Author: Padmanathan KV

A Qualified Chartered Accountant based at palakkad. He is a partner at K.V.Venkitaraman & co., Chartered Accountants, specializing in the field of Income Tax and GST advisory, audit and litigation. He has represented his clients before various forums such as Income tax and GST officers, Comiissioner (appeals), Income Tax tribunal, Authority for Advance Ruling and so on. He has written numerous articles, some of which are published in reputed law reports such as GST Law times, taxmanagementindia, etc. He has delivered various papers on Income Tax and GST on various forums such as ICAI, ICMAI and other professional bodies. He is also a Faculty for ICMAI Chapter, palakkad for Direct and Indirect Taxes.
Apr 28

Why you should file your returns early?

Even though many taxpayers file their tax returns on or about 31st July every year, there is no need to put it off until the last minute. By filing your income tax return at last minute, you might forget to claim all your eligible deductions and end up paying more tax than you actually need to! Even if you don’t file your returns early, you can begin preparing as early as possible. it gives you time to collect all the documents such as your LIC receipts, Bank statements, Interest certificates and so on. You consultant will also have a flexible schedule and can start working on your accounts immediately. Filing you Income Tax Returns (ITR) on time has many benefits.  You can save a lot of money by filing your ITR on time, irrespective of whether you have tax payable or losses to be carried forward. Individuals primarily with salary income and certain other tax payers are required to file their tax returns by 31st July, 2020 for the Previous Year 2019-20 (Assessment Year 2020-21).

Apr 26

GST on Director’s Remuneration – a critical analysis

The recent decision of Authority for Advance Ruling (AAR), Rajasthan in Re: M/s. Clay Craft India Pvt. Ltd. (RAJ/ AAR/ 2019-20/33) that the Directors’ remuneration is paid for the services supplied by the Director to the applicant company shall be liable to tax under reverse charge basis under section 9(3) of the CGST Act, 2017 has left companies perplexed. On the onset, it maybe relevant to note that section 103(1) of CGST Act states that the advance ruling pronounced by the Authority or the Appellate Authority shall be binding only on the applicant who had sought it in respect of any matter referred to in the said ruling and on the concerned officer or the jurisdictional officer in respect of the applicant. The applicant may even go on appeal against the pronouncement. Nonetheless, it reflects the views of the department in respect of the particular issue for which ruling was sought and for that reason it cannot simply be ignored.

Oct 10
May 19

Meaning and scope of Goods Transport Agency: An Analysis

Goods transport Agency (GTA) is undeniably one of the most unorganised sectors in our country. Road transport business operates in a number of ways including goods transport agency, wayside transporters, courier agencies and so on. Therefore, it is pertinent to test whether they would fall within the ambit of GTA. Consequently the taxation of GTA has been a contentious issue in the erstwhile Service tax regime as well as in the GST regime. This article analyses the meaning and scope of GTA drawing inference from various judicial pronouncements.

May 9

Composition Scheme to Service Providers: A comprehensive guide

Earlier composition scheme was available only to manufacturers and traders; and service providers were kept outside its ambit. With effect from 1st April 2019, central government, on recommendation of the council has notified Composition Scheme for service providers vide Notification No. 2/2019 central tax (rate) dated 07/03/2019. Consequently Notification 9/2019 central tax (rate) amended the above said notification to make rules applicable to a person paying tax under section 10 apply to person paying tax under the said notification. Subsequently, On 5th April a departmental circular was issued to ensure uniformity.  This article tries to analyse the various aspects of the said notifications and circulars in detail.

Apr 29

Utilization of ITC: Practical Scenarios

The CGST (Amendment) Act, 2018 has amended section 49(5) and inserted Section 49A and 49B which has drastically rationalised the utilization of ITC. This article is discusses the practical aspects on the new scheme of utilization of credit in the light of recent notification 16/2019 and CBIC Circular 98/17/2019.

Apr 28

GST on Real Estate: Development Rights, FSI and long term lease

With effect from 1st April 2019, CBIC vide a series of notification reduced the GST rates for real estate projects. Apart from various conditions to be fulfilled along with the new rates such as reversal of ITC, RCM on unregistered purchase; the notifications also introduced some changes in the taxation of development rights and Floor Space Index (FSI) applicable for all projects after 1st April 2019 and also to the ongoing project that have opted to pay tax at the new rate. This article is analyses the impact of these amendments in the context of Development rights and FSI.

Apr 26

Enhancement in E-Way Bill and Restriction under Rule 138E of CGST Rules, 2017

E-way bill is an Electronic bill for the movement of goods under GST which can be generated on the E-Way Bill portal. Recently some enhancements have been made in the E-way Bill portal which has been discussed in this article. Moreover, CBIC vide its Notification No 22/2019-central tax dated April 23 2019 has notified the provisions of Rule 138E of CGST Rules, 2017 imposing certain restrictions on taking EWay bill.

Apr 19

GST on Real Estate: Reversal of Input Tax Credit

With the series of changes that have been made effective from 1st April, 2019 the effective tax rates has come down from 12% and 8% to 5% and 1% in the case of construction of  residential apartments and Affordable housing apartments respectively. Consequent to these changes the ITC has become ineligible and there is a need for reversal of ITC in cases where the promoter opts to pay GST at the new effective rate of 5% or 1%, as applicable, to the extent of the ITC attributable to the supplies whose time of supply (ToS) occurs after 01.04.2019. This article is aimed to explain the formula for reversal of ITC in coherent way possible.

Apr 8

ITR Forms for A.Y. 2019-20 : An Analysis of amendments and additional disclosure requirements

CBDT has vide Notification No 32/2019-Income Tax Dated 01/04/2019 released the new ITR Forms for AY 2019-20. While there is no change in ITR-1 (SAHAJ) meant for salaried assesses, there are some changes in ITR-2,3,5,6 and 7 for the Assessment Year 2019-20 with some additional reporting requirements for directors, shareholders of unlisted shares and for companies. Here is a detailed analysis of the amendments in rule as well as the additional reporting requirements.