India Tax Compliance Map

Email: bom4ww@evershinecpa.com
A-16, 1st Floor, Aruna Asaf Ali Marg, Qutub Institutional Area, New Delhi, 110067, India
Manager Punit Singh Negi, speak Indian and English.
Skype: cspunitnegi

GLA – India Corporate Income Tax

GLA-IN-01GLA Tax Entity

Question from client:
Is India corporate income tax a Central income tax? A State income tax? Or is there a central and state income tax?
What if the central income tax and the state income tax are levied separately or levied together?
What is the standard tax rate? What is the special tax rate?

Answer from Evershine RD:
The tax system in India is divided between the Central and State Governments and local bodies.
The Central government is empowered to levy taxes on income, customs duties and GST on inter-state and intra-state supplies and imports.
State governments levied on entry tax, stamp duty, state excise, land revenue, GST on intra-state supplies, entertainment tax and tax on professions.
Local bodies are empowered to levy taxes on properties and utilities like electricity, drainage, etc.
There are no local, state, or provincial taxes on income in India.
Corporate Tax Rates for Domestic Companies AY 2021-22:

*10% surcharge is applicable for total taxable income exceed INR 10 million.
**Effective tax rates include surcharge and 4% health and education cess.

GLA-IN-02 Registration

Question from client:
Which government unit is responsible for the collection of India corporate income tax?
The registration of the country’s corporate income tax status, that is, the tax certificate number application procedure, paper certificate number application?
Or online account application? URL?
What is the advance certificate number for applying for this certificate number?
Do I need to use the industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
The Central Board of Direct Taxes (CBDT) is the governing body for direct tax administration in India.
Every taxpayer having activity in the country are mandatory to register for a PAN (Permanent Account Number).
It is issued by the Income Tax Department and consists of a unique 10-digit alphanumeric code.
Visit the ‘e-Filing’ Portal https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html for tax registration.
Form to be used for application is Form 49A (Indians), Form 49AA (Foreigners).

GLA-IN-03 GLA Order (OD)

Question from client:
What is the order of India corporate income tax return (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit first (DF). Pay by installment first and declare later.

GLA-IN-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for India corporate income tax return (information flow determines the tax base)?
Filing cycle: monthly? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: website URL?

Answer from Evershine RD:
It is mandatory for a company to file its return of income electronically under digital signature.
Income-tax Department has established an independent portal for e-filing of return of income.
The taxpayers can log on to www.incometaxindiaefiling.gov.in for e-filing the return of income.
The due dates for filing return of income by a Company is 31^st October.

GLA-IN-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for India corporate income tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
The tax that is to be paid by the companies on their income is called as corporate tax, and for payment of same in the challan, it is mentioned as Income-tax on Companies (Corporation tax).
Advance tax is to be calculated based on the expected tax liability of the year. Advance tax is to be paid in installments as given below:

Payment on 15 June of each year shall not be less than 15% of the estimated annual income tax payable.
The annual income tax paid on September 15 each year shall not be less than 45% of the estimated annual income tax, less the provisional tax paid.
75% of the estimated annual income tax payable on the 15th of December of each year, less the provisional tax paid.
15 March of each year shall be no less than 100% of the estimated annual income tax, less the provisional tax paid.
Provisional tax payment electronically: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Any balance of tax due based on the return must be paid on a self-assessment basis before the return is filed.
It is compulsory for companies to pay tax using the e-payment mode only.
The e-payment gateway can be approached from www.tin-nsdl.com.

GST – India GST

GST-IN-01 GST Tax Entity

Question from client:
Is India GST Central GST? State GST? Or is there a Central plus state GST?
What if the central GST and state GST are levied separately or levied together?
What is the standard GST rate? What is the special GST rate?

Answer from Evershine RD:
The Constitution empowered the central and state governments of India to introduce a Goods and Services Tax (GST) regime in India.
India GST is a dual model:

1. Central GST (CGST), levied by the Central Government.
2. State GST (SGST)/ Union Territory GST (UTGST), levied by the State Governments/ Union Territories.

Central GST (CGST) is levied at central level on the intrastate supply of goods and/ or services.
State GST (SGST)/ Union territory GST (UTGST) is levied by individual states/ union territories on the intrastate supply of goods and/ or services;and
Integrated GST (IGST) is levied at a federal level on interstate supplies of goods and services between states, and on imports and exports (unless zero-rated).
Total CGST + SGST/ UTGST rates for various categories of supplies are:
0.25%, 1%, 3%. 5%, 12%, 18% and 28%.
IGST rates are equal to the total GST rate, as IGST is applied on a stand-alone basis.

GST-IN-02 Registration

Question from client:
Which government unit is responsible for the levying of GST in India?
The registration of India’s GST levy status, that is, the application procedure for GST certificate number, paper certificate number application? Or online account application? URL?
What is the advance certificate number for applying for a GST certificate number?
Do I need to use an industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
The Central Board of Indirect Taxes and Customs (CIBC) is the governing bodies for indirect tax administration in India.
All businesses which participate in interstate trade are expected to have a TIN (Taxpayer Identification Number) or called a GST Number or Sales Tax Number.
TIN is an 11-digit numeric code issued by the Commercial Tax Department of the respective State.
There are two ways to register for GST:

1. via GST Online Portal https://reg.gst.gov.in/registration/
2. via GST Seva Kendra set up by the Government of India

GST-IN-03 WWT Order (OD)

Question from client:
What is the order of India’s GST declaration (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? First declare and then pay?
At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period (SP) – Declare and pay at the same time.

GST-IN-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for India GST declaration (information flow determines the tax base)?
Filing cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Website URL?

Answer from Evershine RD:
There are three monthly returns for a normal taxpayer under GST:

To file GST online, go to www.gst.gov.in.

GST-IN-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for India GST payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize the deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
OCT payment at the bank counter?
Or the above methods coexist?

Answer from Evershine RD:

The following are the modes of GST payment available on the GST portal:

1. Internet banking
2. Over the counter via cheque/ cash
3. National Electronic Fund Transfer (NEFT)

Taxpayers can pay through these modes with or without logging in to the GST portal.
There is a list of banks that the GST portal allows taxpayers to pay from. They must choose the bank and make GST payment online using a card or net banking instantly.
After making the GST payment, the electronic cash ledger will be updated automatically.
https://payment.gst.gov.in/payment/

CGST Act provides payment of taxes by a standard Indian taxpayer is due on monthly basis by filing deadline for the monthly GST return.

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Email: bom4ww@evershinecpa.com
A-16, 1st Floor, Aruna Asaf Ali Marg, Qutub Institutional Area, New Delhi, 110067, India
Manager Punit Singh Negi , speak in Indian and English.
Skype: cspunitnegi

or
For how to exchange data files between your Finance Accounting System and Evershine Cloud Accounting Information System, please send an email to HQ4bom@evershinecpa.com
LinkedIn address:Dale Chen

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(version: 2022/03)

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