GOODS AND SERVICE TAX
For a nation’s economic growth, tax collecting is important. To pay for public services like infrastructure, social welfare programs, healthcare, and education, the government requires money. One of the main ways the government makes money is through income tax. Tax money is utilized to finance a range of development initiatives as well as vital public services like social welfare programs, infrastructure, healthcare, and education.
Encouraging compliance with tax laws and regulations is a critical function of tax authorities. Section 44AB, which requires a tax audit of the accounts of a specific group of people operating a business or practicing a profession, was added by the government to the Income Tax Act of 1961.
An objective, methodical examination of a company’s financial records and tax liability by a certified chartered accountant (CA) is known as a tax audit. It is carried out to guarantee correct tax liability discharge and adherence to the provisions of the Income Tax Act, 1961. The rules’ requirements place a great deal of obligation on the tax auditor to conduct the audit and provide the audit report that includes the specified details.
In India, the central government and the state governments both impose GST on the supply of goods and services, making it a dual GST system. Making recommendations on a range of GST-related topics, including as rates, exemptions, and thresholds, is the responsibility of the GST council, a constitutional authority. If a supplier’s taxable value of supply exceeds the threshold limit under the GST scheme, he must register for GST in each state or union territory where he supplies goods or services. After registering for GST, one must make sure that all compliances are met and abide by all laws and provisions outlined in the GST Act.
There are several rates at which GST is imposed, including 0%, 5%, 12%, 18%, and 28%. Books, fresh produce, and some medical treatments are among the products and services that are not subject to GST. Furthermore, certain luxury goods and sin goods, such cigarettes and tobacco products, are subject to a compensating cess, while rough precious and semi-precious stones are subject to a special rate of 0.25%.
