Axis Consultants Group

23/03/2018

SAVE WATER 💦 SAVE LIFE

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02/01/2018

Dainik Jagran 02-01-2018

28/12/2017

PROPERTY REGISTRATION COSTS COULD MOVE UP IN KANPUR

06/12/2017

AADHAR LINKED AIR TRAVEL

NEW DELHI: Come 2018 and domestic flyers out of Kolkata, Ahmebadad and Vijayawada will whiz through airports if they link their Aadhaar number to air tickets at the time of booking. Airports Authority of India (AAI) will implement the government’s ambitious “digi yatra” programme as a pilot pr...

16/11/2017

UPDATE ON GST

5% GST on standalone restaurants without ITC

Notification No. 46/2017-Central Tax (Rate), 48/2017-Integrated Tax (Rate) and 46/2017-Union Territory Tax (Rate), Dated 14-11-2017


The Government has notified that GST on standalone restaurants & restaurants in hotel premises having declared room tariff below Rs 7,500 will be 5% without ITC and GST at rate of 18% on restaurants in hotel premises having declared room tariff of Rs 7,500 and above per room per day with ITC. Further, the Govt. has also reduced the GST rate of job work on handicraft goods to 5%.

2. Concessional 5% GST on scientific and technical equipments supplied to 4 specified institutions

Notification No. 45/2017-Central Tax (Rate), 47/2017-Integrated Tax (Rate) and 45/2017-Union Territory Tax (Rate), Dated 14-11-2017


The Govt. has notified concessional GST rate of 5% on supply of scientific and technical equipments to public funded research institutions, research institution, Department and laboratories of Central Govt. and State Govt. and Regional Cancer Centre subject to certain conditions.

3. Admission to a ‘Protected Monument’ exempts from GST

Notification No. 47/2017-Central Tax (Rate), 49/2017-Integrated Tax (Rate) and 47/2017-Union Territory Tax (Rate), Dated 14-11-2017


The services by way of admission to a protected monument are exempted from GST. Further, there is also no GST on services provided by Fair Price Shops to Central and State or Union territory by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System.

4. No refund of unutilised ITC allowed on supply of certain fabrics

Notification No. 44/2017-Central Tax (Rate), 46/2017-Integrated Tax (Rate) and 44/2017-Union Territory Tax (Rate), Dated 14-11-2017


The Govt. has notified that no refund of unutilised ITC would be allowed on the following supplies of fabric:
a) Knotted netting of textile materials
b) Corduroy fabrics
c) Narrow woven fabrics.

5. Supply of raw cotton by agriculturist is now covered under RCM

Notification No. 43/2017-Central Tax (Rate), 45/2017-Integrated Tax (Rate) and 43/2017-Union Territory Tax (Rate), Dated 14-11-2017


The Govt. has notified that GST would be payable under reverse charge mechanism on the supply of raw cotton by agriculturist to any registered person.

6. Govt. notifies new GST rates on certain goods

Notification No. 41/2017-Central Tax (Rate), 43/2017-Integrated Tax (Rate) and 41/2017-Union Territory Tax (Rate), Dated 14-11-2017


The Govt. has notified all the GST rates on goods which are recommended by GST Council in its 23rd meeting.

7. Govt. notifies the CGST (Twelfth Amendment) rules, 2017

Notification No. 55/2017 - Central Tax, Dated 15-11-2017


The Govt. has notified the CGST (Twelfth Amendment) rules, 2017. The Govt. has also inserted the Form GST RFD-01 for application of refund which will be filed manually.

8. Now GSTR-3B has to be filed by 20th of succeeding month till March, 2018

Notification No. 56/2017 - Central Tax, Dated 15-11-2017


Now, all taxpayers are required to file monthly return in GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.

9. Taxpayers having turnover up to Rs. 1.5 crores are required to file GSTR-1 on quarterly basis

Notification No. 57/2017 - Central Tax, Dated 15-11-2017


The taxpayers having annual aggregate turnover up to Rs. 1.5 crore are required to file GSTR-1 on quarterly basis. The due dates for the period of July to September, October to December and January to March, 2018 are December 31, 2017, February 15, 2018 and April 30, 2018 respectively.

10. Taxpayers having turnover above Rs. 1.5 crore have to file GSTR-1 on monthly basis

Notification No. 58/2017 - Central Tax, Dated 15-11-2017


The Govt. has prescribed the due date for filing of GSTR-1 by taxpayers having turnover above Rs. 1.5 crore on monthly basis. The due date for the period of July to October is December 31, 2017 and due dates for month of November, December, January, February and March, 2018 are January 10, 2018, February 10, 2018, March 10, 2018, April 10, 2018 and May 10, 2018 respectively.

11. Due date for filing return by composition dealers for quarter July- Sept., 2017 extended to 24/12/2017

Notification No. 59/2017 - Central Tax, Dated 15-11-2017


Govt. has extended the due date for filing return by composition dealers in Form GSTR-4 for the quarter July to September, 2017 to December 24, 2017.

12. Due date for filing return by NR for months of July to Oct., 2017 extended to 11/12/2017

Notification No. 60/2017 - Central Tax, Dated 15-11-2017


Govt. has extended the due date for filing return by Non-resident foreign taxable person in Form GSTR-5 for the months of July to October, 2017 to December 11, 2017.

13. Govt. extends time limit for filing of GSTR-5A to 15/12/2017 for months of July to Oct., 2017

Notification No. 61/2017 - Central Tax, Dated 15-11-2017


Govt. has extended the due date for filing return by the persons supplying online information and database access or retrieval service from a place outside India to a non-taxable online recipient in Form GSTR-5A for the months of July to October, 2017 to December 15, 2017.

14. ISD can now file GST return for month of July, 2017 till 31/12/2017

Notification No. 62/2017 - Central Tax, Dated 15-11-2017


Govt. has extended the due date for filing return by Input Service Distributor in Form GSTR-6 for the month of July, 2017 to December 31, 2017.

15. Due date for filing of Form GST ITC-04 extended to 31/12/2017

Notification No. 63/2017 - Central Tax, Dated 15-11-2017


The due date for filing details of goods or capital goods sent to job worker and received back in Form GST ITC-04 extended to December 31, 2017.

16. Late fee for filing of GSTR-3B reduced to Rs. 25 per day from Oct., 2017 onwards

Notification No. 64/2017 - Central Tax, Dated 15-11-2017


The late fee for delay in the filing of GSTR-3B reduced to Rs. 25 per day from Oct., 2017 onwards. But if the tax liability for the month is 'Nil', then late fee will be Rs. 10 per day. This fee is under CGST Act and same fees will also be levied under respective SGST Act as well.

17. Threshold limit for registration also applicable to suppliers using e-commerce platform

Notification No. 65/2017 - Central Tax, Dated 15-11-2017


Govt. has provided the exemption from obtaining registration to suppliers providing services through e-commerce platform up to aggregate turnover of Rs. 20 lakhs.

18. Now no need to pay GST on advance received for supply of goods; Govt. notifies

Notification No. 66/2017 - Central Tax, Dated 15-11-2017


The Govt. has notified that the registered person other than composition dealer is not required to pay GST on advance received for supply of goods.

19. Govt. extends due date of filing GST TRAN-1 (with revision facility) till Dec. 27, 2017

Order No. 9/2017-GST and Order No. 10/2017-GST


Govt. has extended the time period for submitting the declaration in Form GST TRAN-1 (with revision facility) till December 27, 2017.

13/10/2017

REAL ESTATE TRENDS

CLSA Research Report:

Real Estate: The fall has just begun

In global markets, gold has fallen over 40% in last 5 years and silver has fallen over whopping 70% during the same period. Commodities prices are also crashing. The Bloomberg commodity index is now at 13 year low.

We’ve written many times in the past about various asset cycles.

In stock markets, a bull market last on an average for 5 years and a bear market for 3 years. So it takes 8 years for equity market to go through one complete cycle. So any holding period for less than 10 years or so is speculation.

For gold, a bull market last on an average of 10 years and bear market for 20 years. So it takes 30 years for gold to go through one complete cycle. What is true for gold is true for many other commodities as well. Commodities had a good run from 2002 to 2012 and it would not be a surprise if the current bear cycle last for next 2 decades.

I’m saying the above based on my extensive reading and understanding. Again the term ‘average’ can be misleading, as one bull market in stocks can be for 10 years and a bear market can be for 6 years. The given number is an average over many cycles. Each cycle may vary.

As far as real estate is concerned, based on what I discussed with people who have been observing real estate in the country for long time, they say that the real estate bull cycle is usually for 10 years and followed by bear cycle for another 10 years. A complete cycle may take usually 20 years. It looks like the current bear cycle in real estate has started some time in 2013. Real estate had a good run between 2004 to 2013. The earlier bear cycle for real estate started in 1996 and lasted till 2003.

Instead of like sharp corrections in stock markets, real estate market corrections are slow and last over many years. A fall of even 50% is not uncommon. In the 1996-2003 bear cycle, properties in many part of India fell by 50%.

Assuming this bear cycle lasts for 10 years, we may expect the real estate to rise again only in the early part of next decade. One significant change which is happening to real estate is that black money in the same has started coming down. The direction is very clear. As the environment and legislations are getting tough for black money, over a period, black money would play a significantly lesser role in the years to come.

Indian real estate prices have been kept very high and unaffordable for common man due to black money. During the current bear cycle in real estate, the black money also would be largely brought under control. If that happens, in my opinion, we can longer expect mind boggling returns in real estate even in next bull cycle. Real estate would give around 2% to 3% more than inflation. If inflation is 5%, we can expect real estate to give 7% to 8%.

In a fair market, the rental yields are close to cost of borrowing. Whereas in India, the rental yields are 2% and the cost of borrowing is 10%. As interest rates soften, the cost of borrowing would come down. As real estate prices correct, the rental yields would also go up. This would narrow the gap between rental yield and cost of borrowing.

Another thumb rule is that the value of the property should not be more than 3 times one’s annual income. If your annual income is Rs.12 lakhs, your house purchase value should be Rs.36 lakhs. If just assumed someone in Chennai has a Rs.3 lakhs annual income and a good 2 BHK in any decent suburb costs not less than Rs.75 lakhs. So a Chennaiite need 25 years of income, if he wants to own a flat in his city.

From my interaction with many people, I find that they commit not less than their 10 years income for a flat. This is not accounting for interest component.

The house price to rent ratio should be around 15. If a house cost Rs.1 Crore and the annual rent is Rs.3 lakhs; the price to rent ratio works out to 33, which is very expensive. Going by the thumb rule, if this ratio is above 20, then the cost of owning is considered higher than cost of renting. This means you would be better of paying rent.

If the above ratio is 15, then the rental yield will be 6.7% per annum (example: Property price is Rs.30 lakhs and annual rental is Rs.2 lakhs). So the ideal rental yield should not be less than 5%.

It would not be a surprise that in next few years real estate prices fall to such an extent, that the rental yields may be around 5% instead of the current 2%.

In nut shell, the bear cycle in real estate has just begun. Don’t be surprised even if there is a 50% correction over next few years. Tone down your expectation on real estate even in the next bull cycle as black money would start playing a lesser role.

Learn to accept the following returns from asset classes over long run:

Fixed Deposits: Inflation + 1%

Gold: Inflation + 1.5%

Real Estate: Inflation + 3%

Equity: Inflation + 7%

12/10/2017

Dainik Jagran, Kanpur 12-10-2017

16/09/2017

*Income-Tax Dept. to launch Jurisdiction-Free Assessment from October*

*The assessment of taxpayers is set to become jurisdiction-free.* Coming October, the income tax (I-T) department will launch a pilot project of the new system in Mumbai and Delhi to identify the loopholes. *The project will then cover 100 cities in the first phase of implementation.*

*The system envisages allocation of a particular taxpayer’s profile to any officer across the country via a special software.* In the existing system, taxpayers are assessed in the specific region where they are based.

The move aims to curb corruption in the department along with harassment faced by the assessees. “This is a first-of-its-kind initiative. Under this, *neither the assessee nor the tax officer would know the other’s identity,*” said a senior I-T official close to the development.

*The system would be equipped to deal with all kinds of tax-related matters, including filing of returns, scrutiny cases, and others, he added.*

The system is expected to dissolve the main 18 tax regions in the country, which account for all direct tax collection.

Recently, Prime Minister Narendra Modi highlighted several defects in existing tax laws and directed the I-T department to build a new system for taxpayers.

*In the new system, if the tax department launches scrutiny against a person in Delhi, the software will provide the related correspondence and generate a unique identification number. This number, or code, would be randomly assigned to an assessing officer (AO) based in say, Mumbai or Guwahati or anywhere else. The AO will not be able to identify the person against whom the scrutiny has been launched.* The investigation will be pursued based on the case details and the relevant documents pertaining to the matter.

The new system would also do away with the AOs’ discretionary powers to call for additional documents, records, and most importantly, ask the taxpayer to appear in person.

Under the pilot project, the additional documents, if required, will be sought through the system, which will automatically send a request to the assessee for submission of the same.

The jurisdiction-free assessment system aims to minimise interaction between the taxpayer and the tax officer, ensuring a transparent and no-harassment culture. “The e-communication is expected increase voluntarily participation, and give more comfort to the assessee,” added the officer.

The first experiment would be done on scrutiny cases through an ‘e-proceeding’ system — an internet-based paperless communication system for tax dealings. The I-T department is working on similar modules.

17/08/2017

E-WAY BILL UNDER GST

17/08/2017

17/08/2017

Area based exemption is BACK!!!