GST is an Indirect Tax also called Consumption Tax which has replaced many Indirect Taxes in India. GST is an Indirect Tax levied on the supply of goods and services. Under the GST regime, the tax will be levied at every point of sale. In case of intra-state sales, Central GST and State GST will be charged. Inter-state sales will be chargeable to Integrated GST. The tax came into effect from July 1, 2017. GST replaced the existing multiple cascading laws of 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.
The main object of the Act is to regulate external trade and payment and promote the orderly development and maintenance of foreign exchange market in India. The Act is applicable to whole of India, citizens of India outside India; and to all the companies and organisations, associate Branches or subsidiaries, outside India but owned or controlled by a person, who is a resident of India. This Act also applies to the companies or bodies corporate, registered or incorporated in India. Foreign investment in India is prohibited in sectors like Lottery Business, Gambling and Betting including casinos etc., Chit funds, Nidhi company, Trading in Transferable Development Rights (TDRs), Real Estate Business or Construction of Farm Houses, Manufacturing of Cigars, cheroots, cigarillos, and cigarettes, of tobacco or of tobacco substitutes.
The Act was enacted by the Parliament of India and governs Indian competition law. It replaced “The Monopolies and Restrictive Trade Practices Act, 1969”. Under this legislation, the Competition Commission of India was established to prevent the activities that have an adverse effect on competition in India. This act extends to whole of India except the State of Jammu and Kashmir. It is a tool to implement and enforce competition policy and to prevent and punish anti-competitive business practices by firms and unnecessary Government interference in the market. Competition laws is equally applicable on written as well as oral agreement, arrangements between the enterprises or persons. This is an act to establish a commission, protect the interest of the consumers and ensure freedom of trade in markets in India.
STPI is an autonomous society under Ministry of Electronics and Information Technology, Govt. of India has been set up with distinct focus to boost up Software export from the country. STPI is constantly works with an objective to implement STP/EHTP, a scheme formulated by Govt. of India, set up and manage infrastructural facilities. Companies exporting software in India have to get themselves registered with STPI. The details of the software exports have to be reported to the STPI periodically.
The Reserve Bank of India conducts audits regularly of Banks and NBFCs to verify if the directors of RBI have been followed with respect to acceptance of deposits from the public, the Net Owned Fund requirements, the Capital adequacy ratio, Investment grade of deposits, asset related risks, liquid asset requirements etc. It is prudent to get RBI related audits done before the actual RBI audit to ensure that the licensing requirements are taken care off.
Under VAT system there is no concept of compulsory assessment. VAT presupposes that the dealers are honest, however scrutiny is done only in cases where a doubt arises of under-reporting of a transaction or evasion of tax. VAT assessment has picked up importance in the light of the GST implementation. Since there is an urgency to migrate to GST, VAT authorities have been issuing notices to most VAT dealers to get the assessments done up.
Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. The Income Tax Department examines the return of income for its correctness. In case where a doubt arises of under-reporting of a transaction or evasion of tax, the Income Tax department may call upon for an assessment of the books of accounts.