CCHTaxOnline - Leading Information Provider In The Areas Of Tax, Accounting and Law

Inflation can change the political scenario of a country. But what exactly is inflation in simple terms? Let’s take an example to understand inflation better – Often, the price of a commodity increases over time which leads to fall in purchasing power of money i.e. if 7 items can be bought for INR 700 today, tomorrow you may be able to buy only 5 items at the same price on account of inflation. This brings us to the tax jargon i.e. Cost Inflation Index (‘CII’), which calculates the estimated rise in the cost of goods and assets year-by-year as a result of inflation. What is the significance of CII and Indexation? It is used for computation of Capital Gains and related taxes. If the index is not used, the inflated prices increase your gains and more gains result in increased tax liabilities. Therefore, the use of CII is beneficial for a taxpayer. The entire process of adjusting the cost price of a capital asset with the effect of inflation using the CII number is referred

Refund refers to any amount that is due to the taxpayer from the administration owing to excess payment of taxes or any other reason. In the current GST regime, the entire refund process has been clearly defined in law. It aims at keeping the issues due to which refund arises at a minimum level with the help of higher compliances and self-regulating mechanism. Scope of Refund i.       Refund of taxes paid as per GST tax rates in India on zero-rated supplies ii.     Refund of taxes on Inputs or Input Services used in making zero-rated supplies iii.   Refund of taxes on the supply of goods regarded as deemed exports iv.   Refund of the unutilized input tax credit (ITC) as provided u/s 54(3) i.e. due to inverted duty structure. Further, there could be various other situations wherein refund can be granted to the registered person as per the refund provisions. Taxpayers who export goods or services can choose any of the following options: Export under bond/Letter of