Nightmare of
GST ?
-------------------------
HINDUSTAN TIMES ( 01 May 2017 ) carries
following news report :
“ You may have to fill 37 forms a year
to be GST compliant “
GSTR
The tax returns under GST will be 37 in a year for a company; GSTR-1, GSTR-2 and
GSTR-3—for each month, and one annual return. For a company with operations in
20 states, it means 740 annual returns.
The finance ministry officials said they
are trying to further simplify the process so that small businesses are not
overburdened with filing returns.
Experts point out the huge reporting
requirement under GST that has be handled and understood by taxpayers, be it
businessmen or professionals. This is in contrast to the half-yearly returns
mandated under the present service tax regime.
TRACKING TRANSACTIONS:
A businessman registered under GST, will
have to upload all sales and stock transfer details on the GSTN. Every
transaction will also have to invoiced.
COMPLIANCE:
Those paying tax under GST, will have to
make investments to ensure compliance. Taxpayers will have to raise invoices
and bills in the correct format laid down by the GSTN. E-way bills will have to
be generated for every stock movement. Debit and credit notes will also have to
be maintained along with books of accounts in the approved format.
Can this nightmare be turned into a
day-dream ?
It is not merely , a question of “
can “ !
It is a question of “ how ? “
By implementing my following blog (
earlier sent as email to NDA Ministers ) :
Wednesday, 7
December 2016
From UPI to UTI
Of
late, UPI ( Unified Payment
Interface )
is talk of the town
It
is high time , we also start talking about UTI ( Unified Transaction
Interface )
Without
naming it as such , Income Tax Department has already started compiling and
analyzing , high value sales / purchase transactions , to figure out instances
of suspected tax evasions
IT
recently sent out notices ( Emails ? ) to some 7 lakh parties involved in 14 lakh high value non-PAN transactions, asking them
to furnish their PAN details
Under
several laws / rules / regulations , IT requires various agencies / entities /
individuals , to furnish a lot of information whenever money changes hands
Following
are a few examples :
---------------------------------------------------------------------------------------------------
Who must report ? : Banks / NBFC / Post offices
What
?
: Time Deposits ( if totaling Rs 10 L or more in
a year )
---------------------------------------------------------------------------------------------------
Who must report ? : Companies / Mutual Funds
What
?
: Purchase of shares / Mutual Fund units (if Rs 10 L or more in a
year )
---------------------------------------------------------------------------------------------------
Who must report ? : Professionals / Businessmen
What
?
: Cash receipts exceeding Rs 2 L from any person for sale of
goods / services
---------------------------------------------------------------------------------------------------
Who must report ? : Jewellers
What
?
: TCS ( Tax collected at Source ) for sale of bullion exceeding Rs 2 L or
jewellery exceeding Rs 5 L in cash
---------------------------------------------------------------------------------------------------
Who must report ? : Any Seller
What
?
: Sale of any other Goods / Service exceeding Rs 2 L
---------------------------------------------------------------------------------------------------
Who must report ? : Property Buyers
What
?
: TDS ( Tax deducted at Source ) for purchase of property with a value
exceeding
Rs 50 L ( to be reported before paying the seller )
---------------------------------------------------------------------------------------------------
Who must report ? : Person making any payment
What
?
: Lottery / Game winning prizes exceeding Rs
10,000
( to be reported before paying the winner )
---------------------------------------------------------------------------------------------------
Who must report ? : Buyer
What
?
: Quote PAN while buying / paying / depositing ,
* Property exceeding Rs 10 L
* One time payment at hotels / restaurants, exceeding Rs 25,000
*
Depositing cash exceeding Rs 50,000 in a day with a bank
* Purchase of Foreign Currency exceeding Rs 50,000
---------------------------------------------------------------------------------------------------
Who must report ? : Seller
What
?
: Verify PAN and furnish a statement to IT department on
transactions
beyond a certain threshold
---------------------------------------------------------------------------------------------------
Who must report ? : Banks / Mutual Funds / Companies /
Registrars
What
?
: Annual Information Report ( AIR ) on high value
transactions
--------------------------------------------------------------------------------------------------
{ Source : Maulik Madhu / Business Line / 05
Dec / Government on Data Trail }
---------------------------------------------------------------------------------------------------
Considering
the effort involved in compiling / collating and analyzing such a massive data
, coming in continuously from lakhs of sources , it was natural for the IT
department to make use of computer based BIG DATA analytics
, to narrow down those suspicious cases
In
our goal to make India , a LESS CASH economy
, UPI
/ AEPS ( Aadhar Enabled
Payment System ) , was an important FIRST step
But UPI /
AEPS , just does NOT cover those sale / purchase
transactions which take place using Credit
/ Debit cards and private brand Mobile Wallets !
To
ensure that these transactions too get into the database of the Income Tax
department , I suggest following :
STEP # 2
All
other PRIVATE brand Mobile Wallets ( Paytm / MobiQuick / ItzCash /
FreeCharge etc ), must be integrated with UPI, so that the sale / purchase TRANSACTION DATA generated through use of such private
mobile wallets too gets integrated into the COMMON database of the Income Tax
department
STEP # 3
All Card-Swipe / PoS machines must be UPI /
AEPS compliant, so that all sale / purchase TRANSACTION DATA generated through use of all
CREDIT / DEBIT cards, too gets integrated into that COMMON database of IT Dept
STEP # 4
All
sale / purchase transactions by all other Electronic Fund Transfer Network (
EFTN ), too must be also transmitted / deposited , into this COMMON DATABASE of TRANSACTIONS
IN NUT-SHELL :
All sale / purchase transactions of any kind ( goods
or services ) , MUST all get into a COMMON / CENTRAL database , through
introduction of a UTI ( Unified Transaction Interface )
UPI
+ UTI =
" Less Cash " + " Less Evasion " + " Less Black "
I
request Shri Arun Jaitley-ji to consider my suggestion
02 May 2017
www.hemenparekh.in
/ blogs
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