GST: Late fee capped at Rs. 500/- for each GSTR-3B Return and waives off late fee on late GST return filing

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return and waives off late fee on late GST return filing

For each GSTR-3B return, a late fee of Rs. 500/- is capped.

In the perspective of the GST taxpayers’ massive relief the government has chosen to limit, on the basis of the condition that such GSTR-3B reports are filed prior to 30 September 2020, a late maximum fee of Form GSTR-3B to Rs 50/- (only 500) by tax return for the tax period July 2017 to July 2020.

Notice was provided to include zero late fees if no tax liability exists; and if there is any tax liability, the GSTR-3B returns filed by 30 September 2020 will be subject to a maximum late fee of Rs. 500 for such returns.

Thanks to further flexibility in the deferred fee paid for tax periods between May 2020 and July 2020, numerous representations have been issued. In order to clean up past pendency of returns between July 2017 and January 2020, relief has been issued for February 2020 of April 2020 in addition to previously granted. In addition, the design and implementation of a standard late payment are easier on an automated common portal.

The late fee for the return is only limited to Rs. 500/- if it is filed before 30 September 2020.

Thanks

Rajput Jain & Associates

www.carajput.com

GST Returns; GST Annual Return Filing Online; GST Return Filing; E-INVOICE; E-WAY BILL; GST; GST ALL FORMS; GST AMENDMENTS; GST BENEFITS; GST CIRCULAR/ORDERS; GST CONCEPT AND STATUS; GST COUNCIL UPDATES; GST HELP VIDEOS; GST HSN CODES; GST LATEST NEWS; GST LATEST NOTIFICATION; GST LAWS AND RULES; GST OFFLINE TOOLS; GST PAYMENTS; GST PRACTITIONER; GST RATES; GST REGISTRATION; GST REQUIREMENT DOCUMENTS; GST RETURNS; GST RETURNS DUE DATE; GSTR-3B return, a late fee of Rs. 500/- is capped;

 

Why Virtual Office is an essential address for small Indian firms.

Why Virtual Office Address is essential to Indian small businesses.

Business prospects have plenty of needs and requirements and most company owners look forward to some of the new technologies that are available ahead to assist them in the company of scale. There are tons of ways in which new business owners are trying to implement to make sure they are ready to develop their business quickly. The saddest reality is, the idea of a virtual office address is not known to a lot of businesses, especially to small companies.

Virtual Office Address for Business Registration

Most are not aware that having a virtual office address can have an immense effect on their business and can help them hit a speed not connected to the conventional environment of their offices.

What is the address of the virtual office

The aim is to get a legislator answer in a room when you are not running an efficient office when you take up a virtual job. To make it simpler, without running an office there, you will have the place’s address.

Tons of confusions emerge in the mind when the idea of virtual offices is stated. The idea is basic, all you have to learn is that virtual offices almost seem to have an address. The only difference is that you would actually just have an address and not an actual physical location. This means that you actually don’t have to have a real office, you ‘re just going to have a main place address and buy a website. It’ll help you save tons of the investment in the capital you simply allocated for equivalent with this virtual office idea.

 

Today, if you’re a small company, you have to consider a lot of things, like the use of virtual offices. Several benefits, particularly for small businesses, relate to having a virtual office. The following advantages will confirm that while running the company at its best, you will expand your business in a very fast phase in the short term.

Values for small businesses in India Virtual Office address

The benefits that you can actually reap as a small business will be a significant factor in the overall success of your business model, which also demonstrates that methods of your company scaling can be much quicker than traditional routes. The main advantage you ‘re going to have is that the savings you receive from a virtual office address in India.

Economical Virtual Office Address Services for GST Registration

 

Savings of the capital

There are countless things you just have to confirm before you start a business and one of the first goals is to have enough money to spend when your company has a dry spell. This suggests that each process you do with your company must be cost-effective, and often it’s important especially for a replacement company.

You will save 70% of your investment with a virtual office, because the bulk of your money is not invested in operating an actual office. This rise in savings in your investments will help you broaden your business strategies and also help you do a lot of complex work on other investments.

 

Huge presence to Small Business

We all know how important the presence of your business is as a little business owner. More and more scope you have the business, the more ready you are to build a client database. You are ready to develop your products on the path in no time by increasing the customer base and, in no time, your products will have huge market demand, so long as the product or the service you provide is of good quality.

 

Adding a knowledgeable outlook

Hundreds of factors contribute to the professional identity of a small company, but the bulk of the effort comes from a place of company. This gives your company enormous credibility. A key position specifically means that all leading specialist businesses are situated in prime locations and that you have a high level of services. You have met the need to create an expert face for your company with a virtual office address at a prime location.

Prime Virtual Office Address at Cheapest Prices


Attracting more business opportunities

When you have been figured out that your company will improve drastically and in no time, if your services are equally successful, you will face tremendous demand. Your enterprise will draw more business opportunities than ever, as an organization with an honest reputation in an excellent location.

Access to items from the virtual office services at the workplace.

Different facilities like email, training rooms, conference rooms, etc. can also be accessed at extra cost with a virtual office in India. This means that you are going to do business efficiently within a short time and that massive business investment will also take place within a short period.

You simply have to try and locate a virtual office provider such as www.carajput.com and make a reservation right away. By contacting us on to www.carajput.com you will always book a virtual office and ensure a reservation now!

If you’ve got any questions please visit the website and contact our skilled support team for a detailed look.

GST newest Notifications: summary of CBIC GST Extension Notifications dated 24 June 2020

GST latest Notifications: Analysis of CBIC Notifications on GST extensions dated 24 June 2020

Today, CBIC issued various notifications to implement the recommendations of the 40th GST Council meeting as follows: CBIC Notifications signed on 24.06.2020 regarding interest waiver and late fees. On 24 June 2020 the CBIC released multiple notifications of GST. The synopsis of those updates is here.

Notice No. 49/2020 – Central Tax: Implementing some aspects of the Finance Act, 2020

Notification No. 50/2020 – Central Tax: Notification of GST rates for individuals taxable in composition under Rule 7 of the CGST Rules

GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020: To put certain provisions of the Finance Act into force, 2020.

Notification No. 52/2020 – Central Tax: GST waiver for taxpayers who’ve not filed GSTR-3B for tax dates between July 2017 and January 2020 shall be informed as stated earlier at the 40th meeting of the GST Council. In CGST Notification No. 52/2020 dated 24 June 2020, the CBIC notified that between 1 July 2020 and 30 September 2020, Zero GSTR-3B could be filed without a late fee for the above duration. Furthermore, it shall be limited to a maximum of Rs 250 per return per month per act for the remaining taxpayers.

A late fee exemption also moved the last GSTR-1 deadlines from March to June 2020 as of June 30th, 2020. The latest timelines for monthly filing without even a late fee charge will be from March to June 2020, 10th, 24th, 28th July 2020 and 5th August 2020 respectively. The last date for the GSTR-1 quarterly is 17th July and 3rd August 2020 for the quarters January-March 2020 and April-June 2020.

Big taxpayers have not been informed of further extensions for filing GSTR-3B from February to May 2020, with an annual turnover of more than Rs 5 Crore in the previous financial year. Furthermore, no interest should have been paid from the respective due dates of February to April 2020, i.e. 20th of the following month, for the first 15 days respectively. After that, interest at a 9 percent p.a. reduced rate. Any further delay in GST payments would have been imposed till 24 June 2020.

Initially, taxpayers with an aggregate annual turnover of up to Rs 5 crore in the last financial year have their due date staggered as 22nd # or 24th # of their next month, depending on the state / UT from which they run their main place of business. For the exception of May 2020, its due date staggered as July 12th # or 14th # # 2020. Furthermore, in the exception, August 2020 also comes with yesterday’s due date extended to 1st # or 3rd # # October 2020.

The CBIC has abolished the taxpayer bifurcation based on the annual sales up to Rs 1.5 crore, or between Rs 1.5 crore and Rs 5 crore. Correctly, as per yesterday’s 40th meeting of the GST Council, the late fee and the interest waiver will continue until September 2020

GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020-Central Tax 24.06.2020: Conditional waiver of late fees for all GSTR 1 registered persons for months/quarters ending March to June 2020, if submitted by the time set.

GSTR-3B-Extension of the deadline for Aug 2020: Notification No.54/2020-Central Tax 24.06.2020: extension of the deadline for submission of GSTR 3B to 1/3 October 2020

Thanks

Rajput Jain & Associates

www.carajput.com

Gst waver Noitification; #GSTlatestNotifications #AnalysisofCBICNotifications #GSTREGISTRATION # GSTPortal #GSTN #Notifications #carajput #rja #gst #ca #tax #India #taxation #rja #gstn #cbic #taxes #taxplanning #taxpayers #ImpactGST #Taxation #GST #GSTCouncil #IndianEconomy #Taxes #EaseOfDoingBusiness #India #GSTReturns #India #GSTReturns #Abatement #NoticeNo.49/2020 #NotificationNo.50/2020 #GSTR-3B-Interestratewaiver GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020 ; Notification No. 52/2020; GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020; GSTR-3B-Extension of the deadline for Aug 2020; GST latest Notifications: Analysis of CBIC Notifications on GST extensions dated 24 June 2020

Whirlpool convicted & imposed a penalty of Rs 4.07 lakh by NAA for denying customers the benefit of the GST rate reduction.

Whirlpool convicted in accordance with Rs. 4,07,451/- of profiteering by the National Anti Profiteering Authority on its fridges

NAA discovered the long-term consumer corporation Whirlpool of India convicted of not having to pass on a GST rate reduction advantage of more than Rs 4.07 lakh to its refrigerator purchasers. Kerala State Screening Committee Anti-Profiteering (NAA) vs. Whirlpool India Ltd.

The concise details of the matter are that the petitioner had made reference a case against Whirlpool to the Standing Committee on Anti-Profit-making alleging profiteering on the supply of fridge Whirlpool (HSN code 84182100), by not passing on the benefit of reducing tax rate w.e f. 1 July 2017 Pursuant to Section 171 of the CGST Act , 2017, by way of a substantial price decrease.

Few justifications by the defendant and the authority to reply

The plaintiff contended that the rise in prices could not be created because of other commercial factors, which had the impact of placing unlawful restraint on his fundamental right and was consequently in accordance with Article 19(1)(g) of the Indian Constitution.

In this relation, it would also be important to state that section 171(1) requires only the participant to pass on the advantage of the reduction in taxes to the purchasers and does not require him to set his prices in accordance with any authority direction. The above profit was provided by the government to ordinary buyers by sacrificing their valuable tax revenue which the respondent can not be permitted to misappropriate and enrich themselves at the detriment of unorganized, voiceless, and vulnerable common buyers. The respondent is free to exercise his right to trade and set prices, but under the pretext that it infringes his right to trade, he can not deny the above benefit.

The defendant also argued that the product’s manufacturing cost (BOM) had experienced a rise since August 2016 due to a rise in the cost of raw materials which had been computered to come at the MAP at the end of each and every month.

In this relation, it would also be necessary to note that on the very date from which the tax rate was reduced, there was no reason for the respondent to increase its basic price. There is also no justification for ascertaining why the respondent had not raised its price every month during the period from August 2016 to June 2017 when he computed the MAP every month.

The representative also claimed that there had been an increase in the total freight cost in 2017 compared to Rs. 29 per unit in 2016, which was expected to be added to the price.

As mentioned above, the defendant had no reason to raise its price on the occasion of the reduction in taxes, and thus the respondent’s argument is frivolous and not bonafide, which was made with an ulterior purpose for the betterment of the tax cut.

Held by Authority: on the grounds of the details of the matter, the amount profited by Whirlpool shall be determined as Rs. 4,07,451/-. The Respondent is instructed to lower the price with the above-mentioned product and also to deposit the benefited amount together with interest at 18 percent. A notice of cause shall be issued to him to illustrate why the punishment under the GST Act should not be enforced on him.

ITC on Sales of ‘Demo Cars Supply: GST Implication

Impact of GST: ITC on Vehicles on Sale of ‘ Demo Cars Supply by Dealers

Overview

Demo cars are being used by car dealerships to demonstrate automotive functionality with a view to encouraging sales. Clients test-drive demo models to experience efficiency and understand the benefits of the vehicle. These cars are used for a limited period of time and will then be sold.

The essence of the demo car: a capital good or a dealer’s input?

Pursuant to section 2(19) of the CGST Act, 2017 “capital goods” means goods, the value of which is capitalized on the books of accounts of a person claiming an input tax credit and which are used or intended to be used in the course or in the course of business.

As set out in section 2(59) of the CGST Act, 2017 “input” means any goods other than capital goods used or expected to be used by a supplier in the duration of or in the course of trade or business.

Consequently, a test car can be either an input or a capital asset. In compliance with the above definitions, the prototype vehicle can be classified as a capital asset because it is used for market marketing and is not intended for retail sales to consumers. If the demo car is capitalized on the books of the accounts, it will be regarded as a capital asset. If not, it may be input.

Taxability and Tax Rate

The car dealer had to have registered demo cars in his title and, by nature of registration, the dealer will become the first holder of such cars and, afterward, the car dealer may sell demo cars and, at the time of sale, the vehicle registration will be transferred to the customer.

The transfer of the demo car to the client by the car dealer shall be liable to GST and shall be subject to taxation at the rates set for the cars. The Government has, however, laid down separate provisions for persons engaged in the purchase and sale of second-hand goods. Although demo cars have been used until the vehicles had been sold by the manufacturer, the rules of the old and used vehicle could be drawn.

The dealer possesses the following two options:

Option-1 The dealer may submit the concessional tax rate as specified in Notification No.-8/2018 Central Tax (Rate) dated 25-1-2018 only if no ITC has been claimed by him under the GST or former laws. The concessional GST rates are 18 percent for old and used large vehicles (in the case of Petrol LPG / CNG powered motor vehicles with an engine capacity of 1200cc or more and in other motor vehicles with an engine capacity of 1500cc or more) and 12 percent for other old and used vehicles. The govt also exempted the compensation cess for all old and used motor vehicles empty Notification No.1/2018 – Compensation Cess (Rate) dated 25-1-2018.

Option-2 If the dealer seems unable to apply the concessional tax rate as set out in the above-mentioned notification, the dealer shall be permitted to take the ITC at 28 percent on the buy of demo cars and the normal GST rate and, compensation cess ranging from 1% to 22% as the case may be will be applicable.

Input Tax Credit Availability

At the time of registration and payment, the dealer should have recorded the car as a fixed asset in his accounting records, regardless of whether or not the ITC had been claimed. Demo cars are usually purchased on a tax invoice by dealers who are capitalized on their accounting record as capital goods and expressed on the Company’s fixed assets, except the GST component.

Pursuant to the provisions of the Input Tax Credit given for in Section 17(5) of the CGST Act, the ITC on motor vehicles for the transport of persons is available when such vehicles are used in the further supply of such motor vehicles or for training on the driving of such motor vehicles. In addition, the Authority for Advance Rulings, Kerala, held that the input tax paid by the vehicle dealer on the purchase of a motor vehicle used for client display purposes can be used as an input tax credit for capital goods and offset against the output tax payable under the GST. Demo vehicles are either capital goods that are used in the process of operation or are eligible for the production tax credit.

Valuation under the GST Regime

As per valuation laws, a special method is required in situations where a taxable supply is provided by a person engaged in the purchasing and sale of second-hand products, i.e. used products as such or after some slight processing, that does not modify the value of the goods and that no input tax credit has been used for the procurement of such goods. In such cases, the value of the supply shall be the difference between the selling price and the purchase price and shall be ignored if the value of the supply is negative. However, it should be noted that, if ITC is taken, above that the mentioned option-1 concessional rate is not available and the car dealer shall pay an amount equal to the input tax credit on demo cars reduced by the percentage points that may be recommended or the transaction value tax on those capital goods determined as the value of the taxable supply, whichever is higher.

Concluding

It varies depending on the wholesaler whether he wants to apply the concessional GST rate to the sale of demo vehicles for which he has not been able to make use of ITC and needs to fulfill other prescribed conditions. Alternatively, it can make use of ITC and make use of the same with the payment of the output tax liability and during the sale of demo vehicles.

GSTN has provided guidelines on the facility for the registration of IRPs made available on the GST Portal

The facility for the registration of IRPs made available on the GST Portal

  • Insolvency Resolution Professionals / Resolution Professionals (IRPs / RPs), named to conduct corporate insolvency resolution proceedings for corporate debtors, in the form of notice. No 11/2020-CT of 21 March 2020 may apply for a new registration on the GST Portal, on behalf of the Corporate Debtors, in each of the States or Union Territories, on the PAN and CIN of the Corporate Debtor, where the Corporate Debtor was registered earlier, within thirty days of their appointment as IRP / RP.
  • The Registration Explanation should be picked as Corporate Debtor undergoing the Corporate Insolvency Resolution Process with IRP/RP ” from the drop-down menu.
  • The day of the commencement of operations for IRP / RPs will be the day of their appointment. Their compliance duties may also fall into force from the date of their appointment.
  • The person named as IRP / RP shall be the Primary Approved Signator of the newly registered Company.
  • Information as stated in the original registration of the Corporate Debtors shall be entered in the Main Place of Business / Additional Place of Business.
  • The new form for registration shall would have been sent electronically to the GST Website under the IRP / RP DSC.
  • New IRP / RP registration will only be needed once. In the event of a change in IRP / RP, a change of the approved signatory will be called after the original appointment and not the appointment of a different individual needing a new register.
  • In cases where the RP is not the same as the IRP, or in cases where a different IRP / RP is appointed in the middle of the insolvency process, a change in the GST system may be made through a non-core change in the registration form.
  • The adjustment to the Primary Authorized Signatory information on the site can be made either by the authorized signatory of the Company or by the competent court officer (if the former authorized signatory may not exchange the credentials with his successor) at the request of the IRP / RP.

New Corporate & Professional Update May 2020

New Corporate & Professional Update:

“Ups and downs are part of life, but to change this time of crisis into a time of opportunity is what gives us a special identity”

Holding this in mind, let us begin by reflecting on our mission and dream, and let us ensure that we have made no mistake in complying with the organization. A few General Conformities referred to in the attached photo. The business and the industry that vary in their wise compliance.

KEY PRACTICAL TAKEAWAYS:

Income Tax:

# CBDT has issued Circular No. 12/2020 dated 20.05.2020 in order to exempt B2B suppliers with 95% or more receipts through non-cash mode to not maintain prescribed payment modes as per Section 269SU such as POS, UPI, UPI-QR, etc.

Note-These assesses can disable these facilities if they are not in operation.

# CBDT released Notification No. 25/2020 dated 20.05.2020 to ensure that the ‘Safe Harbor Principles’ applied in the case of Overseas Transactions shall extend to FY 2020-21 in the same manner as those applied in previous years.

# In the case of a company that opts to pay tax under the “New 22% Scheme” under Section 115BAA, the MAT credit standing in the books must be written off because you will not be eligible to claim the same amount.

Note-Carefully opt for the scheme as the blind application of the 22% tax would eventually cause you a loss.

# TDS The rates have been lowered by 25 percent of the current rates, e.g. 14.05.2020. Here are a few clarifications in this regard:

  • The rate cut shall not extend to TDS for non-residents u / s 195.
  • The rate cut does not occur in non-PAN cases (20 percent FLAT rate) or 206AA cases.
  • The decrease in the TDS rate will apply to invoices due or payments made on or after 14.05.2020, even if the invoice date is before 14.05.2020. What you’ve got to do is “Due or Fee.” When all days occur on or after 14.05.2020, the reduced rate will apply.

# The due dates of ITR for FY 2019-20 have been extended to 30.11.2020 for all assesses. In fact, the due date of the tax assessment in the case of ALL the assesses has been extended to 31.10.2020.

Note-In brief, we should assume that irrespective of whether or not the assessee is subject to a tax audit OR TP audit, the above due dates are valid.

# For the calculation of depreciation under the Income Tax Act, 1961 for the year 2019-20, consider the following:

  1. Remember the effect of the “Leap Year” (i.e. 29.02.2020) on the estimate of 180 days. This period taking 100 percent depreciation for assets underuse after “04.10.2019” instead of 03.10 earlier and 50 percent depreciation for assets underuse after “04.10.2019.”
  2. In the case of a company, whether you take the “22% tax limit” or 115BAA, do not take the “additional depreciation” deduction.

Goods & Services Tax:

# The government. Subsequently, the amendment to Section 140 of the CGST Act 2017 was notified in order to provide the legislative authority to have a time limit for the claim of transitional credit and the invalidation of Delhi HC ‘s decision to offer a time limit for the claim of transitional credit until 30.06.2020.

# whilst still trying to prepare GSTR-9 (Annual Return) for FY 2018-19, in scenario you have paid less tax in your GSTR-3B, you will have to pay the balance tax along with Interest by filing DRC-03 through the common portal.

Note-If paid in DRC-03, the auditor shall not recommend any responsibility in GSTR-9C.

# GST Portal has allowed the Input Service Distributor (ISD) facility to change negative ITC to its Units in the event that no ITC is to be delivered for a month and ISD is needed to distribute ITC reversal via CN.

# Filing of GST Return is compulsory along with payment in case of opting for 15 days relaxation of GSTR-3B filing for taxpayers with a revenue of more than INR 5 crores.

Note-If you pay tax under Cash Ledger and do not file GSTR-3B within the due date + 15 days period, you will have to pay interest at 9 percent before 24.06.2020.

Corporate & Allied law:

MSME Definition: MSME is divided into two main categories:

  1. Manufacturing enterprise; and
  2. Service enterprise.

They are described as below in terms of investment in plant and machinery/equipment.

Illustration 1.

  • Investment: 50 Lakhs
  • Turnover: 4 Cr

As investment is less than 1 Cr and Turnover is less than 5 Cr. It fulfilled both conditions of the Micro category. Hence, it is a Micro-Enterprise.

Illustration 2.

  • Investment: 2 Cr
  • Turnover: 4 Cr

As investment is more than 1 Cr. Therefore, it is outside the purview of Micro Enterprise. As investment is less than 10 Cr and Turnover is less than 50 Cr. It fulfilled both conditions of the small category. Hence, it is a Small Enterprise.

Illustration 3.

  • Investment: 2 Cr
  • Turnover: 60 Cr

As turnover is more than 60 Cr. Therefore, it is outside the purview of Small Enterprise. As investment is less than 20 Cr and Turnover is less than 100 Cr. It fulfilled both conditions of the medium category. Hence, it is a Medium Enterprise.

# In the case of a corporation formed between 01.01.2020 and 31.03.2020, there is no annual compliance with FY 2019-20 except for the appointment of an auditor to the Board of Directors (no requirement for ADT-1) and the submission of an ITR. In other words, the following:

  • There is no need to schedule FS for these three months and the first FS will be prepared as of 31.03.2021.
  • There is no need to schedule the first AGM now and the due date of the First AGM will be 31.12.2021.
  • There is no need to file MGT-7 (Annual Return), AOC-4 (FS Filing).

Note-For the tax audit of these firms for these three months, Form 3CB-3CD (not 3CA-3CD) must be used.

# MCA explained w.r.t. timelines and length of name allocation, name transition, and resubmissions as follows:

  • Approved NEW Names from 15.03.2020 to 31.05.2020 will be held until 20.06.2020.
  • Approved CHANGE in Names expiring between 15.03.2020 and 31.05.2020 will be reserved until 30.07.2020.
  • Resubmission of any MCA type on which the last resubmission date expired between 15.03.2020 and 31.05.2020 has been extended until 15.06.2020.

# The government. Notified lowered PF prices (10 percent instead of 12 percent) for all workplaces for the months of May, June, and July 2020 for both employers and workers. If the employer contribution is still part of the CTC, you will take home 4 percent of the diminished contribution otherwise it will save 2 percent for the company and raise the employee ‘s profitability by 2 percent.

Note-You may also contribute more than 10%.

# In the case of an organisation where up to 100 workers are working and out of which 90 percent are paying less than INR 15,000, no employer and employee payment (24 percent) will be payable and the whole payment will be borne by the State. Before August 2020.

# In the case of other PF companies (not mentioned above), the Contractor and Employee share is expected to be charged at 10% each (means 20% instead of 24%) in June, July and August, 20.

# The government. Plans to extend the ESI Act to all businesses that have 10 or more employees and the region-wise provisions that have already been issued would expire.

# There is no need to file the ADT-1 form in the case of the first appointment of an auditor because the ADT-1 file is regulated by Section 139(1) and the first auditor is named pursuant to Section 139(6) and not pursuant to Section 139(1) of the Companies Act 2013.

# In the event of the termination of the auditor, the new auditor named in place of the previous auditor may hold office only up to the next AGM date and not for a term of five years. You will name such an auditor again at the next meeting of the AGM.

Insolvency (IBC)

  • Debt accrued or sustained in a corona case shall not be included in the default.
  • No current insolvency up to 1 year
  • In the case of small and medium-sized companies, separate insolvency of 240A IBC and a minimum requirement of Rs . 1 Lakes to 1 Crore should be imposed.

Conveyance Deed Cancelled: Flat owners must sign their names in the Land Tax Card / Municipal Registry. This was accepted by the Maharashtra State Cabinet in Principle at its meeting held yesterday.

The New Legislation will be passed to Surpass The Continuation of the Conveyance Contract. Draft New Law will be Available in Few Weeks and the Law will be approved at the Budget Session or Monsoon session of the Maharashtra Legislative Assembly. Now experience Land Ownership along with Flat.

Supreme Court Decision on the transition of Flat to Nominee. Land Mark Judgment

  • Deceased Member Nominee is entirely entitled to Ownership through the transition to the Co-op Society.
  • Society Can’t Challenge the Right to Nominate a Land Law.
  • No legitimate inheritance, no court order or certificate of succession is required.
  • Please Circulate, Essential to Members of the Society and Office Bearers.
  • After the nomination is registered with the organization You Don’t Need
    1. To Prove Legal Heirship.
    2. No Further Court Order Required.
    3. No Succession Certification

Thus, Transfer to Registered Nominee is Automatic.

KEY DUE DATE:

Tax on income:

# 30.06.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such substantial financial transactions as the issue of shares worth more than INR 10 lakhs.

Note-In the case of no such SFT activity, the tax audit assesses are required to file the “Preliminary SFT Reponse” on the e-filing platform by the said due date.

# 07.06.2020 is the due date for payment of TDS / TCS for the month of May 2020.

# 30.06.2020 is the due date for the TDS / TCS returns file for Q4 (F.Y. 2019-20).

# 30.06.2020 is the due date for the ITR / Revised ITR register for the 2018-19 fiscal year.

Note-The ITR for FY 2017-18 can not now be submitted as the due date for the paper lapsed.

# 31.05.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such substantial financial transactions as the issue of shares worth more than INR 10 lakhs.

Goods and Services Tax

# 04.06.2020 is the due date for filing GSTR-3B for the month of April 2020 in the case of taxpayers with a gross turnover of more than INR 5 crores in the previous year.

Note-You can delay filing above GSTR-3B until 24.06.2020 without any late fees but with 9 percent p.a. Responsibility for interest.

Corporate & Allied law:

# MCA has declared a “Moratorium Period” from 01.04.2020 to 30.09.2020 for the filing of ROC Forms and no further penalties will be paid during this time due to the late submission of any form submitted during this time.

We hope that no deadline will be skipped because of COVID-19.

Please feel free to return should you have any questions or uncertainty.

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)

Amendment in Section 140 of the CGST Act 2017: Intends to formalise the gap in the law and to put an end to legal proceedings.

Backdated amendment in Section 140 of the CGST Act 2017: intends to formalise the gap in the law and to put an end to legal proceedings. – Notification No. 43/2020-Central Taxes, dated 16.05.2020

TRANSITIONAL PROVISIONS FOR ITC NOTIFY U / S 140 OF CGST ACT

  • CBDT INFORMED PROVISIONS U / S TRANSITIONAL PROVISIONS FOR ITC
  • TRANSITIONAL CENVAT CREDIT – ENACTED PROVISIONS EFFECTIVE FROM 18.05.2020

CBDT, Ministry of Finance, (Department of Revenue) vide Notification No. 43/2020 –Canter  Tax dated 16 May 2020 has released notification requesting the entry into force of Section 128 of the Finance Act 2020 to amend Section 140 of the CGST Act w.e.f. 01.07.2017.

What was the change to Section 140 of the CGST Act, 2017?

Section 140 of the CGST Act deals with transitional GST payments. The terms “within that period” have been used in the various clauses of Section 140 of the CGST Act, 2017 of the Finance Act, 2020. The said change has a retrospective effect from 1 July 2017, i.e. the very first day of introduction of the GST. However, until now, that provision of the Finance Act 2020 has not been put into force. The reform has now been enforced by CBIC empty Notice No. 43/2020-Central Tax dated 16.05.2020 from 18 May 2020.

What was the need for an amendment?

Previous to the amendment referred to above, Section 140 did not include a time limit on the use of transitional GST credits. However, Rule 117 of the CGST Rules 2017 does contain a time limit, but in the past two years, different writs have been filed by taxpayers before the High Courts challenging the validity of the time limit laid down in Rule 117 of the CGST Rules 2017 for the use of transitional credits under the GST.

The High Courts held that the CGST Rules could not supersede the CGST Act. Since the CGST Act does not allow any time limit for the use of transitional credits under the GST, therefore, the CGST Rules that set the time limit for the use of transitional credits are unconstitutional. There has since been pending lawsuits surrounding the legitimacy of Rule 117.

The amendment referred to above seeks to regularize the gap in the law and to put an end to the dispute with regard to the validity of Rule 117 of the CGST Rules.

What will be the effective date of amendment?

While the above amendments to section 140 of the CGST Act is valid as of 01 July 2017, section 128 of the finance bill 2020 (through which the above amendment was made) has been in force as of 18 May 2020. This means that the law does not plan to reverse the actions of taxpayers until 18 May 2020.

KEY DIFFERENCE IN THE AMENDMENT IN SECTION 140 OF THE CGST ACT 2017 ARE PROVIDE IN THE BELOW ANALYSIS:

Before Amendment After Amendment (Section 128 of Finance Act, 2020)
(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed: (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the “within such time and” in such manner as may be prescribed:
(2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the  “within such time and” in such manner as may be prescribed:
(3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished  “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” the following conditions, namely:––
(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day: (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the  “existing law, within such time and in such manner as may be prescribed”, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day:
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to subject to the following conditions, namely:––
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act even if the invoices relating to such services are received on or after the appointed day. (7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as “credit under this Act, within such time and in such manner as may be prescribed, even if” the invoices relating to such services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day  “within such time and in such manner”  as may be prescribed:
(9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. (9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such  “credit can be reclaimed within such time and in such manner as may be prescribed, subject to” the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day.

Enacted Provisions informed on 16 May and come into operation on 18 May 2020.

Link: https:/www.cbic.gov.in / sources/htdocs-cbec / gst / notfctn-43-central-tax-english-2020.pdf

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 CORPORATE AND PROFESSIONAL UPDATE

NEW CORPORATE AND PROFESSIONAL UPDATE

CORPORATE AND PROFESSIONAL UPDATE DEC 26, 2016 |

DIRECT TAX: INCOME TAX:

# The due dates of ITR for FY 2019-20 have been extended to 30.11.2020 for all assesses. In addition, the due date of the tax assessment in the case of ALL the assesses has been extended to 31.10.2020.

Note-In brief, we can say that regardless of whether or not the assessee is subject to a tax audit OR TP audit, the above due dates are applicable.

# For the calculation of depreciation under the Income Tax Act , 1961 for the year 2019-20, know the following:

  • Recognize the effect of the “Leap Year” (i.e. 29.02.2020) on the measurement of 180 days. This year taking 100 percent depreciation for assets under use before “04.10.2019” instead of 03.10 earlier and 50 percent depreciation for assets under use after “04.10.2019.”
  • In the case of a company, if you take the “22% tax rate” or 115BAA, do not take the “additional depreciation” allowance.

# TDS The rates have been decreased by 25 per cent of the current rates, e.g. 14.05.2020. Here are a few clarifications in this regard:

  • The rate decrease shall not apply to TDS for non-residents u / s 195.
  • The rate cut does not extend to non-PAN cases (20% FLAT Limit) u / s 206AA.
  • The change in the TDS rate would refer on invoices due or purchases received on or after 14.05.2020, even though the invoice date is before 14.05.2020. What you’ve got to see is “Due or Payment.” If all dates occur on or after 14.05.2020, the reduced rate will apply.

INDIRECT TAX: GOODS & SERVICES TAX:

# Filing of GST Return is compulsory along with payment in case of opting for 15 days stress relief of GSTR-3B filing for taxpayers with a turnover of more than INR 5 crores.

Note-If you pay tax under Cash Ledger and do not file GSTR-3B within the due date + 15 days period, you will have to pay interest at 9 per cent before 24.06.2020.

Transitional Forms-Review of Form GST TRAN-01:

  1. The facility to revise Form GST TRAN-01 has been enabled for taxpayers who have already filed it.
  2. If the revision results in downward credit, the taxpayer should only be able to file it if he has a sufficient balance in his credit note.
  3. Taxpayers who register it for the first time will not be able to update it instantly.
  4. The TRAN-01 revision functionality for those who do not meet the above criteria will soon be enabled.

# GST Portal has enabled the Input Service Distributor (ISD) facility to adjust negative ITC to its Units in case no ITC is to be distributed for a month and ISD has to distribute ITC reversal through CN.

CGST: establishes the date for the coming into force of the provisions of Section 128 of the Finance Act 2020 relating to the amendment of Section 140 of the CGST Act, which stipulates the manner and time limit for the taking of transitional loans. In our opinion, they are pushing for this amendment following the judgment of the Delhi High Court of Reliance Electric Works in which it was held that the restriction term (3 years) is to be extended as no time limit has been laid down in the CGST Act.

CORPORATE & ALLIED LAWS:

# In the case of a company where up to 100 employees are working and out of which ninety percent are paying less than INR 15,000, no employer and employee contribution (24 percent) will be payable and the whole payment will be charged by the Government. Until August 2020.

# In the case of other PF organisations (not mentioned above), the Contractor and Employee share is expected to be charged at 10% each (means 20% instead of 24%) in June , July and August, 20.

# The government. Plans to extend the ESI Act to all businesses that have 10 or more employees and the region-wise provisions that have already been issued would expire.

# There is no need to file the ADT-1 form in the case of the first appointment of an auditor since the ADT-1 file is governed by Section 139(1) and the first auditor is appointed pursuant to Section 139(6) and not pursuant to Section 139(1) of the Companies Act 2013.

# In the event of the removal of the auditor, the new auditor appointed in place of the previous auditor may hold office only up to the next AGM date and not for a period of five years. You will name such an auditor again at the next meeting of the AGM.

Key DUE DATE:

# 07.06.2020 is the due date for payment of TDS / TCS for the month of May 2020.

# 30.06.2020 is the due date for the TDS / TCS returns file for Q4 (F.Y. 2019-20).

# 30.06.2020 is the due date for the ITR / Revised ITR file for the financial year 2018-19. Note-The ITR for FY 2017-18 cannot now be filed as the due date for the file lapsed.

# 04.06.2020 is the due date for filing GSTR-3B for the month of April 2020 in the case of taxpayers with a gross turnover of more than INR 5 cores in the previous year.

Note-You can delay filing beyond GSTR-3B until 24.06.2020 without any late fees but with 9 percent p.a. Responsibility for value.

# 31.05.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such significant financial transactions as the issuance of shares of more than INR 10 lakhs. Note-In the event of no such SFT transaction, the tax audit assesses are required to file the “Preliminary SFT Response” on the e-filing portal by the said due date.

# MCA has revealed a “Moratorium Period” from 01.04.2020 to 30.09.2020 for the filing of ROC Forms and no additional fees will be charged for that period due to the late filing of any form due within that period.

 

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)

Key ideas & prospects for CA’s practice to develop in 2020.

Top ideas & opportunities for the practice of New CA to be established in 2020.

Upon completion of the Chartered Accountant exam, candidates may either be working in a corporation as employees or may start their own professional practice. If you want to start your own company, you need to know first about the essential terms and conditions of the company. Many of the eligible CAs have this problem.

  • When I start working as a ca practice or join a job, which one is better for me.
  • How can I expand my CA practice?
  • What I need to do to offer professional services to my customers.
  • How do I keep my staff at my CA firm / LLP

Once you get going, the first thing you can hold in mind is Hard Working and Patience. These are two significant market drivers that will carry you to a new height of success. There are various market opportunities in the country that the Chartered Accountant can launch without spending a large amount of capital.

Working for oneself often seems to be more appealing than working for someone else. In addition to building a work-life harmony, you live and follow your own desires.

Before beginning your practice, it ‘s important to do your homework and ask yourself questions so that you can get a sense of direction and intent. Some of the things you should think about include:

  • Should I have the experience of working for a company and employees?
  • Do I have the capital to start a business?
  • Do I have a good view of my accounting business?
  • Do I have the strength to succeed?
  • Do I have the love of family members?
  • How am I going to set my work apart from that of other businessmen like me?

When you’ve answered these questions and know that you’re starting an accounting firm for all the right reasons,

The Chartered Accountant has played a significant role in the numerous branches of the business, such as auditing, taxation, tax planning, accounting, accounting, administrative management, and financial reporting. Here, we are explaining the right company start-up strategy:

  • Understand why you want to launch a Chartered Accountant profession
  • Create an in-depth strategic strategy
  • Choose the best type of finance;
  • You can obtain a franchise from the Taxation Technology Agency
  • Tax Advisory Services
  • Products with verification competence
  • Outsourcing of services
  • Open the Educational Course for Chartered Accounting
  • The GST market is a driver of funding for Chartered Accountant start-up
  • Subjects one can specialize in your Chartered Accountant practice area

Areas of Expertise in Your CA Practices: There are a variety of topics that you may specialize in, which are listed here:

  • DIRECT TAXES
  • INDIRECT TAXES
  • FEMA
  • FOREIGN TRADE POLICIES
  • CORPORATE FINANCING
  • LABOUR LAW REGULATIONS AND COMPLIANCES THEREOF
  • TURN OUT STRATEGIES
  • INTERNAL CONTROLS, SOX, AND OTHER ALLIED AUDIT SERVICES
  • ESOP AND PAYROLL RELATED SERVICES
  • ASSISTING IN ARBITRATION
  • MERGERS AND ACQUISITIONS M&
  • FORENSIC ACCOUNTING
  • PREPARATION FOR A FINANCIAL DUE DILIGENCE
  • SYSTEMS AUDIT IN A COMPUTERISED ENVIRONMENT
  • SUPPORT SERVICES FOR SOFTWARE DEVELOPMENT, TESTING, AND IMPLEMENTATION
  • MANAGEMENT OF FAMILY RUN BUSINESSES
  • PREPARATION FOR IPO

Note: Combine any of these possibilities together initially to acquire information. While you may have limited knowledge of conducting your Articleship, you may use the aid of qualified Chartered Accountants in different fields of expertise.

How to establish a Specialty in CA Practices:

After the practicalities of financial accounting are well known, the next step is to define the field of specialty that will require the following steps:

  • Identifying the content of the analysis in order to achieve an in-depth under-statement of the topic of specialization.
  • Identifying every particular course like crash courses in a given area.
  • Search for ways to teach the desired area of specialty and continue teaching.
  • Being affiliated with a big firm/organization where the preferred subject is still being practiced.
  • Going to attend lectures and sessions on the topic.
  • A person makes your influence known in a number of conferences, conferences on a specific subject by expressing your point of view and challenging conventional thought.
  • Full price Models and interviews with professionals and advisors.
  • Participation of posts to CA journals.
  • Subscribing to specialist journals in the field — domestic and worldwide.
  • Identify and follow best practices constantly

If you’d like to expand your practice to have a high type of expertise, you need to introduce more and more professionals with strong experience. Never add working or working partners. Since they will not be able to contribute to work, but will still have some hope, so you will always have to work harder to satisfy their demands.

Allow a strong difference between trained workers and collaborators, because they will operate on the same activities. Their duty and responsibilities should be explicitly outlined in order to bring an end to any future conflict.

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)