What is composition Scheme IN GST?

Composition Scheme u/s 10 of cgst act 2017 is a simple scheme under GST can be opted by those taxpayers whose turnover is less than 1.5 Crores. Or Rs 75 lakhs for following below states

i) Arunachal Pradesh, (ii) Manipur, (iii) Meghalaya, (iv) Mizoram, (v) Nagaland, (vi) Sikkim, (vii) Tripura, (viii) Uttarakhand.

>Small taxpayers can pay GST at a fixed rate of turnover.

For Service provider?

>service provider can opt into the Composition Tax Scheme,threshold turnover is Rs. 50 lakhs.

>As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of 10% of turnover, or Rs.5 lakhs, whichever is higher.

>Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.

conditions for availing Composition scheme? 

>No Input Tax Credit can be claimed 

>Can not supply GST exempted goods.

>Tax paid on RCM basis.

>Has to mention the words ‘composition taxable person’ on every notice, Bills or signboard displayed prominently at their place of business.

A big relief for Manufacturer

>A manufacturer or trader can now also supply services to an extent of 10% of turnover, or Rs.5 lakhs, whichever is higher.(Amendment)

>For composition scheme a taxpayer has to file GST CMP-02 for registration.

>Dealer has to issue a bill of supply.

>Mention “composition taxable person, not eligible to collect tax on supplies”  at the top of the Bill of Supply.

Rates Applicable (cgst+sgst)

Manufacturer and traders.            1%

Restaurant not serving alcohol     5%

Other service provider.                   6%

Return? 

A dealer is required to file a quarterly return GSTR-4 by 18th of the month after the end of the quarter. 

An annual return GSTR-9A has to be filled.

Disadvantage 

1. No ITC claimed 
2. No Interstate Supply
3. Not eligible to sell exempt goods
4. Not eligible to sell through E-commerce operator.

Advantage

1. Less Paper Work
2. Single Rate of Taxation 

Here above discussed about Composition Scheme.

If any kind of suggestions or Amendments  that will be highly appreciated.

Procedure for Registration u/s 12A of the Income Tax Act’1961

TRUST,SOCIETY,SECTION-8 COMPANY

Hello everyone after sharing my last  article regarding "days after GST introduced in India" it's my pleasure to introduce my new article regarding that is the procedure for registration of TRUST,SOCIETY& SECTION-8 COMPANY under section 12A of the Income Tax Act 1961 and procedure.

So here we will discuss that how the trust,society & section-8 company will registered. Section 12A deals with registration of trust and section 12AA deals with procedure for registration of trust.

Well there is a question, that why should we get register under Income Tax Act 1961 as per section 12A or 12AA?The answer is very simple for eligible to claim benefits under Income Tax Act 1961.

Application for 12A registration is made in form 10A it is prescribed in rule 17 of the Income-Tax rules 1962.

1:Application has to be  filed with jurisdictional commissioner of income tax.

2:Documents regarding for registration?

An application in Form 10A has to be filed annexure 1.

3:Supporting documents regarding creation of Trust two copies of the accounts of the trust for not more than 3 years.

4:Society copy of registration certificate and copy of memorandum of association of society, in case of Section 8 company copy of certificate of incorporation and copy of MOA and AOA, in case of the trust copy of Trust deed .

5:The last one is pan number of  respective organisation.

Now the work will be done by Commissioner for granting registration certificate under section 12A of the Income Tax Act.

On receipt of an application for registration of Trust commissioner shall called for the documents and information as he thinks fit. 

After satisfying himself he shall pass an order in writing.

If he is Not satisfied he shall pass an order in writing refusing for registration of that trust but reason must be provided.

By Refusing registration shall be passed before the expiry of the six month from the end of the month in which application was received under section 12A.

As per section 12(2) if commissioner  fails to pass registration certificate before the expiry of six month from the end of the month in which the application was received IT results deemed grant of registration.

And yes commissioner has power of cancellation of registration granted under section 12A.

we will discuss in our next article that in which circumstances,the possibility of rejection/cancellation of an application 

{ PIC SOURCE GOOgle }
certificate of registration.
HAVE A NICE DAY
THANK YOU.

Days after GST introduced in India

GOODS AND SERVICES TAX

well sir/madam,

As you know its totally a new concept in INDIRECT TAXATION field in Indian TAX structure.

By making comic GST may be says as (good knight,sweet dream,take care) yes i will completely agree with these tag in the sense by saying bye bye to all previous different  indirect tax laws but exclude Custom.

Now let me welcome GST as (good and subidha tax) which is tagged by our honorable prime minister Sri Narendra Modi ji, well sounds fun isn't it?

Allow me sharing my experiences what practically happening in my surroundings

IN CASE OF  PROFIT MAKERS.

The prices will never fall as claimed by the Government for no business person would reduce the existing costs but he will be interested in making more profits instead. This is true because the main motive of an enterprise is to earn profits . Say, for example , I go to a hotel and eat food worth Rs.100 and according to the old rate I am charged with 18% tax i.e 118 will be the bill rate , but now with the new tax rate under G.S.T the total will be 105 . But no enterprise will want to lose that extra Rs.13. Hence, this will be the new profit for the firm. This proves the fact that the prices will not fall as claimed.

One of my client got registered on GSTN & guess what? he is not filing his monthly RETURNS & said let see what happen?what govt. will do? He got registered himself on GSTN  ONLY for LOAN purposes.

I HOPE, you all are enjoying my blog and kindly suggest me for betterment.

FEEL FREE TO ASK IF ANY.

THANK YOU 

HAVE A NICE DAY.