New tax regime and other tax changes that will come into effect from April 1 By M. George The new financial year will begin on April 1, 2020, amid a country-wide lockdown. Even though the government has extended various tax-related deadlines (such as filing of income tax return for FY 2018-19, tax-saving for FY 2019-20, linking of PAN with Aadhaar etc.) certain new tax-related rules will come into effect from April 1.
Here are the key operational aspects COVID-19 tax-saving extension By Raul N Tiem COVID-19 is having a massive impact on businesses and individuals alike. All of us are locked down at home. During such a time, finishing compliance on time is likely to be challenging for most of us. To allow taxpayers some leeway towards saving on save taxes for FY 2019-20, the government has extended the time limit for making investments to June 30, 2020. Taxpayers have a lot of queries about how all of this will work. Here is what you must know about the new deadlines.
Where’s My Income Tax Refund? How To Track It By Andrew F Thomas If you’ve filed and are awaiting a refund, you’re running to the mailbox or checking your online bank account every day (for those choosing direct deposit). Everyone loves the idea of getting money back from the government.
From belated ITR to Section 80C investments – 7 points every taxpayer should know By Sandy Mash The COVID-19 pandemic has not only severely disrupted financial markets and global economy, but has also emerged as the biggest threat to human life. The entire world is now coming together to ward off the killer virus as well as defend their economy against it. In India too, both the government and the RBI have announced several relief measures to minimise the impact of coronavirus on financial markets, taxpayers, investors and the common man, among others.
GST collection in March indicates slowdown By Henry Richards Goods and services tax (GST) collection in March fell 8.4% to Rs 97,597 crore, failing to cross the physiologically important Rs 1-lakhcrore level after four months, in what was an indication of a slowdown in the economy.
Issuance of Tax Invoice/ Bill can be done with IGST to Customers for Interstate Transactions By Andrew F Thomas CST & VAT / GST | HEADLINES | TOP STORIES Issuance of Tax Invoice/ Bill can be done with IGST to Customers for Interstate Transactions: AAR [Read Order] April 2, 2020 1:11 pm| By : Fathima Nihala The Authority on Advance Ruling (AAR) in Karnataka held that the tax invoice can be issued with Integrated Goods and Service Tax( IGST) to customers for the interstate transaction when the goods are directly dispatched from the port of import with invoicing done from the registered place of business.
GST Return filing date for March-May extended till June, relief from late fee, penalties By Sandy Mash Finance Minister Nirmala Sitharaman on Tuesday extended the deadline for filing GST returns for March-May to June 30. On late filing of GST returns, no late fee, penalty or interest will be charged for companies with turnover of up to Rs 5 crore. For companies with more than Rs 5 crore turnover, no late fee and penalty will be charged on GST return filed by 15 days. A reduced interest rate of 9 per cent will be charged, she said.
Tax deadlines, penalties you needn’t worry about By Thomas T. Rucks You heard finance minister Nirmala Sitharaman’s announcement on 24 March that tax-related deadlines have been extended from 31 March to 30 June. So even as the new financial year (FY) 2020-21 begins, you need not worry about some of the paperwork you may have left for the last minute. But as you wait out the covid-19 lockdown at home, it’s a good opportunity to take care of unfinished tasks, instead of leaving them for later in these uncertain times, when a new day can bring new challenges of various kinds.
Tax saving deadline extended for FY2019-20 By Moshe Pras Sonu Iyer, Tax Partner and National Leader - People Advisory Services, EY India and Siddharth Deb, Senior Manager - People Advisory Services, EY India answer some common questions regarding the extension of the tax saving deadline for FY2019-20.
Tax relief for PM CARE, PM National Relief funds must be at par By Sandy Mash The Hon’ble PM has taken a very good initiative of setting up the PM CARE Fund as a public charitable trust to motivate people to contribute to a cause that has threatened humanity across the globe and to raise resources required for fighting the coronavirus pandemic.
Covid-driven tax reliefs to cost government 2-3% of GDP By Jude Marg Taxation experts have welcomed the measures announced by the government, saying these steps will add up to 2-3 per cent of GDP but will go a long way in addressing the issue of liquidity and deferment of payment obligations. The government on Tuesday came out with a slew of relaxation in tax and payment compliances by reducing the quantum of penalties, extending the deadline to make clear the dues among others to help the public and corporates.
Income tax law needs to be a lot simpler By M. George Simplifying the Income Tax Act, automating tax collection and return processing and making the process user-friendly are priorities for the National Democratic Alliance (NDA) government, finance minister Piyush Goyal said.
Recent advance rulings under the GST Law By Andrew F Thomas The Authority for Advance Ruling (AAR) constituted under the Goods and Services Tax (GST) Law has recently pronounced advance rulings clarifying certain positions on the applicability of GST on supply of goods from retail outlets in international airports,
Lets' Stop COVID-19, Check out Today's Online Resources for you By Thomas T. Rucks In the wake of COVID-19 outbreak in the country, The Institute of Chartered Accountants of India takes proactive steps to safeguard its Members & Students. We have made efforts in providing valuable resources to help protect your health and guide you through the professional challenges and also meet your CPE requirements and advance your knowledge.
Announcement for Students By M. George We are currently witnessing the impact of COVID 19 Pandemic in India; the exact nature and outreach of which is yet un-folding and this has resulted in public distancing and situation of mass lockdown in some of the States. We at ICAI do understand that the overall environment with regard to safety and hygiene is of utmost importance and the Institute is keeping a close tab on the developments taking place arising out of the current COVID 19 influence on day-to-day basis. Meanwhile, for the benefit of the students many steps like e-learning, video lectures and certain relaxation in GMCS/ITT for those, whose May 2020 attempts were getting affected; have already been given the option to change the Centre of Examination which Window closes on 23rd March, 2020.
5 Things to know about Form 16 By Moshe Pras Form 16 is a certificate issued by an employer, certifying that the TDS is deducted from the salary of the employee and deposited with the government.
Form 16 will now have more details of your income and deductions By Orion M. In yet another attempt to increase transparency and minimize tax evasion, the Central Board of Direct Taxes (CBDT) has notified various changes in the formats of Form 16 and Form 24Q. The new amendments are in line with the changes in income-tax rules and new income tax return (ITR) forms recently notified by CBDT for assessment year (AY) 2019-20.
Amendment of Form No. 16 and Form No. 24Q By M. George In exercise of powers conferred by sections 200 and 203 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962,
What are Form 15G, Form 15H? By Thomas T. Rucks Form 15G is for resident Indians under the age of 60, HUF or trust. While Form 15H is for resident Indians aged 60 years or above.
Appeal to contribute in ICAI Covid 19 Relief Fund By M. George The COVID-19 pandemic marks an unprecedented time in modern history that will require the best of humanity to overcome. Little would have we realised the unfolding of epidemic like this, which situation is yet unfolding, and have brought the economic momentum to a much lower trajectory. Situation like this would need support to collaborate with the government initiatives to scale up governmental efforts to help those in distress.
Invitation to participate in the activities of the Internal Audit Standards Board, ICAI By Orion M. The Internal Audit Standards Board (IASB or the Board) is one of the Non-Standing Committee of the Institute of Chartered Accountant of India (ICAI) and was constituted on February 5, 2004. The main objective of the Board is to issue Standards on Internal Audit, strengthen technical resources in the field of Internal Audit, such as Certificate Programs and Courses; disseminate best practices in the field through Seminars and events; and generally, promote the role of internal auditors in governance, risk and compliance to various stakeholders.
Survey for Seeking Preference for Learning Foreign Language Course By Orion M. Committee for Export of CA Services & WTO of ICAI is working on the Action Plan for Champion Sector in which promoting foreign language amongst members and students is one of the mandates by Government of India. With an aim to overcome language barrier and thereby have enhanced professional opportunities overseas, ICAI,
Paradigm Geophysical Pty Ltd vs. CIT (Delhi High Court) By Sandy Mash S. 44DA prevails over s. 44BB after the amendment w.e.f. 01.04.2011. Income from provision of services through high end customized software does not constitute "Fees For Technical Services" u/s 9(1)(vii) as the definition excludes income from "mining or like project". The Q whether income from composite software and maintenance services constitutes "royalty" for purposes of s. 44DA would have to be decided from the nature of services. The assessee is eligible to take benefit of the definition of 'royalty' as per the DTAA for the purpose of applicability of s. 44DA
In Re: Extention of Interim Orders (Bombay High Court) By Andrew F Thomas Corona Virus Lockdown Crisis: All interim orders operating till today and are not already continued by some other courts / authority including this court shall remain in force till 30.04.2020 subject to liberty to parties to move for vacation of interim orders only in extreme urgent cases. Thus, all interim orders passed by this High Court at Mumbai, Aurangabad, Nagpur and Panaji as also all courts/ Tribunal and authorities subordinate over which it has power of superintendence expiring before 30.04.2020, shall continue to operate till then. It is clarifed that such interim orders which are not granted for limited duration and therefore, are to operate till further orders, shall remain unaffected by this order (Similar orders are passed by the Delhi & Karnataka High Courts)
In Re Cognizance For Extension Of Limitation (Supreme Court) By Orion M. Extension of limitation period: To obviate difficulties caused by CoronaVirus in filing petitions/ applications/ suits/ appeals/ all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and/or State) , it is ordered that the period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws, whether condonable or not, shall stand extended w.e.f. 15th March 2020 till further order/s to be passed by this Court in present proceedings
Rajasthan State Electricity Board vs. DCIT (Supreme Court) By Jude Marg S. 143(1-A): The object of s. 143(1- A) is the prevention of evasion of tax. As it has the deterrent effect of preventing tax evasion, it should be made to apply only to tax evaders. It can only be invoked where it is found on facts that the lesser amount stated in the return filed by the assessee is a result of an attempt to evade tax lawfully payable by the assessee. The burden of proving that the assessee has so attempted to evade tax is on the Revenue which may be discharged by establishing facts and circumstances from which a reasonable inference can be drawn that the assessee has, in fact, attempted to evade tax lawfully payable by it
Kaybee Pvt Ltd vs. ITO (ITAT Mumbai) By Orion M. S. 92A(2): The law in Diageo India Pvt Ltd 47 SOT 252 that the definition of "Associated Enterprises" in section 92A(1)(a) & (b) is the basic rule which is unaffected by the specific instances referred to in s. 92A(2) is not good law in view of the amendment by the FA 2002 and CBDT Circular No. 8 dated 27.08.2008.
Export of Goods and Services- Realisation and Repatriation of Export Proceeds-Relaxation By Jude Marg The Government of India as well as the Reserve Bank has been receiving representations from Exporters Trade bodies to extend the period of realisation of export proceeds in view of the outbreak of pandemic COVID- 19. It has, therefore, been decided, in consultation with Government of India, to increase the present period of realization and repatriation to India of the amount representing the full export value of goods or software or services exported, from nine months to fifteen months from the date of export, for the exports made up to or on July 31, 2020.
Amendment to Master Direction (MD) on KYC By Raul N Tiem Government of India, vide Gazette Notification G.S.R. 228(E) dated March 31, 2020 has notified amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
Doorstep Banking Services for Senior Citizens and Differently Abled Persons By Andrew F Thomas Banks were advised to make concerted efforts to offer certain basic banking services to senior citizens of more than 70 years of age and differently abled persons at the doorstep of such customers. Although banks were advised to implement the instructions by December 31, 2017, it has been observed that such services are yet to be offered by banks or were restricted to select branches.
Amalgamation of Public Sector Banks - Assignment of SLBC/ UTLBC Convenorship and Lead Bank responsibilities By Raul N Tiem Amalgamation of Public Sector Banks - Assignment of SLBC/ UTLBC Convenorship and Lead Bank responsibilities The amalgamations of Oriental Bank of Commerce and United Bank of India with Punjab National Bank; Andhra Bank and Corporation Bank with Union Bank of India; Syndicate Bank with Canara Bank and Allahabad Bank with Indian Bank have been notified vide the Gazette of India Notifications G.S.R. 153(E), G.S.R. 154(E),
Rupee drops on weak shares; inflation eyed By Orion M. The Indian rupee fell on Friday tracking losses in local shares, which raised worries of foreign investors continuing to pull out funds from Asia's third-largest economy
Companies can’t evade tax on profit from overseas office after ITAT ruling By Andrew F Thomas Practice of companies interpreting treaties in a certain way to avoid tax on foreign offices’ profits to end. The practice continued even after 2008 when the tax law was amended to clarify that India may tax earnings of overseas branches. Several companies still avoided tax by citing earlier court decisions that seemed to favour their interpretation.
CBDT Circular or Instructions can’t be inconsistent with SC Decisions: ITAT By M. George In a recent case, the Income Tax Appellate Tribunal ( ITAT) Delhi held that No CBDT circular or instruction can be contrary to the decision of the Hon’ble Supreme Court, even subsequent to the decision of the Hon’ble Supreme Court. Disallowances of foreign travel expenses incurred in respect of the family members of the directors are sustainable.
ACIT vs. Reliance Jio Infocomm Ltd (ITAT Mumbai) By Moshe Pras Static vs. Ambulatory interpretation of DTAAs: Entire law on whether the retrospective amendments to the definition of "royalty" in s. 9(1)(vi) of the Act can have bearing on the interpretation of the same term in the DTAAs explained with reference to the doctrine of "treaty override" and the Vienna Convention (Siemens AG 310 ITR 320 (Bom) explained)
Six Tata trusts to challenge tax department order in tribunal By Jude Marg Six Tata trusts had their registrations cancelled & will now challenge the order before ITAT. The six Tata trusts that had their registrations cancelled by the income tax department in October will challenge the order before the Income Tax Appellate Tribunal (ITAT), arguing that they collectively hold less than 10% of Tata Sons, the conglomerate’s holding company. Top trust officials close to the development said the six entities did not breach the objectives listed in the trust deeds as claimed by the department.
Income Tax Alert! Filing ITR online? Ensure e-verification before logging out; step by step guide By Orion M. The last date for income tax return filing has been extended by three months to 30th June 2020. The Finance Minister made this announcement saying the step was necessary due to the recent spread of the COVID-19 virus in India and the implementation of lockdown. So, income taxpayers are advised to file their ITR by 30th June 2020. However, it's advisable for the income taxpayers to e-file their I-T return. If one e-files ITR and commits any mistake, he or she can correct the mistakes online logging in at incometaxindiaefiling.gov.in.
Why you still might want to file by April 15 Coronavirus tax extension By Sandy Mash If dealing with the effects of coronavirus has put you behind schedule for preparing and paying your taxes this year, the US Treasury will give you three more months to pay your federal taxes without a penalty. Although you'll now have until July 15 to file your tax returns, there are still some benefits to meeting the typical April 15 deadline.
Gujarat HC allows Bail in wrongful availment of ITC Case Read more By Jude Marg In the case of Amit Chandrakant Shah vs. State of Gujarat, the high could be allowed the application for bail in the case of the wrongful availment of Input Tax Credit (ITC) on the condition that the applicant shall not misuse his liberty, surrender the passport, do not hamper the interest of the prosecution, mark presence on every Monday, do not leave India before the prior permission, furnish the residential address, etc.
Direct tax mop-up falls short by record Rs 1.45 trn of revised estimates By Moshe Pras The central government collected Rs 10.27 trillion as direct taxes during 2019-20, a record shortfall of Rs 1.45 trillion, or 12.2 per cent, compared with the revised estimates (RE). This may prompt the revenue department, under the finance ministry, to reset its Budget math for 2020-21, official sources said.
14% shortfall likely in direct tax mop-up By Jude Marg Collection of direct tax for the just-concluded fiscal 2020 is expected at Rs 10.1 lakh crore, well short of the government’s most recent estimate of Rs 11.7 lakh crore, officials in the know said. The near-14% shortfall, or about Rs 1.6 lakh crore, from revised target set in the budget presented on February 1 is partly because of the ongoing lockdown, which is going to weigh on collections for the final fiscal quarter. The government had collected Rs 10.34 lakh crore in direct taxes in fiscal 2019.
Notification No. 34/2020 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS By Henry Richards In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby make the following amendments in the Notification of the Central Board of Indirect Taxes and Customs No. 27/2020-CUSTOMS (N.T.),
ITR filing deadline for FY19 extended till 30 June By Moshe Pras Giving respite to tax payers, various statutory deadlines related to income tax which were ending on 31 March, have now been extended till 30 June. Considering the hardship people are facing due to coronavirus (COVID-19) and measures taken to curb it, finance minister Nirmala Sitharaman announced the extension of the deadlines. Most experts welcome the relief measures announced by finance minister.
Corrigendum Food Corporation Of India, JDA complex, Jammu By Moshe Pras In reference to the NIT of even number dated 13.03.2020, alongwith MTF, it is to inform that due to Countrywide Lockdown competent authority has decided to extend the “Document Download End Date/ time” , “Bid Submission End Date/ time”and “Bid Opening Date/ time” for the said E tender for appointment of CA firms to carry out Internal Audit and Physical Verification work of Jammu & Kashmir region by 3 weeks. Consequently the revised dates will be as follows:
Corrigendum Indian Institute of Forest Management, Bhopal, Madhya Pradesh By Thomas T. Rucks The following 3 (three) additional points are inserted in the Notice Inviting Expression of
Interest from Chartered Accountant firms for Internal Audit of the Indian Institute of
Forest Management, Bhopal and Statutory Auditof the Indian Institute of Forest
Management Society, Bhopal (Advertisement No. IIFM Bhopal/Internal & Statutory
Auditors/2019-20/01 dated 12.03.2020).
Assam Petro-Chemicals Limited, Guwahati, Assam By Thomas T. Rucks Assam Petro-chemicals Limited (APL) was conceived for productive utilization of natural gas, whichwas being flared up in the Upper Assam oil fields. Only a small quantum of natural gas was then usedin fertilizer industry and power generation. To prevent this colossal wastage, the company was set upby Government of Assam with joint participation of Assam Industrial Development Corporation Ltd
(AIDC) and the public. Incorporated in 1971, the company was a pioneer in the field as it was the firstto manufacture petrochemicals in India using natural gas as feedstock. It started with a smallMethanol plant with Formalin and a few Urea Formaldehyde resins as downstream projects withtechnology supplied by Mitsubishi Gas Chemicals Co. Inc, Japan. Commercial production began in1976. Toaugment its capacities to meet increasing demand for its products, a bigger Methanol plantwith 100TPD capacity was commissioned in 1989 with technology supplied by ICI, UK and a 100 TPDFormaldehyde Plant in 1998 with technology from Derivados Forestales of Nederland which has thenbeen revamped to 125 TPD in the year 2012.
Change in transfer pricing regulations to help MNCs By Jude Marg The Union budget 2020-21 has proposed to amend the Section 92CB of the Income Tax Act that empowers the Central Board of Direct Taxes to frame safe harbour rules for determination of the arm’s length price. The government has also sought to widen the ambit of Dispute Resolution Panel (DRP).
Transfer pricing documentation due by year-end By Orion M. Transfer pricing documentation, required by the State Administration of Taxation (SAT), is due to be submitted by companies that are part of an international group by the end of December.
Transfer pricing amendments – a step towards certainty By M. George The Finance Minister has proposed to provide an option to the taxpayers to make one-time payment of tax including surcharge on the amount of transfer pricing adjustment or part thereof, instead of tax on deemed interest every year in case the taxpayer does not repatriate money from its AE in India.
key international tax and transfer pricing developments By Sandy Mash Following the re-election of the Modi government, this year’s budget was presented by India’s first full-time female Finance Minister, Mrs. Nirmala Sitharaman. The finance minister maintained the theme that it is well within India’s capacity to reach a $5 trillion economy by 2025.
Notification No. 32/2020 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS By Raul N Tiem In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following amendment in the Notification of the Central Board of Indirect Taxes and Customs No.27/2020-CUSTOMS (N.T.), dated 19thMarch, 2020 with effect from 27th March, 2020, namely: -
Notification No. 07/2020 Central Board of Indirect Taxes and Customs By Moshe Pras In exercise of the powers conferred by section 168 of the Central Goods and
Services Tax Act, 2017 (12 of 2017), read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the Council,
Notification No. 07/2020 Central Board of Indirect Taxes and Customs By Sandy Mash In exercise of the powers conferred by section 168 of the Central Goods and
Services Tax Act, 2017 (12 of 2017), read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the Council,
Notification No. 01/2020 Central Board of Indirect Taxes and Customs By Raul N Tiem In exercise of the powers conferred by sub-section (2) of section 1 of the
Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby appoints the 1st day of January, 2020, as the date on which the provisions of section 114 of the Finance (No. 2) Act, 2019 (23 of 2019) shall come into force.
Notification No. 90/2019 Central Board of Indirect Taxes and Customs By Henry Richards In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendments in the notification of the Government of India
Notification No. 05/2020-Customs (ADD) Ministry Of Finance By Andrew F Thomas Whereas, in the matter of import of `Chlorinated Polyvinyl Chloride Resin
(CPVC)-whether or not further processed into compound' (hereinafter referred to as the subject goods), falling under heading 3904 of the First Schedule to the Customs Tariff Act, 1975
E-generated document required for indirect tax notices By Jude Marg In a Frequently Asked Questions (FAQs) issued by Institute of Chartered Accountants of India ( ICAI ) Unique Document Identification Number (UDIN) said that, Chartered Accountants ( CA ) are not authorised to certify Income Tax Return (ITR) as True copy.
FinMin seeks industry inputs on direct, indirect tax changes By M. George The finance ministry for the first time has sought suggestions on changes in direct and indirect tax rates from the industry. This comes at a time when a revenue shortfall and consumption slowdown are threatening to upset the government’s finances.
No income tax on interest from accident compensation: High Court By M. George Forty years after an eight-year-old city boy was left maimed for life in a car accident, the Bombay High Court on Thursday held that income tax should not have been deducted from the interest on the compensation awarded by the court. The ruling was given by a bench of justices Akil Kureshi and S J Kathawalla on a plea by accident victim Rupesh Shah, now 48.