Tax Insights

  The New tax regime was first introduced in Budget 2020 through enactment of new Section 115BAC, which was amended through Budget 2023.   In this article below Points will be discussed: Ø   Applicability. Ø   Tax slab Rate (New V/s Old Regime). Ø   Rebate u/s 87A in New regime. Ø   Conditions/ Restrictions in New Regime. Ø    How to opt New Regime.     Applicability:     With effect from the 1st day of April 2023, Individual, HUF, AOP, BOI or Artificial juridical person have an option either to tax under the old regime which offers various deductions and exemptions or to taxed under new regime while new tax regime offers lower rate of tax, it has limited deductions available .   Tax Slab Rate (New V/s Old Regime): Below are the tax slab comparison between old regime and new regime:  Total income Old Regime New Regime Upto Rs. 2,50,000 Nil...

Recently GSTN team issued an advisory relating to option for payment under forward charge mechanism by GTAs. As per the Notification No. 03/2022-Central Tax (Rate), dated 13th July 2022, an option is being provided on the portal to all the existing taxpayers providing Goods Transport Agencies Services, desirous of opting to pay tax under the forward charge mechanism to exercise their option. Extracts of Notification No. 03/2022-Central Tax (Rate) Option Exercised Output Tax Rate Input Tax Credit Availability A.) GTA exercises the option to itself pay GST on services supplied by it.   5% IGST or 2.5% CGST SGST Each GTA shall not take credit of input tax charged on goods and services used in supplying the service. Or   12% IGST or 6% CGST SGST Each GTA may take credit of input tax charged on goods and services used in supplying the service. B.) G...

Equalisation levy is a tax that is levied on certain types of digital transactions that are carried out by non-resident companies in India. Till now, India has introduced 2 such levies for addressing the digital economy tax challenges. Equalisation Levy 1.0 Introduced through Finance Act 2016 Equalisation Levy 2.0 Introduced through Finance Act 2020 Equalisation levy is not a part of the Income Tax Act, 1961 instead it was introduced by Finance Act as a new provision in the Indian tax system. It is not a tax on income like direct tax instead it is tax levied on transaction like indirect tax.  The below article is divided into 4 parts as follows: Applicable Provisions. Cases where Equalisation Levy Shall not be charged. Compliances.  Penal Provision.  Applicable Provisions: As per  Section 163  of the Finance Act 2022, Equalisation levy apply to consideration received or receivable for: 1. ...