Broad
section of service tax and its simplification in GST:
Broad section of service tax
laid on the service providers it recently replacing with GST registration. Service tax is collecting on the value of table
service rendered by them for consideration. The taxable event is the completion
of the rendering of service. The moment the service is completed, the liability
to service tax arises. The service tax will have to be paid on value of taxable
services realized. Immaterial whether it is a service tax has been collected
from the customer or not.
Amount of service tax and
education cess has to be calculated by working back from the amount realized
assuming that the amount realized is inclusive of service tax and education
cess. GST council has introduced new return system to improvise the hard core
features of service tax. Value added tax calculation is totally abolishing in
the GST filing.
Broad
section brief in GST:
GSTfiling process is following the new system for the companies.
Two monthly return methods are introducing for the companies to file their
return. Keen details of outward and inward supplies and payment of the tax are
calculating through the GSTR-1 and GSTR-3B. The main form of GST return is the
GSTR-1. It comes with the help of GST ANX-1 and GST ANX-2. Charge for import of
goods and service and reverse charges are applicable on in these goods and
service tax filing process.
Budget 2012 proposes to
usher the paradigm shift in the manner services will be taxed in the future.
The transition involves shift from taxation of 119 services specific descriptions
to a new regime where by all services will be taxed unless they are covered by
any of the entries in the negative list or are otherwise exempted. To resolve
the complex classification issue this system is using for a while before GST registration amendment.
Concept
of simplification:
To avoid the barriers of
additional taxes and too much filing is coming under this category. Frequency
of filing totally depend the turnover of the entity. GST return filing completely depending on the profile and structure
of the company. The mandatory supply process is coming under realm of new GST
formation. Previous service tax system followed the ledger account and all
information in the filing of form ST- 3 and service tax returns-3. Month wise
total billing and total recoveries are furnished for the half year covered by
the return.
New form of profile
questionnaires will show the GSTregistration return format display only to the relevant format and prompt
to the profile of the corporate or other form of companies. Invoices are
uploading and the data of these invoices taking in the manner of real time
feed. As per these the recipient will take appropriate action. It brings to end
for the fraud or fake invoice insertions.
Broad
section of taxation:
Tax laws are complicated
complex, highly technical and beyond understanding of the common person. The
interpretation of tax laws is very much painful and difficult. There is a
tendency to amend tax laws frequently. It causes great difficulty to a citizen
in understanding the tax and financial affairs. Many professionals find
accounting and taxation a very complicated affair as such they try to remain
away from this matter. Obviously, it involves with the interest in the income
tax matters and lack of knowledge of the latest amendments.
A professional is required
to pay more tax than other legal payables. All these issues are getting it
solution in the form of GST filing. The
simplification of form and filing process will lead lower cost of compliance.
As the prolific form of filing tax payers will able to amend their return id
that once filed. Only two amendments are acceptable in the tax return period.
The
method of tax showing in separation:
An individual is rendering
any of the service the service tax in payable one. So, the separate provisions
are coming under the service tax. Computerized data is maintaining through the
assesse according to the various laws in force. It is changeable one from time
to time. Service tax department follows these essential processes. Now it is
totally changing into the hand of GSTfiling process.
Filing
of GST-1:
GSTregistration under the category of Business to customer
and business to business with the inward supply comes with the reverse charge
mechanism. NIL rated transaction and exempted goods and supplying through the
e-commerce operators will be recommending for this GST Ret-1 as per the new
laws of the GST council. Before this process memoranda received from the branch
office of service tax department.
CENVAT
credit rule:
As the rule 6(2) the
manufacturer or provider of output service in engaging the manner for final
product comes with output services which are chargeable duty or tax as well as
exempted goods or services then the manufacturer or provider of output service
shall maintain separate accounts for receipt consumption and inventory. These
large processes are coming as the unified tax form through new GST registration.
Documents
and accounts under CENVAT credit rule:
The manufacturer brings the
final source of the product offer the output service. These services shall
maintain proper records for receipt, disposal, consumption and inventory of the
inputs and capital goods, recording therein the value, duty paid, central vat
credit and utilisation. These too much holding document and data process are
simplified in the GST filing process.
The simplest form of the tax calculation with the unified process is following
in this new tax system.
Conclusion:
GSTregistration is considering as the complex process and not
easily adopts this process in the first time. However, the time limit for the
GST registration process is extending for the welfare of the business people.
Try to make it fast as soon as possible. Because, without GST registration the
business is undertaking is not approving one. The turnover limit is notable one
in this business governing process.
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