Faq

Ans1. Goods and Service Tax (GST) is an indirect tax levied in India on the sale of goods and services. GST is levied at every step in the production process, but is refunded to all parties in the chain of production other than the final consumer. Goods and services are divided into five tax slabs for collection of tax –

0%, 5%, 12%,18% and 28%.

Only alcoholic drinks & Petroleum products are taxed separately by the state governments individually. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.

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 Modi government. The tax replaced existing multiple cascading taxes levied by the central and state governments.

The tax rates, rules and regulations are governed by the GST Council which comprises finance ministers of centre and all the states. GST simplified a slew of indirect taxes with a unified tax and is therefore expected to reshape the country’s 2.4 trillion dollar economy.

This will comprise of:

• Central GST (CGST) which will be levied by Centre
• State GST (SGST) Which will be levied by State
• Integrated GST (IGST) – which will be levied by Central Government on inter-State supply of goods and services.

GST is a tax that we need to pay on supply of goods & services. Any person, who is providing or supplying goods and services, is liable to charge GST.

Ans2.
Pros of GST

There is no doubt that in production and distribution of goods, services are increasingly used or consumed and vice versa. Separate taxes for goods and services, which is the present taxation system, requires division of transaction values into value of goods and services for taxation, leading to greater complications, administration, including compliances costs. In the GST system, when all the taxes are integrated, it would make possible the taxation burden to be split equitably between manufacturing and services.

• GST will be levied only at the final destination of consumption based on VAT principle and not at various points (from manufacturing to retail outlets). This will help in removing economic distortions and bring about development of a common national market.
• It will also help to build a transparent and corruption-free tax administration. Presently, a tax is levied on when a finished product moves out from a factory, which is paid by the manufacturer, and it is again levied at the retail outlet when sold.
• The tax structure will be made lean and simple
• The entire Indian market will be a unified market which may translate into lower business costs. It can facilitate seamless movement of goods across states and reduce the transaction costs of businesses.
• It is good for export oriented businesses. Because it is not applied for goods/services which are exported out of India.
• In the long run, the lower tax burden could translate into lower prices on goods for consumers.
• The Suppliers, manufacturers, wholesalers and retailers are able to recover GST incurred on input costs as tax credits. This reduces the cost of doing business, thus enabling fairer prices for consumers.
• It can bring more transparency and better compliance.
• Number of departments will reduce which in turn may lead to less corruption
• More business entities will come under the tax system thus widening the tax base. This may lead to better and more tax revenue collections.
• Companies which are under unorganized sector will come under tax regime.

Cons of GST

• Instead of blurring out the difference between goods and services tax, it highlights them. An aam aadmi (common man) filing the tax-returns will have to suffer.
• It requires strong IT (Information Technology) infrastructure at grass-root levels. India essentially lacks this. This factor is going to be the bottleneck, if not addressed well in advance.
• Very high rates 16% compared to current 12.5 % VAT.
• Requirement to determine ‘Point of Supply’
• No ITC for purchases from Compounding dealers
• Tax-sharing between states and the Centre was another bottleneck. Nice to see that there is a consensus now.
• Service businesses operating pan-India need to take state-wise registration leading to increased compliance
• Any supply (Ex: stock transfer, job-work)would be taxable (although fully creditable) leading to cash flows getting blocked
• Doesn’t include petroleum and alcohol products. Heavy loss to the exchequer.
• Businesses operating in multiple states need to re-align their branch network / warehouse / logistics strategy
• Input credit is subject to matching of invoices

Ans. An existing taxpayer is currently registered entity under any of the Acts as mentioned below:-

a. Central Excise
b. Luxury Tax
c. Entry Tax
d. State Sales Tax / VAT (except exclusive liquor dealers if registered under VAT)
e. Entertainment Tax (except levied by the local bodies)
f. Service Tax

Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key fields.

GST System portal has been created for this purpose as no paper based enrolment will be allowed.You need to enroll as a user on the GST system portal, so that you may be enabled as a registrant for GST Compliance requirement viz. return filling, tax payment, etc.

No. The enrolment process is common for all taxpayers registered under Centre /State/UT tax Acts as specified in Q1

No, any person who wants to seek enrolment under the GST Act has to apply on the GST System Portal. Enrolment under the GST is common for both Central GST and the State GST. There will be common registration, common return and common Challan for Central and State GST.

Ans. The documents required for GST Registration is mentioned below :-
a. Proof of Constitution of Business :
i. In case of Partnership firm: Partnership Deed of Partnership Firm (PDF and JPEG format in maximum size of 1 MB)
ii. In case of Others: Registration Certificate of the Business Entity (PDF and JPEG format in maximum size of 1 MB)
b. Photograph of Promoters/ Partners/Karta of HUF (JPEG format in maximum size of 100 KB)
c. Proof of Appointment of Authorized Signatory (PDF and JPEG format in maximum size of 1 MB)
d. Photograph of Authorized Signatory (JPEG format in maximum size of 100 KB)
e. Opening page of Bank Passbook / Statement containing Bank Account Number of < Account Number>, Address of Branch, Address of Account holder and few transaction details (PDF and JPEG format in maximum size of 1 MB)

Benefits
For the Centre and the States
According to experts, by implementing the GST, India will gain $15 billion a year. This is because, it will promote more exports, create more employment opportunities and boost growth. It will divide the burden of tax between manufacturing and services.

For individuals and companies
In the GST system, taxes for both Centre and State will be collected at the point of sale. Both will be charged on the manufacturing cost. Individuals will be benefited by this as prices are likely to come down and lower prices mean more consumption, and more consumption means more production, thereby helping in the growth of the companies.

For the Centre and the States
According to experts, by implementing the GST, India will gain $15 billion a year. This is because, it will promote more exports, create more employment opportunities and boost growth. It will divide the burden of tax between manufacturing and services.

For individuals and companies
In the GST system, taxes for both Centre and State will be collected at the point of sale. Both will be charged on the manufacturing cost. Individuals will be benefited by this as prices are likely to come down and lower prices mean more consumption, and more consumption means more production, thereby helping in the growth of the companies.

It is a tax levied by the Government of India on the income of every person. The provisions governing the Income-tax Law are given in the Income-tax Act, 1961.

The revenue functions of the Government of India are managed by the Ministry of Finance. The Finance Ministry has entrusted the task of administration of direct taxes like Income-tax, Wealth tax, etc., to the Central Board of Direct Taxes (CBDT). The CBDT is a part of Department of Revenue in the Ministry of Finance.

CBDT provides essential inputs for policy framing and planning of direct taxes and also administers the direct tax laws through the Income-tax Department. Thus, Income-tax Law is administrated by the Income-tax Department under the control and supervision of the CBDT.

Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1 st April and ending on 31 st March of next calendar year. The Income-tax Law classifies the year as (1) Previous year, and (2) Assessment year.
The year in which income is earned is called as previous year and the year in which the income is charged to tax is called as assessment year.

e.g., Income earned during the period of 1 st April, 2015 to 31 st March, 2016 is treated as income of the previous year 2015-16. Income of the previous year 2015-16 will be charged to tax in the next year, i.e., in the assessment year 2016-17.

Income-tax is to be paid by every person. The term ‘person’ as defined under the Income-tax Act covers in its ambit natural as well as artificial persons.

For the purpose of charging Income-tax, the term ‘person’ includes
a. Individual
b. Hindu Undivided Families [HUFs]
c. Association of Persons [AOPs]
d. Body of individuals [BOIs], Firms,
e. LLPs (Limited Liability Partnership)
f. Companies
g. Local authority and any artificial juridical person not covered under any of the above.

Thus, from the definition of the term ‘person’ it can be observed that, apart from a natural person, i.e., an individual, any sort of artificial entity will also be liable to pay Income-tax.

Taxes are collected by the Government through three means: a) voluntary payment by taxpayers into various designated Banks. For example, Advance Tax and Self Assessment Tax paid by the taxpayers, b) Taxes deducted at source [TDS] from the income of the receiver, and c) Taxes collected at source [TCS]. It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly.​

Generally, the tax on income crystallizes only on completion of the previous year. However, for ease of collection and regularity of flow of funds to the Government for its various activities, the Income-tax Act has laid down the provisions for payment of taxes in advance during the year of earning itself. It is called as ‘pay as you earn’ concept.

Taxes may also be collected on your behalf during the previous year itself through TDS and TCS mode. If at the time of filing of return you find that you have some balance tax to be paid after taking into account the credit of your advance tax, TDS & TCS, the shortfall is to be deposited as Self Assessment Tax.

Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:

a) In case of all the assessees (other than the eligible assessees as referred to in section 44AD) :

i) Up to 15 per cent – On or before 15th June

ii) Up to 45 per cent – On or before 15th September

iii) Up to 75 per cent – On or before 15th December

iv) Up to 100 per cent –On or before 15th March

b) In case of eligible assessee as referred to in Section 44AD:

Up to 100 per cent – On or before 15th March

Note: Any advance tax paid on or before 31st day of March shall also be treated as paid during the same financial year.

[Substituted by the Finance Act, 2016 w.e.f. 1-6-2016]

The deposit of advance tax is made through challan ITNS 280 by ticking the relevant column, i.e. , advance tax.

Under the Income-tax Act, every person has the responsibility to correctly compute and pay his due taxes. Where the Department finds that there has been understatement of income and resultant tax due, it takes measures to compute the actual tax amount that ought to have been paid. This demand raised on the person is called as Tax on regular assessment. The tax on regular assessment has to be paid within 30 days of receipt of the notice of demand.

The possible reasons for no credit being displayed in your Form 26AS can be:

1. Deductor/collector has not filed his TDS/TCS statement;

2. You have not provided PAN to the deductor/collector;

3. You have provided incorrect PAN to the deductor/collector;

4. The deductor/collector has made an error in quoting your PAN in the TDS/TCS return;

5. The deductor/collector has not quoted your PAN;

6. The details of challan against which your TDS/TCS was deposited was wrongly quoted in the statement by the deductor or wrongly quoted in the challan details uploaded by the bank.

To rectify these errors you may request the deductor:

1. to file a TDS/TCS statement if it has not been filed;

2. to rectify the PAN using a PAN correction statement in the TDS/TCS statement that has been already uploaded if it has made an error in the PAN quoted;

3. to furnish a correction statement if the deductor had filed a TDS/TCS statement and had inadvertently missed providing your details or you had not given your PAN to him before he filed the TDS/TCS return;

4. to furnish a correction statement if the deductor had filed a TDS/TCS statement which had mistake in the challan details;

5. to take up with the bank to rectify any mistake in the amount in the challan details uploaded by the bank.

No, you are thereafter responsible for ensuring that the tax credits are available in your tax credit statement and TDS/TCS certificates received by you and that full particulars of income and tax payment are submitted to the Income-tax Department in the form of Return of Income which is to be filed before the due date prescribed in this regard.

He/She is an officer of the Income-tax Department who has been given jurisdiction over a particular geographical area in a city/town or over a class of persons.

Under the Income-tax Law, the word income has a very broad and inclusive meaning. In case of a salaried person all that is received from an employer in cash, kind or as a facility is considered as an income. For a businessman his net profit will constitute his income. Income may also flow from investments in the form of Interest, Dividend, Commission, etc. Further, income may be earned on account of sale of capital assets like building, gold, etc.
Income shall be computed as per relevant provision of Income-tax Act, 1961 which lays down detail condition for computation of income chargeable to tax under various heads of income

An exempt income is not charged to tax, i.e., Income-tax Law specifically grants exemption from tax to such income. Incomes which are chargeable to tax are called as taxable incomes.

E.g., Dividend income from an Indian company is granted specific exemption and, hence, the same is not liable to tax in the hands of the shareholders. However, dividend from a foreign company is taxable.

Receipts can be classified into two kinds: A) Revenue receipt, B) Capital receipt.
Revenue receipts are recurring in nature like salary, profit from business, interest income, etc.

Capital receipts are generally of isolated nature like receipt on account of sale of residential building, personal jewellery, etc.

The general rule under the Income-tax Law is that all revenue receipts are taxable, unless they are specifically granted exemption from tax and all capital receipts are exempt from tax, unless there is a specific provision for taxing them.

Agricultural income is not taxable. However, if you have non-agricultural income too, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for rate purpose. For meaning of Agricultural Income refer section 2(IA) of the Income-tax Act.

No.

For every source of income you have to maintain proof of earning and the records specified under the Income-tax Act. In case no such records are prescribed, you should maintain reasonable records with which you can support the claim of income.

Even if you have only agricultural income, you are advised to maintain some proof of your agricultural earnings/expenses.

Yes, such winnings are liable to flat rate of tax at 30% without any basic exemption limit. In such a case the payer of prize money will generally deduct tax at source (i.e., TDS) from the winnings and will pay you only the balance amount.

Yes, you can claim relief in respect of income which is charged to tax both in India as well as abroad. Relief is either granted as per the provisions of double taxation avoidance agreement entered into with that country (if any) by the Government of India or by allowing relief as per section 91 ​ of the Act in respect of tax paid in the foreign country.​

Profession means exploitation of one’s skills and knowledge independently. Profession includes vocation. Some examples are legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, artists, writers, etc.

The Income-tax Act does not prescribe any specific books of account for a person engaged in business or in non-specified profession. However, such a person is expected to keep and maintain such book of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of the Act.

For companies the books of account are prescribed under the Companies Act. Further, the Institute of Chartered Accountants of India has prescribed various Accounting Standards and Guidelines that are required to be followed by the business entities As regards the maintenance of books of account by a professional, who is engaged in specified profession has to maintain certain prescribed books of account, if the annual receipts from the profession exceed Rs. 1,50,000 in all the three years immediately preceding the previous year (in case of newly set up profession, his annual receipts in the profession for that year are likely to exceed Rs. 1,50,000).

Specified profession covers profession of legal, medical, engineering, architectural, accountancy, company secretary, technical consultancy, interior decoration, authorised representative, film artist or information technology.

For more details on the provisions relating to maintenance of books of account you may refer provisions of section 44AA read with Rule 6F of the Income-tax Rules, 1962.​

All the books of account and related documents should be kept at the main place of business, i.e. , where the business or profession is generally carried on. These documents should be preserved for a minimum of six years. Where, however, the assessment has been reopened, all books of account and other documents which were kept and maintained at the time of reopening of assessment should continue to be so kept and maintained till the assessment so reopened has been completed.​

Ans. A trademark (popularly known as brand name) in layman’s language is a visual symbol which may be a word
signature, name, device, label, numerals or combination of colours used by one undertaking on goods or services or
other articles of commerce to distinguish it from other similar goods or services originating from a different
undertaking. The legal requirements to register a trademark under the Act are:
 The selected mark should be capable of being represented graphically (that is in the paper form).
 It should be capable of distinguishing the goods or services of one undertaking from those of others.
 It should be used or proposed to be used mark in relation to goods or services for the purpose of indicating
or so as to indicate a connection in the course of trade between the goods or services and some person have
the right to use the mark with or without identity of that person.

Ans. If it is a word it should be easy to speak, spell and remember. The best trademarks are invented words or coined words or unique geometrical designs.
Please avoid selection of a geographical name, common personal name or surname. No one can have monopoly right on it.
Avoid adopting laudatory word or words that describe the quality of goods (such as best, perfect, super etc.)
It is advisable to conduct a market survey to ascertain if same/similar mark is used in market.
If it is a word it should be easy to speak, spell and remember. The best trademarks are invented words or coined words or unique geometrical designs.
Please avoid selection of a geographical name, common personal name or surname. No one can have monopoly right on it.
Avoid adopting laudatory word or words that describe the quality of goods (such as best, perfect, super etc.)
It is advisable to conduct a market survey to ascertain if same/similar mark is used in market.

Ans. Under modern business condition a trademark performs four functions
 It identifies the goods / or services and its origin.
 It guarantees its unchanged quality
 It advertises the goods/services
 It creates an image for the goods/ services.

Ans. Any person, claiming to be the proprietor of a trademark used or proposed to be used by him, may apply in
writing in prescribed manner for registration. The application should contain the trademark, the goods/services,
name and address of applicant and agent (if any) with power of attorney, the period of use of the mark. The
application should be in English or Hindi. It should be filed at the appropriate office.
The applications can be submitted personally at the Front Office Counter of the respective office or can be sent by
post. These can also be filed on line through the e-filing gateway available at the official website.

Ans.
 Any name (including personal or surname of the applicant or predecessor in business or the signature of the
person), which is not unusual for trade to adopt as a mark.
 An invented word or any arbitrary dictionary word or words, not being directly descriptive of the character
or quality of the goods/service.
 Letters or numerals or any combination thereof.
 The right to proprietorship of a trademark may be acquired by either registration under the Act or by use in
relation to particular goods or service.
 Devices, including fancy devices or symbols
 Monograms
 Combination of colors or even a single color in combination with a word or device
 Shape of goods or their packaging
 Marks constituting a 3- dimensional sign.
 Sound marks when represented in conventional notation or described in words by being graphically
represented.

Ans. The Registered Proprietor of a trademark can create establish and protect the goodwill of his products or
services, he can stop other traders from unlawfully using his trademark, sue for damages and secure destruction of
infringing goods and or labels.
The Government earns revenue as a fee for registration and protection of registration of trademarks
The Legal professionals render services to the entrepreneurs regarding selection registration and protection of
trademarks and get remunerations for the same
The Purchaser and ultimately Consumers of goods and services get options to choose the best.

Ans. The registration of a trademark confers upon the owner the exclusive right to the use the trademark in relation
to the goods or services in respect of which the mark is registered and to indicate so by using the symbol (R), and
seek the relief of infringement in appropriate courts in the country. The exclusive right is however subject to any
conditions entered on the register such as limitation of area of use etc. Also, where two or more persons have
registered identical or nearly similar marks due to special circumstances, such exclusive right does not operate
against each other.

Ans.
 The national statues i.e., the Trade Marks Act, 1999 and rules made thereunder .
 International multilateral convention.
 National bilateral treaty.
 Regional treaty.
 Decision of the courts.
 Office practice reduced in Manuals and guidelines and rulings of the Courts
 Decision of Intellectual Property Appellate Board.
 Text books written by academician and professional experts.

Ans. The register of trademark currently maintained in electronic form contains inter alia the trademark the class and
goods/ services in respect of which it is registered including particulars affecting the scope of registration of rights
conferred; the address of the proprietors; particulars of trade or other description of the proprietor; the convention
application date (if applicable); where a trademark has been registered with the consent of proprietor of an earlier
mark or earlier rights, that fact.

Ans. But the basic principle is that the trademark applied for should not be substantially altered affecting its identity.
Subject to this changes are permissible according to rules detailed in the subordinate legislation.

Ans. It can be removed on application to the Registrar on prescribed form on the ground that the mark is wrongly
remaining on the register. The Registrar also can suo moto issue Notice for removal of a registered trademark?

Ans. Digital Signature Certificate (DSC) is the electronic format of physical or paper certificate like a
driving License, passport etc. Certificates serve as proof of identity of an individual or organization for a
certain purpose on online / computer. Digital Signature Certificate (DSC) Certificate can be presented
electronically to prove your identity, to access information or services on the Internet or to sign certain
documents digitally manually.

Ans. A Digital Signature Certificate (DSC) Certificate authenticates your identity electronically. DSC also
provides you with a high level of security for your online transactions by ensuring absolute privacy of the
information exchanged using a Digital Signature Certificate (DSC). You can use certificates to sign /
encrypt information such that only the intended recipient can read it. You can digitally sign information to
assure the recipient that it has not been changed in transit, and also verify your identity as the sender of
the message.

Ans. For sending and receiving digitally signed and encrypted emails/ documents.
For carrying out secure web-based transactions.
In eTendering, eProcurement,for Registrar of Companies e-filing,Income Tax for e-filing income tax
returns and also in many other applications.
For signing documents like MS Word, MS Excel and PDFs.

Ans. Legally valid Digital Signature Certificate (DSC) Certificates are issued only through a Controller of
Certifying Authorities (CCA), Govt. of India, licensed Registration Authorities (RA), such as e-Solutions. e-
Solutions, a Registration Authorities (RA) licensed by (n)Code Solutions-CA, offers secure Digital
Signature Certificate (DSC)s through various options tailored to suit individual as well as organizational
needs.

Ans. A Digital Signature Certificate (DSC) explicitly associates the identity of an individual/device with a
two keys – public and private keys. The certificate contains information about a user&#39;s identity (for
example, their name, pincode, country, email address, the date the certificate was issued and the name
of the CA. These keys will not work in the absence of the other. They are used by browsers and servers
to encrypt and decrypt information regarding the identity of the certificate user.
The private key is stored on the user&#39;s computer hard disk or on an external device such as a USB token.
The user retains control of the private key; it can only be used with the issued password. The public key is
disseminated with the encrypted information. The authentication process fails if either one of these keys
in not available or do not match. This means that the encrypted data cannot be decrypted and therefore,
is inaccessible to unauthorized parties.

Ans. Yes, as per Information Technology Act 2000 in India, Digital Signature Certificate (DSC) are legally
valid in India. Digital Signature Certificate (DSC) are issued by licensed Certifying Authorities under the
Ministry of Information Technology, Government of India as per the Information Technology Act.

Ans. Class 3 Company / Organization User certificate is required for e-Tendering, e-Procurement ,
Trademark / Patent filing. Class 3 is the highest type of Digital Signature Certificate. it can be issued for 1
years or 2 years. After the valid period , user need to renew class 3 digital signature certificates.

Ans. Class 2 Digital Signature Certificate is required for Income Tax filing, ROC and MCA filing. Class 2
Digital Signature Certificate can be issued for 1 year or 2 years. After the valid period , user need to
renew class 2 digital signature certificates. Class 2 Digital Signature certificate can be issued to individual
/ organization.

Ans. Class 3 DGFT Digital Signature Certificate is required for DGFT website to communicate. DGFT Digital
Signature is valid for 1 years or 2 years. User can save time and money by using DGFT Digital Signature
Certificate.

Ans. DSC of Class 2 and Class 3 category issued by a licensed Certifying Authority (CA) needs to be obtained
for e-filing on the MCA Portal.

Ans. X509 is the industry standard for digital certificate format. It defined the various mandatory and
optional attributes that can be defined within the certificate.

Ans. Digital signature certificates have an explicit start date and an explicit expiration date. Most
applications check the validity period of a certificate when the digital certificate is used. The signature
certificate expiration date is also used for managing the certificate revocation list (CRL). A certificate is
removed from the revocation list when its natural expiration date arrives. As such, generally the shorter
the certificate validity period, the shorter the CRL.

Ans. A root certificate is one of two things: Either an unsigned public key certificate or a self-signed
certificate used to identify the Root Certificate Authority (CA). The root certificate is in fact the anchor of
trust in a digital certificate and is used for validating the entire certification tree.

Ans. Yes

Ans. In addition to four classes of certificates given below, the Certifying Authority may issue more
classes of Public Key Certificates, but these must be explicitly defined including the purpose for which
each class is used and the verification methods underlying the issuance of the certificate. The suggested
four classes are the following :-
Class 0 Certificate: This certificate shall be issued only for demonstration/ test purposes.
Class 1 Certificate: Class 1 certificates shall be issued to individuals/private subscribers. These
certificates will confirm that user&#39;s name (or alias) and E-mail address form an unambiguous subject
within the Certifying Authorities database.
Class 2 Certificate: These certificates will be issued for both business personnel and private individuals

use. These certificates will confirm that the information in the application provided by the subscriber does
not conflict with the information in well-recognized consumer databases.
Class 3 Certificate: This certificate will be issued to individuals as well as organizations. As these are
high assurance certificates, primarily intended for e-commerce applications, they shall be issued to
individuals only on their personal (physical) appearance before the Certifying Authorities.