Comparison between VAT & GST

Very simple way to understand

VAT - is state specific limit 40 L

GST - GST Registration limit 20 L +

VAT - TIN based Registration

GST - PAN based Registration

VAT - Interstate transactions (CST) no Input Tax Credit

GST - Seamless flow of Input Tax Credit

VAT - Declaration Forms like C, H etc are applicable

GST - No Declaration Forms

VAT - Returns by 20th of succeeding month

GST - Returns by 20th of succeeding month but in a phased manner (Sales by 10th, Purchases by 15th and payment by 20th)

VAT - There is no specific mode of payment

GST - Mode of payment if exceeds 10,000 by e-payment, less than is optional

VAT - Immediately after filling avail Input Tax Credit

GST - Once the Supplier pay tax then only seller gets ITC

VAT - No rating for the Business

GST - GST rating based on timely filling of returns & payments.

For more details, stay connected at mrtandassociates@gmail.com

Regards,

CA Rahul Gupta

(Practicing Chartered Accountants)

M R T & Associates, Chartered Accountants

PAN DEACTIVATION BY INCOME TAX DEPARTMENT

PAN DEACTIVATION BY INCOME TAX DEPARTMENT

The income tax department in its latest drive has started deactivating PAN of all income tax assesses who were allotted more than one PAN at anytime in the past.

Unfortunately, in many cases the PAN being deactivated is the PAN on which the assessees are filing their income tax returns. Once, the PAN is deactivated by the income tax department, the income tax e-filing login of the assessee also gets blocked and the PAN holder is not able to do anything on the Income Tax e-filing portal such as filing of Income Tax Returns, view intimations and respond electronically to various communications by the ITD.

Ques: What should be done in case the PAN is deactivated?

Ans: In case your Permanent Account Number (PAN) is deactivated then you need to do the following:

1) You need to write a letter to your jurisdictional AO in the Income Tax Department for activation of your PAN.

2) Following documents need to be attached to the letter for activation of PAN:

# Indemnity Bond in favour of the Income Tax Department.

# Copy of PAN on which the PAN holder is regularly filing the Income Tax Return.

# Copy of last three years Income Tax Returns filed on the PAN deactivated.

# It takes atleast 10-15 days for the Income Tax Department for re-activating the PAN after submission of letter to ITD.

Ques: I have received online intimation/mail regarding cash deposits during demonetization, how do I respond if my PAN is deactivated and I cannot login to the e-filing portal?

Ans: If you have received any intimation from the ITD for which an online response needs to be filed but your e-filing login is blocked then you need to approach your Jurisdictional AO for activation of your PAN ASAP as stated in the previous question.

Since, the re-activation of PAN by ITD takes some time therefore you can respond to the intimation manually by filing a response/letter to the jurisdictional AO.

Although, you might have filed the offline/manual response to the AO but you still need to ensure that you file the online response to the intimation as soon as your PAN is re-activated.

For more details, stay connected with us @ mrtandassociates@gmail.com

Regards,
CA Rahul Gupta
(Practicing Chartered Accountants)
M R T & Associates, Chartered Accountants