VIA Taxation and Corporate Law Forum organised the annual program on Tax awareness “Making March Meaningful” for creating awareness for better tax compliance. Expert speakers, Adv Kapil Hirani for Income Tax, CA Mahendra Jain, Past Chairman of Sales Tax Bar Association, Nagpur on Indirect Taxes (GST) and CA Omprakash Bagdia, Past Chairman of Nagpur Branch of WIRC of ICAI, Nagpur on Company Laws and Precautions Banks Perspective.
CA Naresh Jakhotia, Project Coordinator in his opening remark said law changes faster than fashion, hence proper awareness of taxations and corporate laws, precautions, and compliances executed in the month of March save a lot of amounts. He said we had conducted this program for more than 16th consecutive years and it was always beneficial for attendees.
Vishal Agrawal, President – VIA said that VIA Taxation Forum is organizing the making march meaningful tax awareness program for the benefits of industrial fraternity where the speakers share their knowledge in concise form and in shortest time.
Adv Kapil Hirani, an expert in Income Tax started stating that every business person must prepare tentative financials up to 15th March, which will bring into light many small issues which might be overlooked previously and it will be more appropriate to get the opinion of a professional so that if required corrective measures can be taken within time. He added that PAN and Aadhar should be linked before 31st March. 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 interest payable on loans from NBFCs interest paid to these companies are subject to TDS, which should be complied with. He further stated that industries should take utmost care in depositing employees’ contribution before the due date us per PF & ESIC laws otherwise whole deduction will be disallowed which will result in heavy tax liability. 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 sell any immovable property in the month of March, if possible defer it to the first week of April, this will give two advantages to the seller one indexation of the next financial year will be applicable and the second he will have more time at his disposal for investment to claim any capital gain exemptions. He cautioned before executing a sale deed one should compare if there is any negative difference in stamp duty valuation and sale deed value and where the answer is yes then take a valuation report from CBDT approved valuer before the sale deed so that a valid document is available to support your transaction at the time of assessment.
CA Mahendra Jain stated that under the GST regime, every month’s reconciliation of books of accounts with GSTR1, GSTR3B, and Input tax credits as per GSTR 2B, etc is the need of the hour. He suggested that trade and industry should have a special designated Reconciliation Manager, who will see that all the data is reconciled with the third parties 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 come into effect from 01st April 2023 like compulsory mentioning 6 digit HSN Codes on invoices for all, and e-invoicing might be implemented at for persons having turnover 5 Crs in the coming month. He further advised claiming TDS under GST by filing proper GSTTDS returns in time.
He further added that under GST 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. For exporters Mr Jain has advised to file new or revised LUT as required in the month March itself.
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 Director’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 MSME’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. 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 government’s motto of Ease of doing Business.
From Banking perspective, CA Bagdia stated that banks internal credit rating should be obtained as interest on borrowing as dependent of this internal rating. If the ratings are low steps should be taken to improve the rating and lower the interest cost. HE further stated that term loans should be borrowed for acquiring fixed assets and cash credit must be utilized for funding working capital requirements. He asked the participants to check the projected turnover given to bank and actual turnover achieved, if there is shortage in actual turnover and limit is fully utilized it will not give correct picture to bankers and try to uitilise the limit within the given criteria.
Earlier, VIA President Vishal Agrawal welcomed Adv Kapil Hirani, Ashish Doshi welcomed CA Mahendra Jain and CA Sachin Jajodia welcomed CA Omprakash Bagdia. A good interactive Q and A session was moderated by CA Naresh Jakhotia. CA Sachin Jajodia proposed a formal vote of Thanks.
Prominently present were Kaushal Mohta from Kapilansh Dhatu, Vaibhav Agrawal from Plasto, Shilpa Agrawal from Akash Furnitech, representatives from various industries – Suryalaxmi Cotton Mills, Eros, Spleshjet, R C Plasto, Seetech Solutions, Chanvin Plastics, Ankseals Pvt Ltd, Minor Hydro Systems, Vishwashanti Udyog, CA Jethalal Rukhiyana and CS Amit Rajkotia.
