Welcome to AJSH & Co.

Financial/Estate Planning
Tax adviser in India

GST on digital advertising companies

Assessment of impact on digital advertising companies

Present Scenario

  • For services rendered by a digital advertising company, it charges a service tax @15%
  • For input services availed by a company, it claims an input tax credit (“ITC”)
  • However, a digital advertising company is not eligible to claim ITC on any products used in producing digital content or capital goods purchased by it
  • The company file its service tax return on half yearly basis
  • Two returns annually which can be revised within a period of 90 days from date of filing

Goods & Service Tax (“GST”)

Registration : Registration is mandatorily required as threshold exemption is not available to E-commerce operators*

Rate under GST :GST will be charged @18% on all invoices

Input Tax Credit : ITC can be availed on any supply of goods or services or both which are used or intended to be used in the course or furtherance of business

 
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GST-ROll-Out-COnfirmation

GST rollout: Retailers working overtime to be prepared, deny impact on sales

Organised retailers do not expect the Goods and Services Tax (GST) to impact their sales despite general fears that it could disrupt businesses, and hope to be fully ready for the uniform tax regime in the next few weeks. “As GST will be rolled out from July 1, we have to be prepared. It will lead to better compliance and an organised way of doing things,”

 

“We are not anticipating any sales disruptions. Nobody has expressed concerns on that…For retailers, benefits will come as and when manufacturer change the prices, which we, in turn, will pass it on to consumers,” he added. July onwards, large retail companies, including Reliance Retail, Future Group, Trent HyperCity and DMart, among others, are looking at aggressive price reductions.

 

The common objective of all retailers is also that margins should be protected, while ensuring that prices remain under check. “We will reduce prices by 2 to 20 per cent on various consumer products,”

 

GST will create a level-playing field for modern trade,” he added, explaining that the biggest challenge is to see that customers are not unhappy. “I believe tax rates should not be so complex as to create variations that adversely affect consumers,” he said.

 

Most retailers are awaiting more clarity on various issues, including input tax credit and e-way bills. Several retail stores have announced big discounts especially in the consumer electronics segment ahead of the GST rollout, in a bid to to clear inventories and to avoid implementation issues.

Goods and Service Tax

Records you should Maintain under GST

GST Laws in India mandate that all registered persons under GST maintain records and accounts in a specified manner. Every law of Direct and Indirect Tax in our country also mandates that information in a prescribed manner has to be captured and preserved for a certain period of time.  In this article, we look at the list of records to be maintained under GST in detail.

Present Tax System:

  1.  Excise Duty : Under Excise, the general records to be maintained are the RG-1 register (Daily stock account of excisable goods), Form IV register (Register of receipt or issue of raw material), invoice book and job work register.
  2.  Service Tax : Under Service Tax, the suggested records include the bill register, receipt register, debit/credit notes register, CENVAT credit register, etc.
  3.  VAT (Value Added Tax) : Under VAT, the records to be maintained include purchase records, sales records, stock records, VAT account containing details of input and output tax, works contract account, etc

 

Documents to be Maintained (GST)

  • Details of production or manufacture of goods.
  • Details of inward and outward supply of goods or services.
  • Stock of goods.
  • Input tax credit availed.
  • Output tax payable and paid.
  • Any other particulars as may be prescribed.

 

If more than one place of business is specified in the registration certificate, accounts relating to each place of business must be kept at the respective places.

Maintaining books and records in electronic form will be ideal and convenient for accurate and timely compliance under GST.

 

Related Posts:

Goods & Services Tax

Basics that Every One Should Know about GST

How GST Works in India

 

 

 

 

 

GST

Goods & Service Tax

Impact analysis on various sectors

India’s looming the new regime of Goods & Service Tax (“GST”), a modern tax reform which will usher in growth and opportunities for businesses in India. It is a tax trigger, which will lead to business transformation for the industry. It will have a far-reaching impact on business avenues, compelling organizations to realign bottlenecks such as production cost, production time, supply chain, compliance, logistics etc. with changing indirect tax structure.

GST is a value added tax where tax is imposed only on the value added at each stage in the supply chain. It is levied at all points in the supply chain. Credit is paid for acquiring inputs used in making the supply. In India GST is defined as “tax on supply of goods or services other than alcohol for human consumption”. In simple language, GST is a single tax on all goods and services in the entire economy.

GST can make the indirect tax system very efficient and will benefit all stakeholders including manufacturers, sellers, the ultimate consumers and the tax collecting governments apart from giving a substantial boost to GDP growth.

GST will turn India into one common market, leading to greater ease of doing business and big savings in logistics costs from companies across all sectors. GST may not have a uniform impact on all sectors, given their varying taxation structures. Some companies will gain more as the GST rate will be lower than the current tax rates they pay, others will lose as the rate will be higher than the present effective rate.

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Company registration in India

Company registration in India means legally getting the right to do business.In India, registration of company is also known as formation of business or incorporation of company.
Let us see what is this Company thing all about and then move on to Company Registration.

 

What are the documents required to register your startup?

An entity required to be incorporated as a Private Limited Company or a Limited Liability Partnership has to be registered with the Ministry of Corporate Affairs. Now the government has come up with several initiatives where an entity can be incorporated in just 1 day.

 

Private Limited Company

A Pvt. Ltd company allows you to play around with the capital structure, you can also play around with the rights distribution, which isn’t so easy in a limited liability partnership. Hence, investors will ask you to convert from an LLP to a Pvt. Ltd. company.

The Directors of the proposed company must have a Digital Signature Certificate (DSC) to sign the e-forms.
The proposed name of the company should be given along with the main line of business.

 
The directors and the subscribers of the proposed company should have the following:
(a) PAN as nationality proof

(b) Photo

(c) Aadhar/ Driving Licence/ Voter Card/ Passport as identification proof

(d) Utility Bill i.e, electricity bill/ telephone bill/ bank statement etc.

(e) email-id

(f) mobile number
The incorporation documents required are as follows:
(a) Affidavit by the promoters

(b) Declaration in DIR – 2 by the directors

(c) Declaration in INC – 9 by the promoters

(d) Declaration in INC – 8 by a Chartered Accountant/Company Secretary/Lawyer/Cost
Accountant

 

Limited Liability Partnership

A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.

The partners of the proposed LLP must have a Digital Signature Certificate (DSC) to sign the e-forms.
The proposed name of the LLP should be given along with the main line of business.

 
The partners of the proposed LLP should have the following:
(a) PAN as nationality proof

(b) Photo

(c) Aadhar/ Driving Licence/ Voter Card/ Passport/ electricity bill/ telephone bill/ bank statement

(d) email-id

(e) mobile number
For Registered office of the LLP:
(a) Ownership deed (if the property is owned) or

(b) Rent agreement along with latest Rent receipt and P.Tax (if the property is rented) or

(c) NOC from the owner of the property and

(d) Latest Utility Bill in the name of the owner i.e, electricity bill/mobile bill/ telephone
bill/ gas bill.

The LLP agreement should be prepared and executed on the stamp paper.

 

Related : HOW GST WORKS IN INDIA

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How India & Afghanistan can grow together

India remains an integral part of Afghanistan’s steady progress in institutionalizing peace, pluralism, and prosperity. Ties between Afghanistan and India go beyond the traditionally strong relations at the government level. Since time immemorial, the peoples of Afghanistan and India have interacted with each other through trade and commerce, peacefully coexisting on the basis of their shared cultural values and commonalities.

This history has become the foundation of deep mutual trust. Public opinion polls in Afghanistan confirm this, as well as the sentiment Afghans share about feeling at home whenever they visit India.

 

Growing Asia

  • Fastest growing continent in the world with 60% of world’s
    population (4.2 billion)
  •  Two-third of global growth would come from Asia in next few
    years
  •  In 1990, the top five economies were not among Asia. Today,
    Japan, China and India are top 3 economies in the world
  •  Asia’s share is expected to touch 50% of world’s GDP by 2050

 

Why Afghanistan

  • A population of 34 million and increasing
  •  Five year compound annual growth (CAGR) is 5.4%
  •  GNI per capita is US$630
  •  FDI has increased from US$ 230k in 1970 to US$ 169mn in 2015
  •  Exports and imports taken together equals 53% of GDP
  •  Infusion of billions of dollars in international assistance and investments as well as
    remittances from Afghan expats
  •  World Bank expects to provide US$250-300 mn in grants annually to Afghanistan
    through the World Bank Group
  •  One of the mineral-rich countries of the world
    (the country holds US$ 3 trillion in untapped mineral deposits without Uranium )
  •  Low tax rates in Afghanistan
    (Corporate tax rates are 20% with an overall tax burden of 6.5% only of total domestic income)
  •  Improved agricultural production
  •  Formation of democratic government & improved regulatory environment

 

India- Afghanistan relations

  • Bilateral relations between the two countries have always been strong and
    friendly
  •  India’s financial assistance to Afghanistan was 880 crore in 2015-16
  •  In 2016, India has also extended an aid of over UD$2 billion to Afghanistan
    for one of India’s most expensive projects in Afghanistan (Salma dam)
  •  India-Afghanistan bilateral trade stood at US$643 million in 2015-16
  •  Afghanistan sets a target of US$10 billion for bilateral trade and
    investment with India in five years
  •  In February 2017, Indian visa regime has been further liberalised to make
    it even more convenient for Afghan nationals to visit India

 

Our support to Afghanistan

  • Needs in Afghanistan
    • Skilled manpower
    • Professional services for businesses
  •  Strengths to work with India
    • Convenience of working in the same time zone
    • Connectivity time is less than two hours
    • Similar cultural backgrounds

 

Why India can be a strong partner to Afghanistan

  • World’s third largest economy (Would double in size to US$ 4–5 trillion in a decade)
  •  Fastest growing economy in the world (Current: 7% , by 2018: 7.8%)
  •  By 2020, retail market is expected to grow to US$ 1.1 trillion (growing at a high rate of 20%-25% p.a.)
  •  IT-business process management (BPM) sector in India is estimated to expand at a CAGR of 9.5% to US$ 300 billion by 2020
  •  Indian construction equipment industry’s revenues are estimated to reach US$ 22.7 billion by 2020
  •  Total FDI equity inflows touched US$ 35.84 billion (till December 2016)
  •  Under FDI, all sectors other than sectors which are specifically prohibited or under approval route
  •  Taxes on companies has been reduced to 25% (For companies with annual turnover less than 50 Crores)
  •  Low labor costs (Total labor force of nearly 530 million)
  •  Working age group will be more than 64% by 2021 (15-59 years)
  •  Skill set of India has improved over the years with 40% employable candidates. We have 1.5mn engineering pass outs in India every year

 

Related : Doing Business in India

Tax-Return

Efiling of Income Tax Return

What is a income tax return ?

It is a prescribed form through which the particulars of income earned by a person through various sources(like salary, business, professional fees, interest, capital gains, etc.) in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year, called as income tax return or ITR. It is like your report card in school but instead of  marks you have income and taxes.  It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly. Different forms are prescribed for filing of returns for different Status and Nature of income .

 

What is efiling ?

Efiling or electronic filing is submitting your income tax returns online. There are two ways to file your income tax returns. The traditional way is the offline way where you go the Income Tax Department’s office to physically file your returns. The other way is when you efile through the internet. Over the past few years, efiling has become popular because it is easier, doesn’t require prints of documents and can be done for free.

 

What are advantages of e-Filing?

  • Anywhere, Anytime files, 24 x7 x 365 service.
  • Easy, fast,free and secure
  • Faster processing and quicker refunds.
  • Value added services like viewing Form 26AS,  tracking of refunds,email, SMS alerts regarding status of processing and refunds.
  • And now it is also compulsory for most.

 

Is E-filing of Income tax Return compulsory?

  • E-Filing Returns is  compulsory for:
    Individuals earning over Rs 5 lakh a year. They are required to file their tax returns in the electronic format from AY 2013-14 (FY 2012-13) and subsequent assessment years.
  • Individual/HUF, having total Income of Rupees 10 lakhs. It was made mandatory from AY 2012-2013((FY 2011-12) and subsequent assessment years.
  • Individual/HUF /Firm auditable under section 44B of the IT Act, 1961. It was made mandatory for AY 2012-2013 and subsequent assessment years.
  • All Companies

 

Difference between AY and FY

Financial Year is period between 1st April to 31st March. Assessment Year is the next year in which the income is liable to tax.

For example, if your financial year is from 1 April 2017 to 31 March 2018, then it is known as FY 2017-18. The assessment year for income earned during this period would begin after the financial year ends–that is on 1 April 2018 till 31 March 2019.

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AJSH affiliating ACCI Business Conference on Afghanistan in Australia

AJSH & Co LLP affiliating the Australian Afghan Business Council’s 3rd Business Conference on Afghanistan in Australia 2017 co-organized by Afghan Chamber of Commerce & Industries (ACCI) on 26-27 April 2017.

 

Mr. Ankit Jain, the managing partner of AJSH & Co LLP will be sharing his thoughts on how Indo-Afghan can grow together. He will be presenting the facts about how India can support Afghanistan in growing their businesses by analyzing each other’s strengths and weaknesses.

 

The conference will be attended by official delegates and business leaders from Afghanistan and Australia includingMinister of Finance, Australia, Minister of Finance, Afghanistan, Ambassador of Afghanistan to Australia, Ambassador of Australia to Afghanistan, CEO, ACCI, President Afghan Dubai Business Council, CEO Afghan Logistics and Tours, Chairman Afghanistan Affairs (AABC), people from President’s office and economic advisers.

 

For more details, please visit: http://www.australianafghanbc.com.au/

Goods-And-Service-Tax-GST

Basics That Everyone Should Know About GST

With the passage of the GST bill in both the houses of Parliament, its implementation from 1 July 2017 is nearly certain.

India currently has a dual system of taxation of goods and services, which is quite different from dual GST. Taxes on goods are described as “VAT” at both Central and State level. It has adopted value added tax principle with input tax credit mechanism for taxation of goods and services, respectively, with limited cross-levy set-off.

 

GST (Goods and Service Tax)

GST means Goods and Service Tax. It is an indirect tax levied on sale of goods and services. The reformists believe that GST is one of the most awaited law which upon introduced will boost the economic growth in the country. This law if passed by the parliament may come into force from April 2016. As everyone is talking about it now, let’s get into the basics of the proposed law in this article.

 

Does GST apply to you?

Being an indirect tax, it is applicable to businesses, professionals, freelancers and service providers. It does not apply to salaried individuals.

 

Is it easy to implement in India?

Not really. Today states have autonomy in collecting state taxes. They have the feeling of losing their rights! They want liquor, fuel to be out of GST tax system. They are also worried about Central government sharing GST revenue with the states. If India becomes one common market, then the states will have to share their powers of taxing with the union government. (Which means states can’t increase the taxes as and when, as much as they want)

 

What is a “casual taxable person?”

A person who occasionally supplies goods and/or services in a territory where GST is applicable but does not have a fixed place of business in the said state is treated as a casual taxable person. For example, a person who has a place of business in Bangalore gives consulting services in Pune (where he has no place of business), then he would be treated as a casual taxable person in Pune.

 

What are the differences between the UPA’s GST and the NDA’s GST?
Below are the primary differences:

  • Petroleum sector has been kept out of the ambit of GST
  • Liquor for human consumption is exempt however tobacco and tobacco products will fall under GST.
  • There is a 1% tax on top of the GST for inter-state movement of goods and services.

 

What will be the short-term impact of GST?

The GST will fuel inflation for the short term. The GST rate starts at 5% and 18% taxation services such as restaurants, movies etc. are bound to increase prices. Another problem with the GST that many pundits feel is not including liquor and petroleum under GST’s ambit. These are major revenue sources for the government and experts feel this is being done due to a few crony capitalists who need some time to funnel away their black money as the GST promises to widen the tax paying population.

Related : How GST Works in India

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AJSH hosted Adam Global Asia Pacific Regional Conference

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AJSH & Co LLP hosted the Adam Global Asia Pacific Regional Conference in New Delhi, India from March 24-25, 2017. Each year, ADAM Global Regional member firms assemble in a different global metropolis for 2 days to share ideas, identify areas of collaboration and build relationships with fellow member firms.

Adam Global is multidisciplinary network of independent Legal, Accounting and Consulting firms. It is the fastest growing network with more than 130 member firms across the Americas, Europe, Asia Pacific, Africa and the Middle East.

Networking is all about planting relationships. At the recent Adam Global Regional Conference, Mr. Ankit Jain, the managing partner of AJSH & Co LLP took a step forward in leveraging the knowledge to multiply gains and losses. The conference was organized in order to provide with numerous opportunities to build new relationships and strengthen existing ones. The conference started with introduction on “Doing business in India” presented by Mr. Ankit Jain, being the Asia Pacific’s president of Adam Global. He shared the facts that India‘s economy is the emerging one that might prove as the “game changer”. Thereafter, Mr. Sumant Batra shared his thoughts on India Law and Insolvency Code. Later, Alternate Investment Fund, NRI Investments in India, Realty were shared in the presentations by the other members.

The member firms are benefited from such alliances that always provide cross marketing strategies, promotes greater collaboration, cross business opportunities.


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