Brokers' body asks govt to reduce GST, scrap STT, dividend tax

As preparations for the Union Budget 2018-19 is underway, the Association of National Exchanges Members of India (Anmi) has flagged concerns about the Goods and Services Tax (GST) regime creating "some difficulty" in the financial market.

The government should reduce GST on brokerages to 12 per cent as well as scrap taxes on securities transactions and dividends, according to a leading stock brokers' group.
As preparations for the Union Budget 2018-19 is underway, the Association of National Exchanges Members of India (Anmi) has flagged concerns about the Goods and Services Tax (GST) regime creating "some difficulty" in the financial market.
Post GST, the burden of taxation on the transaction charges has increased, the grouping said in a representation to the finance ministry.
"Rate of GST applicable on brokerage for share transaction is 18 per cent which is on much higher side and has further inflated the cost of transaction. We appeal to reduce the rate of GST to 12 per cent in the ensuing Budget," it added.

Besides, the brokers' group has requested the finance ministry to do away with the securities transaction tax and abolish dividend tax for growth of the capital markets.
According to the grouping, the STT plays a detrimental role in enhancing liquidity and creation of depth in Indian capital market.
"Removal of STT will encourage more liquidity and profitability in India, which in turn will increase depth in Indian capital market as well as more participation," the grouping said.
STT is the tax on transaction of equities as well as their derivatives and accounts for a bulk of the transaction cost after deducting the brokerage fee.
Further, Anmi has suggested for rationalising the STT calculation method for option trading by removing certain anomaly.
"Dividend distribution tax (DDT) should be done away with or the rates should be brought down to be nearly negligible" and amendment to Section 14A, Rule 8(d) of the Income Tax Rules are the two other demands for reforms by Anmi.
The applicability of Section 14A has impact on dividend income. DDT is levied at almost 20 percent on the company for distribution of dividend to its shareholders.
The tax burden for brokerages has been increasing over the last three years - it has risen to 18 per cent from 12 per cent, Anmi said.
Also, the brokers' body has said market intermediaries like sub-brokers should be exempted from registration under GST as they don't raise any invoice for clients directly but only through the brokerage.
It also asked that GST return should be submitted quarterly in order to promote 'ease of doing business' instead of monthly returns.
Stating that the stock broking community is the backbone of the capital market, Anmi reiterated its demand to give an industry status to the broking business.

Information to taxpayers regarding Late fee amount shown in GSTR 3B of September, 2017

Some taxpayers are reported that there is late fee amount shown in their GSTR 3B return, for the month of September, 2017, even though the last date of filing GSTR 3B return for the month of September, 2017, is 20th October, 2017. This is not for any delay on filing of GSTR 3B for September, 2017 (as last date of filing GSTR 3B is 20th October). It is on account of late filing of return for previous period, i.e. August, 2017.
The system does entry into ledgers from GSTR 3B return on the date on which return is submitted (entries get frozen). The late fee for the difference of date of submission and prescribed due date of filing, till the date of submission is applied in that month itself. In case the return is filed later than the date of submission, then the differential late fee for the gap between date of filing and last date of filing return or date of submission (whichever is later), is added in the next month.s return.
The delay between date of submission (D1) and date of filing (D2) [ie 8th to 23rd September for five days] amounting to Rs. 1000.00 (5*100*2), is to be paid by the taxpayer in the month of October, while filing GSTR 3B return for the month of September. The same is now being added in the return and shown to the taxpayer.

Top 5 things you should know about GST if you are an investor in Indian market

Equity markets mirror the economic fundamentals and if GST is likely to add to that strength, investors have nothing to worry about.

Kshitij AnandMoneycontrol News

The goods & services tax (GST) has moved closer to becoming a reality by July 1, 2017. The GST Council earlier this week fixed tax rates on 1,211 items and released the final list of GST rates for 98 categories of goods.
Although the market has already priced in all the good news about GST, but successful implementation is likely to boost the confidence of investors and improve earnings growth of companies has remained flat or in single digits for the past 4-8 quarters.
Equity markets mirror the economic fundamentals and if GST is likely to add to that strength, investors have nothing to worry about.
We have collated a list of five factors which investors should know about GST and how it will impact markets:

Push GDP rates by 2-2.5 percent

GDP growth is always seen as the strength of any economy. India is growing at a pace of 7 percent and some experts feel that implementation of GDP could well add another 2 percent to its growth rate over a period of time.
“GST will be a big game-changer in sectors such as logistics because most companies will save 1 percent at least on logistics cost of the total cost. It will be very difficult for any company to evade GST,” Rakesh Jhunjhunwala, Partner at Rare Enterprises said in an interview with CNBC-TV18.
“Compliance will bring tax efficiency and raise tax revenues. And, lastly, it will make the economy more and more digital because every return is going to be digital. I think it could raise gross domestic product (GDP) by 2-2.5 percent over a period of time,” he said.
Around 80 percent of the goods will attract 18 percent or less GST against 35 percent of currently taxed at 27 percent or higher. Effectively, the ushering in of GST will help reduce the prices for the end user.
“The articles of daily usage including milk, food grains have been exempt from taxation under GST regime making it easier on the pocket of a common man,” Arun Thukral, MD & CEO, Axis Securities told Moneycontrol.
“The markets have more than welcomed the new rates under GST regime. GST is a structural reform and is expected to accelerate the pace of GDP growth of India post implementation,” he said.

Earnings growth for companies

Implementation of GST will lead to higher economic growth and boost earnings for companies. “As tax rates on mass consumption items come down triggering inflation downtrend, economic growth will be bolstered and support the bottom lines of most firms. This sounds good news for the market as earnings will get better,” Arindam Chanda, Head, Retail Broking, IIFL Group told Moneycontrol.

Sectoral Impact

As GST is one of the biggest tax reforms to be rolled out, it would go on to boost the positive sentiment for the markets. “Sectors which could see a benefit due to the GST rates announced till now would include FMCG, utilities and other metal companies that use coal as an input, dairy, etc.,” Nitasha Shankar, Sr. Vice President and Head of Research, YES Securities India Ltd told Moneycontrol.
“Sectors that could see a negative impact include passenger vehicles especially in light of the cess announced for petrol and diesel vehicles. Post GST, we expect small to mid-segment cars to be impacted which in turn could translate into a gain for the two-wheeler segment,” she said.

Non-inflationary in nature

GST would replace 17 indirect tax levies and improve taxation efficiency. Most goods are placed under the four slabs of services tax i.e. 5, 12, 18 and 28 percent. The government is planning in such a way that GST rates will have no inflationary impact on the economy which means that inflation will remain under RBI control and there are higher chances of a rate cut.
At the same time, the focus is to tag essentials and consumer staples at zero or moderate rate while expanding the tax as the pyramid of the item increases. “We see the benefit to the economy given a deflationary structure to essentials and staple item given lower rate,” Vinod Nair Head of Research at Geojit Financial Services told Moneycontrol.
“Primary items command a good portion of retail inflation, we think that given a cut in effective rate CPI can consolidation due to the base effect. Additionally, as every entity avails input tax credit the effective tax to companies will reduce while government taxes increase due to transparency and accountability,” he said.
Nair further added that effective usage can provide an anti-inflation trend in the economy which will be a benefit to the market given RBI current concern over inflation and neutral stance.

Possible hiccups expected due to GST implementation

Analysts are raising concerns of possible disruption in the market due to the implementation of GST. Even though the government has tried to minimize the incremental impact of this regime change on most of the goods & services, but short term teething problems cannot be ruled out.
“We believe, for the initial year or two, GST rate may not impact prices much as (a) rates are in line with existing practice; (b) participants would take the time to adjust to the new system given competitive intensity and market share dynamics,” Saravana Kumar CIO LIC MF told Moneycontrol.
“As businesses are shifting from VAT-paid system to GST system, there are divergent trends in short term. Few companies are treating distributors as partners and are eyeing to indemnify them for one-time loss which distributors may incur while this change happens,” he said.
Kumar further added that most other companies are not taking inventory markdown risk on their shoulders. There may be short-term issues with respect to the availability of products for short time frame. 

 

source: click here

How to Start a Small Business in India

As we all know, under the rule of present government, Indian economy is taking a beating. Job opportunities are dwindling very fast. Even if you find a job opportunity then it is only for highly skilled people like IT professionals and other kind of experienced jobs.

Not everyone is great in academic qualification. Therefore, what you are going to do when jobs that pays you good money is simply not there. If it is there then it is only for highly qualified or experienced candidates. And its also very difficult to get a sarkari naukari because there is a very high competition for every vacancy.

What you are going to do if you are a young college graduate, a man who is looking for a job for years now, an employee who is fired from his company, a housewife or even a retiree. Well! There is a way out.

You can start a small business in India.

Opportunities for Small Businesses in India

When economy is under pressure and you are looking for a job then best way is to start a small business in India. As I said earlier, you can start a small business on your own.

Opportunities to start a small business here are great. In this article, I will tell you 10 different types of small businesses that you can start and make a lot of money.

You will never run out of ideas in India for starting a small business. There is a lot of thing that you can do even if you do not have much experience. Moreover, you can also easily meet the financial requirements.

The benefits of Small Business in India

Before I talk about 10 different types of small businesses, let me tell you some benefits of starting a small business in India. These benefits you will not find in other types of regular jobs.

SMALL BUSINESS MAKES YOU SELF EMPLOYED

The first one, in small business you are self-employed. You do not have to take orders from your boss. There is no fear of being laid off. Whenever there is a financial crunch, corporation fire their regular employees without any notice.

Here you do not have to worry because you manage your own business and everything depends upon you. Self-employed businessman do not have to worry about economy or anything else, they just keep going.

LONG TERM SCOPE IN SMALL BUSINESSES

When you are starting your own business then you do not have to worry about monthly income. Future of a small business is really great because it is closely run by an individual and close family members. Hence, they take care that nothing goes wrong.

Moreover, you can make huge amount of money like any other business. You do not have to depend on your company or corporation for financial success. If you work as an employee in an MNC then you get salary only what your company decides. However, in running a small business you can make unlimited money. All the profits your company makes in yours.

Everything depends upon you.

BETTER CUSTOMER CARE IN SMALL BUSINESSES

I am not saying but you just visit Google and type the name of any big company or its service followed by complaints & you will find thousands of victim on different forums & complaints boards complaining about the services provided by these companies. Everyone is in the race of making profits only without giving any good service & customer care.

There is no good care about the customer by the large corporations. You have to try very hard even to talk to their customer care dept.

But in small businesses, you will find a good customer care. You can directly talk to the business owner. One of the main reason small business flourish is better customer care.

GOOD TAX SAVINGS IN SMALL BUSINESSES

Well! I am not telling you to evade tax here. We all know this is illegal. However, I want to make a point here that you can save a lot of money in small business.

You can hire a good CA who can give you the best ideas of saving your tax against many expenses that you can show to reduce the tax burden. Check here one of the article which explain about 10 ways to save tax.

Types of Small Business

Now let us see 10 small businesses that you can start in India and make money without having to lose anything.

1. Opening a Small Restaurant

First one, that any young college graduate or a working employee can do is open a small restaurant. It really does not need any kind of experience. Today, when urban centers are growing and people need places to eat out. They do not want to cook themselves but they can pay for eating out. So there is a huge market out there. Read the article on Rediff which discusses 8 key points in starting a restaurant business.

WHAT ARE REQUIREMENTS?

You need to find a location where people are looking for an eat-out. You can try to find locations near companies where young people work. Then you have to pay rent to the owner for the land. First you have to pay yearly advance and then rent on monthly basis.

You also need cook and some basic hotel staffs. 12 to 15 people will do every type of job from cooking to serving to cleaning.

Requirements are:

1. A good Location
2. 12 to 15 Staff for cooking and cleaning
3. Cashier or accountant

HOW TO GET FINANCE?

As I said earlier, you have to pay rent on monthly basis and payment for cooks. Before you start making money, you have to pay these guys who will work 12 hours daily for you.

Usually you get money from your family or you can go for small loans. People start small restaurants with their own hard-earned money. But today banks also give loans for starting up a restaurant. It is very profitable. You can talk to a financial consultant who can better tell you smart ways of taking loans.

Hence, getting finance must not be a difficult thing here.

WHAT ARE DIFFICULTIES YOU MAY FACE?

Well! While starting a small business you might face some difficulties. Here are they.

1. Honest cooks who will work regularly.
2. In starting you need patience if your business is not running in profit.
3. Listen to customers if any complains.
4. Your owner may increase your monthly rent.

2. Opening a Kiosk

Kiosk is nothing but a small stall. Stall can be anything like a tea or coffee shop, which offers some refreshments. It can also be a place serving eateries like cakes, puffs, pastries and cold drinks.

You might have seen kiosks near cinema halls, railway stations, bus stations, government offices, in colleges etc. People will always come there for refreshments. It is very profitable business. You will never lose money.

WHAT ARE REQUIREMENTS?

To run a kiosk you have to wait for tender, you can get a kiosk to run in a good location. You have to talk to your contractor who will give you a kiosk on contract. Here are some requirements before you open a kiosk.

1. You need a small shop or stall
2. Monthly rent to your contractor.
3. Supply of refreshments like cake, puff, cold drinks etc from a bakery that is in contact with you.
4. An honest person to run that kiosk, one or two. If you are busy.

HOW TO GET FINANCE?

Well! To be honest for opening a kiosk you really do not need much money. You can ask your parents if you are a college graduate or if you have money then you can start on your own.

Here money required is very less.

WHAT ARE DIFFICULTIES YOU MAY FACE?

Well! Here getting a contract is going to be very difficult because hundreds of applicants are waiting to get a chance to open a kiosk. Especially if location is very good, where many people come on daily basis.

3. Opening a General Store

Opening up a general store is quite profitable when urbanization is growing rapidly. General store means provision store that caters daily essentials for people. It can be food items, groceries, even apparels.

People have to always fulfill their basic needs so they have to go nearby general store. You can also open a store with all the items that a person needs for his daily life. Store will always  run in profit.

WHAT ARE REQUIREMENTS?

Here you have to arrange few things.

1. A rented shop in a busy area or colony.
2. Loyal customers
3. Little bit of advertisements
4. Some men to bring in goods in the store

HOW TO GET FINANCE?

Financing is just easy as financing a kiosk. In fact, in India opening up a general store is a family business. So it would not be difficult for you.

I recommend you to spend more money on store’s interior. Ambience must be good to improve shopping experience of customers. It means you have to spend more money here.

WHAT ARE DIFFICULTIES YOU MAY FACE?

In this small business only difficulty that you might face is patience. You have to wait for some time before you start making profit. Otherwise, there is no major difficulty.

4. Starting a Coaching Center

Almost everyone in India has seen posters saying “Coaching Classes For Class 12 ” etc. In India, there are millions of students in every city who are in class 10 or class 12. They desperately need tuition and other coaching classes to get better results.

You can definitely get hundreds of students daily to teach them. There is a lot of money to be made here. Students are not satisfied with their regular studies and they are always looking for coaching classes.

Moreover, it is not necessary that you have to teach regular course material. You can also give coaching on personality development, speaking fluent English, computers, cooking, dancing,  painting etc.

WHAT ARE REQUIREMENTS?

Let me explain you some requirements to start this small business.

1. First one is that you have to know a subject that you are teaching. You must have experience and total control on your subject. Any one subject is enough.
2. You need a classroom with a board and some furniture’s. I recommend conducting classes in a good location where it looks professional.
3. You also need a faculty of teachers or instructors. Initially, you can start on your own.
4. Lastly, you have to advertise about your coaching center in newspaper or by distributing pamphlets in colleges, bus stops etc.

HOW TO GET FINANCE?

Let us see how you can finance this business.

1. You need to pay rent where you will take classes. If you do not have enough money then you can start your class in your home also.
2. Later on, you have to recruit or look for new faculty members, teachers who will teach the subjects.
3. You also have to spend on advertisements to get more students.

WHAT ARE DIFFICULTIES YOU MAY FACE?

1. To start a coaching center you have to spend very much on advertisement because you are new to this field.
2. You also have to talk to parents of your students because some students do not perform well.

5. Mail Marketing

Mail marketing is a completely home based business where you can run it from the comfort of your home. It is good for women who cannot go out. Moreover, it takes very little to start this business.

In mail marketing you simply have to promote about a business by sending a mail to various customers. In a mail there will be a pamphlet, which will tell the customers about a product. If they buy that product then you get commission from the company.

WHAT ARE REQUIREMENTS?

Here are some requirements before you start mail marketing business.

1. You have to register for a company.
2. You need to write a sales letter, which must convince the readers.
3. You may need a color pamphlet that is going to tell the benefits of the product you are selling. You can also use black and white print.
4. Envelopes and stamp-posts for sending pamphlets to customers daily.

HOW TO GET FINANCE?

Here getting finance is also very easy. Main spending will be on stationery like envelopes, stamps and mailing costs. If you want to go for color pamphlets then printing cost would be more.

You can get your finance from your family members. You do not need any loan for this type of small business.

WHAT ARE DIFFICULTIES YOU MAY FACE?

Difficulties you might face are

1. You have to write good sales letter that must attract the attention of your customers. You must develop writing skills and this is very difficult.
2. For printing color pamphlets, you have to spend more money. It can cost very much if your budget is less.

6. Opening a Consultancy Service

Do not get panic when I mention consultancy service. You do not have to build a consultancy service like Infosys or Wipro. Here a consultancy service business is where you can afford to build it in few months.

In consultancy service, you will consult young college graduates regarding their future plan. You will make money when you recommend the right company to the college graduates where they can be recruited.

Mainly a candidate will come to a consultancy service to ask a company that can give him a job. In return you charge a fees for telling the right place.

WHAT ARE REQUIREMENTS?

Consultancy services can be very profitable but it needs certain requirements.

1. First you have to build a relationship with major companies (MNC) that needs new recruits.
2. Then you also have to build contacts with local companies which are very small and they hire few candidates.
3. Off course like other small businesses, here also you need an office space. You can even start from your home if you like.
4. You also need to spend on advertising your consultancy service. You can buy space in newspaper for classified ads.

HOW TO GET FINANCE?

Well! Banks do provide loans if you want to start a small business like consultancy service. You can also invest money from your savings. But ultimately in consultancy service more than money you require the knowledge.

WHAT ARE DIFFICULTIES YOU MAY FACE?

As I said earlier here only difficulty you might face is building a contact or relationship with major companies and small companies.

You have to know them all and stay in touch with them. It is not very easy because you must have some adjustment or influence in these companies to get important knowledge out of them. You might face this major difficulty.

7. Network Marketing

In earlier blog posts, we did talk about the network marketing. Network marketing is actually a no brainer. Even if you are 10^th pass you can become a network marketer & make money like a very successful doctor or an engineer.

In network marketing, you have to build a team under you, which is going to sell products to customers. First, you have to start alone and convince people about a product. For example, you can start with Amway products. Check the list of top 10 MLM companies in India.

You have to get people to become member under your leadership. You have to expand your  network with more members enrolling in it.

WHAT ARE REQUIREMENTS?

1. First is you have to sign up for a company like Amway. For registration, you have to pay small fees.
2. Then you need some time to promote the product among people.
3. Lastly, here requirements are not any physical like office space or paying rent. Here you need to have certain qualities like leadership, hardworking, honesty, and also smartness.

HOW TO GET FINANCE?

The good news about this small business is that you do not need any money. Yes, you need small amount of money only to be registered. That is all. In fact, you will make money after you start getting members.

This is a small business where investment is zero and in return, you can make a lot of income. All depends on your hard work and leadership quality.

WHAT ARE DIFFICULTIES YOU MAY FACE?

The only difficulty you may face is how to overcome your shyness. Here you have to stand like a leader and motivate your team members. Check the top 10 strategies that will help you to become a successful MLM leader

Second is that you need a lot of time. You can do as a part time work but still ample time is certainly required here.

8. Counseling

A counselor is a person who gives an advice to people who want solution for their problems. Counseling is different from teaching because it is very personal. A counselor will meet its client one on one.

In India where middle class is growing rapidly and people’s income is increasing, they would not mind to spend extra money for consulting a counselor. They are ready to pay that cost if they see their problems are solved through counseling.

There are different types of counselors however, I tell you some of them which people are looking for. Career counselor, marriage counselor, mental health counselor, relationship counselor, counseling about how to grow a kid etc .

WHAT ARE REQUIREMENTS?

Here are requirements to be a counselor.

1. You must know your subject very well, only then you can help others.
2. Affluent people in this country only prefer counseling. So you need to open your office in an area where people from affluent class lives.
3. Here building contacts with people is very important. Whenever you attend conferences, seminar, parties or concerts never forget to give them a card printed with your name and address. Card will tell them about your counseling job.

HOW TO GET FINANCE?

Here your main expenditure would be in building contacts with people, who are very affluent. You have to spend on travelling for meeting various people from different lifestyles.

Moreover, to have an office in a posh area is also very costly. So you need finance for these two things.

WHAT ARE DIFFICULTIES YOU MAY FACE?

Here you have to wait for clients before you start making money. Moreover, you also have to spend money for office space in a posh area.

In India, ordinary people do not know about counseling. They go for rudimentary form of advice from non-professionals. Therefore, awareness is low among ordinary people.

9. Taking a Franchise

Few days back I wrote an article about how to become a franchise. Starting your small business as a franchisee is different from opening a general store. Opening a general store means you are just one entity. However, starting a franchise means you have to become part of a corporation.

You have to take license from franchise like McDonalds, Café Coffee day, Star Bucks, Pizza Hut etc. With their permission, you can open a store and make profit. You do not have to wait for customers because these are very popular brand.

WHAT ARE REQUIREMENTS?

Here are some of the requirements.

1. You need a license from the franchise.
2. You will have to hire a lawyer for legal requirements.
3. To open an outlet you need a space, which is good enough.
4. Team member who can work at least 12 hours a day.

HOW TO GET FINANCE?

You can get loan from banks or you can also ask your family members to involve in this business. Opening a franchise is quite difficult because you need an area that attracts lot of customers.

WHAT ARE DIFFICULTIES YOU MAY FACE?

The major difficulties could be

1. Arranging finance would be a major challenge.
2. Legal requirements would not only cost you extra money but needs an extra effort.

10. Online Business

The last and most effective small business that you can begin is online business. You start earning money from the comfort of your home. You can make hell lot of money with minimum investment.

There are different types of jobs that you can do online. You can become a blogger, data entry job, internet marketer, freelance writing jobs etc. Today thousands of people in India are making money online.

No experience is required, anyone can make money online.

You can find more about top 8 online business ideas here.

WHAT ARE REQUIREMENTS?

For an online business, requirements are very less.

1. You need a desktop computer with an internet connection.
2. You need typing speed of 20 to 30 words per minute.
3. Writing skills are very important.

HOW TO GET FINANCE?

I do not think you need any finance to get a computer with internet connection. If you have a mobile phone, then getting a desktop with internet is not that difficult.

WHAT ARE DIFFICULTIES YOU MAY FACE?

1. You have to be careful about scams and do not think that online business is get rich scheme. Nothing will happen overnight, you have to wait with patience. This is not a jackpot.
2. Do not give up too early, you must try then only you will succeed.

source: http://moneyconnexion.com/how-to-start-a-small-business-in-india.htm

Due Dates for Service Tax Payment & Return Filing

Service tax payment due dates vary according to the business structure of the entity. Individuals, proprietorships and partnerships must make payment once every quarter, while private limited companies, one-person companies and limited liability partnerships must make payment every month. The service tax rate is currently 15% and all payments collected can be deposited either online or physically. Remember, however, that due dates for physical payment fall a day before online payment due dates.

Service Tax Payment Due Date for Individuals, Sole Proprietors & Partnerships

Individuals, Sole Proprietors and Partnerships must make service tax payments once every quarter, regardless of the total tax payment. However, in case total payments exceed Rs. 1 lakh per annum, payment must be made online.

Online Due Dates: The due date for the first quarter (April to June) is July 6. For July to September, it’s October 6, for October to December, January 6, and for January to March, March 31.

Any Other Channel: The due date for the first quarter (April to June) is July 5, for July to September, it’s October 5, for October to December, it’s January 5, and for January to March, it’s March 31.

Service Tax Payment Due Date for Companies & LLPs

Private limited companies, one-person companies and limited liability partnerships must make service tax payments once every month. In case total payments exceed Rs. 1 lakh per annum, payment must be made online.

Online Due Dates: The due date is the 6th of the month, when payment must be made for the preceding month. For example, by May 6, service tax payment must be made for the entire month of April. The exception is March, the deadline for which is March 31. This means that service tax returns for the month of March are due on the last day of the same month.

Any Other Channel: The due date is the 5th of the month, when payment must be made for the preceding month. For example, by May 5, service tax payment must be made for the entire month of April. The exception is March, the deadline for which is March 31. This means that service tax returns for the month of March are due on the last day of the same month.

How to Make Service tax Payment

Online Payment: To make payment online, what is called e-payment, you must have a net banking account with one of the banks listed here. Do note that some private banks may only be available in certain divisions. If you already do, simply log on to this NSDL page and enter your 15-digit service tax number. Enter the captcha code and verify your personal details, which will appear on the screen.

Now tick the Service Tax accounting field. You must now select your industry you’re operating in (Air Travel Agency, Advertising Agency, etc). Then enter the Krishi Kalyan Cess field in the second table.

Once done, find your bank and make the payment. You will receive an acknowledgement indicating the Challan Identification Number. This is proof, to be shown at the time of filing your returns.

Physical Payment
Payment must be made at a branch via the GAR-7 challan, which you can download here. On payment, the teller will stamp the challan identification number, which contains the serial number of the challan, the BSR code of the bank and the date of deposit. All three must be stamped to be valid while filing the return.

Service Tax Returns

The due date of filing service tax returns for first half of the year is 25th October and 25th April for the second half of the year.

ST-3 Returns: Usually, a service tax assessee needs to file two types of returns: ST-3 Returns and ST-3A Returns. ST-3 Returns are applicable for a registered assessee. ST-3A Returns are applicable for those who make provisional assessment under rule 6(4) of the Service Tax Rules, 1994. You need to file ST-3 Returns twice in a financial year on a half-yearly basis.

If you want to file your service tax returns online, first you need to register with ACES (Automation Central Excise and Service Tax) by visiting website of Central Board of Excise and Custom.

Once, you register, the site will send you an user ID and password by using which you can log in to the site of central Board of Excise and Custom and get access to FORM ST-1. Then, fill up the online form by putting all required information and make an e-payment by using your chosen bank. You can also revise your service tax returns in order to correct an error or omit something. If you fail to file your returns within 15 days, from the prescribed due date of returns, you need to pay a penalty fee of Rs. 500.

source:https://vakilsearch.com/advice/due-dates-service-tax-payment-return-filing/

How To Register Under Startup India

If you’ve read about Prime Minister Narendra Modi’s ambitious Startup India project, you’ve probably wondered how the term ‘startup’ is defined by it. So let’s figure out what it all means.

The government has clearly mentioned that any company or legal entity that wishes to reap the benefits of this policy must be either a company (private limited or one-person company), a limited liability partnership or a registered partnership. This means that proprietors and unregistered partnerships will not qualify.

Once you get your company registered in any of the above-mentioned structures, a couple of things need to be taken care of.

1) Your company must be less than five years old.
2) The turnover of the said company in any year should not have exceeded Rs. 25 crore.
3) The company should be working towards innovation, development, commercialization of new products or services driven by technology or intellectual property. However, any such entity formed by splitting up an earlier company or restructuring it will not be considered a ‘startup’.

The aforementioned set of requirements needs to be fulfilled by the entity while they’re filling up the Startup India form.

Let’s look at the next of necessary conditions.
1. A startup that fulfils the conditions mentioned above must also get a certificate of being an eligible business from the Inter-Ministerial Board of Certification. Now, the Inter-Ministerial Board may consist of joint secretary of the department of industrial policy and promotion, representative of the department of science and technology, a representative of he department of biotechnology.

2. A recommendation, with regards to the innovative nature of the business, in a format specified by the department of industrial policy and promotion, from any incubator established in post-graduate college in India; or a letter of support from an incubator which is funded by the central or state government as part of a specified scheme to promote innovation.

3. A letter of funding of not less than 20% in equity by an incubation fund/agent fund/private equity fund/accelerator/angel network that is duly registered with the securities and exchange board of India (SEBI) which endorses innovation.

4. Letter of funding of not less than 20 percent in equity by any Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/ Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit;

5. A letter of funding by the central or state government as part of any specific scheme to promote innovation.

6. A patent filed and also published in the India Patent Office’s journal in areas affiliated with the business that is being promoted.

Once you’re done with all the above, move to fill the application form here

We suggest you register yourself as a private limited company and apply for a patent in your company’s name. Other than the numerous advantages that one might have as a private limited company, patents also add value to your firm’s portfolio, and increases your market standing. Once your patent application is successfully through, get your application at the Startup India scheme going.

source:https://vakilsearch.com/advice/startup-india-registration/

Union Budget 2017 LIVE updates:

12. 55 pm: Arun Jaitley introduces Finance Bill in Lok Sabha. House stands adjourned. Thank you for following our live blog.

12. 55 pm: Arun Jaitley concludes his budget presentation

12. 52 pm: One page tax filing form for taxable income under Rs 5 lakh

12. 51 pm: Those individuals in the tax bracket of Rs 50 lakh will stand to benefit from a tax rebate of Rs 12,500.

12. 50 pm: Jaitley reduces existing rate of taxation for individuals with income between 2.5 lakh to 5 lakh to 5% instead of 10%; Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore; Surcharge on Rs 1 crore or more remains unchanged.

12. 47 pm: Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment

12. 44 pm: Political funding reforms:

Max amount political party can receive in cash donation will be Rs 2000 from any one source

Political parties will be entitled to recieve donations by cheque or digital mode

Additional step amendment proposed to RBI act to enable issuance of electoral bonds in accordance to scheme by GOI. Donor could purchase bonds from authorised banks. Redeemable only in registered accounts of party.

12. 42 pm: A proposal to receive all government receipts beyond a certain threshold through e-modes under consideration

12. 41 pm: No cash transcations above Rs 3 lakh, announces Arun Jaitley

12. 40 pm:  We are committed to make our taxation rate reasonable, our tax administration more fair and expand the tax base of the country

12. 39 pm: Basic customs duty on LNG to be reduced from 5% to 2.5%, announces Arun Jaitley

12. 37 pm: Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector

12. 36 pm: The net tax revenue grew by 17% in 2015-16, says Jaitley

12. 34 pm: Deposits between Rs 2-80 lakh made in 1.09 cr accounts post demonetisation, says Jaitley

12. 33 pm: Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried, says Jaitley

12.30 pm: Due to demonetisation advance tax on personal income tax increased by 34.8%

12. 30 pm: The rate of growth in advance tax in personal income tax domains has increased by 34.81%

12. 29 pm: Coastal roads of 2,000 kms to accelerate development of Coastal Economic Zones

12. 28 pm: 3.7 crore individuals filed tax returns, 99 lakh of them below taxable limit. Number of people with more than 50 lakh income is 1.26 lakh, says Jaitley

12.26 pm: Predominance of cash in our economy makes it easy for people to avoid taxes, we are largely a tax non compliance society, when too many people evade taxes burden falls on those who are honest, says Arun Jaitley.

12. 23 pm: Total resources being transferred to the states & union territories with legislature is Rs 4.11 lakh crore. Budget allocation for highways stepped up to Rs 64,000 crore in FY18 from Rs 57,676 crore. Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr. Fiscal Deficit target for 2017-18 is 3.2%.

12. 22 pm: Defence expenditure excluding pension at Rs 2.74 lakh crore, says FM Arun Jaitley

12. 21 pm: The total expenditure of budget 2017-18 has been placed at Rs 21.47 lakh crore, says  Arun Jaitley

12. 20 pm: Good news for those who have to travel long distances for obtaining a passport. Arun Jaitley has announced that Head Post Offices will now be used as the front office for passport services.

12. 19 pm: Forex reserves to offer a cover for 12 months of imports, announces Arun Jaitley

12. 18 pm: New law to confiscate properties/assets of economic offenders fleeing country

12. 18 pm: Select airports in tier-II cities to be taken up for operations, development on PPP mode

12. 17 pm:  Chandigarh and eight districts of Haryana have been declared Kerosene free

12. 15 pm: Railway tariffs to be fixed on the basis of cost, social obligation and competition; Railway related state-run companies like Ircon, IRCTC to be listed on stock exchanges, says Arun Jaitley

12. 13 pm: 125 lakh people adopted the BHIM app so far; merchant version of Aadhaar-enabled payment will be launched shortly for those without debit cards, mobile phones. Govt will launch two new schemes to promote the use of BHIM app.

12. 12 pm: Priority will be given to tribal, Dalit, women to setup greenfield enterprises, says Arun Jaitley

12. 11 pm: Action plan to eliminate Kala Azar and Filariasis by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025

12. 10 pm: Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent, Jaitley says.

12. 09 pm: Transport sector allocated Rs 2.41 lakh crore and Bharat Net Project allocated Rs 10,000 crore

12. 06 pm: The Foreign Investment Promotion Board has been abolished, Jaitley announced, adding that further liberalisation in the FDI policy would be taken in the next few days.

12.00 pm: Total investment for infrastructure in budget 2017 stands at a record Rs 3,96,135 cr, says Arun Jaitley.

11. 59 am: Railways will integrate end to end transport solutions for selected commodities through partnership. By 2019, all coaches of Indian Railways will be fitted with bio-toilets.

11. 57 am: At least 25 stations expected to be awarded during 2017-18; 500 stations will be made differently abled-friendly by providing lifts and escalators

11. 56 am: A new metro rail policy will be announced, this will open up new jobs for our youth: FM Jaitley

11.55 am: Good news for all those who book tickets on IRCTC. You will no longer have to pay service charge, announces Jaitley.

11. 54 am: Rs 1.3 lakh crore has been allotted for solar power, disabled friendly stations. Rail safety fund with a corpus of Rs 100,000 crore to be created over a period of 5 years. Jaitley announces Rs 55000 crore for Railways in Budget 2017. Capital and development expenditure pegged at Rs 1.31 lakh cr for railways in 2017-18 from Budget.

11. 53 am: Focus is on swachch railways, says Jaitley. Steps will be taken to launch dedicated trains for pilgrimage and tourism, he says.

11. 52 am: Jaitley also announced the restructuring of University Grants Commission.

11. 49 am: On health, the government proposes to eliminate tuberculosis by 2025.  Two new AIIMS Hospitals to be set up in Jharkhand and Gujarat

11. 49 am: Budget allocation for welfare of women and children under various ministries increased to Rs 1,84,632 cr.

11.48 am: The government is looking to complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses. Open defecation free villages are now being given priority for piped water supply.

11. 47 am: SANKALP – 4000 crores allotted to train for market oriented training. At least 3.5 crore youth will be provided market-relevant training under Sankalp programme

11. 46 am: For youth, proposed to introduce a system of measuring annual learning; Science to be given focus; Quality education will energize our youth. Skill centres will be set up across the country to help youth seeking opportunities outside the country

11. 45 am: 100% village electrification will be achieved by May 1,2018

11. 43 am: Minilabs by qualified local entrepreneurs to be set up for soil testing in all 648 krishivigyan kendras in the country

11. 42 am: Allocation for Pradhan Mantri Awaaz Yojana up from 15,000 cr to 23,000 cr

11. 40 am: Sanitation in rural areas has gone up from 42% in October 2014 (launch of Swachh Bharat) to 60% now.

11.37 am: PMGSY roads work accelerated to 133 km roads/day in 2016-17 as against 73km/day during 2011-14, says Arun Jaitley

11. 35 am: MGNREGA should create productive asets to improve farm productivity, incomes. MNREGA allocation increased. Highest ever allocation for MNREGA at Rs 48,000 crore. Participation of women in MGNREGA up to 55%.

11. 30 am: We will support Nabard for 63,000 functional PACs. Done in 3 years at an estimated cost of Rs 1,900 cr.  Issurance of soil health cards have gathered momentum.  Fasal Bima Yojana – 40% cropped area to be covered in 2017-18, 50% in 2018-19. A dedicated fund worth Rs 5,000 crore to be set up for micro-irrigation under Nabard

11. 26 am: With better monsoon, agriculture is expected to grow at 4.1%. Target for agricultural credit for 2017-18 is set at ten lakh crore, announces Arun Jaitley

11. 24 am: “We are aware we need to do more for our people, our agenda is transform, energise and clean India, that is ‘tech India'”

11. 25 am: Surplus liquidity in banking system created by demonetisation will lower borrowing cost and increase access to credit.

11. 23 am: “My aim while preparing the budget this year has been to spend more in rural areas, infrastructure and poverty alleviation and yet maintain fiscal prudence.” We have done away with planned and non planned allocation of resources to states, Jaitley says.

11. 22 am: “Demonetisation to create a new normal for a bigger, cleaner GDP; slowdown, if any, will be only transient. Effects of demonetisation will not spill over to the next year. Demonetisation is a bold and decisive measure, for many decades tax evasion was a way of life for many. I am reminded of what our father of the nation Mahatma Gandhi said ‘a right cause never fails’.”

11. 21 am: India’s Current Account Deficit decreased from about 1% of GDP last yr to 0.3% of GDP in 1st half of 2016-17. Growth in a number of emerging economies is expected to recover in 2017. India remains a bright spot in global economy, we are seen as an engine of global growth.

11. 18 am: “CPI inflation is expected to remain within RBI’s mandated range of 2 to 6 percent. International Monetary Fund estimates that the world GDP will grow by 3.1% in 2016 and 3.4% in 2017.”

11. 15 am: “FII has increased from Rs 1.07 lakh crore to Rs 1.45 lakh crore. India has become the sixth largest manufacturing country in the world. Government has ensured fiscal consolidation without cutting back on public investments.”