VGNC

  Rental from Immovable Property in GST Regime The advent of GST has got impact on most sectors in India and rentals obtained from immovable properties aren’t exception to the new taxation either.  In India, the whole idea of giving rent for residential or commercial purpose is too common.  In the  GST regime , the issue of ‘renting of immovable property’ is addressed in schedule II.  The whole notion of taxation under GST for rentals from immovable properties is tricky. The schedule categorically includes two situations. If the whole purpose of opting for rent is residential in nature, there will be exemption for the user. Otherwise, if it is used with commercial viewpoint, 18% tax is applicable on the rental with reference to GST. Interstate or intrastate supply? The dilemma In the service sector, whether a supply is interstate or interstate is indeed a tricky proposition in the GST era. The GST regime clearly categories Central tax and State tax, which is ver...

  Works Contract- Definition A works contract is termed as a combination of supply of services and transfer of goods.  A few such examples of works contract are fabrication, construction, erection, renovations and repairs, installation of plant and machinery so on and so forth.   What the Previous Law States? As per the law  pre-GST , there is no need of any transfer of property, nor any other contract to be termed as works contract. Moreover, it comprised of three kinds of taxable activities. However, if a new product is to be formed during the course of completion of a works contract, such creation would be classified as a taxable and accordingly Central Excise duty is levied. This basically implies that a single activity has many facets attached to it which requires it to be taxed under various laws. Not only does this lead to confusions with regards to the treatment and taxability of the various aspects but also is one of the many reasons behind the development o...

  How Will Corporates Be Able to Take Advantage Of The Input Tax Credit System In The GST Era? Rolled out on the 1 st  of July,  GST  has recorded a historic change in India’s tax reforms and has replaced a gamut of indirect central and state levies. This change is not only going to bring about a positive change for FMCG companies but has also managed to remove redundant reforms which critics argued, have blunted economic competitiveness in the country. One such enormous change is the elimination of cascading effect of taxes which was widely prevalent in the previous regime. With the introduction of input tax credit across the  supply chain  (from the manufacturing stage till it reaches the consumer) and across state borders, GST will make the transition easy and seamless for companies and businesses when it comes to claiming input tax credit (ITC). Let’s highlight some of the main points of ITC which will help you in comprehending everything you want to kn...

  For any economic year, 31 st   July is the due date for filling income tax for everyone. No doubt, filling an income tax return is not at all the easiest tasks in India as the whole system is undergoing changes in the digitized era. In this transitional stage where economic reforms are being carried on looking at the national and international scenario, every responsible citizen has to be aware of some necessary areas which are pivotal to filling income tax return.   Linking Aadhar number to Income Tax :  The finance Act 2017 makes it mandatory for every citizen to quote Addhar while filling incoming tax returns.  Thus it has become necessary to link Aadhar with your Permanent Account Number (PAN). Users simply need to visit  www.incometaxindiafiling.gov.in  and have to click on link Aadhar tab.  The link will be verified after confirmation from UIDAI authorities.  For those who do not have Aadhar, have to apply for it immediately and quote...

  What is Inventory Shrinkage? In today’s competitive retail world, retailers are tasked with more responsibility than ever before. Not only do they have to deal with increased competitive pressures and ever-shrinking margins but also the age old problem of shrinkage. Although shrinkage occurs primarily in retail businesses it’s also applicable to trades and manufacturing businesses as well. Shrinkage has seemingly occurred when the physical count of your inventory doesn’t seem to match up with the merchandise records you ought to have. Before a retailer can tackle shrinkage, they must first determine the root causes behind it and then give it a priority in terms of return on investment.  Inventory shrinkage  can be as a result of several factors such as:   Employee theft Misplaced stock Pricing errors Shoplifting Shipping errors Leaving perishable products out of refrigeration Inefficient record keeping Physical damage owing to poor handling techniques or weather co...

  What is an Inventory Audit? Inventory audit also referred to as stock audit, refers to an accounting process which takes into account a company’s total stock of physical goods. This is especially needed in manufacturing companies where raw materials need to be converted to finished goods and is a quintessential process of maintaining a healthy business and for it to succeed.  Inventory audit  is considered mandatory for keeping account of the quantity and quality of raw materials remaining in stock. This is because anything more than 70% of product cost involves material cost. Additionally, inventory audit is absolutely necessary for organisations with multiple branches as they tend to have a massive stock of physical goods. Audit of essential physical inventories is generally conducted at or near the end of the year.   Importance of Inventory Audit Inventory tends to be the easiest assets to manipulate and hence it’s essential to keep a constant vigil over it. Her...

  It is important to keep an accurate eye on inventory so that the number of items in store is always perfect. It not only helps you to manage better but it also allows you to be in control. Having inaccurate data can result in inventory management breakdowns. It may sound a bit too traditional but knowing the numbers is a critical aspect of inventory management. Knowing the exact number of items lets you manage inventory efficiently and accurately. If you have no idea of the exact stock, you will be prone to make assumptions rather than informed decisions. That’s why it is always important to know the accurate number of items in order to manage damages, slow-moving products, and theft etc. When it comes to inventory, it’s always a numbers’ game.   Keep an eye on the status of items As an efficient store manager would tell you, keeping an account for stock for items in different locations or for the items that are in consignment is always important to control inventory effecti...

  GST: Guide for filling GSTR-3B As GST has rolled out from July 1 st , 2017 GSTR 3B is its first return to be filed by the assesses. Many of the assesses are facing issue in filling its GSTR 3B. Here is the step by step guide : 1. After login, select Return Dashboard. 2. Select Financial Year 2017-18 and Month July. Click Search and Select GSTR-3B. 3. Declare your liabilities and ITC claims in Section 3.1 and 4 respectively by clicking on the tiles and furnishing the required information. Transitional ITC cannot be claimed in GSTR 3B. It can be claimed only through TRANS 1. 4. Enter details of interest, if payable, in Section 5.1. Late fee will be computed by the system. 5. Click on Save GSTR-3B button. After you save the data, Submit button will get enabled. Please note that after submit, no modification is possible. Hence ensure that details are filled correctly before clicking on Submit button. 6. On clicking Submit GSTR-3B button, System will post (debit) the self-assesse...