Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: VAT Audit :: ACCOUNTING STANDARDS
Direct Tax »
 Filing tax return before March 31? Here is what you should do and what not
 CBDT invites suggestions to draft new Direct Tax Law
 Deadline For Income Tax Returns Filing Only 12 Days Away. 10 Points
 Income Tax: E-assessment ensures greater efficiency in the taxation system
 10 Points Deadline For Income Tax Returns Filing Only 2 Weeks Away.
 Income tax returns (ITR) filing: A step by step guide to check your ITR status online and offline
 How to save tax; amazing tips to make your money stay in your wallet Income tax returns (ITR) filing
 Want to save tax? Here are the best options
 Suggestion For Option To Assessee For Higher And Lower TDS/TCS For Optimization Of Tax Collection And Refunds
 CBDT to conduct nationwide review of tax collection for FY18 today
 Here are a few last-minute tax saving ideas Not planned taxes yet?

CBDT proposal on advance estimates of tax liability irks industry
September, 21st 2017

A draft notification by the Central Board of Direct Taxes (CBDT) has not gone down well with the industry, which said it would increase compliance burden on them at a time when they are already struggling to cope with issues related to the goods and services tax (GST) regime. However, some of them said that the notification is aimed at bringing about transparency.

The CBDT had proposed that companies and taxpayers, who have to get their accounts audited, will be required to submit their income estimates and tax liability for six months of the financial year 2017-18 to the I-T department by November 15.

It had come out with a draft notification seeking stakeholders' comment on the filing of Form 28AA by giving details of income and advance taxes paid.

Naveen Wadhwa of Taxmann says currently taxpayers are struggling with compliance burden after the introduction of GST, the Income Computation and Disclosure Standards (ICDS) norms and Indian Accounting Standard (Ind-AS). "Such reporting will put additional compliance burden on taxpayers," he said.

Also, businesses have to specify the reason for any reduction in advance tax payment compared to preceding financial year.

Also in cases where the total income has declined by Rs 5 lakh or 10 per cent, whichever is higher, compared to the previous financial year, taxpayers will have to furnish a similar statement of income and tax liability for the April-December period by January 31.

Sanjay Sanghvi of Khaitan & Co says this is an onerous task, as compliance is being imposed on businesses and taxpayers, which seems to be going overboard. In addition to the GST filings and four instalments of advance tax (including for individual taxpayers), this new obligation will put too much of pressure.

The Rs 5-lakh threshold for this new obligation also seems to be quite low, he said, adding this is rather a very harsh and onerous obligation being cast upon taxpayers and needs reconsideration.

It may be noted that small taxpayers opting for presumptive taxation scheme are also liable to pay advance tax in one go.

However, they have been exempted from disclosing their estimated income in Form 28AA.

However, these disclosures are voluntary in nature.

"It is proposed to create a mechanism for self-reporting of estimates of current income, tax payments and advance tax liability by certain taxpayers viz-a-viz companies and tax audit cases, on voluntary compliance basis," CBDT said.

Frank D'Souza of PwC says given that the filings are voluntary, it remains to be seen how active the participation by taxpayers would be. "One also needs to factor in the additional compliance burden that this would impose on the taxpayers," he says.

The draft, if finalised, will help the tax department to get an idea about the trend of income of the entity on an almost real-time basis.

Neha Malhotra of Nangia & Co says the move is in line with government's efforts to bring more transparency in tax administration. "It will help make advance tax payment a more formalised process," Malhotra says.

However, Malhotra is of the view that it increases the compliance burden on taxpayers at a time when businesses are still struggling with GST-compliance.

"Now more questions would be asked if there is a variation between computation filed at the time of advance tax payment and tax filed at the time of income tax return," she says.

Under the present mechanism, taxpayers have to only pay an advance tax to the CBDT on income tax payable for the full financial year in four instalments. These instalments can be advanced on the 15th of June, September, December and March. They need not provide the I-T department estimates of income.

The CBDT plans to insert Rule 39A in the Income Tax Rules wherein companies and those assessees who have to get their accounts audited will have to submit Form 28AA, giving details of income and tax paid.

Such taxpayers are further liable to pay interest for deferment of advance tax, in case any quarterly instalment of advance tax paid falls short of the prescribed percentage of the total advance tax paid.

"It is of utmost importance for such taxpayers to arrive at a reasonably accurate estimate of their current income and advance tax liability so that the additional burden on account of interest for default or deferment of advance tax can be avoided," the CBDT said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions