‘Keep documents, records in true sense and spirit’
| Date :25-Feb-2020 |
CA Naresh Jakhotia, CA Shailendra Jain; Suresh Rathi, CA Rajesh Loya, CA Ashok Chandak and O S Bagdia at the Vidarbha Industries Association event.
Business Bureau :
The Taxation and Corporate Law Forum of Vidarbha Industries Association (VIA) recently organised a tax awareness session - ‘Chhoto Chhoti Batein’ at VIA Hall.Renowned tax professionals of the city - CA Rajesh Loya and CA Shailendra Jain were the key note speakers. At the outset, CA Naresh Jakhotia, Treasurer - VIA, briefed about the concept of the programme to the audience and the results of small mistake in the tax laws. VIA President Suresh Rathi in his welcome address appreciated the event and spoke about the frequency of changes in the tax laws. CA Ashok Chandak, Chairman of VIA Taxation and Corporate Law Forum and Past National Chairman of ICAI, in his opening remarks highlighted the importance of the session under the prevalent scenario where tax laws are changed every now and then.
He appealed to industries to join for this session like this to resolve their issues and grievance related to taxation. Initiating the presentation, CA Rajesh Loya asked the tax payer to be serious in keeping the records and books of accounts. He began his presentation with the appeal to the taxpayer to regularly keep the documents and records in its true sense and spirit. He appealed the promoters for their personal involvement in the accounting & voucher signing process as it is one of the key activities of the business. He insisted the businessmen to ensure the timely filing of TDS return, Income Tax Return, Advance tax payment & its importance at subsequent point of time.
He also covered the penal consequences in case of non compliances of various provision of Income Tax. He also cautioned about various other laws like money laundering, IPC that could have repercussion after the income tax survey & raids. He advised the taxpayer to be regular in checking the e-notice if any at the income tax portal as non response would result in penalty. He also informed the audience about gathering of the AIR information and CIB, STR & FIU information gathering done by the Income Tax Department. He advised the precautions to be taken in case of borrowing from hundi and market where the onus to establish credit worthiness and genuineness is established on the borrower. With various practical examples and illustrations, he highlighted about the applicability of new tax rate ranging from 78% to 138% in case of certain income.
He also highlighted the new concept of “Know your Customer” before you deal with them. He strongly asked to ensure the payment of statutory dues within time. Wrong submission of 15G/15H could result in penal consequences in the form of prosecution and the fine also, he cautioned. He advised the assessee not to treat the tax compliance as year end affair and also to check the 26AS frequently. He cautioned the investor about the classification of income in to business income or capital gain income as improper classification could also result in penal consequences.
With various practical examples, he conveyed the industrialist about the usage of artificial intelligence by the income tax department. He advised the taxpayer to be cautious in the TDS compliance as the non deduction /payment results in disallowances and results in unwanted tax liability. He also emphasizes the need for correct classification of income as capital expenditure vs. revenue expenditure. He appealed taxpayer to be genuine, transparent and honest in paying the tax. He also told the audience about the prosecution proceedings which are initiated through out the country for wrong filers or non filers. He informed the audience about the quality scrutiny proceedings that is undertaken by the department and the usage of 360 degree profile of assessee during assessment. He has also thrown the light on deemed dividend, section 14A & notional tax provision.
CA Shailendra Jain advised to dealer to display the GST number on the name board and also to display GST registration certificate failure to which will attract penalty of Rs 25,000. He also suggest to dealer to update the latest address of business, email id, contact number on the GST site. He also advised to check the mail boxes regularly once in day and respond to the notices immediately. Formal vote of thanks was proposed by O S Bagdia, former Vice President VIA. Prominently present were Mahendra Jain, Satish Sarda, Monika Rathi, Saket Bagdia, M Jawanjar, and many other representatives from industries and professionals.