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    Question and Answers

    Is it compulsory for a taxpayer to file return by himself?
    No. A registered taxpayer can also get his return filed through a Tax Return Preparer, duly approved by the Central or the State tax administration.
    Goods and Service Tax
    If a return has been filed, how can it be revised if some changes are required to be made?
    In GST since the returns are built from details of individual transactions, there is no requirement for having a revised return. Any need to revise a return may arise due to the need to change a set...Read More
    Goods and Service Tax
    Is an Annual Return and a Final Return one and the same?
    No. Annual Return has to be filed by every registered person paying tax as a normal taxpayer. Final Return has to be filed only by those registered persons who have applied for cancellation of...Read More
    Goods and Service Tax
    Whether the description of each item in the invoice will have to be uploaded?
    No. In actuality, the description won't need to be uploaded. Only the HSN code for the provision of products and the accounting code for the delivery of services must be fed. The minimal number...Read More
    Goods and Service Tax
    Is the scanned copy of invoices to be uploaded along with GSTR-1?
    Invoices is not required to be uploaded. Only certain prescribed fields of information from invoices need to be uploaded.
    Goods and Service Tax
    Can all liabilities be paid with ITC that has been granted provisionally?
    No, the only use for a provisionally allowed ITC is to pay a return's self-assessed output tax.
    Goods and Service Tax
    Can a registered person receive ITC for products or services used in the construction of a structure for commercial use?
    ITC on products or services provided by an individual for the building of real estate other than machinery and plant is not permitted. Plant and machinery only refers to items that are supported by a...Read More
    Goods and Service Tax
    Various factors might cause things to be lost or damaged at times. Can a person claim ITC for these items in full?
    No, a person cannot claim ITC for items that were stolen, lost, destroyed, or written off. Additionally, ITC with regard to products given as presents or free samples is not permitted.  
    Goods and Service Tax
    When goods are sent to someone who is not a taxable person ('bill to'-'ship to' scenarios), who will receive the ITC?
    When the items are given to a third party at the request of the taxpayer, it is assumed that the registered person has received the goods. So, the person on whose order the products are supplied to a...Read More
    Goods and Service Tax
    How would a registered person be eligible to ITC if goods for an invoice are received in lots or installments?
    Only upon receipt of the last lot or installment, the registered person becomes eligible for the credit.
    Goods and Service Tax
    Is credit of all input tax charged on supply of goods or services allowed under GST?
    Subject to further terms and circumstances, a registered person is allowed to claim an input tax credit for purchases of products or services that he uses or intends to use in the course or...Read More
    Goods and Service Tax
    Does input tax include tax (CGST/IGST/SGST) paid on input goods, input services and capital goods?
    Yes, it includes taxes paid on input goods, input services and capital goods. Credit of tax paid on capital goods is permitted to be availed in one installment.  
    Goods and Service Tax
    Can GST paid on reverse charge basis be considered as input tax?
    Yes. The definition of input tax includes the tax payable under the reverse charge.  
    Goods and Service Tax
    Is every e-commerce operator required to collect tax on behalf of actual supplier?
    Yes, every e-commerce operator is required to collect tax in cases where they are receiving payment for the supply in relation to the consideration.  
    Goods and Service Tax
    What is meant by “net value of taxable supplies”?
    The term "net value of taxable supplies" refers to the total amount of taxable supplies of goods or services, or both, made by all registered parties through the e-commerce operator during...Read More
    Goods and Service Tax
    Is it mandatory for e-commerce operator to obtain registration?
    Yes. The benefit of threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.
    Goods and Service Tax
    What is a CIN and what is its relevance?
    Challan Identification Number is referred to as CIN. It is a 17-digit number made up of a 3-digit bank code and a 14-digit CPIN. When a payment is actually received by one of these authorised banks...Read More
    Goods and Service Tax
    What is a CPIN?
    CPIN is an acronym for the Common Portal Identification Number (CPIN) provided at the point the challan was generated. The challan's identification number is a 14-digit unique number. As...Read More
    Goods and Service Tax
    Is there a validity period of challan?
    Yes, a challan will remain in effect for fifteen days after it is generated before being deleted from the system. The tax payer can, however, produce a new challan whenever he likes.
    Goods and Service Tax
    Can a challan generated online be modified?
    No. The tax payer can save the challan for further updation but cannot modify the challan after generation of CPIN.
    Goods and Service Tax
    Can a tax payer generate challan in multiple sittings?
    Yes, a taxpayer may begin filling out the challan form in part and then temporarily "save" it to finish it later. Prior to finalisation, a saved challan can be "modified." The tax...Read More
    Goods and Service Tax
    What is an ITC Ledger?
    The ITC Ledger will record Input Tax Credit as self-assessed in monthly returns. Only taxes, not other amounts like interest, penalties, or fees, can be paid with the credit in this ledger.
    Goods and Service Tax
    What is a Cash Ledger?
    All cash deposits and TDS/TCS made on the taxpayer's behalf are recorded in the cash ledger. Real-time updates will be made to the information. You can use this ledger to make any payment on...Read More
    Goods and Service Tax
    What is a tax liability register?
    The overall tax due of a taxpayer for a given month will be shown in the Tax Liability Register (after netting).
    Goods and Service Tax
    What are E-Ledgers?
    The statements of cash and input tax credit for each registered taxpayer are known as electronic ledgers, or E-Ledgers. Each taxpayer is also have an electronic tax liability register. 
    Goods and Service Tax
    What happens if the taxable person files the return but does not make payment of tax?
    The return is not regarded as a proper return in such circumstances. Only the valid return will be taken into account when granting the receiver an input tax credit (ITC).
    Goods and Service Tax
    Are self-supplies taxable under GST?
    Consignment sales, branch transfers, and other interstate self-supplies including stock transfers are all subject to the GST even though they don't always need payment of money in exchange.
    Goods and Service Tax
    What is the taxable event under GST?
    The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business.
    Goods and Service Tax
    Will there be any communication regarding the disposal of the application?
    The GST common portal is required to notify the applicant through email and SMS if his registration request was approved or denied. At this point, the applicant would be informed of the...Read More
    Goods and Service Tax
    What will be the time limit for the decision on the on line registration application?
    The State or Central Authorities shall approve or issue SCN (in case of any deficiencies or any further clarification required by proper officer) within 7 working days if they opt for Aadhar...Read More
    Goods and Service Tax
    Is there any facility for digital signature in the GSTN registration?
    The alternative for tax payers to sign applications with certified digital signatures has been be provided. The application or other submissions would be able to be electronically signed using either...Read More
    Goods and Service Tax
    Whether the Registration granted to any person is permanent?
    Yes, the registration certificate is permanent once issued until it is given up, revoked, suspended, or cancelled.
    Goods and Service Tax
    If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?
     No. Each person who is required to obtain a registration must register separately for each State in which he conducts business and is responsible for paying GST.
    Goods and Service Tax
    What will be the effective date of registration?
    The effective date of registration shall be the date on which the person became subject to registration in cases where the application for registration has been made within thirty days of that...Read More
    Goods and Service Tax
    Can someone who has not registered for GST still claim ITC and collect tax?
    No, a person who has not registered for GST is unable to collect GST from customers or to claim any input tax credits for GST that he has already paid.
    Goods and Service Tax
    Can composition tax be collected from customers?
    No, the registered person under composition scheme is not permitted to collect tax.
    Goods and Service Tax
    Can the customer who buys from a registered person who is under the composition scheme claim composition tax as input tax credit?
    No, because a composition scheme supplier cannot issue a tax invoice, a customer who purchases goods from a registered person under the composition scheme is not eligible for composition input tax...Read More
    Goods and Service Tax
    Can a person who is registered under the composition scheme claim an input tax credit?
    No, registered person under composition scheme is not eligible to claim input tax credit.
    Goods and Service Tax
    What will be the implications in case of receipt of supply from unregistered persons?
    If a registered person receives specified supply from an unregistered person, the registered person must pay tax under the reverse charge mechanism.
    Goods and Service Tax
    Is the reverse charge mechanism applicable only to services?
     No, reverse charge applies to supplies of both goods and services.  
    Goods and Service Tax
    What is meant by Reverse Charge?
    It means that the recipient of such goods and services pays the tax liability rather than the supplier of such goods and services. It is applicable on supply of Goods and Services as specified.
    Goods and Service Tax
    What is meant by Reverse Charge?
    It means that the recipient of such goods and services pays the tax liability rather than the supplier of such goods and services. It is applicable on supply of Goods and Services as specified.
    Goods and Service Tax
    How will Exports be treated under GST?
    Exports will be taken into account as zero-rated supplies. No tax will be charged on exports of goods or services; however, an input tax credit will be available and will be refunded to exporters....Read More
    Goods and Service Tax
    Which goods/sectors are out of the purview of GST?
    Alcohol and certain petroleum products, such as petroleum crude, high speed diesel, motor spirit, aviation turbine fuel, and natural gas, are out of scope from GST. GST on Petroleum Product shall...Read More
    Goods and Service Tax
    Which existing taxes are proposed to be absorbed by GST?
    The central taxes subsumed under CGST include: Central Excise duty Additional Excise duties Excise Duty levied under the Medicinal and Toiletries Preparation...Read More
    Goods and Service Tax
    What is the Goods and Services Tax (GST)?
    It is a destination based tax on consumption of goods and services. It is proposed that it be levied at all stages, from manufacturing to final consumption, with setoff of credit of taxes paid at...Read More
    Goods and Service Tax
    Is Section 80CCD(1B) applicable to investments made by a spouse in the Atal Pension Yojna (APY)?
    Investments made in APY are tax deductible under Section 80CCD (1B) and can be considered similarly to NPS investments. As a result, APY can claim the deduction under Section 80CCD (1B). An...Read More
    Income Tax-Personal
    What distinguishes the NPS exemption from income tax under section 80CCD(1B) from the NPS exemption under section 80C?
    Up to 1,50,000 rupees may be deducted from NPS under Section 80C, and an additional 50,000 rupees may be deducted by Section 80CCD(1B).
    Income Tax-Personal
    Do 80CCC and 80CCD fall under 80C or are they separate tax incentives for investments? Are they above the 80C limit of Rs. 1,50,000?
    A deduction under section 80C, section 80CCC, and section 80CCD(1) may be combined; however, as per 80CCE, the total deduction under all three sections cannot exceed INR 1,50,000.
    Income Tax-Personal
    Can I deduct my SIPs from my taxes under Section 80C?
    Section 80C applies to ELSS SIP investments, however, it does not apply to SIPs for other mutual funds.
    Income Tax-Personal
    Does investment made through NPS fall under section 80 C?
    Yes, Section 80C does apply to investments in NPS.  
    Income Tax-Personal
    Does the Provident Fund qualify for a tax exemption under section 80C?
    The provident fund does fall under section 80C. Recognized provident fund and unrecognized provident fund are the two types of PF. An employee may claim a deduction for the money that he, not the...Read More
    Income Tax-Personal
    Does the tax deduction under Section 80 C apply to recurring deposits?
    The recurring deposit is not covered by section 80C but the five-year fixed deposit is. Other investments covered by section 80C include principal repayment of house loan, tuition fee, ELSS, LIC, etc.
    Income Tax-Personal
    Is it necessary to verify the original return in order to file a revised return?
    No, you are not required to check the original return before filing the new one. If the updated return is submitted and verified, there is no need to check the initial return. Only the updated return...Read More
    Income Tax-Personal
    Being a non-resident, Without a mobile phone number in India, how can I register on the e-filing portal?
    In order to register for an account on the Income Tax Department's e-filing portal, a mobile number and email address are required fields. A new user must provide the One-Time Password (OTP) sent...Read More
    Income Tax-Personal
    When is an obligation to non-residents to submit a tax return of income required?
    A non-resident must file an income tax return in accordance with the rules that apply to the comparable resident assessee if they have income that is taxable in India. But let's say a company is...Read More
    Income Tax-Personal
    Can the Aadhaar number be used as a PAN Number login procedure for incometax.gov.in?
    Yes, Every person who has been assigned a PAN and is qualified to receive an Aadhaar number must inform the Income-tax Department of his Aadhaar number. The Income-tax Act permits the...Read More
    Income Tax-Personal
    What formula is used to determine long-term capital gains?
    The full value of the consideration received upon transferring the long-term capital asset will be subtracted from the cost of the long term capital asset after considering indexation to determine...Read More
    Income Tax-Personal
    If a partner in a partnership firm retires, are there any special provisions for loss carryover in that case?
    In event of a change to the constitution of a partnership carrying to the death or retirement of a partner, carry-infection 78 contains provisions relating to carry forward and set off of a loss (...Read More
    Income Tax-Personal
    Can a loss be carried forward by a reconstituted corporation in the event of a business constitution change?
     In most cases, the person who suffers a loss merely has the right to carry it forward to be corrected in the next year (s). However, the reconstituted corporation is eligible to carry forward...Read More
    Income Tax-Personal
    What are the rules outlined in the Income Tax Law regarding the set off of unabsorbed depreciation, unused capital expenditures for scientific research, and unused capital expenditures to encourage family planning among employees?
    The first thing that is subtracted from the income subject to tax under the heading "Profits and gains of business or profession" is depreciation. The unabsorbed component must be added to...Read More
    Income Tax-Personal
    What guidelines have been established by the Income Tax Law regarding the carry forward and offset of capital losses?
    Unadjusted capital losses can be carried forward to the following year if losses under the "Capital Gain during the year in the same heading cannot be adjusted in the same year. The...Read More
    Income Tax-Personal
    What provisions of the Income Tax Law are made regarding the carry forward and offset of losses on house property?
    Unadjusted loss may be carried forward to the following year if loss cannot be properly adjusted in the year in which such loss is incurred. In successive years, only income subject to taxation...Read More
    Income Tax-Personal
    What sections of the Income Tax Act govern the carry forward and offset of losses from the speculative business?
    If a loss from a small business can't be adjusted in the year it occurs, the unadjusted loss might be carried forward to be corrected in the next year. Such losses may be mitigated in the next...Read More
    Income Tax-Personal
    Can the taxpayer carry forward the partially adjusted loss for adjustment in the following year if the income of the year in which the loss is incurred is insufficient?
    Many times, even after intra- and inter-head adjustments, the loss might still not be taken into account. Such an unadjusted loss may be carried forward to the following year and offset by the income...Read More
    Income Tax-Personal
    What limitations must be taken into consideration when adjusting a loss across sources?
    Before implementing intra-head modifications that result in loss, the following limitations should be kept in mind: • Any income changes resulting from speculative operations cannot be offset...Read More
    Income Tax-Personal
    What does the term "inter-source adjustment" mean?
    If a taxpayer has a loss from any source falling under a specific head of income in any given year, he or she is permitted to offset that loss against revenue from any other source falling under the...Read More
    Income Tax-Personal
    Can a loss from an exempt source be offset by any other taxable income if the source's revenue is exempt?
    If a source code's income is tax-exempt, losses from that source can't be offset against any other income that is subject to taxation. For eg .If a taxpayer experiences a loss from...Read More
    Income Tax-Personal
    What exactly is Form 12BB?
    Form No. 12BB must be sent by an employee to his employer in order to estimate his income or calculate the tax deduction at source. In order to estimate his income or determine the tax deduction...Read More
    Income Tax-Personal
    What is the House Rent Allowance's (HRA) taxability?
    At least one of the following is exempt (not taxable or subtracted) from the total HRA received. (A) Rent paid less 10% of (BP+DA) B(i)) 40% of the (BP+DA) for Non Metro cities B(ii) 50% of...Read More
    Income Tax-Personal
    What tax treatment does an employer's ex-gratia have?
     If a person or his heir gets ex-gratia from the Central Government, a State Government, a Local Authority, or a Public Sector Undertaking as a result of personal injury or death while...Read More
    Income Tax-Personal
    Is the cashing of a leave of absence taxable as salary?
    If received while in service, it is taxed. The Government employee is exempt from paying taxes on any leave encashment they earned at retirement. In the hands of non-government employees, leave...Read More
    Income Tax-Personal
    If I receive my pension from a bank, who the bank or my previous employer will send me a Form-16 or pension statement?
    Government employees are not required to pay taxes on their gratuities and pension fund receipts. Gratuity is exempt in the hands of non-government employees up to the limitations set forth in this...Read More
    Income Tax-Personal
    My Company reimburses me for all of my shopping and childcare costs. Are these going to count as my income?
    Yes, these have the status of perquisites and should be evaluated in accordance with the guidelines established in this regard.
    Income Tax-Personal
    What are allowances?
    In general, there are three categories of allowances under the Income-tax Act: taxable allowances, fully exempt allowances, and partially exempted allowances. a) Perquisites are extraneous...Read More
    Income Tax-Personal
    What is meant by salary income?
    The term "salary" is defined under Section 17 of the Income-tax Act. Without getting into the formal term, however, generally speaking, anything that an employee receives from his employer...Read More
    Income Tax-Personal
    What is TDS certificate?
    TDS certificate is issued by the deductor to the deductee.         Form 16: It is issued by the employer to the employee, it indicates details of tax...Read More
    Income Tax-Personal
    What is the late filing fee for TDS return?
     As per the section 234E, the deductor is liable to pay fee of Rs.200 per day until return is filed. Penalty should not exceed the amount of TDS.
    Income Tax-Personal
    How is interest calculated on late payment of TDS?
     When TDS is deducted- 1% per month or part thereof, for the period from the date on which TDS is        deductible/collectible to the date on which TDS/TCS is actually...Read More
    Income Tax-Personal
    What are the due dates for filing of TDS return?
    Quarter Due Dates 1st April to 30th June 31st July of Financial year 1st Jul to 30th Sep 31st...Read More
    Income Tax-Personal
    When TDS is to be deposited?
    TDS to be deposited on or before 7th of the following month.  
    Income Tax-Personal
    When TDS is to be deducted?
    TDS to be deducted either at the time of credit to the deductee account or at the time of payment whichever is earlier.  
    Income Tax-Personal
    What is TAN?
    TAN stands for the Tax Deduction Account Number. TAN is required to be obtained by all persons who are responsible for deducting or collecting of tax. It is a 10 digit alpha numeric number allotted...Read More
    Income Tax-Personal
    What is TAN?
    TAN stands for the Tax Deduction Account Number. TAN is required to be obtained by all persons who are responsible for deducting or collecting of tax. It is a 10 digit alpha numeric number allotted...Read More
    Income Tax-Personal
    How can one Revise Income Tax Return?
    A return can be revised u/s 139(5) before processing by the department or before the expiry of the relevant assessment year whichever is earlier. While uploading original return if...Read More
    Income Tax-Personal
    How to E-Verify Income tax Return?
    Various modes are prescribed for validating income tax returns through electronic verification code (EVC): Through Aadhaar Number OTP Generation of EVC Through Net...Read More
    Income Tax-Personal
    Which ITR Form to fill?
    Selection of ITR form depends on the nature of Income:   ITR-1 For Individuals (Resident) having Income from Salaries, one house property, other sources...Read More
    Income Tax-Personal
    What is a deferred tax liability?
    The tax liability that a company owes and does not pay at the current point, but is responsible for paying it at some point in the near future is termed deferred tax liability. It is a balance sheet...Read More
    Income Tax-Personal
    What is a deferred tax asset?
    When a firm pays tax early or has paid excess of tax and needs to get some money back from the tax authorities is termed as a deferred tax asset. The term is recorded in the balance sheet and is also...Read More
    Income Tax-Personal
    What do you mean by Capital Gain?
    The profit that is earned by selling an asset means capital gain. When the asset is being sold the income or the gain that arises is the difference between the selling price and the actual price in...Read More
    Income Tax-Personal
    How to decide the residential status of profits or income taxpayers?
    The residential status of an individual is categorized as Resident and Non-Resident. An individual is said to be a resident of India in any previous year if he satisfies any one of the basic...Read More
    Income Tax-Personal
    What is Tax evasion ,Tax avoidance and Tax planning ?
    Tax evasion means a method of evading tax liability by dishonest means like suppression, conscious violation of rules, inflation of expenses etc. Tax evasion involves use of unfair means while tax...Read More
    Income Tax-Personal
    What is Gross Total Income?
    Gross total income is the aggregate of income under all the five heads of income after adjusting the set-off & carry forward of losses. Deductions under chapter VIA is provided from GTI, to...Read More
    Income Tax-Personal
    What is exempt income and taxable income?
    An exempt income is not charged to tax, i.e., Income-tax Law specifically grants exemption from tax to such income. Incomes which are chargeable to tax are called as taxable incomes.
    Income Tax-Personal
    What is tax on regular assessment and how is it paid?
    Under the Income-tax Act, every person has the responsibility to correctly compute and pay his due taxes. Where the Department finds that there has been understatement of income and resultant tax...Read More
    Income Tax-Personal
    Who is not liable to pay advance tax?
    A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.
    Income Tax-Personal
    When Liability for payment of advance tax arises and how it’s calculated and paid?
    Under section 208, obligation to pay advance tax arises in every case where the estimated tax liability is Rs.10000 or more. ??Advance tax is to be paid in instalments as given...Read More
    Income Tax-Personal
    How does the government collect Income tax?
    Taxes are collected by the Government through three means: Voluntary payment by taxpayers through advance tax and Self Assessment tax Taxes deducted at source (TDS) from the income...Read More
    Income Tax-Personal
    Who is liable to pay income tax?
    Income-tax is to be paid by every person. The term 'person' as defined under the Income-tax Act under section 2(3) covers in its ambit natural as well as artificial persons. The...Read More
    Income Tax-Personal
    What is the period for which a person’s income is taken into account for the purpose of income tax?
    Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1st April and ending on 31st March of next calendar year. The Income-tax...Read More
    Income Tax-Personal
    What is direct tax and indirect tax?
    Direct tax on which incidence and impact fall on the same person, such as Income Tax. Indirect tax on which incidence and impact fall on two different persons, such as GST.  
    Income Tax-Personal
    How is the Income-tax calculated?
    Income Tax is calculated on the basis of the total income of an individual related to salaries, profits of businesses, capital gains, house property, and other sources. The income tax is calculated...Read More
    Income Tax-Personal
    What is Income tax?
    Income tax is a direct tax that a government levies on the income of its citizens. The Income Tax Act, 1961, mandates that the central government collect this tax.
    Income Tax-Personal
    What are the main post-registration reporting requirements for companies in India?
    The post registration reporting requirements for companies are set out as under: Filing of form INC - 20A (Commencement of Business Certificate) - Within 180 days of issuance of Certificate of...Read More
    Corporate Law
    What are the most common types of companies in India?
    Following are the most common types of companies: a. A Private Limited Company under the Companies Act, 2013 which can be incorporated with no requirement of minimum capital and 2directors b. A...Read More
    Corporate Law
    Are there any controlling factors or restrictions on foreign companies in India?
    Indian subsidiaries (Foreign Companies) are governed by the regulations framed under following laws: a. Companies Act, 2013 or Companies Act, 1956 (if applicable); b. The Foreign Exchange...Read More
    Corporate Law
     What are the key laws and regulations that govern company law in India?
    Following are the governing laws for the Companies registered in India: a. The Companies Act, 2013 and Rules made there under for unlisted companies such as private companies, foreign companies,...Read More
    Corporate Law
    What is the requirement of directors under Companies Law?
    The Companies Act, 2013 provides for the following categories of the directors: a. Executive director (including managing director or whole time director) b. Non-executive director and c....Read More
    Corporate Law
    In case of an overseas subscriber and director, are the documents required to be notarised and apostilled for incorporation of a company?
    The attestation requirements depend on the country in which registered office/residence of the overseas subscriber/director is situated. The documents are required to be attested as follows: 1....Read More
    Corporate Law
    Can NRIs or foreign national or foreign entities register a company in India?
    NRIs or foreign nationals can register a company and make investments in India subject to the Foreign Direct Investment Policy and Guidelines issued by the RBI. The only condition as per...Read More
    Corporate Law
    How do I check the availability of names for my company?
    Company name approval and allotment process in India is administered by the Ministry of Corporate Affairs (MCA). Name availability can be checked through MCA website i.e www. MCA.gov.in< MCA...Read More
    Corporate Law
    How much Capital is required for Incorporating a Private Limited Company?
    There has not been prescribed any minimum Capital requirement for incorporating a private limited company. One may even start a company with a paid up capital as low as Rs. 500/-. Although upto Rs....Read More
    Corporate Law
    Is a Private Limited Company Suitable for making FDI in India?
    Private Limited Company have always been very popular form of business entity amongst foreign investors for making the direct foreign investment (subject to FDI Policy and Guidelines) in any country,...Read More
    Corporate Law
    Can a Private Limited Company be started at a Residential Address?
    While incorporating a Private Limited Company it is mandatory to provide the proof of Registered Office of the Company. The registered office address need not necessarily be commercial address to...Read More
    Corporate Law
    What are the minimum requirements to register a private limited company?
    There should be minimum of 2 Members who shall be subscribers to Memorandum of Association of the Company and there should be at least 2 Directors in the company, out of which one should be Indian...Read More
    Corporate Law
    How many maximum directors can a Private Limited Company have?
    As per Companies Act, 2013, A Private Company may appoint maximum of 15 Directors on the Board of the Company subject to the approval of member in the General Meeting. A Company can appoint more than...Read More
    Corporate Law
    Whether it is mandatory to take in-principle approval of the regulatory authority?
    It is mandatory to attach the approval of the regulatory Authority at the time of filling of incorporation or change of name of the company where the object of the Company is of Insurance agent/...Read More
    Corporate Law
    What is the Procedure to Register a Private Limited Company in India?
    Thare are 5 major steps in registering a Private Limited Company: 1. Name Application in Spice+ Part A. 2. Procurement of Digital Signature Certificates of all the Directors and...Read More
    Corporate Law
    What are the compliances of a Private Limited Company?
    An organization is expected to keep up with specific compliances after its incorporation, like, a statutory Auditor should be appointed within 30 days of incorporation along with the mandatorily...Read More
    Corporate Law
    Define the term Composite Supply under CGST/SGST/UTGST Act.
    Composite Supply is defined as supply comprising of two or more taxable goods and/or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in...Read More
    Goods and Service Tax
    Define the term Mixed Supply under CGST/SGST/UTGST Act.
    Mixed Supply is defined as supply of two or more goods/services or any combination thereof, made in conjunction with each other by a taxable person for a single price, where such supply does not...Read More
    Goods and Service Tax
    Define the term “Time of Supply”.
    Time of Supply can be defined as the point at which the liability to charge GST arises. It indicates a time at which a particular supply of goods and/or services is deemed to be made. The acts and...Read More
    Goods and Service Tax
    What is the prescribed time limit to issue invoice in case of supply of services as per section 31 of CGST/SGST Act?
    As per section 31 of CGST/SGST Act, the taxpayer shall, before or after the provision of service, but within a period of 30 days from the date of supply of service, issue a tax invoice containing all...Read More
    Goods and Service Tax
    What is the prescribed time limit to issue invoice in case of continuous supply of goods as per section 31 of CGST/SGST Act?
    Continuous supply of goods means supply wherein a supplier provides goods to the recipient on a continuous or recurring basis, under a contract. If successive statement of accounts or successive...Read More
    Goods and Service Tax
    Define the terms “Input Tax” and “Input Tax Credit”.
    Input Tax means the Integrated Tax (IGST), Central Tax (CGST), State Tax (SGST), and Union Territory Tax (UTGST) charged on supply of goods and/or services made to a registered person. Taxes...Read More
    Goods and Service Tax
    Can a recipient avail Input Tax Credit without payment of consideration for the goods & services received?
    Yes, the recipient of goods and/or services can avail input tax credit on such supply even if consideration is not paid. However, the recipient is required to make the payment along with tax amount...Read More
    Goods and Service Tax
    What happens if the recipient fails to discharge the consideration within 180 days of invoice date? Will he be eligible to reclaim the input tax credit after payment of consideration?
    If the recipient of goods or service or both fails to make payment of consideration within 180 days of invoice date, he shall be required to add the Input Tax Credit (availed against such invoice) to...Read More
    Goods and Service Tax
    What is Goods and Services Tax and how is it levied?
    Goods and Services Tax (GST) is a destination-based tax levied on consumption of Goods and Services. As per the applicable GST laws and rules, GST is meant to be levied at every stage of the...Read More
    Goods and Service Tax
    GST is often defined as “Destination-based tax”. What does this term mean?
    GST is levied by the taxing authority located at the place where the goods are ultimately consumed and not the place where the goods originate, thereby earning the name “Destination-based...Read More
    Goods and Service Tax
    What items are exempted from GST or kept outside the purview of GST?
    According to Article 366 of our Constitution, alcohol for human consumption is kept outside the purview of the GST law. Also, five petroleum products (namely, petroleum crude; motor spirit (petrol);...Read More
    Goods and Service Tax
    When is IGST levied on supply of goods and/or services?
    As per the provisions of the GST laws, Integrated GST or IGST is levied and collected by the Centre on occasions of inter-state supply of goods and/or services. Inter-state supply of goods and/or...Read More
    Goods and Service Tax
    What is CGST/SGST levied on supply goods and/or services?
    As per the provisions of the GST laws, Central GST (or IGST) and State GST (or SGST) are levied and collected by the Centre on occasions of intra-state supply of goods and/or services. Intra-state...Read More
    Goods and Service Tax
    What is e-way bill? How can a person generate e-way bill?
    E-way bill is a document required to be carried by any person responsible for movement of goods having value of more than fifty thousand rupees. The provisions relating to e-way bills are carried in...Read More
    Goods and Service Tax
    Can a person cancel the e-way bill if goods are not being transported after generation of such e-way bill?
    In situations where an e-way bill has been generated, but the goods are not being transported as per details provided in the e-way bill, such e-way bill can be cancelled through the common portal....Read More
    Goods and Service Tax
    Can a person make changes to the e-way bill? If yes, how many times can such changes be made?
    Yes, changes can be made to the e-way bill during its validity. There’s no restriction on the number of times such changes can be made. It must be noted that changes are allowed only in Part B of...Read More
    Goods and Service Tax
    Is it possible to extend the validity of an e-way bill generated in FORM EWB – 01?
    Yes, the validity of an e-way bill can be extended on the eway bill portal. Such changes can be made either 8 hours before the expiry of the e-way bill or after 8 hours of expiry of the e-way bill....Read More
    Goods and Service Tax
    What is EBN? Who is responsible for allotting EBN?
    EBN stands for e-way bill number generated by the common portal. It is a unique sequence of numbers made available to all the parties involved, i.e., the supplier, the recipient, and the transporter.
    Goods and Service Tax
    What is Composition Levy scheme?
    To reduce compliance burdens and facilitate ease of business for small taxpayers, Composition Levy has been introduced by the GST law. Under this scheme, a taxpayer is required to file quarterly...Read More
    Goods and Service Tax
    Explain the term Casual Taxpayer Person as per the provisions of GST law and define the process to obtain GST registration as a Casual Taxable Person.
    As per section 2 (20) of CGST Act 2017, Casual Taxable Person (CTP) is defined as a person who occasionally undertakes transactions involving supply of goods/services in the course or furtherance of...Read More
    Goods and Service Tax
    Suppose a taxpayer is having business operations in multiple states/union territories. Is he required to obtain GST registration in all the states, or he can operate under a single registration?
    As per the provisions of Section 22 of CGST Act 2017, a taxpayer operating in multiple states is required to obtain registration in each state if his aggregate turnover on the same PAN in current FY...Read More
    Goods and Service Tax
    Suppose a taxpayer is having two business units within the same state/UT. One unit is in Special Economic Zone (SEZ) while the other is located outside the SEZ unit but within the same state. Is the taxpayer required to obtain separate GSTIN for these business units or a single GSTIN is sufficient for the purposes of GST law?
    In accordance with section 25(1) of the CGST Act, a taxpayer, having a SEZ unit or being a SEZ developer, shall be required to apply for a separate GSTIN for its SEZ unit distinct from the unit...Read More
    Goods and Service Tax
    Explain the term “Input Service Distributors” as per the provisions of GST law. Is an ISD required to obtain a separate GSTIN from the existing GSTIN within the same state?
    As per section 2(61) of the CGST Act 2017, Input Service Distributor is defined as an office meant to receive tax invoices on receipt of input services and further distribute ITC to supplier units...Read More
    Goods and Service Tax
    Define the term “Supply” as defined under the GST law and explain the scope of supply.
    As per provisions & rules of GST law, supply can be defined as a taxable event of supply of goods & services, or both made for a consideration in the course or furtherance of business. The...Read More
    Goods and Service Tax
    How is import of goods treated under GST law?
    As per section 5(1) of the IGST Act 2017, IGST and GST Compensation Cess shall be levied on import of goods in accordance with the provisions of Customs Act 1962 and Customs Tariff Act 1975 along...Read More
    Goods and Service Tax
    Explain the term “supply made in course or furtherance of business”.
    As per section 2(17) of CGST Act 2017, business is defined as an activity which includes any trade, commerce, manufacture, profession, vocation, adventure, wager, or any other similar activity,...Read More
    Goods and Service Tax
    Suppose a supplier transfers an item from his stock in trade for personal use. Will this transfer constitute as supply as per GST law?
    As per GST law, any permanent transfer or disposal of goods or business assets shall fall under the scope of supply if Input Tax Credit (ITC) has been availed on such goods or assets. This transfer...Read More
    Goods and Service Tax
    Define the term Zero Rated Supply as per GST law.
    Zero Rated Supply covers exports of goods and/or services or supply of goods and/or services made to a SEZ unit or SEZ developer.
    Goods and Service Tax
    Explain the situations wherein Import of Service without consideration become taxable under GST.
    As per section 7 of CGST Act 2017, import of services without consideration will not be considered as supply. However, imports of service without consideration shall become taxable, if such services...Read More
    Goods and Service Tax
    Discuss the compliances relating to ITC if goods are lost by fire, or distributed as samples, or transferred for personal use.
    Clause “h” of section 17(5) of CGST Act 2017, provides an extensive list of ineligible ITCs for taxpayers. Accordingly, ITC on goods lost, stolen, destroyed, written off, or given off as...Read More
    Goods and Service Tax
    Is there any provision in the GST Act that allows refund of balance of ITC at the end of financial year?
    No, taxpayers are not allowed to claim refund of input balances available at the end of financial year. These balances are carried forward to the next year.
    Goods and Service Tax
    Is there any time limit for claiming refunds of Input Tax Credit under the applicable provisions of GST law?
    Yes, as per the applicable provisions, refunds of ITC shall be claimed within a period of 2 years from the relevant date. Relevant dates for supply of goods and/or services has been defined...Read More
    Goods and Service Tax
    What is meant by Exempt Supplies?
    As per sections of GST law, exempt supplies mean supplies that attract nil rate of tax. It also covers supplies which have been made exempt from tax under the GST law, and it also includes...Read More
    Goods and Service Tax
    What is meant by Zero Rated Supplies?
    As per sections of GST law, exports of goods and/or services and supply of goods and/or services to a SEZ unit fall under the definition of Zero-Rated Supplies. If a person is involved in the...Read More
    Goods and Service Tax
    What is Importer-Exporter Code (IEC)? Discuss the impacts of GST law on the IEC.
    Importer-Exporter Code is an identification number allotted to businesses involved in the export and import related transactions. IEC has been made mandatory for persons involved in such transactions.
    Goods and Service Tax
    Is it compulsory for a taxpayer to file return by himself?
    No. A registered taxpayer can also get his return filed through a Tax Return Preparer, duly approved by the Central or the State tax administration.
    Goods and Service Tax
    If a return has been filed, how can it be revised if some changes are required to be made?
    In GST since the returns are built from details of individual transactions, there is no requirement for having a revised return. Any need to revise a return may arise due to the need to change a set...Read More
    Goods and Service Tax
    Is an Annual Return and a Final Return one and the same?
    No. Annual Return has to be filed by every registered person paying tax as a normal taxpayer. Final Return has to be filed only by those registered persons who have applied for cancellation of...Read More
    Goods and Service Tax
    Whether the description of each item in the invoice will have to be uploaded?
    No. In actuality, the description won't need to be uploaded. Only the HSN code for the provision of products and the accounting code for the delivery of services must be fed. The minimal number...Read More
    Goods and Service Tax
    Is the scanned copy of invoices to be uploaded along with GSTR-1?
    Invoices is not required to be uploaded. Only certain prescribed fields of information from invoices need to be uploaded.
    Goods and Service Tax
    Can all liabilities be paid with ITC that has been granted provisionally?
    No, the only use for a provisionally allowed ITC is to pay a return's self-assessed output tax.
    Goods and Service Tax
    Can a registered person receive ITC for products or services used in the construction of a structure for commercial use?
    ITC on products or services provided by an individual for the building of real estate other than machinery and plant is not permitted. Plant and machinery only refers to items that are supported by a...Read More
    Goods and Service Tax
    Various factors might cause things to be lost or damaged at times. Can a person claim ITC for these items in full?
    No, a person cannot claim ITC for items that were stolen, lost, destroyed, or written off. Additionally, ITC with regard to products given as presents or free samples is not permitted.  
    Goods and Service Tax
    When goods are sent to someone who is not a taxable person ('bill to'-'ship to' scenarios), who will receive the ITC?
    When the items are given to a third party at the request of the taxpayer, it is assumed that the registered person has received the goods. So, the person on whose order the products are supplied to a...Read More
    Goods and Service Tax
    How would a registered person be eligible to ITC if goods for an invoice are received in lots or installments?
    Only upon receipt of the last lot or installment, the registered person becomes eligible for the credit.
    Goods and Service Tax
    Is credit of all input tax charged on supply of goods or services allowed under GST?
    Subject to further terms and circumstances, a registered person is allowed to claim an input tax credit for purchases of products or services that he uses or intends to use in the course or...Read More
    Goods and Service Tax
    Does input tax include tax (CGST/IGST/SGST) paid on input goods, input services and capital goods?
    Yes, it includes taxes paid on input goods, input services and capital goods. Credit of tax paid on capital goods is permitted to be availed in one installment.  
    Goods and Service Tax
    Can GST paid on reverse charge basis be considered as input tax?
    Yes. The definition of input tax includes the tax payable under the reverse charge.  
    Goods and Service Tax
    Is every e-commerce operator required to collect tax on behalf of actual supplier?
    Yes, every e-commerce operator is required to collect tax in cases where they are receiving payment for the supply in relation to the consideration.  
    Goods and Service Tax
    What is meant by “net value of taxable supplies”?
    The term "net value of taxable supplies" refers to the total amount of taxable supplies of goods or services, or both, made by all registered parties through the e-commerce operator during...Read More
    Goods and Service Tax
    Is it mandatory for e-commerce operator to obtain registration?
    Yes. The benefit of threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.
    Goods and Service Tax
    What is a CIN and what is its relevance?
    Challan Identification Number is referred to as CIN. It is a 17-digit number made up of a 3-digit bank code and a 14-digit CPIN. When a payment is actually received by one of these authorised banks...Read More
    Goods and Service Tax
    What is a CPIN?
    CPIN is an acronym for the Common Portal Identification Number (CPIN) provided at the point the challan was generated. The challan's identification number is a 14-digit unique number. As...Read More
    Goods and Service Tax
    Is there a validity period of challan?
    Yes, a challan will remain in effect for fifteen days after it is generated before being deleted from the system. The tax payer can, however, produce a new challan whenever he likes.
    Goods and Service Tax
    Can a challan generated online be modified?
    No. The tax payer can save the challan for further updation but cannot modify the challan after generation of CPIN.
    Goods and Service Tax
    Can a tax payer generate challan in multiple sittings?
    Yes, a taxpayer may begin filling out the challan form in part and then temporarily "save" it to finish it later. Prior to finalisation, a saved challan can be "modified." The tax...Read More
    Goods and Service Tax
    What is an ITC Ledger?
    The ITC Ledger will record Input Tax Credit as self-assessed in monthly returns. Only taxes, not other amounts like interest, penalties, or fees, can be paid with the credit in this ledger.
    Goods and Service Tax
    What is a Cash Ledger?
    All cash deposits and TDS/TCS made on the taxpayer's behalf are recorded in the cash ledger. Real-time updates will be made to the information. You can use this ledger to make any payment on...Read More
    Goods and Service Tax
    What is a tax liability register?
    The overall tax due of a taxpayer for a given month will be shown in the Tax Liability Register (after netting).
    Goods and Service Tax
    What are E-Ledgers?
    The statements of cash and input tax credit for each registered taxpayer are known as electronic ledgers, or E-Ledgers. Each taxpayer is also have an electronic tax liability register. 
    Goods and Service Tax
    What happens if the taxable person files the return but does not make payment of tax?
    The return is not regarded as a proper return in such circumstances. Only the valid return will be taken into account when granting the receiver an input tax credit (ITC).
    Goods and Service Tax
    Are self-supplies taxable under GST?
    Consignment sales, branch transfers, and other interstate self-supplies including stock transfers are all subject to the GST even though they don't always need payment of money in exchange.
    Goods and Service Tax
    What is the taxable event under GST?
    The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business.
    Goods and Service Tax
    Will there be any communication regarding the disposal of the application?
    The GST common portal is required to notify the applicant through email and SMS if his registration request was approved or denied. At this point, the applicant would be informed of the...Read More
    Goods and Service Tax
    What will be the time limit for the decision on the on line registration application?
    The State or Central Authorities shall approve or issue SCN (in case of any deficiencies or any further clarification required by proper officer) within 7 working days if they opt for Aadhar...Read More
    Goods and Service Tax
    Is there any facility for digital signature in the GSTN registration?
    The alternative for tax payers to sign applications with certified digital signatures has been be provided. The application or other submissions would be able to be electronically signed using either...Read More
    Goods and Service Tax
    Whether the Registration granted to any person is permanent?
    Yes, the registration certificate is permanent once issued until it is given up, revoked, suspended, or cancelled.
    Goods and Service Tax
    If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?
     No. Each person who is required to obtain a registration must register separately for each State in which he conducts business and is responsible for paying GST.
    Goods and Service Tax
    What will be the effective date of registration?
    The effective date of registration shall be the date on which the person became subject to registration in cases where the application for registration has been made within thirty days of that...Read More
    Goods and Service Tax
    Can someone who has not registered for GST still claim ITC and collect tax?
    No, a person who has not registered for GST is unable to collect GST from customers or to claim any input tax credits for GST that he has already paid.
    Goods and Service Tax
    Can composition tax be collected from customers?
    No, the registered person under composition scheme is not permitted to collect tax.
    Goods and Service Tax
    Can the customer who buys from a registered person who is under the composition scheme claim composition tax as input tax credit?
    No, because a composition scheme supplier cannot issue a tax invoice, a customer who purchases goods from a registered person under the composition scheme is not eligible for composition input tax...Read More
    Goods and Service Tax
    Can a person who is registered under the composition scheme claim an input tax credit?
    No, registered person under composition scheme is not eligible to claim input tax credit.
    Goods and Service Tax
    What will be the implications in case of receipt of supply from unregistered persons?
    If a registered person receives specified supply from an unregistered person, the registered person must pay tax under the reverse charge mechanism.
    Goods and Service Tax
    Is the reverse charge mechanism applicable only to services?
     No, reverse charge applies to supplies of both goods and services.  
    Goods and Service Tax
    What is meant by Reverse Charge?
    It means that the recipient of such goods and services pays the tax liability rather than the supplier of such goods and services. It is applicable on supply of Goods and Services as specified.
    Goods and Service Tax
    What is meant by Reverse Charge?
    It means that the recipient of such goods and services pays the tax liability rather than the supplier of such goods and services. It is applicable on supply of Goods and Services as specified.
    Goods and Service Tax
    How will Exports be treated under GST?
    Exports will be taken into account as zero-rated supplies. No tax will be charged on exports of goods or services; however, an input tax credit will be available and will be refunded to exporters....Read More
    Goods and Service Tax
    Which goods/sectors are out of the purview of GST?
    Alcohol and certain petroleum products, such as petroleum crude, high speed diesel, motor spirit, aviation turbine fuel, and natural gas, are out of scope from GST. GST on Petroleum Product shall...Read More
    Goods and Service Tax
    Which existing taxes are proposed to be absorbed by GST?
    The central taxes subsumed under CGST include: Central Excise duty Additional Excise duties Excise Duty levied under the Medicinal and Toiletries Preparation...Read More
    Goods and Service Tax
    What is the Goods and Services Tax (GST)?
    It is a destination based tax on consumption of goods and services. It is proposed that it be levied at all stages, from manufacturing to final consumption, with setoff of credit of taxes paid at...Read More
    Goods and Service Tax
    Is Section 80CCD(1B) applicable to investments made by a spouse in the Atal Pension Yojna (APY)?
    Investments made in APY are tax deductible under Section 80CCD (1B) and can be considered similarly to NPS investments. As a result, APY can claim the deduction under Section 80CCD (1B). An...Read More
    Income Tax-Personal
    What distinguishes the NPS exemption from income tax under section 80CCD(1B) from the NPS exemption under section 80C?
    Up to 1,50,000 rupees may be deducted from NPS under Section 80C, and an additional 50,000 rupees may be deducted by Section 80CCD(1B).
    Income Tax-Personal
    Do 80CCC and 80CCD fall under 80C or are they separate tax incentives for investments? Are they above the 80C limit of Rs. 1,50,000?
    A deduction under section 80C, section 80CCC, and section 80CCD(1) may be combined; however, as per 80CCE, the total deduction under all three sections cannot exceed INR 1,50,000.
    Income Tax-Personal
    Can I deduct my SIPs from my taxes under Section 80C?
    Section 80C applies to ELSS SIP investments, however, it does not apply to SIPs for other mutual funds.
    Income Tax-Personal
    Does investment made through NPS fall under section 80 C?
    Yes, Section 80C does apply to investments in NPS.  
    Income Tax-Personal
    Does the Provident Fund qualify for a tax exemption under section 80C?
    The provident fund does fall under section 80C. Recognized provident fund and unrecognized provident fund are the two types of PF. An employee may claim a deduction for the money that he, not the...Read More
    Income Tax-Personal
    Does the tax deduction under Section 80 C apply to recurring deposits?
    The recurring deposit is not covered by section 80C but the five-year fixed deposit is. Other investments covered by section 80C include principal repayment of house loan, tuition fee, ELSS, LIC, etc.
    Income Tax-Personal
    Is it necessary to verify the original return in order to file a revised return?
    No, you are not required to check the original return before filing the new one. If the updated return is submitted and verified, there is no need to check the initial return. Only the updated return...Read More
    Income Tax-Personal
    Being a non-resident, Without a mobile phone number in India, how can I register on the e-filing portal?
    In order to register for an account on the Income Tax Department's e-filing portal, a mobile number and email address are required fields. A new user must provide the One-Time Password (OTP) sent...Read More
    Income Tax-Personal
    When is an obligation to non-residents to submit a tax return of income required?
    A non-resident must file an income tax return in accordance with the rules that apply to the comparable resident assessee if they have income that is taxable in India. But let's say a company is...Read More
    Income Tax-Personal
    Can the Aadhaar number be used as a PAN Number login procedure for incometax.gov.in?
    Yes, Every person who has been assigned a PAN and is qualified to receive an Aadhaar number must inform the Income-tax Department of his Aadhaar number. The Income-tax Act permits the...Read More
    Income Tax-Personal
    What formula is used to determine long-term capital gains?
    The full value of the consideration received upon transferring the long-term capital asset will be subtracted from the cost of the long term capital asset after considering indexation to determine...Read More
    Income Tax-Personal
    If a partner in a partnership firm retires, are there any special provisions for loss carryover in that case?
    In event of a change to the constitution of a partnership carrying to the death or retirement of a partner, carry-infection 78 contains provisions relating to carry forward and set off of a loss (...Read More
    Income Tax-Personal
    Can a loss be carried forward by a reconstituted corporation in the event of a business constitution change?
     In most cases, the person who suffers a loss merely has the right to carry it forward to be corrected in the next year (s). However, the reconstituted corporation is eligible to carry forward...Read More
    Income Tax-Personal
    What are the rules outlined in the Income Tax Law regarding the set off of unabsorbed depreciation, unused capital expenditures for scientific research, and unused capital expenditures to encourage family planning among employees?
    The first thing that is subtracted from the income subject to tax under the heading "Profits and gains of business or profession" is depreciation. The unabsorbed component must be added to...Read More
    Income Tax-Personal
    What guidelines have been established by the Income Tax Law regarding the carry forward and offset of capital losses?
    Unadjusted capital losses can be carried forward to the following year if losses under the "Capital Gain during the year in the same heading cannot be adjusted in the same year. The...Read More
    Income Tax-Personal
    What provisions of the Income Tax Law are made regarding the carry forward and offset of losses on house property?
    Unadjusted loss may be carried forward to the following year if loss cannot be properly adjusted in the year in which such loss is incurred. In successive years, only income subject to taxation...Read More
    Income Tax-Personal
    What sections of the Income Tax Act govern the carry forward and offset of losses from the speculative business?
    If a loss from a small business can't be adjusted in the year it occurs, the unadjusted loss might be carried forward to be corrected in the next year. Such losses may be mitigated in the next...Read More
    Income Tax-Personal
    Can the taxpayer carry forward the partially adjusted loss for adjustment in the following year if the income of the year in which the loss is incurred is insufficient?
    Many times, even after intra- and inter-head adjustments, the loss might still not be taken into account. Such an unadjusted loss may be carried forward to the following year and offset by the income...Read More
    Income Tax-Personal
    What limitations must be taken into consideration when adjusting a loss across sources?
    Before implementing intra-head modifications that result in loss, the following limitations should be kept in mind: • Any income changes resulting from speculative operations cannot be offset...Read More
    Income Tax-Personal
    What does the term "inter-source adjustment" mean?
    If a taxpayer has a loss from any source falling under a specific head of income in any given year, he or she is permitted to offset that loss against revenue from any other source falling under the...Read More
    Income Tax-Personal
    Can a loss from an exempt source be offset by any other taxable income if the source's revenue is exempt?
    If a source code's income is tax-exempt, losses from that source can't be offset against any other income that is subject to taxation. For eg .If a taxpayer experiences a loss from...Read More
    Income Tax-Personal
    What exactly is Form 12BB?
    Form No. 12BB must be sent by an employee to his employer in order to estimate his income or calculate the tax deduction at source. In order to estimate his income or determine the tax deduction...Read More
    Income Tax-Personal
    What is the House Rent Allowance's (HRA) taxability?
    At least one of the following is exempt (not taxable or subtracted) from the total HRA received. (A) Rent paid less 10% of (BP+DA) B(i)) 40% of the (BP+DA) for Non Metro cities B(ii) 50% of...Read More
    Income Tax-Personal
    What tax treatment does an employer's ex-gratia have?
     If a person or his heir gets ex-gratia from the Central Government, a State Government, a Local Authority, or a Public Sector Undertaking as a result of personal injury or death while...Read More
    Income Tax-Personal
    Is the cashing of a leave of absence taxable as salary?
    If received while in service, it is taxed. The Government employee is exempt from paying taxes on any leave encashment they earned at retirement. In the hands of non-government employees, leave...Read More
    Income Tax-Personal
    If I receive my pension from a bank, who the bank or my previous employer will send me a Form-16 or pension statement?
    Government employees are not required to pay taxes on their gratuities and pension fund receipts. Gratuity is exempt in the hands of non-government employees up to the limitations set forth in this...Read More
    Income Tax-Personal
    My Company reimburses me for all of my shopping and childcare costs. Are these going to count as my income?
    Yes, these have the status of perquisites and should be evaluated in accordance with the guidelines established in this regard.
    Income Tax-Personal
    What are allowances?
    In general, there are three categories of allowances under the Income-tax Act: taxable allowances, fully exempt allowances, and partially exempted allowances. a) Perquisites are extraneous...Read More
    Income Tax-Personal
    What is meant by salary income?
    The term "salary" is defined under Section 17 of the Income-tax Act. Without getting into the formal term, however, generally speaking, anything that an employee receives from his employer...Read More
    Income Tax-Personal
    What is TDS certificate?
    TDS certificate is issued by the deductor to the deductee.         Form 16: It is issued by the employer to the employee, it indicates details of tax...Read More
    Income Tax-Personal
    What is the late filing fee for TDS return?
     As per the section 234E, the deductor is liable to pay fee of Rs.200 per day until return is filed. Penalty should not exceed the amount of TDS.
    Income Tax-Personal
    How is interest calculated on late payment of TDS?
     When TDS is deducted- 1% per month or part thereof, for the period from the date on which TDS is        deductible/collectible to the date on which TDS/TCS is actually...Read More
    Income Tax-Personal
    What are the due dates for filing of TDS return?
    Quarter Due Dates 1st April to 30th June 31st July of Financial year 1st Jul to 30th Sep 31st...Read More
    Income Tax-Personal
    When TDS is to be deposited?
    TDS to be deposited on or before 7th of the following month.  
    Income Tax-Personal
    When TDS is to be deducted?
    TDS to be deducted either at the time of credit to the deductee account or at the time of payment whichever is earlier.  
    Income Tax-Personal
    What is TAN?
    TAN stands for the Tax Deduction Account Number. TAN is required to be obtained by all persons who are responsible for deducting or collecting of tax. It is a 10 digit alpha numeric number allotted...Read More
    Income Tax-Personal
    What is TAN?
    TAN stands for the Tax Deduction Account Number. TAN is required to be obtained by all persons who are responsible for deducting or collecting of tax. It is a 10 digit alpha numeric number allotted...Read More
    Income Tax-Personal
    How can one Revise Income Tax Return?
    A return can be revised u/s 139(5) before processing by the department or before the expiry of the relevant assessment year whichever is earlier. While uploading original return if...Read More
    Income Tax-Personal
    How to E-Verify Income tax Return?
    Various modes are prescribed for validating income tax returns through electronic verification code (EVC): Through Aadhaar Number OTP Generation of EVC Through Net...Read More
    Income Tax-Personal
    Which ITR Form to fill?
    Selection of ITR form depends on the nature of Income:   ITR-1 For Individuals (Resident) having Income from Salaries, one house property, other sources...Read More
    Income Tax-Personal
    What is a deferred tax liability?
    The tax liability that a company owes and does not pay at the current point, but is responsible for paying it at some point in the near future is termed deferred tax liability. It is a balance sheet...Read More
    Income Tax-Personal
    What is a deferred tax asset?
    When a firm pays tax early or has paid excess of tax and needs to get some money back from the tax authorities is termed as a deferred tax asset. The term is recorded in the balance sheet and is also...Read More
    Income Tax-Personal
    What do you mean by Capital Gain?
    The profit that is earned by selling an asset means capital gain. When the asset is being sold the income or the gain that arises is the difference between the selling price and the actual price in...Read More
    Income Tax-Personal
    How to decide the residential status of profits or income taxpayers?
    The residential status of an individual is categorized as Resident and Non-Resident. An individual is said to be a resident of India in any previous year if he satisfies any one of the basic...Read More
    Income Tax-Personal
    What is Tax evasion ,Tax avoidance and Tax planning ?
    Tax evasion means a method of evading tax liability by dishonest means like suppression, conscious violation of rules, inflation of expenses etc. Tax evasion involves use of unfair means while tax...Read More
    Income Tax-Personal
    What is Gross Total Income?
    Gross total income is the aggregate of income under all the five heads of income after adjusting the set-off & carry forward of losses. Deductions under chapter VIA is provided from GTI, to...Read More
    Income Tax-Personal
    What is exempt income and taxable income?
    An exempt income is not charged to tax, i.e., Income-tax Law specifically grants exemption from tax to such income. Incomes which are chargeable to tax are called as taxable incomes.
    Income Tax-Personal
    What is tax on regular assessment and how is it paid?
    Under the Income-tax Act, every person has the responsibility to correctly compute and pay his due taxes. Where the Department finds that there has been understatement of income and resultant tax...Read More
    Income Tax-Personal
    Who is not liable to pay advance tax?
    A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.
    Income Tax-Personal
    When Liability for payment of advance tax arises and how it’s calculated and paid?
    Under section 208, obligation to pay advance tax arises in every case where the estimated tax liability is Rs.10000 or more. ??Advance tax is to be paid in instalments as given...Read More
    Income Tax-Personal
    How does the government collect Income tax?
    Taxes are collected by the Government through three means: Voluntary payment by taxpayers through advance tax and Self Assessment tax Taxes deducted at source (TDS) from the income...Read More
    Income Tax-Personal
    Who is liable to pay income tax?
    Income-tax is to be paid by every person. The term 'person' as defined under the Income-tax Act under section 2(3) covers in its ambit natural as well as artificial persons. The...Read More
    Income Tax-Personal
    What is the period for which a person’s income is taken into account for the purpose of income tax?
    Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1st April and ending on 31st March of next calendar year. The Income-tax...Read More
    Income Tax-Personal
    What is direct tax and indirect tax?
    Direct tax on which incidence and impact fall on the same person, such as Income Tax. Indirect tax on which incidence and impact fall on two different persons, such as GST.  
    Income Tax-Personal
    How is the Income-tax calculated?
    Income Tax is calculated on the basis of the total income of an individual related to salaries, profits of businesses, capital gains, house property, and other sources. The income tax is calculated...Read More
    Income Tax-Personal
    What is Income tax?
    Income tax is a direct tax that a government levies on the income of its citizens. The Income Tax Act, 1961, mandates that the central government collect this tax.
    Income Tax-Personal
    What are the main post-registration reporting requirements for companies in India?
    The post registration reporting requirements for companies are set out as under: Filing of form INC - 20A (Commencement of Business Certificate) - Within 180 days of issuance of Certificate of...Read More
    Corporate Law
    What are the most common types of companies in India?
    Following are the most common types of companies: a. A Private Limited Company under the Companies Act, 2013 which can be incorporated with no requirement of minimum capital and 2directors b. A...Read More
    Corporate Law
    Are there any controlling factors or restrictions on foreign companies in India?
    Indian subsidiaries (Foreign Companies) are governed by the regulations framed under following laws: a. Companies Act, 2013 or Companies Act, 1956 (if applicable); b. The Foreign Exchange...Read More
    Corporate Law
     What are the key laws and regulations that govern company law in India?
    Following are the governing laws for the Companies registered in India: a. The Companies Act, 2013 and Rules made there under for unlisted companies such as private companies, foreign companies,...Read More
    Corporate Law
    What is the requirement of directors under Companies Law?
    The Companies Act, 2013 provides for the following categories of the directors: a. Executive director (including managing director or whole time director) b. Non-executive director and c....Read More
    Corporate Law
    In case of an overseas subscriber and director, are the documents required to be notarised and apostilled for incorporation of a company?
    The attestation requirements depend on the country in which registered office/residence of the overseas subscriber/director is situated. The documents are required to be attested as follows: 1....Read More
    Corporate Law
    Can NRIs or foreign national or foreign entities register a company in India?
    NRIs or foreign nationals can register a company and make investments in India subject to the Foreign Direct Investment Policy and Guidelines issued by the RBI. The only condition as per...Read More
    Corporate Law
    How do I check the availability of names for my company?
    Company name approval and allotment process in India is administered by the Ministry of Corporate Affairs (MCA). Name availability can be checked through MCA website i.e www. MCA.gov.in< MCA...Read More
    Corporate Law
    How much Capital is required for Incorporating a Private Limited Company?
    There has not been prescribed any minimum Capital requirement for incorporating a private limited company. One may even start a company with a paid up capital as low as Rs. 500/-. Although upto Rs....Read More
    Corporate Law
    Is a Private Limited Company Suitable for making FDI in India?
    Private Limited Company have always been very popular form of business entity amongst foreign investors for making the direct foreign investment (subject to FDI Policy and Guidelines) in any country,...Read More
    Corporate Law
    Can a Private Limited Company be started at a Residential Address?
    While incorporating a Private Limited Company it is mandatory to provide the proof of Registered Office of the Company. The registered office address need not necessarily be commercial address to...Read More
    Corporate Law
    What are the minimum requirements to register a private limited company?
    There should be minimum of 2 Members who shall be subscribers to Memorandum of Association of the Company and there should be at least 2 Directors in the company, out of which one should be Indian...Read More
    Corporate Law
    How many maximum directors can a Private Limited Company have?
    As per Companies Act, 2013, A Private Company may appoint maximum of 15 Directors on the Board of the Company subject to the approval of member in the General Meeting. A Company can appoint more than...Read More
    Corporate Law
    Whether it is mandatory to take in-principle approval of the regulatory authority?
    It is mandatory to attach the approval of the regulatory Authority at the time of filling of incorporation or change of name of the company where the object of the Company is of Insurance agent/...Read More
    Corporate Law
    What is the Procedure to Register a Private Limited Company in India?
    Thare are 5 major steps in registering a Private Limited Company: 1. Name Application in Spice+ Part A. 2. Procurement of Digital Signature Certificates of all the Directors and...Read More
    Corporate Law
    What are the compliances of a Private Limited Company?
    An organization is expected to keep up with specific compliances after its incorporation, like, a statutory Auditor should be appointed within 30 days of incorporation along with the mandatorily...Read More
    Corporate Law
    Define the term Composite Supply under CGST/SGST/UTGST Act.
    Composite Supply is defined as supply comprising of two or more taxable goods and/or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in...Read More
    Goods and Service Tax
    Define the term Mixed Supply under CGST/SGST/UTGST Act.
    Mixed Supply is defined as supply of two or more goods/services or any combination thereof, made in conjunction with each other by a taxable person for a single price, where such supply does not...Read More
    Goods and Service Tax
    Define the term “Time of Supply”.
    Time of Supply can be defined as the point at which the liability to charge GST arises. It indicates a time at which a particular supply of goods and/or services is deemed to be made. The acts and...Read More
    Goods and Service Tax
    What is the prescribed time limit to issue invoice in case of supply of services as per section 31 of CGST/SGST Act?
    As per section 31 of CGST/SGST Act, the taxpayer shall, before or after the provision of service, but within a period of 30 days from the date of supply of service, issue a tax invoice containing all...Read More
    Goods and Service Tax
    What is the prescribed time limit to issue invoice in case of continuous supply of goods as per section 31 of CGST/SGST Act?
    Continuous supply of goods means supply wherein a supplier provides goods to the recipient on a continuous or recurring basis, under a contract. If successive statement of accounts or successive...Read More
    Goods and Service Tax
    Define the terms “Input Tax” and “Input Tax Credit”.
    Input Tax means the Integrated Tax (IGST), Central Tax (CGST), State Tax (SGST), and Union Territory Tax (UTGST) charged on supply of goods and/or services made to a registered person. Taxes...Read More
    Goods and Service Tax
    Can a recipient avail Input Tax Credit without payment of consideration for the goods & services received?
    Yes, the recipient of goods and/or services can avail input tax credit on such supply even if consideration is not paid. However, the recipient is required to make the payment along with tax amount...Read More
    Goods and Service Tax
    What happens if the recipient fails to discharge the consideration within 180 days of invoice date? Will he be eligible to reclaim the input tax credit after payment of consideration?
    If the recipient of goods or service or both fails to make payment of consideration within 180 days of invoice date, he shall be required to add the Input Tax Credit (availed against such invoice) to...Read More
    Goods and Service Tax
    What is Goods and Services Tax and how is it levied?
    Goods and Services Tax (GST) is a destination-based tax levied on consumption of Goods and Services. As per the applicable GST laws and rules, GST is meant to be levied at every stage of the...Read More
    Goods and Service Tax
    GST is often defined as “Destination-based tax”. What does this term mean?
    GST is levied by the taxing authority located at the place where the goods are ultimately consumed and not the place where the goods originate, thereby earning the name “Destination-based...Read More
    Goods and Service Tax
    What items are exempted from GST or kept outside the purview of GST?
    According to Article 366 of our Constitution, alcohol for human consumption is kept outside the purview of the GST law. Also, five petroleum products (namely, petroleum crude; motor spirit (petrol);...Read More
    Goods and Service Tax
    When is IGST levied on supply of goods and/or services?
    As per the provisions of the GST laws, Integrated GST or IGST is levied and collected by the Centre on occasions of inter-state supply of goods and/or services. Inter-state supply of goods and/or...Read More
    Goods and Service Tax
    What is CGST/SGST levied on supply goods and/or services?
    As per the provisions of the GST laws, Central GST (or IGST) and State GST (or SGST) are levied and collected by the Centre on occasions of intra-state supply of goods and/or services. Intra-state...Read More
    Goods and Service Tax
    What is e-way bill? How can a person generate e-way bill?
    E-way bill is a document required to be carried by any person responsible for movement of goods having value of more than fifty thousand rupees. The provisions relating to e-way bills are carried in...Read More
    Goods and Service Tax
    Can a person cancel the e-way bill if goods are not being transported after generation of such e-way bill?
    In situations where an e-way bill has been generated, but the goods are not being transported as per details provided in the e-way bill, such e-way bill can be cancelled through the common portal....Read More
    Goods and Service Tax
    Can a person make changes to the e-way bill? If yes, how many times can such changes be made?
    Yes, changes can be made to the e-way bill during its validity. There’s no restriction on the number of times such changes can be made. It must be noted that changes are allowed only in Part B of...Read More
    Goods and Service Tax
    Is it possible to extend the validity of an e-way bill generated in FORM EWB – 01?
    Yes, the validity of an e-way bill can be extended on the eway bill portal. Such changes can be made either 8 hours before the expiry of the e-way bill or after 8 hours of expiry of the e-way bill....Read More
    Goods and Service Tax
    What is EBN? Who is responsible for allotting EBN?
    EBN stands for e-way bill number generated by the common portal. It is a unique sequence of numbers made available to all the parties involved, i.e., the supplier, the recipient, and the transporter.
    Goods and Service Tax
    What is Composition Levy scheme?
    To reduce compliance burdens and facilitate ease of business for small taxpayers, Composition Levy has been introduced by the GST law. Under this scheme, a taxpayer is required to file quarterly...Read More
    Goods and Service Tax
    Explain the term Casual Taxpayer Person as per the provisions of GST law and define the process to obtain GST registration as a Casual Taxable Person.
    As per section 2 (20) of CGST Act 2017, Casual Taxable Person (CTP) is defined as a person who occasionally undertakes transactions involving supply of goods/services in the course or furtherance of...Read More
    Goods and Service Tax
    Suppose a taxpayer is having business operations in multiple states/union territories. Is he required to obtain GST registration in all the states, or he can operate under a single registration?
    As per the provisions of Section 22 of CGST Act 2017, a taxpayer operating in multiple states is required to obtain registration in each state if his aggregate turnover on the same PAN in current FY...Read More
    Goods and Service Tax
    Suppose a taxpayer is having two business units within the same state/UT. One unit is in Special Economic Zone (SEZ) while the other is located outside the SEZ unit but within the same state. Is the taxpayer required to obtain separate GSTIN for these business units or a single GSTIN is sufficient for the purposes of GST law?
    In accordance with section 25(1) of the CGST Act, a taxpayer, having a SEZ unit or being a SEZ developer, shall be required to apply for a separate GSTIN for its SEZ unit distinct from the unit...Read More
    Goods and Service Tax
    Explain the term “Input Service Distributors” as per the provisions of GST law. Is an ISD required to obtain a separate GSTIN from the existing GSTIN within the same state?
    As per section 2(61) of the CGST Act 2017, Input Service Distributor is defined as an office meant to receive tax invoices on receipt of input services and further distribute ITC to supplier units...Read More
    Goods and Service Tax
    Define the term “Supply” as defined under the GST law and explain the scope of supply.
    As per provisions & rules of GST law, supply can be defined as a taxable event of supply of goods & services, or both made for a consideration in the course or furtherance of business. The...Read More
    Goods and Service Tax
    How is import of goods treated under GST law?
    As per section 5(1) of the IGST Act 2017, IGST and GST Compensation Cess shall be levied on import of goods in accordance with the provisions of Customs Act 1962 and Customs Tariff Act 1975 along...Read More
    Goods and Service Tax
    Explain the term “supply made in course or furtherance of business”.
    As per section 2(17) of CGST Act 2017, business is defined as an activity which includes any trade, commerce, manufacture, profession, vocation, adventure, wager, or any other similar activity,...Read More
    Goods and Service Tax
    Suppose a supplier transfers an item from his stock in trade for personal use. Will this transfer constitute as supply as per GST law?
    As per GST law, any permanent transfer or disposal of goods or business assets shall fall under the scope of supply if Input Tax Credit (ITC) has been availed on such goods or assets. This transfer...Read More
    Goods and Service Tax
    Define the term Zero Rated Supply as per GST law.
    Zero Rated Supply covers exports of goods and/or services or supply of goods and/or services made to a SEZ unit or SEZ developer.
    Goods and Service Tax
    Explain the situations wherein Import of Service without consideration become taxable under GST.
    As per section 7 of CGST Act 2017, import of services without consideration will not be considered as supply. However, imports of service without consideration shall become taxable, if such services...Read More
    Goods and Service Tax
    Discuss the compliances relating to ITC if goods are lost by fire, or distributed as samples, or transferred for personal use.
    Clause “h” of section 17(5) of CGST Act 2017, provides an extensive list of ineligible ITCs for taxpayers. Accordingly, ITC on goods lost, stolen, destroyed, written off, or given off as...Read More
    Goods and Service Tax
    Is there any provision in the GST Act that allows refund of balance of ITC at the end of financial year?
    No, taxpayers are not allowed to claim refund of input balances available at the end of financial year. These balances are carried forward to the next year.
    Goods and Service Tax
    Is there any time limit for claiming refunds of Input Tax Credit under the applicable provisions of GST law?
    Yes, as per the applicable provisions, refunds of ITC shall be claimed within a period of 2 years from the relevant date. Relevant dates for supply of goods and/or services has been defined...Read More
    Goods and Service Tax
    What is meant by Exempt Supplies?
    As per sections of GST law, exempt supplies mean supplies that attract nil rate of tax. It also covers supplies which have been made exempt from tax under the GST law, and it also includes...Read More
    Goods and Service Tax
    What is meant by Zero Rated Supplies?
    As per sections of GST law, exports of goods and/or services and supply of goods and/or services to a SEZ unit fall under the definition of Zero-Rated Supplies. If a person is involved in the...Read More
    Goods and Service Tax
    What is Importer-Exporter Code (IEC)? Discuss the impacts of GST law on the IEC.
    Importer-Exporter Code is an identification number allotted to businesses involved in the export and import related transactions. IEC has been made mandatory for persons involved in such transactions.
    Goods and Service Tax

    Recent Post

    Q. Is it compulsory for a taxpayer to file return by himself?

    Q. If a return has been filed, how can it be revised if some changes are required to be made?

    Q. Is an Annual Return and a Final Return one and the same?

    Q. Whether the description of each item in the invoice will have to be uploaded?

    Q. Is the scanned copy of invoices to be uploaded along with GSTR-1?