31st March 2019
CBDT issues clarification on linking of PAN with Aadhaar.
There were reports in media that PANs which are not linked with Aadhaar by 31.03.2019 may be invalidated. Now,the cut-off dt for intimating Aadhaar no & linking PAN with Aadhaar is 30.09.2019, unless specifically exempted
30th March, 2019
Rejection of accounts : Where assessee was maintaining a single set of books of account for two different sources of income, Assessing Officer could not reject books of account for one source while retaining same for other – Shiv & Company v. Income-tax Officer, Ward-1 – [2019] 103 taxmann.com 341 (Ahmedabad – Trib.)
No further extension on last date for transfer of shares held in physical format: SEBI clarifies
House Property Income v/s Business Income
Where assessee company had developed shopping mall and let out same by providing a variety of services, facilities and amenities in mall, it could be found that primary intention of assessee was commercial exploitation of property and where it had derived substantial part of its income by such activity, which constituted its main business, income so derived would be assessed as income from business and not as income from house property. Accordingly, it has to be assessed to tax under head ‘profits and gains of business’ and not under head ‘income from house property’ – Commissioner of Income-tax v. Oberon Edifices & Estates (P.) Ltd. – [2019] 103 taxmann.com 413 (Kerala)
FAILURE TO DEDUCT TAX AT SOURCE
Pendency of appeal, effect of : Where on account of assessee’s failure to deduct tax at source, AO raised demand under section 201 and during pendency of appellate proceedings, he initiated penalty proceedings under section 271C, revenue was to be directed that so long as appeal was pending before Tribunal, revenue authorities should be restrained from passing any order imposing penalty on assessee under sections 271C and 206AA – Uber India Systems (P.) Ltd. v. Joint Commissioner of Income-tax, (TDS) Range-2(3) – [2019] 103 taxmann.com 336 (Bombay)
28th March, 2019
Tax evasion may get more difficult as I-T Dept to use Big Data Analytics from April
Tax evasion is likely to get more difficult if not impossible with the entry of Big Data Analytics into the Income Tax (I-T) Department’s realm of tools to check tax evasion starting April 1.
The Rs 1,000 crore programme named “Project Insight” would track social networking profiles of people and keep a tab on the expenditure patterns through the photographs and videos uploaded on social media.
If the purchases and travel expenses are found to be disproportionate to the declared income of a person, the I-T officials would be informed of the mismatch and actions would follow.
According to informed sources, the I-T Department has given the tax officials access to the software from March 15.
“If you are travelling to a foreign country and posting pictures on social media, or buying a luxury car which is beyond your means as per your returns filed, the I-T Department can use Big Data to analyse them and check the mismatch between your earnings and spendings. The process can easily use the complete trail even for the new tax filer,” said people in the know of things.
“The I-T Department can also prepare a master file containing all the details and key information about individuals and corporates,” they said.
The main objective of the project is to catch the tax evaders and increase the number of people filing returns and paying taxes.
The Insight Project will feature an integrated information management system, which will harness machine learning to help take the right step at the right time.
The software would also collect web pages and documents that could be probed by the I-T Department.
With the usage of Big Data Analytics, India is set to join a league of countries such as Belgium, Canada and Australia which already use Big Data to keep a check on tax evasion.
Since the inception of the technology in Britain in 2010, the system has prevented the loss of around 4.1 billion pound (Rs 36,942 crore) in revenue.
The software would ensure the overall scrutiny of all the returns filed and selection based on numerous small parameters from which the probability of tax evasion is likely to be nil, according to analysts.
27th March, 2019
The RBI has issued directions on ‘Non-resident participation in rupee interest rate derivative markets’ allowing all entities including non-residents to participate or transact in interest rate derivatives market. The directions shall be applicable to Rupee interest rate derivative transaction in India undertaken on recognised stock exchange, Electronic Trading Platforms and Over-the-Counter market. The Directions shall come into force with immediate effect.
26th March 2019
The financial year 2018-19 is about to end, and the new financial year is about to start. Here are some points to note and take necessary action immediately
Some GST Related Points to Note
Amendments/ rectification: One should note that the return for March 2019 is the last chance to amend or rectify mistakes done, or things omitted in GSTR-1 or GSTR 3-B return for FY 17-18.
So, The taxpayers should reconcile their books of accounts and returns uploaded and adjust their differences in March GSTR-3B. Also, if any mistake is made in GSTR-1, like B2C shown as B2B, or wrong GSTIN uploaded, invoices omitted to be uploaded etc. can be amended.
Last chance to Avail pending Input tax credit- The taxpayer should reconcile their Input tax credit as reflected in GSTR 2-A with GSTR 3B filed by them and also books of accounts.
Taxpayers should also take supplier follow up for the invoices not uploaded by them, as ITC cannot be taken by taxpayer if the same is not auto populated in GSTR 2A.
Return ITC-04 in relation to jobwork- Taxpayers should ensure that they have filed ITC-04 for all quarters from July 17 to December 18, giving details of goods sent to jobworker and goods received from jobworker.
TDS returns– TDS deductors should file TDS returns from October 18 to February 19, so that the counterparty can receive TDS credit before filing their last GST 3B of FY 18-19.
TDS credit- Taxpayers should accept the TDS credit as reflected on GST portal on monthly basis so that the amount of TDS deducted can be credited to the cash ledger.
Letter of Undertaking (LUT) – All the exporters who make exports without paying tax under LUT should apply for LUT for FY 19-20.
Opting for Composition Scheme – The taxpayer must also workout whether he wants to convert to Composition scheme (Limit is Rs. 1.5 Cr. Now) from FY 19-20.
Some Income Tax and Other Points to note
In Income tax, 31st March is the last date to file belated return for FY. 17-18.
31st March is the last date for filing Revised returns for FY. 16-17/17-18.
Aadhar-PAN linking is now mandatory for the PAN holders requiring filing of Income Tax Return. The last date to link Aadhar number and PAN is 31.03.2019.
If deduction u/s 80 is to be claimed in Income tax, then every taxpayer should verify the limits of Income tax and their tax liability and shouldinvest, donate, etc. before 31st March 2019.
If Taxpayers have not paid Advance tax before 15th March then it should be paid before 31st March so that less interest will be levied.
Last date to file Professional tax return for FY 18-19 is 31st March 2019.
20th March, 2019
Individual travelling from India to Nepal can carry currency notes of Rs 200 and 500 denominations: RBI
A.P. (DIR Series) Circular No. 24, March 20, 2019
The Reserve Bank of India has now been permitted an individual travelling from India to Nepal or Bhutan to carry RBI currency notes in Mahatma Gandhi series in denomination of Rs. 200 and or Rs. 500 subject to a limit of Rs. 25000/-. Instructions regarding currency notes of Government of India and Reserve Bank of India for any amount in denominations of up to Rs. 100/- shall continue as hitherto.
19th March, 2019
34th GST Council Meeting: GST on Real Estate
NEWS – March 20, 2019
The GST Council in its 34th meeting held on March 19, 2019 discussed on implementation of recommendations made by the council in the 33rd council meeting. In the said meeting, the Council had recommended that to boost the real estate sector the GST Rate should be 1% in case of affordable houses and 5% in other cases. The key takeaways of 34th GST council meeting regarding the GST Rates on Real Estate Sector are as follows:
1. The promoters shall be given an one -time option to continue to pay tax at the old rates (i.e., at 8% or 12% with ITC) on ongoing projects (if construction and actual booking have started before 01-04-2019) which have not been completed by March 31, 2019.The option shall be exercised once within a prescribed time frame and where the option is not exercised within the prescribed time limit, new rates shall apply.
2. The new tax rates shall be applicable in case of new projects and the ongoing projects in respect of which the promoters have exercised the option to pay tax as per new regime. The rates as per new regime shall be 1% or 5% without input tax credit
Key GST changes applicable from April 1, 2019……http://www.cavridhi.com/blog/key-gst-changes-applicable-from-april-1-2019/
Organizing Marathon by trust is not a ‘Charitable Activity’, GST is applicable
Dream Runners Foundation Ltd. – [2019] 103 taxmann.com 253 (AAR – TAMILNADU)
18th March, 2019
Computers, laptops etc., used by the service provider would not qualify as an input, ineligible for transitional ITC
Geojit Financial Services Ltd. – [2019] 103 taxmann.com 171 (AAAR-KERALA)
No coercive action against payee if payer failed to deposit TDS collection with Govt.: HC
Pushkar Prabhat Chandra Jain v. Union of India – [2019] 103 taxmann.com 106 (Bombay)
The petitioner had sold an immovable property for Rs. 9 crores. The purchasers made a net payment of Rs. 8 crores 91 lakhs to the petitioner after deducting tax at source at 1 per cent of the payment in terms of section 194-IA.
The petitioner filed the return of income and claimed credit of TDS of Rs. 10.71 lakhs. The Income-tax department noticed that only an amount of Rs. 1.71 lakh was deposited and thus demand of Rs. 10.36 lakhs was raised against the petitioner comprised of the principal tax and interest payable thereon.
The Bombay High Court held that section 205 carries the caption ‘Bar against direct demand on assessee’. The section provides that where tax is deducted at the source under the provisions of Chapter XVII, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.
It is always open for the department and in fact the Act contains sufficient provisions, to make coercive recovery of such unpaid tax from the payer whose primary responsibility is to deposit the same with the Government.
If the payer after deducting the tax fails to deposit it in the Government account, measures can always be initiated only against such payers
16th March, 2019
Service provider providing outdoor catering services required to pay GST at the rate of 18%: AAAR Gujarat decided.
15th March, 2019
Service Recipient is not eligible to obtain Advance Ruling unless it pays GST under Reverse Charge Mechanism
Telstra Telecommunication Pvt. Ltd. – [2019] 103 taxmann.com 135 (AAR – MAHARASHTRA)
CBDT enables filing of revised return online for ITRs earlier filed manually
The Central Board of Direct Taxes (CBDT) has enabled online facility for the taxpayers to file revised returns on e-filing portal, in case they have filed original ITR manually (i.e., in paper form). Taxpayers are required to suffix ‘0’ (Zeros) in case the acknowledgment number of the original paper filed return is of less than 15 digits. The IT department has released the ‘Easy Guide’ containing steps to file the revised return.
14th March, 2019
No GST on bottling fees paid by liquor brand owner to contract bottling units
Allied Blenders & Distillers (P.) Ltd., In re – [2019] 103 taxmann.com 125 (AAR- MAHARASHTRA)
Health care services : Supply of medicines and allied items to outpatients through pharmacy attached to hospital run by assessee is taxable under GST – Ernakulam Medical Centre (P.) Ltd., In re – [2019] 103 taxmann.com 182 (AAAR-KERALA)
Jackie Shroff Transforms Loan into Loss
Recently, The Mumbai ITAT has ruled in favour of veteran actor, Mr. Jackie Shroff and allowed his claim of write-off of advance given to wife for production of movies
Payments to various artists participating in reality shows are liable for sec. 194C TDS & not sec. 194J TDS
Malayalam Communications Ltd. v. ITO – [2019] 103 taxmann.com 63 (Cochin – Trib.)
7th March, 2019
Implementation of various decisions taken by the GST Council for the MSME Sector;
*Issue of Notifications there of Posted On: 07 MAR 2019 5:49PM by PIB Delhi*
_The GST Council in its 32nd Meeting held on 10th January, 2019, inter-alia, had taken the following decisions to be effective from 1st April, 2019 (01.04.2019)_
Higher Exemption Threshold Limit for Supplier of Goods: There would be two Threshold Limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. Rs. 40 lakhs and Rs. 20 lakhs. States would have an option to decide about one of the limits. The Threshold for Registration for Service Providers would continue to be Rs. 20 lakhs and in case of Special Category States Rs. 10 lakhs.
Composition Scheme for Services and Mixed Suppliers: A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a tax rate of 6% (3% CGST + 3% SGST) having an Annual Turnover in preceding Financial Year upto Rs 50 lakhs.
Increase in Turnover Limit for the Existing Composition Scheme: The Limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs. 1.5 crore. Special Category States would decide about the Composition Limit in their respective States.
*The following Notifications have been issued to implement the above decisions:*
Notification No. 10/2019 – Central Tax, dated the 7th of March, 2019 for higher exemption Threshold Limit for Supplier of Goods;
Notification No. 02/2019 – Central Tax (Rate), dated the 7th of March, 2019 for Composition Scheme for Services and Mixed Suppliers, which would be optional to the taxpayers;
Notification No. 14/2019 – Central Tax, dated the 7th of March, 2019 for Increase in Turnover Limit in case of existing Composition Scheme.
*These Notifications shall come into effect from the 1st of April, 2019.*
6th March, 2019
The Annual return under GST (FORM GSTR-9) is active on the GST portal now.
Once you login, you will be able to see the annual return below the return dash board icon.
You can also see that in Services>Returns>annual return.
Then select the Financial year. (Only FY 17-18 is available now).
Below are the points highlighted in portal:
1. Annual return in Form GSTR-9 once filed cannot be revised.
2. Computation of ITC based on GSTR-2A has been auto-populated by the System based on GSTR-1 filed by your corresponding suppliers upto 29/01/2019 . Next auto-updation of GSTR-2A will be carried on 01/03/2019 . If you have some missing credits in GSTR-2A, you may like to wait till next updation.
3. GSTR-9 can be filed online. It can also be prepared on Offline Tool and then uploaded on the Portal and filed. **
4. Annual return in form GSTR-9 is required to be filed by every taxpayer registered as normal taxpayer during the relevant financial year.
5. All applicable statements in Forms GSTR-1 and returns in Form GSTR 3B of the financial year shall have been filed before filing GSTR-9.
**Note: The offline utility is yet to be provided.
Other Points to be noted in the online format:
1. Annual Summary of GSTR-1 and GSTR-3B can be downloaded in PDF. This is the sum total of each table, given in the same format of monthly returns.
2. System computed GSTR-9 can also be generated in PDF.
3. All the tables are pre-filled on the basis of data filed through GSTR-1 and GSTR-3B, the same can be altered.
4. In case the amount entered manually is +/-20% of the auto populated amount, the same shall be highlighted in Red color, for ease of reference.
5. Provision for making additional payments is also provided.
6.Further, instructions provided in the Rules are re-produced for easy reference in “Help” link provided in the each table.
Nil Return:
It is specified that the Nil annual return also can be filed, similar to “Nil GSTR-3B”, subject to below conditions:
“NIL” GSTR-9 RETURN can be filed, if you have
Not made any outward supply (commonly known as sale); AND
Not received any inward supplies (commonly known as purchase) of goods/services; AND
No liability of any kind; AND
Not claimed any Credit during the Financial Year; AND
Not received any order creating demand; AND
Not claimed any refund.
during the Financial Year
However, if any of the monthly returns are not filed as “Nil return”, the GSTR-9 can’t be “Nil”.
Mar 01, 2019
- Link your PAN with bank for refunds: Income tax department to taxpayers
The Income Tax Department will “only” issue refunds via the e-mode into bank accounts of taxpayers beginning next month and they should link PAN with their accounts, the taxman said in its latest public communication. The department said refunds will be sent to bank accounts as it will issue “only e-refunds from March 1, 2019.” Link your PAN (permanent account number) with your bank account to get your refund directly, swiftly and securely, the department said in a public advisory issue Wednesday.
