Government extends service tax return filing date to April 30 - Things to Know While Filing Tax Returns this Year

Service Tax registration in India

The Centre has extended the last date for filing service tax return by five days to 30 April, in a relief to lakhs of service providers. “The Central Board of Excise and Customs (CBEC) hereby extends the date for submission of form ST-3 for the period from 1 October to 31 March 2017, from 25 April to 30 April 2017,” the apex policy making body of the indirect tax department said in an office order.
Every registered service tax assessee has to file service tax return in form ST-3 on a half-yearly basis before the due date to avoid penalty. For filing returns for the period April-September, the due date is 25 October, while for October-March it is 25 April.
The CBEC said that the due date is being extended as the assessees faced “intermittent difficulties” in accessing the Automation of Central Excise and Service Tax (ACES) website on 25 April. This, CBEC said, is “circumstances of a special nature” for which the last date for filing is being extended. As per norms, the returns have to be filed online on
While return is filed half-yearly, the service tax collected by the assesses has to be deposited with the government on a monthly or quarterly basis. Tax experts in India voiced concern over whether the Goods and Services Tax Network (GSTN) portal would be able to take the load of all the tax payers which would include not only service providers, but also traders and manufacturers.
The government is asking existing excise, service tax and VAT assessee to shift to the GSTN portal for payment of tax and filing returns. GST, which will unify 10 local taxes, is expected to kick in from 1 July.
Nangia and Co Director-Indirect Taxation Rajat Mohan said return filing under GST regime would necessitate much more data in terms of invoices, debit notes and credit notes that would be matched online. “After witnessing this extension of due date for filing service tax return, my concern is the government system might not be fully geared up for such large pool of tax payers and in terms of data requirement in returns,” Mohan said.
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What does GST hold for Indian youth?

Service Tax registration in India

 After a long wait we finally have the GST law ahead of us and broadly know what it would look like. The unified tax reform is set to increase nation's GDP by 2% and enable India Inc to reach new heights. With July 2017 around the corner, businesses all over are figuring out how to be GST-compliant. In the midst of this hustle, I am keen to see how the transformative reform will go down with over 65% of our population, that is the youth below the age of 35 years.

How pocket-friendly will GST be for youngsters?
A 5-tier slab rate structure of 0, 5, 12, 18 and 28% has been agreed upon by the GST council, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess.
This means essential items, including food that till now constituted about 50% of the consumer inflation, will be taxed zero, thus keeping a check on inflation. All consumer-centric companies will stand to gain with respect to supply chain and logistics. Indirect tax rate for a range of consumer goods such as FMCG products, personal care, is likely to come down to 18% from the earlier 21%-22% on an average. This will lead to higher purchasing power among consumers. India's youth, being the biggest chunk of this set of consumers, are going to gain from this change.
With entertainment taxes becoming a part of GST, movie ticket, theatrical performances and dining out may also become more pocket friendly in most states.
The automobile sector, another industry that is primarily youth driven, is expected to be the biggest beneficiary of GST implementation. Currently, two-wheelers, small cars and commercial vehicles witness tax outgo of 27 percent. With the introduction of GST, a standard of 18% would be levied, resulting in a 9% reduction which could then be utilized in reducing vehicle prices and stimulate demand.
On the other hand, during the transition phase the youngsters should budget for some increased pocket pricking on telecom services like mobile and internet bills, and electronic products like smartphones, laptops and computers. Services like WiFi and DTH services, online booking of air travel may dearer too. Aligning with the government's negative outlook towards de-merit goods, tobacco, cigarettes, pan masala and aerated drinks shall witness the highest rate of 28% tax rate.
Though pre-primary and higher secondary education services will remain tax-free, higher education in private institutes may turn out to be costlier by about 3%, moving from the earlier service tax of 15% to the new GST slab of 18%. The benefits of such a move are debatable, as the reform is clearly skewed towards favoring government-provided education over private.
 Growth in the job market
GST implementation is expected to organize the unorganized players by bringing them into the tax ambit. This should reduce the price gap between organized and unorganized sector. There are about 3 crore MSMEs which provide employment opportunities to more than 90% of the youth. Though financial gain of this sector by GST is widely debated, the likelihood of this sector getting more organized is higher under GST. Employment in organized sector is going to be a better proposition for the youth than remaining employed in an unorganized sector.
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Why you should plan budget for your company?

Accounting in India

A budget helps you build out your long-term goals and work towards them. There are various reasons why a business should prepare a budget…..
1.     You need to know how much cash you need to support the growth or lack of your business & company.
2.     You need to budget your costs so that someone in the business can keep them under control.
3.      If you don’t aim for a sales or profit figure, it is highly likely, you or your team don’t have a clear idea of where the business is going.
4.     Doing a sales budget gives you an idea of how realistic your sales growth is. If a sales target has been produced by a salesperson – watch out, it will often be wildly positive. Sense checking this will you more of a reality checks.
5.     It is likely in the year of a growing business that you will have to recruit. Your budget should tell you the cost of this and also the cost of not recruiting quickly enough.
6.     Comparing your budget to your actual performance will give you a better idea of your profit margins.
7.     Yes, your budget will not be 100% accurate. How can it be? However, it will be more accurate and you will be in a better position to predict your future if you spend the time planning your finances.
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What Is a Subsidiary Company and How Does It Work?

Foreign company subsidiary
Meaning of Subsidiary:

When a company buys another company, the second company usually becomes a subsidiary.
An enterprise controlled by another (called the parent) through the ownership of greater than 50 percent of its voting stock. 

What is a Subsidiary Company?
A subsidiary is a business that is wholly or partially owned by another business, sometimes called the parent company or holding company. The parent company owns sufficient voting stock in the subsidiary -- as a rule, at least 50% -- to give it control over the subsidiary's operations and management. In a wholly-owned subsidiary, the parent company owns 100% of the stock.

Parent Company:
A parent company is simply a company that runs a business and that owns another business — the subsidiary. The parent company has operations of its own, and the subsidiary may carry on a related business. For example, the subsidiary might own and manage property assets of the parent company, to keep the liability from those assets separate. 

Types of subsidiary:
There can be two types of it based upon ownership namely
  • 100% ownership
    • Fully owned subsidiaries (only in FDI permitted sectors as Per latest FDI policy)
  • Less than 100% ownership
    • Joint Ventures  
    A subsidiary's parent company may be the sole owner or one of several owners. If a parent company or holding company owns 100% of another company, that company is called a "wholly owned subsidiary."
Chartered Accountant in Delhi
Why Form a Subsidiary?

This separate legal structure may be used to gain certain tax benefits, track the results of a separate business unit, segregate risk from the rest of the organization, or prepare certain assets for sale. A larger business may own dozens or even hundreds of subsidiary companies.
How a Subsidiary Operates? 
A subsidiary operates as a normal company would, while the parent company has only oversight. If the parent company had day-to-day supervision of the subsidiary, that would mean the parent would take on the liability of the subsidiary.
How a Subsidiary Is Formed?
A subsidiary is formed by registering with the state in which the company operates. The ownership of the subsidiary is spelled out in the registration. 
Let's say Company A wants to form a subsidiary to manage its properties. The subsidiary, Company B, registers with the state and indicates that it is wholly owned by Company A.  
Setting up subsidiary of foreign company in India 

There are four ways for a foreign business to conduct activities in India, through Subsidiary, Branch Office, Liaison Office or Project Office. Each way is distinct and have unique purpose and RBI rules to qualify for a successful registration. Raaas suggests the Subsidiary way as the best for Companies when they would like to enter India for business.
The process is quite simple, it is always advisable to take help of a Chartered Accountant in India while carrying out any company formation procedures.

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