Arjuna (Fictional Character): Krishna, as Diwali's festivities bring a symphony of lights and sounds with firecrackers, every burst reminds us of the various compliances and surprises in the financial laws. Can you enlighten us on how the sparkling provisions of the Companies Act, GST and Income Tax reflect the diverse array of Diwali firecrackers, with each having its distinct influence on taxpayers lives?
Krishna (Fictional Character): Arjuna, just as every firecracker has its moment to shine and startle, so do the provisions of Companies Act, GST and Income Tax laws in the life of a taxpayer. Like the multihued fireworks that bedeck the night sky, the complexities of these laws spread across the expanse of our financial responsibilities. From the loud boom of compliance deadlines to the whizzing surprise audits, each aspect of tax law can be felt like the distinct firecrackers of Diwali. They are a reminder that while celebrating the festival of lights, one must also illuminate the corners of fiscal duties with equal enthusiasm and awareness.
Arjuna (Fictional Character): Krishna, How can we draw parallels between the vivid firecrackers and the intricate provisions of Law?
Krishna (Fictional Character): Arjuna, Let’s illuminate this festive season with the radiance of tax compliance and find joy in the orderly world of taxation as we do in the orderly burst of fireworks
1. Sutli Bomb: This can be likened to the recent amendment in the Companies Act, where non-small private limited companies are now mandated to dematerialize their shares by the 30th of September, 2024.
Similarly, a new provision in Income tax which states that if the aadhar and PAN are not linked, then TDS has to be deducted at rate of 20%, the effect of this is that the person who is deducing tax at normal rates, will have a default while filing TDS/TCS Return.
2. Rocket- A rocket like provision is discontinuance of Rs 2000/- notes from circulation. If these notes were deposited by the taxpayer, then where will this rocket will go and burst, no one knows.
3. Butterfly: Butterfly is such a firework which when lit-up, we cannot take guarantee where it will go. Similarly the provision of Audit Trail implemented for companies from 01st April 2024, the taxpayers are uncertain as to how will this provision take shape.
4. Fuljhadi: Fuljhadi firework resembles joy and happiness and prosperity, this is represented by GST Amnesty Scheme, which has brought happiness among taxpayers.
5. Anaar (Fountain): The Anaar may seem modest at first, but once ignited, its sparks scatter in all directions, creating a spectacular display. Similarly, the Income Tax and GST audits, though appearing straightforward, spread out into an extensive review of the entire financial year's transactions, demanding meticulous scrutiny, much like the many-hued sparks of an Anaar.
6. Bhuichakri (Ground Spinner): The Bhuichakkar spins dynamically in place, akin to the cyclical task of reconciling GST and Income Tax returns with the books. It's a perpetual motion that requires constant attention to detail to ensure that everything aligns perfectly, much like a well-placed Chakri.
5. Lad: A string of Lad crackers ensures that if one goes off, the rest follow suit. In the realm of GST, if a seller fails to upload sales in GSTR1, the chain reaction affects the recipient's GSTR2B, potentially denying them the ITC. Similarly in Income tax, reconciliation of 26AS and AIS with books of accounts is also interlinked. The interlinking of compliance is akin to the interconnected crackers of a Lad.
6. Fuska Fataka: The Fuska Fataka, though seemingly formidable, ends up being an anticlimax with no sound to show for it. This can be compared to the filing of GSTR 9 and 9C, which may seem very important document, but leaves the most important part of availing ITC. Taxpayer has to claim ITC only through returns. Also GST Department while issuing notices, does not take into consideration the figures reported in GSTR9 and 9C, leaving taxpayers with little to defend themselves with, just like the silent Fuska Fataka.
Arjuna (Fictional Character): Krishna, with such striking resemblances, what wisdom should the taxpayers take away from the jubilant chaos of Diwali crackers?
Krishna (Fictional Character): Arjuna, let the festival of lights be a reminder that compliance in taxation, much like handling firecrackers, requires respect for the rules and careful execution. Just as we responsibly enjoy the bright sparks and joyous bursts of Diwali, let us embrace the discipline of tax compliance with equal fervor. As the glow of Diwali fills our homes, may the light of compliance ensure peace and prosperity in our financial affairs. After all, a well-kept ledger is like a well-lit sky of Diwali—both spectacular and orderly, a sign of prosperity and wisdom.
May the glow of Diwali light up your path to compliance, and the booms of crackers echo the triumphs of your financial prudence. Wishing everyone a safe, prosperous, and compliant Diwali!
CAclubindia
