India has rolled out one of the biggest tax reform – the Goods and Services Tax (GST) – which has replaced the complex maze of Central taxes and duties such as Excise Duty, Service Tax, Counter Veiling Duty (CVD), Special Additional Duty of Customs (SAD), central charges and cesses and local state taxes that was Value Added Tax (VAT), Central Sales Tax (CST), Octroi, Entry Tax, Purchase Tax, etc. Coinciding with the new tax regime the Mumbai-based Trade Association of Information Technology(TAIT) organized their Knowledge Series events putting an emphasis on Input Tax Credit and the way forward in the GST regime for their members.
TAIT’s past sessions/events on GST have been addressed by CAs and the Service Tax department. This time the association had invited G V Bilolikar, Jt. Comm. of Sales Tax, Mumbai to address the members.
The event kicked off with a panel discussion on ‘Road to Successful IPO’ where panelist Vinit Bolinjkar – Head, Equity Research, Ventura Securities Ltd., Ketan Patel, President and CEO of Creative Peripherals and Distribution Ltd and Nikit Rambhia, Joint Managing Director of Panache Digilife Ltd discussed about current IPO market and checklists, filing requirements, role of advisors, bankers and exchanges, IR specialists and the media.
TAIT knowledge series also took up Input Credit Tax (ITC) under GST topic to develop better understanding and clarity among the members.
ITC under the GST framework is one of the core concepts which will help eliminate the cascading effect of taxes. Any manufacturer, supplier, agent, e-commerce operator, aggregator registered under GST are eligible to claim input credit for tax paid on their purchases. Addressing the queries of TAIT members, the panel discussed those conditions to claim ITC under the GST, which is one of the most critical activities for every business to settle its tax liability.
In order to claim ITC they shared various conditions to be fulfilled such as –
• should have tax invoice/debit note/document evidencing payment
• goods and/or services receipt where goods are delivered by the supplier to another person in the direction of registered person against a document of transfer of title of goods;
• furnishing of a return where goods are received in lots or installments ITC will be allowed to be availed when the last lot or installment is received;
• failure to the supplier towards the supply of goods and/or services within 180 days from the date of invoice, ITC already claimed will be added to output tax liability and interest to be paid on such tax involved. On payment to supplier, ITC will be again allowed to be claimed;
• No ITC will be allowed if depreciation has been claimed on tax component of a capital good
• If invoice or debit note is received after the due date of filing return for September of next financial year or filing annual return, whichever is later
Archana Koul, Technical consultant, Cisco talked about the new arrival for Cisco SMB and the enterprise market. Talking about Cisco Catalyst 2960-L Portfolio she said, “These L-series switches power small networks with quietness and simplicity. They can be appropriately targeted in bank branches, hotel buildings, school buildings, retail stores, office buildings, etc as it meets the specifications that are often demanded in these scenarios. These switches are low-priced GE model, with simple management, low energy consumption, small factor plugin support, Basic layer-2 functionalities and other enterprise grade quality features that are often needed in the above sectors.”
Pushpasheel Andari, Head Solution Engineering Tata Teleservices Ltd gave insights on ‘Digital platform for emerging businesses and how Tata Teleservices (TTSL) is coming up with technologically advanced innovative products and services, by playing an enabling role in simplifying consumer lives, expanding digital inclusion addressing the requirements of the emerging businesses. He said, “TTSL is a leading player in the enterprise space providing integrated voice, data and managed services to large, medium and small enterprises in over 60 cities across India. The team comprises over 2,000 people and over 1,200 channel partners. The company has set up a robust infrastructure which includes the largest fiber optic backbone in the country covering over 1, 25,000, equipped to serve the connectivity needs of all businesses.”
“TAIT as the leading IT industry association in India, always makes a consolidated effort helping every member streamline their business. We leave no stone unturned to help members regarding any obstacles they are/maybe facing adopting the new tax regime. We have also requested special assistance from the VAT department and we are pleased to state that TAIT will be given special guidance and assistance whereby the VAT department will be deploying their staff at the TAIT office where members can reach and seek assistance, a unique step by our association,” said, Rushabh Shah, President, TAIT.
Pratik Lapsia of Redfinch said, “We feel proud to be associated with TAIT. The association has always stood as a support and guiding light whenever our company goes through changing business environment. TAIT’s various GST workshops have helped us to stand steady and understand the new tax regime to drive our business efficiently.”
TAIT through their various workshops and seminars have put in immense effort in addressing doubts and queries of the members through lists of frequently asked questions.