VIA Taxation & Corporate Law Forum organized the annual program on Tax awareness “Making March Meaningful” for creating awareness for better tax compliances. Expert speakers, 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, Project Coordinator in his opening remark said we had conducted this program more than 15th consecutive year and which gives a good take always to the 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 insisted that the taxpayers must update email id at the portal as all the notices are now served electronically by uploading it on the portal. He highlighted that 31st March is mostly the last date for completing all pending assessments. Verification at the income tax portal could result in avoidance of ex-parte assessment. He further said that in faceless assessment and faceless appeals, the reply must be filed on or before the time else the reply option will be blocked and assessment order will be passed without presenting proper hearing to the assessee.
He strongly suggested that every business entity must prepare tentative financials upto 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 is subject to TDS which should be complied to avoid the TDS. He further stated that industries should take utmost care in depositing employees’ contribution before the due date as 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. Non-payment to MSME within prescribed time will result in hefty tax demand liabilities as the expenses will be disallowable in view of section 43B(h). He discussed the provision of timely payment to MSME at length with various illustrations and situations. He also discussed the ongoing issues with regard to bogus purchases issues taken by the GST department and its repercussions in the Income Tax Law. He also advised the audience for making a e-mail if there is a dispute with regard to the quality or other issue of the product and services.
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 executing the 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 taking 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, stated that under the GST regime every month 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, e invoicing might be implemented for persons having turnover 5 Crs in coming month. He further advised to claim 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 the current financial year can be claimed in the 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. He added that Private limited companies having paid up capital more than 4 cr or annual turnover over 40 cr will have to compulsorily get their shares in demat. He added that all companies are mandated to file half yearly returns with regard to payment outstanding more than 45 days to MSME and this will have more emphasis from this financial year. He further added that the directors, shareholders or relatives of shareholders while giving or accepting loan to or from the 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 the Director’s Report. 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 on 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 the bank and actual turnover achieved, if there is shortage in actual turnover and limit is fully utilized it will not give the correct picture to bankers and try to utilise the limit within the given criteria.
Earlier, VIA President Vishal Agrawal welcomed Adv Kapil Hirani, Ashish Doshi welcomed CA Mahendra Jain & CA Sachin Jajodia welcomed CA Omprakash Bagdia. A good interactive Q&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, CA Saket Bagdia, representatives from various industries – RC Plasto, Gimatex Inds, Mecgale Pneumatics, Nice Software Solutions, Tru Form Engineers Can Group of Inds, Yash Forgings, Diffusion Engineers, Dr. G.M. Taori CIIMS, Kapilansh Dhatu Udyog, Pankaj Khadse & Association, Tuvis Technologies & Innovations & professionals.