October 2, 2024 | CA B K Goyal & Co LLP

Section 105-I – Code of Criminal Procedure, 1973

CODE OF CRIMINAL PROCEDURE, 1973 / Shruti / October 2, 2024

Fine in lieu of forfeiture (1) Where the Court makes a declaration that any property stands forfeited to the Central Government under section 105H and it is a case where the source of only a part of such property has not been proved to the satisfaction of the Court, it shall make an order giving an option to the person affected to pay, in lieu of forfeiture, a fine equal to the market value of such part. (2) Before making an order imposing a fine under sub-section (1), the person affected shall be given a reasonable opportunity of being heard. (3) Where the person affected pays the fine due under sub-section (1), within such time as may be allowed in that behalf, the Court may, by order, revoke the declaration of forfeiture under section 105H and thereupon such property shall stand released.

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Haryana Road Tax

learn / Shruti / October 2, 2024

Haryana is one of the leading Indian states in terms of rapid infrastructure development. The North Indian state has a vast network of at least30 National Highways,11 Expressways and several State Highways, keeping it well connected to its neighbouring states. The people of Haryana immensely benefit from the wide connectivity of roads to commute within and outside the state. However, all owners of motor vehicles in the state or vehicles of other states travelling in Haryana must pay road tax as per the Haryana Motor Vehicle Taxation Act, 2016. The Haryana road tax rates vary based on the vehicle type, size and capacity. Haryana Road Tax It is mandatory for all vehicles, private or commercial, to pay road tax in Haryana. The taxes are generally collected as a one-time payment at the time of purchase and subsequent registration with RTO. The government uses the money to maintain road quality and ensure the safety of travellers. Haryana Road Tax Calculation The Haryana Department of Transport usually levies a one-time road tax as a certain percentage of the original vehicle cost. They may also charge a fixed amount for specific vehicle classes per the criteria. The tax rates vary based on different factors, including the type of vehicle, place of origin, purpose used, weight, size, engine capacity etc. The vehicle owners must pay the taxes before plying their motor on the road. Road Tax in Haryana for Two-Wheelers The tax rate levied on two-wheelers is based on their price for new vehicles and their value for vehicles transferred from another state. The rates are as follows: Vehicle Price Range One-Time Tax Rate on the Cost Up to Rs. 75,000 4% Above Rs. 75,000 up to Rs. 2 lacs 6% Above Rs. 2 lacs 8% A sidecar drawn by the above vehicles and invalid carriages Nil Road Tax in Haryana for Four-Wheelers Like two-wheelers, four-wheeler vehicles in Haryana are also taxed based on price. The Haryana road tax for car and other four-wheelers are as follows: Vehicle Price Range One-Time Tax Rate on the Cost Up to Rs. 6 lacs 5% Above Rs. 6 lacs up to Rs. 20 lacs 8% Above Rs. 20 lacs 10% Road Tax for Commercial Vehicles in Haryana The seating capacity determines the tax rate for commercial vehicles in Haryana. The RTO tax details are tabled below: Seating Capacity Excluding the Driver Tax Rates Up to three seats 2% of the vehicle cost (one-time tax) Four and above (three-wheelers) Rs. 600 per seat per year (payable quarterly) Four to Six seats (four-wheelers) Rs. 625 per seat per year (payable quarterly) Seven to Twelve seats (four-wheeler) Rs. 1450 per seat per year (payable quarterly) Road Tax for Other State Vehicles in Haryana All vehicles entering Haryana must pay road taxes. The rates depend on their seating capacity, as given below: Seating Capacity of the Vehicle (Excluding the Driver) Rate of Tax Up to Three seats Rs. 25 per day Four to Six Seats Rs. 100 per day Seven to Twelve seats Rs. 500 per day How to Pay Haryana Road Tax Online? Go to the official website of the Government of Haryana Transport Department Click on ‘Online Services for Citizens’ at the top-left corner. Select ‘Motor Vehicle Tax Related Online Services’ from the list of options. If your vehicle is registered in Haryana, select the ‘Click here to Pay Online Road Tax for State’ option. If registered in a different state, select the ‘Click here to Pay Online Road Tax for Other State’ option. Now, provide your vehicle-related details, such as your registration number, model number, year of purchase etc. Choose your preferred mode of payment (debit card/credit card or net banking) and make the payment. An online receipt will be generated after successful payment. Download and save the receipt for future reference. Penalty for Non-Payment of Road Tax in Haryana The Haryana Motor Vehicle Taxation Act makes it mandatory for all vehicle owners of Haryana to pay road tax. If a person liable to tax has not paid the tax due within the specified time, they shall be liable to pay a penalty of 0.5% of the tax due for each day of delay. Besides, a simple interest of 1.5% per month will also be charged on the total tax and penalty due for the delayed period. FAQs Which vehicles are exempted from road tax payment in Haryana? Any agricultural vehicles such as tractor, trailer, harvester, tiller, and other agricultural machinery are exempt from paying tax. This provision is to safeguard farmers and provide them with relief in payment of road tax. How can I check my road tax in Haryana? Visit vahan.parivahan.gov website and select menu to “Know my Tax”. Now enter your vehicle details and check the road tax in Haryana.

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India launches BharatGen

Updates / Shruti / October 2, 2024

BharatGen, a pioneering initiative in generative AI, was launched in India on September 30, 2024, in Delhi. The initiative is designed to revolutionize public service delivery and boost citizen engagement by developing a suite of foundational models in language, speech, and computer vision. The event convened in the virtual presence of Dr Jitendra Singh, Union Minister of State (Independent Charge) for Science and Technology, Minister of State (Independent Charge) for Earth Sciences, MoS PMO, Department of Atomic Energy and Department of Space and MoS Personnel, Public Grievances and Pensions. “BharatGen is a proud example of India’s commitment to advancing homegrown technologies. It positions India as a global leader in the field of Generative AI, much like our achievements with UPI and other innovations that have transformed various sectors,” said Dr Jitendra Singh during the inauguration. He added that this initiative marks the world’s first government-funded Multimodal Large Language Model project focused on creating efficient and inclusive AI in Indian languages. About BharatGen Aim: To revolutionize public service delivery and enhance citizen engagement by developing foundational models in language, speech, and computer vision. Implementation: By IIT Bombay under the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS) Key Features of BharatGen: Multilingual and multimodal foundation models. Building and training based on India-centric datasets. Open-source platform for fostering AI research and innovation. The project is expected to be completed by 2026, with ongoing research, development, and scaling of AI applications. Significance BharatGen will address both text and speech, ensuring representation across India’s diverse linguistic landscape. By using multilingual datasets, it will capture the nuances of Indian languages, which are often underrepresented in global AI models. This emphasis on data sovereignty gives India greater control over its digital resources and narrative. BharatGen will democratize AI access across government, education, and private sectors, ensuring AI benefits all segments of society, particularly underserved Indian languages. BharatGen aligns with the vision of Atmanirbhar Bharat by developing AI models specifically for India. By building these technologies domestically What are Large Language Models? Large language models, also known as LLMs, are very large deep learning models that are pre-trained on vast amounts of data. Large Language Models (LLMs) use machine learning techniques to recognize, interpret, and generate human languages or other complex data. Their capabilities also extend to handling structured and unstructured data, including speech, images, and other multimodal inputs, which enhances their utility in fields like customer service, healthcare, and education. About MLLM and Generative AI MLLM are Large Language Models (LLM) trained on large datasets including both text and non-textual data (image,audio, video, etc.) LLM uses machine learning and is capable of recognizing and interpreting human languages or othercomplex data. Generative AI is the most well-known application of LLM. Generative AI (GenAI) It is an Artificial Intelligence (AI) technology that automatically generates content in response to prompts written in natural language conversational interfaces.– Rather than simply curating existing web pages, by drawing on existing content, GenAI actually produces new content.– The content can appear in formats that comprise all symbolic representations of human thinking: texts written in natural language, images (including photographs to digital paintings and cartoons), videos, music and software code.– GenAI is trained using data collected from web pages, social media conversations and other online media. It generates its content by statistically analysing the distributions of words, pixels or other elements in the data that it has ingested and identifying and repeating common patterns.– In November 2022, OpenAI released ChatGPT (Chat Generative Pre-trained Transformer) to the public.

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Covid 19 Ex Gratia Details

Government Schemes / Shruti / October 2, 2024

The mismanagement of the COVID-19 pandemic has been independent India’s gravest governance failure. The Union government under Prime Minister Narendra Modi did not take adequate measures to prevent and contain the pandemic. Therefore, there is a Need for a White Paper (Chapter-1) that examines the government’s acts of omission and commission, its impact on India and suggests constructive measures to improve policy responses to the current and future waves of the pandemic. The Modi government’s handling of the COVID-19 crisis began with its Early Inaction in January 2020 (detailed in Chapter-2). The government ignored early warnings from experts and political leaders from the Opposition. It failed to learn from the lessons and response models of other countries which had been hit by the pandemic. It did not scale up nationwide the lessons from Kerala’s experience in successfully suppressing a virus outbreak (the Nipah virus). This inaction for a period of nearly two months was completely avoidable but it has cost us dearly. Instead, the Modi government should have: • Acted with seriousness and urgency after the outbreak of the pandemic in other countries, learnt from their lessons and followed the 3Ts –– Testing at scale, Tracing with diligence and Treating with precision. • Screened all international passengers and quarantined them as necessary from January 2020, since the virus had already spread beyond China and Hong Kong by January 18, 2020. • Tested symptomatic persons with no travel history. According to a mathematical model prepared by the Indian Council for Medical Research (ICMR) in February 2020, such a move would have identified 50% of all infections in India. The government’s failure to proactively manage the pandemic in India continued in its Policy Response to the First Wave (detailed in Chapter-3). Its initial response consisted of measures like the Janata Curfew, thali clanging and diya lighting, which did not adequately communicate the risks from COVID-19 to the public. It did not prepare them to undertake appropriate preventive measures. Instead, PM Modi announced a nationwide lockdown with only four hours’ notice. It triggered a terrible humanitarian crisis impacting approximately 4 crore migrant workers and disrupted the livelihoods of poor families. The highly publicised PM-CARES Fund turned out to be an opaque entity with no transparency on utilisation of funds. Medical ventilators procured through the Fund were even found to be defective. The government ignored the suggestion of epidemiologists to conduct door-to-door screening to detect and curb the spread of the virus at the nascent stage. It ignored the advice of experts about the ineffectiveness of lockdowns. While the lockdown bought the government time to enhance testing and hospital facilities, its efforts on this front were demonstrably inadequate. The lockdown thus imposed severe social costs without the equivalent benefit of disease control. Instead, the Modi government should have: • Communicated clearly and transparently about COVID-19 risks and ensured that people followed appropriate safe behaviour. • Acted on warnings of epidemiologists, virologists and other scientists who projected the rise in caseload. • Decentralised resources and empowered and equipped local authorities to arrest the spread of the virus. • Prepared a response-plan ahead of time, based on the experience of other countries, including the earmarking of resources and the ramping up of infrastructural requirements such as hospital beds and medical oxygen. Two characteristics that stand out from the Modi government’s handling of the pandemic are Hubris and Political Avarice (detailed in Chapter-4). The government declared victory over COVID-19 prematurely in early 2021. It deceptively used the ‘Vaccine Maitri’ scheme as a tool to project the Prime Minister’s image globally, when the bulk of exports were contracts placed directly with private sector vaccine manufacturers. Further, at a time when large gatherings should not have been allowed, the ruling party demonstrated political avarice by conducting large election rallies during the eight phases of the assembly election in West Bengal, when the nation was already reeling from the second wave of the pandemic. Earlier, during the first wave, the Modi government denied that COVID-19 posed a major threat to public health until the Bharatiya Janata Party (BJP) government had been installed in Madhya Pradesh. Instead, the Modi government should have: • Acted swiftly on warnings from scientists and the Indian SARS-CoV-2 Genomic Consortia (INSACOG) about contagious new variants of the virus. • Avoided declaring victory over COVID-19, which instilled a false sense of safety among the public, who believed their leaders and lowered their guard. • Banned large gatherings, including election rallies, and postponed panchayat elections in Uttar Pradesh. • Insisted that even small gatherings should follow strict protocols on the number of people allowed, social distancing, and masks. The Modi government’s practice of Ignoring the Signs and the Science (detailed in Chapter-5) proved disastrous. It notified ICMR, a research organisation, as the nodal agency to manage the pandemic instead of the battle-ready National Centre for Disease Control (NCDC) and National Institute of Virology (NIV). The government disregarded warnings and recommendations from scientists. It did not act on INSACOG’s timely alert about the prevalence of a mutated, highly transmissible strain (B.1.617) of the virus, with fatal consequences. The government did not rectify the under-reporting of the number of cases and deaths during both waves, crucial to frame policies based on accurate data. It did not adequately assess and prepare responses to the risks of community transmission. Further, its ministers publicly promoted unscientific remedies such as Coronil. Instead, the Modi government should have: • Selected the appropriate, experienced organisation to coordinate containment of the pandemic. • Strengthened institutional infrastructure, e.g., expert panels, COVID-19 Taskforce and INSACOG, and not prematurely declared victory over the virus. • Updated protocols and treatments at regular intervals in line with emerging scientific evidence. • Acted on expert recommendations about new strains of the virus and their potentially aggressive impact on an impending second wave. • Reinforced testing infrastructure. During April and May 2021, India experienced severe shortages of medical oxygen and Intensive Care Unit beds in both public and private hospitals, leading to innumerable

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SEBI KYC Registration Agency

learn / Shruti / October 2, 2024

Operating a mutual fund house is subject to stringent regulations. Activities must be conducted within the structure already in place and governed by the Securities and Exchange Board of India (SEBI). This involves adhering to the SEBI KYC guidelines. Identifying a customer before enrolling them as an investor under a particular fund is known as “Know Your Client” or KYC in the business. Financial Institutions & Intermediaries are required by KYC rules to collect and validate personal & contact info from their clients. Meaning of KYC Customer is a procedure in which a financial company verifies the identification of consumers and assesses their suitability, as well as the possibility of illegal objectives and actions. Money laundering is one of the most serious threats to a country’s economy. The government and financial institutions are constantly on the lookout for such unlawful activity. KYC requirements for banking or financial transactions are an excellent technique to prevent this. Necessity of KYC KYC’s major goal is to ensure that deposits/investments are made in the name of a real person. It also aids in the reduction of black money. As a result, all mutual fund investors must follow the KYC procedure through a KYC Registration Agency (KRA). KRA, a SEBI-registered firm, stores investor data in a single database to which all fund companies and intermediaries have access. Most investors are familiar with the agencies CAMS, NSE, and KDMS. SEBI later announced a single Know Your Client methodology to ensure consistency and uniformity among SEBI-registered intermediaries. Portfolio managers, mutual fund firms, venture capital funds, and stockbrokers, among others, found it simple to prevent the duplication of KYC documents. This makes compliance easy for investors. Indian KYC Registration Agencies: SEBI KYC Guidelines KRA’s will continue to serve as the repository of KYC data in the securities market, and will be responsible for maintaining, preserving, and retrieving KYC papers and submitting them to the Board or any other statutory body as needed. KRA’s must independently check the records of clients (both existing and new) whose KYC has been completed using Aadhaar as an OVD. Clients who completed KYC using non-Aadhaar OVD would have their data confirmed only after getting their Aadhaar Number. Develop systems/mechanisms in cooperation with SEBI and in coordination with one another, and follow standard internal rules specifying components of KYC attribute identification and KYC validation procedures. Inform the appropriate RI’s as soon as possible of any deficiencies/inadequacies in the client’s KYC documentation. Following successful completion of KYC validation, KRA will provide the customer a unique client identification known as a KRA identifier, which the client may use to create an account with any other intermediary. KYC records of new clients (who have used Aadhaar as an OVD) must be approved by KRAs within two days of receipt. KYC records for all existing clients (who utilised Aadhaar as an OVD) must be confirmed within 180 days of July 1, 2022. KRAs must notify the customer of the KRA identification within two working days of receiving KYC records by letter or email, and save proof of delivery. For non-Aadhaar KYC OVD, the KRA shall only maintain such records, which will not be approved by KRAs unless the client provides an Aadhaar number. Validation of all KYC records (both new and current) will begin on July 1, 2022. Documents for KYC Identification Documentation: PAN card, driving licence, copy of passport, voter ID, Aadhaar card, or bank photo passbook Address Proof: Recent landline or mobile bill, power bill, passport copy, recent Demat account statement, most recent bank passbook, ration card, Voter ID, rental agreement, Driving License, or Aadhaar card Available KYC Procedures Offline Fill out the KYC application form available on the CDSL Ventures website. Sign and deliver a physical copy of the document to the authorities or intermediaries you desire to invest in mutual funds through. Attach certified photocopies of ID and residency evidence, as well as a passport-size photo, to the form. Biometrics Based on Aadhar If you have an Aadhaar card, you can choose Aadhaar-based KYC. You may request that an official from the fund house or agency come to your location to collect the information. Send a copy of your Aadhaar card to the fund house, broker, or distributor, and they will map your fingerprints on their scanner and connect it to the Aadhaar database. Your information will be shown in the database if the fingerprint matches that in the database. This signifies that they verified your identity before proceeding with your mutual fund investment. Benefits of KYC Compliance The most major benefit of becoming KYC compliant is that you will never have to go through the KYC verification procedure again. It is a one-time process, and before you can invest in mutual funds in India, you must have completed your KYC verification. After being KYC compliant, you can invest in any mutual fund plan with any fund company. Being KYC compliant allows you to begin investing in mutual funds in just a few seconds. SEBI KYC Registration Agency (KRA) Regulations 2011 KYC Registration Agency (KRA) is a company formed and registered under the Companies Act, 2013, and which has been issued a certificate of registration under these rules, and which is hence regarded to be an intermediary under the Act’s requirements. KYC” refers to the method established by the Board for identifying and confirming Proof of Address, Proof of Identity, and conformity with rules, regulations, guidelines, and circulars published from time to time by the Board or any other body for the Prevention of Money Laundering. SR. No. Particular Content 1. Application Made to board in form specified under schedule II. REQUIREMENTS- ♦ Not include any mislead or false information, if any mislead information provided it shall be rejected provided opportunity of being heard granted. Before rejecting any application board may provide 30 day time period to remove any objections. FURNISHING OF INFORMATION, CLARIFICATION AND PERSONAL REPRESENTATION- If board require it may ask further clarification or information. CONSIDERATION OF APPLICATION FOR GRANT OF CERTIFICATE OF REGISTRATION- Following conditions are to

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Excise Duty in India

learn / Shruti / October 2, 2024

Taxation plays a vital role in the economy and makes a significant contribution to it. In India, the tax structure encompasses different types of taxes and duties like excise duty. To streamline the process of paying taxes and claiming returns, it is essential for individuals whose income comes under a taxable bracket to become familiar with the different types of taxes and duties. What is Excise Duty? Fundamentally, excise duty is a tax levied on domestically produced goods. Generally, it is charged on their production and sale and is also known as CENVAT or Central Value Added Tax. Central Excise duty is an indirect form of taxation and is collected from a customer by a retailer or an intermediary. It is paid when goods are transferred from the production unit to a warehouse. This particular tax is governed by two sets of acts – Central Excise Act, 1944 and Central Excise Tariff Act, 1985. Ideally, the Central Board of Excise and Customs is responsible for the collection of excise duty. With the introduction of GST, several indirect taxes have been subsumed, including excise tax. Nonetheless, it is still applicable to a few items like petroleum, liquor, etc. Types of Excise Duty There are 3 distinct types of excise duty, namely – Basic Excise Duty This type of excise duty is levied on goods that come under schedule one of the Central Excise Tariff Act, 1985. It is imposed on all excisable goods except salt. Additional Excise Duty It is a tax levied on all goods that are scheduled under Section 3 of the ‘Additional Duties of Excise Act’ of 1957. This tax collected is shared between the state and central government and is levied instead of sales tax. Special Excise Duty This category of tax is levied on those goods listed under the Second Schedule of the Central Excise Tariff Act, 1985. One must note that individuals are exempted from paying taxes. However, such a benefit can be availed based on – Value of turnover in a given financial year. Raw materials used. Process involved. When Should You Pay Excise Duty Excise duty must be paid at the time the items are removed. Assessees must pay excise duty on items manufactured or produced. Excise duty should be paid on the fifth day of the following month from the date the products were taken from the warehouse or factory for the purpose of sale, according to Rule no. 8 of the Central Excise (Amendment) Rules, 2002. If excise duty is paid online through netbanking, the payment is due on the sixth day of the next month. If the payment is paid in March, it must be made by March 31. Who Should Pay Excise Duty? Manufacturers of goods. Entities who got the goods in question manufactured by hired labourers. Entities who have goods in question manufactured by other parties. Steps to Pay Excise Duty Step 1 – Go to EASIEST and select the option for e-payment. Step 2 – Enter the allotted Assessee number and verify it online. Step 3 – Provide details like – address, name and information related to the jurisdictional commissionerate among others. Step 4 – Navigate to the menu for tax-type and then choose the Codes for Excise. Step 5 – Once the accounting code is selected, proceed to select the financial institution through which one can make payment. Step 6 – Verify the information shared and then make requisite payments. Step 7 – With the help of user-ID and password, log in to the gateway for net banking. Step 8 – Enter the tax to be paid and the account for making payment. Step 9 – Once payment is made, a Challan Counterfoil will be generated. Such a challan contains CIN which serves as a proof of payment. Step 10 – Use the Challan Status Inquiry feature to verify the payment status on EASIEST portal. Penalty of Not Paying Excise Duty Excise tax or commit an infraction involving an excisable commodity, the duty chargeable on that product exceeds Rs.50 lakh, then the defaulter faces imprisonment for a term of up to 7 years. A fine will also be levied against the defaulter. Depending on the circumstances, the sentence might be up to three years in prison, with or without a fine. Differences between GST and Excise Duty Parameters Excise duty GST Tax base This tax is levied on manufactured goods. It is implemented at the time of removal of goods from the production unit. It is levied on goods and services. However, GST is levied at the time of supply of goods and services. Filing of returns Monthly or annual returns have to be filed before the 30th of April. GST returns have to be filed monthly or quarterly. On the other hand, the annual return has to be filed prior to the 30th of September. Rate of tax As per the norms of Central Excise Tariff – the current rate of excise duty is 12.36% (it, however, depends on the produced goods). As per GST norms, the rate of taxes are – 0%, 5%, 12%, 18% and 28%. Invoice matching The concept of invoice matching does not exist under the purview of excise duty. The input tax credit can be claimed based on the self-assessed return filed by taxpayers. The input tax credit is given based on invoice matching. Input tax credit Taxpayers can avail credit on the tax that is levied on input products and services. Input credit can be availed on both products and services. One must note that GST credit can be availed on IGST, SGST or CGST. Differences between Custom Duty and Excise Duty These pointers below highlight differences between custom duty and excise duty – Parameters Excise Duty Custom Duty Place of manufacture It is levied on goods that are produced in India. It is levied on goods that are sold in India but are produced in another country. Payer The manufacturer of goods bears it. The importer of goods bears it. FAQs Is CENVAT and excise duty same? No, CENVAT and excise duty are not the same. CENVAT

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GST Composition Scheme

Goods & Service Tax / Shruti / October 2, 2024

Composition Scheme acts as an alternative method for levying a tax under GST. Small businesses registered under the GST composition scheme can pay GST at a fixed rate of turnover every quarter and file quarterly GST returns. Composition levy would be generally related to small taxpayers who are supplying goods and services or both to the end consumer with low turnover. Further, the composition scheme has been designed with the aim of making compliance more accessible and cost-effective for the taxpayers. Eligibility For GST Composition Scheme Getting registered under composition scheme is optional and voluntary. Any business which has a turnover of less than Rs. One crore or 75 lakhs for the specified states can opt for this scheme but on any given day, if turnover crosses the above-mentioned limit, then he becomes ineligible and has to take registration under the regular scheme. There are certain conditions that need to be fulfilled before opting for composition levy. They are as follows: Any assessee who only deals in supply of goods can opt for this scheme that means this provision is not applicable for service providers. However, restaurant service providers are excluded. There should not be any interstate supply of goods that means businesses having only intra-state supply of goods are eligible. Any dealer who is supplying goods through electronic commerce operator will be barred from being registered under composition scheme. For example: If M/s ABC sells its products through Flipkart or Amazon (Electronic Commerce Operator), then M/s. ABC cannot opt for composition scheme. Composition scheme is levied for all business verticals with the same PAN. A taxable person will not have the option to select composition scheme for one, opt to pay taxes for other. For example, A taxable person has the following Business verticals separately registered Sale of footwear, the sale of mobiles, Franchisee of McDonald’s. Here the composition scheme will be available to all 3 business verticals. Dealers are not allowed to collect composition tax from the recipient of supplies, and neither are they allowed to take Input Tax Credit. If the person is not eligible under composition scheme, tax liability shall be TAX + Interest and penalty which shall be equal to the amount of tax. Persons who cannot opt for the composition scheme Supplier of service other than restaurant owners(Serving foods and non-alcoholic drinks) Supplier of non-taxable goods If the person in engage in the inter-state supply of goods Supplier supplying goods through E-commerce operator, who is eligible to collect TCS Supplier of tobacco, pan masala, and ice cream Bill of supply As the composition scheme dealer cannot pass on the credit of the tax, he is required to issue the bill of supply. Details to be mentioned in the bill of supply are as follows – Name, address, and GSTIN of the supplier A consecutive serial number which is a unique number for every financial year Date of issue If the recipient is registered then the name, address, and GSTIN of the recipient HSN Code of goods or Accounting Code for services Description of goods/services Value of the goods/services after adjusting any discount or abatement Signature or digital signature of the supplier or his authorized representative What are the conditions for availing Composition Scheme? No Input Tax Credit can be claimed by a dealer opting for composition scheme The dealer cannot supply goods not taxable under GST such as alcohol. The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge Mechanism If a taxable person has different segments of businesses (such as textile, electronic accessories, groceries, etc.) under the same PAN, they must register all such businesses under the scheme collectively or opt out of the scheme. The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business. The taxpayer has to mention the words ‘composition taxable person’ on every bill of supply issued by him. As per the CGST (Amendment) Act, 2018, a manufacturer or trader can now also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be applicable from the 1st of Feb, 2019. How can a taxpayer opt for composition scheme? To opt for composition scheme a taxpayer has to file GST CMP-02 with the government. This can be done online by logging into the GST Portal. This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme. How Should a Composition Dealer raise bill? A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket. Hence, the dealer has to issue a Bill of Supply. The dealer should also mention “composition taxable person, not eligible to collect tax on supplies” at the top of the Bill of Supply. How should GST payment be made by a composition deale GST Payment has to be made out of pocket for the supplies made. The GST payment to be made by a composition dealer comprises of the following: GST on supplies made. Tax on reverse charge Tax on purchase from an unregistered dealer* Advantages of Composition Scheme Lesser compliance (returns, maintaining books of record, issuance of invoices) Limited tax liability High liquidity as taxes are at a lower rate Disadvantages of Composition Scheme A limited territory of business. The dealer is barred from carrying out inter-state transactions No Input Tax Credit available to composition dealers The taxpayer will not be eligible to supply non-taxable goods under GST such as alcohol and goods through an e-commerce portal. FAQs What is the GST Composition Scheme? The GST Composition Scheme is a simplified tax scheme under the Goods and Services Tax (GST) regime designed for small taxpayers. It allows eligible businesses to pay a fixed percentage of their turnover as tax, rather than the standard GST rates, making compliance easier and more affordable. Who is eligible

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TAN Number: A Comprehensive Guide for Taxpayers

learn / Shruti / October 2, 2024

The full form of TAN is Tax Deduction or Collection Account Number. Every person liable to deduct TDS or TCS must apply for TAN. As per section 203A, this 10-digit alphanumeric number must be quoted when you become liable to either Deduct or Collect tax (i.e., liable to deduct TDS or collect TCS), make payment through challan, or file TDS returns or issue a Tds certificate to the deductee. What is TAN? ax Deduction or Collection Account Number is referred to as TAN. The Income Tax Department provided the 10-digit alphanumeric number. TAN is available to everyone who collects or deducts tax at source (TCS and TDS). A TAN number, such as PDES03028F, is made up of four alphabets, five numbers, and one alphabet. It is structured as follows: The city where TAN has been assigned is represented by the first three alphabets of TAN The first letter of a person’s name is represented by the fourth character of TAN The last alphabet and all five of the numbers are automatically created characters by the algorithm. Your TAN number is a requirement under Section 203A of the Income Tax Act of 1961 for all TDS returns. According to Indian law, TAN is necessary for tax compliance processes. All TDS and TCS forms, challans, payments, and certificates must include the TAN number. It is utilised for deductions such as salary, dividends, or interest. If this isn’t done, there would be a steep penalty of Rs. 10,000. Who Should Apply for TAN? TAN should be obtained by every person responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS). It is mandatory to quote TAN in all TCS or TDS transactions, including any e-TCS/TDS return, TDS/TCS payment challan and TDS/TCS certificates. Importance of TAN Number Any person required to obtain a TAN will face difficulty filing tax returns when he/she does not apply for it. Failure to quote the TAN number in returns or documents will result in a penalty of Rs.10,000. TAN should be quoted in the following documents: TCS or TDS statements/returns. Challans for TDS or TCS payments. Submission of TCS or TDS certificates. Collection or submission of a wide variety of IT-related forms. Structure of TAN The first four digits are letters – First three letters represent the jurisdiction where the TAN is issued. The fourth letter is initial of the entity or individual applying for the TAN. The next five digits are numerical – The numerical in the middle are unique numbers generated by the system. The last digit is a letter at the end – The last one letter is a unique letter generated by the system. TAN Application Process There are two modes for applying for a TAN: Offline The applicant should fill and submit Form 49B (Form of application for allotment of tax deduction and collection account number) to any TIN-Facilitation Center (TIN-FC) of Protean with the required fees for allotment of TAN. An applicant can also download the TAN application from the NSDL website and submit the filled form along with the fees to the TIN-FC. In the case of an in-person TIN application, there is no need to furnish any supporting documents to the IT department. Online Applicants can apply online for TAN through the NSDL website. Applicants should read the instructions, fill the online form and submit it. After submission of the form online, they will receive the acknowledgement number. They must print the acknowledgement number and send it to the NSDL office at Pune. They can pay the required fees online or through a demand draft or cheque. Once the IT department receives the TAN application, they will verify the details and issue the TAN of the applicants to NSDL. The NSDL will send the TAN details to the applicant’s address provided in Form 49B or send an email with the TAN details. FAQs What is the TAN full form? he full form of TAN is Tax Deduction or Collection Account Number. It is required by specified persons who must deduct or collect tax as per the provisions of the income tax act in India. Is separate TAN required for TDS and TCS? No, a single TAN can be used both for TDS and TCS.

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Voter ID Status

learn / Shruti / October 2, 2024

The Voter ID, or Voter Card or Electors Photo Identity Card (EPIC) is a very important document to have in the largest democracy of the world. One of the fundamental rights guaranteed by democracy is the right to vote. This right can be exercised through the Voter ID. The inception of Voter ID goes right back to the days of independence. After the Colonial British Rule Ended, elections were held. Before the first general elections could be held, the country needed a system to identify all the citizens who were eligible to vote. For this, the Election Commission of India brought to its citizens the voter card. What Is Voter ID, Voting ID, Voter Card, Voter ID Card, Election Card? The Election Commission ID is also known as the Voter’s ID in India. It is an important document that Indian citizens need in order to be able to vote. These are unique components of the Voter ID: A serial number The voter’s photograph A state hologram Name of the voter Name of the voter’s father Gender Card holder’s date of birth The voter’s address Signature of the issuing authority Voter ID Eligibility The prerequisites to apply for a Voter ID are: You should be an Indian citizen You should be 18 years old or 18 years old as of January 1 of the year you’re planning to vote in. Are you a resident of the constituency you want to enrol in and vote in? If you have not been disqualified to be an elector. Documents Required For Voter ID Address Proof Passport Utilities bill (gas, water) Rental agreement Ration card Bank Passbook or statement AADHAAR Card Proof Of Age 10th Standard Certificate Birth Certificate PAN Card AADHAAR Card Driver’s Licence Passport Kisan Card Proof of Identity PAN Card Driver’s Licence Ration Card Passport Copy Bank Passbook with Photograph SSLC Certificate Student ID Card AADHAAR Card How To Apply for Voter ID Online: Navigate to the Election Commission Website Go to the Election Commission’s website Choose your state from the list You will automatically go to the Chief Electoral Officer page of your state. Log In Now, you will have to log in to the website. If you’ve never been to this website, register as a new user. New users, fill out your name, email, phone number, and create your account Choose the Continue button Your login details will be sent to your email address Log in with the username and password, and then change your password After you log in, select “Form 6” or “Application for including name in assembly constituency voters list.” Fill Out the Application Enter all your personal details in the application form. Upload a passport-size colour photograph, and then “Submit” the firm and photograph. Verify Identity After you submit the application, you will be asked to visit your closest voter ID centre. Go to the centre with your supporting documents, including identity proof and address proof. The Election Commission will send your new voter’s card within 1 week. Download EPIC Card Go to the Election Commission website and select E-EPIC Download. You will be redirected to a login page, where you need to submit your EPIC card details. After submitting these details, you can download your card. Offline or In-person: You can register for your Voter ID offline by following the steps mentioned below. You can download and print a Form 6 application, or you can visit your local Election Commission office and get a Form 6 there. A Form 6 application is free at the Electoral Registration Officers/Assistant Electoral Registration Officers and Booth Level Officers offices. Along with the application, you will need to submit photocopies of the required documents listed above in the required documents section. Submit the application and documents at the office of the Electoral Registration Officer/Assistant Electoral Registration Officer. Alternatively, you can mail in your application and required documents to the Booth Level Officer in your constituency. FAQs What is the importance of a Voter ID? The voter ID is an essential document that every citizen of the country needs to exercise their right to vote and participate in the democratic process of elections. Who can apply for a Voter Card? Here are the eligibility criteria- 1- Citizens must be at least 18 years of age. 2- Residents of the constituency they want to enrol in. 3- Not be disqualified from applying for a Voter ID.

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Lost Aadhar Card

learn / Shruti / October 2, 2024

Aadhaar Card acts as proof of identity and proof of address. It is also important to avail various government-aided subsidies, opening a bank account, investing in fixed deposit, mutual funds, etc. However, it is imperative that you must not lose your Aadhaar card, but in case of loss or misplacement of Aadhaar card, you can get a duplicate Aadhaar card issued with ease. The duplicate card has the same card number and other details as the original card. Required Documents to Re-apply for Aadhar Card Proof of Identification:- An identity document includes Ration/PDS Photo Card, PAN Card, passport, driving license, etc. Proof of Address:- The address proof documents include bank account details/passbook, electricity bill, water bill, telephone bill, Property Tax receipt, Credit Card statement, etc. Proof of Date of Birth:- The documents accepted for the proof of date of birth includes Birth Certificate, Mark sheet issued by any Government Board or University, PAN card, etc. How to Get Duplicate e-Aadhaar Card Online Step 1: Go to the official UIDAI website i.e. https://resident.uidai.gov.in/lost-uideid Step 2: Choose either ‘Aadhaar No (UID)’ or ‘Enrolment No (EID)’ option Step 3: Input basic information like the name, email address or mobile number registered with UID Step 4: Type in the security code as displayed on the screen Step 5: Click on the ‘Send OTP’ button Step 6: An OTP will be sent to your registered email address or mobile number. Enter the OTP and click on the ‘Submit’ button. Once done, your Aadhaar Number will be sent to your registered email address or mobile number. A confirmation regarding the same will also appear on your screen How to Get Duplicate Aadhaar PVC Card Online? Step 1: Visit the official website of UIDAI and click on ‘Order Aadhaar PVC Card’ listed under the Get Aadhaar section Step 2: Enter your 12-digit Aadhaar Number or 28-digit EID along with the security code Step 3: Now, tick mark the check box if your mobile number is not registered with Aadhaar Card and fill in the non-registered mobile number. In case your mobile number is registered with Aadhaar, you can also login to myAadhaar (myaadhaar.uidai.gov.in) and request for a PVC card. Step 4: Click on the ‘Send OTP’. Step 5: Your OTP will be sent to the option as selected in the previous step. Enter the OTP and click on the ‘Submit’ button. Step 6: You can now preview the Aadhaar card details (only if your mobile number is registered with Aadhaar) Step 7: Make payment either using UPI, net banking, debit card or credit card Step 8: After successful payment, you can download the payment slip Turnaround Time The processing time for the retrieval of lost Aadhar card will take 90 days after the initial request. FAQs Where do I visit to get forgotten Aadhar UID or EID offline? You need to visit Aadhar Seva Kendra to get forgotten Aadhar UID or EID offline. I don’t have a registered mobile number with Aadhar Card, can I get lost Aadhar online? Yes, you can definitely get your lost Aadhar online if you have your registered email ID.

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