Accountantjee

TDS - Tax Deducted at Source. It means collection of tax on income whether it may be salary, rent, dividends etc. In laymen terms Buyer before making payment to the seller need to deduct TDS & deposit it to the government on seller behalf.  Behind the Scene- Once the buyer deduct TDS & deposit it to the Government. The seller incomes get reported to the Government. The Government now is aware of the income of the seller, hence seller cannot show his income less than what it is recorded with the government.  The below list is the details of various TDS rates applicable to resident & non-resident payments as well as TDS rates on domestic and foreign companies. { R- Resident, NR- Non-Resident, FC- Foreign Company } Section- 192 Deductee- R, NR Nature of Transaction- Payment of Salary Threshold Limit- Basic exemption limit of everyone TDS Rate- Normal as per slab rates Section-  192A Deductee-  R, NR Nature of Transaction-  Premature withdrawal from EPF ...

What is RCM? The full form of RCM is Reverse Charges Mechanism. Normally the supplier of Goods or Services needs to pay tax on its supply. But under the RCM the person who receive the service or Goods are liable to pay tax to the Government i.e. the chargeability gets reversed.  Why RCM? The basic objective of shifting the burden of GST payment to the recipient is to widen the scope of levy of tax on various unorganized sector in India.  The 2 below diagram will help you to build better understanding of RCM in GST.  In normal case- In RCM case- What are the case where RCM is eligible? Supply by Unregistered Dealer. In case unregistered person is selling goods or providing any services to the registered person, then the liability to pay shifts on the registered person i.e. the recipient of goods/services, where such supply is of taxable supplies. The main idea is to prevent tax evasion since it is difficult to collect tax from the unregistered dealer.  Service Provide...

What's the difference between GSTR2A & GSTR2B? was one of the question which interviewer asked me during the interview. As I handle GST of the company in which I am currently working I was aware of the answer. Same question was asked to the other person who also came for an interview. He was handling import export related work & was unaware of this difference. I thought there might be others to who might not be handling GST related work, but want to know it. So I thought to write a detail article on this topic & later will cover other topics too. What is GSTR2A? A. Introduction Form GSTR2A gives the details of Input that company can avail by filing return. But what make it different from GSTR2B is- it is Dynamic in nature. It may vary day to day when the supplier uploads the documents. In short we can say It contains information of Auto Drafted Supplies. B. Detailed Info Form 2A is automatically generated return that shows inbound supplies (purchase-related transactions...

If your turnover exceeds 10 Crore for the previous year then it is now necessary to check every month for two things-  First is there any Debtors to whom the sales exceeds 50 lacs if yes then- you have to give them declaration stating that we will deduct TCS & if they are liable to deduct TDS u/s 194Q then we will not collect tax. Second is there any creditor from whom the purchases exceeds 50 lacs if yes then- you have to give them declaration stating we will deduct TDS u/s 194Q.   Below are the format which will assist you to send declaration to party. Seller to Buyer format (On the Letterhead of Seller) To, (Buyers Name & Address) Sub: Regarding declaration due changes in provision under Income Tax Act-1961 Dear Sir / Madam, We, ________________________, having PAN______________ hereby inform you that our total sales/gross receipts/turnover during financial year 2020-21 was more than Rs.10 Crore. Therefore, provisions of Section 206C(1H) are applicabl...

House- everyone dreams of this, save there part of income for this and hopes to achieve it one day. Owing a house property comes with some amount of responsibilities. Paying house property taxes is one of them.  There are mainly two reason to calculate taxable income from house property  1. If you have given your property on rent, you may have to pay tax.   2. If you have not given it for rent & taken a home loan, you can save tax.   Now let understand some of the basic terminologies. 1. House Property - Building or land appurtenant*thereto (connected with the building like garden, garage etc.) 2. Building Includes -  Residential Building, Office Building, Shops, Factory, etc 3. Self-Occupied house property- Your property. You are the owner of that property. 3. Let out- It means giving your property on rent to other person. 4. Sub-Let out- Means you give your rented property on rent to somebody else. (rent on rent) Now to arrive at the figures which show th...