NEWS & UPDATE

Clarification on Financial Year

CA M. Soban Babu. B.Com, ACA.
Following points will clarify some of the issues:1) FY 2019-20 is not at all extended till 30th June, only the date is extended for somecompliances.2) Belated returns or Revised returns for the FY 2018-19 can be filed till 30th June.3) In the FY 2019-20, income is taxable till 31st March only and not upto 30th June, i.e.for taxability of income financial year is considered till 31st March only.4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.5) New LIC, Mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible forthe deduction for the FY 2019-20.
Read More

Circular on Sales Promotion Schemes

Mohan & Chandrasekhar
Free Samples and giftsThe free samples or gifts given for example in pharma industry without any consideration will not be treated as “supply” under GST (unless it is covered under Schedule 1). Input tax credit with respect to such free samples or gifts should be reversed.
Read More

Input Tax Credit

CA Chandrasekhar Kutty. B.Com, F.C.A.
Input Tax Credit CA Chandrasekhar Kutty The concept of input credit is the core of GST and there is seamless credits available meaning thereby whether you are buying inter state or intra state you can set offyour output tax with the input tax credit available. Similarly tax paid for goods can be set off against the output tax payable on services. This is a major shift in the GST era where all the inputs used for the business can be used to set off the output tax of the same business, though there are few exceptions to that.  Before understanding the concept it is important for us to understand few definitions under GST law: What is Input? Section 2(59) of the CGST Act defines it as “Goods other than capital…
Read More