A Good News For NRI(s), About Taxation : By AAR.



You work hard day and night to earn good enough to attain a healthy and comfortable life style for yourself and your family. As being part of civilized society you also pay part of your income to government as Taxes. Well most of people think why even we pay taxes to government, which sounds pretty fair and natural question that arise in our head. Most people found that only reason to pay taxes is to avoid the legal action that can be taken against you for non-payment of taxes; But this is not the only reason to pay tax. Actually taxes are very important for the survival and growth of any nation. All the facilities that government provides, like education, health, infrastructure, other developments and especially defense of our nation rely on these taxes heavily. So Taxes are very important.

Now comes an another question how much and what taxes are to be called fair one? and which sound as the unfair ? Well we are in bit of luck that we live in free and democratic nation and our governments keep working on revising the taxation system and process time to time. And one such relief is provided to Non- Residential Indians ( NRIs) by AAR , so that they can save their money to be charged by double tax.

What is AAR ?
Before going in details about the new relief to NRIs let us understand what is AAR and its role in world of taxes. AAR stands for The Authority for Advance Rulings is a government body which takes important decisions regarding tax matters. It has responsibilities to provide the facilities of ascertaining the income tax liabilities of Non- Residential Indians (NRIs) and other special categories of residents. This body is run and managed by the chairman who is retired judge of supreme court and two other officials who are of rank of Additional Secretary to the govt. of India.

A Relief to NRIs by AAR.
According to the new ruling by AAR, the salary income of non- residents for the service they rendered overseas shouldn’t be taxed in India even when paid into bank account in India. Well its surely a relief to such NRIs as it save them from paying double tax on same income one in abroad and one in India. Let’s take a look on important points of this ruling:

  • As per the domestic tax law, which states that, ‘ tax could be charge on any income once, means and income which is been charged with tax already cannot be charged with tax again.’ So the NRIs who render their service overseas are being taxed on income on their respective country so their salary won’t be taxable in India.
  • Indian Residents are liable to pay tax on their global income irrespective of that where it is earned. And in case of NRIs the only income which they acquires here ( means in domestic region) like rent from the property in India or interests on investments/Bank savings is liable to taxes in India.
  • According to the India-US tax treaty, it’s the place where the employee perform his/her duties and not where the income is received. AAR also held that where there is no Tax- treaty, this ruling come in role as per the Domestic Tax Laws.

Well this is certainly a big relief to many NRIs, who move out to look for better opportunities and provide a better lifestyle for their family and themselves. For More detail about taxation and other accounting /management help contact SP Chopra & Co. @spchopra.com.

E-Way Bill: The First Step of Revolution in The Trade System

“Mom: ‘Could you bring 10kg of rice from the nearby grocery store.’ Son: ‘Of course mom.’ (Son walks to store and complete the order by mom). ” Well wish all transfer goods could be that simple. Transfer of any good (mainly for trade purpose) from one place to another is not just as simple as it sounds. It’s not only the size of consignment /goods or time which is the main concern; It’s actually documentation and legalities which brings the major concern for the traders. Timely and hassle free transaction of goods is what all require in today’s Trade World. E- Way Bill, is one of the solution or you can say relief for trade world.

What is E – Way Bill?
As you get a simple hint by its name itself, which is Electronic Way Bill. So for every transfer of goods of value more than Rs.50,000, a registered user can easily generate E-Way Bill online by Web portal or Mobile Application. It actually came into effect on 1st April 2018, mandated by govt. in terms of section 68 of the Goods and Services Tax (GST) Act.

How to Generate E- Way Bill?
If you are familiar with internet, computer and Smart phone, then E- Way Bill is no Big Deal you can get it with tap of your fingers online. All you have to do is register yourself on Web Portal which can be done with few simple steps.

  • Visit E-Way Bill Portal.
  • Go to Registration >> Click E- Way Bill Registration.
  • Enter GSTIN
  • Generate an OTP ( on your registered Mobile No. )
  • Create a new User ID and Password.

(Note: This is for GST registered user)

For Unregistered (GST) Transporter: They will be issued a Transporter ID.
When Registered (GST) receiver receive Goods from Unregistered Supplier, then receiver have to generate the E- Way Bill.

Steps to Generate E- Way Bill:

  • Login to E- Way bill system
  • Under E-Way Bill >> Click ‘Generate New’.
  • Fill Up the Form and required Details.
  • Submit.

You can also Print E- Way Bill.

Advantages and Disadvantages of E- Way Bill:

Less Documentation: The biggest Advantage of E- Way Bill is that it reduces the Documentation procedure and made it way easy as you can generate it sitting at your home or office.

Cost Efficient: It will reduce the logistic cost and tax avoidance also get reduced.

Will enhances the efficiency of Transportation: As the load of documentation is reduce, which means less paper work and hassle free movements of transport and thus will make it efficient and speedy.
It is Very user friendly, via use of web portal or mobile app; Dealers can self download it anywhere at anyplace easily.

Lack Of Internet Connectivity: Internet connectivity is still not perfectly established in many part of India Properly so this is big concern.

Different Opinion: Different states have different opinion about it and many want to implement their own system.

Glitches in Generating Bills: As it’s still going under changes and modifications so its facing some technical glitches sometime.

E- Way Bill is a New Revolution in the world of Indian Trade System. We will keep learning about it and it will keep learning and getting better as the time progress. For any further Details Contact SP Chopra & Co. is one stop solution for all your business problems so feel free to contact them and run your business with smoothness and smile.