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Recent Updates on Income Tax, GST, ROC, etc.

Corporate Insolvency: NCLT makes ‘default record’ mandatory
Financial creditors moving the National Company Law Tribunal (NCLT) for initiation of insolvency process would have to henceforth mandatorily file ‘default record’ from information utility (IU). No new petition would be entertained without record of default under Section 7 of the Insolvency and Bankruptcy Code ( IBC), the NCLT has said in a new directive. Read more »
Clear picture of GST mop up in April to come by June-end: Finance Secretary
To a query on why the April GST number has not been released, Pandey said, “You know that the GST filing dates has been extended. If it will be extended, we have said that returns can be filed till June, people who have turnover of more than Rs 5 crore they also got more time.” Read more »
FM Nirmala Sitharaman extends ITR filing, Vivad Se Viswas last dates
Giving relief to the income tax payers amid Coronavirus lockdown, Finance Minister Nirmala Sithaman has extended the deadline for Income Tax Return (ITR) filing from 30th June 2020 to 30th November 2020. The FM also announced to extend the deadline for direct tax assessment from 30th September 2020 to 31st December 2020. She also extended the ITR filing deadline for the FY 2020-21 from 31st March 2021 to 30th September 2021. Apart from this, FM Sitharaman also announced the extension of deadline for Vivad Se Viswas up to 31st December 2020. Read more »
Govt announces 25% cut in TDS/TCS rate for non-salary payments
The minister lowered the rates of tax deduction at source (TDS) for non-salaried specified payments made to residents and rates of tax collection at source (TCS) for the specified receipts by 25%. The reduction will kick into effect from May 14 and will be valid on payment for contract, professional fees, interest, rent, dividend, commission, brokerage, among others, for the remaining part of the ongoing financial year. Read more »
Executive director is employee, not liable to pay GST: Karnataka AAR
The AAR’s ruling is based on the fact that executive director is an employee of the company and his work doesn’t fall under the definition of supply under the CGST Act. On the other hand, non-executive director is not an employee and as such his inputs are essentially services under the CGST Act and therefore taxable under RCM. Read more »
Donations to Shri Ram Janmabhoomi Teerth Kshetra eligible for exemption from income tax
The government has exempted donations made to the Shri Ram Janmabhoomi Teerth Kshetra, a trust created for the construction of the Ram temple in Ayodhya, from income tax for the financial year 2020-21.
In a notification issued Friday, the Central Board of Direct Taxes (CBDT) allowed tax exemption to donations under Section 80 G of the Income Tax Act, on the grounds that the structure would be a “place of historic importance and a place of public worship”. Read more »
CBDT defers requirement of registration of charitable, religious trusts by 4 months till Oct 1
Trusts and charitable institutions will be able to renew their registrations or approvals by December 31, 2020 instead of the earlier deadline of August 31, the CBDT said in a statement Friday.
Further, new entities will be able to register by October 1, 2020 instead of the earlier deadline of June 1, 2020, giving the relaxation owing to hardships caused by Covid 19 pandemic. Read more »
CBDT orders tax officials to not issue scrutiny notices to taxpayers
After rejecting “ill-conceived” suggestions by a group of Indian Revenue Services (IRS) officers, the Central Board of Direct Taxes (CBDT) directed officials not to keep any communication with assessees or issue scrutiny notices to them without the board’s approval.
According to it, any such notice would have an “adverse effect” on the assessees amid the coronavirus (Covid-19) pandemic. Read more »
MCA extends timeline for independent directors to register themselves
The Corporate Affairs Ministry (MCA) has given two more months for independent directors to register in the online databank launched in December last year.
Independent directors of companies had to register by April 30 this year, but can now do so till end of June, official sources said. Read more »
Lockdown period not to be counted for determining residency of NRIs: CBDT
Providing a relief to NRIs and foreign nationals stuck in India due to lockdown, the government on Friday said their stay in the country during the period will not be counted for the purpose of determining their residency status for taxation purpose.
The nationwide lockdown since March 25 and cancellation of international flights to contain the spread of COVID-19 has forced non-resident Indians (NRI) and foreign nationals to prolong their stay in India. Read more »
Govt amends I-T rules for faster resolution of multinational corporations’ tax disputes under MAP
The Central Board of Direct Taxes (CBDT) has amended Rule 44G dealing with application and procedure for giving effect to MAP agreement, and also revised Form 34F with respect to making application to the competent authority for invoking MAP. As many as 600 tax disputes were resolved under MAP between April 1, 2014, and December 31, 2018. Read more »
NCLT approves Ebix’s revival plan for Trimax IT Infrastructure
Ebix Software India (ESIPL) will pay upfront Rs 75 crore to acquire the company. The company owed over Rs 1,918 crore to its lenders, including about Rs 1,700 crore to financial creditors. Read more »
Govt allows biz to verify monthly GST return through EVC
In a notification, the Central Board of Indirect Taxes and Customs (CBIC) said any registered person during the period from the April 21, 2020 to June 30, 2020, will be allowed to furnish the return under section 39 in Form GSTR-3B verified through electronic verification code (EVC). Read more »
GSTN allows inter-head cash transfer for taxpayers; resolves cash flow issues
GSTN added that a taxpayer can now transfer the amount available in an electronic cash ledger from one major head to another major head, keeping the minor head the same. Read more »
Date for filing GST return for FY19 extended to September 30
The Finance Ministry has extended the date for filing annual return for financial year 2018-19 till September 30. At the same time NIL return can be filed through Short Messaging Service (SMS).The Ministry has also notified extending the validity of e-way bill, expiring between March 20-April15, till May 31. Read more »
IBBI seeks public comments on existing regulations
Noting that stakeholders could play a more active role in making regulations, IBBI said that they may contemplate, at leisure, the important issues in the extant regulatory framework that hinder transactions and offer alternate solutions to address them. Read more »
Co-operative banks can invoke SARFAESI Act, seize and sell defaulters’ assets to recover dues, says SC
The SARFAESI Act, which is now rarely being used after the Insolvency and Bankruptcy Code has come into existence since 2016, allows banks to seize, take control, manage and sell assets of defaulting borrowers without the intervention of any court/tribunal and also ensures speedy recovery. Read more »
Pre-GST CENVAT credit available till June-end revised
The Delhi High Court on Tuesday allowed taxpayers registered under Goods and Services Tax (GST) to claim accumulated CENVAT credit from pre-GST regime till June 30, 2020, and noted that the benefit of transitional credit will be applicable for three years (since launch of GST on July 1, 2017) which is the period mentioned in the limitation Act. Read more »
Enhancing audit independence: Ministry sets up 7-member panel
The Corporate Affairs Ministry (MCA) has constituted a seven-member committee to examine the comments received on the consultation paper floated by it for enhancing audit independence and accountability in the country.The committee will examine the comments and make recommendations requiring any amendments in law, rules and standards to achieve the objective of enhancement of audit independence and accountability, official sources said. Read more »
GST audit guidelines need to be reviewed to include video conferencing: Experts
GST officers would have to audit and assess taxpayers via video-conferencing instead of undertaking physical visits amid the coronavirus pandemic, and the current guidelines need to be reviewed for this, according to experts.As per the current goods and services tax (GST) audit guidelines, taxpayers have been broadly categorised into three groups based on their annual turnover — large, medium and small. While large and medium units are compulsorily under premises-based audits; for small units, desk-based audit has been suggested. Read more »