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Posts by RajaSahin

Govt extends deadline for filing income tax returns by a month to August 31

The Central Board of Direct Taxes (CBDT) has extended the due date for filing of Income Tax Returns from July 31, 2018, to August 31, 2018, for certain categories of taxpayers.

The Central Board of Direct Taxes (CBDT) has extended the due date for filing of Income Tax Returns to August 31, 2018, for categories of taxpayers who were to file their returns by July 31.

The decision comes days ahead of the July 31 deadline, which several groups had requested the government to push to later.

CBDT had notified the new income tax return forms for assessment year 2018-19 on April 5. Experts said the introduction of new forms was leading to delays in filing of returns.

Further, the CBDT had said non-filing of ITR before the due date from this assessment year would lead to a penalty of Rs 1,000, 5,000 and Rs 10,000, depending on when the returns were filed after the deadline. The fine for taxpayers having income under Rs 5 lakh remained at Rs 1,000.

If you are still unclear in choosing the appropriate ITR for disclosing your income earned during the previous year, here’s a quick guide on the various ITR forms.

ITR 1 Sahaj:

Applicable to individuals that are an ordinary resident in India deriving income from salaries, one house property, other sources and having total income upto Rs 50 Lacs.

ITR 2:

It is applicable to any individual having total income exceeding Rs. 50 Lacs or having foreign asset/income or having more than one residential house property or income from capital gain or HUF.


It is applicable to individuals and HUFs deriving income from profits and gains from business or profession along-with any income from salaries or house property or capital gains or other sources.


It is for resident taxpayers (Individual, HUF, Firm other than LLP), who have opted for presumptive income scheme as laid down under section 44AD, 44ADA and 44AE of the Income Tax Act, 1961.


This form can be used by a person being a Firm, Limited Liability Partnerships (LLP), AOP/BOI, Private discretionary trust, an Artificial juridical person referred to in section 2(31)(vii), Cooperative Society and Local authority.


This form is being used by Company, other than a company claiming exemption under section 11 of the Income Tax Act. The ITR also introduces a new Schedule for Ind AS Compliant companies wherein they are required to disclose the balance sheet and P/L account in the same format as prescribed under the Companies Act, 2013


Required to be filed when individuals including companies fall under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F). This ITR form is basically meant for trusts claiming exemptions u/s 11 of the Act, Political party, Mutual funds, Securitization trust, and other specified assesses.

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Businesses with nil tax liability may get to file GST returns annually

The GST (Goods and Services Tax) Council in its meeting on July 21 would discuss simplified return form, which is likely to give a breather to small taxpayer with turnover of less than Rs 1.5 crore and composition dealers, sources privy to the developments told CNBC-TV18.

Businesses having zero tax liability under GST may soon can file a one page form annually, instead of monthly returns, sources said.


The council is also planning to discuss mode of utilisation of funds amounting to Rs 1. 80 lakh crore, which is struck with integrated GST (IGST) kitty.

Sources told that council may consider lowering rates on some items including sanitary napkins, ebooks, fertilisers, handicrafts, handloom and some farm products.

But some states are of a view that sanitary napkins must be shifted to exempt category under GST.

However, the council may approve certain changes in some of the GST laws — Central GST (CGST), State GST (SGST) and Integrated (IGST).

To raise funds to help distressed farmers, GST council may deliberate on imposing agricultural cess on luxury goods.

A group of state finance ministers (GoM) mooted by GST Council, would be placing their recommendations on ethanol and sugar cess in the upcoming meeting.

The ministerial panel mooted GST reduction on ethanol from 18 percent to 12 percent but did not favour imposing cess on sugar as arrears to cane farmers are already declining.

The council may discuss issues related to hotel industry, government services and treatment of lottery under GST.

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How to use Facebook to promote your business

Small business owners can’t afford to ignore Facebook.

Nearly all consumers use the Web to search for local businesses – and most of them are on Facebook. The website is the biggest social networking platform in the world by far, with more than a billion active users.

Meanwhile, the social media giant is steadily rolling out features to help users find small businesses, while helping small businesses connect with potential new customers.

A good Facebook presence can help you engage your fans and grow your business. But with so many ways to promote your business on Facebook, it’s hard to know where to start.

1. Create your Page

Your Facebook Page is your business’ home base on the social networking site. A Page is a lot like a regular Facebook profile, but for brands and businesses.

You will interact with Facebook users through your business’ page, so make sure it truly reflects your brand. Use your business logo as the primary photo for your Page, and pick a cover photo that is attractive and showcases what your business does.

Type up a few snappy sentences to describe your brand, and choose a memorable Web address. Facebook Page URLs appear in the form of

2. Share!

It’s not enough simply to have a Facebook Page. To rack up followers you’ll need to create worthwhile, interesting content for your fans.

Users who like your page will see your posts show up in their main Facebook news feed, so get cracking. You can share updates, photos, videos, promotions and a lot more.

The most successful Facebook posts – the ones that drive the most people to comment, share and like – are short and visual. Look for ways to add a visual element to your posts, whether it’s a short video clip, a photo from inside your store, or just stock art.

Facebook’s Page Insights tool helps take the guesswork out of sharing. The tool, accessible from your Facebook Page’s Admin menu, provides valuable information on follower activity. For example, it can tell you what time most people view your content so you can plan your promotions.

3. Start making connections

What good is sharing content if nobody sees it? Fortunately, Facebook has built-in tools to help you build an online following.

First, check out the “Build Audience” tools found in your Page’s Admin menu. You’ll find options to invite both your Facebook friends and email contacts to follow your Page.

Traditional marketing techniques can help you grow your audience beyond your existing following. That means advertising your Facebook Page’s Web address on signs in your store, on your business card, in emails you send, and on any other marketing materials you produce for your business.

If you took the time to create a simple and memorable URL for your Page from the start, it will be easier to promote it in the future.

4. Engage your followers

Meanwhile, you can grow your audience organically by creating content that your followers want to share, like and comment on.

The key is to post quality content regularly. That means sharing updates that are relevant to your audience at least once or twice per week. For best results, try taking a friendly, conversational tone, and remember to be succinct.

Keep your updates timely, and respond directly to comments and private messages. Creating a dialogue with your followers will encourage them to engage with your posts in the future.

Facebook also offers a few direct marketing tools for business users.

Facebook Offers is a tool that allows you to create coupons that can be redeemed in your store or online. For a fee you can also have Facebook push your offer onto the news feeds of users who don’t already follow your business. By establishing a budget you determine how many users will see your offer. Promoted Posts allow you to boost the visibility of any Page update. For a fee, your post will appear near the top of news feeds belonging to potential customers.

5. Leverage friends of fans

New customers are more likely to try your business if their friends already use it. Facebook lets you leverage word-of-mouth to promote your product or service.

Keep in mind that when a fan interacts with your Page, their friends will see the activity in their news feed.

You can foster more interaction in a variety of ways. Set up polls and ask questions on your Facebook Page that fans can’t resist responding to.

Encourage customers to “check in” to your business on Facebook when they visit by offering a small discount for anyone who does. Checking in is a feature that allows users to notify their friends of where they are.

You can also create special events and limited-time promotions and invite your followers, who can invite their friends in turn.

6. Consider Facebook ads

Facebook also offers traditional advertising options that let you position your custom ads in users’ news feeds. The ads appear as promotional posts and direct anyone who clicks straight to your website.

Because Facebook collects heaps of user data, it can target your advertisement to users who are most likely to be interested in your product or service.

The platform also features an analytics tool to help you understand which ads drive interest and sales.

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Will GST Make Or Break Your Business? Here’s What Industry Says

In November last year, however, the government revised GST on most FMCGs down from 28% to 18%.

It’s not all bad news when it comes to the Goods and Services Tax (GST). While micro, small and medium enterprises (MSMEs) may be drowning in hidden overheads, industries like auto manufacturers and fast moving consumer goods (FMCG) have reasons to be pleased with the hidden gifts GST has given them. NDTV looked into case studies and the numbers to find how each sector is handling the year-old tax regime.


Indikala, a four-year-old, one room business, was growing steadily, with a 260 per cent jump in turnover from the first year to the second. This year, Indikala grew a mere 8 per cent.

Owner Neil Gadihoke says his costs have gone up everywhere – from sourcing handicrafts from GST registered, and therefore more expensive, artisans, making Rs. 82 or Rs. 88 on every 100 earned instead of the Rs. 95 he was getting earlier, to even paying more for necessities like the chartered accountant.

“My chartered accountant’s fees have gone up three times,” said Mr. Gadihoke. “He used to file returns once every quarter, now he files them 16 times, and then the additional headache of that website, compliances, I think he is justified.”

The courier service is also charging him six per cent more, thanks to the GST. With profits flatlining, Mr. Gadihoke has started taking tuition classes, and is considering closing down the business if things don’t change soon.

However, for auto manufacturers, the dog days are over. Auto accounts for a massive 50 per cent of manufacturing in India, and 7 per cent of GDP (gross domestic product). Taxes have actually gone up for this sector, but the GST has still pushed auto prices down.

“In a sector like auto manufacturing, we get parts from different states, and every time these parts would cross state borders, the taxes would get embedded in the price,” said Sugato Sen, the deputy director general at the Society of Indian Automobile Manufacturers. “Now with the clean up thanks to GST, these have been removed, and we have been able to pass on those savings to customers.”

And happy customers mean happy businesses. After hovering between 3.5-7 per cent from 2012 to 2017, domestic sales growth for the auto sector shot up to 14 per cent in 2017-18. While price cuts amounting to lakhs for luxury cars drew flak for passing GST benefits to the rich, the highest growth came in sales came for commercial vehicles, with a 25 per cent jump in sales for light commercial vehicles alone. In the passenger vehicles category, Maruti Suzuki (13.8 per cent), SkodaAuto (26.8 per cent) and Tata Motors (21.9 per cent) all showed a healthy growth in sales.

FMCG makes up one of the fastest growing sectors in the country. When the GST was first implemented, FMCG companies complained that it was above the effective rate in the pre-GST era, as it did not account for production in excise free zones. In November last year, however, the government revised GST on most FMCGs down from 28 per cent to 18 per cent. Companies say these benefits were immediately passed on to the consumers – making goods such as detergents and toothpastes cheaper.

But this, too, pushed up sales. Sales growth for FMCG giant Godrej went from 4 per cent in 2017 to a whopping 10 per cent in 2018. For Dabur, the uptick in sales was over 3 per cent.


While growth in sales cannot only be attributed to the GST alone, large companies admit that the new tax regime has definitely been a positive influence. As the GST network grows, and compliances and refunds become simpler, MSMEs hope they can draw on these benefits as well.

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One Year Of GST: Why Are Taxpayers Being Denied Transition Credit?

As the Goods and Services tax regime neared one year of implementation on July 1, the high courts, the Authority for Advance Rulings and the revenue department got busier. Thanks to the litigation that experts say pertain to three key areas – transition credit, uncertainty on the law that is prompting taxpayers to approach the AAR and allegations of profiteering by consumers against manufacturers.

In this first part of the special series on GST litigation on BloombergQuint’s weekly law and policy series- The Fineprint– Badri Narayanan, partner at Lakshmi Kumaran & Sreedharan, explained why transition credit has become a contentious issue.

Transition Credit Troubles

For a smooth transition from value-added tax, excise and service tax regime to GST, the government had allowed taxpayers to avail input tax credit on transition goods. For instance, a manufacturer could avail of credit for goods sold in the GST regime but on which VAT had been paid. The closing balance of credit in the books of companies was also permitted to be used against GST liability. To claim this transition credit, taxpayers had to file Form Tran 1 before December 2017. It is the amounts claimed in this form that the tax department is now contesting, Narayanan said.

This is because of certain lacunas in the law. For instance, under the pre-GST regime, credit on capital goods wasn’t available if the output tax was zero. But under GST, supplies- that are being manufactured using these capital goods- are now taxable. Taxpayers are saying it’s wrong for you to deny me the credit- at least the proportionate portion of the capital goods credit- when I’m actually paying tax on the output. This is especially pronounced for places that enjoyed area-based exemptions.

Badri Narayanan, Partner, Lakshmikumaran & Sridharan

Another area that is being litigated is transfer of credit attributable to cesses. The law allows for transfer of CENVAT (central VAT) credit from earlier regime to GST, Narayanan explained. CENVAT consists of a variety of taxes- major ones being excise and services tax- but it also includes taxes like education cess, etc. Since all cesses are now subsumed under GST, the department has taken a view that credit of education cess cannot be carried forward, he added.

Let’s say there’s an automobile company. Considering how big your output is, this number in absolute terms can be quite big. And some sectors that saw an increase in rates, before they were reduced in November, for them this credit is extremely useful to discharge their GST liability.

Badri Narayanan, Partner, Lakshmikumaran & Sridharan

The litigation is also on account of calculation errors but that’s easier to ascertain and resolve, he pointed out. But if the department’s view prevails – on law and on the calculations- it could mean additional GST liability for taxpayers in the second year of GST regime.

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Rs 20 crore GST evasion detected in Bengaluru

BENGALURU: Bengaluru South GST Commissionerate has detected GST evasion of about Rs 20.70 crore by a private limited company, engaged in the manufacture of lead acid batteries. The investigating team found the company, based at Bommasandra/Jigani industrial area, had charged and collected GST from its customers from Feb to May this year, but did not remit the same to the government.

“The Company has admitted its lapses of GST liability and the department has recovered an amount of Rs 16.47 crore immediately out of the tital liability of Rs 20.70 crore,” G. Narayanaswamy, Commissioner of Central Tax, said in a press release.

source : economictimes
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