The Ministry of Corporate Affairs notified The Companies (IND AS) Amendment Rules 2020

The Ministry of Corporate Affairs notified The Companies (IND AS) Amendment Rules 2020

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www.carajput.com; MCA Amendment rules,2020; IND AS

The MCA has informed the Companies (Indian Accounting Standards) Rules on Amendment, 2020. The Rule and law amend the Companies Regulations (Indian Accounting Standards), 2015. Amendments to the following IndAS have been notified so far

www.carajput.com;MCA Amendment rules,2020

www.carajput.com; MCA Amendment rules,2020

On 24 July 2020, MCA issued the Companies (Ind AS) Amendment Rules, 2020, which will come into force on the date of its release in the Official Gazette. In Ind AS 1, Ind AS 8, Ind AS 10, Ind AS 34, Ind AS 37, Ind AS 103, Ind AS 107, Ind AS 109, and Ind AS 116 the amendments are primarily applicable. Here is a list of significant amendments:

IndAS 1 related to Presentation of Financial Statements- Definition of “Material” has been amended (applicable from April 1, 2020, prospectively),

IND AS 8 related to Operating Segments- Definition of “Material” has been amended (applicable from April 1, 2020, prospectively)

IndAS 103 related to Business Combinations- The business has been defined in more detail and an optional test to identify concentration on Fair value is given.

IndAS 107 related to Financial Instruments: Disclosures- Disclosures for uncertainty arising from interest rate benchmark reform.

IndAS 109 related to Financial Instruments- Temporary exceptions from applying specific hedge accounting requirements

IND AS 116 related to Leases- The clarifications on rent concessions to be accounted for as a lease modifications or not has been given.

IndAS 10 related to Events after the Reporting Period- Apart from the disclosure of non-adjusting event, the disclosure of an estimate of its financial effect, or a statement that such an estimate cannot be made

IndAS 34 related to Interim Financial Reporting- to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in financial statements presented for an interim period

IndAS 37 related to Provisions, Contingent Liabilities, and Contingent Assets- clarification on accounting for restructuring plans

For details notification Download 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Basic of Aadhar Card, Significance, Process, Aadhaar Linking with Pan

Importance’s and Process of PAN & Aadhaar linking

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www.carajput.com; Aadhar PAN

Aadhaar Card is a verifiable 12-digit identification number issued by India’s Unique Authority for Identification (UIDAI). It acts as evidence of identity and as proof of residence. PAN or Permanent Account Number is an alphanumeric identifier of ten characters issued by the Income Tax Department under the supervision of the Central Direct Tax Board (CBDT). It is necessary for income tax filings and also acts as proof of identity.

www.carajput.com;Link Aadhar and PAN

www.carajput.com; Link Aadhar and PAN

There are about a few days left to end PAN-Aadhaar linking completion date. Within the next few days, if PAN not linked to Aadhaar it becomes useless as from next month. Moreover, there is no need to worry regarding those who have already linked their PAN to Aadhaar.  The Ministry of Finance’s (CBDT) issued a notice clarifying the time limit for PAN-Aadhaar.

The CBDT statement said, “In some media sections it has been reported that certain PANs that are not linked to the Aadhaar number may be nullified. The central government has considered the matter and now the cut-off date for notifying the Aadhaar number and linking PAN with Aadhaar is —– unless formally exempted.

The Supreme Court claimed that quoting Aadhaar Card is necessary for the filing of income tax returns and the implementation of a new PAN. Section 139 AA(2) of the Income Tax Act states that as of 1 July 2017, every person with PAN who is qualified to obtain Aadhaar must notify tax authorities of his Aadhaar number

The Income Tax Department has listed various ways for income tax assesses to link their Aadhaar to PAN on its website – incometaxindia.gov.in.

What are the benefits of linking PAN and Aadhaar card  :

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www.carajput.com; benefits of Aadhar

PAN and Aadhaar are both considered proof of identity for resident Indians. The benefits of linking a PAN card to an Aadhaar Card are:

In the case of Individuals

  1. Linking the Aadhaar to the PAN would make the process of income tax filing simpler and much more convenient. It’ll also help an individual avoid the physical signature and digital signature process while filing income tax.
  2. It also helps an individual open a bank account electronically without any further documents being provided.
  3. The individual is given the option for verifying their tax filings with their own Aadhaar card.
  4. It will allow the individuals to display all transactions by log in to Income Tax.

In the case of Government

  • The multiple tax evasion PAN cards dilemmas will be solved as Aadhaar is linked to unique biometric identification. It will also help the government identify all transactions, thus reducing tax avoidance and increasing the government’s direct tax.
  • The Black-money issue must be curbed.
  • Tax evasion is a thing of the past. The huge taxpayer base would allow the government to lower the tax rate, as it will be compensated by higher wages.
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    www.carajput.com; benefits of Aadhar

Mistakes that may lead to Trouble to us.

The link can be easily made on the website of the income tax department, or even via SMS.

However, a number of PAN card holders have trouble making the link simply because the records of either the Income Tax Department or India’s Unique Identity Authority (UIDAI) have a mismatch.  The  I-T department issues PAN cards while Aadhaar cards are issued by the UIDAI

There may be at least three types of cases where linking between PAN-Aadhaar is expected to fail.

  • In case PAN-Aadhaar Name found Mismatch

    www.carajput.com;Link Aadhar and PAN

    www.carajput.com; Link Aadhar and PAN

Earlier, the UIDAI had a provision to permit linking in case of minor name differences but with effect from December 2017, the provision was deleted. Around the time, Aadhaar authentication was possible by using an OTP-based verification if the cardholder’s name had a minor change.

“It is hereby accepted to discontinue the provision of partial matching in demographic authentication in order to remove any chance of wrongful identity verification using demographic authentication,” a UIDAI memorandum said.

PAN cardholders have been asked also by the Income Tax department to ensure that the Aadhaar number and the name as per Aadhaar are exactly the same in the PAN card.

2) In case mismatch in Date of Birth of the person

www.carajput.com;Link Aadhar and PAN

www.carajput.com;Link Aadhar and PAN

If in either of the two documents you entered an incorrect birth date, you are in for some trouble. Aadhaar cars won’t be linked to a PAN card if your date of birth is not matched. In situations where the Aadhaar card only contains the year of birth then the records in the PAN card should match.

3) In case gender Mismatch found

In the worst cases where either PAN or Aadhaar accidentally mentions gender, the linking is bound to fail. “Like that of Aadhaar, the I-T department must confirm your name, date of birth, and gender as per PAN,” says the income tax e-filing portal.

What is the process when Aadhaar and PAN Mismatch?

In data mismatch cases the only solution is to have it rectified. For instance, if your name’s spelling in Aadhaar is wrong then get it corrected from UIDAI. If there is any error in the PAN card, get it corrected either from UTI or NSDL — the two agencies responsible for issuing PAN cards. Whenever the correction is done, you will make a successful attempt to complete the link again, this time.

How to link PAN card and Aadhaar card?

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www.carajput.com; Link Aadhar and PAN

An individual can link the PAN card and Aadhaar card through three ways:

  1. Go to Online using of Income-tax web site
  2. Which can be done through sending SMS
  3. Which can be done through filling up the form

 

Link Aadhaar & PAN through Income Tax E- Filing Website

www.carajput.com;Link Aadhar and PAN

www.carajput.com; Link Aadhar and PAN

Process 1: Visit the I-T Dept e-filing website. And find out that option of                            PAN-Aadhaar linking

Process2: File up your PAN  &  Aadhaar card number

Process3: Enter your name in the ‘Name as per AADHAAR’ mention as a category

Process4: Mark ‘I have the only year of birth in Aadhaar card,’ if you have                          only the birth year on the Aadhaar

Process5: Mark ‘I agree to validate my Aadhar details with UIDAI,’ if you                         agree to do so

Process6: Enter the captcha code on your screen.

Process7: Click on ‘Link Aadhaar’ option to request linking of PAN and                             Aadhaar

How to Link Aadhaar with Pan Card by sending SMS

 

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www.carajput.com; Link Aadhar and PAN

An individual can also link Aadhaar with PAN by sending SMS. The steps are as follow:

Process1. Type a message in UIDPAN<12 Digit Aadhaar><10 Digit PAN >                        format.

Process2. Send any message from your registered mobile number to either                        567678 or 56161.

Process3. If the information is right the Aadhaar will be successfully connected to PAN.

 PAN -Aadhaar Link by filling up the form

Individuals are also given the option to manually connect the Aadhaar to the PAN. The person will be required to visit the NSDL PAN Service Provider, complete the necessary form, and provide the relevant documents to connect  Aadhaar to the PAN card.

How to check Aadhar Link Status online with PAN card?

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www.carajput.com; Link Aadhar and PANAn individual can check whether or not his or her Aadhaar is connected to PAN. Following are the steps to check:

Process1. Continue to Visit the official                                                                                         https:/www.incometaxindiaefiling.gov.in / home website.

Process2. Click the ‘Aadhaar’ sub-option Link below the Quick Links option.

Process3. Continue. A new screen will pop up, clicking on ‘click here to                              view the status if you have already submitted a request for                                  Aadhaar link.’

Process4. Enter the details and click ‘Aadhaar Status View Link.’

The website will show the status of whether the Aadhaar is linked or not.

General terms of Aadhar card

  • It is a 12-digit unique number issued to citizens of India  by the Unique Identification Authority of India (UIDAI) after finishing an individual’s verification process.
  • Regardless of age and gender, anyone who wants to obtain a uniform identification across the country can apply for it.
  • Individuals can only enroll once to maintain the uniqueness of the Aadhaar card.
  1. Demographic Information: Name, DOB, Gender, Address, Email ID, Contact Number, etc.
  2. Biometric Information: Fingerprints, Two Iris Scans, and Facial Photograph.
  • Aadhaar card prevents the use of duplicate & false identities and is used as the essential identifier.
  • Aadhaar card has the power to modify Indian service distribution system. For example, it will make the government’s social security programmers for the poor, more crystalline  and thus reduce the pressure on them due to a reduction in identity duplicity.

Characteristics of Aadhar card

  • Singularity: As it is focused on demographic & biometric authentication it is unique in itself for each individual.
  • Flexibility: It offers the national portability facility as it can be validated electronically and individually.
  • Scalable Infrastructure Architecture: A centralized data management system is given, and authentication from anywhere in the nation can be performed electronically.
  • Singular number: It is a random number dependent on the demographics, along with an individual’s biometric attributes. It does not even monitor an individual’s class, culture, earnings etc.
  • Offline Confirmation: Offline Confirmation process will be as regulations stated by UIDAI.
  • Penalty: UIDAI can impose penalties against a person for failure to (i) comply with the rules / regulations in the act or UIDAI guidance (ii) provide the necessary details. Penalties can be as large as 1 crore.

Perks of Aadhar Card

  • For Government: There are many social security programmes in place that concentrate on the socially deprived classes / vulnerable communities to raise them. Through using Aadhaar card as a tool to recognise these individuals, the service delivery system will definitely be improved and the pressure on the exchequer will also be minimised.
  • For Individuals: In offline / online mode, provides a common source of identity verification across the country. If a person has an aadhaar card they can use it several times to check their identity.

Basic Requirement for Aadhar card

  • Indian resident
  • Children under the age 5 year- Baal aadhaar card
  • NRI /Foreigners remain in India for more than 12 years

Essential Document for Enrolment of Aadhar card

List of Identity and Address Proof;

  • Driving Licenses
  • Voter ID Card
  • Passport
  • Ration Card
  • Insurance Policy
  • Account Statement of Post Office /Passbook
  • Account Statement of Bank/ Passbook
  • Statement of Credit Card (not more the 3 month)
  • Electricity bill (not more the 3 month)
  • Water bill (not more the 3 month)
  • Telephone Bill (not more the 3 month)
  • photo ID card/ Service ID card Issued by PSU
  • Property Tax Receipt (not more than 1 year)

Process of Enrolment for Aadhar Card

  • Enrollment is free of charge.
  • Aadhaar Card Enrolment Centre: Visit with your identification & address proof to your nearest approved Aadhaar Enrolment Centre.
  • Supporting documents for proof of address & identity are specified above
  • If you do not have either of the above photo ID evidence then a Photo Identification certificate issued by a gazetted official would be valid as POI / POA.
  • If someone does not have a validated document, if his / her name appears in the family eligibility list, he / she will still enroll for Aadhar .
  • Even if no records are available for the same reason, the resident may take advantage of introducers at the aadhaar card enrollment centre.

There are 3 Ways for  Aadhaar Card enrolment:

  • Depending upon Document: Submit correct Identity Proof (POI) & Address Proof (POA);
  • Depending upon head of the family: Relationship proof (POR) must be formed by documentation with the family members.
  • Depending upon Introducers: An Introducer is an approved person with a valid Aadhaar number appointed by the registrar.

UIDAI or Office of the Registrar General of India (RGI) makes registration in all states / UT.

Regards

Rajput Jain and Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

SEBI extends time Line for June Quarter results to 15, Sept 2020.

SEBI extends the timeframe for filing the financial results of April-June to 15  September 2020.

 

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www.carajput.com; SEBI

Today SEBI extended the time for filing financial reports for the year, half-year and fiscal year ended June 30, 2020, to September 15, insignificant relief to companies. The SEBI Circular reported that it had received representations seeking an extension of time for submission of financial performance for the quarter or half-year ended 30 June 2020 due to its short time gap between the extended deadline for submission of financial results for the period ended 31 March 2020 and the quarter or half-year ended 30 June 2020.

Previously, due to the effects of the coronavirus pandemic, the regulatory body extended the period for submitting financial reports by specified companies for the quarter, half-year, or fiscal year ended 31, March 2020 to 31 July 2020.

For details refer to the circular

SEBI has extended the date from 30 June to 15 Sept 2020 for the filing of financial results

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST EVASION: DGGI took action against 3 Firm for tax evasion of Rs 600 Crore

GST-EVASION: DGGI took action against 3 companies for tax evasion of more than Rs 600 Crore

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www.carajput.com; GST Evasion

Three persons arrested on charges of tax evasion of Rs 600 Crore, i.e. for the issuance of fraudulent invoices without the actual supply of Rs 4,198 crores, and illegally transferred as ITC credit to different entities under the GST Act.

There was an argument against M/s. Reema Polychem Pvt. Ltd., M/s. Fortune Graphics Limited, & M/s. Ganpati Enterprises, which were found to be engaged in the issuance of invoices without any real supply of goods.

The case was identified and established by the officers on further data analytics from the case filed against one of the exporters, M / s Anannya Exim, which was protected by the entire India Joint Operation launched by DGGI-DRI in September 2019, against various exporters for fraudulently demanding IGST refunds on the basis of ineligible ITC.

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www.carajput.com; GST Evasion

In the course of the investigations conducted by DGGI Hqrs, it emerged that the three companies referred to above, namely M/s. Reema Polychem Pvt. Ltd. respectively. Ganpati Enterprises released invoices worth more than Rs. 4,100 Crore, with a tax sum of more than Rs. 600 Crore being transferred fraudulently as ITC credit to various entities.

The foregoing companies/firms shall be interested in the issuing of bills without any real supply of products. This case was found and established by officers on further review of the case filed against one of the exporters, namely M / s Anannya Exim, which was protected by DGGI-DRI’s entire operation in India on 11.09.2019, against different exporters for fraudulently demanded IGST refund on the basis of invalid ITC.

In this regard, three parties have been detained for committing offenses under the GST Act. The directors/owners of M/s. Reema Polychem Pvt. Ltd. is two of them who have been on the run and have constantly avoided presence at DGGI Offices.

The third man is the director of M/s AB Players Exports Pvt Ltd and the manager of various other export firms/companies which have received IGST refunds on the basis of counterfeit invoices provided by these companies.

All three were detained by DGGI (Hqrs.) for committing offenses, pursuant to Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, and ordered to be held under judicial custody by the Magistrate.

www.carajput.com; Prosecution in GST

www.carajput.com; Prosecution in GST

Even more inquiries on the subject are in the process

GST Return compliances calendar- Nov 2020

SALIENT FEATURES OF NEW GST SYSTEM IN INDIA

Key points of 42nd GST council Meeting headed By FM N. Sitharaman

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Meaning of relative under different act

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www.carajput.com; Tax

As per section 2(41) of the income tax act

“Relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual ;

As per sec 56

As per the Income-tax act, the term “relatives” is described in detail. As gift received in the form of cash, cheque, or good from your relative is fully exempt from tax. So if you receive gift money from any of your relatives listed below, you are not liable to pay any tax on the same.

Gift received from a relative is not taxable in hands of recipients under section 56 of Income Tax Act.

The persons who are considered as relatives are

In the case of individual

  1. Spouse of the individual
  2. Brother or sister of the individual
  3. Brother or sister of the spouse of the individual
  4. Brother or sister of either of the parents of the individual
  5. Any lineal ascendant or descendant of the individual
  6. Any lineal ascendant or descendant of the spouse of the individual
  7. The spouse of the person referred to in the above points

In case of HUF – Any member of the HUF

As per section 2(77) of the company act

A person shall be deemed to be a relative of another if,-

(a) They are members of a Hindu undivided family; or

(b) They are husband and wife; or

c) The one is related to the other in the manner indicated below

Sr.no Company`s act 2013
1 Father(including stepfather)
2 Mother(including stepmother)
3 Son(including step-son)
4 Son`s wife
5 Daughter
6 Daughter`s husband
7 Brother(including step-brother)
8 Sister(including step sisters)

 

Relationship Sec-2(41) of the income tax act Sec-56(2) –gift Sec-2(77) –foreign exchange management act
Spouse

 

Yes Yes Yes
Parents( father/mother) Yes Yes Yes
Brother /sisters Yes Yes Yes
Son/daughter Yes Yes Yes
Spouse of brother/sister No Yes No
Spouse of son/daughter No Yes Yes
Parent`s brother/sisters

and their spouse

No Yes No

 

Spouse`s brother /sister

and their spouse

No Yes No
Grand-Parents and

Grand Children

Yes Yes No
Spouse of Grand-

Children

No Yes No
Great-Grand-Parents

and Great-Grand-

Children

Yes Yes No
Spouse’s Parents,

Grand-Parents

and Great-Grand-

Parents

No Yes no

 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Section 234F -Fee (Penalty) for delay in filing Income-tax return

Under this section, the fee (penalty) is levied if the Income-tax return is not filed within the due date. It is likely to be increased from 1st April 2018 onward as per Section 234F of the Income Tax Act. Provisions of Section 234F of the Income Tax Act are as follows.

 Section 234F: New penalty for late filing of Income Tax Return under section 234F is introduced in Budget 2017. This penalty is applicable for the assessment year commencing from the 1st Day of April 2018. If a person who is compulsorily required to file Income Tax Return (ITR) under section 139, doesn’t file a return on time then he is liable to a penalty as follows

Total Income Return filed Fee (Penalty)
Exceeds Rs. 5 Lakh On or before 31st December of Assessment Year but after the due date Rs. 5,000/-
In any other case Rs. 10,000/-
Upto Rs. 5 Lakh After the due date Rs. 1,000/-

 

Let us discuss the above provision below:-

AMOUNT OF PENALTY

For a person with a Total Income of more than Rs. 5,00,000. The penalty amount would be as follows:-

  1. If ITR is filed on or before 31st December following the last date – Rs. 5,000
  2. If ITR is filed after 31st December – Rs. 10,000

For a person with Total Income of up to Rs. 5,00,000 – Rs. 1,000

Before 1st April 2018 – Penalty for Late Filing would be as follows-

Up to FY 2016-17, taxpayers who do not file their income tax return in a stipulated time period are liable to a fine (penalty) of Rs. 5,000.

It is further noted that liability to pay the penalty of Rs.5,000 is arises when an Income Tax Officer issues a notice for a late filing of the income tax return. It is worthwhile to note that the penalty for the late filing of income tax return is based on the conclusion of the assessing officer.

Contract us to Know more about the consequences and penalty for late filing income tax return. We also handle tax & registration services 

We offer our service in ​all Taxation and Various Registration related services ​managed by professional,

our bouquets of services portfolio are:

S.No. COMPLIANCES NATURE OF COMPLIANCES
1 INCOME TAX Return Filing, Tax Deposit, TDS Returns, TAN, PAN, MAT, Tax Planning, NRI Taxation, Scrutiny, Assessments, Representing for Appeals etc.
2 GST Registration, GST Tax Deposit, Monthly & Annually Return Filing, Input Credit, Department Notice, Assessment, And Other Compliance.
3 COMPANY PVT. LTD./LTD/LLP Company Incorporation, Minutes, Annual Filing, Income Tax Return Filing, Routine Compliance, Section 8 Company, Nidhi Company, Inspection & Investigation for Mergers & Takeover.
4 SOCIETY/ TRUST (NGO) Registration of Society/Trust, All India society, MOA, Income Tax Return Filing, Registration 80G & 12A, Utilization Certificates, Regs in NITI Aayog/NGO Darpan, etc.
5 PARTNERSHIP FIRM Partnership Deed, Registration, Accounting, Income Tax Return Filing etc
6 PROPRIETOR FIRM Registration, Accounting, Income Tax Return Filing, Refund etc.
7 IMPORT-EXPORT CODE Registration

​ & ​

Amendment

8 ACCOUNTING ​Accounting of  Prop. The firm, Partnership Firm, Company, Trust, Society, Proper Accounting in Tally, Ledger Management, Inventory Management, etc
9 OTHER REGISTRATION &COMPLIANCE SSI/MSME REGS, ESI, EPF, GMP CERTIFICATION, CGMP, HACCP, SA 8000, UL MARKING, CE MARKING ETC.

We are always available with the best of our assistance and services for you.

 

 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Basis Concept on Applicability of E-Way Bill

Basis Concept on Applicability of E-Way Bill

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www.carajput.com; GST E-way bill

E-Way Bill is a digitally produced paper that must be produced for the transportation of more than Rs. 50,000 products from one place to another anywhere in India, except Delhi. For the transport of products inside Delhi, an e-way bill is needed if the value of goods exceeds Rs . 1 Lakhs.

This documentation must be produced electronically for the transport of goods, regardless of whether the transport is inter-state or intra-state. The e-way bill created in any State shall be valid in any State or Union territory of India.

Who is responsible for generating the e-way bill?

The e-way bill under the GST regime is expected to be produced

  1. Any licensed individual responsible for the movement of products of shipment
  2. In the case of supply ( e.g. sales); or
  3. For reasons other than supply ( e.g. return of sales, transfer of branches, etc.); or
  4. Due to the inward supply of the unregistered individual
  5. Any unregistered individual who triggers the movement of products.

Some of the important points to be noted for goods transported by road are as follows:

  1. E-Way Bill is not required for all transactions carried out by a taxable individual.
  2. the E-Way Bill is necessary For all transactions involving the transportation of goods, whether by way of supply or not,.
  3. E-Way Bill is required in transactions involving products but viewed as a supply of services such as the leasing of products or the distribution of food drinks.
  4. E-Way Bill is not needed, where products purchased in the supply of services do not involve the movement of goods.
  5. E-Way Bill is necessary, where the movement of the value of the goods is more than Rs. 50,000/-as an interstate supply.
  6. E-Way Bill is necessary, where the movement of the value of the products is more than Rs. 1.00000/-as intrastate supply.
  7. The automobile number and transporter ID in part B should be given
  8. Where the goods are transported by the supplier, the supplier must provide the carrier with the details required for the generation of the e-way bill in Part-A.
  9. On the basis of the information received by the manufacturer, the carrier creates an e-way bill by performing Part B.
  10. If the goods are transferred by the supplier in a vehicle of their own or by a hired vehicle, the supplier may fill out the data in Part B.
  11. If the carrier has received information on the transport or vehicle number, etc., a unique e-way billing number or EBN may be issued.
  12. Unless the vehicle is modified during transit, the carrier may have to correct the transport information in the e-way bill on the GST portal.
  13. Goods can only be carried with the description of Part-A:
    1. When goods are transferred within less than 50 km of the State from the place of the manufacturer to the carrier for delivery;
    2. b) If goods are shipped from the source to the receiver for a distance of fewer than 50 km.
  14. The E-way bill created on the GST portal is valid for all States and Union Territories.
  15. For distances of up to 100 km, the created E-way bill is valid for one day. The e-way bill will be valid for an additional day for every 100 km.
  16. If the transport can not be completed within the period of validity due to certain unforeseen situations, the carrier may generate a new e-way bill by updating the transport details.
  17. Cause for transport may be any kind of supply, return on sales, own use, jobs, etc.
  18. When there are several vehicles involved in the transport of products, the manufacturer will issue the invoice until the first shipment is completed and, with each subsequent shipment, copies of the accompanying distribution vouchers and a copy of the invoice should be given. Nevertheless, the initial invoice will be submitted with the last shipment.

The circumstances where E-Way is not needed : 

In the following cases, the generation of e-Way Bill is not necessary:

  1. The mode of carriage is a non-motor vehicle
  2. Goods transported from the customs terminal, airport, air cargo complex, or land customs station to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance.
  3. Goods held under customs control or under customs seal
  4. Goods transported under the Customs Bond from ICD to the customs port or from one customs station to another.
  5. Transit cargo transported from or to Nepal or Bhutan
  6. Movement of products triggered by the establishment of the defense under the Ministry of Defense as consignee or consignee
  7. Vacuum Cargo /containers are being shipped
  8. In the case Consignor transporting goods to or from the place of business and a weighbridge at a distance of 20 km, accompanied by a Delivery Challenge.
  9. In the case Goods to be shipped by rail where the Consignor of goods is a federal government, a state government, or a local authority.
  10. In the case of Goods specified as exempt from E-Way bill requirements in the respective State / Union Territory of the GST Regulations.
  11. In case Transportation of certain defined goods-includes the list of exempt supplies of goods, annexed to Rule 138(14), goods classified as non-delivery as set out in Schedule III, other schedules of notifications of the Central Tax Rate. (PDF of the Products List).

Note: Part B of the e-Way Bill is not necessary to be filled if the gap between the consignee or consignee and the carrier is less than 50 km and the transport is in the same state.

What to do to make an eWay Bill

E-Way Bill can be created from the e-Way Bill Portal. The only thing you need is a Portal username. For a comprehensive step-by-step e-Way Bill Generation guide, check out our online e-Way Bill Generation Guide.

 

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Records/ document or information needed for the creation of eWay Bill

  • Invoice / Bill of Supply / Challenge relating to the shipment of goods
  • Road transport – ID of the driver or vehicle number
  • Transport by rail, air or ship – ID of the carrier, the number of the transport document and the date of the document

For more information about the case, please feel free to contact Rajput Jain &       Associates by phone (+91 11 9555 555 480 ), or e-mail (info@carajput.com).

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

NEW REQUIREMENTS INCLUDING IN CARO 2020 REPORTING

NEW ADDITIONAL REQUIREMENTS INCLUDING IN THE CARO 2020 REPORTING AFTER ON CONSULTING ON WITH THE NFRA

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www.carajput.com; CARO2020

Statutory Auditor’s Report (CARO 2020) shall include a statement a New Reporting Requirements

The existing COVID-19 pandemic affects not only public health but also the financial system as a whole. Public safety measures in place, although necessary are a huge hit to the economy’s liquidity flow leading to serious problems such as unemployment, a failure of the supply chain, a sudden drop in demand, unavailable inventories, etc.

The Government provides various relief and relaxation measures to boost businesses and the economy. In the same sense, the MCA has postponed from FY 2019-20 to FY 2020-21 the applicability of the Companies (Auditor’s Report) Order, 2020 [CARO 2020].

The Statutory auditor’s report (CARO 2020) shall include the following statement on the below matters, which are mention below:

www.carajput.com;CARO2020 Disclouser

www.carajput.com; CARO2020 Disclouser

  • Registration U/s 45-IA of RBI Act
  • Total Cash losses information
  • Information about the tangible and intangible assets
  • Cost records Maintenance
  • Total of statutory liabilities Deposit
  • Completed unrecorded income which is required to be disclosed,
  • Information of Default in repayment of borrowings
  • Details of Compliance in respect of deposits accepted
  • Details of transfer to fund specified under Sch- VII of Co. Act
  • Qualifications or adverse auditor remarks in other group companies
  • information of resignation of statutory auditors during the year
  • any material uncertainty on meeting liabilities of the company.
  • information of inventory and working capital
  • complete details of investments, any guarantee or security or advances or loans given
  • Compliance in respect of a loan to directors
  • Funds raised and utilization
  • Any Fraud & whistle-blower complaints
  • Any pending Compliance by a Nidhi Company.
  • Complete details Compliance on transactions with related parties
  • Implementation about Internal audit system
  • Non-cash dealings with company directors

In cases where the answer given by the Statutory auditor to any of the above requirements is unfavorable or negative, The auditor’s report shall then also set out the basis for such unfavorable or qualified response. In addition, in cases at which the auditor is unable to give an opinion on any defined issue, the report shall state such fact together with the purposes why the auditor can not give an opinion on the same.

CARO 2020 Applicability on which of the Companies.

To improve the scope of the audit, the CARO 2020 was published by the MCA in consultation with the NFRA. It contains a list of topics that the relevant companies are obliged to report on.

CARO 2020 applies to all  St. Audits beginning on or after 1 April 2020 which relates to the financial year 2019-20. The order applies to all companies covered under CARO 2016. Accordingly, the order requires all companies except the following companies which have been expressly prohibited from their jurisdiction:

  • Companies registered for charitable purposes
  • Small companies (Companies with paid-up capital less than/equal to Rs 50 lakh and with a last reported turnover which is less than/equal to Rs 2 Cr)
  • Insurance companies
  • One person company
  • Banking companies
The Below Private Limited Companies are also exempt from CARO’s, 2020 requirements:
  • Whose gross receipts or revenue (including revenue from discontinuing operations) is less than or equal to Rs 10 Cr in the financial year
  • Whose paid-up share capital plus reserves is less than or equal to Rs 1 CR as on the Balance sheet date (i.e. usually at the end of the financial year )
  • Not a holding or subsidiary of a Public company
  • Whose borrowings is less than or equal to Rs 1 Cr at any time during the financial year

CARO, 2020 (Applicable from FY 2019-20)-Changes made

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www.carajput.com; CARO2020

  • Fixed Assets/ Property, Plant, and Equipment

# Reporting over maintenance of records of Intangible assets have been specifically added.

# Leased Immovable property is specifically excluded from the reporting over the holding of title deeds in the Company’s name. If owned Immovable property is not held in the Company’s name, Dispute status and details of the registered owner need to be reported.

# In the case of EPP revaluation, the auditor must determine that the same has been achieved on the basis of the Reported Interest survey. Changes ought to be recorded if 10% or more of the adjustments are made in the WDV.

  • Inventory

# Inconsistencies recognized by management with an effect of 10% or more of the inventory value need to be reported.

# In the case that the Corporation has a working capital limit of more than INR 5 Crores depending on the security of the current assets (e.g. Stock, Debtors), the auditor must report that the regular filings (e.g. Financial Accounts, Debtors Listing) made with the lender are in compliance with the books.

  • Undisclosed Income:

# The auditor must disclose whether or not any income has been returned under the Income Tax Act, 1961 and the same has been duly accounted for in the books of accounts.

  • Default in repayment of loans

# The auditor must determine that the company is considered to be a “Willful defaulter.”

# Information on the removal of term loans from allowable use needs to be published.

# Data has been given on how short-term loans have been used for long-term purposes.

# The auditor must comment on all money taken to meet the commitments of the community business.

# Reporting on loans received by the Firm was made on the basis of the commitment of shares issued by the Firm to shareholders, Joint ventures and associates.

  • Fraud reporting

# Fraud reporting has been extended to fraud against the Company by any person rather than by officers or employees in the past.

# The fraud report issued by the auditors in the form ADT-4 to CG should be reported.

# The auditor has to record his evaluation of “Whistle Blower” allegations.

# The auditor must report whether the internal audit system exists within the company and whether or not the internal audit reports have been considered.

# The particulars of the proceedings (pending/initiated) under the Benami Law need to be published.

  • Consolidated Financial Statements

# Details of consolidated companies with qualifications or adverse reactions in the CARO report must be reported along with Paragraph Number of the auditor with audit report on Consolidated Financial Activities.

  • Non-Banking Financial Activities

# The auditor must report on the conduct of financial activities of an NBFC nature by the company without valid Certificates and reporting.

  • Cash Losses

# The auditor will document whether the Company has suffered CASH LOSS during the current AND preceding financial year and the volume of such cash loss.

# The resignation of the statutory auditor and the causes, problems with him duly considered by the incoming auditor or not; must be published.

  • Financial Ratios

# The goals of the Organization to meet its Existing Obligations on the basis of percentages, maturity and plans for execution must be stated.

  • Corporate Social Responsibility:

# The Auditor will disclose that the unexpended amount has been allocated to the designated fund within 6 months of the end of the fiscal year and whether or not the pending project balance has been moved to a special account. (Amendment itself under the Corporations Act, not yet told in 2013).

APPLICABILITY OF ANNEXES TO THE AUDITOR’S REPORT:

  1. Annexure of the CARO Report is not needed in the case of Small Business, Banking Firm, Insurance Company, Section 8 Company, One Person Company, and any private company having paid-up capital and free assets to INR 1 crores as at the balance sheet date and borrowing up to INR 1 crores at any time during the year and revenue up to INR 10 crores as per the financial reporting of the year mentioned.
  2. Annexure of the Internal Financial Control Report is not required in the case of Small Company, One Person Company, AND any Private Company with Turnover up to INR 50 Crores as per the financial statements of the year concerned and borrowing up to INR 25 Crores at any time during the year.

CONCLUSION:

According to CARO 2020, disclosure is required as to whether any qualifications or adverse remarks have been made by the respective auditors in the CARO reports of the companies included in the consolidated financial statements, if yes, the company details and the CARO report sentence numbers usually contain the qualifications or adverse remarks should be noted. The CARO 2020 is supposed to substantially increase the overall standard of the audit reports on the company’s financial statements and thereby contribute to greater accountability and confidence in the company’s financial affairs. It is inevitably expected to increase the inflow of investment by and in Indian companies.

In summary, we would like to say that the auditor’s reporting expectations are expanding substantially. Hoping this would lead to more public accountability between the company and its shareholders and hence the auditor needs to make sure he’s more perspective and especially while performing his duties.

Click here to access the overview of the MCA Order on CARO, 2020 dated 25.02.2020.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

New Turnover Threshold for the Purposes of TDS Applicability

New Turnover Threshold for the Purposes of Tax deducted at Source (TDS) Applicability as per the Finance Act 2020.

 

www.carajput.com;Income TAX and TDS Update

www.carajput.com; Income TAX and TDS Update

TDS was applicable to individuals and to HUF if their accounts were subject to audit in Section 44AB of the preceding year. The Finance Act 2020 specifies that All individuals & HUF will be liable to deduct TDS if the revenue exceeds Rs. 1 Crore in the case of corporation and Rs. 50 Lakhs in the case of the profession in the previous year. Such revisions shall take effect from 1 April 2020.

Below is the TDS average for the year 2020-21. In the following table valid from 14th May 2020

o   Individuals include the individual and HUF

o   Company and others include Company, Company, LLP, Co-op Society, Local Authority.

Interest in delayed payment and late deduction of TDS:

As per section 201(1A), Interest at the rate of 1 % per month or part of the month on the balance of TDS deductible from the date of tax before the date of the tax finally deducted shall be paid for the late deduction.

In addition, interest for late payment at a rate of 1.5 percent per month or half of the month on the number of TDS withheld from the date of tax to the day on which the tax is collected shall be levied.

Profit in late payment of TDS: amendments made pursuant to the Taxes and Other Laws (Relaxation of Other Provisions) Order 2020 of 24 March 2020:

For late fees payable on self-assessment tax; advanced tax, income tax, TDS, TCS, equalization cessation, STT, CTT made between 20 March 2020 to 30 June 2020, the interest rate will be decreased by 9% instead of 12%/18% per year (i.e. 0.75% per month instead of 1/1.5% per month).  No late fee/penalty shall be paid for any delay in respect of that time.

Default fees for the TDS / TCS return file:

Fees are payable at Rs. 200 a day for each day on which the loss continues. The amount of the fees can not exceed the value of the TDS.

Related Articles/pieces of information

You can give your comments and suggestions under the comment box.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CBDT ALLOWS ONE TIME RELAXATION FOR VERIFICATION OF ITR

CBDT Circular dated on 13th July 2020: CBTD allows to verify previous ITR one time relaxation for verification for the FY 2014-15 TO FY 2018-19  by September 2020

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www.carajput.com; CBDT: INCOME TAX

The tax return filer effectively makes a declaration by reviewing the tax return that the information contained in the return are correct.

Normally, the tax return must be checked within 120 days of the filing of the income tax return or any extended date announced by the tax department.

The procedure for filing income tax returns is not complete until the tax return is checked. The return will not be processed by the tax department until, and until confirmed. If not confirmed, the return is invalid.

1) By circular no. 3/2020 of 13 July 2020, CBDT offered one more-time opportunity for taxpayers whose income tax returns had been filed electronically but were awaiting verification.

2) Now any taxpayer whose ITR is pending for verification can verify their ITR by 30 September 2020 or before that date.

3) It is possible to check ITR for the duration 2014-15 to FY 2018-19 via this one-time relaxation scheme

4) All these checked ITRs are to be issued by 31 December 2020 or before.

5) ITRs may be checked by EVC or by a properly signed hard copy being sent to CPC Bangalore.

Note: if any lawsuits against taxpayers have been launched in view of the fact that the taxpayer has not filed a report for that year then the value of relaxation can not be used

Benefits:-

  • In the event of failure to acknowledge return, AO may initiate proceeding u / s 144 as such returns filed are deemed invalid.
  • The carryforward of loss can get permitted, ThanksRajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)