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Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
This article clarifies the concept of a non-resident taxable person under India's GST law. It outlines the mandatory registration process, including specific requirements for those without a fixed Indian business presence. The content further details the necessary advance tax payments and the procedure for extending registration periods, concluding with an illustrative example for practical understanding.
Composition scheme taxpayers frequently face challenges when negative liability statements appear during CMP-08 filings, preventing timely tax payments. This issue often stems from not correctly reporting Table 6 of GSTR-4 in prior financial years, leading the GST portal to incorrectly carry forward excess tax. The article details how to view these statements and offers specific rectification methods, including contacting GSTN support or adjusting subsequent GSTR-4 and DRC-03 filings, depending on whether the previous GSTR-4 has been submitted.
This detailed guide explains the process of registering a Limited Liability Partnership (LLP) in India, a popular business structure combining elements of partnerships and companies. It covers the key characteristics, benefits, and potential drawbacks of an LLP, including its separate legal identity and partners' limited liability. The article outlines the five-step registration procedure, from obtaining a Digital Signature Certificate (DSC) to filing the LLP Agreement, and lists all necessary documents. It also provides an overview of essential LLP forms and a comprehensive registration checklist for entrepreneurs.
This comprehensive guide demystifies rental agreements in India, outlining their essential components and legal validation processes. It explains the distinction between rent, lease, and leave and license agreements, detailing their respective durations and key implications. The article also covers the procedural steps for drafting, signing, and registering these vital documents, emphasizing requirements for security deposits and crucial considerations for property owners before leasing.
The Indian e-commerce market has witnessed significant growth, leading to the rise of online marketplaces. The Goods and Services Tax (GST) framework has introduced specific regulations for sellers operating on these platforms. Key implications include exemptions from standard GST registration thresholds for certain e-commerce sellers and their ineligibility for the Composition Scheme. Additionally, marketplace operators are mandated to collect Tax Collection at Source (TCS), affecting sellers' cash flow. Proactive planning for GST transition is crucial for these vendors.
House Rent Allowance (HRA) is a salary component in India offering tax benefits under Section 10(13A) of the Income Tax Act for employees paying rent. This article explains who can claim HRA, detailing the specific rules for both salaried and self-employed individuals, and outlining the exemption limits based on city type. It also provides a practical example to illustrate the HRA calculation process. Claiming HRA requires fulfilling certain conditions and maintaining essential documents like rent receipts and rental agreements, especially under the old tax regime, as the new regime does not offer this exemption.
Input Service Distributors (ISDs) play a crucial role in GST by distributing common input service tax credits to their various operational units. This article explains the mandatory provisions and conditions for ISDs under GST Rule 39, effective from April 1, 2025. It details the precise methods for allocating different types of Input Tax Credit (ITC), addressing various scenarios for distribution based on usage and turnover, and outlining implications of debit/credit notes for ISDs. The information ensures businesses understand compliance and recovery processes related to ISD operations.
Section 10(10D) of the Income Tax Act allows certain life insurance proceeds, including maturity benefits and bonuses, to be exempt from income tax. This exemption depends on specific conditions related to the annual premium amount compared to the sum assured. Different premium limits apply based on the policy issuance date and type, but death benefits are generally tax-free.
This guide details the essential processes for businesses to transition their Input Tax Credit (ITC) from the pre-GST tax regime to the current Goods and Services Tax framework. It explains the purpose and filing requirements of GST TRAN 1 and TRAN 2 forms, outlining the specific information needed for various scenarios like capital goods, job work, and stock held by agents. The article also covers conditions for claiming ITC on old stock and the applicable claim percentages, ensuring businesses can effectively carry forward eligible credits.
This article outlines the process for businesses to carry forward pre-GST input tax credits into the new regime using Forms TRAN 1 and TRAN 2. It details who is eligible to file these forms, the specific information required in each, and critical conditions for claiming credit on old stock and capital goods. The guide also covers special scenarios like goods sent for job work or held by agents, ensuring a clear understanding of the transition provisions.
Businesses transitioning to the Goods and Services Tax (GST) regime can claim pre-GST input tax credits using specific forms. This article explains the requirements for Forms TRAN-1 and TRAN-2, which allow taxpayers to carry forward credits from old tax systems for various scenarios, including existing stock, capital goods, and goods held by job workers or agents. Adhering to these transitional provisions is essential for a smooth credit transfer.
This article provides a comprehensive overview of essential definitions and interest rates pertaining to Goods and Services Tax (GST) refunds in India. It clarifies key terms such as 'Refund' and 'Assessment' and details how the 'Relevant Date' is determined for various refund claims. Furthermore, the guide explains the calculation of interest on delayed refunds, including specific rates and conditions set by the GST law and recent budget amendments.