GST Registration Consultants in Chennai

GST
Income Tax

Persons Liable for Registration:

Every supplier shall be liable to be registered if his aggregate turnover in a financial year exceeds the prescribed limits. Any person who is liable to be registered shall apply for GST registration in such state within 30 days from the date on which he becomes liable to register.

Persons Not Liable to Register:

Any person engaged in the business of supplying goods / services that are not liable to tax or it’s exempted from the tax under Goods and Services tax Act.
An Agriculturist

Documents required for GST Registration – Proprietorship Company

PAN Card Copy
Aadhaar Card Copy
Passport Size Photo
Rental agreement and EB Bill copy - If office is taken on Rent.

Documents required for GST Registration – Partnership / Private Limited / LLP / Society / Trust / AOP /

PAN Card Copy of the Partners / Directors
Aadhaar Card Copy Partners / Directors
Passport Size Photo Partners / Directors
Rental agreement and EB Bill copy - If office is taken on Rent.
Incorporation Certificate / Partnership Deed / LLP Agreement.
Society Registration Certificate / Trust Deed.

Benefits of GST:

Simplified Compliance
Consistent Tax Standards
User-Friendly Administration
Enhanced Revenue
Efficiency
Transparent Taxation
Destination-based Tax System
Unified Taxation
Legal Recognition

Income Tax Slab:

Income Tax Slab	Tax rate - Individuals
Up to `2,50,000	Nil
2,50,001 to 5,00,000	5%
5,00,001 to 10,00,000	12,500 + 20% of total income exceeding 5,00,000
Above 10,00,000	1,12,500 + 30% of total income exceeding 10,00,000

The Finance Act, 2020 has introduced new optional tax regime :

No Tax – Upto Rs 2.5 Lakhs
5% Tax – Between 2.5 Lakhs to 5 Lakhs
10 % Tax – Between 5 Lakhs to 7.5 Lakhs
15 % Tax – Between 7.5 Lakhs to 10 Lakhs
20 % Tax – Between 10 Lakhs to 12.5 Lakhs
25 % Tax – Between 12.5 Lakhs to 15 Lakhs
30% Tax – Above 15 Lakhs

Individuals can opt for either the new regime or continue with the existing tax slab rates. Opting for the new regime means forgoing exemptions and deductions available in the old regime.

The below exemptions are Not Allowed in the new regime:

Deduction under Chapter VI-A deduction (80C, 80D, 80E etc. ) (Except Section 80CCD(2))
Housing loan interest
Standard deduction in salary
Education allowance for children
House Rent Allowance
Leave Travel Allowance

It's advisable to choose the new tax regime if you have fewer investments.

Individuals are categorized into three groups:

Individuals - those under 60 years
Resident Senior citizens (60 to 80 years)
Resident Super senior citizens (above 80 years)

Income Tax Return (ITR) forms vary based on the individual's income sources.

ITR Forms:

FORM ITR-1 – Sahaj forms:Applicable for individuals with income up to Rs. 50 lakh. Receives income from salary, one house property, or other sources (interest, etc.).

FORM ITR-2 - For individuals and HUFs without income from business/profession and ineligible for Sahaj.

FORM ITR-3 – Suitable for individuals with income from business/profession.

FORM ITR- 4 - Individuals, HUFs, and firms (excluding LLPs) with total income up to Rs. 50 lakh. • Income from business and profession computed under presumptive taxation provisions.

FORM ITR-5 – Applicable for Partnership Firms and LLPs.

FORM ITR-6 – Designed for Companies.

FORM ITR-7 - Intended for Political Parties and Charitable Institutions. • Choose the relevant ITR form based on your income sources and business structure for a streamlined and accurate filing process.

Due date for filing an Income tax Return:

For Individuals July 31 for non-audit cases.
September 31 for audit cases.

Income tax / Proprietorship:

Proprietorship Filing income tax for proprietorships mirrors individual tax filing. Proprietors under 60 with income surpassing Rs. 2,50,000 must file returns. This slab differs from LLPs and companies. Ensure compliance with these guidelines for seamless tax filing.

Income tax-Limited liability Partnership/Partnership companies/private limited company

Limited Liability Partnerships (LLPs) and partnership companies are treated similarly to partnership firms, taxed at 30% on total income. If income exceeds one crore, an additional 12% surcharge applies. Public limited companies face a 25% taxation rate on total earnings.

Penalty on Income tax:

Financial reports must be submitted at the fiscal year-end, with the new financial year starting on April 1. The Indian government sets a July 31 deadline for filing all company ITR reports. A penalty of Rs.5000 per day is imposed for ITR submissions before December 31. If the deadline extends beyond December 31, the penalty increases to Rs.10,000.

FAQ'S

Income Tax

Individuals and non-audit cases have a deadline on July 31 of the assessment year. Audit cases must be completed by September 30.

Filing a return after the due dates is allowed, but late filing incurs penalties. Ensure timely filing to avoid penalty charges.

Submit a request letter to the Assessing Officer after settling pending tax dues for the specific financial year.

Prove your income with ITR.

Claim refunds easily.

Access loans confidently.

Secure credit cards effortlessly.

Essential for VISA.

Carry forward losses with ease.

Anyone can check the refund status in this link:- https://tin.tin.nsdl.com/oltas/refund-status-pan.html

The Tax Deduction and Collection Account Number (TAN) is a unique identifier necessary for individuals responsible for deducting or collecting taxes. It is mandatory for tax compliance.

Income Tax Act's Section 44AB addresses Tax Audits, mandatory for those with audited accounts by a Chartered Accountant. The CA performs the tax audit, providing findings in Form Nos. 3CA/3CB and 3CD, detailing observations. Compliance with this section is crucial for businesses undergoing audits to ensure tax regulations are met.

Advance tax refers to paying taxes beforehand rather than in a lump sum at the fiscal year-end. The instalment schedule is as follows, calculated based on expected liability:

15% due by June 15th
45% due by September 15th
75% due by December 15th
100% due by March 15th

This proactive approach ensures timely contributions and helps individuals and businesses manage their tax responsibilities effectively, avoiding last-minute financial burdens and promoting fiscal responsibility throughout the year.

No. Agriculture income is not taxable.

Yes. You have to maintain the proofs for your every sources of income.

GST

A destination-based tax on goods and services, applicable from manufacturing to the end consumer. Credits for taxes paid at earlier stages are available as input credits, making the system comprehensive and efficient.

Both Central GST and State GST are imposed concurrently on every transaction involving the supply of goods and services, excluding exempted items and entities below the specified threshold. For instance, with an 18% GST rate, SGST is 9%, and CGST is 9%.

For interstate trade, the GST on the supply of goods and services is administered by the Central Government as IGST. For instance, with an 18% GST rate for traded goods, the IGST applicable would be 18%.

Companies must register for GST if their annual turnover exceeds Rs. 40 lakhs (Rs. 20 lakhs for services). Additionally, even if the turnover is below the threshold, mandatory registration is required for interstate sale of goods. Stay compliant with GST regulations to ensure smooth business operations.

No. Person registered under composition scheme is not eligible to claim input tax credit.

Buyers from a registered person under the composition scheme are ineligible for composition input tax credit. This is because suppliers in the composition scheme cannot issue a tax invoice.

Goods and services imports are treated as inter-state supplies, attracting IGST. Full offset is granted for GST paid on imported goods and services, ensuring a fair and transparent system for businesses engaged in international trade.

Exports are considered zero-rated, meaning no tax is payable on exported goods or services. However, exporters can claim input tax credit and seek refunds. Exporters have the flexibility to either pay tax on output and claim IGST refund or opt for a bond-based export without IGST payment, subsequently claiming Input Tax Credit refunds. This provides exporters with choices to optimize their tax processes and facilitate smoother international trade.

In certain supply categories, the responsibility to pay tax rests with the recipient of goods or services, not the supplier. This shift in liability streamlines tax procedures for specified transactions.

When a registered individual acquires goods or services from an unregistered entity, they are responsible for paying the tax through the reverse charge mechanism. This simplifies taxation for such transactions.