Akash Kedia & Associates

13/09/2020

The Authority of Advance Ruling ( AAR ) ruled that 18% Goods and Service Tax (GST) is applicable to Plastic Mechanical Liquid Dispenser.

The applicant has submitted that they are engaged in importing “Plastic Mechanical Liquid Dispensers” from China and sell them in local market since 2011. These dispensers are used as the caps of bottles. They are used for dispensing liquid either through direct discharge or spray type discharge or foam type of discharge.

The applicant submitted that till June 30, 2017, they were importing this material under HS Code 3923 (Caps and closure). But after implementation of GST, they were asked to clear the goods under HSN 3926 (Other articles of Plastics) bearing GST of 28%.

Read more at :http://gstcouncil.gov.in/sites/default/files/ruling-new/GUJ_AAR_33_2020_KB_03.07.2020.pdf

23/08/2020

GST UPDATE :

The Central Board of Indirect Taxes and Customs (CBIC) on Thursday notified amendments to the existing Central Goods and Services Tax Rules, 2017 where the Board inserted provisions for physical verification of the business premises on non-authentication of Aadhaar. As per the amendment, the Businesses registered under GST can opt for Aadhaar authentication, in absence of which registration would be granted only after physical verification of the place of business.

Applicants who do not opt for Aadhar Authentication or if validation fails, their application would be approved only after physical verification of place of business in presence of the applicant.

The linkage of Aadhar with GST and PAN will provide a central database and will keep a check on tax evasion.
Persons who are not resident /citizen of India are exempted from the Aadhaar authentication process.

30/07/2020

Income tax Updates

28/07/2020

Earlier this year CBIC has signed MOU with CBDT to share information on automatic and regular basis. Under the MoU, CBIC will share the GST data based on PAN of the supplier. This move results in tracking the non-filers who are not filing the income tax return and paying tax properly. After the MoU has been signed by both the department both the portals i.e. Income tax and GST portal has been linked with each other. Now the Income tax portal is showing GST data of the persons who have not filed the return of a particular period but has filed the GST return properly.

Below is the steps to view the GST data on efiling website :

– Login at the portal of www.incometaxindia.gov.in

– Click on Compliance Menu

– Click on e- Campaign (Check sub options) Menu

– Those assessees who have business income and file the returns ITR 3 to ITR -7, he need to ensure that their income tax returns and GST returns correlate.

– In ITR 3 the following details regarding GST needs to be given.

– Details of taxes levied on sale (CGST, SGST, IGST, and UTGST) and these details needs to be matched with the electronic liability register on the GST portal.

– Details of CGST, SGST, IGST, and UTGST paid on purchases and the credit taken thereof, these details should be matched with the electronic credit ledger available on the portal.

– If any GST refund is receivable from the government and not credited to Profit & Loss account then the details of the same are required to be given in the Income Tax Return.

– In ITR 4 the following details regarding GST needs to be given.

– Taxpayers are required to furnish the GST Registration number in the Income Tax Return.

– Taxpayer is required to provide Turnover/Gross Receipts under GST as mentioned in the GST returns. These details can be taken by the taxpayer from the GSTR 1 filed by them.

In case you need professional help in filing just email at [email protected] or message to the WhatsApp button.

15/07/2020

14/07/2020

TDS on Cash withdrawal w.e.f 1st July'20

13/07/2020

Google to invest INR 75,000 cr in India in next 5-7 years through mix equity, investments, partnerships, operational infrastructure, ecosystem investments and hinting at agri tech too.

Initiatives to be supported would include new products and services, access to information in native languages, supporting digital transformation of business and leveraging Artificial Intelligence for social good.

The current challenging environment has reiterated the need of going "digital" to keep the country and society functional during such hard time. A step towards the future.

13/07/2020

Tax Updates dated 13th July'20

05/07/2020

Income Tax Policy Changes - Announced by CBDT (PART 2)

11. Conveyance Allowance granted to meet expenditure incurred on conveyance in performance of duties of an office and any allowance granted to an employee to meet the cost of travel on tour or on transfer (including relocation) are tax free.

Interest received from post office savings account balance up to ₹3,500 annually per individual will remain free from tax.

12. Any scholarship granted to meet education costs is tax exempt under Section 10 (16) of the Income Tax Act. Gratuity received from the employer up to ₹20 lakh after rendering 5 years of continuous service. Leave encashment received at the time of resignation or retirement up to ₹3 lakh.

13. Form 26AS will now be a complete profile of the taxpayer w.e.f. 01.06.2020, CBDT vide Notification dated May 28, 2020 amended Form 26AS in Sec 285BB w.e.f. 01.06.2020. Key takeaways are:

14. New form 26AS will also provide information in respect of “Specified financial transactions” which include transactions of purchase/ sale of goods, property, services, works contract, investment, expenditure, taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000.

15. Information about income tax demand, refund, proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, appeal will also be shared in this form 26AS.

16. Information on this form 26AS will not be a one-time affair at year end. This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.

17.Form 26AS will now be a complete profile of the taxpayer for that particular year as against earlier form 26AS which just provided the information about taxes paid by way of TDS/TCS or self-assessing. This form will also have mobile no, email I’d and Aadhar no. of the taxpayer.

18. Further an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, authority under any law. Thus any adverse action initiated or taken or found or order passed under any other law such as custom , GST , Benami Law etc. including information about Turnover , import , export etc. will also be put in this form 26AS so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.

19. This form 26AS will also provide information received by Tax Deptt from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India.

20. The implication of this new form 26AS will be that banks , financial institutions or any other authority or customer , buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates.

21. This will now make difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand, tax disputes etc., So mandatorily passport no. is to be mentioned, applicable for all.

05/07/2020

Income Tax Policy Changes - Announced by CBDT (PART 1)

I. Income Tax New disclosures asked in the new ITR forms 1-7 are:

1. House ownership: Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4.

2. Passport: One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.

3. Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.

4. Foreign travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.

5. Electricity consumption: If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount.

6. Investment details: Details of investment qualifying for deduction under chapter VIA with bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.

7. For every assessment year, the last date for filing tax returns is July 31, However, this year ITR filing date has been extended till November 30, 2020 due to pandemic Covid-19.

8. Income Tax Exemptions and Deductions that you can claim under the New Tax Regime for FY 2020-21 (AY 2021-22): Withdrawal by an employee from the Employees' Provident Fund (EPF) is not taxable after 5 years of continuous service.

9. Withdrawal from National Pension Scheme (NPS) on maturity or premature closure up to 40% of the amount received on such withdrawal remains tax free for all. In case of partial withdrawal from NPS, up to 25% of the contributions made by the individual will be tax free. Employer’s contribution to NPS up to 10% of their basic salary and dearness allowance also remains tax free.

10. Under Section 10 (10D) of the Income Tax Act, the sum assured and any bonus paid on maturity or surrender of the life insurance plan is tax free. Maturity proceeds continue to be exempt under Section 10(10D) even in the new regime. The maturity amount including interest received on the Sukanya Samriddhi Yojana will not attract any tax.

02/07/2020

Update No. 7 dated 2.07.2020

1. Relief in GSTR 3B late fees: Irrespective of Sales ( may be more than or less than 5 crore) Late fee of 500 (Nil if no tax) if GSTR-3B for Feb, Mar, Apr, May, Jun, & Jul 2020 filed upto 30.9.20. Noti 57 of 30.6.20.

2. GST collections stood at Rs 90,917 crore in June, contracting for the third month in a row year-on-year. However, the rate of decline has come down considerably to just 9.02 per cent from 38.17 per cent in May and 71.63 per cent in April as returns for earlier months were also filed in June due to a relaxed timeline given by the government amid the outbreak of Covid-19.

3. Delhi High Court has stayed the penalty imposed on an Insolvency Professional (IP) who allegedly violated the provisions of the Insolvency and Bankruptcy Code by going against the terms of the moratorium. The Single Bench of Justice AK Chawla has stayed the penalty subject to the Petitioner depositing within 10 days from today a sum of Rs.25 lacs with the Insolvency and Bankruptcy Board of India.