They, however, are unanimous in their belief that the markets could remain under pressure as the transition to the GST is likely to be fraught with hiccups, which could disrupt economic activities. Ahead of the GST — which subsumes most of the preGST indirect taxes levied by the Centre and states — implementation, the benchmark Nifty declined in six of the previous eight trading sessions, with automobile and banking stocks, in particular, underperforming the market. “The GST may disrupt the system for a few days, maybe weeks or months, as people are not yet fully ready for the execution. The Street...

Event Date Act Applicable Form Obligation 06/07/2017 Service Tax Challan No.GAR-7 E-payment of Service Tax for month ending June for Cos & quarter ending June for others. 07/07/2017 Income Tax Form No.27C (TCS) Submission of Forms received in June  to IT Commissioner 07/07/2017 Income Tax Challan No.ITNS-281 Payment of TDS/TCS deducted/collected in June 10/07/2017 Excise ER-1 Return for Non SSI assessees for June 10/07/2017 Excise ER-2 Return for EOUs for June 10/07/2017 Excise ER-3 Submission of return by SSI units for June quarter 10/07/2017 Excise ER-6 Return by units paying duty >  1 crore (CENVAT + PLA) for June 12/07/2017 D-VAT BE - 2  Advance information for 2nd fortnight of July of functions with booking cost > Rs 1 lakh in Banquet Halls,hotels etc. in Delhi 15/07/2017 D-VAT  DVAT 20  Payment of DVAT TDS for June 15/07/2017 Income Tax  Form 15G/H  E-filing of form 15G/H received during June Quarter 15/07/2017 Income Tax...