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Old 31st December 2015, 18:13   #796
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by fine69 View Post
What's the best place on the web to look for information on VAT? Primarily I wish to know that if I get a TIN what all guidelines I have to abide by, what all paperwork I need to maintain etc.
Assuming you are from Delhi and assuming that you know the criteria for getting a TIN, firstly, apart from writing accounts in Tally, etc, you'll have to start maintaining registers, say in MS Excel. You would do well by maintaining the following registers.

1. Local (taxable) Purchases and Local (taxable) Sales.
2. Inter State Purchases (if any).
3. Inter State Sales (if any).
4. Exports (if any).

The local purchase register must contain:

Bill No | Date | Name of Vendor | Vendor TIN | Purchase Price | ITC | Total Invoice Value | Name of Article.

The local sale register must contain:

Bill No | Date | Name of customer | Customer TIN (if any) | Sale Amount | VAT Collected | Total Bill Amount | Name of Article.

The inter state purchase register must contain:

Bill No | Date | Name of vendor | Vendor TIN | Purchase Value | (+Transport+Insurance+Excise) | Total Purchase Price | CST | Total Invoice Value | Name of Article

The inter state sale register must contain:

Bill No | Date | Name of customer | Customer TIN | Sale Value | (+Transport+Insurance+Excise) | Total Sale Price | CST | Total Bill Amount | Name of Article

You will have to file your VAT and CST return as per the periodicity (monthly or quarterly or six monthly or annual) fixed by the Delhi VAT Department in your case, and make the payment of tax due as per the concerned return. Late payment of tax shall attract simple interest and late/non filing of return will attract a penalty.
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Old 31st December 2015, 18:33   #797
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by hserus View Post
If you need a tin and have to incorporate a company, collect and deposit VAT and TDS you had better use a qualified CA
I will be applying for a TIN shortly, getting a current account opened right now.

I know that if I use a CA's service all this becomes easy for me by simply paying him his fee. However, I wish to be on top of things and want to understand this by myself hence looking for documents/references which tell me what the law says and in detail.

I've also seen folks being troubled by their CAs because they don't understand accounting and later on their own CAs come back to haunt them (blackmail etc.)
Quote:
Originally Posted by Swapnil4585 View Post
Assuming you are from Delhi and assuming that you know the criteria for getting a TIN, firstly, apart from writing accounts in Tally, etc, you'll have to start maintaining registers, say in MS Excel. You would do well by maintaining the following registers.....
I don't want to buy Tally as I'm involved in a sole proprietorship and with accounts being simple, I'd use an open source software like GnuCash which would pretty much do everything that I'm going to need in recent future.
Quote:
Originally Posted by Swapnil4585 View Post
The local purchase register must contain:

Bill No | Date | Name of Vendor | Vendor TIN | Purchase Price | ITC | Total Invoice Value | Name of Article.
What's ITC?
Quote:
Originally Posted by Swapnil4585 View Post
The local sale register must contain:

Bill No | Date | Name of customer | Customer TIN (if any) | Sale Amount | VAT Collected | Total Bill Amount | Name of Article.
I really doubt if my customers (retailers) are going to share their TIN number with me. I'm assuming I'd be fine without that also?

What do you mean by VAT collected? Do you mean the VAT amount that I'm going to put in the invoice itself?

Quote:
Originally Posted by Swapnil4585 View Post
You will have to file your VAT and CST return as per the periodicity (monthly or quarterly or six monthly or annual) fixed by the Delhi VAT Department in your case, and make the payment of tax due as per the concerned return. Late payment of tax shall attract simple interest and late/non filing of return will attract a penalty.
Can taxes be filed online?

Lastly, any other decent forums where some literature can be found along with queries being answered?

EDIT: To clarify, I AM using a CA's help right now. In fact she is my wife's cousin and has helped us a lot so far. My objective is to only know what the CA knows, I'm sure anybody with the right material and time can do all this by themselves.

Last edited by fine69 : 31st December 2015 at 18:35.
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Old 31st December 2015, 20:20   #798
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by fine69 View Post
I don't want to buy Tally as I'm involved in a sole proprietorship and with accounts being simple, I'd use an open source software like GnuCash which would pretty much do everything that I'm going to need in recent future.
You can use that too, no issue. The only thing to be considered in VAT (or any other indirect tax) is that you should be able to get an information based on any one parameter at a click.

Quote:
What's ITC?
Input Tax Credit. It's the tax that you pay to your vendor on the purchases.

Quote:
I really doubt if my customers (retailers) are going to share their TIN number with me. I'm assuming I'd be fine without that also?
Will have to see if the Delhi VAT law mandates this. In Maharashtra, it is compulsory for the seller and the purchaser to show all taxable sales and purchases in the annexures to be filed with return. These annexures are cross checked by an automated system.
If your customers (retailers) want to claim set-off of the tax they pay to you, then they will give their TIN to you. However it all boils down to what the Delhi VAT Act says and requires.

Quote:
What do you mean by VAT collected? Do you mean the VAT amount that I'm going to put in the invoice itself?
VAT collected means the tax you charge from your customers. Say your customer is a retailer holding a TIN, and that you are selling him a commodity taxable @ 5%. In that case, the bill that you will raise to your customer will be : sale price Rs 10,000 + VAT Rs 500 = Total Bill Amount Rs 10,500/-.

Quote:
Can taxes be filed online?

Lastly, any other decent forums where some literature can be found along with queries being answered?

EDIT: To clarify, I AM using a CA's help right now. In fact she is my wife's cousin and has helped us a lot so far. My objective is to only know what the CA knows, I'm sure anybody with the right material and time can do all this by themselves.
Again, you will have to see if Delhi VAT Act allows online payment of taxes or not. I guess it must allow, as most State Sales Tax Departments have become digital completely.

You may join CA Club India. But its power to weight and torque to weight figures aren't impressive
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Old 6th January 2016, 14:25   #799
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For most salaried individuals, it is time to submit investment proofs to the payroll department.

Just a heads up that NPS can reduce your tax liability by an additional 50,000/- under section 80CCD (1B) per assessment year (applicable from FY 2015-16/AY 2016-17).

How many have opted for this?
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Old 6th January 2016, 15:14   #800
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Originally Posted by S_U_N View Post
Just a heads up that NPS can reduce your tax liability by an additional 50,000/- under section 80CCD (1B) per assessment year (applicable from FY 2015-16/AY 2016-17).
I read this article Tax Benefit On NPS Is All Bogus And Sham and others like it and decided not to invest the additional 50K in NPS.
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Old 6th January 2016, 15:20   #801
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

I had analyzed the NPS scheme and found it not worth to invest the additional 50K, decided not to invest in it.

From what I've heard, hardly anyone invests the additional 50K.
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Old 6th January 2016, 18:14   #802
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Originally Posted by sdp1975 View Post
I had analyzed the NPS scheme and found it not worth to invest the additional 50K, decided not to invest in it.

From what I've heard, hardly anyone invests the additional 50K.
My understanding is that you need not invest 'additional 50K' - you invest (say 10% of the basic - assuming that is more than 50000), and you will get the benefit of this deduction - of course, you need to declare that to your company.
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Old 6th January 2016, 19:16   #803
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Quote:
Originally Posted by sdp1975 View Post
I had analyzed the NPS scheme and found it not worth to invest the additional 50K, decided not to invest in it.

From what I've heard, hardly anyone invests the additional 50K.

Can you share your analysis?
What are you comparing the returns of this against?

Also, I hope you are aware that -
a) It is a pension plan
b) You need to buy annuity at the time of maturity
c) Everyone can invest it differently under C, E, G category
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Old 8th January 2016, 14:28   #804
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by achopraa View Post
Can you share your analysis?
What are you comparing the returns of this against?

Also, I hope you are aware that -
a) It is a pension plan
b) You need to buy annuity at the time of maturity
c) Everyone can invest it differently under C, E, G category
I can give some facts/ figures from my personal experience.

I have been investing in NPS since November 2012 through my company (corporate model).

I have selected SBI Pension Funds Pvt. Ltd. with 30% in equity and the remaining in bonds and government securities.

The rate of return I have got is 10.01% XIRR.

Whatever amount of money you withdraw at the age of 60 will be taxable in your hands.
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Old 8th January 2016, 15:44   #805
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Quote:
Originally Posted by achopraa View Post
Can you share your analysis?
What are you comparing the returns of this against?

Also, I hope you are aware that -
a) It is a pension plan
b) You need to buy annuity at the time of maturity
c) Everyone can invest it differently under C, E, G category
For me reliability is more important, and I invest mostly in fixed income schemes - at least I know that there's a certain guaranteed return.

It was a while ago that I analyzed the NPS scheme.

The taxation during withdrawal was a big drawback. Returns on annuity plans are generally poor the world over. From what I remember, the NPS does allow investment in fixed income instruments/bonds , but since they follow a NAV calculation for the bonds ( ie the bond value is dependent on prevalent interest rates ), the returns during redemption/withdrawal will vary. It just didn't work out for me. I'd rather invest in PPF/tax free bonds/Voluntary PF - works out a lot better for me.

Last edited by sdp1975 : 8th January 2016 at 15:46.
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Old 10th January 2016, 01:17   #806
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Quote:
Originally Posted by S_U_N View Post
I can give some facts/ figures from my personal experience.

I have been investing in NPS since November 2012 through my company (corporate model).

I have selected SBI Pension Funds Pvt. Ltd. with 30% in equity and the remaining in bonds and government securities.

The rate of return I have got is 10.01% XIRR.

Whatever amount of money you withdraw at the age of 60 will be taxable in your hands.
SUN
Hi.
Seems to be a finer tuned version of NSS (National Savings Scheme) 87.
In a particular year to reduce my taxes I invested in it. The interest(taxable) accrued was around 9% which was the same as NSCs. Whenever I withdrew, after the lockin period of 3 years, the amount was added to that year's income. If such is the case with NPS, then you may end up not paying taxes if you have retired.
Somebody please guide.
Thanks Regards
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Old 12th January 2016, 14:12   #807
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Need some help with my tax planning for the forthcoming financial year. Can anyone suggest any good tax consultant / CA around koramangala area who i can consult with ?
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Old 12th January 2016, 15:41   #808
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by faustus77 View Post
SUN
Hi.
Seems to be a finer tuned version of NSS (National Savings Scheme) 87.
In a particular year to reduce my taxes I invested in it. The interest(taxable) accrued was around 9% which was the same as NSCs. Whenever I withdrew, after the lockin period of 3 years, the amount was added to that year's income. If such is the case with NPS, then you may end up not paying taxes if you have retired.
Somebody please guide.
Thanks Regards
In case of NPS, there is no tax until you redeem the money. It is EET.
The lumpsum that you receive say 20-30 years from now will be huge.
Even if you withdraw 40% of it, it will still be huge. Even if you do not have any salary, the 'other income' will still go beyond the 0% or even 10% tax slabs.

There is no way you can avoid tax on that money, unless the IT rules at that time would change.

Last edited by S_U_N : 12th January 2016 at 15:43.
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Old 14th January 2016, 14:09   #809
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Guys, have few Qs about capital gains on land and reinvesting in Gold. Additionally encasing gold after 3 years. Read the below scenario for more details. All these questions are due to recent advertisement of gold sovereign bond(GSB) coming-up in radio here at Bangalore

Say I have a land bought at Rs 1L 5 years before, and I sold it for 2L. What if I buy GSB from those 2L . Do I need to pay any capital gain tax ?

Another Qs. I'm planning to buy GSB in demat format and may sell after 3 years (Long term). From the proceed amount say,
1. I may exit with that amount in cash, what could be the tax implications.
2. If I reinvest in stock, what could be the tax implications.

Appreciate any clarification on this topic AND thanks in advance guys.

Regards
SE
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Old 15th January 2016, 00:40   #810
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Originally Posted by speed_edge View Post
Say I have a land bought at Rs 1L 5 years before, and I sold it for 2L. What if I buy GSB from those 2L . Do I need to pay any capital gain tax ?

Another Qs. I'm planning to buy GSB in demat format and may sell after 3 years (Long term). From the proceed amount say,
1. I may exit with that amount in cash, what could be the tax implications.
2. If I reinvest in stock, what could be the tax implications.
You have bernefit of indexation. Check the Cost inflation index for the year you bought the land. assuming you bought the land for 1L in FY 2010-11, CII = 711. you sell for 2L in 2015-16, CII= 1081.
indexed cost is 1L X 1081/711 = 1.52L.
So your capital gain is 2L - 1.52L = 0.48L.
You can avoid the tax by investing the CG amount (48K in above case) in notified investments u/s 54EC (e.g. NHAI, REC bonds) restricted to Rs 50L per year.
Some other investments u/s 54 require you to invest the whole receipt (2L in above case) to avoid tax.
Dont know if GSB come u/s 54. Do check the detailed prospectus and look for relevant subsections within sec 54.

PS: coincidentally this is page 54 of the thread

Last edited by guptavis : 15th January 2016 at 00:43.
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