In cases where the supplier is not registered under GST, the registered buyer will have to pay GST directly to the government on a transaction of goods or services. This is called the Reverse Charge Mechanism. This is called reverse charge as the chargeability of GST gets reversed on the buyer. However, the reverse charge is not a new concept under the GST law. Even under the erstwhile VAT regime, the reverse charge existed, but only on services. Now, under the GST law, the reverse charge shall be applicable to both goods and services. That's the difference.

 Under the Income Tax Act, of 1961, a Hindu Undivided Family or HUF is taxed (as a separate entity) from its members. Accordingly, the family can claim all deductions or exemptions (allowed under the tax laws) separately. Following are some highlights on the taxation of HUF: (1) HUF has its own PAN; (2) HUF can file a separate tax return; (3) A joint (Hindu) family business is separately created; (4) The joint family has an entity separate from its members; (5) Deductions under Section 80 and other exemptions can be claimed by the HUF in its income tax return; (6) HUF can take an insurance policy on the life of its members; (7) HUF can pay a salary to its members if they contribute to its functioning of the HUF; (8) Salary paid to family members can be deducted as expense from the income of HUF; (9) Investments can be made from HUF’s income; (10) Any returns from investments (from HUF’s income) are taxable in the hands of the HUF.; (11) HUF is taxed at the same rates as an individual. (12) HUF can be used by families in India as an effective means to build assets.

With an amendment made to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, the Indian government has enhanced the record-keeping for international transactions exceeding Rs 50,000. Under the amended rules, reporting entities are now required to diligently identify their clients, verify their identities, and ascertain the purpose of the business if it is not clearly defined. This additional measure will ensure that international transactions above Rs 50,000 undergo a thorough examination. The additional move is primarily aimed at combating terror financing by subjecting such transactions to closer scrutiny.

 Under the Companies (Amendment) Act 2015, the companies are not mandatorily required to have a common seal. Even the existing companies may amend their Articles of Association (AOA) to this effect.

 Tax Limit and Exemptions: (1) In this land of Bharat Mata, women taxpayers enjoyed higher basic exemption limits (as compared to men) till the FY 2011-12. (2) With effect from FY 2012-13, the preferential treatment for women assessees was abolished. (3) As a result, a common tax slab was introduced for both men and women. (4) As of today, there is therefore no specific benefit or deduction available for women taxpayers in India under the Income-tax Act, of 1961.

The appointment of an Independent Director for a term less than five years would be permissible, appointment for any term (whether for five years or less) is to be treated as a one-term under section 149(10) of the Companies Act, 2013 (MCA General Circular 14/ 2014, dated June 9, 2014).

Form 15G: Are you a resident individual of less than 60 years or a HUF or any other person (other than a company or a firm)? If yes, you can submit Form 15G to your banker for not deducting TDS on your interest income if the income is below the basic exemption limit. In Form 15G, you have to provide details of your estimated income for the FY.

Do you know? The first bank in India to be nationalized was the Reserve Bank of India (RBI). The RBI was nationalised w.e.f. 1st January 1949 under the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of RBI were deemed transferred to the Central Government on payment of suitable compensation.

Are you investing in foreign stocks, mutual funds, or cryptocurrencies abroad? If yes, you will have to pay more TCS if you spend more than Rs 7 lakh in a financial year. The applicable TCS on foreign remittance has been increased to 20% from the existing 5% w.e.f. 1 Oct 2023.

Do you know? If an employee withdraws from EPF before completing his 5 years of continuous service, TDS will be deducted at 10% (If PAN is not provided, TDS to be deducted at the highest slab rate of 30%). However, no TDS will be deducted when the amount withdrawn is less than Rs.50,000.

Small players are eligible for the composition scheme under GST: GST composition scheme can be availed by small traders, service providers, and manufacturers. In the case of small taxpayers, having a turnover of up to Rs 1.5 crore (Rs 75 lakh for special category States), they can simply pay 1% GST on turnover. However, in the case of service providers with a turnover of up to Rs 50 lakh, 6% GST is to be paid.