Don’t force industry to pay wages during COVID-19 lockdown
Karnataka AAR ruling: Subletting, leasing under GST ambit
Delhi : The Authority on Advance Rulings (AAR), Karnataka has ruled that GST is applicable on residential accommodation sublet by a tenant, a ruling that experts said could open a Pandora’s box of litigations. In a case involving about 42 single rooms having been sublet by a tenant to students for periods ranging between three months to 11 months, AAR noted that the property given out for sub-renting matched that of a hotel – rooms with attached bathrooms – “which can by no imagination be termed as residential dwelling”, or a house.
Currency in circulation continues to remain high amid Covid-19 lockdown
Indians continued to hoard cash as the nation underwent a lockdown, the data released by the Reserve Bank of India (RBI) showed. Currency in circulation in the fortnight ended April 10 stood at Rs 49,554.30 crore. In the fortnight ended March 27, it was Rs 31,575 crore.The currency in circulation rose to a 29-month high of Rs 54,849.15 crore in the fortnight ended March 13.
Facebook-Reliance Jio USD 5.7 billion (Rs 43,574 crore) deal: Facebook has agreed to buy a 9.99% equity stake in Mukesh Ambani’s Reliance Jio, with an eye on a innumerous small businesses and potentially the largest digital customer base of 1.3 billion users.
China cries foul over India’s FDI rule rejig; invokes WTO principles, G20 declaration
Days after the DPIIT amended the FDI policy to keep an eye on any opportunistic takeovers of Indian companies by investors from countries that share a land border with India, China today termed the move as against WTO’s rules.
Over 10.2 lakh Refunds worth Rs 4,250 crore issued in a week by CBDT to help taxpayers in CVOID-19 pandemic situation https://content.pib.iostechtools.com/1614744/web.html
New Coronavirus Lockdown Guidelines Released: Check full list of relaxations, lockdown rules by MHA
PM Modi had thanked his countrymen for showing strength, determination and spirit to fight the Coronavirus and ultimately it has helped the country to avert the mayhem the Covid-19 pandemic could have caused otherwise.
GST paid for cancelled future events, unreceived goods can be claimed via credit note: CBIC clarifies
Employer is liable to deduct tax as per Sec. 115BAC only after receiving intimation from employee
The CBDT has clarified that eligible employees, who are intending to opt for concessional tax regime under section 115BAC, may intimate his employer about it so that employer will compute total income and TDS thereon in accordance with the provisions. If no such intimation is made, employer shall make TDS without considering provisions of Section 115BAC.
The intimation by employee would not amount to exercising option and the employee shall be required to do so along with the return to be furnished under sub-section (1) of section 139 of the Act for that previous year.
Thus, option at the time of filing of return of income under sub-section (1) of section 139 of the Act could be different from the intimation made by such employee to the employer for that previous year.
CBIC asks tax officers not to seek physical submission of documents for clearing refund dues
Delhi : The CBIC has asked its field officers to avoid asking for physical submission of documents from entities who are claiming GST and customs refunds. The Central Board of Indirect Taxes and Customs (CBIC) is running a ‘Special Refund and Drawback Disposal Drive’ this month to clear Rs 18,000 crore worth pending refunds. In a letter to Principle Chief Commissioners, the CBIC has said that for facilitation of taxpayers, all communication by field offices must be done using official email IDs.
Department of Commerce has Provided a number of Relaxations / Extensions of various Compliance Deadlines etc. to address Corona Pandemic Related Hardships of Exporters : https://content.pib.iostechtools.com/1613365/web.html
Income Tax Exemption: Employees donating to PM-CARES fund via employers to get Section 80G benefit
Delhi : The Central Board of Direct Taxes (CBDT) on Friday clarified that an employee making a donation to the PM-CARES fund through the employer can claim income tax deduction under Section 80G on the basis of Form 16 issued by the employer. Form 16 is a certificate issued by employers to employees detailing the tax deducted at sources (TDS). The board said employers would mention the donation amount against employees in their respective Form 16. The TDS certificate would be considered as a conclusive evidence of donation and tax deduction under the relevant section would be allowed to these employees. The clarification came as the employees, in many cases, have donated a portion of their salaries the the fund through their employers. “However, in all such cases, where actual donation is made by employees, the consolidated donation receipt is issued in name of the employer, as it goes into the fund through the employer’s account,” Shailesh Kumar, director at Nangia Andersen Consulting, said.
Government exempts customs duty, health cess on essential medical goods
Delhi : In view of the growing demand for ventilators, face masks & surgical masks, PPEs and covid test kits, the central government today decided to grant exemptions from basic customs duty and health cess on the import of these goods. This was done considering the escalating demand for medical goods as India enters a crucial phase in its covid-fight.
RBI
GST paid for cancelled future events, unreceived goods can be claimed via credit note: CBIC clarifies
Department of Commerce has Provided a number of Relaxations / Extensions of various Compliance Deadlines etc. to address Corona Pandemic Related Hardships of Exporters : https://content.pib.iostechtools.com/1613365/web.html
Income Tax Exemption: Employees donating to PM-CARES fund via employers to get Section 80G benefit
Delhi : The Central Board of Direct Taxes (CBDT) on Friday clarified that an employee making a donation to the PM-CARES fund through the employer can claim income tax deduction under Section 80G on the basis of Form 16 issued by the employer. Form 16 is a certificate issued by employers to employees detailing the tax deducted at sources (TDS). The board said employers would mention the donation amount against employees in their respective Form 16. The TDS certificate would be considered as a conclusive evidence of donation and tax deduction under the relevant section would be allowed to these employees. The clarification came as the employees, in many cases, have donated a portion of their salaries the the fund through their employers. “However, in all such cases, where actual donation is made by employees, the consolidated donation receipt is issued in name of the employer, as it goes into the fund through the employer’s account,” Shailesh Kumar, director at Nangia Andersen Consulting, said.
Govt to give income tax refunds up to Rs 5 lakh immediately due to coronavirus impact
The Income Tax Department, on its official Twitter handle, announced that it will issue all pending income tax refunds up to Rs 5 lakh immediately to individuals and business entities. The decision has come due to the coronavirus lockdown in the country. According to press note of the department, this decision would benefit around 14 lakh taxpayers.
The decision will come as relief for individuals who are facing cash crunch due to pay cuts or job loss or waiting for their salaries or wages to be released by their employers. According to the announcement made, “In context of COVID-19 situation and to grant immediate relief to taxpayers, GOI has decided to issue all pending income tax refunds up to Rs 5 lakh & GST custom refunds with immediate effect.”
MCA allows companies to hold Extraordinary General Meetings (EGMs) through VC or OAVM complemented with e-Voting facility/simplified voting through registered emails : https://content.pib.iostechtools.com/1612341/web.html
GST ease amid Covid 19: E-way bill validity extended, 10% ITC deferred
Delhi : The government extended the validity of e-way bills till April 30, that were set to expire between March 20 and April 15, giving a big relief to industry grappling with issues of supplies and goods stuck in transit amid the nationwide lockdown due to Covid 19. “Where an e-way bill has been generated and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020,” the finance ministry said in a notification Friday. The finance ministry has also deferred the application of 10% restriction for availing input tax credit for February, to August, 2020 and rolling over the cumulative applicability to the month of September, 2020, giving the industry a seven-month window that will ease out cash flows, experts said.
CBIC allows traders to import, export goods without furnishing bonds
Delhi : The Central Board of Indirect Taxes and Customs (CBIC) has allowed traders to submit an undertaking instead of furnishing bonds – required by customs for assessment and clearing of goods – in order to prevent delays or disruption in exports or imports caused by Covid 19 pandemic. The decision was taken after field formations flagged the unavailability of notarised stamp papers for furnishing the bonds that was being faced by importers, exporters and their authorised custom brokers, during the lockdown period. The Board will review the order after April 14, when the nationwide lockdown ends. “In light of unprecedented situation caused due to Covid 19 pandemic, Board has decided to take certain measures for a temporary period, with a view to expedite customs clearance of goods and for maintaining balance between customs control and facilitation of legitimate trade,” CBIC said in a notice Friday, giving relaxation of furnishing bonds till April 30. “In the period up to April 30, customs field formations may accept requests for submission of an undertaking from the importer/ exporter in lieu of a bond,” it added.
Export of Goods and Services- Realisation and Repatriation of Export Proceeds-Relaxation
The Government of India as well as the Reserve Bank has been receiving representations from Exporters Trade bodies to extend the period of realisation of export proceeds in view of the outbreak of pandemic COVID- 19. It has, therefore, been decided, in consultation with Government of India, to increase the present period of realization and repatriation to India of the amount representing the full export value of goods or software or services exported, from nine months to fifteen months from the date of export, for the exports made up to or on July 31, 2020.The provisions in regard to period of realization and repatriation to India of the full export value of goods exported to warehouses established outside India remain unchanged.
Clarification on Refund related issues
The Central Board of Indirect Taxes & Customs vide Circular No.135/05/2020-GST ,dated 31st March, 2020 has issued clarification in respect of some of the issues relating to GST refunds. A summary of the same is reproduced below:-
It has been decided to remove the restriction on clubbing of tax periods across Financial Years. Accordingly, circular No. 125/44/2019-GST dated 18.11.2019 stands modified to that extent i.e. the restriction on bunching of refund claims across financial years shall not apply. Therefore, bunching of financial year would be allowed.
It has been clarified that refund of accumulated ITC under clause (ii) of sub-section (3) of section 54 of the CGST Act would not be applicable in cases where the input and the output supplies are the same.
That is, refund of unutilized ITC is not admissible on account of inverted duty structure where the inversion is due to change in the GST rate on the same goods.
Any refund of tax paid on supplies other than zero rated supplies will now be admissible proportionately in the respective original mode of payment i.e. in cases of refund, where the tax to be refunded has been paid by debiting both electronic cash and credit ledgers (other than the refund of tax paid on zero-rated supplies or deemed export), the refund to be paid in cash and credit shall be calculated in the same proportion in which the cash and credit ledger has been debited for discharging the total tax liability for the relevant period for which application for refund has been filed. Such amount, shall be accordingly paid by issuance of order in FORM GST RFD-06 for amount refundable in cash and FORM GST PMT-03 to re-credit the amount attributable to credit as ITC in the electronic credit ledger.
It has been decided that the refund of accumulated ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant. Accordingly, para 36 of the circular No. 125/44/2019-GST, dated 18.11.2019 stands modified to that extent.
It has been recommended that a column relating to HSN/SAC Code should be added in the statement of invoices relating to inward supply as provided in Annexure–B of the circular No. 125/44/2019- GST dated 18.11.2019 so as to easily identify between the supplies of goods and services.
The issue has been examined and considering that such a distinction is important in view of the provisions relating to refund where refund of credit on Capital goods and/or services is not permissible in certain cases, it has been decided to amend the said statement. Accordingly, Annexure-B of the circular No. 125/44/2019-GST, dated 18.11.2019 stands modified to that extent.
A suitably modified statement format has been prescribed for applicants to upload the details of invoices reflecting in their FORM GSTR-2A. The applicant is, in addition to details already prescribed, now required to mention HSN/SAC code which is mentioned on the inward invoices. In cases where supplier is not mandated to mention HSN/SAC code on invoice, the applicant need not mention HSN/SAC code in respect of such an inward supply.
[Circular No.135/05/2020-GST ,dated 31st March, 2020]
MCA- Much awaited Scheme for filing of annual returns
MCA scheme giving one time opportunity to complete pending compliances ( including Annual complainces ) without additional fees and penalty.
4.MCA has waived off late fees on form and come up with a Companies Fresh Start Scheme 2020
This is the biggest confusion in the minds of the taxpayers. Following points clarifies some of the issues:
1) FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances.
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 for the deduction for the FY 2019-20.
6) Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June.
7) Housing loan interest is eligible for deduction on accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However Installments due upto 31st March can be claimed as deduction ever if paid till 30th June.
7 key income tax changes effective April 1, 2020: All about FY, PPF, tax savings you need to know
Delhi : Even while the country is in a complete lockdown to control the spread of Coronavirus in the country, the new financial year (FY) 2020-21 has sneaked in from April 1. For income tax purpose, while the FY 2020-21 has begun on April 1 and will end on March 31, 2021, the relevant assessment year (AY) will be AY 2021-22. All income earned during the FY is assessed in the AY and income tax return for FY 2020-21 is accordingly filed in the AY 2021-22. As a taxpayer and even if one is not a taxpayer, there have been several important changes that one needs to be aware of. Here are a few of those key income tax changes effective April 1, 2020.
RBI Moratorium on EMI: FREQUENTLY ASKED QUESTIONS :
https://content.pib.iostechtools.com/1609820/web.html
Tax dept asks officers working from home to chase large taxpayers for dues
Delhi : A three-month extension in deadlines for tax payment and filing of returns notwithstanding, the Income-Tax Department has asked field formations to contact large taxpayers over phone or email to follow up on pending collections. Rakesh Gupta, Commissioner of Income Tax (Coordination & Systems), Central Board of Direct Tax (CBDT), last week asked field formations to submit a daily report on follow-ups on pending tax collections from large taxpayers.
Company Law Fresh Start Scheme- 2020
This Scheme Shall be start from 01st April, 2020 and end on 30th September, 2020.
FAQ’s
This CFSS is completely applicable for completion of earlier pending Annual Filings without additional fees.
This scheme shall be applicable on All The Forms Except:
MCA shall not charge any additional fees in the given time period of 6 Months. Only Normal Fees of the forms shall be required to pay by the Companies.
Defaulting Company means a Company defined under Companies Act, 2013 and
Companies shall avail this scheme w.e.f. 1st April, 2020 and can file all pending forms till 30th September, 2020
Companies are allowed to file all the pending forms with ROC irrespective of any cut off date.
Yes, This scheme allow to file DIR-3 KYC without additional fees if any one is pending.
Scheme shall be applicable only on the forms of Company. Definition of Company doesn’t include Foreign Company.
If Strike off Company wants to take benefit of CFSS then such company first have to revive such company from NCLT and then can apply for CFSS for pending filing of forms. However more clarity is needed for same from the department
During the period of CFSS, company can file MGT-14 without any additional fees and without any condonation, only with normal fees.
This form is required to file by Company after closure of Scheme.
Dormant Company can take benefit of CFSS. Bur for that purpose first of all Dormant company have to file form with roc for change in status from dormant to Active.
Yes can take benefit of Scheme.
Yes even active form is also eligible for this scheme. Active form can be file without additional fees under this scheme.
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