moneycontrol.com 2018-12-06 23:32:00
The Confederation of All India Traders (CAIT) said it has urged finance minister Arun Jaitley to extend the last date for filing annual goods and services tax (GST) return from December 31, 2018 to March 31,2019. In its communication to the finance minister, CAIT said that the format of filing of annual GST return is not available anywhere including the GST website. In fact, the option itself is not available. "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as an immediate measure, the CAIT has urged to extend the last date of filing annual GST return up to March 31 2019 for the period 2017-18," it said. CAIT also urged that format should be made available in regional languages. It noted that the concept is till unclear to a large number of traders and most are not even aware of the obligation of filing annual GST return. Moreover, they are unaware that annual return is the last opportunity for assessees to rectify their previously filed return with the department for the concerned year.
thehindu.com 2018-12-06 19:51:00
December 07, 2018 01:21 07, 2018 01:21 IST more-in Golden Rock Railway Workshop in Tiruchi ties up with cement factory for disposal of polymeric waste The Southern Railway Workshop, Golden Rock, has adopted a scientific method to dispose tonnes of zero-value non-hazardous polymeric waste accumulated over the years on its sprawling campus in Tiruchi. The 85-year-old workshop entered into an agreement with UltraTech Cement Limited at Ariyalur district last year, paving the way for the safe disposal of non-hazardous waste to the cement unit for use in its kilns as an alternative fuel in what is being seen as a "win-win situation" for both. Huge relief The decision has come as a huge relief to the workshop which, until last year, virtually had no clue as to how to dispose the non-hazardous waste that kept piling over the last two decades, posing a huge environmental and safety hazard. Engaged in POH (periodic overhaul) of 1,200 broad gauge passenger coaches and 120 broad gauge diesel locomotives, the British-built workshop has also become a manufacturing unit, rolling out new container wagons for the Railways and the Container Corporation of India. It produces steam locomotives for the heritage Nilgiri Mountain Railway (NMR) and also overhauls them. Piling materials While ferrous and non-ferrous waste generated in the workshop, spread over 200 acres, were being sold through auction every year, it was the piled up zero-value non-hazardous waste in the form of cushions, artificial leather, seat covers, rubber belts and other rubber products that posed a fire as well as an environmental hazard, said chief workshop manager P.N. Jha. A solution finally emerged last year when the workshop came to know that non-hazardous waste could be disposed of scientifically by way of "co-processing" at cement plants. Negotiations with UltraTech Cement fructified, leading to an agreement between the two to dispose of 5,000 metric tonnes of accumulated zero-value non-hazardous waste, said Mr. Jha. Since January, when the first load of waste was dispatched to the cement unit, around 1,500 metric tonnes of accumulated waste has so far been safely transported to the unit, Mr. Jha said. The remaining accumulated waste would be sent in the coming months. The cement unit utilises the waste after shredding as an alternative fuel in its kilns. The waste in the kilns is burnt at a very high temperature of nearly 1,400 centigrade, which would leave behind no residue, he said. TNPCB nod The workshop has also obtained the clearance from the Tamil Nadu Pollution Control Board for the disposal mechanism. The cement factory for its part had received clearance from the Central Pollution Control Board for co-processing, the official said. With nearly 25% to 30% of accumulated waste being cleared so far, the workshop has been successful in reclaiming nearly 50,000 sq. ft. area where it has currently embarked on a green drive, planting saplings of various species.
statetimes.in 2018-12-06 19:30:00
"Fearing imminent defeat BJP may try to get polls delayed" Urges opposition to unite to take on divisive Govt in New Delhi STATE TIMES NEWS JAMMU: National Conference President Dr Farooq Abdullah on Thursday sought early conduct of elections to Jammu and Kashmir Legislative Assembly, apprehending that the BJP may attempt to get these delayed for the fear of imminent defeat due to its misgovernance and failure in keeping up the promises."Hold elections and the people of Jammu and Kashmir, not New Delhi, will choose the government they want for themselves", Dr Abdullah said while paying homage to Babasaheb Dr B.R Ambedkar at a function held at Sher-e-Kashmir Bhavan here this afternoon. Dr Abdullah said a stable and strong government alone can lead the State to peace and development. He said the alliance on crutches does not suit the State, which is facing numerous challenges and exuded confidence that National Conference will get peoples' massive mandate. In this context, he referred to the landslide victory of National Conference in 1996 that brought about a discernible transformation by building militancy damaged infrastructure, opening of schools, strengthening of health institutions, functioning of the various utility services etc. In 2000, he said his government provided a record 1.50 lakh jobs to educated unemployed. "This all happened because of the strong and stable government", he added. Dr Abdullah complimented Governor Satya Pal Malik for dissolving the Legislative Assembly and ending the five months' era of confusion and suspense with BJP desperately trying to manage support for installing a particular person as Chief Minister. Even the visit of BJP General Secretary Ram Madhav to Srinagar failed to garner support for that person, who had made all the preparations for swearing in ceremony."By dissolving the Assembly, the State had a sigh of relief on the prospect of getting rid of a corrupt lot, who indulged in acts of commission and omission for three and half years", he said, amid huge applause and slogans of early polls. On the overall political scenario across the country, Dr Farooq Abdullah gave a clarion call to the opposition parties across the spectrum to shun their trivial differences and make the Mahagathbandhan stronger to take on the 'divisive government' in New Delhi. He blamed the current dispensation for sowing seeds of hate and intolerance and pushing the country to fragmentation. He said hate politics has proved detrimental to the interests of Dalits and minorities across the country."It is incumbent upon the opposition to unite for the unity of India", he said adding that the nation had no threat from China or Pakistan but from the forces inimical to secularism and inclusive ethos of India. He decried the politics of garnering support in the name of religion, saying neither Lord Rama nor Allah need votes. He said the politics of hate has done immense harm to the country and belittling political families like Nehrus and Gandhis is a cheap political discourse. He said the two families have had a great contribution in building modern India and the role of Pt Jawaharlal Nehru and Indira Gandhi cannot be undermined. "The family has given many sacrifices for the nation", he said, adding that he never nurtured any ill will against Pt Nehru in whose tenure Sher-e-Kashmir had been imprisoned. Without naming the BJP, the National Conference chief lamented over ill-conceived decisions on GST and demonetisation, saying these have choked avenues of employment and growth by adversely affecting industries and related sectors. Even the State like Jammu and Kashmir could not escape from the ill-effects of anti-people policies perused by the Centre. He said the institutions have been destroyed by deploying RSS people in these, thus compromising with their identities. Dr Farooq Abdullah urged Prime Minister Narendra Modi to emulate Atal Behari Vajpayee, who tried to carry along everyone on vital national issues. In this context, he referred to the China visit of the former Prime Minister and his consultations with him about any issue pertaining to Jammu and Kashmir to be raised there. He said he had pitched for opening of Kailash-Mansarovar route via Ladakh, which however did not happen. He hoped that Modi would consider taking up this issue with Beijing. On the hate politics of the BJP, Dr Abdullah assailed UP Chief Minister Aditya Nath for showing least concern over the killing of a police officer in Bulandshahar by a frenzy mob. "Instead of visiting the family, Yogi chose to attend a sports event", he said and also referred to his spar with Owaisis, describing it as cheap politics. Dr Farooq Abdullah reiterated conversion of Line of Control into Line of Peace between India and Pakistan, seeking opening of all the routes for pilgrimage and people to people exchange. Paying rich homage to Babasaheb, Dr Farooq Abdullah said the nation will remain indebted to him for the Constitution, which is acclaimed one of the best across the world. He referred to indignity suffered by Babasaheb and said this did not deter him to contribute towards the nation. He eulogised his role for the weaker sections of society and called for social justice and opportunities to be provided to all. He said Babasaheb worked tirelessly for the deprived like Sher-e-Kashmir Sheikh Mohammad Abdullah did in Jammu and Kashmir. "It is because of the revolutionary Land Reforms Act, not a single farmer has committed suicide in the State, as their ancestors became masters of the holdings overnight", he added. Co-Chairman, National Conference SC Cell, Vijay Lochan also spoke on the occasion and dwelt on the life and sacrifices of Babasaheb Dr B.R Ambedkar. Besides, Provincial President Devender Singh Rana, those who paid floral tributes to Babasaheb Ambedkar included senior National Conference leaders Ajay Kr Sadhotra, Th. Kashmir Singh, Sheikh Bashir Ahmed, Sheikh Abdul Rehman, Dr. Kamal Arora, Ajaz Jan, Qazi Jalal Ud Din, Sagar Chand, Dr. Chaman Lal, Bimla Luthra, Ajaz Jan, Deepender Kour, Master Noor Hussain, T. S Wazir, Vijay Laxami Dutta, Bashir Ahmed Wani, Anil Dhar, Ch Haroon, Dharamveer Singh Jamwal, S.S Bunty, Vipan Pal Sharma, Chander Mohan Sharma, Satwant Kour Dogra, Pardeep Bali, Rashida Begum, Daljeet Sharma, Mohinder Gupta, GH Malik, Nar Singh, Iftkair Choudhary, Ravi Dogra, Rakesh Singh Raka, CL Banal Retd IGP, Keshar Singh Retd ADG, Natha Ram Retd Chief Engineer, Simran Dass, Som Raj Taroch, Subash Chander Azad, Sunil Kumar, Raj Kumar, Des Raj, Amrit Varsha, Rohit Kerni, Rinku Arora, Tanveer Babzada and others. Later, Dr Farooq Abdullah gave away trophies and certificates of excellence to first three winners Hammid Hashmir 1st prize , Eram Shamim 2nd prize, Sajid Haider Malik 3rd prize and the other participants of the seminar on 'The Legacy of Sher-e-Kashmir', held on the 113th Birth Anniversary of the Baba-e-Quom yesterday. They included Faizam Bukhari, Mohit Aryan, Ishtiq Ahmed, Nafeesa Liaqat , Omar Altaf, Sushant Abrol, Bhavishya Chaman, Zalaj Choudhary, Zamir Muslim Quershi, Tejinder Pal Singh and Aman S. Chemma. He also honoured the judges of the seminar.
moneycontrol.com 2018-12-06 19:18:00
Anand Rathi Securities As expected, the RBI maintained status quo on key policy rates at its December 2018 monetary policy meet. It also announced a calibrated 150bp cut in the SLR. The tone of the policy was largely dovish. While the "calibrated tightening" stance of the interest rate policy continues, the RBI remains accommodative regarding liquidity. We expect it to keep rates unchanged in FY19. The backdrop The overwhelming weight of events since the last monetary policy meeting seems to have prompted RBI to maintain status quo on rates for the second successive time. Retail inflation is well below its projected target. The sharp slump in global crude oil prices also minimises the risk of a fuel-price-led spike in inflation. The strengthening of the rupee eases the risk of imported inflation as well. While there are doubts about whether the US Federal Reserve Chairman has actually communicated a dovish stance, the consensus is that tightening in the US will be far more contained than what was expected a few months ago. On the top of this, the real growth rate in the quarter ending September 2018 has been more than a percentage point lower than that in the quarter before. Therefore, it was not a surprise that the RBI held the policy rates at its December monetary policy meeting. RBI forecloses the option of a rate cut As an explicitly inflation-targeting central bank, the clear mandate of the monetary policy is to take necessary measures to keep inflation around 4 percent. Moreover, the RBI is obliged to target retail and not any other form or component of inflation. With the current retail inflation is substantially lower than this target and the RBI's own projection of a further fall in the inflation during the rest of FY19, it is pertinent to question whether the central bank could explore a rate cut in a period when the real interest rate is at a historic high. Unfortunately the RBI has foreclosed this option. While moving from a 'neutral' to a 'calibrated tightening' stance at the last policy meet, the bank explained that the transition means that the 'rate cut' option is off the table. Interestingly, the 'calibrated tightening' phrase, on to its own admission, pertains only to the policy rate and not the liquidity. The latter turned accommodative post-August 2018 on the backdrop of upheavals in the corporate debt market and among the NBFCs. NBFCs may continue to need support; SLR cut negative for bonds The RBI has taken numerous general and NBFC-specific measures to ease the liquidity situation for NBFCs. The outcome has so far been on desired lines. Yet, problems faced by NBFCs would require considerable recasting of balance sheets and would be a long-drawn process. It is to be seen the extent to which the RBI aids this process. The phased statutory liquidity ratio (SLR) cut announced on December 5 would help the banking system with a seriously stretched credit-deposit ratio. This is also in line with the RBI's long-term objective to reduce pre-emption of banks' resources by the government without undermining the quality of banks' balance sheets. Yet, the process would potentially reduce bank holdings of the government by Rs 2 trillion by mid-2020 and may therefore be negative for the bond market. Outlook The RBI is likely to keep the policy interest rate unchanged for the current financial year. We feel that its change in policy stance from accommodative to neutral was ahead of the curve as also the move from neutral to calibrated tightening. As a data-dependent explicitly inflation-targeting central bank, the RBI should not procrastinate on reverting to the easing stance if inflation continues to hold below the target. The author is Chief Economist at Anand Rathi Securities.
thehindu.com 2018-12-06 17:10:00
December 06, 2018 22:22 22:40 IST more-in Format unavailable, say traders The Confederation of All India Traders (CAIT) has written to Finance Minister Arun Jaitley asking him to push the deadline for filing of annual GST returns to March 31, 2019 from December 31, 2018, now. "It is to bring to your kind notice that till today the format of filing of annual GST Return and even option is not available anywhere including on GST website as well," CAIT wrote in the letter. "The annual GST return assumes much significance as it gives last opportunity to assessees to rectify their previous return filed with the department for the concerned year." "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as such, we request your good self to extend the last date of filing annual GST return up to 31 March, 2019 for the period 2017-18," CAIT said. CAIT further said that a large number of traders in the country were not even aware that they had to file an annual return. "While urging for extension of last date, we also request that a widespread national campaign should be launched by the government to make assesses aware about the liability of filing annual GST return and its process," CAIT added.
thehindubusinessline.com 2018-12-06 16:03:00
PTI T+ T- Mumbai, December 6 The Confederation of All India Traders (CAIT) on Thursday said it has urged Finance Minister Arun Jaitley to extend the last date for filing the annual goods and services tax (GST) return from December 31, 2018 to March 31,2019. In its communication to the Finance Minister, CAIT said the format of filing of annual GST return is not available anywhere including the GST Website. "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as an immediate measure, the CAIT has urged to extend the last date of filing annual GST return up to March 31 2019 for the period 2017-18," it said. Published on
thehindubusinessline.com 2018-12-06 15:52:00
UP announces procedure for SGST relief to multiplexes T+ T- New Delhi, December 6 Shishir Sinha Multiplexes such as PVR, INOX and GGN can heave a sigh of relief as the Uttar Pradesh Government has announced detailed procedures for refund mechanism under Goods and Services Tax (GST) for multiplexes in the State. It is the second State after Rajasthan to announce such a mechanism. There are over 8,700 screens (both multiplexes and single screen) in India, out of which nearly 500 are in Uttar Pradesh alone. The basic principle of GST does not promote exemption, but prescribes for deposit of taxes due. However, both the Centre and States can prescribe refund mechanism in lieu of exemption to continue promoting industrial activities in their respective region. Accordingly, beneficiaries will first have to deposit the tax and then they will be given refund. The UP Government, in its Cabinet meeting on November 20, decided to have such a mechanism for the multiplexes/cinema theatre and has come out with details about "the limits and procedures of grant-in-aid given as an incentive to multiplexes/cinema theatres after the GST regime." This will be applicable to both running and under-construction entities. The need for such a policy arose after the entertainment tax was subsumed in the GST. Prior to introduction of GST, the State Government offered incentive in the form of five-year tax exemption to multiplexes. As part of the scheme of exemption, multiplex companies were allowed to retain 100 per cent of the entertainment tax charged in the first year, 75 per cent in the second and third years, and 50 per cent charged in fourth and fifth year of operations, respectively. There was question mark on continuation of such incentive post GST which forced many multiplexes to seek legal recourse for the continuation of the scheme. The Yogi Government then came out with the detailed procedure. Abhishek A Rastogi, partner at Khaitan & Co, who is the arguing counsel for various petitioners, termed this a big step forward towards the promises made to businesses and said that UP has lived up to the expectations. "It is to be seen whether the Central Government also offers similar benefit. However, the quantum of benefit granted is not the same as that promised in the past and hence the dispute to that extent may remain before the courts in case of few multiplexes. The State may consider extension of time to meet the deficit," he said. How reimbursement works According to circular dated December 3, the licence holders for the multiplexes/cinema theatres need to deposit the SGST (State Goods and Services Tax) collected from the viewers in State treasury. Within a month, by the pre-determined procedure and as per the allocated budgeted, the equivalent amount of the SGST collected from the viewers will be transferred in the account of the concerned multiplexes/cinema theatres. For all such units covered under incentives schemes before the application of GST regime and have incentive in the form of grants-in-aid, the amount of SGST deposited by them will be reimbursed as permissible on annual percentage basis. Various multiplex have different dates for the beginning of such incentives which will continue for five years. A senior State Government official said under the new mechanism, effort is to ensure commitment for the period as promised during the pre- GST regime. Earlier, the Rajasthan Government, in its new policy, decided to refund 50 per cent of the State GST collected on tickets to multiplex owners, who were promised exemptions. Published on
thehindubusinessline.com 2018-12-06 13:14:00
It has over 150 hospitals and around 17,000 beds for patients across the country New Delhi, Dec 6 The Employees' State Insurance Corporation (ESIC) has allowed public other than its subscribers to avail medical services at its under-utilised hospitals. The decision was taken during the ESIC's 176th meeting held on December 5 under the chairmanship of Labour Minister Santosh Kumar Gangwar, a labour ministry statement said. The decision will immensely help common people avail quality medical care at low cost and ensure full utilisation of ESIC hospital resources, it added. In the meeting, it was decided to allow non-insured persons to avail medical services at under-utilised ESIC Hospitals after levying user charges at a subsidised rate of Rs 10 for outpatient department (OPD) consultation and at 25 per cent of Central Government Health Services' package rates for in-patients, the statement said. Also, the ESIC will provide medicines on actual rate initially for one year on a pilot basis. The ESIC has over 150 hospitals and around 17,000 beds for patients across the country. Recruitment It has also approved hiring of full-time contractual staff in various departments to meet the shortage of specialist/super-specialist doctors in some of its hospitals. The recruitment to 5,200 posts such as social security officer, insurance medical officer Grade-II, junior engineers, teaching faculty, paramedical & nursing cadre, upper division clerks and stenographers, among others, in the ESIC is under process, it said. Exemption limit enhancement In a major move, the labour ministry has decided to enhance the exemption limit for payment of employees' share of contribution from Rs 137 to Rs 176. This comes in the wake of rise in the national floor-level minimum wages to Rs 176. Among the officials present at the meeting were Labour and Employment Secretary Heeralal Samariya, ESIC Director General Raj Kumar and senior officers of the ministry. Published on
btvi.in 2018-12-06 12:25:00
ESIC allows people other than subscribers to avail OPD services at its hospitals ESIC allows people other than subscribers to avail OPD services at its hospitals File photo: Logo of ESIC is seen in this illustration photo. Dec 06 2018 1 hrs ago New Delhi: The Employees' State Insurance Corporation (ESIC) has allowed public other than its subscribers to avail medical services at its under-utilised hospitals. The decision was taken during the ESIC's 176th meeting held on December 5 under the chairmanship of Labour Minister Santosh Kumar Gangwar, a labour ministry statement said. The decision will immensely help common people avail quality medical care at low cost and ensure full utilisation of ESIC hospital resources, it added. In the meeting, it was decided to allow non-insured persons to avail medical services at under-utilised ESIC Hospitals after levying user charges at a subsidised rate of Rs 10 for outpatient department (OPD) consultation and at 25 per cent of Central Government Health Services' package rates for in-patients, the statement said. Also, the ESIC will provide medicines on actual rate initially for one year on a pilot basis. The ESIC has over 150 hospitals and around 17,000 beds for patients across the country. It has also approved hiring of full-time contractual staff in various departments to meet the shortage of specialist/super-specialist doctors in some of its hospitals. The recruitment to 5,200 posts such as social security officer, insurance medical officer Grade-II, junior engineers, teaching faculty, paramedical & nursing cadre, upper division clerks and stenographers, among others, in the ESIC is under process, it said. In a major move, the labour ministry has decided to enhance the exemption limit for payment of employees' share of contribution from Rs 137 to Rs 176. This comes in the wake of rise in the national floor-level minimum wages to Rs 176. Among the officials present at the meeting were Labour and Employment Secretary Heeralal Samariya, ESIC Director General Raj Kumar and senior officers of the ministry.
statetimes.in 2018-12-06 10:21:00
Tweet 0 Islamabad: The trade between India and Pakistan can go up to USD 37 billion from the current USD 2 billion if the two neighbours tear down artificial barriers like trust deficit and complicated and non-transparent non-tariff measures, according to a World Bank report. The report titled 'Glass Half Full: Promise of Regional Trade in South Asia' was released here on Wednesday. Dawn reported that it says that the current trade between the two countries is much below than full potential. It could only be harnessed if both countries agree to tear down artificial barriers. The bank also estimated Pakistan's potential trade with South Asia at USD 39.7bn against the actual current trade of USD 5.1bn. The report also unpacks four of the critical barriers to effective integration. The four areas are tariff and para-tariff barriers to trade, complicated and non-transparent non-tariff measures, disproportionately high cost of trade, and trust deficit. Talking to a group of journalists on key points of the report at the World Bank office in Islamabad, lead economist and author of the document Sanjay Kathuria said it was his belief that trust promotes trade, and trade fosters trust, interdependency and constituencies for peace. In this context, he added, the opening of the Kartarpur Corridor by governments of Pakistan and India would help minimise trust deficit. He said such steps will boost trust between the two countries. For realising the trade potential between Pakistan and India, he suggested the two countries can start with specific products facilitation in the first phase. Kathuria said Pakistan had least air connectivity with South Asian countries, especially India. Pakistan has only six weekly flights each with India and Afghanistan, 10 each with Sri Lanka and Bangladesh and only one with Nepal, but no flight with the Maldives and Bhutan. Compared to this, India has 147 weekly flights with Sri Lanka, followed by 67 with Bangladesh, 32 with the Maldives, 71 with Nepal, 22 with Afghanistan and 23 with Bhutan. The report recommends ending sensitive lists and para tariffs to enable real progress on the South Asia Free Trade Agreement (SAFTA) and calls for a multi-pronged effort to remove non-tariff barriers, focusing on information flows, procedures, and infrastructure. The report stated that Pakistan's decision of not granting Most Favoured Nation status or non-discriminatory market access to India was also a barrier to trade. The preferential access granted by Pakistan on 82.1% of tariff lines under SAFTA was partially blocked in the case of India because Pakistan maintained a negative list comprising 1,209 items that could not be imported from India, the report noted. Policy-makers may draw lessons from the India-Sri Lanka air service liberalisation experience. Connectivity is a key enabler for robust regional cooperation in South Asia. Kathuria said that reducing policy barriers, such as eliminating the restrictions on trade at the Wagah-Attari border, or aiming for seamless, electronic data interchange at border crossings, will be major steps towards reducing the very high costs of trade between Pakistan and India. He argued that the costs of trade are much higher within South Asia compared to other regions. The average tariff in South Asia is more than double the world average. South Asian countries have greater trade barriers for imports from within the region than from the rest of the world. He said these countries impose high para tariffs, which are extra fees or taxes on top of tariffs. More than one-third of the intraregional trade falls under sensitive lists, which are goods that are not offered concessional tariffs under The World Bank Country Director for Pakistan, Illango Patchamuthu, said Pakistan is sitting on a huge trade potential that remains largely untapped. "A favorable trading regime that reduces the high costs and removes barriers can boost investment opportunities that are critically required for accelerating growth in the country," he said. The World Bank's Director Macroeconomics, Trade and Investment Caroline Freund said Pakistan's frequent use of tariffs to curb imports or protect local firms increases the prices of hundreds of consumer goods, such as eggs, paper and bicycles. They also raise the cost of production for firms, making it difficult for them to integrate in regional and global value chains, she said. Pakistan needs to promote export promotion policies to ensure sustainable growth. On the issue of currency devaluation, she said undervalued currency is an anti-export measure. She suggests exchange rate should be determined by the real market trend. (PTI)
taxguru.in 2018-12-06 07:49:00
Annuity received from annuity policy purchased on maturity of the NPS account. For the employees who receive pension from their ex-employer is fully taxable under the head salaries. So it is not only the active employees whose salaries are taxed under the head Salaries but also the pension receive by ex-employees is also taxed under the same head. Like Salaried employees, the pensioners are also entitled to the benefit of standard deduction available upto forty thousand rupees every year which has been introduced from this year, against the pension received by them. You are entitled to commute certain portion of your pension and receive the present value of such commuted value of pension at the time of your retirement. For government employees and those working with government companies the entire value of commute pension is exempt. However for other employees commuted value of 1/3 of pension is exempt in case the employee receives any gratuity. In case the employee does not receive any gratuity, he can commute pension upto 50% of the pension and claim the same as exempt. Pension received under superannuation policy or employee pension scheme In case your employer had contributed towards superannuation fund or ha purchased superannuation policy for you, the pension received by your from the insurance company is taxable under the head Salary as it is received as a result of your employment. Even for the 1/3 of the commuted portion of pension receivable under the superannuation is fully exempt. Likewise the pension received by you under the EPS based on your contribution towards EPF is fully taxable in your hand. Since this pension is received as a result of your employment, you are entitled to claim standard deduction as discussed above. Family pension Pension received by the dependent of an employee is called family pension and is fully taxable in the hands of the dependent recipient/s. However as the pension is not received due to services rendered by the dependent the same is taxable under the head "Income From Other Source". However the dependent person who receives the pension is entitled to claim a deduction of 1/3 of the pension received subject to a maximum of fifteen thousand rupees against the deduction of forty thousand rupees available to retired employees. Annuity received from insurance company on the annuity policy purchased by you In order to ensure that you receive a certain sum at a fixed period, you can buy an annuity plan from an insurance company which in turn will pay the agreed amount at the agreed interval which is annuity but loosely called pension. The amount of pension received under an annuity plan is fully taxable under the head "income from other Sources." Since this amount does not have any co-relation with any employment, you are not entitled to claim standard deduction against this amount. Annuity received from annuity policy purchased on maturity of the NPS account. The employees who have opted for NPS instead of EPF account have to mandatorily buy an annuity plan from an Indian insurance company for 40% of the accumulated corpus. The pension received by these employee should be taxable under the head Salaries but since the employee can continue to contribute to his NPS account even after he leaves his employment or even when he turns self employed, it is doubtful whether in such situation the annuity received will become taxable under the head Salaries or it should be taxable under the head "Income From other Sources". Likewise even a self employed person can also contribute towards the NPS account and receive pension. Presently the income tax law does not have any clear cut provision as to the head under which the annuity received for annuity policy bough on retirement should be taxed. In my opinion for the salaried the pension should be taxable under the head Salaries and should also be entitled for standard deduction upto Forty thousand rupees. But Since the law is silent on this aspect it is risky to offer it under the head Salaries for claiming the standard deduction. Additionally salaried and self employed both can contribute additional fifty thousands to claim deduction under Section 80 CCD(1B) so the head under which the pension received will become taxable and whether one will be entitled to claim standard deduction is a grey area and clarificatory amendment of the law is needed to clear the clouds. The writer is tax and investment expert. Author Bio Qualification : CA in Job / Business Company : N/A
indiatimes.com 2018-12-06 06:53:00
By Archit Gupta The Central Board of Indirect tax and Customs ( CBIC ) has issued the format of annual returns under the Goods and Service Tax ( GST ). The Taxpayers have to file their first GST annual returns pertaining to the Financial Year 2017-18 by December 31, 2018. The government has introduced different types of annual return keeping in mind the various categories of taxpayers. For instance, GSTR-9 for regular taxpayers and GSTR-9A for composition scheme taxpayers have been issued. All the taxpayers registered under GST except input service distributors, casual taxable persons, non-resident taxable persons and persons liable to deduct tax at source, and are required to file the annual returns. Here are some key points one must keep in mind before filing the annual returns for the FY 2017-18: Reconciliation of the books of accounts and tax invoices are issued during July 2017 to Mar 2018 is of utmost importance; this should match the turnover declared in the audited financial statements. It is important for the figures in the books of accounts and the invoices to match or else the GST paid will be incorrect. Along with the invoices, debit and credit notes shall also be in agreement with books of accounts. Stock transfer between the units/branches of the company should be matched with the books of accounts to avoid any discrepancy in the stock-in-hand balance of the books and that of the GST data. Matching of e-way bill data with the tax invoices issued during the period is also very necessary. The e-way bill data state-wise should be carefully mapped with the invoices to keep track of the goods transported and GST paid thereon. Taxpayers should ensure that all the purchase & other service invoices are accounted for in the books of accounts and input tax credit has been duly availed. Any disparity between the input tax credit claimed and tax paid on purchases will result in an incorrect claim of ITC in GST returns. Once the purchase invoices are in agreement with the books of accounts, the taxpayers should ensure that the purchase data is duly uploaded by the suppliers; this data will be reflected in the GSTR-2A form. Before going forward with filing the annual returns, the taxpayers should reconcile all the monthly or quarterly GST returns with the books of accounts. The taxable, exempted and non-GST turnover should be carefully matched. Any difference should be immediately corrected. Ensure that the invoices on which input tax credit has been claimed should be paid within 180 days to the suppliers. If not, the credit availed on the same will be reversed and the taxpayers will be liable to pay such amount along with the interest and penalty if any. While reconciliation the GST paid by electronic cash or credit ledger, the taxpayers should also account for GST paid under Reverse Charge Mechanism (RCM) on the applicable expenses. Make sure that you follow the tips mentioned above, before the December 31, 2018. The rationale behind the filing of the annual return is to consolidate and declare all the information furnished in the monthly or quarterly GST returns during the year. (The writer is Founder & CEO ClearTax)