86 cash - An Overview
86 cash - An Overview
Blog Article
Even though it might seem to be Rule 86B is usually to seriously dampen the ease of executing organization, the intent powering the notification with the explained provision shouldn't be obscured. It's to capture keep of folks issuing fake invoices and so are ‘fly by night time’ operators.
Acquiring mentioned this, it might be argued in such a predicament, there was no avoidance of any tax liability. That's why, there isn't a total payable to the government. Thereby, there can not be any query of any tax legal responsibility or desire or penalty payable to the contravention of this provision.
Alternate investments have increased charges than common investments they usually might also be highly leveraged and have interaction in speculative financial investment tactics, which could Amplify the likely for financial commitment loss or attain and should not be considered a whole financial investment method. The value on the financial commitment may well drop as well as increase and investors could get again below they invested.
Even though this rule has also brought genuine taxpayers below ambit rendering it inconvenient for them, the motto of The federal government is to stop phony invoicing and inevitably suppress tax evasion.
As a result of this article, the author purports to investigate the provisions and its simple implications by answering the mostly questioned inquiries associated with this rule.
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Inverted tax composition provide :- Where tax amount on input is increased when compared to the tax charge on output ensuing into accumulation of ITC, Hence refund is authorized and rule 86B isn't utilized.
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Ans. It mandates cash payment of 1% on the output tax legal responsibility on a regular basis to the registered folks who are lined by 86 cash this rule. This payment of legal responsibility in cash would be necessary no matter The actual fact that there is an existing stability during the electronic credit ledger.
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