Apr 022018
 

Due dates for the Month of April 2018
10th
GST
- Details of outward supplies of taxable goods and/or services effected – GST1 for March
– Return for authorities deducting tax at source – GSTR 7 for March
– Details of supplies effected through e-commerce operator and the amount of tax collected –
GSTR 8 for March
13th
GST
– Return for Input Service Distributor – GSTR 6 for March
15th
Provident Fund
- PF Payment for March
ESIC
- ESIC Payment for March
15th
GST
- Details of inward supplies of taxable goods and/or services effected claiming input tax credit – GSTR 2 for March
18th
GST
- Return for compounding taxable person – GSTR 4 for January to March
20th
GST
- Monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax – GSTR 3 for March
– Return for Non-Resident foreign taxable person – GSTR 5 for March
28th
GST
- Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for March.
30th
Profession Tax
- Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Sensys Technologies Pvt. Ltd.
HO: 524, Master Mind1, Royal Palms, Goregaon East, Mumbai – 400 065.
Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata
Visit our BLOG for latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT etc.. Click here to visit Sensys BLOG
Mar 082018
 

Due dates for the Month of March 2018
7th
Income Tax
- TDS Payment for February
10th
GST
- Details of outward supplies of taxable goods and/or services effected – GST1 for February
– Return for authorities deducting tax at source – GSTR 7 for February
– Details of supplies effected through e-commerce operator and the amount of tax collected –
GSTR 8 for February
13th
GST
– Return for Input Service Distributor – GSTR 6 for February
15th
Provident Fund
- PF Payment for February
ESIC
- ESIC Payment for February
Income Tax
- Advance Income Tax – Final Installment for All Assessees
15th
GST
- Details of inward supplies of taxable goods and/or services effected claiming input tax credit – GSTR 2 for February
20th
GST
- Monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax – GSTR 3 for February
– Return for Non-Resident foreign taxable person – GSTR 5 for February
28th
Profession Tax
- Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Sensys Technologies Pvt. Ltd.
HO: 524, Master Mind1, Royal Palms, Goregaon East, Mumbai – 400 065.
Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata
Visit our BLOG for latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT etc.. Click here to visit Sensys BLOG
Feb 202018
 

Under the existing regime,  long term capital gains arising from transfer of  long term capital assets,  being  equity shares of a company or an unit of equity oriented fund or an unit of business trusts , is exempt from income-tax under clause (38) of section 10 of the Act.

However, transactions in such long term capital assets carried out on a recognized stock exchange are liable to securities transaction tax (STT).

Consequently, this regime is inherently biased against manufacturing and has encouraged diversion of investment in financial assets. It has also led to significant erosion in the tax base resulting in revenue loss. The problem has been further compounded by abusive use of tax arbitrage opportunities created by these exemptions.

In order to minimize economic distortions and curb erosion of tax base,   it is proposed to withdraw the exemption under clause (38) of section 10 and to introduce a new section 112A in the Act to provide that long term capital gains arising from transfer of a long term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust shall be taxed at 10 per cent. of such capital gains exceeding one lakh rupees .

This concessional rate of 10 per cent. will be applicable to such long term capital gains, if—

  • in a case where long term capital asset is in the nature of an equity share in a company,
  • Securities transaction tax has been paid on both acquisition and transfer of such capital asset; and
  • in a case where long term capital asset is in the nature of a unit of an equity oriented fund or a unit of a business trust, securities transaction tax has been paid on transfer of such capital asset.

Further, sub-section (4) of the new section 112A empowers the Central Government to specify by notification the nature of acquisitions in respect of which the requirement of payment of securities transaction tax shall not apply in the case of equity share in a company.

Similarly, the requirement of payment of STT at the time of transfer of long term capital asset, being a unit of equity oriented fund or a unit of business trust, shall not apply if the transfer is undertaken on recognized stock exchange located in any International Financial Services Centre( IFSC) and the consideration of such transfer is received or receivable in foreign currency.

Further, the new provision of section 112A also proposes to provide the following:—

i) Benefit of indexation is not available on such capital gains: The long term capital gains will be computed without giving effect to the first and second provisos to section 48, i.e. inflation indexation in respect of cost of acquisitions and cost of improvement, if any, and the benefit of computation of capital gains in foreign currency in the case of a non-resident, will not be allowed.

(ii) The cost of acquisitions in respect of the long term capital asset acquired by the assessee before the 1st day of February, 2018 , shall be deemed to be the higher of –

  1. the actual cost of acquisition of such asset; and
  2. the lower of –
  • the fair market value of such asset; and
  • the full value of consideration received or accruing as a result of the transfer of the capital asset.

iii) “equity oriented fund” has been defined to mean a fund set up under a scheme of a mutual fund specified under clause (23D) of section 10 and,—

a) In a case where the fund invests in the units of another fund which is traded on a recognized stock exchange,

  • A minimum of 90 per cent. of the total proceeds of such funds is invested in the units of such other fund ; and
  • such other fund also invests a minimum of 90 per cent. of its total proceeds in the equity shares of domestic companies listed on recognized stock exchange; and

b) in any other case, a minimum of 65 per cent. of the total proceeds of such fund is invested in the equity shares of domestic companies listed on recognized stock exchange.

(iv) Fair market value has been defined to mean –

  1. in a case where the capital asset is listed on any recognized stock exchange, the highest price of the capital asset quoted on such exchange on the 31st day of January, 2018. However, where there is no trading in such asset on such exchange on the 31st day of January, 2018 , the highest price of such asset on such exchange on a date immediately preceding the 31st day of January, 2018 when such asset was traded on such exchange shall be the fair market value; and
  2. in a case where the capital asset is a unit and is not listed on recognized stock exchange, the net asset value of such asset as on the the 31st day of January, 2018.

(v) No deduction is allowed out of such capital gains: The benefit of deduction under chapter VIA shall be allowed from the gross total income as reduced by such capital gains.

(vi) Rebate of section 87A shall not be allowed out of such incomes: Similarly, the rebate under section 87A shall be allowed from the income tax on the total income as reduced by tax payable on such capital gains.

These amendments will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

Feb 072018
 

Standard deduction on Salary Income

Section 16, inter-alia, provides for certain deduction in computing income chargeable under the head “Salaries”. it is proposed to allow a standard deduction upto Rs 40,000/- or the amount of salary received, whichever is less.

Consequently the present exemption in respect of Transport Allowance (except in case of differently abled persons) and reimbursement of medical expenses is proposed to be withdrawn.

These amendments will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

In view of above finance bill 2018 proposes to amend the relevant sections of income tax as given below:

Para 7 of finance bill 2018

In section 16 of the Income-tax Act, after clause (i) [as omitted by section 6 of the Finance Act, 2005], the following clause shall be inserted with effect from the 1st day of April, 2019, namely:––

“(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;”.

Implication of above amendments:

Financial consequences:

Before this amendment a salaried class employee can enjoy an exemption of traveling allowance and medical expenses which are available with some conditions and subject to actual expenses incurred by employees for aforesaid purposes. Thus, from financial point of view consequences of the above amendments are summarized as under:

Before amendment After amendment New effect
Medical allowance 15000/- Medical allowance NIL Loss 15000/-
Traveling allowance

@ 1600 per month or part of the month

19200/- Traveling allowance NIL Loss 19200/-
Standard deductions NIL Standard deductions 40000/- Gain 40000/-
Net effect Gain 5800/-

From, pure financial prospective the above amendment seems to give a marginal gain in the computation of tax to an employee but the other consequence with flow to employees due to this amendment would have more importance.

Non – financial implications:

Some of the benefits of the same are listed below:-

  1. Now employees need not to have proof actual incurrence of expense for claiming exemption as standard deduction is unconditionally available to all employees.
  2. Now there would not be any requirement of safe keeping of invoices of medicines and travel tickets for availing exemption.
  3. Henceforth, there is no requirement that one should earn his / her income under the head of traveling allowance or medical allowance.
  4. Money out of deduction (i.e Rs. 40,000/-) can be save and invested anywhere to earn more income which is not possible earlier.

So in essence, the above amendment is for good of employees as far as ease of assessment and processing of return is concern and will benefit the small earner of salary as now deduction is available without expense.

The above amendment will be applicable in computing income for the financial year 2018-19 or while computing income of year 2018-19 onwards. It is worth to note here that income of FY 2018-19 will be calculated in next year, i.e., 2019-20.

Feb 022018
 

Due dates for the Month of Feb 2018
7th
Income Tax
- TDS Payment for January
10th
GST
- Details of outward supplies of taxable goods and/or services effected – GST1 for January
– Return for authorities deducting tax at source – GSTR 7 for January
– Details of supplies effected through e-commerce operator and the amount of tax collected –
GSTR 8 for January
13th
GST
– Return for Input Service Distributor – GSTR 6 for January
15th
Providend Fund
- PF Payment for January
ESIC
- ESIC Payment for January
15th
GST
- Details of inward supplies of taxable goods and/or services effected claiming input tax credit – GSTR 2 for January
20th
GST
- Monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax – GSTR 3 for January
– Return for Non-Resident foreign taxable person – GSTR 5 for January
28th
Profession Tax
- Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Sensys Technologies Pvt. Ltd.
HO: 524, Master Mind1, Royal Palms, Goregaon East, Mumbai – 400 065.
Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad | Chennai | Kolkata
Visit our BLOG for latest news and updates related to XBRL, Income Tax, HR & Payroll, PF / ESIC / TDS / PT etc.. Click here to visit Sensys BLOG
Jan 292018
 

Margin base valuation in case of purchase of second hand goods

Chargeability of GST: [Section 9]

There shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both,

  • Except on the supply of alcoholic liquor for human consumption,

On the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

Thus, before liability to pay GST arises two conditions must be satisfied:

  • Transaction under consideration must be a supply under GST law
  • The transaction must be entered by a taxable person.

In general the term supply means – “The total amount of a goods or service that is available to be purchased at any set period of time” Thus, in contrast to sale the term supply does not require actual delivery of goods or services to the purchaser.

Rule 32: Determination of value in respect of certain supplies:

Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods

  • as such or
  • after such minor processing which does not change the nature of the goods and
  • where no input tax credit has been availed on the purchase of such goods,

the value of supply shall be the difference between the selling price and the purchase price and

  • where the value of such supply is negative, it shall be ignored:

Purchase value of goods taken from a defaulting borrower:

  • who is not registered,
  • for the purpose of recovery of a loan or debt

Shall be deemed to be the purchase price of such goods by the defaulting borrower reduced by 5% points for every quarter or part thereof, between the date of purchase and the date of disposal by the person making such repossession.”

Notification No.10/2017-Central Tax (Rate):

Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts:

  • Supplies within the state
  • Of second hand goods
  • received by a registered person, Dealing in buying and selling of second hand goods
  • Supplied by any supplier, who is not registered
  • If he pays the central tax on the value of outward supply of such second hand goods,

from the whole of the central tax leviable thereon.

Conclusion:

  1. Supplies of second hand goods are taxable under GST net
  2. RCM is not applicable in case second hand goods are purchase by registered supplier from unregistered supplier
  3. In case ITC is not claimed at the time of purchase of such goods than tax at the time of outward supply of such goods shall be paid on value addition only, ignoring negative value addition, if any
  4. Special value considerations are applicable in case second hand goods are taken from loan defaulters.
Dec 182017
 

Liability of employer for not deducting PF under Employer Provident Funds and Misc. Provisions Act, 1952

  1. Liability to deduct PF on overtime:

For ascertaining whether to deduct PF on particular component of Basic Wages one has to determine:-

Whether the payment which has been made to a workman / employee in respect the period which does not fall within normal duty hours or within over time hours would be said to be overtime allowance or is a payment of similar nature to fall within the category of similar allowance payable.

Over time allowance as generally understood and defined under factories act 1948 means working in a factory for more than 9 hours in any day or for more than 48 hours in any week, and shall, in respect of overtime work, be entitled to receive wages at the rate of twice his/her ordinary rate of wages. Further, no worker can work more than 10-1/2 hours a day. In essence, worker working more than 48 hours in a week shall be paid overtime with the rate of double wages and further overtime hours can not in any case exceed 24 hours in a week.

The PF is deductible on all emoluments which are earned by an employee while on duty excluding specifically overtime. As mentioned above overtime could only limited within the range of 48 hours in week to 72 hours work in a week. [1 week = 6 days]

Any payment to worker for work more than 72 hours is not overtime and hence PF deduction liability is not applicable on the same.

  1. PF is not liable to be deducted on salary / wages payable to trainees:

In industries it is observed that trainees are deployed within the floor of industry and skilled and developed workmen is again kept on permanent pay roll of the industry. In such cases PF is not deducted on whatever amount is being paid to such trainees if following conditions are met:

  1. Training has been introduced with a view to impart training to persons with specified qualifications.
  2. Minimum qualification and training period has to be mentioned in the training scheme. However, manager may reserve its right to determine the period of training to a particular trainee if they find that there is no proper response from the trainees.
  3. Trainees are being paid a consolidated stipend. This may increase year after year during the period of training.
  4. No other benefit, except for stipulated stipend, shall be paid to such trainees.
  5. Trainees should be recruited for a specified period under the scheme.
  6. There should not be any guarantee for their employment in the company after the completion of their training period.
  7. Training may be terminated at any time without any notice or reason if trainees are found to be medically unfit or unable to accommodate with training environment.

  1. Non-payment of contribution – Recovery can’t be done from director working in the professional capacity:

In case director was not in the position to control financial and managerial aspect of the company, it is wrong to enforce recovery from such director for the default made by the company.

Sep 262017
 

Accounting Entries in case GST paid under Reverse Charge

Features of reverse charge mechanism of payment of tax on certain supply of services under GST:

The bulleted points of the above discussion are as below:

  • Reverse charge is a mode of collection of tax by government and not a different tax.
  • If goods and / or services are purchase from the registered taxable person – reverse charge levy can be effected only when goods and / or services traded are one of the specified items. Till date no such items are specified by central government.
  • Goods and / or services on which tax is payable under reverse charge are not exempted goods and / or services.
  • In case such goods are supplied by registered taxable person tax invoice shall be prepared by such supplier with the mentioned of the words – “TAX IS PAYABLE ON REVERSE CHARGE BASIS”
  • In case goods and / or services are supplied by unregistered person tax invoice will be generated by recipient taxable person under section 31(3)(f).
  • ITC of tax paid under RCM (reverse charge mechanism) will allowed once tax and value of supply is paid.

With the above background the accounting entry that can be passed is given below:

Accounting entry at seller end:

Whether supply is made by registered person or unregistered person –

XYZ party a/c                Dr

To Sale (under RCM) a/c

Accounting entry at purchaser end:

Mode 1 : Purchase made from registered person:

  • Tax will be paid by receiver of goods
  • Tax Invoice shall be prepared by supplier of goods / services
  • ITC will be available on tax paid
  • Payment voucher shall be prepared for every payment made

Accounting entry:

Purchase:

Purchase a/c                  Dr

Provisional ITC of CGST (under RCM)

Provisional ITC of SGST (under RCM)

To ABC Party a/c                 (For material purchase)

To CGST (under RCM)          (For CGST)

To SGST (under RCM)          (For SGST)

Availing ITC after fulfilling conditions:

ITC of CGST                  Dr

ITC of SGST                  Dr

To Provisional ITC of CGST (under RCM)

To Provisional ITC of SGST (under RCM)

Mode 1 : Purchase made from un-registered person:

  • Tax will be paid by receiver of goods
  • Tax Invoice shall be prepared by receiver of goods / services
  • No question of issuance of bill of supply as supply is not of exempted goods
  • ITC will be available on tax paid
  • Payment voucher shall be prepared for every payment made

Accounting entry:

Purchase:

Purchase a/c                  Dr

To ABC Party a/c                       (For material purchase)

 

Issue of tax invoice:

Provisional ITC of CGST (under RCM)

Provisional ITC of SGST (under RCM)

Memorandum sale a/c – crated only for the purpose of creating GST liability

To CGST (under RCM)    (For CGST)

To SGST (under RCM)    (For SGST)

To Memorandum sale a/c – crated only for the purpose of creating GST liability

 

Availing ITC after fulfilling conditions:

ITC of CGST                  Dr

ITC of SCST                   Dr

To Provisional ITC of CGST (under RCM)

To Provisional ITC of SGST (under RCM)

Sep 072017
 

GSTR – 1: Return of Outward supply

Why to file GSTR 1:

The need for filing GSTR 1 arises from section 37 of the CGST act and same is reproduced below:

Every registered person, other than:

  • An Input Service Distributor,
  • A non-resident taxable person and
  • A person paying tax under the provisions of section 10 or
  • A person paying tax under section 51 (Person deducting TDS) or
  • A person paying tax under section (Person collecting TCS) 52,
  • A person mentioned under section 14 of IGST act (supplier of online information and database access or retrieval services).

shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period

  • on or before the 10th day of the month succeeding the said tax period and

such details shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed:

Provided that the registered person shall not be allowed to furnish the details of outward supplies during the period from the 11th day to the 15th day of the month succeeding the tax period:

Provided further that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein. Hence, commissioner has extended the time limit for the months of July and August months

Provided also that any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner

Hence, all taxable suppliers are liable to file GSTR 1 except those mentioned above including those cases where there is no sales in the relevant taxing month.

Meaning of details of outward supplies:

“details of outward supplies” shall include details of:

  1. Invoices,
  2. Debit notes,
  3. Credit notes and
  4. Revised invoices

Issued in relation to outward supplies made during any tax period

Importance of GSTR 1:

Normally every registered person required to furnished / validate following returns:

Return Forms GSTR – 1 GSTR – 1A GSTR – 2 GSTR – 2A GSTR -3
Activity recorded Outward supply Auto Drafted Inward Supply Auto Drafted GST Payment
Outcome GST liability Revise return ITC allowed Reconciled Monthly return
Basis of preparation Sales Invoice issued to recipient / consumer GSTR 2, 4 & 6 Part A, Part B and Part C of FORM GSTR-2A GSTR -1 of the corresponding suppliers from whom purchases are made GSTR 1 and GSTR 2

Thus, every other return except GSTR 1 is auto populated and needs to be validated by taxable registered person. Thus, every care must be made before filing the form as it would directly impact our taxable liability under
GSTR – 3.

When to file GSTR 1 (As extended vide notification no 29/2017):

Forms Notification number For July 2017 For August 2017 From Sep. Onwards
GSTR 1 18/2017 – Central Tax 1st to 10th September Up to 5th October 1st to 10th of next month

Classification of invoices for recording of transaction in GSTR 1:

All issued invoices during the tax period must be classified as given below for correct and complete recording of all transaction in GSTR 3:

Particulars Invoices
Classification of invoices Intra-state supply Inter-state supply Extant of details required
B2B Invoice wise and tax rate wise
Export Invoice x Invoice wise and tax rate wise
B2C large x Invoice value > Rs. 2.5 lacs Invoice wise, tax rate wise and state wise
B2C Invoice value < Rs. 2.5 lacs Consolidated

Modes of filing GSTR 1:

There are two modes of filing GSTR 1 as explained below:

  1. Online mode: The facility of filing GSTR 1 is provided on gst.gov.in online. In case where invoices in a particular month are upto 500 in number this facility can be used. However, numbers of invoices are more than 500 it is batter to prepare return in off line mode.
  2. Off line mode: You can prepare GSTR 1 offline and subsequently same can uploaded on GST portal subsequently. GSTR data can be prepared offline in any of following ways:
    1. Offline utility downloaded from GST portal.
    2. With the help of excel utility
    3. With the help of 3rd party vendor
    4. Through GSP

How to file GSTR 1:

Section Table no Details to be file
B2B 4A4B4C6B

6C

Used for entering taxable outward supplies to registered person.
B2C Large 5A5B Used for entering inter-state taxable outward supplies to unregister dealer having invoice value > Rs 2.5 lacs.
Debit / Credit Note 9A9B 9A – Debit note / Credit note issued to registered dealer.9B – Debit note / credit note issued to unregistered dealer.
Export 6A Details of export supplies.
B2C others 7 Taxable supplies net of debit note and credit notes to unregistered dealer not cover in 5A and 5B.
Nil rated, Exempted and non GST supply 8A8B8C8D Details of Nil rated, Exempted and non GST supply.
Advance received 11A(1)11A(2) Advance received during the tax period.
Adjustment of advance 11B(1)11B(2) Advance received during earlier tax period being adjusted from  supplies in current tax period.
HSN wise summery 12 HSN wise summery
Other information 13 Details of any of the following documents issued:i.        Invoices for outward suppliesii.        Invoices for inward supplies from unregistered personiii.        Revised invoices

iv.        Debit notes

v.        Credit notes

vi.        Receipt voucher

vii.        Payment voucher

viii.        Refund voucher

ix.        Delivery challan for job work

x.        Delivery challan for supply on approval

xi.        Delivery challan in case of liquid gas

xii.        Delivery challan in cases other than by way of supply

 

Sep 012017
 

Registration as Tax Deductor at Source

1. Who needs to register under GST as a TDS ?

TDS stands for Tax Deducted at Source (TDS). All Governments, Government undertakings, Local Authorities and other notified entities making contractual payments in excess of INR 2.5 Lakhs to suppliers need to register as a TDS under GST. In the GST regime, while making such a payment in excess of INR 2.5 Lakhs, the concerned Governments, Government undertakings, Local Authorities and other notified entities needs to deduct 1% under CGST Act and 1% under SGST Act; In case of inter-state transactions, 2% (under IGST Act) of the total payable amount and remit it into the appropriate GST account. Credit of such GST payments will be given to the suppliers.

2. How can register as TDS or TCS?

The Registration Application for Tax Deductor/Tax Collector can be filed by the applicant directly by themselves. In GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same.

Any person who wish to get registered as the Tax Deductor/Tax Collector needs to apply in the form prescribed.

3. Are there any preconditions I must fulfill before registering with GST as a TDS or TCS?

The preconditions are:

1. For Registration as Tax Deductor: Applicant has valid PAN or TAN.

2. For Registration as Tax Collector: Applicant has valid PAN.

3. Applicant must have a valid mobile number.

4. Applicant must have valid E-mail ID.

5. Applicant must have the prescribed documents and information on all mandatory fields as required for registration.

6. Applicant must have a place of business.

7. Applicant must have an authorized signatory with valid details.

4. Do I get registered automatically after submitting the registration application along with the prescribed documents?

No, Your registration application will be processed and approved by the relevant Tax Officer, only then will you be issued the registration certificate and GSTIN.

Registration as Tax Collector at Source

1. Who needs to register under GST as a TCS?

TCS stands for Tax Collected at source. In the GST regime, every e-commerce operator needs to collect 1% under CGST Act and 1% under SGST Act; In case of inter-state transactions, 2% (under IGST Act) on the net values of taxable supplies made through the e-commerce operator.

2. How can register as TDS or TCS?

The Registration Application for Tax Deductor/Tax Collector can be filed by the applicant directly by themselves. In GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same.

Any person who wish to get registered as the Tax Deductor/Tax Collector needs to apply in the form prescribed.

3. Are there any preconditions I must fulfill before registering with GST as a TDS or TCS?

The preconditions are:

1. For Registration as Tax Deductor: Applicant has valid PAN or TAN.

2. For Registration as Tax Collector: Applicant has valid PAN.

3. Applicant must have a valid mobile number.

4. Applicant must have valid E-mail ID.

5. Applicant must have the prescribed documents and information on all mandatory fields as required for registration.

6. Applicant must have a place of business.

7. Applicant must have an authorized signatory with valid details.

4. Do I get registered automatically after submitting the registration application along with the prescribed documents?

No, Your registration application will be processed and approved by the relevant Tax Officer, only then will you be issued the registration certificate and GSTIN.

5. I am an e-commerce operator; registered as a TCS under GST regime. I supply goods to multiple states. Do I need to register in each state?

Yes, You need to register separately in each state and appoint a person in each state/UT who will be liable to pay GST.

Courtesy: https://www.gst.gov.in/