Page 13 - Tax

6 years of GST: Rs 1.5 trn monthly tax revenues becomes 'new normal'

Six years after the rollout of the biggest indirect tax reform in India, Goods and Services Tax (GST) revenue of Rs 1.5 lakh crore every month has become a new normal and tax officers are focusing on dealing with fraudsters who are adopting newer modus operandi to game the system, causing loss to the exchequer. To apprehend black sheep, who operate as syndicates and create fake entities on the basis of forged documents to claim input tax credit (ITC), tax officers have started using data analytics, artifical intelligence and machine learning aiming to curb evasion, which was over Rs 3 lakh crore since inception of GST. It was over Rs 1 lakh crore in 2022-23. Thinktank Global Trade Research Initiative (GTRI) said the most critical pending GST reform is upgradation of GST Network to prevent fake supplies and fraudulent claims of Input Tax Credit (ITC). Data analysis and physical checks alone cannot completely solve the problem. The GSTN should enable linking of invoice level informati

I-T dept issues notices to 15 social media influencers over low tax payment

The social media influencers came under the radar of the I-T department after posting their travel to exotic locations and luxury shopping on social media platforms

Tax hike on international transactions to come into effect from Oct 1

No change in rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of mode of payment, for amounts up to Rs 7 lakh per individual per annum

I-T dept tweaks exemption norms for charitable institutions, seeks details

The income tax department has tweaked disclosure norms for charitable institutions claiming I-T exemption by seeking additional details. As per amendments to the Income Tax Rules, which will come into effect from October 1, charitable institutions will have to now disclose whether the activities undertaken by them are charitable, religious or religious cum charitable. The amendment also includes a declaration under which the charitable institution will have to give details of donations received from a person in excess of Rs 2 lakh in a single day. The details to be furnished include the name of the payer, address, amount of payment and PAN (if available). Nangia Andersen LLP Partner Vishwas Panjiar said the government had recently revamped the registration requirement applicable for charitable organisations for claiming tax exemption or obtaining an 80G certificate under the Act. "The government have now made consequential amendments in the Income-tax Rules (Rule 2C, 11AA and 17A)

TCS levy: Credit card users may have to declare forex transactions to banks

The I-T department is in talks with the RBI and other stakeholders to firm up a mechanism for distinguishing whether the expense is towards medical/education which attract a 5 per cent TCS

GST council may mull steps to prevent fake generation of ITC: Official

GST Council in its meeting next month, likely to discuss measures to ensure strict provisions for preventing fake generation of Input Tax Credit, aiming to prevent tax evasion, a senior official said

CBIC to assign risk rating to GST applications, taxmen to verify documents

In order to check fake GST registration, CBIC will assign a risk rating to all applications and tax officers will cross-verify the documents submitted by the applicants with municipal records. The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday issued instructions to field offices after it came to light during the ongoing two-month special drive that fraudsters have misused PAN and Aadhaar numbers of people to obtain GST registrations. In the ongoing all-India drive, Centre and State GST officers have detected over 15,000 fake registrations and are initiating punitive action against the perpetrators. They are also trying to find out the mastermind who are the real beneficiaries. As per the instructions, the Directorate General of Analytics and Risk Management (DGARM) and GST Network would give a risk rating -- High, Medium and Low -- to each application for registration, based on data analytics and risk parameters. This will facilitate a "targeted approach in ..

Last date to pay first installment of advance tax announced; check details

Taxpayers have until June 15 to pay 15 per cent of their estimated tax liability

Centre releases Rs 1.18 trillion as tax devolution to state govts

The government is releasing an additional advance installment to the states in this month

Govt releases 3rd instalment of tax devolution of Rs 1,18,280 cr to states

The Centre on Monday released the third instalment of tax devolution to states amounting to Rs 1,18,280 crore, as against normal monthly devolution of Rs 59,140 crore

Clarification on applicability of TCS on overseas credit card spends soon

The tax department will soon come out with a clarification in the form of FAQs to distinguish between expenses incurred on personal visits and business trips for levy of 20 per cent TCS on overseas credit card spends from July 1, a senior official said on Friday. Following a notification which brought credit card spends under LRS, concerns have been raised on how personal and business expenses would be segregated by the banks who will be required to deduct the TCS on such expenses. Finance ministry joint secretary (Tax Policy and Legislation) Raman Chopra said the government would soon issue a clarification on the mode of applicability of the TCS provision. "There has been a lot of discussion with the finance secretary, the revenue secretary and the finance minister. We are certainly going to come up with some clarifications and FAQs on that and that will clarify the position beyond any reasonable doubt in what manner TCS is to be collected and to what extent threshold is available

SMEV urges Centre to levy additional green tax on ICE two-wheelers

The Society of Manufacturers of Electric Vehicles (SMEV) has called upon the government to levy an additional green tax on two-wheelers with internal combustion engine to incentivise EV adoption and help in the reduction of pollution creating crude oil imports. The Green tax would also rationalise the expected drop in sales of EV on account of reduction in subsidies starting this month, the industry body representing electric vehicles said in a statement. SMEV believes that an increase in taxes to the tune of 100 basis points on traditional polluting ICE 2-wheelers will be required to fund subsidies for electric two-wheeler vehicles and put the FAME scheme back on track, it added. SMEV Director General Sohinder Gill said it is time that the EV sector is allowed to compete at par with ICE vehicles. "While we are tackling awareness and adoption issues as an industry, the biggest hurdle is the cost of ownership as India is a price sensitive market. "Additional Green Taxing of ICE ...

On the agenda: GST Council likely to approve tribunal blueprint this month

Operational framework to pave the way for the tribunal to be functional at Centre, state levels

Himachal collected Rs 1,004 cr tax in this fiscal till May 31: Official

Department of State Taxes in HP has collected Rs 1,004 cr in this fiscal till May 31 against Rs 890 crore collected during this period in the last fiscal, registering a growth of 13 per cent

Explained: What are the tax implications of depositing Rs 2,000 notes?

Are you depositing Rs 2,000 notes in the bank? Will your deposits be monitored? Will you need to pay any tax on it? How can you avoid a tax notice on these deposits? Read to find the answer

Income Tax department notifies e-appeals scheme to ensure electronic filing

The Income Tax department has notified the e-appeals scheme, which will ensure electronic filing and processing of appeals. Under the 'e-Appeals Scheme, 2023', the Joint Commissioner (Appeals) shall dispose of the appeals filed before it or allocated or transferred to it. The scheme also provides for personal hearings through video conferencing in appeal cases, where the assessee has filed an appeal against the assessment order of taxmen. Nangia Andersen India Partner Neeraj Agarwala said the implementation of e-appeals is a progressive step towards a more efficient, accessible and accountable tax system. "By taking the necessary precautions, such as meticulous preparation and providing comprehensive supporting documentation to substantiate their claims, taxpayers can look forward to speedy disposals. However, a lot will depend on the implementation of the procedures and providing adequate time for response to the taxpayers," Agarwala added.

21 nations get angel tax exemption. Here’s what this means

Govt plans to link tax collected at source with tax deducted at source: CEA

The government is attempting to link tax collected at source for payments made by individuals with tax deducted from their income sources, a move that will help in ensuring cash flows of the individual taxpayers are not impacted, according to a senior official. The move also comes at a time when the government is set to impose a 20 per cent Tax Collection at Source (TCS) on certain international spends from July 1. Generally, TCS is the tax collected by a seller at the time of sale of goods or services while Tax Deducted at Source (TDS) is the amount levied as tax by the government. The government has exempted transactions up to Rs 7 lakh from the TCS, providing relief to small taxpayers. So, bulk of the transactions made by most will not be covered under 20 per cent TCS, Chief Economic Advisor (CEA) V Anantha Nageswaran has said. Defending the decision, he said, "And it (government) also attempts to link the TCS with your TDS such that if there are TCS payment made by you it has t

Clarity needed on TCS levy on credit card payments, says tax experts

Tax experts on Monday sought clarity on the applicability of TCS on foreign payments of over Rs 7 lakh made via credit cards, saying it would be difficult for the I-T department to differentiate between personal and business visits. The government on May 16 issued a notification under Foreign Exchange Management Act (FEMA), which effectively imposed a 20 per cent TCS on international credit cards (ICC) spends in foreign exchange. ICC spending was brought under the RBI's liberalised remittance scheme (LRS). However, expenses incurred by an employee on a business visit when such expenses are borne by the employer, do not come under LRS and hence were exempt from 20 per cent Tax Collected at Source (TCS). Amid backlash from various sections of people, the government on May 19 decided to exempt ICC payments up to Rs 7 lakh a year from TCS. Experts, however, feel still there are grey areas which are needed to be addressed by the Income Tax department. Nangia Andersen India, Partner, Ne

State Taxes, Excise Department plans to enhance audit enforcement using AI

The State Taxes and Excise Department is all set to introduce modern techniques of audit enforcement, including the use of Artificial Intelligence (AI), to enhance revenue, officials said on Monday. The cabinet on May 17 gave sanction to the Revenue Enhancement and Capacity Augmentation project which will have special tools for data preparation to take prompt action against the defaulters thereby increasing the revenue of the State. By employing cutting-edge tools and techniques and hiring experts, the department intends to address tax evasion, ultimately bolstering the State's coffers. The implementation of this project will provide real-time data on GST defaulters, ensuring better oversight and informed decision-making process, a statement issued here said. The project aims to overcome the obstacle of limited manpower for prompt analyzing taxpayer data to identify tax losses by leveraging AI technology, enabling fast identification of revenue leakages and providing precise ...