Author: sjadmin

Cashbacks are discounts given against expenses made. These can either be immediate or deferred for after the transaction has been completed. These can be online (UPI, e-wallets, credit/debit cards or apps) or offline. The amount thus received could be eligible for taxation as follows: For example, on a transaction of Rs 1599, you receive cashback of Rs 50, which is deposited into the e-wallet or linked bank account. The sum of all such cashback in a financial year (for individuals) must not exceed Rs 50,000.

This is so because as per Section 56(2) of the Income Tax Act, an amount exceeding Rs 50,000 for individual taxpayers would be subject to gift tax and declared under ‘Income from other sources’ or ‘Profits and gains from business or profession’. However freebies are taxable under ‘Profits and gains from business or profession’ on their market value, so same is not treated as cashback.

RBI has removed charges for payments via NEFT and RTGS and asked banks to pass on the benefits to customers. This means that payments via NEFT and RTGS would become either free or charges would be drastically reduced. This was announced in the Statement on Developmental and Regulatory Policies, which was released today by the central bank as part of its monetary policy review.

The Reserve Bank levies minimum charges on banks for transactions routed through its Real Time Gross Settlement (RTGS) meant for large-value instantaneous fund transfers and the National Electronic Funds Transfer (NEFT) System for other fund transfers. Banks, in turn, levy charges on their customers. In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will be required, in turn, to pass these benefits to their customers. Instructions to banks in this regard will be issued soon.

Overview

TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.

Since last few years ITD has revised the structure of TAN. It is a unique 10 digit alphanumeric code. Accordingly, they have issued TAN in this new format to all existing TAN holders.

To facilitate deductors find their new TAN, ITD has now introduced a search facility in their website (www.incometaxindia.gov.in). Through this facility deductors can search on their name and old TAN to find the new TAN. Deductors are advised to find the new TAN from this site before it is incorporated in their e-TDS return file to avoid any inconvenience at the time of furnishing e-TDS return.

Types of TAN Applications

There are two types of TAN applications:

• Application for issuance of new TAN (Form 49B)

This application form should be used when the deductor has never applied for a TAN or does not have a TAN.

• Form for Change or Correction in TAN data for TAN Allotted

This application form should be used when the deductor has a TAN and wants to make any change or correction in the data.

How to Apply

An applicant will fill Form 49B online or offline and submit the form. If there are any errors, rectify them and re-submit the form. Applicants should go through the instructions and guidelines provided in the application form before filling the form.

Who needs to Apply

Where to get the Physical Application Forms

Applicants may obtain the application forms from TIN-FCs, any other vendors providing such forms or can freely download the same from our website.

Communication

These applications are digitised by NSDL and forwarded to ITD. ITD will issue the TAN which will be intimated to NSDL online. On the basis of this NSDL will issue the TAN letter to the applicant.

Status track

The applicants may track the status of their TAN application using 14 digit unique Acknowledgment Number after three days of application using the status track facility. Alternatively, applicant may call TIN Call Centre on 020 – 2721 8080 to enquire about the status of application. The status of the TAN application can also be tracked by sending an SMS – NSDLTAN to 57575.

Fee

The processing fee for the both the applications (new TAN and change request) is 65 (including Goods and Service Tax).

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•  HSN code is not link with tax Rate till every buddy understand HSN code. And for turn over below 1.5 Cr. No need to mention HSN code in invoice, from 1.5 Cr. – 5 Cr only mention 2 digit of HSN code and above 5 Cr mention only 4 Digit of HSN code.
• For invoice No format and no colour Specified by departments. You can design your own invoice. Only thing some details are mandatory is to mention on Invoice.
• If our supplier register under composite scheme (below turnover of 75 lacs) he could not take credit of GST or he could not pass GST credit. He has to pay only 2% of turn over as GST if he is manufacturer and 1% if He is Traders. And 5% if he is restaurant.
• If our GST input is more then GST output (ie for E rickshaw industries most of items input credit of 28% and output GST is 12%) in that case after every month return files person can apply for refunds (RDF1)  and that refund will be obtain within 60 days  otherwise departments is liable to pay interest on it. and refund application can be done up to 2 years. So worries of Capital block is remove.
• There is anti-profiting Rules. –  Every one is can take modvat credits of Excise , services tax , VAT , octroy , Entry tax on its stock items  and it has to pass to customers. For example I am buying today iron pipe at 62 Rs. Kg plus 5% VAT ( which included 12.5% excise , 2% CST and 3.5% Octroi.) after 1st july supplier can credit of all the tax and he has to reduce its basic price. He could not charge 62 + 18% GST but he has to reduce its price by tax amount and decide new base price if any supplier not doing these we can complain against him and department will put penalty on such suppliers.
• No need of E way bill till next 6 months.
• If we does not received payments in 60 days  from customers then we can claim for GST amount charge on it. so most people worried remove if customers fail to pay us then we lose our Tax amount also. And if customers paid after six months then we can again pay GST which we have taken back as credit.
• All people worried there is 37 Returns in year. And there is no revise return. But its not 100% truths. Every month we have to files our output ( sales or services) we add our invoice day to day base to GST portal. And save it. we can edit  also that invoice. On 10th or before 10th we just have to upload all edited sales invoice. Since we have edited invoice before uploading no need of revise return.  Till 15th you can check all your purchase and verified (no need to files return its only verification) on 20th you just need to update your final return after correction if any.  And if there is any mistake found we can rectified that mistake in next months return.