Filling of 'MSME Form I' by Specified Companies on before 22nd February 2019

MCA on 22/01/2019 has published “Specified Companies (Furnishing of information about payment to Micro and Small Enterprise Suppliers) Order, 2019”.

As per the Order, every company is required to file MSME Form 1 with ROC on or before 22^nd February 2019. MSME Form 1 shall have details of all outstanding dues to Micro or small enterprises suppliers existing on the date of publication of the notification i.e 22^nd January 2019.

Further the companies will also file half yearly return by 31st October for the period from April to September and by 30th April for the period from October to March. This return shall mention details of amount outstanding to MSME for a period of more than 45 days and the reason for the delay.

Since most of the companies do not have information whether the suppliers are MSME or not, FinTax has like to advised that every company should send a mail to all its suppliers from its email to gather the information to confirm their suppliers MSME status. It is advisable that the companies should maintain a record of the information sought from its suppliers for future queries, if any received from MCA. Further the company should continue obtaining the MSME information from all new suppliers

FinTax has prepared system by which this will be complied at our end and you does not have to worry for any details to obtain or for any filling. We will give you the cloud storage link by which all the information of the suppliers relating to MSME will be updated and special login will be provided to you.

Just approach to us and be ensured of all your compliances for MSME filling.

Do contact us

📲 91 9892094003
FinTax
Tax and Finance Consultant

FinTax.ca@consultant.com
FinTax.ca@gmail.com

*Taxpayer need to pay GST from Bank even he have ITC balance from 01.02.2019, Government Amended CGST Act*

The government has amended CGST Act 2017 vide CGST Amendment Act 2018 with various changes w.e.f and one of the important amendment was made in Section 49 of CGST Act by introducing new section 49A after the section 49, which is as under:

*49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilized towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment*

Section 49 (5) of CGST Act 2017 speaks about manner of utilising Input Tax Credit (ITC) for payment of GST output Tax liability, e.g IGST can be Set off against IGST and then CGST and SGST, CGST cane be set off against CGST and then against IGST, and SGST can be set off against SGST and then against IGST.

*Impact of amendment*

But now Government has changed the order of setoff by introducing section 49A w.e.f and now IGST Credit should be set off fully before taking any setoff of CGST or SGST. Which means earlier CGST/SGST ITC was used to set-off CGST /SGST liability, as the case may be, but now IGST Credit has to be 1st utilised fully for payment of IGST then for CGST and then for SGST liability as the case may be, even before utilisation of ITC of CGST or SGST.

*For e.g.*

Say supplier for February 2019 has following data for filing GST 3B

*Output tax liability*
IGST- Rs 200
CGST-Rs 200
SGST- Rs 200
Total- Rs 600

*ITC Available*
IGST- Rs 300
CGST-Rs 200
SGST- Rs 100
Total- Rs 600

*Before 01.02.2019 set off was as under*

*NO TAX IS TO BE PAYABLE*

IGST liability of Rs 200 set off from IGST ITC

CGST liability of Rs 200 set off from CGST ITC

SGST liability of Rs 200 set off from remaining IGST ITC of Rs 100 and SGST ITC of Rs 100

*After 01.02.2019 (Section 49A) set off was as under*

*Supplier need to Pay Rs 100 from its pocket despite of having ITC available*

IGST liability of Rs 200 set off from IGST ITC

CGST liability of Rs 200 set off from remaining IGST ITC of Rs 100 and CGST ITC of Rs 100

SGST liability of Rs 200 set off from SGST ITC of Rs 100 and rest liability of Rs 100 will be paid in cash

*Note*

*IGST credit 1st used against IGST, and also IGST 1st need to be set off against CGST and then only CGST credit can be set off against CGST, by amending the section 49A supplier need to pay Tax of Rs 100 from his pocket*

*FinTax*
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*Key amendments made applicable from 1st Feb, 2019 are as under:*

1. Earlier supplier of goods and services were not allowed to opt for composition scheme but now they can apply if the value of supply of service does not exceed – higher of the amount-

10% of the state turnover in the previous financial year and
Rs. 500000
For Eg. If a taxpayer supplies goods as well as services and had turnover of Rs.40 lakh in the previous Financial year then he can opt in composition scheme if the supply Value of services do not exceed Rs.500000 (Higher of (40 lakh*10% = 400000 or Rs.500000))

2. Reverse charge mechanism shall be applicable to notified registered persons for the purchases made of notified goods but until now neither the class of registered persons nor the category of the specified goods has been prescribed by the Govt. Therefore until and unless notified, RCM will not applicable.

3. Input Tax Credit in relation to Passenger Vehicle having seating capacity of more than 13 , used for other than Personal purpose would be allowed

Due to this input tax credit would now be available in respect of dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles when used for other than personal purpose.

For ex. If a company purchases a bus for its employees conveyance, the ITC of tax paid on such bus purchased would now be available as its more than 13 seater and also not used for personal purpose

4. If ITC is allowed for purchase of motor vehicle as above then, ITC in respect of services of general insurance, servicing, repair and maintenance in respect of those motor vehicles, vessels and aircraft would also be allowed.

5. ITC was not available in respect of food and beverages, health services, travel benefits to employees etc.

But now it has been amended, to allow ITC in respect of such goods or services or both, where the provision of such goods or services or both is obligatory for an employer to provide to its employees under any law for the time being in force.

6. Government has now allowed a person having multiple places of business within the state to obtain separate registration for each place of business irrespective of nature of goods etc. as the definition of business vertical is omitted from the act.

7. Taxpayer can now issue single debit/credit note against multiple invoices there is no need to link the notes to individual invoices. This is a welcomed change, as the compliance burden on the taxpayers would be reduced.

8. Utilization of SGST for IGST liability would not be allowed until and unless credit of s CGST is totally utilized.

*FinTax*
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Bird Eye View on Direct Tax Proposal_Budget 2019

     *FinTax*

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*Extension of time limit for submitting the declaration in FORM GST TRAN-1 under Rule 117(1A)*

Commissioner hereby extends the period for submitting the declaration in
FORM GST TRAN-1 till 31st March, 2019, for the class of registered persons who could not
submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council.

*Order No. 01/2019-GST -Dated - 31st January 2019*

* FinTax*
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KEY INDIRECT TAX PROPOSALS BUDGETS 2019

KEY INDIRECT TAX PROPOSALS BUDGETS 2019

GST

Ø  GST aims to benefit small traders, manufacturers and service providers. Exemptions from GST for small businesses has been doubled from Rs. 20 lakh to Rs. 40 lakh.

Ø  Further, small businesses having turnover up to Rs. 1.5 crore have been given an attractive composition scheme wherein they pay only 1% flat rate and have to file one annual return only.

Ø  Similarly, small service providers with turnover upto Rs. 50 lakh can now opt for composition scheme and pay GST at 6% instead of 18%.

Ø  More than 35 lakhs small traders, manufacturers and service providers will benefit from these trader friendly measures. Soon, businesses comprising over 90% of GST payers will be allowed to file quarterly return for Businesses with less than Rs 5 crore annual turnover.

Ø  Our Government wants the GST burden on home buyers to be reduced and accordingly we have moved the GST Council to appoint a Group of Ministers to examine and make recommendations in this regard at the earliest.

Ø  Assuring minimum 14% revenue of GST to State Government by Central Government.

Customs

To promote the “Make in India” initiative, Government have undertaken rationalization of customs duties and procedures. Government has abolished duties on 36 capital goods. A revised system of importing duty-free capital goods and inputs for manufacture and export has been introduced, along with introduction of single point of approval under section 65 of the Customs Act. Indian Customs is introducing full and comprehensive digitalization of export/import transactions and leveraging RFID technology to improve export logistics.

--
FinTax
Tax and Finance Consultant

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Fintax.ca@consultant.com
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*Wrong Interpretation about NO Income Tax upto Rs 5 lakh to all tax payer, Income Tax is still payable @5% on Income upto Rs 5 lakh*

Finance Minister while presenting the Budget speech has clearly stated that there will not be any Income Tax to the on Income up to Rs 5 lakh, but when Finance Bills came on the records it clear the myth spread on the news media and other websites.

As per the Clause 8 of the Bill seeks to amend section 87A of the Income-tax Act to provide relief to the individual taxpayers by increasing the maximum amount of tax rebate to twelve thousand five hundred rupees from existing two thousand five hundred rupees. The tax rebate shall now be admissible to taxpayers having total income up to five hundred thousand rupees, instead of existing three hundred fifty thousand rupees.

No tax upto total taxable Income of 5Lakh is in the form of rebate under section 87A which means It will be available to only those Individuals whose Total Taxable Income is less than or equal to 5Lakh (after availing all available deductions).

There is no change in Tax slabs and there is no exemption to those Individuals whose total Taxable Income (after all deductions) is more than 5Lakh.