#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).

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