July 2024

HSN, or the Harmonised System of Nomenclature, was developed by the World Customs Organisation (WCO) in 1988 to systematically classify goods for both domestic and international trade. India, in line with global standards, has adopted HSN codes post-GST implementation, streamlining import and export procedures and reducing costs. What is HSN Code? HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. It was developed by the World Customs Organization (WCO) and it came into effect from 1988. How does HSN code work? It has about 5,000 commodity groups, each identified by a six-digit code, arranged in a legal and logical structure. It is supported by well-defined rules to achieve uniform classification. Features Of Our HSN Code Finder? Comprehensive DatabaseOur HSN finder makes it simple to search for and identify the appropriate code for goods or services thanks to its large database of HSN codes and associated GST rates.User-Friendly InterfaceThe online search tool’s user-friendly UI makes it easier for consumers to find the relevant HSN code, making it accessible to anyone. To get results, simply input the product description and press the search button. The results will appear in a matter of seconds.Accurate ResultsEnsuring precision, the tool delivers accurate search results every time, instilling confidence in businesses regarding tax compliance and HSN code usage.Regular UpdatesRegular updates are provided to maintain the accuracy of HSN codes and GST rates, so there is no concept of outdated information in the results.Mobile-FriendlyAccessible on smartphones and tablets, the tool’s mobile-friendly design enables users to conveniently access it on the go.Free to UseOffering accessibility to businesses of all sizes, the tool is provided free of charge, eliminating barriers to usage and promoting widespread adoption. Why is HSN important? The main purpose of HSN is to classify goods from all over the World in a systematic and logical manner. This brings in a uniform classification of goods and facilitates international trade HSN in India India is a member of World Customs Organization(WCO) since 1971. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise. Later Customs and Central Excise added two more digits to make the codes more precise, resulting in an 8 digit classification. Understanding the HSN Code The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings. Each Section is divided into Chapters. Each Chapter is divided into Headings. Each Heading is divided into Sub Headings. Section and Chapter titles describe broad categories of goods, while headings and subheadings describe products in detail. For example: Handkerchiefs made of Textile matters 62.13.90 First two digits (62) represent the chapter number for Articles of apparel and clothing accessories, not knitted or crocheted. Next two digits (13) represent the heading number for handkerchiefs. Finally, last two digits (90) is the product code for handkerchiefs made of other textile materials. Services Accounting Code (SAC) in GST Like goods, services are also classified uniformly for recognition, measurement and taxation. Codes for services are called Services Accounting Code or SAC For example: Legal documentation and certification services concerning patents, copyrights and other intellectual property rights– 998213 The first two digits are same for all services i.e. 99 The next two digits (82) represent the major nature of service, in this case, legal services The last two digits (13) represent detailed nature of service, i.e., legal documentation for patents etc. HSN – wise summary of outward supplies Chapter wise distribution of goods using HSN codes Chapter Commodities Section I. Animals and Animal Products Chapter 1 Animals Chapter 2 Meat and edible offal Chapter 3 Fish, molluscs, crustaceans, and other aquatic invertebrates Chapter 4 Dairy produce, birds’ eggs, honey and other edible products of animal origin that are not specified elsewhere Chapter 5 Other products of animal origin that are not specified elsewhere Section II. Vegetables and Vegetable Products Chapter 6 Live trees and plants, bulbs, roots, etc., cut flowers and ornamental foliage Chapter 7 Edible vegetables, certain roots and tubers Chapter 8 Edible fruit and nuts, the peel of citrus fruits or melons Chapter 9 Tea, coffee, mate and spices Chapter 10 Cereals Chapter 11 Milling products, malt, wheat gluten, starches, and inulin Chapter 12 Oil seeds and oleaginous fruits, grains, straw and fodder, seeds and fruit, and industrial or medicinal plants Chapter 13 Lac, gum, resin, and other saps and extracts Chapter 14 Vegetable plaiting materials, and vegetable products that are not specified elsewhere Section III. Animal or Vegetable Oils, Their Cleavage Products, Waxes, and Prepared Edible Fats Chapter 15 Animal or vegetable oils, their cleavage products, waxes, and prepared edible fats Section IV. Prepared Food, Beverages, Spirits, Tobacco and Tobacco Substitutes Chapter 16 Preparation of meat, fish or crustaceans, molluscs, or any other aquatic invertebrates Chapter 17 Sugar and sugar confectionery Chapter 18x Cocoa and cocoa preparations Chapter 19 Preparations of cereals, starch, flour, milk, and pastry products Chapter 20 Preparation of vegetables, fruits, nuts, or plant parts Chapter 21 Miscellaneous edible preparations Chapter 22 Beverages, vinegar, and spirits Chapter 23 Residue and food waste, prepared animal fodder Chapter 24 Tobacco and tobacco substitutes that are manufactured Section V. Minerals Chapter 25 Salt, earths and stones, sulphur, plastering material, lime, and cement Chapter 26 Ores, slag, and ash Chapter 27 Mineral fuel, mineral oils and products of their distillation, mineral waxes, and bituminous substances Section VI. Chemical Products or of Allied Industries Chapter 28 Inorganic chemicals, organic or inorganic compounds of precious metals, rare-earth metals, radioactive elements, or isotopes Chapter 29 Organic chemicals Chapter 30 Pharmaceutical products Chapter 31 Fertilisers Chapter 32 Tanning or dyeing extracts, tannins and their derivatives, dyes, pigments, and other colouring matter, varnishes and paints, inks, putty and other mastics Chapter 33 Essential oils and resinoids, cosmetic or toilet preparations, perfumery Chapter 34 Soap, washing preparations, organic surface-active agents, lubricating preparations, prepared waxes, artificial waxes, polishing or

Section 192 deals with the TDS on salary. It mandates every employer to deduct TDS on salary payments in case the salary of the employee exceeds the basic exemption limit. Tax is one of the main reasons amongst others. Employers deduct tax from your salary before paying it in your account and deposits it with the government on behalf of the employee. This concept of deducting taxes before making the payment is known as TDS: Tax Deduction at Source. TDS (Tax Deduction at Source) on Salary is the amount deducted from an employee’s income at the source by an authorized deductor and deposited to the Income tax department. Section 192 deals with TDS on salary. It outlines guidelines for employers to deduct the TDS from the salary of an employee before an actual payment. Calculating TDS under Section 192 involves considering your gross salary, applicable TDS deduction on salary and exemptions, and arriving at an estimated tax amount. What is TDS in Salary? TDS on salary essentially means that a portion of your income tax is deducted by your employer when they pay your salary. This amount is then deposited with the government on your behalf. Before the deduction of TDS, the employer must first obtain TAN Registration. A TAN number, or Tax Deduction and Collection Account Number, is a 10-digit alphanumeric number used by the Income Tax Department to track all TDS deduction on salary and remittances. Who is required to deduct TDS u/s 192 of the Income Tax Act? Any employer who pays salary to an employee(resident or non-resident) is required to deduct TDS every month under section 192 Employer here means: Individual HUF Firm Company Trusts AOP, BOI Local Authority Every Artificial judicial person All these employers are required to deduct TDS every month and deposit it with the government within a specific time period.  The employer’s status such as HUF, firm or company is irrelevant for the deduction of tax at source under this section. Only employer-employee relationship matters. According to section 192 of the Income Tax Act, there must be an employer-employee relationship between the dedcutor and deductee for the deduction of tax at source. Moreover, the number of employees employed by the employer also does not matter for deducting TDS.  When is TDS on salary deducted u/s 192? TDS is required to be deducted by the employer at the time of payment of salary, and the salary income is taxable (i.e., Gross Total Income fewer Deductions under Chapter VIA) of an employee exceeds the basic exemption limit, which is Rs. 2,50,000/- in case age is below 60 years Rs. 3,00,000/- in case age is 60 years or more but below 80 years Rs. 5,00,000/- in case age is 80 or above The basic exemption limit under the new regime as per Union Budget 2023 is Rs. 3,00,000 for all individuals. In the case of advance salary and arrears of salary, TDS is required to be deducted by the employer at the time of payment. TDS on salary is required to be deducted even if the employee does not have PAN if the salary exceeds the basic exemption limit. How to Calculate TDS on Salary Under Section 192 Step 1: At first, the employer estimates employee’s salary for the relevant financial year. This should include basic pay, dearness allowance, perquisites granted by the employer, other allowances granted by the employer like HRA, LTA, meal coupons, etc., EPF contributions, bonus, commissions, gratuity, salary from the previous employer, if any, etc. Step 2: In the next step, the employer calculates exemptions under Section 10 of the Income Tax Act. The exemptions can be applicable on allowances like HRA, travel expenses, uniform expenses, children’s education allowances, etc. Also, reduce the amount of professional tax paid, entertainment allowance and standard deduction of Rs 50,000. Step 3: The employer reduces such exemption from the gross monthly income and the net amount will be treated as the taxable salary income. Step 4: If the employee has provided the information about other incomes such as rental income from house property or bank deposits, etc. In that case, such amounts should be added to the net taxable salary. Further, the interest paid on housing loans is deducted from the house property income, but if there is no income from house property, there will be a negative figure under the head ‘income from house property’. After adding or reducing the said amounts, the calculated figure will be the employee’s gross total income. Step 5: Now, the employer reduces the investments for the year, which fall under Chapter VI-A of the Income Tax Act declared by the employees as per the investment declaration submitted. The declaration may include the amounts of investments such as PPF, employee’s provident fund, ELSS mutual funds, NSC and Sukanya Samridhi account. It may also include expenditures such as home loan repayment, life insurance premiums, NSC Sukanya Samridhi account, etc. Similarly, the employer allows a deduction under various other sections such as Section 80D, 80G, etc. How to calculate tax deductions under section 192 Income other than salary, like rent income, etc., shall also be considered by the employer for calculation of TDS on salary if details of such income are submitted by the employee. Interest on home loan (if any) will be set off from salary income to arrive at estimated income for TDS calculation if the evidence is given in Form 12BB by the employee. It also happens that many employees make investments to avail of tax benefits, i.e., to reduce their tax liability. But, as the employer does not know about such investment, the TDS amount increases than the actual tax liability. In such cases, you can declare information about all your tax-saving investments to the employer using Form 12BB. When an employer sees this, he/she will consider these investments and calculate your TDS amount accordingly. How is TDS deducted in case of multiple employers? There may be two situations: Change of job during the year Engaged with two or more employers simultaneously Change of job during the

Federal indirect tax body, the Goods and Services Tax (GST) Council on Saturday decided to cut tax rates on a few items such as milk cans and solar cookers, signaled the end of the anti-profiteering regime, and took a slew of measures to improve the ease of doing business, Union finance minister Nirmala Sitharaman said after the council’s 53rd meeting in the New Delhi. The council decided to lower the tax rate on milk cans, solar cookers—whether single or dual energy source—cartons, boxes and cases such as those used for packaging fruits from 18% to 12%. The indirect tax body also exempted hostel stays of and over 90 days outside educational institutions, Sitharaman said. Hostel stays within an educational institution are already exempt from GST, she added. A slew of key decisions were announced at the 53rd GST Council meeting held on Saturday, June 22, in New Delhi under the chairmanship of Finance Minister Nirmala Sitharaman. Among the prominent decisions was to rollout a pan-India Aadhaar-based biometric authentication for GST registration. This would allow the tax authorities to combat fraudulent input tax credit claims made through fake invoices. The Council also decided to help the small taxpayers by extending the deadline for furnishing details and returns in form GSTR 4 to June 30. This is the first GST Council following the recently concluded Lok Sabha elections. The last time when the panel had met dates back to October 7, 2023, when it imposed a 28% GST on online gaming, casinos, and horse racing. he key decisions taken at the meeting Railway services get GST exemption The Finance Minister announced that services provided by the Indian Railways to common people, such as platform tickets, waiting room facilities, battery-operated car services, etc will not be subjected to GST. Aadhar-linked biometric authentication The GST Council has made Aadhaar-based biometric authentication mandatory for all new registrations in India to streamline the process and help weed out fraudulent input tax credit claims. Interest on penalties on tax demand notice waived off The council meeting also announced a waiver on interest penalties on tax demand notices issued under Section 73 for the fiscal years 2017-18, 2018-19, and 2019-20, provided the full tax amount is paid by March 2025. 12% GST rate imposed on milk cans The GST Council proposed to levy a uniform 12% GST on all milk cans, including those made of steel, iron, and aluminium, irrespective of their use. The Council also recommended a uniform 12% GST rate on all carton boxes and cases of both corrugated and non-corrugated paper or paper board, This will particularly help the apple growers of Himachal Pradesh and the Kashmir valley, the Finance Minister said. All sprinklers, including fire water sprinklers, would also attract 12% GST, the council noted. Hostel accommodation exempted from GST The GST council also exempted hostel services provided outside educational institutions up to a limit of ₹20,000 per person per month. Insertion of functionality, through a form – GSTR-1a The council recommended the introduction of a new functionality via form GSTR-1A. It will help taxpayers add details from the current tax period in case they’ve missed them in the initial reporting. GST rates on fertilizers Currently, there is a 5% GST on fertilizers and raw materials like Sulphuric acid and Ammonia have 18% GST. However, the GST council meeting today recommended exempting the fertilizer sector from the current 5% GST, referring it to the Group of Ministers on rate rationalisation. The council also deliberated on the recommendations made by the Standing Committee on Chemicals and Fertilizers in February to slash GST on nutrients and raw materials to benefit the fertilizer manufacturing companies. Other important decisions The GST Council also wanted the deadline for invoice or debit notes under section 16(4) of the CGST Act filed up to 30-11-2021, for the financial year 2017-18, 2018-19, 2019-20, and 2020-21 may be considered as 30-11-2021. The monetary limit for filing an appeal by tax dept. Is set at 20 lakh for GSTAT, ₹1 crore for HC and ₹2 crore for SC. The maximum amount of pre-deposit for filing an appeal before the appellate authority has been reduced to ₹20 Cr from ₹25 Cr for CGST and SGST. Pre-deposit for filing an appeal before the tribunal has been reduced to 20% and ₹20 Cr each for CGST and SGST. The time limit to file GSTR-4 extended till June 30. Change in the law of providing the time limit for filing an appeal before the tribunal will start from the date the government notifies GSTAT.

There are two situations for considering re-opening/revision of annual accounts. It can be considered before adoption by the shareholders at the Annual General Meeting (AGM) of the Company. Also, re-opening can be considered after adoption by the shareholders at the AGM.The word re-opening, re-casting and revision has been used interchangeably in this article, although there may be a bit of difference in their literally/technical meaning. The Companies Act, 2013 is the governing law for companies incorporated in India. It lays down the rules and regulations that companies need to follow while conducting their operations. One of the important provisions of the Companies Act, 2013 is the power to reopen accounts. The power to reopen accounts is a vital tool available to the regulators to ensure compliance with the provisions of the Act. Overview of Re-Opening of Account of Company Section 130 of the Companies Act, 2013 provides for the reopening of accounts in certain circumstances. The section allows the Tribunal, the National Company Law Tribunal (NCLT), to order the reopening of accounts if it is satisfied that: The financial statements of a company do not represent a true and fair view of its financial position. The affairs of the company have been conducted fraudulently. REOPENING OF ACCOUNTS ON ORDERS OF TRIBUNAL/ COMPETENT COURT Subsection (1) of Section 130 of the Companies Act,2013 stipulates that a firm may reopen its books of accounts or amend its accounting records only under the instruction of a court of competent jurisdiction or the Tribunal made on the application of specified persons. The terms reopen and recast denote the type of treatment necessary for books of accounts and financial records, respectively. The core meaning remains the same. The facts of each case will determine whether a reopening order will include recasting or vice versa. Furthermore, clauses (90), (13), and (40) of section 2 shall be resorted to for the definitions of Tribunal, Books of Account, and Financial Statements. AUTHORITY TO MAKE APPLICATION: The following individuals may file an application with a court of competent jurisdiction or the Tribunal for reopening of books of account or reformulating of accounting records: The Central Government The Securities and Exchange Commission The Income Tax authorities Any other statutory regulatory body or authority Any person concerned Reopening of Accounts as per Companies Act, 2013 Why Account Reopening is required? The financial statements of a company are an important tool for stakeholders to evaluate the financial health and performance of the company. However, there may be instances where the financial statements contain errors or omissions. This can happen due to various reasons such as inadvertent mistakes, misinterpretation of accounting standards, or fraudulent activities. In such cases, account reopening becomes necessary to rectify these errors and ensure that the financial statements are accurate and reliable. Applicability of Account Reopening Account reopening provisions under the Companies Act, 2013 are applicable to all companies registered in India. It is mandatory for all companies to prepare and submit their financial statements in accordance with the accounting standards prescribed under the Act. In case of errors or omissions, companies can seek to reopen their accounts. Grounds for Reopening Accounts as per Companies Act, 2013 Fraudulent or Misrepresentations: The accounts of a company can be reopened if there is evidence of fraudulent or misrepresentations made by the management in the financial statements. Error or Omission: The accounts can be reopened if there is any error or omission in the financial statements which has a material impact on the financial position of the company. Court or Tribunal Order: The accounts can be reopened if the court or tribunal orders the same. Regulatory Authority: The accounts can be reopened if the regulatory authority orders the same. The Role and Powers of the Tribunal regarding Re-opening of Accounts of Company The NCLT plays a crucial role in the account reopening process. The tribunal has the power to direct the company to reopen its accounts and to appoint an auditor to examine the accounts. The auditor must submit a report to the tribunal within a specified time, stating whether the accounts are accurate and complete. The tribunal can then decide whether to accept the report and order the company to rectify any deficiencies. The Tribunal appointed under the Companies Act, 2013, has wide powers to order the reopening of accounts. The tribunal can order the reopening of accounts if it finds that there are errors, omissions or misstatements in the accounts. The tribunal can also order the reopening of accounts if there is any fraud or misconduct. The Tribunal can also appoint an auditor to look into the matter and submit a report to the tribunal. The auditor will examine the accounts of the company and report any errors, omissions or misstatements found in the accounts. The auditor will also report any fraud or misconduct found in the accounts. Procedure for Account Reopening as per Companies Act, 2013 Board Resolution: The Company’s board of directors must pass a resolution for reopening of accounts. The resolution must specify the reasons for reopening of accounts and the period to which the accounts pertain. Tribunal Application: Once the board resolution is passed, the company must file an application with the National Company Law Tribunal (NCLT) for approval of the account reopening. The application must be accompanied by the following documents: Board Resolution for account reopening Audited financial statements of the relevant period.  Statement of impact of the errors or omissions on the financial statements Statement of reasons for reopening of accounts NCLT Approval: The NCLT will examine the application and may seek additional information or clarification from the company. If satisfied, the NCLT will issue an order approving the account reopening. Rectification of Accounts: Once the NCLT approval is obtained, the company must rectify the errors or omissions in the financial statements and prepare revised financial statements. The revised financial statements must be audited and certified by the statutory auditor. Filing with Registrar: The revised financial statements must be filed with the Registrar of Companies within

The Government collects revenues from its citizens through various tax forms, and through various services provided by it to the citizens, which includes Water Tax. The administration related to Water Tax in the City of Chennai is vested with Chennai Metro Water Supply and Sewerage Board (CMWS&SB). Water tax payments can be done online Remittance of Tax Step 1 – On the Home page of the stated website, click on the Pay/Check Water Tax charges. Step 2 –  opt for Click to view Water Tax & Charges Online Payment. Step 3 – Fill in the required details Calculation of Charges The online payment receipt could be, again, viewed through the link referred to for the above-mentioned services by choosing the option Click to view Water Tax and Charges Calculation.  The formula for calculating the half-yearly tax rate is Annual Rental Value of Corporation of Chennai*3.5%. Rate of Tax The rate for water tax is affixed at the rate of 1.5% of the assessed annual value. This provision is subject to further conditions. The timeline of payment will be specified in the demand notice, water and tax sewerage tax card or as per the frequent intimations of the Board. Legal Proceedings If the tax obligations are not met within the prescribed time period, the concerned authorities will serve a notice to such person demanding the payment of the sum due, failing which he/she would be liable for legal proceedings. Such initiatives may include the forced sale of property through the provision of distress sale, added with other fines and charges. Other Services Request for new water/sewer connection for residential properties. Request for new water/sewer connection for industries. Registration of complaints. Booking of water tankers. Booking of sewage tankers. FAQs What is Chennai Water Tax? Chennai Water Tax is a local tax levied by the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) on properties in Chennai to fund the provision and maintenance of water supply and sewerage services. Who is required to pay Chennai Water Tax? Property owners in Chennai, including residential, commercial, and industrial properties, are required to pay Chennai Water Tax.