NEW CORPORATE AND PROFESSIONAL UPDATE
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:
- The facility to revise Form GST TRAN-01 has been enabled for taxpayers who have already filed it.
- 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.
- Taxpayers who register it for the first time will not be able to update it instantly.
- 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.