All about TDS

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Tax deduction at source mean if any individual or organization paying specified amount to the any concern than the payment maker must have to pay TDS on the transaction . Basically this TAX deduction at source is kind of advance tax because who receives the payment such as rent, professional fee, commission, salary, interest, etc is liable to pay tax on their such income . With the help of the TDS provision government get to know that the earners have already paid the tax on their income and they don’t need to pay again while filling the income tax return. If any person are making any payment which is specified under income tax act then they must have pay TDS. There is no need to pay tds whose books are not required to be audit.

Whereas if the HUFs and individuals paying rent above 50,000 Rs are need to pay TDS at 5% even if they are not liable to audit their books still they have to pay 5% of tds.

Now if you don’t want to be deducted your TDS on bank interest and your income is under the fixed income tax slab rate than you can submit form 15G and 15H to the bank. So that they will not deduct tds on you bank interest afterward you will get the whole amount of the bank interest or if you have any investments and your annual income is under the taxable slab rate than you can submit the investments proof so that your deductor will not deduct tds on that invested amount.

Now suppose if you did not have submitted any investment proof or form 15G and form H to your deductor before the deduction, then there no need to worry about. You can simply get the refund of that deducted TDS if you files you annual income tax return.

After depositing the TDS monthly challan the deductor have to file the TDS return to the government and last date to be file this TDS return is the next month of 7th but if you want to deposit the challan amount for the month of march then the last date will be 30th April.

The TDS return is the of mandatory process after depositing the tds challan. Now there are many types of tds return forms about you need to understand. that which forms is right to opt while filling the return and which is not and this is depend upon the purpose of deduction of TDS which you have made. TDS return must have to be filled quarterly. And while filling the return you should have to keep few things ex: – type of payment, TAN, amount of TDS deducted and the last is pan of the deductee.

These following are the various kinds of forms which we need to opt carefully while filling the quarterly TDS return.

Form 24Q:- TDS on salary

The use of this form is to prepare e TDS return for the tax deducted at salary which comes under section 192 of the INCOME TAX ACT. it contains the information about the salary and deducted TDS. You need to file return quarterly in an year .

Form 26QC:- TDS on rent

This form use to prepare e TDS return for the tax deducted at rent which comes under section 194-IB of the income tax act. it contains the information about the tds amount paid on rent. We have to pay the tds return within the 30 days in which TDS has deducted.

Form26QB:- TDS on sale of properties

This form use to prepare e TDS return for the tax deducted at sale of property which comes under section 194 IA of the income tax act.

Form 27Q:- TDS on all payments to those who are not resident of India except salary

This form use to prepare e TDS return for the tax deducted at income of any non- residents Indian and foreigners who gets income from India. This should be submitted by the deductor which comes under section TDS u/s 200(3) of the income tax act.

All about Invoice furnishing facility

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We all know that every GST registered person have to submit their sale data quarterly or monthly depend upon their turnover and after filling the GSTR-3b should be file monthly in which you have to send the data of you purchase and sale both so that you can pay the tax on your profit or get the ITC from the government. Now government has published a new system into GST as the users are getting message related to this new system that’s why we all need to understand about this to avoid the trouble. Invoice furnishing facility has published for the users who file their GSTR 1 especially for those who submit their GSTR1 quarterly. With the help of this invoice furnishing facility the users can choose to upload their data on monthly basis.

You all must have wondering that what could be the reason to publish this new facility. So the government has a plan to track the entire sale of every registered person. Whose annual turnover is less than 1.5crore . This is the plus point for the every purchaser as when the taxpayer purchases any goods from the small taxpayer during the quarter, the purchasers have to wait till the end of the quarter and after that only the taxpayers can get the input tax credit. But now the taxpayers can get the ITC at the monthly basis. But its still optional the taxpayers whether they want to opt that or not.

We need to keep all the points using the invoice furnishing facility.

  • We can use only two month of the single quarter.
  • If we want to upload the Quarter’s last month invoices then we can upload it while filling the GST return
  • If you have already uploaded the invoice in the prior two months then not required to upload the same in GSTR 1.
  • The invoice value of per month is restricted to upload is 50 lakh.
  • The details of the uploaded invoices will be reflecting in the GSTR-2A, GSTR-2B, GSTR-4A or GSTR-6A of the buyers.
  • You can start using this invoice furnishing facility from 01/01/2021.
  • You need to submit B2B sale invoices of both inter-state and intra-state
  • All the credit and debit note of the B2B invoices of the month.

There are the lots of advantages if you opt the invoice furnishing facility. These followings are the brief information about the entire advantages related to IFF.

  • The buyer can claim the input tax credit at monthly basis if they buy the thing from small tax payers
  • The taxpayer can enhance their business by proving the input tax credit to their buyers.
  • Get the work load easiest by uploading the invoices at the last day.
  • As we you can file the return monthly that’s why you can get the reconciliation at the monthly basis. So that you can ease you work.

ALL ABOUT GST REGISTRATION

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We knows that on 1/7/2017 we have got the chance to know about the new act named by GST (goods and service tax) which was pretty new for the every individual and they all need to know vast information about this act but first of all they all must have to know that who really required to opt the GST in their business, however not only that there are lots of things to know about GST.

If any dealer who are indulge with the any kind of business and they are getting the annual turnover above 20lakhs around the whole India. Then they must have to be registered with GSTN (goods and service tax network) and now once you register yourself under the GSTN you will then you will get the unique number that is GSTIN (goods and service tax identification number ) which is issues by the central government. This GSTIN is the consist of 15 digits of number which will represent you as a registered business person. But first of all we need to apply GST registration than only can avail input tax credit on purchase related to the business and can collect goods and service tax from customers on their sale on the behalf of central and state government. Now let’s follow the steps towards the registration of gst which will lead us to complete the process of gst registration.

Here is the step by step guide on the process of GST registration.

Step 1: go to GST portal (gst.gov.in) then click on services, then click on registration tab and after that select new registration.

Step 2: Now you will get to see part A and to proceed follow the below mentioned steps.

  • Click on new registration radio button.
  • Now you will get a option of (I am a) in which you have to select taxpayer
  • Now select the state in which your business are located
  • Now select the district the state in which your business are located.
  • Enter the name of your business.
  • Enter the legal pan number of your business
  • Now the last is you have to enter the contact number and email address which you want to register on the portal and want to get OTP (one time password)
  • After enter the captcha click on tab of proceed.
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Step 3: now enter the two OTPs which we will receive on mail and the second one on mobile number and click on continue.

New registration otp

Step 4: now after completing the above details you will get the TRN (temporary reference number ) you will receive the TRN on the mail and contact number as well , now you just need to note done number so that you can complete the further details of part B with the help of TRN within the 15 days.

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Step 5: now go to the gst portal and select the new registration tab.

Step 6: select the TRN and enter the TRN and captcha And click on the tab of proceed.

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Step 7: now after using the TRN you will get the otp on the registered email and mobile number enter the same and do proceed.

Step 8: now you will get to see status of application and need to click on the icon of edit.

Step 9: Now here the list of document which you need to have while filling the details of part B as it have 10 section to be fill and complete the process of GST registration.

  • Photographs
  • Proof of the place of business
  • Bank account details
  • Constitution of taxpayer

Step 10: after the filling of all the details go the page of verification. Tick on declaration and submit the application using any of the following g ways.

  • Companies and LLPs must have to submit application using DSC.
  • Using EVC –OTP will be send to the mobile number.
  • Using e-sign – OTP will be send on aadhaar registration number.

Step 11: now you will get the message on successful application and you will receive the ARN (application reference number) on the registered mail and mobile number. And after that you can check the ARN status .

Aadhar Authentication

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Aadhar Authentication / e-KYC for Existing Taxpayers on GST Portal

First we understand,

What is Aadhar Authentication?

Aadhar Authentication is a process in which the Aadhar Number along with authentication details of the Aadhar holder is submitted to the government for verifying its accuracy.

The purpose of Aadhar authentication is to provide a online platform so that the identity of Aadhar holder can be validated anytime anywhere.

If Aadhar is available, then the Authorized Signatory & a person who is proprietor, Managing Partner/Partner of Partnership firm, Karta of HUF can go for aadhar authentication.

But if aadhar is not available, then they can upload following documents for authentication:

  • Aadhar Enrolment number
  • Passport
  • KYC form
  • Voter ID cards & etc

How to do Aadhar authentication / e-KYC on GST portal?

For Existing Taxpayer

When an existing taxpayer would login a pop up will be shown with a Question (Would you like to authenticate Aadhaar of Partner/Promoter and Primary Authorized Signatory) with two options:

1st option will be ‘Yes navigate to my profile’

2nd option will be ‘Remind me later’

If taxpayer select 1st option which is yes navigate to my profile then system will navigate to my profile. Then in my profile a tab Aadhar authentication status has been shown from where link for Aadhar authentication will be sent to the authorized signatory or person as selected by Taxpayer.

On the tab my profile in addition to send Aadhar authentication link & upload e-kyc document option would also be shown to tax payer from where they can upload documents.

If taxpayer select 2nd option which is remind me later then pop will be closed so in this case taxpayer do Aadhar authentication later.

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