I would like to e-connect and to wish you a very happy CA day. I, as co-professionals, wish to expand the partnership in IFCCL on this auspicious day.
Covid 19 moved us all across digital channels into virtual action. Yes, when we began developing IFCCL in 2007, we envisaged an integrated tax enforcement framework.
In 2012-2013, IFCCL began by becoming a massively electronic filing and in 2016 became a GSP licensed under foreign tax firms’ trust. In association with the AITC Group member, we started offering our Companies and CAs our Compliance Portal.
We conclude that practitioners must have a single dashboard for accounting, GST, TDS, ITS and support services in this age of technological advancement. Alas, most solutions on the market do not provide a forum of this kind.
At IFCCL we want to give all CA professionals, whether they are CAs who start their practice or the existing CA firms, our comprehensive tax enforcement platform, and new startup companies.
We would like our strong digital enforcement experience in India to echo Chartered Accountants with PM Modi Ji ‘s Local-Pe-Vocal.
We have built over the course of the year our capacity to make the practice digital and truly global. We now invite interested CA to work with us to grow in the changing digital world.
Let our professional friends – the Chartered Accountants – share little of risk, prosperity, and happiness.
Take advantage of me in order to understand how you can take part in the growth of IFCCL.
Govt extends the deadline for tax compliance to file a return and other records by 30 June
Extension of different deadlines under the Direct Tax & Benami laws: Notification No 35/2020 has been released by CBDT [S.O. 2033(E)] of 24 June 2020 on Taxation & Other Laws, extending further the time-limits for numerous compliance measures. From 30th June, 2020, the saif notification will enter into force.
In view of the difficulties faced by taxpayers in meeting the statutory and regulatory enforcement criteria throughout industries as a result of the outbreaks of Novel Corona Virus (COVID-19), on 31 March 2020 the Government adopted the Taxation and Other Laws (Relaxation of Some Provisions) Ordinance, 2020 [the Ordinance], which extended various time limits, among other items. In order to provide more relief to taxpayers for creating multiple compliance requirements, on June 24, 2020, the Government released a Notification, the main features of which are as continues to follow:
Income Tax Returns for AY 2019-20: The deadline for filing both initial and amended revenue-tax returns for FY 2018-19 (AY 2019-20) was extended to July 31 , 2020.
Extended due dates for AY 2020-21: Earlier, at a press conference on 13 May 2020, Finance Minister announced an extension to 30 November 2020 for all categories of taxpayers of the due dates for filing income returns for AY 2020-21. Now told of the launch. According to the Notification, the due date for the FY 2019-20 income tax return (AY 2020-21) was extended to November 30th, 2020. Therefore, income returns that are required to be filed by July 31 , 2020 and October 31, 2020 can be filed by November 30th, 2020.
The deadline for the furnishing of the tax audit report has therefore also been extended to 31 October 2020. As per the Finance Act, 2020 amendment, a tax audit report is required to be submitted one month prior to the due date of the return of income.
Payment of self-assessment tax: The date for payment of self-assessment tax in the case of a taxpayer whose self-assessment tax liability is up to Rs. 1 lakh was also extended to 30 November 2020 in order to provide relief to small and middle class taxpayers. However, it is clarified that for taxpayers with self-assessment tax liability exceeding Rs. 1 lakh there will be no extension of date for payment of self-assessment tax. In this situation, the entire self-assessment tax is payable by the due dates set out in the 1961 Income Tax Act (IT Act) and delayed payment would attract interest pursuant to section 234A of the IT Act.
Investment time limit u / s 80C etc. extended: the date for making various investments / payments in order to demand a deduction under Chapter-VIA-B of the IT Act, which includes sections 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80 G (Donations) etc., was also extended to 31 July 2020. Hence the investment / payment for requesting the deduction under these parts for FY 2019-20 may be made up to July 31 , 2020.
Investment time etc. for deduction u / s 54 to 54 GB extended: The investment / construction / purchase date for seeking roll-over benefit / deduction for capital gains under articles 54 to 54 GB of the IT Act was also extended to 30 September 2020. Consequently, the investment / construction / purchase made up to September 30th, 2020 will be entitled to assert capital gains deduction.
Extended date for start of operation of the SEZ units: The date for the start of operation of the SEZ units for claiming deduction pursuant to section 10AA of the IT Act was also extended to 30 September 2020 for units receiving the necessary approval by 31 March 2020.
Time limit stretched for the furnishing of TDS / TCS statements and the issuance of TDS / TCS certificates: the furnishing of TDS / TCS statements and the issuance of TDS / TCS certificates is a prerequisite for taxpayers to start preparing their income returns for FY 2019-20;
Time limit for issuing notices and extended date for PAN-Aadhaar linking: the date on which the authorities passed an order or released a notice and various compliance with various Direct Taxes & Benami laws to be passed / ordered / released by 31 December 2020 has been extended to 31 March 2021. The date for linking Aadhaar with PAN would therefore also be extended to March 31st, 2021
Gain of lower interest rate removed after June 30: The decreased interest rate of 9 per cent for overdue payments of taxes, levies etc. stated in the amendment shall not apply to payments made after June 30th, 2020.
Summary are as below
Due date for filing F.Y 2018-19 Income Tax Return has been extended to 31.07.2020.
Due date for filing FY 2019-20 Income Tax Return has been extended to 30.11.2020.
The due date for furnishing the audit report has been extended to 31.10.2020 under any provision of Income Tax for FY 2019-20.
In cases where self-assessment tax is up to Rs 1 lakh for FY 2019-20, waiver of interest u / s 234A.
Deductions under Ch-VIA, such as Sec 80C, 80D, 80 G, etc. can now be made for FY 2019-20 up to 31.07.2020.
Deductions u / s 54 or 54 GB is extended to 30.09.2020 for expenditure declines from 20.03.2020 to 29.09.2020
TDS Certificates for Q4 2019-20 can be given until 15.08.2020 including Employee Form 16.
The filing date for TDS / TCS statements for Q4 2019-20 has been extended to 31.07.2020
The furnishing date of TDS / TCS statements for Q4 2019-20 government offices has been extended to 15.07.2020
The scheme Direct Tax Vivad se Vishwas was extended until 31.12.2020.
India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
Money transfers /Repatriation of non-repatriable earnings and NRO Account available balances:
While under FEMA Act, 1999 NRI ‘s non-repatriable current earnings, like rental, dividends, insurance, NRO investment interest, etc. attributed to the NRO account, is now entirely repatriable subject to payment/deduction of reasonable tax. Such facilities shall also be granted to NRIs which do not maintain an NRO account.
A non-resident Indian [NRI], as well as a Person of Indian Origin [PIO], could also repatriate up to US$ 1 million every financial year out of the amount kept in the NRO account. These amount in NRO accounts liable for repatriation may have been proceeds of selling of immovable property;
Assets gained by Inheritance / Legacies; NRO investments with a bank or business or company; Provident Fund balance or Superannuation benefits; sum of insurance premium premiums or maturities; proceeds of selling of shares, securities; Balance kept with Partnerships or sole proprietor Entities, etc.
Money transfers shall be permitted for any lawful reason or solely on the grounds of repatriation outside India.
We provide hybrid repatriation advisory services that would include:-
Collection of the Actual facts Position.
Information and relevant Documents ( as per Annexure A which is mention below )
Chartered Accountants in India Certificate i.e. 15CA and 15CB certificate as required by law for taxation purposes.
sufficient follow-up with financial institutions
Non-resident Indians are required to remit specific salaries and principal sums that have not been repatriated to far outside India. These would be the following:
Repatriation of previously non-repatriable money, such as rent, NGO tax; tax on loans/deposits, etc.
The Foreign Exchange Regulations Act, 1973 laid out specific guidelines and procedures for repatriation of almost all income produced in India which was listed as non-repatriable. This included rental profits, corporate interest, the share of joint firms, interest on debts, etc.
The Foreign Exchange Management Act, 1999 did not lay down a specific clause in this regard, although the provisions of the Foreign Exchange Management (Deposit) Regulations, 2000 clearly state ‘remittance outside India of the current income of the account holder net of the applicable taxes.’
Consequently, the Indian Reserve Bank empty Circular is dated. 14 May 2002 clarified/advised the banker to allow the repatriation of NRI’s current income, such as rent, dividend, pension, interest, etc., from the NRO account and/or credit of such income to the NRE account and, in the case of NRI’s which may not be maintained by the NRO account, RBI directed to obtain the prescribed certificate :
Suitable certificate of the Chartered Accountant certifying the eligibility of the planned remittances and
In fact, certifying that the necessary tax has been compensated/provided for.
Sale of household property funds raised:
Selling proceeds of household properties were, until then, repatriable to the sum of foreign currency equal purchasing price/acquisition rate, given that NRI had purchased such properties and retained such property for a period of 3 years and had acquired the same proceeds from balances kept in Non-Resident Local (NRE)/Foreign Currency Non-Repatriable (FCNR) or by foreign exchange remittances from abroad.
The requirement for a minimum holding period of 3 years has been removed by the RBI. Any event of selling of house land, regardless of the length of the possession, would be liable for repatriation benefits subject only to limitations on repatriation of 2 residential properties.
Balances kept in a non-resident non-repatriable account-NRNR:
By then, the total amount of the deposit kept in the Non-Resident Non-Repatriable (NRNR) account was non-repatriable.
The sum of interest gained from the tax allowance as well as full repatriation.
all balances in the NRNR account were granted the benefit of repatriation.
As a consequence, earnings from deposits reaching maturity on or after 1 April 2002 will be credited to the Non-Resident External Account (NRE) of the owner of the NRI account, which may be held as such or shifted to the Foreign Currency Non-Resident Account or remitted/repatriated abroad.
NGO repatriation balance up to US$ 1 million:
NRIs are permitted to repatriate/return abroad up to US$ 1 million per financial year out of the amount kept in the Non-Resident Ordinary Account [NRO], which is, per se, non-repatriable.
This amount was to be made out of valid transactions allowed at the appropriate time under the foreign exchange legislation applicable to the FERA Act, 1973, FEMA Act, 1999
NRIs requesting repatriation is required to apply to the Authorized Dealer in particular ways, along with documentation respecting the origins of the NGO balances and paying the tax in place, as well as the Chartered Accountant’s Certificate of regulatory compliance necessary and payments respectively.
We also support tax calculation assistance; tax payments; submitting of tax filings and financial planning in this and many other matters;
India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
The “Input Tax Credit” is NOT available for project development services under the Central Goods and Services Tax Act, 2017. RULING of AAR, Gujrat – M/s. Deendayal Port Trust (erstwhile Kandla Port Trust)
The concern involved in this incident concerns the ‘Input Tax Credit’ under the CGST Act. The petitioner is a port trust which operates a major port in Kandla. As part of the Sagarmala project, one of India’s first Smart Industrial Port City (SIPC) in the Gandhidham-Kandla-Adipur Complex is being developed under the direction of the Ministry of Shipping to use land resources to develop port-based smart cities. They will auction land under the SIPC for a period of 60 years or more for evaluation in the form of a one-time upfront premium for GST under the Real Estate Service category (HSN 9972).
The petitioner has demanded an advance ruling as to whether the “Input Tax Credit” is obtainable for the mentioned project development services, such as:-
Programme management consultancy;
Land levelling and other related works;
Water, electricity, & Drainage Infrastructure; and
Other related works for developing SIPC
The “Input Tax Credit” is NOT available under the CGST Act, 2017 for the project development services, such as Program Management Consulting, Marketing Consulting, Land Leveling, and other related works, Roads, Water, Electricity & Drawing Infrastructure and other related works for the development of SIPC, i.e. the construction of the immovable property.
for details refer: http://www.gstcouncil.gov.in/sites/default/files/ruling-new/GUJ_AAR_02_2020_11.03.2020_DPT.pdf
India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
RBI enforce withdrawal restriction of a total amount not exceeding 500 For Karnala Nagari Sahakari Bank Ltd., (Maharashtra)
1. Authority to issue certain Directions to Karnala Nagari Sahakari Bank Ltd., (Maharashtra) by which, as from of the end of trading on 15 June 2020, the Administrator of the aforementioned bank shall not, without prior written permission of RBI.
(a) give or renew any loans and advances,
(b) start making any investment,
(c) accrue any liability, including the borrowing of funds and the acceptance of new deposits;
(d) to disburse or agree to disburse any bill, whether in the discharge of its liabilities and obligations or otherwise;
(e) access into it and sell any compromise or arrangement;
(f) Move or otherwise dispos of any of its property or assets, except as notified in the RBI Order dated June 15, 2020, a copy of which is shown on the bank’s premise for public inspection by concerned members of the general public.
(g) In specific, a sum not exceeding 500 (Rs Five hundred only) of the final value of all savings bank or current accounts or any other account of the depositor may be forced to withdraw.
2. The issue of the above RBI Directions should not in itself be perceived as the cancelation of the RBI banking license. The bank will continue to execute limited business operations until its financial position enhances. The RBI may, depending on the case, consider changes to such Directions.
3. The above Guidelines shall remain in full force for a period of 6 years from the end of trading on 15 June 2020 and shall be subject to scrutiny.
for details refer https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49953
India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
Does GST Late Fee past return Waiver decision – Correct or Incorrect?
GST Council’s recent decision at the 40th Council meeting on the comprehensive waiver of the late fee for nil returns and the capping of Rs . 500 pm for othes from July 2017 to Jan 2020 has decided to open the room for debate on the matter. Unfair waiving of late GST fees at recent council meeting. There are three taxpayer categories, with separate views on the issue.
1. All who submit their returns far right on time.
Many who file their returns always in time are not pleased with the council’s decision. Such a class of taxpayers still feel depressed and demotivated when any such waiver shceme is announced by the State. We think the government does not respect their prompt action.
2. All would have filed their returns by paying large fines after due date.
Those who lodged their returns by paying tremendous late fees firmly condemn the committee decision. They are the ones who paid punishment for their hard-earned money in the treasury of govenrment. Such taxpayers are demanding that they also benefit from the waiver and that their funds be offered to refund.
3. People who have not yet filed their returns.
Anyone who has not yet filed their rates of return is very satisfied with the choice for precisely that reason.
India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
The works contract is a combination of service and transfer of goods, it include construction of new building, erection, installation of plant and machinery, improvement, repair, maintenance, renovation.
Before CGST Act, 2017
In the previous law if any new product was created during the work contact, then such manufacture become a taxable event. The supply of goods become taxable in VAT and supply of services become taxable in Service Tax and if a new product appeared in the process of completing a work contract, Central excise duty was levied. So it will create a lot of confusion at the perspective of the taxable person.
The following supply of services will attract GST as per Schedule II
The construction of building, complex, civil structure or a part thereof, including a complex building intended for sale to a buyer, wholly or partly. Works contract also includes a transfer of goods, whether as goods or in some other form. There were different composition schemes with different VAT rates. Service tax too was complex with 60% abatement on new works and 30% abatement on repair contracts. GST solves such with a much simpler straightforward calculation.
Input tax credit not available
The works contracts services when supplied for construction of immovable property, other than plant and machinery, except where it is an input service for further supply of works contract service. goods or services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in course or furtherance of business.
Input tax credit is available to both a builder and a taxable person while constructing plant and machinery. But input tax credit is not available to any taxable person who constructs on his own account even if it is for business use.
Composition Scheme not available
The Composition scheme for work contract is not available to works contractors as it is treated as service under GST. Composition scheme is only available to suppliers of goods. This will be a big blow to the small sub-contractors who cannot opt for composition scheme. They will be forced to register for normal taxation scheme increasing their compliances and costs.
No Abatement has been impose for works contract service under GST. The previous regime had an abatement of 60% for new works contract and 30% on repair works, as mentioned earlier. Given that the rate for service tax was 15%, and the GST rate for works contract is 18%.
The general rules of registration under GST apply to the works contractor as well. Hence, if his aggregate annual turnover exceeds Rs 20 lakh (or Rs 10 lakh in special category states) then he will require GST registration.
GST Returns for Works Contractors
The following returns are applicable to works contractors:
GSTR-1 (monthly return)
GSTR-3B (monthly return)
GSTR-9 (annual return)
Attention Please note:
• The monthly GSTR-1 and GSTR-3B returns will shortly be replaced within a couple of months by the simpler monthly GST returns.
• The due date for the GSTR-9 file is fast approaching. To prevent needless hassles in filing, it is important to be thoroughly prepared and have a reliable resource at hand to filing returns.
How does IFCCL help?
The world class cloud – based software of IFCCL will support you when it comes to filing any GST return. IFCCL ‘s powerful tax filing software is entirely capable of handling even the last day’s scramble to give you a seamless and simplified experience that makes the filing process a breeze to you.
IFCCL also provides everything that you need from registration, filing and reconciliation of returns to canceling registration at one location to comply with the GST rules.
We hope this guide will help you understand the GST regulations regulating works contract taxes. See our Information feature for more posts on relevant GST related topics.
India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
Failed to file some form of charge because with the Lock Down? If so, therefore the new MCA Circular will help you with this. Reference this Circular here
MCA formed General Circular No. General Circular No. 23/2020 dated 20th June, 2020 on Specific Steps under Companies Act , 2013 (CA-2013) in view of COVID-19 outbreak which involves steps relevant to MCA came with certain fees waiver for charges pending from this same year. Today came a long-awaited exception on the filing of Form CHG 1 and CHG 9. MCA came with relief fees for charges that were outstanding from such a certain period. File your pending charge at the earliest possible, if provided by the scheme below.
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CBDT has suspended recovery of tax from Swedish companies whose disputes are being resolved through the Mutual Agreement Procedure (MAP) route, a move that will help in mitigating the hardship faced by such firms operating in India.
CBDT notification no. 2/2017 Report cash deposit in Bank & Post Office A/c’s between 01.04.2016 to 09.11.2016.
Delhi HC shows leniency to assessee, reduces penalty levied u/s 78 of Finance Act to 25% of entire tax due on deposit of balance amount within 30 days, where assessee failed to obtain registration or file ST returns despite liability [TS-555-HC-2016(DEL)-ST]
CBEC notified that overseas companies providing online information and database access (‘OIDAR’) services will have to pay service tax from December 1, 2016.
MCA, in the interest of public, directs that certain provisions of Companies Act, 2013 shall not apply or shall apply with some exceptions, modifications and adaptations to an unlisted company which is licensed to operate by RBI or SEBI or IRDA located in an approved multi services SEZ set-up Vide Notification.
Black money would be taxable at higher rates; Finance Minister Mr. Jaitley said on Demonetization, IDS & Cashless Economy.
Causal taxable person or non-resident taxable person must apply for registration at least 5 days before actual commencement of business.
Return by units paying duty > 1 crore (CENVAT + PLA) for December – 10.01.2017.
Return of Non SSI assesses for December – 10.01.2017.
Return of SSI assesses for quarter ending December – 10.01.2017.
Return for EOUs for December – 10.01.2017.
Due date to deposit of DVAT of December – 21.01.2017.
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