GST – (Goods & Service Tax)

The introduction of GST is being seen as second major tax reform after 1991. GST is in the limelight again and everyone wants to have a talk about it. What is GST? GST is the abreviated form of Goods & Service Tax. It is a new tax regime to be implemented under which ” single…


BUDGET 2015-2016


Service Tax Cahnges w.e.f 1st March 2015

1) Change in procedure / conditions for service tax registration:Order No.1/2015 is issued on 28th February 2015 (w.e.f. 1st March 2015) which prescribed documentation, time limit and procedure for registration. It is prescribed that service tax registration for single premises shall be granted within two working days
2) Invoices are now allowed to be signed digitally:Moreover, assesse will have option of maintenance of records in electronic form and every page of record so preserved shall be authenticated by means of digital signature
3)Time limit of taking CENVAT credit is being extended from six months toone year from the date of invoice.

Service Tax changes w.e.f 1st April 2015



CENVAT credit on Canteen Service

By Advocate Manas Joshi As we all are aware that w.e.f. 1st April 2011, the definition of “input service” is changed and in the new definition, the credit of catering / canteen service has been specifically excluded. Accordingly, all the companies stopped taking CENVAT credit on canteen service and started booking service tax amount as…


Payroll Processing & Salary Computation

CERTIFICATE COURSE FOR PAYROLL & SALARY COMPUTATION An employer, regardless of the number of workers they employ, must maintain all records pertaining to payroll taxes (income tax withholding, Social Security and federal unemployment tax) for at least four years after the tax becomes due or is paid, whichever is later. Altogether, 20 different kinds of…


Export to Nepal in INR and FOC export – whether excise duty benefit is available

This article has been published on by our faculty member Advocate Manas Joshi on the subject “Export to Nepal in INR and FOC export – whether excise duty benefit is available”.

Receipt of foreign currency plays a very vital role in development of the economy of any of the country and therefore, many of the countries maintain foreign exchange reserves in order to meet international payment obligation including sovereign and commercial debts, financing imports etc. As we all are aware, foreign currency can be generated through exports and therefore, in order to encourage more and more exports, the Government of India has provided various schemes and tax incentives on export of goods. By using such tax incentives, the selling price of the export goods gets reduced and thereby such export goods becomes compatible in the foreign market. Accordingly, Indian goods get more demand in the foreign market and thereby foreign currency can be generated.


Annexures J1 & J2 along with MVAT returns to be submitted – applicable from April 2014

As per Trade Circular No. 9T of 2014, dated 25 March 2014, Maharashtra Sales Tax department has stated that every dealer required to file returns should file information pertaining to dealer-wise sales in Annexure J1  and dealer-wise purchases in Annexure J2, before filing the returns.

The existing process involves annually filing Annexures J1 and J2, the corresponding details in which are then electronically matched by the Sales Tax department at a later stage. This system has created immense pressure on the suppliers and customers to procure ledger confirmations and other documentary evidences to the satisfaction of the department, when their respective cases come up for VAT assessments after a few years and the department points out a mismatch.

In consideration of the many representations, the department has now decided to implement the process for the periodic filing of Annexures J1 and J2. The new procedure is aimed at helping dealers resolve their purchase and sale mismatch, and take corrective action before the year end. The gist of the circular is as below:


MVAT Composition Scheme for Retailers effective from 1st Oct 2014

Maharashtra Government has made changes in composition scheme through notification dated 21st August which will be made applicable from 1st October 2014. This scheme is beneficial for the dealers who finds difficult to maintain books of accounts for e. g. Grocery Shopkeepers, etc. However there are some conditions of the scheme also. –

Sales department has simplified the new composition scheme, in this tax payer has to pay 1% on the total turnover of sales including tax free goods or 1.5% on the sales of taxable goods. That means one has to choose option from 1% or 1.5% of VAT rate. E.g. In first option, 1% rate is selected and if the total turnover is 30 lakhs which includes taxable goods of Rs. 25 lakhs and tax free goods of Rs. 5 lakhs, then he has to pay VAT @ 1% on total sales of 30 lakhs i.e. Rs. 30,000. If he chooses 2nd option then he has to pay VAT @ rate 1.5% on taxable sales of 25 lakhs i.e. Rs. 37,500. It means it is beneficial to record Tax free and Taxable goods different or pay 1% VAT and get relaxation from maintaining books.


New Presumptive taxation u/s 44AD from AY 2011-12

A new section 44AD has been incorporated in the Income-tax Act to provide for special provisions for computing business profit on presumptive basis from the assessment year 2011-12. This section has been inserted to replace existing section 44AD and 44AF and this new section will be applicable to any business (whether it is retail trade or civil construction or any other business) except the business of plying, hiring or leasing goods carriages referred u/s 44AE.