Newsletters June Form

Know it Yourself: Interesting Updates about GST!!

  • The Goods and Services Tax (GST) Council Approved 7 Rules related to:

    • Registration

    • Valuation

    • Input Tax Credit

    • Invoice

    • Payment

    • Refunds

  • GST Classification of supplies into good of categories under slab rates as Nil, 5%, 12%,18% and 28%

  • Compensation Cess for Products: Aerated Water, Pan Masala, Coal, Motor cars

  • Government had paused migration process from May 1 with a message that window shall open again from June 1 for 15 days for those who have not migrated their existing registrations to GST.

  • Cess under GST – CESS applicable under GST on luxury/ demerit items will be applied on base value and not on value inclusive of GST. i.e. An item with 28% GST and 15% Cess will have effective tax rate of 43% and not 47.2%

  • Rate of GST on purchase of flat before completion is 12% of value including value of land.

  • GST Not applicable for Alcohol, tobacco, petroleum products

Employee’s Provident Fund Appeals to be Disposed of by CGIT

In a bid to rationalize tribunals and bring in more uniformity in terms of service and efficiency, the Centre brought the axe down on eight tribunals including EPF Appellate Tribunals. As part of its amendments to the Finance Bill which has now been notified in the Gazette of India vide notification No.1696 (E) dated 26.5.2017.

The EPF Appellate Tribunals have been presently functioning at Delhi and Bengaluru. Now the appeals against the orders of the Employees' Provident Fund Authorities under section 7A and 14B of the EPF&MP Act will be heard by the Central Government Industrial Tribunal which is functioning at 22 places all over India.

EPFO : New Online Form and Software

  • EPFO launched a new monthly online return form for exempted / relaxed Private Provident Fund Trusts on 29 May 2017

  • The software for the new online return form was launched on 27 May 2017

  • Online return for every month is to be filed by the Trust by the 15th of the month following the month of payment of contributions (online return for the month of April 2017 is to be filed by 15 June 2017).

  • The performance of all Trusts will be monitored on a regular basis. Ranks will be assigned and will be published on the EPFO website.

  • Information regarding withdrawal claims settled by the Trust, date of contributions into the Trust and investment pattern of the Trust is required to be provided in the online return.

  • Employers / Trustees have an option of providing their feedback / comments in the online return.

  • Non-filing of online return for 3 consecutive months will result in cancellation of the exemption/relaxation granted to the employer / Trust.

The Maternity Benefits Act, 1961

Eligibility for Maternity Benefit:

Tenure of Work in Establishment: 80 Days in 12 Months before Date of Delivery Earning less than INR 21,000/- covered under ESI, not eligible for Maternity Benefit

Employee’s Duties

  • Ask employer to give her light work. [Produce certificate of pregnancy]

  • Inform employer about expected delivery date and the leave period.

  • Name the person to whom the payment will be made in case she cannot take herself.

Cash Benefits

  • 26 Weeks leave with pay before/after delivery.

  • A medical bonus of Rs. 3500/-

  • An additional leave with pay up to one month [Proof of illness]

  • In case of miscarriage Six weeks leave with average pay

  • Tubectomy Surgery: Leave with Wages @ of maternity benefit for a period of 2 months

Non Cash Benefits

  • Light work for 10 weeks (6 weeks plus 1 month) before delivery.

  • Nursing breaks of 15 Minutes until the child is 15 months old.

  • No discharge or dismissal while on maternity leave.

  • No charge to her disadvantage in any conditions of her employment while on maternity leave.

  • Pregnant women discharged or dismissed may still claim maternity benefit from employer.

Legal Obligation under Maternity Act

  • No employer can unknowingly employ a woman in establishment during 13 weeks following date of delivery or miscarriage.

  • Nursing breaks of 15 Minutes until the child is 15 months old.

  • No woman shall work in any establishment during the 13 weeks immediately the day following her delivery.

  • No charge to her disadvantage in any conditions of her employment while on maternity leave.

  • Shall be Unlawful for her employer to discharge or dismiss her on account of such absence.

  • In case of Gross misconduct the employer in writing can communicate about depriving such benefit.

  • Within 60 days from date of deprivation of maternity benefit, any Women can appeal to the authority prescribed by law.

Duties and Penalty for Employer

Penalty for Contravention of Act Imprisonment with minimum period of 3 months to maximum 01 year. Fine from INR 2000 – INR 5000

The Karnataka Labour Welfare Fund (Amendment) ACT, 2017

Karnataka State Government has amended the Labour Welfare Fund Act to increase the ratio of contribution payable to the Labour welfare board

Effective Apr’17

Before Amendment After Amendment
Employee Share: INR 6/- Employer Share: INR 20/-
Employee Share: INR 12/- Employer Share: INR 40/-
Government Share: INR 6/- Government Share: INR 20/-

Compliance Calendar for June17

Due Date Act/Enactment Nature of Transaction Existing Rules Mode
15th June ‘17 EPF & MP ACT 1952 Remitttance of Contributions Challan/ECR to be generated/uploaded "online" Remittance of Challan (Pay online through SBI or other bank)
15th June ‘17 EPF & MP ACT 1952 Statement Showing IW with nationality & Wages Statement IW-1 & Form - 5 & 2 Concerned/Regional RO
15th June ‘17 EPF & MP ACT 1952 Remitttance of Contributions Challan/ECR to be generated/uploaded "online" Pay Online

Service Tax Calendar

For Payment Offline Payment Offline
Companies & HUF 5th June’17 6th June’17

For Individual & Partnership Firms

Quarter Quarter Period Last Date of Filing
1st Quarter 1st April to 30th June 6th July, 2017

Quarterly TDS Remittance-Quarter ending 30th June’17-Due Date 31st July’17

Reverse Charge Mechanism

There are some services specified by the Government of which the service tax has to be collected and paid by the service recipient. Some of the major services under reverse charge are:

  • Supply of manpower

  • Insurance Agent Service

  • Goods Transport Agency Service

  • Rent-a-Cab Service

  • Legal Service

  • Works Contract

  • Sponsorship Service

  • Import of Taxable Service