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01/11/2020

ITC cannot be disallowed to purchaser if seller has collected tax but not paid to Govt.
[2020] 120 taxmann.com 345 (Madras)

GST/EXCISE/ST/VAT : Input tax credit cannot be disallowed on ground that seller has not paid tax to Government, when purchaser is able to prove that seller has collected tax and issued invoices to purchaser

Section 16 of the Central Goods and Services Tax Act, 2017/Rule 3 of the Cenvat Credit Rules, 2004 - Input tax credit - Whether Input tax credit cannot be disallowed on ground that seller has not paid tax to Government, when purchaser is able to prove that seller has collected tax and issued invoices to purchaser - Held, yes

Sri Ranganathar Valves (P.) Ltd.

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07/10/2020

Summary the other decisions taken by the Council on Monday

1. Levy of GST compensation cess to be extended beyond the transition period of five years, for such period as may be required to meet the revenue gap.
2. Allowing taxpayers having turnover of less than Rs 5 crore to file GST returns on a quarterly basis with monthly payment with effect from January 1, 2021. Such persons shall have an option to pay 35% of their net cash tax liability of the previous quarter using an auto-generated challan for the first two months of the quarter.
3. The due date of furnishing quarterly GST returns (GSTR-1) to be changed to 13 of the succeeding month with effect from January 1.
4. Liability in GSTR-3B to be on auto-populated basis of GSTR-1 with effect from January 1. Input tax credit to be auto-populated through GSTR-2B from January 1 for taxpayers filing monthly returns, and from April 1 for quarterly return filers. GSTR-1 to be filed mandatorily before GSTR-3B with effect from April 1.
5. The present GSTR-1 and GSTR-3B return filing system to be extended until March 31. GST laws to be amended to make it the same as default return filing system.
6 From April 1, taxpayers having turnover of more than Rs 5 crore shall be required to mention six digits Harmonised System of Nomenclature (HSN)/ Servicing Accounting Code (SAC) on invoices. Taxpayers having turnover upto Rs 5 crore need to mention four digits HSN/SAC on business-to-business (B2B) invoices. The government can also notify mentioning of eight digits HSN for specified class of supplies.
7. Various amendments in the Central Goods and Services Tax (CGST) Rules, 2017 are recommended including provision for furnishing NIL Form CMP-08 through short message service (SMS).
8. Refund to be disbursed in a validated bank account linked with Permanent Account Number (PAN) and Aadhaar of the registrant with effect from January 1

07/10/2020

Now ESIC has become applicable to establishments employing 10 or more person in Maharashtra w.e.f. 01-Oct-2020

Earlier this limit was 20 or more coverable employees in Maharashtra.

Note: For manufacturing unit with power it was already applicable on 10 person

02/10/2020

TCS Applicability Chart for Quick Ref.

30/09/2020

Another extension for annual return filing by GST.

30/09/2020

A Big relief ....

Investors see it as ‘a small mercy’

21/09/2020

The Central Board of Direct Taxes has brought about changes in the TCS provisions with effect from 1st October, 2020 through the Budget 2020 i.e. Finance Act 2020.
These changes shall affect a wide range of businesses across various industries. The article explains scope, eligibility and exceptions

TCS Scope Widening

Eligibility

Sale of any goods above Rs. 50 lakhs; and

Turnover of Rs. 10 Crores and above during FY 2019-20 and onwards Effective from 1 October 2020

Every seller, whose total sales, gross receipts or turnover from the business carried on by him exceed ₹ 10 Crores during the FY 2019-20 & onwards, who receives any amount as consideration for sale of any goods (excluding exports) of the value or aggregate of such value exceeding ₹ 50 Lakhs in any previous year shall at the time of receipt of such amount collect a sum equal to 0.1% of the sale consideration exceeding ₹ 50 Lakhs as Tax Collected at Source (TCS) from the buyer. If the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the applicable rate of TCS will be 1%

Rate of TCS

SectionNature of ReceiptsReduced rate from 1st October 2020 to 31st March 2021*Rate of TCS from 1st April 2021 onwards206C(1H)Sale of goods (other than Alcohol, Tendu Leaves, Timber, Forest Produce, Scrap, Coal, Lignite, Iron or a Motor Vehicle)0.075%*0.1%
*Rate of TCS u/s 206C(1H) is 0.1%. However, since the rates of TDS and TCS have been slashed by 25% due to the measures announced by the Finance Ministry in the wake of COVID-19, the rate u/s 206C(1H) stands reduced by 25% too

10/09/2020

Very important...

Section 147 of the Income Tax Act deals with provisions of “income escaping assessment”. Thegrounds or reasons which led to formation of the belief that income chargeable to tax has escapedassessment must have a material bearing on the question of escapement of income of the assesseefrom assessm...

09/09/2020

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08/09/2020

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08/09/2020

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