Business with turnover of over Rs 100 crore to generate e-invoice for B2B deals from January 2021 – Economic Times
CBIC clarifies on ITC-restriction prescribed under Rule 36(4) cumulatively for February to August
Values pertaining to FY 2017-18 not to be included in Annual-Return of FY 2018-19
Guidelines issued by CBDT on 29.09.2020 on TCS - 206C(1H) of the Income Tax Act, 1961
FAQ on TCS under section 206C
Summary of notifications issued under GST by CBIC on 21.09.2020
TCS on Sale of ALL Goods Section 206C(1H) Introduction:The changes brought about in the Finance Bill, 2020, introduction of Section 206C(1H) is astep to track usage of unaccounted money. The Section requires the seller to collect tax atsource on sale of certain goods, details of which shall act as data centres for the Governmentto track high value transactions and create audit trail of buyers procuring goods withoutdisclosure in their books of accounts. Kindly note provision of Section Section 206C(1H) areapplicable from 01.10.2020.
What are the changes?No perpetual registration from now on for all trusts, all the trust must get renewedevery 5 Years, meaning thereby every trust registered with Income Tax shouldget their approvals renewed and there is no lifetime approvals.Why this change?• To curb the malpractices that have been noticed in the functioning of sometrusts.
Return / Form Original Date/NormsNew Dates/ NormsIncome Tax Return for the FY 2018-19 31.3.2020 30.06.2020Aadhar – Pan Linking 31.3.2020 30.06.2020Vivad Se Viswas Scheme 31.3.2020 WithoutAdditionalPayments30.06.2020 – 10 %Additional Payment30.06.2020Delayed Payments of Advance tax, SelfAssessment Tax, Regular Tax, TDS, TCS,Equalisation Levy, STT, CTTInterest at 12% and18%Reduced InterestRate of 9% for thePayment MadeBetween March 20 –June 30 2020.Due Dates for Various Matters Such asNotice, Intimation, Filing of AppealExpiring BetweenMarch 20, 2020 toJune 29, 2020June 30, 2020
DETERMINATION OF NATURE OF SUPPLY Section 7(1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in–– (a) two different States; (b) two different Union territories; or (c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce
The idea and objective of implementing GST was to avoid cascading effect and claim input tax credit without any restrictions. The input tax credits available as on 30th June 2017 was allowed to be carried forward as credits under GST amid certain restrictions. Rule 117 of the CGST rules prescribes time limit to for transitioning of credit. Delhi High Court recently passed a landmark judgement in this matter.
Summary of the Notifications issued by CBIC on 03rd April 2020 1Option to opt for Composition scheme (Filing of CMP 08)Due date extended to 30th June, 20202Filing of form ITC 03Due date extended to 31st July, 20203Proviso added to Rule 36(4) CGST Rules, 2017 – Restriction of 10% to claim ITCFor the periods February, March, April, May, June, July and August 2020 – cumulative ITC restriction will be takenand the return in GSTR 3B for the tax period of September 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months.
Who can generate E- Way bill? Every registered person who causes movement of goods of consignment value exceeding Rs. 50,000/- In relation to supplyOther than supplyInward supply from unregistered person It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill (primary liability to raise E-way bill is on consignor. However, if consignor fails to generate the e-way bill, it may be generated by transporter also) In case of supply of goods by an unregistered person to registered person, the liability to generate e-way bill is on the recipient.
A company or any other entity who have registered themselves under MSME and facing problems to recover long pending dues from their customers may approach the MSME department to take action against them. Following process shall be followed by such MSMEs entity: Register your company/LLP/Partnership etc. as an MSME and obtain a MSME certificate [Udyog Aadhaar Number (UAN)].Keep record of all formal purchase orders from customers and delivery proofs for all orders.On all your invoices, mention, “your entity name and UAN” along with a note that “Delayed payments beyond 45 days attracts interest at a rate three times of the bank rate notified by RBI, compounded with Monthly interest”.
Following points will clarify some of the issues:1) FY 2019-20 is not at all extended till 30th June, only the date is extended for somecompliances.2) Belated returns or Revised returns for the FY 2018-19 can be filed till 30th June.3) In the FY 2019-20, income is taxable till 31st March only and not upto 30th June, i.e.for taxability of income financial year is considered till 31st March only.4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.5) New LIC, Mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible forthe deduction for the FY 2019-20.
Free Samples and giftsThe free samples or gifts given for example in pharma industry without any consideration will not be treated as “supply” under GST (unless it is covered under Schedule 1). Input tax credit with respect to such free samples or gifts should be reversed.
Atmanirbhar - Self Reliant India Movement - Part 2. Highlights of the announcements on 14-May 2020 by Finance Minister Mrs.Nirmala Sitaraman.
Atmanirbhar - Self Reliant India Movement - Part 5. Highlights of the announcements on 17-May 2020 by Finance Minister Mrs.Nirmala Sitaraman.
Atmanirbhar - Self Reliant India Movement - Part 4. Highlights of the announcements on 16-May 2020 by Finance Minister Mrs.Nirmala Sitaraman.
Atmanirbhar - Self Reliant India Movement - Highlights of the announcements on 13-May 2020 by Finance Minister Mrs.Nirmala Sitaraman.
Atmanirbhar - Self Reliant India Movement - Part 3. Highlights of the announcements on 15-May 2020 by Finance Minister Mrs.Nirmala Sitaraman.
Govt. enacts the CGST (Amendment) Act 2018, the IGST (Amendment) Act 2018, the UTGST (Amendment) Act 2018 and the GST (Compensation to States) Amendment Act 2018, by publication in Official Gazette; Acts received Presidential assent on August 29, 2018.
Input Tax Credit CA Chandrasekhar Kutty The concept of input credit is the core of GST and there is seamless credits available meaning thereby whether you are buying inter state or intra state you can set offyour output tax with the input tax credit available. Similarly tax paid for goods can be set off against the output tax payable on services. This is a major shift in the GST era where all the inputs used for the business can be used to set off the output tax of the same business, though there are few exceptions to that. Before understanding the concept it is important for us to understand few definitions under GST law: What is Input? Section 2(59) of the CGST Act defines it as “Goods other than capital…