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

INCOME TAX.png

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The government came up with a new Section 194N under which if cash is withdrawn of more than Rs 1 Crore during a financial year tds @ 2%.is to be deducted by banks ,cooperative banks and Post Office.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

GST.png

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.

Online Refund Process.jpg

Benefits for Online Refund.jpg

Benefits for Online Refund2.jpg

COMPANIES.png

  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.