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Though GST was launched in July 2017 and is now 21-month-old but doubts, queries and issues relating to it refuse to subside. Consequently, through this article we will try to provide some clarity by taking up a few frequently asked GST online questions .      How is the utilization of credits managed under the GST regime? Order of Input Tax Credit utilization has now changed, as per rules effective from February 2019, the following rules will apply – First set off Payment for Then set off IGST SGST SGST IGST CGST CGST IGST IGST CGST & SGST Does an agent or broker require registration or is the limit of 20 lacs applicable to them? GST registration online process is compulsory for assessees that make taxable supplies on behalf of other person as agents. Thus, one is mandatorily required to obtain registration irrespective of the turnover if...

The dictionary meaning of malware says it’s a software designed to disrupt, damage, or gain unauthorized access to a computer system. For any new structure or system coming up online, the biggest challenge is to protect itself from malware and outside attacks or interruptions. To ensure the same a lot of firewalls are built within the structure. The GST network (GSTN) could have been exposed to all sort of cyber threats but all necessary steps were taken to protect the network from malware. GSTN has followed and embedded major threats mitigating principles addressing both internal and external threats. These include potential data tampering attempts for commercial benefit by individuals or groups, industrial espionage, insider and external attacks to steal or tamper data, along with cyber-attacks on GST system and unauthorized data and system access. The core GST system created by Infosys is not directly exposed to the internet. It has multi-layered security architecture built w...

With divorce comes hand in hand another concern known as Alimony and its taxability. While divorce is the legal method of putting a relationship to an end, usually monetary compensation is provided to the financially weak party by the financially stronger one for them to maintain the same standard of living after separation. The term used for such compensation is “Alimony” which is a legal obligation in most countries. In our country alimony is governed according to the personal laws and the provision of the Special Marriage Act. Another law regarding alimony is laid down in section 125 CrPc. It talks about alimony rights to wife given by the husband. Section 125, along with several other alimony rights, grants the right of Interim maintenance also. The Supreme Court in several of its judgment has made it clear that interim maintenance can be awarded before the final disposal of a case. Though there is no specific provision in the Code regarding interim maintenance judicial activi...

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 f...

Introduced by the Finance Act, 1994, the Section 194-I emphasizes that an entity, whether an individual or H.U.F. who receives rental income is liable for a tax deduction at source (‘TDS’) when the income credited is more than Rs.1,80,000 during a financial year. Definition of ‘Rent’ in regard to section 194I? Any payment under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any – land, building (including factory building), land appurtenant to a building, machinery, plant, equipment, furniture or fittings whether owned by the payee. Unlike the advance rent, no tax is to be deducted on refundable security deposits u/s 194I. Moreover, where any such rent is credited to ‘suspense account’ or to any other account shall also be liable to TDS. At what point TDS is to be deducted? One should deduct TDS and pay tax direct online at the time of credit of rental income to the payee’s account or at the time ...

Across the world many corporations, particularly multinational organizations, now favour ESOP (employee stock ownership plan) as a preferred mode of employee compensation. Unlike the regular salary that the employee draws periodically, this is an in-kind benefit that allows the employee to own a part of the company (in the form of stock ownership) either while undertaking employment or as part of regular reimbursement. This gives the employee a personal interest in the business and maintains the corporate culture in the company. Similar to the ESOP, many corporations also award their employees SAR or Stock Appreciation Rights. These may be declared from time to time as incentives or as bonus. Usually the employee is allocated stock options of the company (at current market value) and can be redeemed anytime after a year (till the period of employment or within any other term specifically mentioned). This means that the amount of appreciation of a specific number of shares of t...