There is the wrong use of PAN in GST registration, then you can complain on GST Network

Complaints of obtaining registration through the wrong PAN number have been reported frequently for tax evasion. To overcome this, GST Network has started a new system. If someone's Permanent Account Number (PAN) is misused for Goods and Services Tax (GST) registration, he can complain on the GST Network.

Any person whose PAN has been misused can make a complaint about this. On receipt of the complaint, it will be sent to the concerned tax officer in whose jurisdiction the registration has been taken fraudulently.

A search mechanism has been introduced on the portal of GST to find out which GSTIN (GST Identification Number) has been issued in a particular PAN. As soon as the number of PAN is entered in this search panel, the details of GST registration taken on that PAN will be revealed. If there is no registration, the message "No record found" will appear.

AMRG & Associates Senior Partner Rajat Mohan said that there have been several cases of GST frauds where the PAN details of the taxpayer are being used to illegally obtain GST registration 

Thanks & Regards 

CMA Tanuj Rathore 

9015510274

Guidelines under section 1940 of the Income-tax Act, 1961

Circular No. 13 of 2021

F. No. 370142/26/2021-TPL

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Direct Taxes)

***********

Dated: 30th June, 2021

Sub.: Guidelines under section 1940 of the Income-tax Act, 1961 - reg.

Finance Act, 2021 inserted a new section 194Q in the Income-tax Act 1961

(hereinafter referred to as "the Act") which takes effect from I st day of July, 202 I. It applies

to any buyer who is responsible for paying any sum to any resident seller for purchase of any

goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year.

The buyer, at the time of credit of such sum to the account of the seller or at the time of

payment, whichever is earlier, is required to deduct an amount equal to 0.1 % of such sum

exceeding fifty lakh rupees as income tax.

2. Buyer is defined to be person whose total sales or gross receipts or turnover from the

business carried on by him exceed ten crore rupees during the financial year immediately

preceding the financial year in which the purchase of good is carried out. Central

Government has been authorised to specify by notification in the Official Gazette, person

who would not be considered as buyer for the purposes ofthis section.

3. Sub-section (3) of section 194Q of the Act empowers the Board (with the approval of

the Central Government) to issue guidelines for the purpose of removing difficulties. Various

representations have been received by the Board for issuing guidelines for removing certain

difficulties. In exercise of power contained under sub-section (3) of section 194Q of the Act,

the Board, with the approval of the Central Government, hereby iss'ues the following

guidelines. These guidelines at some places have also tried to remove difficulties in

implementing the provisions of section 194-0 and sub-section (I H) of section 206C of the

Act using power contained in sub-section (4) of section 194-0 of the Act and sub-section (I-

I) of section 206C of the Act.

4. Guidelines

4.1 Applicability on transactions carried through various Exchanges:

4.1.1 It has been represented that there are practical difficulties in implementing the

provisions of Tax Deduction at Source CTDS) contained in section 194-Q of the Act in case

of certain exchanges and clearing corporations. It has been stated that sometime in these

transactions there is no one to one contract between the buyers and the sellers.

4.1 .2 In order to remove such difficulties, it is provided that the provisions of section 194Q

of the Act shall not be applicable in relation to,-

Ci) transactions in securities and commodities which are traded through recognized

stock exchanges or cleared and settled by the recognized clearing corporation,

including recognized stock exchanges or recognized clearing corporation located in

International Financial Service Centre;

(ii) transactions in electricity, renewable energy certificates and energy saving

certificates traded through power exchanges registered in accordance with Regulation

21 of the CERC; and

For this purpose,-

(i) "recognized clearing corporation" shall have the meaning assigned to it in clause

(i) ofthe Explanation to clause (23 EE) of section 10 of the Act;

(ii) "recognized stock exchange" shall have the meaning assigned to it in clause (ii) of

the Explanation I to sub-section (5) of section 43 of the Act; and

(iii) "International Financial Services Centre" shall have the meaning assigned to it in

clause (q) of section 2 of the Special Economic Zones Act, 2005.

4.2 Calculation of threshold for the financial year 2021-22.

4.2.1. Since section 194Q of the Act would come into effect from 1

st July, 2021, it was

requested to clarify how the threshold of fifty lakh rupees specified under this section shall be

computed and whether the tax is required to be deducted in respect of advance paid before 1st

July 2021 and sum credited thereafter.

4.2.2 It hereby clarified that,-

(i) Since section 194Q of the Act mandates buyer to deduct tax on credit of sum in the

account of seller or on payment of such sum, whichever earlier, the provision of this

sub-section shall not apply on any sum credited or paid before I st July 2021. If either of

the two events had happened before 1

st July 2021 , that transaction would not be

subjected to the provisions of section 194Q of the Act.

(ii) Since the threshold of fifty lakh rupees is with respect to the previous year,

calculation of sum for triggering TDS under section 194Q shall be computed from 1

st

April, 2021. Hence, if a person being buyer has already credited or paid fifty lakh

rupees or more up to 30th June 2021 to a seller, the TDS under section 194Q shall

apply on all credit or payment during the previous year, on or after I st July 2021 , to

such seller.

4.3 Adjustment for GST, purchase returns

4.3.1 It is requested to clarify that whether adjustment is required to be made for GST or

purchase returns for the purpose of tax deduction under section 194Q of the Act. Vide

circular no 17 of 2020 dated 29th Sept 2020 it was clarified that no adjustment on account of

GST is required to be made for collection of tax under sub-section (IH) of section 206C of

the Act since the collection is made with reference to receipt of amount of sale consideration.

However, the situation is different so far as TDS is concerned. It has been clarified in circular

no 23 of20 17 dated 19th July 2017 as under

"wherever in terms of the agreement or contract between the payer and the payee,

the component of 'GST on services' comprised in the amount payable to a resident is

indicated separately, tax shall be deducted at source under Chapter XVII-B of the

Act on the amount paid or payable without including such 'GST on services'

component. GST for these purposes shall include Integrated Goods and Services

Tax, Central Goods and Services Tax, State Goods and Services Tax and Union

Territory Good~ and Services Tax. "

4.3.2 Accordingly with respect to TDS under section 194Q of the Act, it is clarified that

when tax is deducted at the time of credit of amount in the account of seller and in terms of

the agreement or contract between the buyer and the seller, the component of GST comprised

in the amount payable to the seller is indicated separately, tax shall be deducted under section

194Q of the Act on the amount credited without including such GST. However, if the tax is

deducted on payment basis because the payment is earlier than the credit, the tax would be

deducted on the whole amount as it is not possible to identity that payment with GST

component of the amount to be invoiced in future.

4.3.3 Further, with respect to purchase return it is clarified that the tax is required to be

deducted at the time of payment or credit, whichever is earlier. Thus, before purchase return

happens, the tax must have already been deducted under section 194Q of the Act on that

purchase. If that is the case and against this purchase return the money is refunded by the

seller, then this tax deducted may be adjusted against the next purchase against the same

seller. No adjustment is required if the purchase return is replaced by the goods by the seller

as in that case the purchase on which tax was deducted under section 194Q of the Act has

been completed with goods replaced.

4.4 Whether non-resident can be buyer under section 194Q of the Act?

4.4.1 It is requested to clarity if the provisions of section 194Q of the Act shall apply to a

buyer being a non-resident. To remove difficulties, it is clarified that the provisions of section

194Q of the Act shall not apply to a non-resident whose purchase of goods from seller

resident in India is not effectively connected with the permanent establishment of such non-

resident in India. For this purpose, "permanent establishment" shall mean to include a fixed

place of business through which the business of the enterprise is wholly or partly carries on.

4.5 Whether tax is to be deducted when the seller is a person whose income is

exempt

4.5.1 It is requested to clarify if the provisions of section 194Q of the Act shall apply to a

seller whose income is exempt. To remove difficulty, it is clarified that the provisions of

~ection 194Q of the Act shall not apply on purchase of goods from a person, being a seller,

who as a person is exempt from income tax under the Act (like person exempt under section

10) or under any other Act passed by the Parliament (Like RBI Act, ADB Act etc.).

4.5.2 Similarly, with respect to sub-section (1 H) of section 206C of the Act, it is clarified

that the provisions of this sub-section shall not apply to sale of goods to a person, being a

buyer, who as a person is exempt from income tax under the Act (like person exempt under

section 10) or under any other Act passed by the Parliament (Like RBI Act, ADB Act etc.).

4.5.3 The above clarifications would not apply if only part of the income of the person

(being a seller or being a buyer, as the case may be) is exempt.

4.6 Whether tax is to be deducted on advance payment?

4.6.1 It is requested to clarify if the provisions of section 194Q of the Act shall apply to

advance payment made by the buyer. It is clarified that since the provisions apply on payment

or credit whichever is earl ier, the provisions of section 194Q of the Act shall apply to

advance payment made by the buyer to the seller.

4.7 Whether provisions of section 194Q of the Act shall apply to buyer in the year of

incorporation?

4.7.1 It is requested to clarifY if the provisions of section 194Q of the Act shall apply to a

buyer in the year of its incorporation. It is clarified that under section 194Q of the Act a buyer

is required to have total sales or gross receipts or turnover from the business carried on by

him exceeding ten crore rupees during the financial year immediately preceding the financial

year in which the purchase of good is carried out. Since this condition would not be satisfied

in the year of incorporation, the provisions of section 194Q of the Act shall not apply in the

year of incorporation.

4.8 Whether provIsIons of section 194Q of the Act shall apply to buyer if the

turnover from business is 10 crore or less?

4.8. I It is requested to clarify if the provisions of section 194Q of the Act shall apply to a

buyer who has turnover or gross receipt exceeding Rs 10 crore but total sales or gross receipts

or turnover from business is Rs 10 crore or less. It is clarified that for the purposes of section

I94Q of the Act, a buyer is required to have total sales or gross receipts or turnover from the

business carried on by him exceeding ten crore rupees during the financial year immediately

preceding the financial year in which the purchase of good is carried out. Hence, the sales or

gross receipts or turnover from business carried on by him must exceed Rs 10 crore. His

turnover or receipts from non-business activity is not to be counted for this purpose.

4.9 Cross application of section 194-0, sub-section (lH) of section 206C and section

194Q of the Act.

4.9.1 It is requested to clarifY how section 194-0, sub-section (IH) of section 206C and

section 194Q of the Act, apply on the same transaction.

4.9.2 Under sub-section (3) of section 194-0 of the Act, a transaction in respect of which

tax has been deducted by the e-commerce operator under sub-section (I), or which is not

liable to deduction under sub-section (2), shall not be liable to tax deduction at source under

any other provision of chapter XVII of the Act.

4.9.3 Under second proviso to sub-section (I H) of section 206C of the Act, provisions of

this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other

provisions of this Act on the goods purchased by him from the seller and has deducted such

tax.

4.9.4 Under sub-section (5) of section 194Q of the Act, the provision of this section shall

not apply to a transaction on which 

(i) tax is deductible under any ofthe provisions ofthis Act; and 

(ii) tax is collectible under the provisions of section 206C, other than a transactions on 

which sub-section (I H) of section 206C applies 

4.9.5 After conjoint reading of all these provisions the following is clarified: 

(i) If tax has been deducted by the e-commerce operator on a transaction under section 

194-0 of the Act [including transactions on which tax is not deducted on account of 

sub-section (2) of section 194-0], that transaction shall not be subjected to tax 

deduction under section 194Q of the Act. 

(ii) Though sub-section (IH) of section 206C of the Act provides exemption from TCS 

if the buyer has deducted tax at source on goods purchased by him, to remove 

difficulties it is clarified that this exemption would also cover a situation where instead 

of the buyer the e-commerce operator has deducted tax at source on that transaction of 

sale of goods by seller to buyer through e-commerce operator. 

(iii) If a transaction is both within the purview of section 194-0 of the Act as well as 

section 194Q of the Act, tax is required to be deducted under section 194-0 of the Act 

and not under section 194Q of the Act. 

(iv) Similarly, if a transaction is both within the purview of section 194-0 of the Act as 

well as sub-section (I H) of section 206C of the Act, tax is required to be deducted 

under section 194-0 of the Act. The transaction shall come out of the purview of sub-

section (I H) of section 206C of the Act after tax has been deducted by the e-commerce 

operator on that transaction. Once the e-commerce operator has deducted the tax on a 

transaction, the seller is not required to collect the tax under sub-section (I H) of section 

206C of the Act on the same transaction. It is clarified that here primary responsibility 

is on e-commerce operator to deduct the tax under section 194-0 of the Act and that 

responsibility cannot be condoned if the seller has collected the tax under sub-section 

(I H) of section 206C of the Act. This is for the reason that the rate of TDS under 

section 194-0 is higher than rate of TCS under sub-section (I H) of section 206C ofthe 

Act. 

(v) If a transaction is both within the purview of section 194-Q of the Act as well as 

sub-section (I H) of section 206C of the Act, the tax is required to be deducted under 

section 194-Q of the Act. The transaction shall come out of the purview of sub-section 

(1 H) of section 206C of the Act after tax has been deducted by the buyer on that 

transaction. Once the buyer has deducted the tax on a transaction, the seller is not 

required to collect the tax under sub-section (I H) of section 206C of the Act on the 

same transaction. However, if, for any reason, tax has been collected by the seller under 

sub-section (I H) of section 206C of the Act, before the buyer could deduct tax under 

section 194-Q of the Act on the same transaction, such transaction would not be 

subjected to tax deduction again by the buyer. This concession is provided to remove 

difficulty, since tax rate of deduction and collection are same in section 194Q and sub-

section (IH) of section 206C ofthe Act.

Income Tax News: वेतनभोगियों को बड़ी राहत, दो साल का रिटर्न फाइल न करने पर कटेगा दोगुना टीडीएस

आयकर विभाग का नया नियम एक जुलाई 2021 से लागू हो रहा है जिसमें दो वर्ष का रिटर्न फाइल न करने वालों का दोगुना टीडीएस कटेगा लेकिन इससे वेतनभोगियों को राहत दी गई है। उनपर आयकर की 206एबी धारा लागू नहीं होगी।

जिन करदाताओं ने दो वर्ष से अपना आयकर रिटर्न फाइल नहीं किया है, एक जुलाई से उनका दोगुना टैक्स डिडक्शन एट सोर्स (टीडीएस) काटा जाएगा। कारोबारी, कमीशन एजेंट, ठेकेदार, प्रोफेशनल पर तो यह व्यवस्था लागू होगी, लेकिन वेतनभोगियों को इससे राहत रहेगी। उनके ऊपर यह धारा लागू नहीं होगी।

आयकर की धारा 206एबी एक जुलाई से लागू हो जाएगी। इस धारा के लागू होते ही जिन कारोबारियों, ठेकेदारों, कमीशन एजेंट ने दो वर्ष से रिटर्न फाइल नहीं किए हैं, उनका टीडीएस काटते समय जितनी भी टैक्स दर होगी, उसका दोगुना टीडीएस काटा जाएगा। इसमें एक और चीज है कि किसी भी तरह से यह पांच फीसद से नीचे नहीं होगा, यानी धारा 194क्यू के तहत 0.1 फीसद टैक्स काटा जाता है लेकिन उसका दोगुना 0.2 फीसद हुआ। इसलिए इसमें पांच फीसद टैक्स काटा जाएगा।

टैक्स सलाहकारोंं के मुताबिक अगर यह पांच फीसद से कम बन रहा है तो पांच फीसद बनेगा। इसमें पांच फीसद या दोगुना जो भी ज्यादा होगा, लागू होगा। जिन मामलों में 10 फीसद टीडीएस कटता है, 20 फीसद हो जाएगा। 206एबी के तहत वेतन के मामले में छूट मिली हुई है। इसके अलावा भविष्य निधि के एकत्र धन पर कटौती नहीं होगी। लाटरी या क्रासवर्ड प्रतियोगिता में जीती राशि, घुड़दौड़ में मिले इनाम इससे मुक्त होंगे।

एक जुलाई से यह नियम लागू हो रहा है। इसके तहत जिन लोगों ने दो वर्ष से रिटर्न फाइल नहीं किया है, उनका दोगुना टीडीएस कटेगा। इसमें दोगुना या पांच फीसद जो ज्यादा होगा, उसे काटा जाएगा। वेतन, भविष्य निधि के धन को मुक्त रखा गया है। 

In-depth analysis of Sections 206AB & 206CCA

Sections 206AB & 206CCA were inserted in the Income Tax Act, 1961 vide the Finance Act, 2021

-Section 206AB: Special provision for deduction of tax at source (TDS) for non-filers of ITR.

-Section 206CCA: Special provision for collection of tax at source (TCS) for non-filers of ITR.

These sections mandate higher rate of TDS/ TCS for certain non-filers (specified persons).

Applicability: Sections 206AB & 206CCA, both are applicable to specified persons.

Specified person means a person who satisfies both of the following conditions:

i. A person who has not filed ITRs for both of the 2 A.Ys. relevant to the 2 P.Ys. immediately prior to the P.Y. in which tax is required to be deducted/ collected, for which the time limit of filing ITR under section 139(1) has expired.

ii. Aggregate of TDS & TCS is ₹50,000 or more in each of the 2 P.Ys.

Clarification: For the purpose of checking the fulfilment of above- mentioned conditions, during the present F.Y. 2021-22, we need to check the persons who have not filed ITRs and have aggregate of TDS/ TCS of ₹50,000 or more during the P.Ys.:

2018-19 (A.Y. 2019-20)

2019-20 (A.Y. 2020-21)

Note: Specified person shall not include a non-resident who does not have a permanent establishment in India.

Non- applicability: Higher rate of TDS/TCS is not applicable in the following cases:

Section 206AB is not applicable in the following cases:

1. Non-resident who does not have a permanent establishment in India

2. Section 192 Salary

3. Section 192A Payment of accumulated balance due to an employee

4. Section 194B Winnings from lottery or crossword puzzle

5. Section 194BB Winning from a horse race

6. Section 194LBC Income in respect of investment in securitisation trust

7. Section 194N Payments of certain amount/amounts in cash

Section 206CCA is not applicable in the following case:

1. Non-resident who does not have a permanent establishment in India

Applicable w.e.f.: 1st July, 2021

Rate of TDS/TCS: Higher of the following:

206AB 206CCA

Twice the rate as provided in the relevant provision Twice the rate as provided in the relevant provision

Twice the rate in force 5%

5% 

Sections 206AB & 206CCA vis-à-vis Sections 206AA & 206CC:

If the provisions of section 206AA/206CC is applicable to a specified person, in addition to the provisions of section 206AB/206CCA, the tax shall be collected at higher of the two rates provided.

Sections 206AA & 206CC talks about the requirement to furnish PAN and the rate of TDS/TCS to be applicable in case of non-furnishing.  

Self-declaration: The Act does not provide for any such declaration but as a good practice a deductee/collectee can furnish a declaration on the letterhead of the Company along with a copy of ITR acknowledgments of last 2 F.Ys. to the concerned tax deductor/collector about the non-applicability of Section 206AB/206CCA upon them.

(A sample format of Declaration is attached at the end of this document)

COMPLIANCE CHECK FUNCTIONALITY FOR SECTIONS 206AB & 206CCA

With the advent of sections 206AB & 206CCA, it is quite obvious that it can lead to extra compliance burden of tax deductors & collectors. Further, to ease this compliance burden, the CBDT vide Circular No. 11 of 2021 F. No. 3701331712021-TPL dtd. 21st June, 2021. has come up with a new functionality which is named as “Compliance Check for Sections 206AB & 206CCA”. 

This functionality is available through reporting portal of the Income Tax.

The tax deductor/collector can feed the single PAN (PAN search) or multiple PANs (bulk search) of the deductee/collectee and can get a response from the functionality if such deductee/collectee is a specified person.

For PAN Search, response will be visible on the screen which can be downloaded in PDF format.

For Bulk Search, response would be in the form of downloadable file which can be kept for record.

Points to ponder:

1. List: A list of specified persons is prepared as on the start of the F.Y. 2021-22, taking P.Ys. 2018-19 & 2019-20as the two relevant P.Ys.

2. Names in the list: List contains name of taxpayers who did not file ITR for both A.Ys. 2019-20 and 2020-21and have aggregate of TDS & TCS of ₹50,000 or more in each of the two P.Ys.

3. No addition of new names:During the F.Y. 2021-22, no new names are addedin the list of specified persons. This is to reduce the burden of tax deductor/ collector from checking PAN of non-specified person more than once during a F.Y.

4. Removal of name from the list:

a. If any specified person files ITR (filed & verified) for A.Ys. 2019-20 and 2020-21during the F.Y. 2021-22, his name would be removedfrom the list of specified persons. This would be done on the date of filing of ITR.

b. If any specified person files ITR (filed & verified) for A.Y. 2021-22, his name would be removed from the list of specified persons. This would be done on the:

due date of filing of ITR for A.Y. 2021-22 or

date of actual filing of ITR (filed & verified)

whichever is later.

c. If the aggregate of TDS & TCS, in the case of a specified person, in the P.Y. 2020-21,is less than ₹50,000, his name would be removed from the list of specified persons. This would be done on the first due date under section 139(1) of the Act. For the A.Y. 2021-22, the due date is30th September, 2021.

d. Belated and revised TCS & TDSreturns of the relevant F.Ys. filed during the F.Y. 2021-22 would also be considered for removing persons from the list of specified persons.

5. Compliance check:The deductor/ collector may check the PAN in the functionality at the beginning of the F.Y. and then he is not required to check the PAN of non-specified person during that F.Y.

For instance: Let us assume that a deductor has 1000 vendors that he deals with. He can use the functionality in the bulk search mode and can get the result of all these 1000 PANs at one go. Let us assume that the functionality has shown that out of these 1000 PANs, 5 PANs are specified persons for the purposes of sections 206AB and 206CCA of the Act. Now with respect of the remaining 995 PANs, it is clear that they are not in the list of specified persons for that F.Y. Since no new name would be added in the list of specified persons during the F.Y., the deductor or collector can be assured that 995 persons would remain outside the list of specified persons during that F.Y. Thus, deductor or collector need not to check again with respect to 995 PANs. There are chances that the 5 PANs which are of specified persons may be removed from the list during the F.Y. and for that, there will be need to recheck at the time of making tax deduction or tax collection.

6. Fresh list: The list would be drawn afresh at the start of each F.Y. and the above process would have to be repeated.

Disclaimer: The author is based in Jabalpur and is a Practicing Company Secretary dealing in Corporate, Legal & Taxation services. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Author recommends that professional advice is sought before taking any action on specific issues.

SAMPLE FORMAT

Date:    

To,

_____________

_____________

_____________

Subject: Declaration regarding non-applicability of Sections 206AB/206CCA of the Income Tax Act, 1961.

Dear Sir/Ma’am,

This letter is to inform you that two new sections, namely, Section 206AB & 206CCA are inserted in the Income Tax Act, 1961 vide the Finance Act, 2021 for deducting TDS/collecting TCS at higher rate from specified persons. The said sections are applicable w.e.f. 1st July, 2021.

Specified person means a person who has not filed Income Tax Returns (ITRs) for last 2 assessment years. immediately prior to the previous year in which tax is required to be deducted/ collected, for which the time limit of filing ITR under section 139(1) has expired and the aggregate of TDS & TCS is ₹50,000 or more in each of the 2 previous years.

In this regard, I/we_____________, having PAN: _________, hereby declare that I/we have duly filed my/our ITRs for the two previous years immediately preceding the previous year in which tax is required to be deducted/collected and hence the provisions of Sections 206AB & 206CCA are not applicable on me/us.

The acknowledgment receipts as received from the Income Tax Department are hereby attached as Annexure-I.

Further, I/we do hereby declare that the information contained in this letter (including annexures), is true and correct to the best of my/our knowledge and belief. I/we undertake to indemnify you/your entity for any tax liability, interest or penal consequences that may arise due to incorrect reporting/declaration.

Yours Sincerely,

For and on behalf of (name of the organization)

(Name of the authorized signatory)

(Designation)

(Signature)

माल की खरीद पर टीडीएस धारा 194Q और धारा 206(C)(1H) से जुडा एक बड़ा सवाल

माल की खरीद पर टीडीएस धारा 194Q और धारा 206(C)(1H) से जुडा एक बड़ा सवाल सुधीर हालाखंडी

दिनाक 1 जुलाई 2021 से आयकर कानून में टीडीएस को लेकर एक नई धारा को194 Q लागू हो रही है जिसके अनुसार खरीददारों को अपने विक्रेताओं से प्राप्त माल की खरीद पर टीडीएस काटना है . इस धारा के सम्बन्ध में एक विस्तुत लेख पहले ही मैंने लिख दिया था लेकिन अब एक सवाल जो बार बार पूछा जा रहा है वह है कि जब क्रेता और विक्रेता दोनों का ही टर्नओवर 31 मार्च 2021 को समाप्त वर्ष के लिए 10 करोड़ रूपये से अधिक हो तो क्रेता को टीडीएस काटना है या विक्रेता को टीसीएस एकत्र करना है ? या फिर दोनों ही को अपनी – अपनी जगह टीडीएस और टीसीएस जो भी लागू हो काटना या एकत्र करना है ?

आइये इस सवाल का जवाब जानने का प्रयास करें

लेकिन आइये पहले संक्षेप में समझ लें कि यह नईं धारा 194 Q क्या है ताकि हमें यह समझ आ सके कि यह समस्या क्या है जिसको लेकर यह सवाल पूछा गया है ?

जिन खरीददारों का बीते हुए वित्तीय वर्ष में टर्नओवर , सकल प्राप्ति या बिक्री 10 करोड़ रूपये से अधिक थी , माल की खरीद पर यह टीडीएस की धारा 194Q सिर्फ उन्ही खरीददारों पर ही लागू है . इस प्रकार 31 मार्च 2021 को जो वर्ष समाप्त हुआ है उस वर्ष में जिन क्रेताओं का टर्नओवर 10 करोड़ रूपये से अधिक था उन्ही को अपने “निवासी” विक्रेता से एक वितीय वर्ष में 50 लाख रूपये से ऊपर की खरीद होने पर से टीडीएस काटना है. यह टीडीएस पहले 50 लाख रूपये की रकम छोड़ते शेष रकम पर काटा जाना है . इस टीडीएस की दर 0.1% होगी.- 1 जुलाई 2021 से यह प्रावधान लागू है.

आपको ध्यान होगा कि पिछले वर्ष 1 अक्टूबर 2020 से इसी तरह का एक प्रावधान धारा 206(C)(1H) माल की बिक्री को लेकर आया था और वह भी अभी लागू ही है इसलिए अब यह सवाल उठना स्वाभाविक ही है . आइये एक उदहारण के जरिये समझें कि यह सवाल किन हालत में उठ रहा है

X & CO एक विक्रेता है और Y & CO एक क्रेता है। एक्स एंड कंपनी की बिक्री 31 मार्च 2021 को समाप्त होने वाले वर्ष के लिए 100 करोड़ रुपये है। Y & CO की बिक्री 31 मार्च 2021 को समाप्त होने वाले वर्ष के दौरान 15 करोड़ रूपये थी.

अब चूँकि दोनों की ही बिक्री बीते हुए वर्ष में 10 करोड़ रूपये से अधिक है इसलिए यदि विक्रेता धारा 206(C)(1H) के तहत और क्रेता 194 Q के तहत आता है इसलिए तो सवाल यह है कि इसके बीच के व्यवहार पर , जहां भी लागु हो , क्रेता को टीडीएस काटना है या विक्रेता को टीसीएस एकत्र करना है .

आइये देखें की इस सवाल का जवाब क्या है ?

इस स्तिथि में आप ध्यान रखें कि कानूनी प्रावधान यह है कि क्रेता को 194Q के तहत टीडीएस काटना है और वह यह कर काट लेता है तो विक्रेता को इस प्रकार के व्यवहार पर धारा 206 (C) (1H) के तहत टीसीएस एकत्र करने की आवश्यकता नहीं है .

यहाँ यह भी ध्यान रखें कि क्रेता को हर हाल में ऐसे व्यवहार पर टीडीएस काटना ही है भले ही विक्रेता ने गलती से या सूचना के अभाव में टीसीएस काट लिया है तब भी क्रेता टीडीएस काटने से मुक्त नहीं होता है और यदि क्रेता टीडीएस काट कर जमा नहीं कराता है तो उस पर वे सभी प्रावधान लागू होंगें जो कि टीडीएस नहीं काटने और नहीं जमा कराने पर होते हैं जिनमें क्रय की गई राशि के 30 प्रतिशत रकम को आय में जोड़ने का प्रावधान भी है जो कि टीडीएस रिटर्न भरने के लिए आयकर की धारा 139 (1) में तारीख तक भी टीडीएस जमा नहीं कराने पर लागू होता है.

इस स्तिथि में क्रेता को X अपने विक्रेता को इसी समय यह सूचित कर देना चाहिए कि उसकी जिम्मेदारी धारा 194Q के तहत टीडीएस काटने की है और वह अब से ख़रीदे गए माल पर टीडीएस काटेगा अत: विक्रेता अब 1 जुलाई 2021 से टीसीएस एकत्र करना बंद कर दे.

क्रेता और विक्रेता के बीच पर्याप्त संवाद के जरिये इस समस्या को निपटा जा सकता है और यह संवाद समय रहते हो जाना चाहिए ताकि एक ही व्यवहार पर दो करों के कटने/ एकत्र होने से बचाया जा सके. आइये देखें कि इस सम्बन्ध में क्रेता को अपने विक्रेता को लिखना क्या है . इस सम्बन्ध में एक पत्र का नमूना अगले पृष्ट पर दे रहे हैं ,

इसे ध्यान से देखें और वांछित संशोधन कर इसे उपयोग करें एवं अपने विक्रेता को इसी समय भेज दें क्यों कि अब 1 जुलाई 2021 बहूत दूर नहीं है .

श्रीमान प्रबंधक महोदय

विक्रय विभाग/लेखा विभाग

एक्स एंड कंपनी

नई दिल्ली

श्रीमान,

विषय – धारा 194Q . के तहत टीडीएस काटने की हमारी जिम्मेदारी के सम्बन्ध में .

उपरोक्त के संदर्भ में यह सूचित किया जाता है कि 31 तारीख 2021 को समाप्त होने वाले वर्ष के लिए हमारी बिक्री 10 करोड़ रूपये से अधिक है और हम आपकी कंपनी से हमारी खरीद पर टीडीएस काटने के लिए धारा 194Q द्वारा जिम्मेदार हैं और 1 जुलाई 2021 से हम हमारी खरीद आयकर कौन की धारा 194 Q के तहत टीडीएस काट लेंगे अत: आपसे निवेदन है कि आपके द्वारा हमें विक्रय किये गए माल पर आयकर कौन की धारा 206 (C) (1H) के तहत टीसीएस काटना बंद कर दें .

धन्यवाद

भवदीय

वास्ते Y & CO

(अधिकृत हस्ताक्षरकर्ता)

ध्यान रखें कि माल की खरीद पर धारा 194Q टीडीएस काट लेने पर विक्रेता को टीसीएस से मुक्त कर दिया गया है लेकिन ऐसी कोई मुक्ति क्रेता को विक्रेता के टीसीएस धारा 206(C)(1H) काट लेने पर नहीं है. इसलिए माल के क्रय पर यदि धारा 194Q के तहत टीडीएस लागू होता है तो उसे यह टीडीएस काटना ही है और इसे जमा भी करना है.

क्या अब विक्रेता पूरी तरह से 206(C)(1H) से पूरी तरह मुक्त हो गए हैं ?

ये भी एक सवाल है जो पूछा गया है तो ऐसा नहीं है . जो क्रेता डीलर्स धारा 194 Q के तहत टीडीएस काट लेंगे उनके मामलों में तो वे टीसीएस माल के विक्रय पर नहीं एकत्र करेंगे लेकिन जिन क्रेता डीलर्स पर धारा 194Q लागू नहीं होती है उनका तो टीसीएस तो उन्हें एकत्र कर जमा करना ही है. इसके लिए उन्हें भी अपने क्रेताओं से आंकड़े एकत्र करने होंगे जिससे तय हो सके कि उनका टीसीएस एकत्र करना है या नहीं . और यहाँ याद रखे कि बिक्री के यह आंकड़े हर वर्ष लेने होंगे क्यों बिक्री की रकम तो हर साल बदलती है.

Income Tax Return भरने की अंतिम तारीख बढ़ी, रिटर्न भरने से पहले जान लें सभी जरूरी बातें

Income Tax Return Deadline: इंडिविजुअल टैक्सपेयर्स जो मार्च 31 को खत्म हुए पिछले वित्त वर्ष (2020-21) के लिए ITR-1 या ITR 4 दाखिल करते हैं, उन्हें 31 जुलाई तक ये करना होता है. कंपनियों और फर्म जिनके अकाउंट का ऑडिट जरूरी होता है, उनके लिए ये डेडलाइन 31 अक्टूबर होती है. लेकिन टैक्सपेयर्स की सुविधाओं को ध्यान में रखते हुए ये तारीखें अब आगे बढ़ गईं हैं.

Income Tax Return Deadline: इनकम टैक्स विभाग ने कोरोना महामारी की वजह से वित्त वर्ष 2020-21 के लिए IT रिटर्न दाखिल करने की डेडलाइन बढ़ा दी है. इससे न केवल इंडिविजुअल टैक्सपेयर्स को बड़ी राहत मिलेगी बल्कि मौजूदा माहौल में परेशानियों से जूझ रहे कारोबारियों के ऊपर से भी कंप्लायंस का बोझ कम होगा. 

इनकम टैक्स नियम के मुताबिक, इंडिविजुअल टैक्सपेयर्स जो मार्च 31 को खत्म हुए पिछले वित्त वर्ष (2020-21) के लिए ITR-1 या ITR 4 दाखिल करते हैं, उन्हें 31 जुलाई तक ये करना होता है. कंपनियों और फर्म जिनके अकाउंट का ऑडिट जरूरी होता है, उनके लिए ये डेडलाइन 31 अक्टूबर होती है. लेकिन टैक्सपेयर्स की सुविधाओं को ध्यान में रखते हुए ये तारीखें अब आगे बढ़ गईं हैं. 

ITR की नई डेडलाइन

इंडिविजु्अल्स अब वित्त वर्ष 2020-21 में कमाई गई इनकम के लिए टैक्स रिटर्न 31 जुलाई की बजाय 30 सितंबर तक भर सकते हैं. सेंट्रल बोर्ड ऑफ डायरेक्ट टैक्सेस (CBDT) ने कंपनियों के लिए रिटर्न फाइल करने की डेडलाइन 31 अक्टूबर से बढ़ाकर 30 नवंबर, 2021 कर दी है. 

रिवाइज्ड रिटर्न के लिए नई डेडलाइन

कोई टैक्सपेयर जिसने अपना रिटर्न डेडलाइन के बाद भी नहीं भरा है, वो Belated ITR फाइल कर सकता है, लेकिन इसके लिए उसे पेनल्टी भरनी होगी. Belated ITR or Revised ITR भरने की अंतिम तारीख अब 31 जनवरी, 2022 है. 

फॉर्म-16 इश्यू करने की डेडलाइन 

एक सर्कुलर के मुताबिक, CBDT ने एम्पलॉयर की ओर से कर्मचारी को दिए जाने वाले फॉर्म 16 देने की डेडलाइन भी बढ़ाकर 15 जुलाई, 2021 कर दी है. पहले इसकी लास्ट डेट 15 जून थी. 

नया टैक्स सिस्टम

सरकार ने 1 अप्रैल 2020 से टैक्सपेयर्स के लिए एक नया ही टैक्स सिस्टम शुरू किया है. इस नए टैक्स सिस्टम के तहत क्या बदलेगा, किस टैक्सपेयर के लिए ये फायदेमंद है और किसे इसका चुनाव नहीं करना चाहिए, इसे समझना जरूरी है. पहले समझें कि नए स्लैब में क्या है.

सालाना 2.5 लाख रुपये तक कमाई पर कोई टैक्स नहीं देना होगा

2.5 लाख से 5 लाख रुपये की सालाना कमाई पर 5 परसेंट टैक्स लगेगा

5-7.5 लाख रुपये की सालाना कमाई पर 10 परसेंट टैक्स लगेगा

7.5-10 लाख रुपये की सालाना कमाई पर 10 परसेंट टैक्स लगेगा

10-12.5 लाख रुपये की सालाना कमाई पर 20 परसेंट टैक्स देना होगा

12.5-15 लाख रुपये की सालाना कमाई पर 25 परसेंट टैक्स लगेगा

15 लाख से ऊपर सालाना कमाई पर 30 परसेंट टैक्स देना होगा

नए टैक्स स्लैब में स्विच करें या नहीं

टैक्सपेयर पुराने टैक्स स्लैब से नए स्लैब में जा सकते हैं और वे नए स्लैब से फिर पुराने स्लैब में वापस आ सकते हैं. हालांकि यह छूट कुछ खास वर्ग के टैक्सपेयर्स के लिए ही है. नौकरीपेशा नये स्लैब में जाकर वापस आ सकते हैं. नौकरीपेशा हर वित्त वर्ष में टैक्स स्लैब स्विच कर सकते हैं. जिनकी सैलेरी, किराये या अन्य सोर्स से आय है, वे हर बार टैक्स स्लैब बदल सकते हैं. अगर आपकी बिजनेस से इनकम है तो आप सिर्फ एक बार शिफ्ट कर सकते हैं. बिजनेसमैन एक बार स्विच करने पर वापस नहीं आ सकते. 

आप डॉक्टर, वकील, इंजीनियर या चार्टर्ड अकाउंटेंट हैं तो नई स्कीम में आ सकते हैं. खास बात ये है कि आप हर साल नई या पुरानी स्कीम के बीच चुन सकते हैं.

GSTR-1 due date for April 2021 extended to 26th May 2021

 GSTR-1 due date for April 2021 extended to 26th May 2021 In respect of April, 2021 to 26th May, 2021 vide Notification No. 12/2021- Central Tax Dated: 1st May, 2021.

Ministry of Finance
(Department of Revenue)
(Central Board of Indirect Taxes and Customs)
New Delhi

Notification No. 12/2021- Central Tax Dated: 1st May, 2021

G.S.R. 308(E).—In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 83/2020 – Central Tax, dated the 10th November, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 699(E), dated the 10th November, 2020, namely:

In the said notification, after the proviso, the following proviso shall be inserted, namely:‑

“Provided further that the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the said rules for the registered persons required to furnish return under sub-section (1) of section 39 of the said Act, for the tax period April, 2021, shall be extended till the twenty-sixth day of the month succeeding the said tax period.”.

Filing NIL Form GSTR-1 through SMS on GST Portal

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Filing NIL Form GSTR-1 through SMS on GST Portal

A taxpayer may now file NIL Form GSTR-1, through an SMS, apart from filing it through online mode, on GST Portal.

To file NIL Form GSTR-1 through SMS, the taxpayer must fulfil following conditions:

They must be registered as Normal taxpayer/ Casual taxpayer/ SEZ Unit / SEZ Developer.

They have valid GSTIN.

Phone number of Authorized signatory is registered on the GST Portal.

No data should be in saved or submitted stage for Form GSTR-1 on the GST Portal, related to that respective month.

NIL Form GSTR-1 can be filed anytime on or after the 1st of the subsequent month for which the return is to be filed.

Taxpayer should have opted for the filing frequency as either monthly or quarterly.

NIL Form GSTR-1 for a tax period must be filed by the taxpayer if:

There are no Outward Supplies (including supplies on which tax is to be charged on reverse charge basis, zero rated supplies and deemed exports) during the month or quarter for which the return is being filed.

No Amendments is to be made to any of the supplies declared in an earlier return.

No Credit or Debit Notes to be declared/amended.

No details of advances received for services to be declared or adjusted.

Steps to File Nil Form GSTR 1 through SMS is as below:

Send SMS to 14409 number to file Nil Form GSTR-1 - NIL space Return Type space GSTIN space Return Period

For Monthly Filing for Tax Period April 2020: NIL R1 07AQDPP8277H8Z6 042020

For Quarterly Filing for Tax Period Apr-Jun 2020: NIL R1 07AQDPP8277H8Z6 062020

Send SMS again on the same number 14409 with Verification Code (For Example: Verification Code received here is 324961) to confirm filing of Nil Form GSTR-1.- CNF space Return Type space Code - CNF R1 324961

After successful validation of “Verification Code", GST Portal will send back ARN to same mobile number and on registered e-mail ID of the taxpayer to intimate successful Nil filing of Form GSTR-1 .

All the authorized representatives, for a particular GSTIN can file NIL Form GSTR-1 through

Clarification in respect of levy of GST on Director’s Remuneration.

Circular No: 140/10/2020 - GST

CBEC-20/10/05/2020

                                                              GST Government of India 

                                                Ministry of Finance Department of Revenue

                                             Central Board of Indirect Taxes and Customs

                                                                     GST Policy Wing

New Delhi, dated the 10th June, 2020

To

The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)

The Principal Director Generals / Director Generals (All) 

Madam/Sir, 

Subject: Clarification in respect of levy of GST on Director’s remuneration - Reg.

Various references have been received from trade and industry seeking clarification whether the GST is leviable on Director‟s remuneration paid by companies to their directors. Doubts have been raised as to whether the remuneration paid by companies to their directors falls under the ambit of entry in Schedule III of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) i.e. “services by an employee to the employer in the course of or in relation to his employment” or whether the same are liable to be taxed in terms of notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017 (entry no.6). 

2. The issue of remuneration to directors has been examined under following two different categories: 

(i) leviability of GST on remuneration paid by companies to the independent directors defined in terms of section 149(6) of the Companies Act, 2013 or those directors who are not the employees of the said company; and

(ii) leviability of GST on remuneration paid by companies to the whole-time directors including managing director who are employees of the said company. 

3. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act hereby clarifies the issue as below:

Leviability of GST on remuneration paid by companies to the independent directors or those directors who are not the employee of the said company 

4.1 The primary issue to be decided is whether or not a „Director‟ is an employee of the company. In this regard, from the perusal of the relevant provisions of the Companies Act, 2013, it can be inferred that:

a. the definition of a whole time-director under section 2(94) of the Companies Act, 2013 is an inclusive definition, and thus he may be a person who is not an employee of the company. 

b. the definition of „independent directors‟ under section 149(6) of the Companies Act, 2013, read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 makes it amply clear that such director should not have been an employee or proprietor or a partner of the said company, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed in the said company 

4.2 Therefore, in respect of such directors who are not the employees of the said company, the services provided by them to the Company, in lieu of remuneration as the consideration for the said services, are clearly outside the scope of Schedule III of the CGST Act and are therefore taxable. In terms of entry at Sl. No. 6 of the Table annexed to notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017, the recipient of the said services i.e. the Company, is liable to discharge the applicable GST on it on reverse charge basis.

4.3 Accordingly, it is hereby clarified that the remuneration paid to such independent directors, or those directors, by whatever name called, who are not employees of the said company, is taxable in hands of the company, on reverse charge basis.

Leviability of GST on remuneration paid by companies to the directors, who are also an employee of the said company

5.1 Once, it has been ascertained whether a director, irrespective of name and designation, is an employee, it would be pertinent to examine whether all the activities performed by the director are in the course of employer-employee relation (i.e. a “contract of service”) or is there any element of “contract for service”. The issue has been deliberated by various courts and it has been held that a director who has also taken an employment in thecompany may be functioning in dual capacities, namely, one as a director of the company and the other on the basis of the contractual relationship of master and servant with the company, i.e. under a contract of service (employment) entered into with the company.

5.2 It is also pertinent to note that similar identification (to that in Para 5.1 above) and treatment of the Director‟s remuneration is also present in the Income Tax Act, 1961 wherein the salaries paid to directors are subject to Tax Deducted at Source ('TDS') under Section 192 of the Income Tax Act, 1961 ('IT Act'). However, in cases where the remuneration is in the nature of professional fees and not salary, the same is liable for deduction under Section 194J of the IT Act.

 5.3. Accordingly, it is clarified that the part of Director‟s remuneration which are declared as „Salaries‟ in the books of a company and subjected to TDS under Section 192 of the IT Act, are not taxable being consideration for services by an employee to the employer in the course of or in relation to his employment in terms of Schedule III of the CGST Act, 2017

5.4 It is further clarified that the part of employee Director‟s remuneration which is declared separately other than „salaries‟ in the Company‟s accounts and subjected to TDS under Section 194J of the IT Act as Fees for professional or Technical Services shall be treated as consideration for providing services which are outside the scope of Schedule III of the CGST Act, and is therefore, taxable. Further, in terms of notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017, the recipient of the said services i.e. the Company, is liable to discharge the applicable GST on it on reverse charge basis.

6 It is requested that suitable trade notices may be issued to publicize the contents of this circular.

7. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow. 

(Yogendra Garg) 

Principal Commissioner  

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CMA Tanuj Rathore

Clarification on Refund Related Issues.

Circular No. 139/09/2020-GST

                                                              CBEC-20/06/03-2020 -

                                                              GST Government of India 

                                                Ministry of Finance Department of Revenue

                                             Central Board of Indirect Taxes and Customs

                                                                     GST Policy Wing

New Delhi, Dated the 10th June, 2020 

To, 

The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) 

The Principal Director Generals/ Director Generals (All) 

Madam/Sir

Subject: Clarification on refund related issues – reg.

Various representations have been received seeking clarification on the issue relating to refund of accumulated ITC in respect of invoices whose details are not reflected in the FORM GSTR-2A of the applicant. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law in this regard across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the issues detailed hereunder: 

2. Circular No.135/05/2020 – GST dated the 31st March, 2020 states that: 

“5. Guidelines for refunds of Input Tax Credit under Section 54(3) 

5.1 In terms of para 36 of circular No. 125/44/2019-GST dated 18.11.2019, the refund of ITC availed in respect of invoices not reflected in FORM GSTR-2A was also admissible and copies of such invoices were required to be uploaded. However, in wake of insertion of sub-rule (4) to rule 36 of the CGST Rules, 2017 vide notification No. 49/2019-GST dated 09.10.2019, various references have been received from the field formations regarding admissibility of refund of the ITC availed on the invoices which are not reflecting in the FORM GSTR-2A of the applicant. 

5.2 The matter has been examined and it has been decided that the refund of accumulated ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant. Accordingly, para 36 of the circular No. 125/44/2019-GST, dated 18.11.2019 stands modified to that extent.”

3.1 Representations have been received that in some cases, refund sanctioning authorities have rejected the refund of accumulated ITC is respect of ITC availed onImports, ISD invoices, RCM etc. citing the above-mentioned Circular on the basis that the details of the said invoices/ documents are not reflected in FORM GSTR-2A of the applicant.

3.2 In this context it is noteworthy that before the issuance of Circular No. 135/05/2020- GST dated 31st March, 2020, refund was being granted even in respect of credit availed on the strength of missing invoices (not reflected in FORM GSTR-2A) which were uploaded by the applicant along with the refund application on the common portal. However, vide Circular No.135/05/2020 – GST dated the 31st March, 2020, the refund related to these missing invoices has been restricted. Now, the refund of accumulated ITC shall be restricted to the ITC available on those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant. 

4. The aforesaid circular does not in any way impact the refund of ITC availed on the invoices / documents relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) etc.. It is hereby clarified that the treatment of refund of such ITC relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) will continue to be same as it was before the issuance of Circular No. 135/05/2020- GST dated 31st March, 2020.

5. It is requested that suitable trade notices may be issued to publicize the contents of this circular 

6. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Board. Hindi version would follow.

(Yogendra Garg) 

Principal Commissioner 

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CMA Tanuj Rathore

Government rolls out facility of filing of NIL GST Return through SMS

In a significant move towards  taxpayer facilitation, the Government has today onwards allowed filing of NIL GST monthly return in FORM GSTR-3B through SMS. This would substantially improve ease of GST compliance for over 22 lakh registered taxpayers who had to otherwise log into their account on the common portal and then file their returns every month. Now, these taxpayers with NIL liability need not log on to the GST Portal and may file their NIL returns through a SMS.

2. For this purpose, the functionality of filing Nil FORM GSTR-3B through SMS has been made available on the GSTN portal with immediate effect. The status of the returns so filed can be tracked on the GST Portal by logging in to GSTIN account and navigating to Services>Returns>Track Return Status.

Press Release : 8th June 2020

The procedure to file Nil returns by SMS is as follows: -

Step	SMS to 14409	Receive from VD-GSTIND
Initiate Nil Filing	NIL<space>3B<space>GSTIN<space>Tax period Ex. NIL 3B 09XXXXXXXXXXXZC 052020	123456 is the CODE for Nil filing of GSTR3B for09XXXXXXXXXXXZC for period 052020. Code validity 30 min.
Confirming Nil Filing	CNF <space>3B<space>Code Ex. CNF 3B 123456	Your, 09XXXXXXXXXXXZC, GSTR3B for 052020 is filed successfully and acknowledged vide ARN is AA070219000384. Please use this ARN to track the status of your return.
For Help, anytime	HELP<Space>3B Ex. Help 3B	To file NIL return of GSTIN for Mar 2020: NIL 3B 07CQZCD1111I4Z7 032020 To confirm Nil filing: CNF 3B CODE More details www.gst.gov.in

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CMA Tanuj Rathore

CGST Notification No-43/2020- Central Tax ,dt. 16.05.2020:- Seeks to bring into force Section 128 of Finance Act, 2020 in order to bring amendment in Section 140 of CGST Act w.e.f. 01.07.2017.

16th May 2020, GST Department announced :- 

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Indirect Taxes and Customs

Notification No. 43/2020 – Central Tax

New Delhi, the 16th May, 2020

G.S.R. ….(E).— In exercise of the powers conferred by sub-section (2) of section 1 of the Finance

Act, 2020 (12 of 2020) (hereafter in this notification referred to as the said Act), the Central

Government hereby appoints the 18th day of May, 2020, as the date on which the provisions of

section 128 of the said Act, shall come into force.

[F. No. CBEC-20/06/09/2019-GST]

(Pramod Kumar)

Director, Government of India

For Complete Notification please follow the ling below :-

CGST Notification No-43/2020- Central Tax ,dt. 16.05.2020:- Seeks to bring into force Section 128 of Finance Act, 2020 in order to bring amendment in Section 140 of CGST Act w.e.f. 01.07.2017.

CMA Tanuj Rathore

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Press Release dated 13 May 2020 – Income tax Date Extended, Audit date extended, Collateral Free loan to MSME, MSME definition is revised, TDS/TCS rate is reduced by 25% on all sections and many more

*Important points of the Press conference of Honorable FM:*

 

 *Six major steps for MSME*

1. Collateral Free Automatic Loan to MSME. No guarantee required. Period 4 Years. No principal repayment for 1 year.
2. Stressed MSME: Subordinate Debt 20,000 crore

3. MSME doing viable business: 50,000 cr. equity infusion for expansion
4.     Definition of MSME changed: 

a. Micro: Limit revised upward Investment  upto 1 cr. or  Turnover upto 5 cr.

b. Small: Limit revised upward Investment  upto 10 cr. or  Turnover upto 50 cr.

c. Medium: Limit revised upward Investment  upto 20 cr. or  Turnover upto 100 cr.

d. No difference in manufacturing and service sector for Micro Enterprises

5. Government Tenders: Global tenders will be disallowed upto 200 cr.

6. E market linkage for MSME. Within next 45 days all payments will be made to MSME.

 EPF: For June, July and August will be paid by Government (72,22,000 employees will be benefitted). Total Rs. 2500 benefit cr.

 EPF: Statutory PF deposit limit reduced from 12% to 10% for next 3 months. (6,750 cr.) (except CG and PSU’s)

*NBFC, HFC & MFI*; Rs. 30,000 cr. Special liquidity scheme

Partial credit guarantee scheme for NBFC: Rs. 45,000 cr scheme. Govt. of India will be guarantor. 20% will be borne by GOI.

 *Discom:* Liquidity crisis. Rs. 90,000 cr. infused for improving Liquidity crises. This amount will be paid by PFC and REC.

 *Contractors:* Extension upto 6 months to comply with contract conditions.

 *Real Estate:* Coviid 19, an event of ‘Force Majeure’. Registration and Completion extended for 6 months for all projects expiring o or after 25.03.2020

 *Direct tax:* 

– TDS rates reduced by 25% of existing rates from tomorrow to 31.03.2021(Non salaried to residents and TCS) Payment for – VSVS extending upto 31.12.2020. pay without any additional amount.

– Pending refunds of charitable trusts, non corporate business, proprietorship, partnership, LLP and society will be issued immediately.

– *Due dates of IT return for FY 2019-20*

Earlier 31.07.2020 & 31.10.2020 Now 30.11.2020

Tax Audit due date: Earlier 30.09.2020  Now 31.10.2020

– *Date of assessment extended*

From those barring on 30.09.2020 to 31.12.2020

From those barring on 31.12.2021 to 30.09.2021

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INCOME TAX DEPARTMENT ISSUES A CIRCULAR N0. 11/2020, IN RESPECT OF RECIDENTIAL STATUS U/S 6 OF THE INCOME TAX ACT, 1961

8th May 2020, Income Tax Department announced :-

Ministry of Finance Department of Revenue 

Central Board of Direct Taxes 

​Clarification in respect of residency under section 6 of the Income-tax Act,1961 !New 8 May 2020

Section 6 of Income Tax Act, 1961 contains the provisions relating to determination of residency of an individual, as to whether he is resident in India of non-resident or  ordinarily resident, is department, inter-alia, on the the period for which the person is in India during the previous year or years preceding the the previous years.

2.     Various representation have been received stating that there is number of individuals who had come on a visit to India during the previous year 2019-20 for a particular duration and intended to leave India before the end of the previous year for maintaining there status as non-resident or  ordinarily resident in India. However, due to declaration of lockdown and suspension of international flights owing to outbreak of Novel Corona Virus (COVID-19), they are required to prolong their stay in India. Concern has been expressed that this extra stay in India may make them a resident of India under section 6 of this Act.

(a) has been unable to leave India on or before of 31st March,  2020, his period of stay in India from 22nd March, 2020, shall not be taken into the account; or

(b) has been quarantined in India on account of Novel Corona Virus (COVID-19) on or after 1st March, 2020, and has departed on an evacuation flight on or before 31st March, 2020, or has been unable to leave India on of before 31st March, 2020, his period of stay from the beginning of his quarantine to his date of departure or 31st March, 2020, as the case may be, shall not to be taken into account; or

(c) has departure on an evacuation flight on or before 31st March, 2020, his period of stay in India from 22nd March, 2020 to his date of departure shall not to be taken into account.

Cirular No. 11/2020 : ​Clarification in respect of residency under section 6 of the Income-tax Act,1961 !New 8 May 2020

CMA Tanuj Rathore

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GST Circular No. 138/08/2020 :- Seeks to clarify 'Issues in respect of challenges faced by the registered persons in implementation of provisions of GST Laws'

    6th May 2020, GST Department announced :- 

 Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST Laws-reg. 

Circular No.136/06/2020-GST, dated 03.04.2020 and Circular No.137/07/2020-GST, dated 13.04.2020 had been issued to clarify doubts regarding relief measures taken by the Government for facilitating taxpayers in meeting the compliance requirements under various provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) on account of the measures taken to prevent the spread of Novel Corona Virus (COVID-19). Post issuance of the said clarifications, certain challenges being faced by taxpayers in adhering to the compliance requirements under various other provisions of the CGST Act were brought to the notice of the Board, and need to be clarified.

For Complete Circular /Order please click on the ling below :-

LINK: GST Circular No. 138/08/2020 :- Seeks to clarify 'issues in respect of challenges faced by the registered persons in implementation of provisions of GST Laws.'

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CGST Notification No-42/2020- Central Tax ,dt. 05-05-2020:-Seeks to extend the due date for furnishing FORM GSTR-3B, Jan-March, 2020 returns for the taxpayers registered in Ladakh.

                       5th May 2020, GST Department announced :- 

In the said notification, in the first paragraph, for the sixth proviso, the following provisos shall be substituted, namely: – 

“Provided also that the return in FORM GSTR-3B of the said rules for the months of November, 2019 to February, 2020 for registered persons whose principal place of business is in the Union territory of Jammu and Kashmir, shall be furnished electronically through the common portal, on or before the 24th March, 2020: 

 Provided also that the return in FORM GSTR-3B of the said rules for the months of November, 2019 to December, 2019 for registered persons whose principal place of business is in the Union territory of Ladakh, shall be furnished electronically through the common portal, on or before the 24th March, 2020: 

 Provided also that the return in FORM GSTR-3B of the said rules for the months of January, 2020 to March, 2020 for registered persons whose principal place of business is in the Union territory of Ladakh, shall be furnished electronically through the common portal, on or before the 20th May, 2020.”. 

2. This notification shall be deemed to come into force with effect from the 24th Day of March, 2020

For Complete Notification please follow the ling below :-

CGST Notification No-42/2020- Central Tax ,dt. 05-05-2020:-Seeks to extend the due date for furnishing FORM GSTR-3B, Jan-March, 2020 returns for the taxpayers registered in Ladakh.

CMA Tanuj Rathore

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