The CharteredAccountant Student

WICASA - Akola BranchE-Newsletter-June 2019

PLATINUM JUBILEE ICAI

INDEX

� PRIME MINISTER MASSAGE

� ICAI MOTO

� WICASA CHAIRMAN’S COMMUNICATION

� ARTICLES

� HIGHLIGHTS OF WICASA OF ICAI INDUSTRIAL VISIT

MUMBAI PHOTOGALLERY

� UPCOMING EVENTS

� DUE DATE CHARTS OF MAY

WICASA CHAIRMAN’S COMMUNICATION

Warm Greeting to all the readers!WICASA strives to equip students with the skills and knowledge

required to be inculcated as a part of CA curriculum. The unique feature of this

platform made available to students by ICAI is that it promotes participation

and sharing of the skill-set and knowledge acquired, so as to ensure an equal

opportunity and environment for learning. The motive of WICASA is to

provide a platform to students to make them capable of being dynamic and

acquiring leadership qualities.

In furtherance of the objective of WICASA, the President of ICAI CA

Prafulla P. Chhajed personally addressed students on 5 th June 2019 at Akola

Branch of WIRC of ICAI. The guidance address was followed by an

opportunity to students to be a part of an interactive session with the Honorable

President. Also, an industrial visit for students to NSE and SEBI has been

arranged on 20th June 2019 so as to familiarize students with the working of

these economic backbones of the nation. So as to be able to utilize all the

opportunities made available, I invite students pursuing the Chartered

Accountancy course to be a part of the team and continually strive to enrich

their learning experience with WICASA.

CA Jalaj Baheti

WICASA Chairman, Akola Branch of WIRC of ICAI

PREFACE

The E-Newsletter of Western India Chartered Accountant Students

Association (WICASA), Akola is one of the channel to reach student of Chartered

Accountancy Profession to keep them updated with the latest amendments in Law and

Various Acts. Its motive is to encourage stud ents to come forward with their writing

skills and actively participate in WICASA Events.

The team behind this E-Newsletter have put their hard efforts for collective

improvement of pursuant of these common professions. In this regards, we request

you to contribute to these “Initiative of Monthly E-Newsletter” by enthusiastically

providing quality materials (articles, legal updates, case law analysis, crosswords

puzzles).

We believe that, with your active participation, we shall be regularly providing

you the E-Newsletter on Timely Basis. Hope this E-Newsletter will be useful to you

all. Let us make this initiative “both way efforts” and a grand success.

The views expressed in this E-Newsletter are of respective auditors and

neither the Akola Branch of ICAI nor WICASA, Akola authenticate such views.

Yet maximum efforts are put to ensure the correct and up -to-date information in the

E-Newsletter.

For contributing to WICASA, Akola E-Newsletter through articles or other

materials kindly contact CA Prasad Deshpande & Miss. Shivani Kariya.

ARTICLES

DIVYA

INCOME TAX RETURN FOR F.Y.2018 -19

From this year, It will be mandatory to disclose details like Director Identification

Number (DIN), Permanent Account Number (PAN), equity holding along with the

names of the companies.It is now compulsory for all those filing ITRs to

mention Aadhaar number in the forms without which the tax returns will not be

processed.

* Key changes in ITR-1 and ITR-2 forms for FY 2018-19

The income tax return (ITR) forms for FY 2018-19 notified by the government are

different from those used to file the previous year's returns. Some of the changes in the

forms have been done in keeping with the changes in income tax laws made in Budget

2018 for FY 2018-19 and onwards. Apart from that, there are other changes as well in

the ITR forms which you should be careful about while filing your return for FY 2018-

19.

Here are nine changes in ITR forms 1 & 2 that you should know about:

1. Online filing of ITR mandatory

In a departure from previous year, all individuals (except for super senior

citizens) will be required to file their ITRs electronically. The ITR-1 for FY 2018-19

cannot be filed in paper format by the taxpayers having income below Rs 5 lakh with

no refund. However, for FY 2018-19, only super senior citizens can now file ITR-1 or

ITR-4 in paper form and others will have to file their ITR electronically."

2. Complete details of buyer to whom you have sold property

If you have sold a property in FY 2018-19, then while filing ITR-2, you will be

required to provide complete details of the buyer to whom you have sold the property.

Chartered Accountant, Naveen Wadhwa, DGM, Taxmann.com say s, "The buyer details

have to be provided irrespective whether the capital gains accrued are of short-term or

long-term in nature. The details of buyer will have to be given if TDS is deducted by

your buyer while making payment." It is mandatory to deduct TDS if the sale value

exceeds Rs 50 lakh. However, "If the sale value exceeds Rs 10 lakh but below Rs 50

lakh then deducting TDS is not mandatory but quoting of PAN of the buyer while filing

ITR is mandatory for this year," adds Wadhwa.

3. Property wise details of rent arrears

"While filing ITR-1 or ITR-2 as applicable, if there are any rent arrears that are

received by you in FY 2018-19 then you have to report them property wise as

received," says Wadhwa. Remember, if an individual has one house property which is

let out during FY 2018-19, then the rent received is required to be reported in ITR-

1. For individuals with more than one house property, they are required to file their ITR

using ITR-2. "ITR-1 & ITR-2 has introduced an additional row 'Arrears/Unrealized

Rent received during the year less 30%'. This row was not available in both the forms

in the previous year," adds Wadhwa.

4. Specifying the type of house property

While providing details of your one house property in ITR-1, you are required

to specify whether the house is - 'Self Occupied', 'Let-out' or 'Deemed Let-out.' In the

previous year's ITR-1, there was no such option of 'Deemed Let-out' in ITR-1.

5. Investment details in unlisted companies

If you are holding shares in an unlisted company then, you are required to

disclose the details of your holdings in ITR-2. The details required are extensive -

name of the company, PAN of the company, number and cost of acquisition at the

beginning of the year, number of shares, face value, issue price (or purchase price) and

date of purchase of shares acquired during the year, number and sale consideration of

shares transferred during the year, number and cost of acquisition of shares held at the

end of the previous year.

Wadhwa says, "Such information is being sought so as to get the footprint of

transactions of purchase and sale of unlisted shares. It will also help the department to

check whether income and net worth of a shareholder is in corroboration with the

amount invested by him in an unlisted company. If it does not reconcile, the department

can initiate the enquiry to verify if some unaccounted money is invested in an unlisted

company."

6. Reporting of salary details gets easier in ITR-1

This year providing details of your salary income will be easier as the details

required are in sync with the information available in Form-16. In the last year, though

taxpayers were required to provide the break-up of salary detail.

7. Full disclosure of interest income

Along with providing full break-up of salary income, taxpayers will be required

to specify the full bifurcation details of the interest income or any other income

received by them. Income from other sources head in ITR-1 has been updated to

provide details of the source from where interest or any other income is received.

8. Residential status

The new ITR-2 form asks individuals not only to specify the residential status

as resident, resident but not ordinarily resident or non-resident, but also to provide

additional information with respect to his residential status, such as, number of days of

stay in India, jurisdiction of his residence and tax identification number in case he is a

non-resident. "These details are being asked to check if a taxpayer has rightly

determined his residential status in India which is entirely based on his number of days

of stay in India. The Tax Identification Number will validate if a non-resident taxpayer

is rightly claiming the DTAA benefit," adds Wadhwa.

9. Mention of DIN number

If you are Director of a company, then you will be required to specify your DIN

(Director Identification Number) in ITR-2 or 3 whichever is applicable. Along with this

you will also be required to provide information - name of company, PAN, whether

shares are listed or unlisted.

* Penalty for Late Filing of Income Tax Return – AY 2019 -20:

The last date to file your ITR for the FY 2018-19 is 31 July 2019. Not filing

your ITR on time can lead to a penalty, but there are also other consequences and

inconveniences attached to the delay as follows :

1. Penalty for Late Filing u/s 234F

As per the changed rules notified under section 234F of the Income Tax Act

which came into effect from 1 April 2017, filing your ITR post the deadline, can make

you liable to pay a maximum penalty of Rs 10,000.To break this down; if you file post

31 July but before December of this year (i.e. 2019), a penalty of Rs 5000 will be

levied. For returns filed after December 2019, penalty limit will be increased to Rs

10,000. However, as a relief to small taxpayers, the IT department has stated that if

your total income is not more than Rs 5 lakh, the maximum penalty levied for delay

will only be Rs 1000.

2. Reduced Time for Revising Your Return

Let’s say you are filing your ITR and you end up making a mistake. Under the

changed rules, you only have time till the end of relevant Assessment year to make the

change (for ITRs from FY 2017-18).Earlier, taxpayers had a 2-year long window to

revise and resubmit an erroneous ITR. This has now been decreased to one year from

the end of the financial year. Therefore, the earlier you file, the longer would be the

window available with you for revising your returns to rectify errors if any.

3. Payment of Interest

If you do not file income tax returns on or before the due date, you would be

required to pay interest at the rate of 1% for every month, or part of a month, on the

amount of tax remaining unpaid as per section 234A.It’s important to note that one’s

ITR cannot be filed if one hasn’t paid the taxes. The calculation of penalty will start

from the date immediately after the due date i.e. 31 July (For current year i.e FY 2018-

19, it was 31 July 2019). So, the longer you wait the more you will have to pay.

4. Carry Forward of Losses is Not Permitted

If you have incurred any losses during the year say a loss under the head Capital

Gains or any loss in your business, make sure you file your return within the due date.

Not doing so will deprive you of carrying forward these losses to the next years for set

off against income in future years.

5. Delay in Receiving Refunds

In case you’re entitled to receiving a refund from the government for excess

taxes you have paid, you must file your return before the due date to receive the refund

at the earliest.

ALL ABOUT GSTR 9

Punit KriplaniWRO0648087

REVERSE CHARGE MECHANISM

“Reverse Charge” means the Liability to pay Tax by the Recipient of Supply

of Goods or Services Or Both instead of the Supplier of such Goods or Services or

Both under sec 9(3) or sec 9(4) of CGST Act, or under sec 5(3) or sec 5(4) of IGST

act.

Reverse charge is applicable on both, goods and services. The following are

the situations in which reverse charge will be applicable:

1. A registered business owner receiving goods or services from an unregistered

vendor, has to pay the GST associated with the purchase to the government.

2. Services offered by an aggregator or e-commerce operator.

3. The following list of goods and services specified by Central Board of Excise

and Customs (CBEC).

S.No

Tariff item,sub-heading,heading or

chapter

Description ofsupply of

GoodsSupplier of goods

Recipient of supply(the person who

pays tax on reversecharge)

1. 0801Cashew nuts,not shelled orpeeled

Agriculturist Registered taxableperson.

2. 1404 90 10 Bidi wrapperleaves (tendu) Agriculturist Registered taxable

person.

3. 2401 Tobacco leaves Agriculturist Registered taxableperson.

4. 5004 to 5006 Silk yarn

Any person whomanufactures silk yarnfrom raw silk or silkworm cocoons.

Registered taxableperson.

5. — Supply oflottery

State Government,Union Territory or anylocal authority.

Lottery distributor orselling agent.

x List of services applicable to be taxable under reverse charge from the 14th GSTcouncil meet. Here the receiver of such services is liable to pay GST on reversecharge.

S.No Service Service provider

Recipient of supply(the person who pays

GST on reversecharge)

1. Services provided by a person in anon-taxable territory

Supplier in non-taxable territory Registered taxpayer

2. Transport of goods by road Goods TransportAgency Registered taxpayer

3. Legal services Legal firm oradvocate Registered taxpayer

4. Services provided by an arbitraltribunal Arbitral Tribunal Registered taxpayer

5. Sponsorship services Individual orbusiness

Corporate orpartnership firms

6. Services provided by government or Government/Local Registered taxpayer

S.No Service Service provider

Recipient of supply(the person who pays

GST on reversecharge)

local authority (excludes renting ofimmovable property, postal services,insurance and agency services,services provided to an aircraft orship in an Indian air port or port andtransport of goods/passengers)

authority

7. Services offered by a director orcorporate body to their own company

Director orcorporate body

The company to whichthey offer theirservices

8. Services of an insurance agent Insurance agent Insurance company

9. Recovery agent services Recovery agentBankingcompany/Financialfirm

10. Transport of goods by a vessel fromoverseas to a customs office in India

Transportingagency Importer of goods

11.Transfer/Giving permission tocopyrighted content (as according tosection 13(1) of copyright act 1957)

Artist, musician orany creative person Publishing company

12. Taxi services through an e-commerceoperator Taxi driver E-commerce operator

REQUIRMENTS:

x The recipient of goods/services must be registered under GST.

x Every registered business owner should maintain accurate records of

supplies that would incur reverse charge.

x Wherever reverse charge applies, the supplier must clearly mention on the

invoice that the tax payable for that specific transaction is through reverse

charge. Similarly, the same should be mentioned on receipt vouchers and

refunds vouchers.

x Advance paid on supplies that incur reverse charge is taxable under GST.

The taxpayer making advance payment should pay tax on reverse charge

basis.

Time of supply for goods and services:

The time of supply for a transaction is the date on which taxes are levied upon

the supplies. The time of supply under reverse charge will be the earliest of the

following dates:

x date of receipt of goods or

x date of payment or

x the date immediately after 30 days from the invoice date for goods and 60

days from the invoice date for services.

Note: If none of the above applies, then it can also be the date of entry in the books of

the receiver.

ITC on reverse charge

Input tax credit can be claimed by the buyer as long as they use the

goods and services they bought on reverse charge basis for business purposes only.

Also, a supplier cannot claim ITC on the tax paid on goods/services that were used to

make supplies that incur reverse charge.

Self-invoicing

Under reverse charge mechanism, self-invoicing is done when a business

owner purchases from an unregistered supplier. This is done, as the unregistered

supplier cannot issue an invoice.

Exemptions under reverse charge

A registered business owner is exempted from paying GST through reverse

charge on intra-state purchases from unregistered sellers, as long as the total value of

the supply received per day is less than or equal to Rs.5,000/-.

HIGHLIGHTS OF WICASA OF ICAI

INDUSTRIAL VISIT MUMBAI

PHOTOGALLERY

ICAI Mumbai (BKC Branch Visit Photo)

NSC Visit

Akola WICASA Chairman CA Jalaj Baheti Welcome to Seminar Speaker

SEBI Visit

DUE DATES FOR JULY

Particulars Due Dates

TDS/TCS Liability Deposit 7th July

GSTR3B 20th July

GSTR1- Monthly (Taxpayer exceeds 1.5Crore) 11 th July

GSTR1- Quarterly (Taxpayer within 1.5Crore) 31th July

GSTR4 – Composition Taxpayers 18th July

TCS Return for Q1 of FY 19-20 15th July

TDS Return for Q1 of FY 19-20 31stJuly

Income Tax Return for FY 18 -19 31stJuly

PF & ESIC Payment 15th July

CA Day Celebration, Blood DonationCamp, Tree Plantation , Indoor Games