VIA Taxation and Corporate Law Forum organised a Tax awareness session on “CHHOTI CHHOTI BATEIN” jointly with Nagpur Branch of WIRC of ICAI under its initiative of “Financial & Tax Literacy Drive of the ICAI” today at VIA, Nagpur as well as on virtual platform by renowned & Prominent Tax Professionals of the city namely CA Rajesh Loya for Income Tax, CA Shailendra Jain for GST.
Initiating the presentation, CA Rajesh Loya asked the tax payer to be very serious in keeping the records and books of accounts. He began his presentation with importance of regular compliance as against year end compliances. He appealed to the taxpayer to change the mindset to comply with the law. He asked the taxpayer to comply with the law in due spirit and respect. He elaborated about the penal provisions ranging from Rs. 200 per day to 10,000/- per default for various natures of defaults which can further be succeeded by prosecution. He also elaborated the concept of Annual Information Statement recently introduced by the Government at the income tax portal and the future concept of pre-filled income tax returns forms. He insisted on the regular reconciliation of not only bank but also with GST, Debtors, Creditors, AIS, & 26AS. He also advised to make the payment on bill to bill basis and regularly settles the account with the buyer/sellers. He also highlighted the importance of recognizing the obsolete & slow moving items for stock valuation which is not only relevant for finalsiation of balance sheet but also relevant during survey and search proceeding. He appealed the assessee to ensure the timely filing of TDS return, Income Tax Return & Advance tax payment. He also asked the industrialist to keep the records of all the submission done to the department against various notices as it may be relevant in future dates. He also cautioned about various other laws like money laundering, IPC that could have repercussion after the income tax survey. He advised the gathering of the AIR information and CIB, STR & FIU information gathering done by the Income Tax Department. He strongly asked to ensure the payment of statutory dues within time. He also advised the industrialist to maintain the accounts in the non editable mode as the Government is planning to make it mandatory from next year onwards. He also asked the businessmen to keep the staff and accountant well trained so as to ensure proper compliances. Wrong submission of 15G/15H could result in penal consequences in the form of prosecution and the fine also, he cautioned. He advised the assessee not to treat the tax compliance as year end affair and also to check the 26AS frequently. He cautioned the investor about the classification of income in to business income or capital gain income as improper classification could also result in penal consequences. He advised the taxpayer to be cautious in the TDS compliance as the non deduction /payment results in disallowances and results in unwanted tax liability. He also emphasizes the need for correct classification of income as capital expenditure vs. revenue expenditure. He appealed taxpayer to be genuine and honest in paying the tax. He also told the audience about the prosecution proceedings which are initiated throughout the country for wrong filers or non filers. He also highlighted the new provision of taxing income @ 30% and that too without any exemption limit if the source of income remained unauthentic. He informed the audience about the quality scrutiny proceeding which is at 6% presently. He has also thrown the light on deemed dividend, section 14A & notional tax provision.
CA Shailendra Jain said advised the taxpayers to keep the email id and cell number well updated at the portal as all the notices and communication is now done in e-mode. He also advised the audience to keep checking the mail box including the spam folder at regular interval on daily basis. He also advised to login at the GST portal for checking the communication form the department.
He further advised that even though the filing of GSTR 9 & GSTR 9C is not mandatory, still it should be prepared for the purpose of reconciliation so as to avoid future complications. The matching of GSTR 2B as well as GSTR 2A should be done strictly so as to have information about the seller who has not filed GST returns. “A man is known for the company he keeps” and this is highly relevant for GST action and compliances, he spoke. The role of “Artificial intelligence” is increasing day by day and so he cautioned the industrialist to be fair and transparent in the business dealing. He also highlighted the amendment that will be effective from 1st January 2022 which includes the admissibility of ITC only if the same is reflected in GSTR – 2B. He also covered the changes in the GST Tax rates on gold form 3% to 5%, Textile form 5% to 12% and works contract executed for Government department from 12% to 18%. He also asked the audience to update the place of business immediately where there is any change since the ITC can be denied if the address is not correct. Discharge of GST liability is not complete by only payment in cash but offsetting of the liability through DRC 3 is compulsory in such case. There is prescribed contents for stock register, tax invoice, debit note, credit note and other documents and the taxpayers must comply with it accordingly. Taxpayers have to keep track of its aggregate turnover to see whether he is liable for e-invoicing or not. It must be noted that the aggregate turnover for the purpose of e-invoicing will also include branch transfer in addition to sales, he informed.
The programme was largely attended by Industrialists, Professionals, Students, Businessman and general public and was followed by numerous question and answers round. The speakers have replied all the queries of the audience and all have appreciated the initiative done by VIA & VTPA.
Formal vote of thanks was proposed by CA Sachin Jajodia, Convener of VIA Taxation & Corporate Law Forum. Prominently present were many representatives from industries and professionals.
VIA President, Suresh Rathi in his welcome address appreciated the selection of eminent speakers for Chhoti Chhoti Baatein, now-a-days, session is very relevant for industries to resolve their issues related to taxation. CA Saket Bagdia in his opening remarks highlighted about the initiative of Financial & Tax literacy drive of ICAI which covers housewives, students, retired person, etc wherein the objectives is to educate and train people about small financial and tax issues.
At the outset, CA Naresh Jakhotia, Treasurer – VIA briefed about the concept of the programme to the audience and the results of small mistakes in the tax laws. CA Sachin Jajodia, Convener – VIA Taxation & Corporate Law Forum proposed the formal vote of thanks and appealed for regular participation,
Prominently present on the occasion were Jagdish Sharma, President – Vidarbha Tax Practitioners Association, CA Lalit Tambi, Kaushal Mohata, Pramod Kale, Manoj Khole, Arya Agrawal, Yogesh Pandit, Poonam Rathi etc and lot more persons.