Arjuna (Fictional Character): Krishna, festival of Gudhi Padwa is coming soon. It is a start of New Year. So this year, will the Gudhi which will increase the prosperity of tax payers build?
Krishna (Fictional Character): Arjuna, Gudhi Padwa means beginning of Marathi new year. In Maharashtra state people build the Gudi in front of their houses with bamboo by decorating it with cloth, flowers, neem leaves, pot, sugar candy and worship it and welcome the New Year. In the taxation, the bamboo means GST as it is the base of Indirect tax system. Our finance minister has tried to build the Gudhi of state through state budget. Let us discuss about that.
Arjuna: Krishna, In the state budget what is the provision for profession tax?
Krishna: Arjuna, for every registered person, up to the age of 65 years and for every registered company, up to the business is carried on, it is compulsory to pay the profession tax every year. To pay the profession tax at concessional rate instead of paying the tax every year (One time payment of tax) is the attractive scheme which is recommended.
Arjuna: Krishna, Is there any provision in the budget for TDS?
Krishna: Arjuna, Under VAT, it is compulsory for the employer to deduct the TDS from the payment made to contractors. Contractors can take the credit of TDS deposited. After the implementation of the GST, if the employer deducts the TDS of contractor, the contractor can not take the credit of the same. So, recommendation is made regarding the credit to be allowed for the period 1st July, 2017 to 31st December, 2018 for the amount deducted by the employer.
Arjuna: Krishna, what are the provisions relating to VAT?
Krishna: Arjuna, As per VAT rules, if the aggregate turnover of the business is more than Rs. 1 Crore, then it is compulsory for them to submit Audit Report. After the implementation of the GST act, VAT registration of the most dealers is cancelled. For them, for VAT Audit, the aggregate turnover of first three months will be considered. So the limit of Rs. 25 Lakh is recommended.
Under VAT Act, there is provision relating not to collect the outstanding up to Rs. 100. Available manpower should be used for the collection of higher amount of outstanding, that’s why it is recommended that this limit is to be increased up to Rs. 500 and Interest upon that also should not be collected.
In case of VAT, the appointment of Judicial officers is done by high court and the appointment of Technical officers is done by the committee appointed by Government.
Arjuna: Krishna, Is there any provision for GST in this Budget?
Krishna: Arjuna, No. After the implementation of GST, there are no such drastic changes in the indirect taxation. GST Council has powers to take the decisions regarding GST. So there is no any decision taken relating to GST in state budget.
Arjuna: Krishna, What lesson the taxpayer should take from this?
Krishna: Arjuna, Our finance minister has well tried to build the Gudhi of state through state budget. The tax payers should build their Gudi properly in the finance world and should do the business by following tax laws strictly.