Bank TDS and Reconciliation Issues
You may have noticed that tax has been deducted at source (TDS) by your bank on 31st March for your bank fixed deposits (FDs). Banks deduct tax @10% when interest on your FDs crosses Rs10,000 in a financial year, unless you file Form 15G/15H. Even though banks deduct this tax on the interest amount, it does not complete the taxpayer’s responsibility. If your tax slab is higher than 10%, you...
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  • GSTN to be nationalised, finally
    Following pressure from several quarters, including Bharatiya Janata Party BJP) leader Dr Subramanian Swamy, the Goods and Services Tax (GST) Council, on Friday, decided to convert the Goods and Services Tax Network (GSTN) into a government owned company. 
    The GST Council in its meeting decided on "Acquisition of entire 51% of equity held by the non-governmental institutions in GSTN amounting to Rs5.1 crore, equally by the Centre and the States governments and allow GSTN Board to initiate process for acquisition of equity held by the private companies".
    At present, Central and State Governments hold 24.5% stake each in GSTN. The balance 51% equity is with non-government financial institutions like HDFC Bank, HDFC Ltd, ICICI Bank, NSE Strategic Investment Corp (10% each) and LIC Housing Finance Ltd (11%).
    Majority of the GST processes including registration, filing of returns, payment of taxes, processing of refunds is IT driven and GSTN is handling large-scale invoice level data of lakhs of business entities including data relating to exports and imports. Considering the nature of ‘state’ function performed by GSTN, the Council felt that GSTN be converted into be a fully owned government company.
    The GSTN Board will be allowed to continue with its existing staff at existing terms and conditions for up to five years. The Board will have flexibility of hiring people through contract on the terms and conditions similar to those used by GSTN till now while hiring regular employees.
    On 28 March 2013, the central government created GSTN as special purpose vehicle (SPV) and a private limited, not-for-profit company under Section 25 of the Companies Act, 1956 (Section 8 of the Companies Act, 2013). GSTN was expected to provide shared IT infrastructure and services to Centre and States Governments, taxpayers and other stakeholders for implementation of GST across the country. 
    On 18 June 2017, Dr Swamy had demanded that the Government nationalise GSTN and sack the GSTN Chairman for what he termed as a “monumental fiasco” of being unable to activate GST by 1 July 2017.
    Earlier, in a letter to Prime Minister Narendra Modi in September 2016 , Dr Swamy had requested a stay on operations of GSTN due to 'foreign control' in its shareholding. 
    Dr Swamy, in a letter had stated, "...the GSTN, which is a data processing and tax revenue collection private limited company, which was never security cleared by the Home Ministry, whose clearance is mandatorily required. I strongly urge you to therefore to direct the complete stay of all operations of the presently constituted GSTN and that it remains in operational till it is reconstructed according to our national interest and after security certification by the Home Ministry."
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    Anand Vaidya

    3 years ago

    Does the gov have the guts to publicly thank Dr. Swamy for his foresight and recommendation?

    Total revenue collection under GST for 8 months was Rs7.19 lakh crore
    Total revenue collected under Goods and Services Tax (GST) for eight months upto March this year has been Rs 7.19 lakh crore with an average monthly collection of Rs 89,885 crore during the period.
    "Including the collection of July 2017, the total GST collection during the financial year 2017-18 stands provisionally at Rs. 7.41 lakh crore," an official statement said here on Friday.
    This indirect tax regime was rolled out on July 1, 2017.
    Of the total revenue collection, Central GST was Rs 1.19 lakh crore, State GST was Rs 1.72 lakh crore, Integrated GST was Rs. 3.66 lakh crore (including Rs. 1.73 lakh crore on imports) and cess was Rs. 62,021 crore (including Rs. 5702 crore on imports).
    While the tax on domestic supplies in a month is collected through the process of returns and gets collected in the next month, IGST and cess on imports gets collected in the same month. Therefore, during the current year, GST on domestic supplies has been collected only in eight months from August 2017 to March 2018, IGST and cess on imports has been collected for nine months, from July 2017 to March 2018, the statement explained.
    The SGST collection during the year, including the settlement of IGST has been Rs 2.91 lakh crore and the total compensation released to the states for a period of eight months during the last financial year was Rs 41,147 crore to ensure that the revenue of the states is protected at the level of 14 per cent over the base year tax collection in 2015-16.
    The finance ministry statement said the revenue gap of each state is coming down over last eight months. The average revenue gap of all states for last year is around 17 per cent.
    It said there has been a progressive improvement in the compliance level observed during the course of the year.
    The compliance level as on the due date has steadily increased and, by the end of the financial year, has reached to an average of 65 per cent from around 55-57 per cent observed during initial months. The cumulative compliance levels (percentage of returns filed till date) for initial months has crossed 90 per cent and for July, 2018, has reached 96 per cent.
    The statement said state-wise variations in the compliance level were observed till due date. However, including delayed filings, the State-wise compliance levels converge over a period of time.
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.


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