Professional Documents
Culture Documents
What is GST?
The GST is basically an indirect tax that brings most of the taxes imposed on most
goods and services, on manufacture, sale and consumption of goods and services,
under a single domain at the national level.
In the present system, taxes are levied separately on goods and services. The GST
is a consolidated tax based on a uniform rate of tax fixed for both goods and
services and it is payable at the final point of consumption.
At each stage of sale or purchase in the supply chain, this tax is collected on value
added goods and services, through a tax credit mechanism.
Merits of GST
Life gets simpler
GST will replace 17 indirect tax levies and compliance costs will fall
Revenue will get a boost
Evasion set to drop - Input tax credit will encourage suppliers to pay taxes - States and
Centre will have dual oversight - The number of tax-exempt goods will decline
A common market
It's currently fragmented along state lines, pushing costs up 20-30%
Investment boost
For many capital goods, input tax credit is not available. Full input tax credit under
GST will mean a 12-14% drop in the cost of capital goods. Expected: A 6% rise in
capital goods investment, 2% overall.
Make in India
(a)Manufacturing will get more competitive as GST addresses cascading of tax, interstate tax, high logistics costs and fragmented market b) Increased protection from
imports as GST provides for appropriate countervailing duty.
Less developed states get a lift:
The current 2% inter-state levy means production is kept within a state. Under the
GST national market, this can be dispersed, creating opportunities for others
Freeing up online:
State restrictions and levies have complicated ecommerce. Some sellers do not even
ship to particular states. All this will end with GST
Demerits of GST
The Service Tax in India is now 15% but the proposed GST is about 18-20%. All the
services will be Costlier and this one of the Disadvantages of GST Bill on Common
Person.
There are some retail products where the Tax rate is only 4 percent but with GST it will be
costlier like Garments and cloths.
The control on business will be of state and central government so it may be some complex
for businessman
All credits will be online and some penalties are like criminal activity. So it is threatening
for small businessman who are now free from Taxes.
GST is also having three type of taxes and all have to be maintained and this not going too
easy for small Businessman.
Once GST comes all central, state taxes will be subsumed having only central GST and
state GST
There will be tax only on value addition at each stage with producer/seller able to set off his
taxes against central/state GST paid on purchases.
End consumer will bear only GST charged by last dealer
Tax evasion will be reduced as if you do not pay on what you sell you will not get input tax
credit.
WHAT IS PAN
Permanent Account Number (PAN) is a ten-digit alphanumeric
number, issued in the form of a laminated card, by the Income
Tax Department, to any person who applies for it or to whom
the department allots the number without an application.
PAN enables the department to link all transactions of the
person with the department. These transactions include tax
payments, TDS/TCS credits, returns of income/wealth/gift/FBT,
specified transactions, correspondence, and so on. PAN, thus,
acts as an identifier for the person with the tax department.
PAN was introduced to facilitates linking of various documents,
including payment of taxes, assessment, tax demand, tax arrears
etc. relating to an assessee, to facilitate easy retrieval of
information and to facilitate matching of information relating to
investment, raising of loans and other business activities of
taxpayers collected through various sources, both internal as well
as external, for detecting and combating tax evasion and
widening of tax base.
For NSDL
The Vice President
Income Tax PAN Services
Unit,
NSDL
4th Floor, Trade World, A
Wing
Kamala Mills Compound,
S. B. Marg, Lower Parel,
Mumbai-400 013
e-mail.tininfo@nsdl.co.in
Tel No. 022-2499 4650
Fax No. 022-2495 0664
Current Account
Definition and Uses
Who Can Open?
Procedure for Opening
Operation of Current Account
Cheque books and Statements
Interest
Documents needed for opening account
Nomination
Closing an Account
INTERESTS
BANK Do not pay Interest on the current account
RBI prohibits interest on current accounts
NOMINATIONS
A single depositor can in the event of his
death, nominate
Who should be paid the balance lying on
his account.
Nomination may be made in the favor of
individuals only
ADHAR CARD
PAN CARD
ELECTION ID
BUSINESS REGISTRATION DOCUMENTS
Closing an Account
To close an account all the account holders should
write to the bank stating that intent to close the
account.
All unused cheques should be cancelled and
return to the bank.
The bank may also request the customer to close
his Account if;
The customer is no longer desirable person and
the Account has not been operated for a long
time.
5. Service Tax
Service Tax
Service tax is a tax levied by Central Government of India on
services provided or to be provided excluding services covered
under negative list and considering the Place of Provision of
Services Rules, 2012 and collected as per Point of Taxation Rules,
2011 from the person liable to pay service tax. Person liable to
pay service tax is governed by Service Tax Rules, 1994 he may be
service provider or service receiver or any other person made so
liable.
It is an indirect tax wherein the service provider collects the tax
on services from service receiver and pays the same to
government of India. Few services are presently exempt in public
interest via Mega Exemption Notification 25/2012-ST as amended
up to date and few services are charged service tax at abated
rate as per Notification No. 26/2012-ST as amended up to date.
Sales Tax
Sales tax is levied on the sale of a commodity, which is produced or
imported and sold for the first time. If the product is sold subsequently
without being processed further, it is exempt from sales tax.
Sales Tax is a levy on purchase and sale of goods in India and is levied
under the authority of both Central Legislation (Central Sales Tax) and
State Governments Legislations (Sales Tax). The government levies Sales
Tax principally on intra-state sale of goods. States also levy tax on
transactions which are "deemed sales" like works contracts and leases.
In addition to Sales Tax, some states also levy additional tax, surcharge,
turnover tax and the like. Ordinarily, Sales tax is recovered from the buyer
as a part of consideration for sale of goods.
Sales tax is paid by every dealer on the sale of any goods made by him in the
course of inter-state trade or commerce, despite the fact that no liability to tax
is raised on the sale of goods under the tax laws of the appropriate state.
Sales Tax ID number
A state Sales Tax ID number is essentially a business version of your Social
Security number, under which you collect and pay tax for any service or
product you sell, which in turn, qualifies for taxation in your state.
The rule of thumb for Sales Tax is that most services are exempt and most
products are taxable except for food and drugs, though recent history reflects
that states have been gradually adding to the list of services that are taxable.
7. Excise Duty
EXCISABLE GOODS
Goods become excisable if and only if it is
mentioned in the Central Excise Tariff Act 1985
Goods must be movable. Duty cannot be levied
on immovable property .Central excise duty
cannot imposed on plant and machinery
Goods must be marketable .The goods must be
known in the market and must be capable of
being bought or sold
9. Customs Duty
Cont
Customs duty is levied as per the value of
goods or dimensions, weight and other such
criteria according to the goods in question. If
duties are based on the value of goods, then
they are called as ad valorem duties, while
quantity/weight based duties are called
specific duties. Compound duties on goods
are a combination of value as well as various
other factors.
Anti-dumping Duty
Anti-dumping duty may be imposed if the
good being imported is at below fair market
price, and is limited to the difference
between export and normal price (dumping
margin).
Safeguard Duty
Safeguard duty is levied if the government
feels that a sudden increase in exports can
potentially damage the domestic industry.
cont
Shipping and airline agents can file
manifests through this portal, while cargo
logistics and custodians are able to interact
with customs EDI for logistics and cargo
related information. Apart from e-filing, this
portal allows e-payment, document tracking,
online registration for IPR, IE code status,
verification of DEPB/EPCG/DES licenses, PAN
based CHA data etc. There is a 24x7
helpdesk for all the trading partners to solve
issues and collect information.
Provident Fund
Who is applicable
If any employer has equal to or more
than 20 employees, it is mandatory
for him to join employee provident
fund scheme.
If any employees salary exceed Rs
6,500 per month , he has the option
to join scheme.
Benefits
Sickness and extended sickness
benefits
Maternity benefits
Dependants benefits
Medical benefits
Funeral benefits
Contribution
Employer :
8.33% on basic + DA
ESI Scheme
ESI Scheme for India is an integrated
social security scheme tailored to
provide Social Production to workers
and their dependents, in the
organised sector, in contingencies,
such as Sickness, Maternity and
Death or Disablement due to an
employment injury or Occupational
hazard
COVERAGE
The ESI Act 1948 applies to
Non seasonal Factories using power in
and Employing ten (10) or More persons
Non seasonal and non- power using
factories and establishments employing
twenty(20) or more persons
Employees
of
the
Factories
and
Establishments in receipt of wages not
exceeding Rs.7500 /- Per month are
covered under this Act.
ADVANTAGES OF EMPLOYERS
1. Employers are absolved of their
liabilities
of
providing
medical
facilities to employees and their
dependents in kind or in the form of
fixed cash allowance, reimbursement
of actual expenses, lump sum grant
or opting for any other medical
insurance policy of limited scope
unless it is a contractual obligation of
the employer
Benefits to Employees
ESI Scheme Major Social Security Benefits
in Cash and Kind include
1.
2.
3.
4.
Benefits to Employees
In addition, the Scheme also provides
some other need based benefits to
insured workers. These are:
i). Funeral Expenses to a person who
performs the last rites of IP
ii). Rehabilitation allowances for self
iii). Vocational Rehabilitation - for self
iv). Old age Medicare for self and
spouse
v). Medical Bonus for insured women
and
Medical Benefit
Medical Benefit means Medical care of IPs
and their families, wherever covered for
medical benefit.
The Standard medical care consists of outdoor treatment, in-patient treatment, all
necessary
drugs
and
dressing,
pathological and radiological specialist
consultation and care, ante-natal and post
natal care, emergency treatment etc.,
Out-door medical care is provided at the
state Insurance Dispensaries or Mobile
Dispensaries manned by full-time doctors
(service system) or at the private clinics
of Insurance Medical Practitioners (Panel
System)
Medical Benefit
Insured worker and members of his family are
eligible for medical care from the very first day of
the worker coming under ESI Scheme.
A worker who is covered under the scheme for
first time is eligible for medical care for the period
of three months. If he/she contributes at least for
78 days in a contribution period the eligibility is
there up to the end of the corresponding benefit
period.
A worker is also eligible for extended sickness
benefit when he/she is suffering from any one of
the long term 34 diseases listed in the Act. This is
admissible after the worker has been under ESI
these conditions are satisfied medical benefit is
admissible for a maximum period of 730 days for
the IP and his/ her family.
Sickness Benefit
Sickness signifies a state of health
necessitating Medical treatment and
attendance and abstention from work on
Medical grounds. Financial support
extended by the corporation is such a
contingency is called sickness Benefit
Benefits to Employees
To qualify for this benefit, contributions
should have been payable for atleast 78
days in the relevant contribution period.
The Maximum duration for availing
sickness Benefit is 91 days in two
consecutive benefit periods
Standard benefit rate this rate
corresponds to the average daily wage of
an
Insured
person
during
the
corresponding contribution period and is
roughly half of the daily wage rate.
Maternity Benefit
Medical Bonus
Medical Bonus is lump sum payment
made to an Insured woman or the
wife of an insures person in case she
does not avail medical facility from
an ESI hospital at the time of delivery
of a child. This bonus of Rs. 250/- has
been increased to Rs. 1000/- from 1st
April 2003
Disablement Benefit
a). Temporary disablement benefit :
In case of temporary disability arising out
of an employment injury or occupational
disease.,
Disablement benefit is
admissible to
insured person for the entire period so
certified by an Insurance Medical officer /
Practitioner for which IP does not work for
wages.
The benefit is not subject to any
contributory condition and is payable at a
rate which is not less than 70% of daily
average wages.
However, not payable if the incapacity