Real Time Accounts and Financial Services Provide the all the services related to Income Tax (IT), Goods and Service Tax (GST) and Tax deducted at source (TDS).
GOODS AND SERVICES TAX (GST)
Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed in India on the supply of goods and services. It is a comprehensive multistage, destination based tax: comprehensive because it has subsumed almost all the indirect taxes except few; multi-staged as it is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination based tax, as it is collected from point of consumption and not point of origin like previous taxes.
Goods and services are divided into five different tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax regime. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.
In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range.
The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian government. The tax replaced existing multiple flowing taxes levied by the central and state governments.
The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of centre and all the states. GST is meant to replace a slew of indirect taxes with a federated tax and is therefore expected to reshape the country’s 2.4 trillion dollar economy, but not without criticism. Trucks’ travel time in interstate movement dropped by 20%, because of no interstate check posts.
The GST was launched at midnight on 1 July 2017 by the President of India, and the Government of India. The launch was marked by a historic midnight (30 June – 1 July) session of both the houses of parliament convened at the Central Hall of the Parliament. Though the session was attended by high-profile guests from the business and the entertainment industry including Ratan Tata, it was boycotted by the opposition due to the predicted problems that it was bound to lead for the middle and lower class Indians.
HSN is an 4 to 8-digit code for identifying the applicable rate of GST on different products as per CGST rules of government of India. If a company has turnover up to INR 15 million in the preceding financial year then they need not mention the HSN code while supplying goods on invoices. If a company has turnover more than INR 15 million but up to INR 50 million, then they need to mention the first two digits of HSN code while supplying goods on invoices. If turnover crosses INR 50 million then they shall mention the first 4 digits of HSN code on invoices.
An e-Way Bill is an electronic permit for shipping goods similar to a waybill. It was made compulsory for inter-state transport of goods from 1 June 2018. It is required to be generated for every inter-state movement of goods beyond 10 kilometres (6.2 mi) and the threshold limit of ₹50,000 (US$720).
TAX DEDUCTED AT SOURCE (TDS)
Tax Deducted at Source (TDS) is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting a prescribed percentage. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service. It has a great importance while conducting tax audits. Assessee is also required to file quarterly return to CBDT. Returns states the TDS deducted & paid to government during the Quarter to which it relates.
Objectives of Tax Deducted at Source.
• To enable the salaried people to pay the tax as they earn every month. This helps the salaried persons in paying the tax in easy installments and avoids the burden of a lump sum payment.
• To collect the tax at the time of payment of income to various assesses such as contractors, professionals etc.
• Government requires funds throughout the year. Hence, advance tax and tax deducted at source help the government to get funds throughout the year and run the government smoothly.
TDS on Dividends
Section 302of Income Tax Act, 1961 by law notes.
• TDS provisions under this section are attracted only in respect of deemed dividend u/s 2(22)(e), If such dividend exceeds 2500 in year.
• Rate of deduction of tax in respect of such dividend is 10%.
• Provisions will not apply to dividend receivable by SADHA, GIC(General Insurance Corporation), its subsidiaries or any other insurer provided shares are owned by it or in which it has full beneficial interest :] [Provided also that no such deduction shall be made in respect of any dividends referred to in section 115-O.]
TDS on immovable property
1. Section 194IA of Income Tax Act,1961.
• This provision is applicable in respect of transactions effected on or after June 1, 2013
• It seeks deduction of tax at source on transfer of certain immovable property other than agricultural land to a resident transferor.
• Any person being a transferee who is liable to Pay to a resident by way of consideration for transfer of any immovable property exceeding 50 Lakhs shall at the time of credit of such sum to the account of the transferor or at the time of payment in whatever manner, has to deduct tax at source at 1% only
This TDS on property is required to be deposited in 30 days from the end of the month in which deduction is made for all payments to be made on or after 01st June 2016. 
2. Section 194IB of Income Tax Act,1961
• This provision is applicable in respect of transactions effected on or after June 1, 2017
• It seeks deduction of tax at source on payment of rent exceeding Rs. 50,000 in a month by an individual or HUF to a resident landlord.
• TDS shall be deducted @ 5% at the time of credit of rent for the last month of the previous year or the last month of tenancy, if the property is vacated during the year, as the case
3. Section 194C of Income Tax Act,1961 
• Tax need to be deducted 1% (for individual, HUF)/ 2% (for others) of payment where payment is made for carrying out any work (including supply of labour for carrying out any work and advertisements) by a contractor/sub-contractor.
• Such work must be in pursuance of a contract (including sub contract) between the contractor and payer.
• TDS is to be made at the time of credit to the account of contractor or at the time of payment in cash or by cheque or draft or by any other mode whichever is earlier.
• No TDS shall be deducted if the single time payment to contractor does not exceed RS. 35000 or Rs. 1,00,000 in aggregate during the year.
A deductor is required to issue a TDS certificate called form 16 for salaried employees and form 16A for non-salaried employees within a specified time.
Deductor has to issue TDS Certificates within two months of the next financial year
Impact of non-compliance to TDS
Income Tax Act, 1962
• Disallowance u/s. 40(a) (ia) of Income Tax Act, 1962 (Act)
• Raising of demand u/s. 201(1) of the Act
• Charging of Interest u/s (1A) of the Act
• Levying penalty u/s. 271C of the Act