#Weekly update- #Incometax- #GST- #Companies 14/10/2019

INCOME TAX
  1. INCOME TAX ASSESSMENT MADE ONLINE
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COMPANIES
  1. Form for filing application for declaration as Nidhi Company and for updation of status by Nidhis Form NDH-4 is available for filing.
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2.DIR KYC last date for the year ended 31/03/2019 is on 14th October 2019. If KYC is done after this date then Rs 5000/- penalty will be charged from the directors.
GST
1.GOODS EXEMPTED:-
Exempted
NOTE: GOODS EXEMPTION EXTENDED:-
The services provided in relation to transportation of goods from India to outside India which was exempt till 30.9.2019 has been further extended to one more year and the ocean freight or air fare paid for such transportation would be exempted from GST.
2.GST RATE REDUCED:-
Excempte
3.GST RATE INCREASED:-
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4.NO COMPOSITION SCHEME FOR MANUFACTURERS OF AERATED WATERS:-
Manufacturers of aerated waters now cannot take the option of Composition Scheme.
The composition tax rate of 6% as notified w.e.f 1.4.2019 for persons with aggregate turnover of up to Rs. 50 lakhs, would not be applicable in case where the registered person is engaged in the supply of aerated water.
5.ADDITIONAL SERVICES COVERED UNDER REVERSE CHARGE MECHANISM (RCM):-
Nature of Service
Service Provider
Person liable to pay tax
Services of renting of a motor vehicle provided to a body corporate
Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business.
Any body corporate located in the taxable territory
Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended.
Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI
Borrower i.e. a person who borrows the securities under the Scheme through an approved intermediary of SEBI.”
6.SALE OF CEMENT UNDER REVERSE CHARGE :-
Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975.Any value of cement purchased from an unregistered person by a promoter would be liable in his hands under RCM irrespective of the threshold limit.
7.SERVICES OF AUTHOR – OPTION TO PAY UNDER FORWARD CHARGE:-
With respect to the services of transfer or permitting the use or enjoyment of a copyright relating to original literary works supplied by an author to a publisher, the author is given a choice to either pay the GST under forward charge, else the publisher located in India would be liable to pay GST under RCM.
8.FILING A REFUND APPLICATION WHERE A NIL REFUND APPLICATION HAS ALREADY BEEN FILED:-
Registered person who has filed a NIL refund claim in FORM GST RFD-01A/RFD-01 for a given period under a particular category, may again apply for refund for the said period under the same category.
9.GST CREDIT RESTRICTED TO 20% OF UNMATCHED INVOICES:-
Mandatory to match ITC with 2A, otherwise total unmatched credit cannot exceed 20% of ITC as available in 2A.
For example in the month of April-19, the input tax credit available (as per books) is ₹1,00,000/-. Out of this, certain vendors, wherein input tax credit involved is say ₹25,000/-, have not filed their GSTR-1. Now, due to the amendment, the buyer can avail himself of ITC only to the extent of ₹ 15,000/- (i.e. 20 per cent of ₹ 75,000).

#Weekly update- #Incometax- #GST- #Companies 06/10/2019

INCOME TAX
1.E FILING QUERIES/ISSUES FORM
Income tax has introduced a new way answering queries or solving issues via Social Networking Websites.
Submit your 1st Query and get your answers directly in your Facebook/Twitter/Quora or Other Social Medias.
https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/ORM.html
2.TDS DEDUCTED ON CASH WITHDRAWL CAN BRING YOUR YEAR END TAX TO MINIMUM
CBDT Has clarified the credit of tax deducted at source from cash withdrawal under section 194N shall be allowed to the person from whose account it has been deducted. Further, Such credit shall be allowed in the year of deduction like any other Tds Deducted.
The government came up with a new Section 194N under which if cash is withdrawn of more than Rs 1 Crore during a financial year tds @ 2%.is to be deducted by banks ,cooperative banks and Post Office.
3.NO MAT CREDIT, ADDITIONAL DEPRECIATION IF YOU CHOSE NEW LOWER TAX RATES
New Domestic manufacturing companies can pay tax @ 15% , BUT the companies that take option to pay tax @ 22% will not be eligible for accumulated minimum alternate tax (MAT) Credit & Loss which relates to additional depreciation.
As there is no time line for taking this option i.e to pay Income tax @ 22% , it is advised that the domestic companies having brought forward losses on account of additional depreciation OR MAT Credit may ,if it so desires , exercise the option after set off of the losses/Utilizing the MAT Credit so accumulated.
It would be interesting to see how companies do Tax Planning so they get the lower tax rate @22%  as well as the Unused MAT Credit lying in the Balance Sheet.
4.DOCUMENTATION IDENTIFICATION NUMBER (DIN) LAUNCHED BY INCOME TAX DEPARTMENT FOR TAX PAYERS
Any communication from Income Tax Department without a generated DIN be it a notice ,letter,order or summon or any other correspondence will be invalid from 01st October 2019.
5.  FM TO INAUGURATE NATIONAL E-ASSESSMENT CENTRE OF INCOME TAX DEPARTMENT TOMORROW I.E 07th OCTOBER 2019.
Faceless e-assessment to impart greater efficiency, transparency and accountability in the assessment process. There would be no physical interface between the tax payers and the tax officers.
WHAT IS FACELESS E-ASSESSMENT?
  • Tax payers will receive notices on their registered emails as well as on registered accounts on the web portal www.incometaxindiaefiling.gov.in with real time alert by way of SMS on their registered mobile number, specifying the issues for which their cases have been selected for scrutiny.
  • The replies to the notices can be prepared at ease by the tax payers at their own residence or office and be sent by email to the National e-Assessment Centre by uploading the same on the designated web portal.

 

GST

1.GST REFUNDS NEW PROCEDURE
Refund Applications given from 26/09/2019 onwards would be processed online including GST Refund orders and disbursement of Tax.

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COMPANIES

1.DIR-3 KYC FORM DATE EXTENDED TILL 14TH OCTOBER 2019
DIR-3 KYC Form/Web Form for the financial Year ending 31st March ,2019 have to be filed on or before 14th October 2019.
Previously, last date was 30th September which has been extended till 14th October 2019.
If Filed after 14th October 2019 Penalty of Rs 5,000/- is to be given, Presently filing of  this form is Free of Cost.

#Weekly update- #Incometax- #GST- #Companies 29/09/2019

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1.NO TDS ON CASH WITHDRAWL:-

Commission agent or trader, operating under Agriculture Produce Market Committee (APMC) can withdraw cash in excess of Rs 1 Crore and there is no condition of deduction of tds under section 194N.

The government came up with a new Section 194N under which if cash is withdrawn of more than Rs 1 Crore during a financial year tds @ 2%.is to be deducted by banks ,cooperative banks and Post Office.

2. ADDITIONAL DEPRECIATION ON MOTOR CARS AND MOTOR VEHICLES:-

Motor Cars acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020.

If the Motor Cars used in Business of Hire -45%  (Other Cases 30%)

If the Motor Cars not used in Business of Hire -30% (Other Cases 15%)

3.OPTION FOR DOMESTIC COMPANIES TO PAY LESS INCOME TAX FROM FY 2019-20:-

From FY 2019-20 Corporate Income tax @22% &  15% for new Domestic manufacturing companies.

The Companies cannot avail 22%/15% Rate if they avail any exemption or incentive.

4.ITR & TAX AUDIT DATE EXTENDED TILL 31ST OCTOBER 2019:-

ITR & Tax Audit Reports dates extended till 31st October 2019 in respect of persons whose accounts are required to be audited.

5.ITR 6 , SHAREHOLDERS NOT HAVING PAN, MENTION THIS INSTEAD OF PAN:-

If Non Resident Shareholder- NORES9999N

In other cases-NOAVL9999N 

6.CONDUCT OF ASSESSMENT PROCEEDING THROUGH “E -PROCEEDING” FACILITY DURING THE FINANCIAL YEAR 2019-20.

Assesses are required to produce their response /evidence to any notice/communication/show cause notice issued by the Assessing officer electronically through their “E-Filing” account on the “E -filing” Portal instead of presenting every thing in Hard Copy to the Income Tax Officers.

Though, it is a welcome step form the Income tax Department that But,

 (i)There are also some exceptions to the E-Proceeding.

(ii) There are some cases where E-Proceeding is not mandatory.

EXCEPTIONS TO THE E-PROCEEDING

  1. Where books of accounts have to be examined.
  2. If the Income Tax officer has reason to suspect that any income has been concealed, or is likely to be concealed within his jurisdiction, then, for the purposes of making any enquiry or investigation he can compel the tax payers to be present in his office.
  3. Where examination of witness is required to be made by the assessee or the Department.
  4. Where a show cause notice Contemplating any adverse view is issued by the Assessing officer and assessee requests through their “E-Filing” account for personal hearing to explain the matter.

CASES WHERE E PROCEEDING NOT MANDATORY:-

(A) Assessment in case of search or requisition

(B) Assessment of income of any other person

(C) Best judgment assessment.

(D) The court or tribunal think that there is a need for reassessment either on one point or all the points or completely fresh assessment.

(E) Persons don’t having PAN Number.

(F)Income Tax Return filed in Paper Mode AND assessee does not yet have a “E-Filing”  Account.

(G)Places where there is less Internet Connectivity (List of such places to be given by Income Tax Department)

(H)Extraordinary Circumstances.

 

7.LINKING PAN & AADHAR DATES HAS BEEN EXTENDED FROM 30TH SEPTEMBER 2019 TO 31ST DECEMBER 2019.

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1.NO ANNUAL RETURN GSTR 9/GSTR 9A FOR MSMEs FOR TURNOVER UPTO RS 2CRORES FOR YEAR FY 2017-18 & FY 2018-19.

Annual Return Gstr 9/Gstr 9A made optional For MSMEs For Turnover Upto Rs 2Crores For Year FY 2017-18 & FY 2018-19.

2.NEW GST RETURNS TO BE INTRODUCED FROM APRIL,2020

3.REFUNDS DISBURSAL BY A SINGLE AUTHORITY INTRODUCED FROM 24TH SEPTEMBER,2019

4.GST RATES REDUCED:-

(I) HOTEL ACCOMMDATION SERVICE:-

If the Hotel Charge per day is Rs 1,000/- and less then No GST to be charged.

If the Hotel Charge per day is between  Rs 1,001/-  to Rs 7,500/- then 12% is be charged.

If the Hotel Charge per day is Rs 7,501 or More then 18% is be charged.

(II)OUTDOOR CATERING SERVICES:-

If Daily Tariff is Rs 7,501/- and above GST Rate 18%

If Daily Tariff is upto Rs 7,500/- GST Rate 18 % (If the Outdoor Catering Service Taxpayers don’t take any Input tax credit then GST Rate 5%)

(III)DIAMOND RELATED SERVICE:-

Job Work Services in relation to diamond GST reduced from 5% to 1.5%.

(IV)ENGINEERING RELATED SERVICE:-

Supply of Machine Job work (except supply of Job work in relation to bus body building) GST  reduced from 18% to 12%.

(V)WAREHOUSING:-

The Government has exempted prospectively warehousing services of Agricultural and related products.

5.COMPLETE ONLINE REFUND OF GST:-

This is a welcome step from the Govenment as the GST Tax payers don’t have to go and deal with the Department “BABUS”.

How Successful will be this Initiative time will show, but as of now it’s a really a Big Reform in relation to GST Refunds.

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  1. BEN2 DATES EXTENDED TILL 31/12/2019

The Companies (Significant Beneficial Owners) Rules, 2018 require every company to file a return in Form BEN-2 for all the shareholders who hold 10% or more shares in the company. This is a one time return for all existing significant business owners.

2. DIRECTORS KYC LAST DATE 30TH SEPTEMBER 2019 , IF NOT FILED RS.5,000/- PENALTY.

 

 

 

 

 

 

 

 

#BEN2 Dates extended till 31/12/2019

BEN2 Dates extended till 31/12/2019

The Companies (Significant Beneficial Owners) Rules, 2018 require every company to file a return in Form BEN-2 for all the shareholders who hold 10% or more shares in the company. This is a one time return for all existing significant business owners

Should private Companies file #NFRA1 ??

National Financial Reporting Authority (#NFRA) is an Indian body proposed in Companies Act 2013 for the establishment and enforcement of accounting and auditing standards and oversight of the work of auditors.

What National Financial Reporting Authority (NFRA) Rules, 2018 Issued by ROC says to do?

Every existing body corporate other than a company governed by the NFRA Rules (Rule 3(1)), shall inform the (“NFRA”) about details of the auditor(s) as on 13th November 2018 by 31/07/2019.

Link to NFRA Rules:-http://www.mca.gov.in/Ministry/pdf/NFRARules2018_13112018.pdf

What NFRA Website FAQ Shows??

Private Companies (Other than Mentioned in Rule 3(1)(a) to Rule 3(1)(c) not to file #NFRA1.

Link to NFRA FAQ’S:-https://nfra.gov.in/sites/default/files/FAQ.pdf

Contradictory Statements By NFRA Rules issued by #ROC & #NFRA Website FAQ’S.

Clarification is Required by ROC in this matter, which as on date not given.

#DIN Directors your company may get a status of Non-compliant if this form is not Filed, #ROC

Where a company fails to file the e-form INC 22A ACTIVE within 15th June 2019 the Director Identification Number (DIN) allotted to its existing directors, shall be marked as “Director of ACTIVE non-compliant company”.

When the company files the e-form INC 22A ACTIVE, the DIN of such director shall be marked as “Director of ACTIVE Compliant Company

Further if your company files INC 22A form after 15 th June 2019 penalty of Rs 10000/- is also to be given.