VIA Taxation & Corporate Law Forum in association with Nagpur Branch of WIRC of ICAI jointly organized the annual programme on Tax awareness â€˜Making March Meaningfulâ€™ for creating awareness for better tax compliances. Expert speakers of the program Adv Kapil Hirani for Income Tax, CA Mahendra Jain, Past Chairman of Sales Tax Bar Association, Nagpur on Indirect Taxes (GST) & CA Omprakash Bagdia, Past Chairman of Nagpur Branch of WIRC of ICAI, Nagpur on Company Laws & Precautions Banks Perspective.
CA Naresh Jakhotia, Treasurer â€“ VIA in his opening remark said we had conducted this program more than 13th consecutive year and which gives good take always to the attendees.
Suresh Rathi, President â€“ VIA said that VIA Taxation Forum is organising the meaningful tax awareness program for the benefits of industrial fraternity.
CA Saket Bagadia, Chairman of Nagpur Branch of WIRC of ICAI said Tax payers should develop habit of tax planning in effective manner rather than indulging in practice of tax evasions. Tax payers should see the trends of changes in tax laws over last decade or so where tax evasions results more than 100% outflow of amount in addition to penalties. So plan your taxes in time and save more.
Adv Kapil Hirani, an expert in Income Tax started stating that precautions should be taken by trade and industry so far as March is concerned as interest, late fees, penalty can be avoided which can arise due to slight ignorance or mistake for which business will be at ultimate loss. He said that while calculating the Advance Tax Surcharge should also be considered. He added that PAN and Aadhar should be linked before March 31 to avoid Rs.10,000 penalty.
He further said that a tentative Balance Sheet should be prepared in any case upto March 15, which will bring into light many small issues which might be over looked previously and it will be more appropriate to get opinion of professional so that if required corrective measures can be taken within time.
Adv Kapil also said that entire expenses pertaining to this financial year should be accountant for in current year only, else if it is found during assessments that any expenses related to previous financial year are claimed in assessment year the expenses will treated as prior period expenses and will be disallowed. He cautioned that if any amount is payable to MSE which are under dispute for any reason a mail regarding to such dispute should be sent to payee stating the reason for dispute and denial of payment, this will help to avoid filling Insolvency application at NCLT against payer. With regards to TDS he said that correct TDS deduction and timely payment not only saves you from disallowance, interest and penalty it saves you more particularly from prosecution.
He further added on TDS issue that interest payable on loans from NBFCs interest paid to these companies are subject to TDS. Deductor should get in touch with NBFCs and ask for interest amount, deduct TDS, pay TDS, issue certificate of deduction and ask NBFCâ€™s to adjust TDS amount against the outstanding loan. Adv Hirani emphasized that take utmost care of accounting and taxation, so that a Clear balance is prepared.
He advised that if someone is planning to sale any immovable property in the month of march, if possible defer it to first week of April, this will give two advantages to the seller one indexation of next financial year will be applicable and second he will have more time at his disposal for investment to claim any capital gain exemptions. He cautioned before execution sale deed one should compare if there is any negative difference in stamp duty valuation and sale deed value and where that answer is yes then take valuation report from CBDT approved valuer before sale deed so that a valid document is available to support your transaction at the time of assessment.
CA Mahendra Jain, Past Chairman ofSales Tax Bar Association, Nagpur on Indirect Taxes (GST) has deliberated his talk on indirect taxes covering GST and Professional Tax. He stated that under GST regime every month or rather say every day is important. Reconciliation of books of accounts with GSTR, GSTR3B and Input tax credits as per GSTR 2B etc is need of the hour.
He suggested that trade and industry should have two managers having special designations first Reconciliation Manager, who will see that all the data is reconciled within the organization and also with the third parties too and second will be Alert Manager who will inform the management what changes are notified so that nothing is missed and interest or penalty is not liable to be paid. He advised that many amendments will be come into effect from April 1, 2021 like compulsory mentioning HSN Codes on invoices for all, e-invoicing for persons having turnover 50 crs etc. business persons should be ready for this as not much of time is left with them in the month of March 2021.
He further advised to choose vendor carefully so that as seemless ITC is available which is very important for any business. As proposed by the Union Finance Minister in this year budget that ITC will not be available unless that sales tax invoice is uploaded in GSTR 1 by the seller.
He further added that GSTR 2A data to be matched to have clear picture of ITC claimed, if there are any mismatch then ask the supplier to amend his return wherever required to give correct ITC. Under GST law it is not only March, it is every month where compliances are to be done. Payment for input supplies should be done within 180 days, otherwise ITC will be denied and also interest liability will arise. He said that unclaimed RCM for current financial year can be claimed in March closing return.
CA Omprakash Bagdia, Past Chairman ofNagpur Branch of WIRC of ICAI, Nagpur on Company Laws & Precautions Banks Perspective said we should understand legislature in lay language. He said earlier private limited companies were given relaxation from compliance of many company law provisions but with introduction of Company Act 2013 the relaxations to private limited companies are diluted and new restrictions and compliances are imposed. Under company law companies cannot avoid filing of requisite form; if any compliance is pending it has to be filed with late fees and penalty.
The directors, shareholders or relative of shareholder while giving or accepting loan to or from company should be checked that all the conditions of company law are complied with. He advised to keep note of all the related party transactions as they are to be reported in Directorâ€™s Report.
CA Bagdia explained the new provisions of Company Laws, where the law is more of compliance than governance. He further deliberated that precaution should be that outstanding payment to SMEâ€™s over 45 days should be avoided, as it will give them chance to file petition at NCLT. He informed that a compulsory half yearly return to be filed by all companies declaring the outstanding over 45 days due from MSME/ SME.
He informed that where a company wants to increase its paid up capital, the issuing company should seek share valuation report and new shares cannot be issued at price below the valuation price. He also explained all the new forms recently brought by Company Law. He finally opined that the increased compliances in all the regulatory laws are diluting the governmentâ€™s motto of Ease of doing Business.
From Banking perspective, CA Bagdia stated that auditors have to report, if the stock and debtors statement is the same which is submitted to Bank, this statement is to be issued on quarterly basis. Thus, the chance of any clerical error in stock and debtors statements submitted to Bank and in financials will be neutralized. He further asked the participants to check the interest charged on loan as they might be some errors in calculation.
Earlier, VIA President Suresh Rathi welcomed CA Saket Bagdia, Chairman of Nagpur Branch of WIRC of ICAI and Adv Kapil Hirani and CA JitendraSaglani welcomed CA Omprakash Bagdia, Past Chairman of Nagpur Branch of WIRC of ICAI, Nagpur. A good interactive Q&A session was followed by the session. Vinod Kalantri, President, Amravati Chambers of Commerce & Industry, Amravati. Nitin Khandelwal, President, Vidarbha Chambers of Commerce & Industry, Akola; Rakesh Surana, President of VPIA; Pankaj Sarda, President of The Bhandara Metal Manufacturers Association; Madhusudan Roongta, President of MIDC Industries Association, Chandrapur; Nandakumar Surana, President of MIDC Industries Association, Yavatmal; Ashokkumar Agrawal, President of Rice Millers Association, Gondia & Federation of Vidarbha Rice Industries Association and Mayur Chumbhalkar, President of Industrial Development Association, Washim were prominently present. CA Sachin Jajodia, Convener – VIA Taxation & Corporate Law Forum proposed a formal vote of thanks.