Integra ERP Solutions

Goods and Service Tax (GST)

GST – FEATURES

Goods and Service Tax is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by states and Central. Businesses are required to obtain aGST Identification Number in every state they are registered

GST is a consumption based tax/levy. It is based on the “Destination principle.” GSTis applied on goods and services at the place where final/actual consumption happens. GST is collected on value-added goods and services at each stage of sale or purchase in the supply chain

GST offers benefits to the government, the industry, as well as the citizens of India. The price of goods and services is expected to reduce under the new reform, while the economy will receive a healthy boost. It is also expected to make Indian products and services internationally competitive.

► Reduction in prices of goods & services due to elimination of cascading

► Applies to all supplies of goods / services (as against manufacture, sale or provision of service) made for a consideration except –

o Exempted goods / services

o common list for CGST & SGST Goods / services outside the purview of GST

o Transactions below threshold limits

► Dual GST having two concurrent components

o Central GST (CGST) levied & collected by Centre

o State GST (SGST) levied & collected by States

► CGST & SGST on intra-State supplies of goods / services in India

► IGST levied & collected by the Centre applicable to

o Inter-State supplies of goods / services in India

o Inter-state stock transfers of goods

o Import of goods / services

o Export of goods / services (if made on payment of GST under claim of rebate)

► Export of goods / services – Zero rated

► All goods or services likely to be covered under GST except:

o Alcohol for human consumption –State Excise + VAT

o Electricity - Electricity Duty

o Sale / purchase of Real Estate - Stamp Duty + Property Taxes

► Five specified petroleum Products – to be brought under GST from a later date on recommendation of

GSTC

► Tobacco Products – under GST + Central Excise

► Floor rate with a small band of rates for standard rated goods / services for CGST & SGST

► Optional Threshold exemption in both components of GST

► Optional Compounding scheme for taxpayers having taxable turnover up to a certain threshold above the

exemption

► Periodical Tax return filing is required

GST invoice format from Integra ERP

Tax deduction at source (TDS)

Tax deduction at source

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

How to pay Tax Deducted/Collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

1) Electronic mode: E-Payment is mandatory for
- a) All corporate assesses; and
- b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
2) Physical Mode: By furnishing the Challan 281 in the authorized bank branch

Rates for deduct of tax at source

Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered .

To see the Rate of deduction please visit

goods and service tax

VAT

A value added tax (VAT) is a consumption tax added to a product's sales price. It represents a tax on the "value added" to the product throughout its production process.

HOW IT WORKS :

The VAT system is invoice-based. Each seller in the product chain includes a VAT charge on the buyer's invoice. Under a VAT taxation system, all sellers collect the tax and then pay it to the government. The VAT gives sellers along the supply chain a direct economic motivation to collect the tax, thereby reducing the incidence of tax evasion.

Don't confuse the VAT with sales tax. Under a sales tax, the tax is collected only once at the consumer's point of purchase. The VAT tax, however, is collected every time a business purchases products from other businesses within the product's supply chain.

The VAT is a highly efficient flat consumption tax that reduces the incidence of non-compliance. More than 100 countries have adopted it -- with rates ranging from 10% - 25%.

VAT reports
To comply with VAT requirements, separate reports have been provided for sales, sale returns, purchases and purchase returns. In addition, a summary report on VAT computation and cess on VAT is also available. E-Filing is made easy through generation of the required files.

Lists

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Professional Tax (PT)

Professional Tax

Professional Tax is a tax which is levied at the state level in our country. People who practice a profession of a Chartered Accountant, Cost Accountant, Lawyer, Company Secretary, Doctor or are a Businessperson/Merchant and earn through such professions are liable to pay professional tax in some states of the country.

The amount of Professional Tax you pay is calculated on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500.

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BEST GST BILLING AND FILING SOFTWARE