Goods and service taxes

The biggest and historic tax reform hit India on the early morning of 1^st July with a lot of expectations and confusions at the Central Hall of Parliament where both houses were present. Amidst all, it has paved root to the most emerging tax in India. The most awaited GST, simplified the indirect tax regime to a crisp and clean manner by eliminating the difference between ‘goods and service’ and bringing it under the umbrella of ‘supply’. It has opened wide range of opportunities to the professionals of financial and information technology services sector

GST has eliminated cascading effects due to multiple levies by the Central and State Governments. It has subsumed erstwhile taxes like State VAT, Service Tax, Central Excise Duty, Additional Customs Duty and Octroi. It is levied on sale, purchase, transfer, barter, lease or import of goods and/or services.

Several malpractices especially related to input tax credit will be eliminated in GST. The dealers cannot escape from up-to-date book keeping requirements as it is the only way to facilitate timely filing of returns. In addition to these, the use of information technology is at its peak that it demands transparency from the businessmen.

In the past people refrained from indirect tax registration because they do not want themselves under the surveillance of tax authorities. But the growing trend is to take registration as it adds value to the organisation and many industrial buyers would like to deal with registered dealers.

Frequently Asked Questions

What are the payments covered under the TDS mechanism and the rates for deduction of tax at source?

Tax is deductible at source at the rates given in table (infra). If PAN of the deductee is not intimated to the deductor, tax will be deducted at source by virtue of section 206AA either at the rate given in the table or at the rate or rates in force or at the rate of 20 per cent, whichever is higher. Further, under section 94A(5), if payment or credit is made or given to a deductee who is located in a notified jurisdictional area, tax is deductible at the rate given in the table or at the rate of 30 per cent, whichever is higher.