CA CMA Syam sundar

 The Directorate General of Foreign Trade (DGFT) notified the amendment in Foreign Trade Policy 2015-2020.  The existing Foreign Trade Policy 2015-2020 which was valid upto March 31, 2021, is extended upto September 30, 2021.  The Foreign Trade Policy (FTP), 2015-2020, incorporating provisions relating to export and import of goods and services, shall come into force  with effect from the date of notification, and instead of remaining in force up to 31st March 2021 will be enforced till 30 September 2021, unless otherwise specified.  All exports and imports made up to the date of notification shall, accordingly, be governed by the relevant FTP, unless otherwise specified.  Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under para...

 *Income Tax Updates* Central Government *extends the last date for linking of Aadhaar number with PAN* from 31st March, 2021 to 30th June, 2021, in view of the difficulties arising out of the COVID-19 pandemic. https://twitter.com/IncomeTaxIndia/status/1377265588347707398?s=20 *Date for issue of notice under section 148* of Income-tax Act,1961, passing of consequential order for direction issued by the Dispute Resolution Panel (DRP) & processing of equalisation levy statements also *extended to 30th April, 2021*. https://twitter.com/IncomeTaxIndia/status/1377265592323907584?s=20

  The Central Board of Indirect Taxes and Customs (CBIC) notified the waiver of penalty for non-compliance of capturing dynamic QR code in GST Invoice from December 2020 to June 30, 2021, fixed deadline of compliance to July 1, 2021.  The Board seeks to amend notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 89/2020 – Central Tax, dated the 29th November, 2020. In the said notification, in the first paragraph, for the figures, letters and words, “31st day of March”, the figures, letters and words “30th day of June”, shall be substituted. In the first paragraph, for the figures, letters, and words, “1st day of April”, the figures, letters, and words “1st day of July”, shall be substituted. 

 DIRECT TAXATION: *FAQs - on Seek adjournment* *Q: What is seek adjournment?* A: Seek adjournment is a functionality provided to an assessee to submit a request to extend the response due date of a notice issued by an Income Tax Authority if the assessee is unable to submit response within the notice submission timelines mentioned. *Q: Who can avail seek adjournment facility?* A:  Those taxpayers for whom a hyperlink “Seek” is enabled against a notice, as appearing in the e-Proceeding module under the column “Seek/View adjournment”. *Q: Is there any date limit up to which adjournment request can be sought?* A:  Yes, • If adjournment is sought before the response due date then up to 15 calendar days from notice response due date. • If adjournment is sought after response due date then up to 15 calendar days from the date of seeking adjournment. • However, no adjournment request can be raised for a date falling within 7 days prior to the “Proceeding Limitation Date”.

  It is informed by the Central Board of Direct Taxes (CBDT) that UDINs have not been updated at the e-filing portal for around 2.68 lakh IT forms uploaded by the Chartered Accountants on behalf of their assessees which would result in invalidation of such IT forms. The members are hereby advised to update the UDINs at the portal immediately. It is also given to understand that owing to several reasons, generation of the UDINs for the documents signed during 1st February 2019 to 31st January 2021 could not be done by the members upto 28th February 2021. Accordingly, in order to mitigate the likely hardships that would be faced by the tax payers due to non-compliance owing to such invalidation, the Condonation Scheme to regularize UDINs provided by the ICAI vide its announcement dated 31st January 2021 which ended on 28th February 2021 is now being extended upto 31st March 2021. Whereby, all the missed UDINs between the period 1st February 2019 to 10th March 2021 can now be generate...

The following  points are the *important* to be noted. 1. For Aggregate Turnover upto Rs.5 Crore *4 digits* to be mentioned if supplied to *Registered person* and *NIL* digits if supplied to *unregistered person*; 2. For Aggregate Turnover above Rs.5 Crore *6 digits* to be mentioned *for all supplies*; 3. For exports 8 digits to be mentioned in export invoices and is also a requirement as per Foreign Trade Policy; 4. It’s optional to show HSN codes in B2C invoices for turnover below 5 crores; 5. 49 chemicals as per Notification no. 90/2020 dated 01/12/2020 have to be mandatorily shown under 8 digits code; 6. It is mandatory to report minimum digits as above in Table 12 of *GSTR 1* and *Tax Invoice* also. 7. There is also a fine of Rs. 50,000/- (Rs. 25,000/- under each of CGST + SGST Acts) for committing a mistake related to this particular scenario under section 125 of the GST Acts. 8. All the tax invoices therefore should contain HSN digits, description of goods and tax rates spec...

Finance Act, 2020 came with extensive changes regarding taxation and governance of existing as well as new, Charitable trusts and NGOs.  The new act has brought in a latest procedure for universities, hospitals, charitable trusts, educational institutions etc. The modifications were related to the registration/re-registration procedure of all trusts under section 12AA of the Income-tax Act, 1961, renewal of registration, approval for deduction u/s 80G and issuing a statement of donations received to the Income Tax authorities.  A new section 12AB has come into action which will replace the provisions of registration under section 12A of the IT Act. It ordained all charitable trusts registered under section 12A and 80G to make an application of re-registration from  1st October 2020 to 31st December 2020 but due to the current situation of the pandemic, the date has been postponed to 1st April 2021.  The Income-tax Act grants tax exemptions to institutions involved in...

*A financial year (FY) is the annual year that extends from April 1 to March 31. And, as the same time period is getting close to hitting its end*, it's necessary that you determine some of the financial responsibilities that need to be finished before the deadline. If you do not complete your tasks by the deadline, you may face penalties. Let's look at the fines *you may face if you don't complete these activities by March 31*. 1) Minimum contribution towards PPF In order to keep the account active every financial year, you must make a minimum investment of Rs500 in your PPF (Public Provident Fund) account. Your account will become dormant if you fail to make the minimum contribution. After you incur the penalty and deposit the minimum deposit amount, the account will become active. 2) Minimum contribution towards NPS In the NPS (National Pension System) Tier 1 account, a minimum contribution of Rs 500 is required and towards NPS Tier 2 account the minimum contribution lim...

What Will Happen if PAN become invalid/inoperative 1. Not able to open the D-Mat Account 2. Not able to open Bank account 3. Not able to file the income tax return (means you will not abe to claim refund if you have) 4. If you have FD then higher amount of TDS will be deducred on your interest (7.5% to 20%) 5. Your employer will deduct the TDS@ higher rate i.e 20%. Link your Pan number with Aadhar else penalty may cross Rs.1000.  31.03.2021 is the last date.  Link below for the same https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html   The deadline to link your Aadhaar and your PAN (permanent account number) is March 31. Your PAN will become void if you do not comply.  The government has placed an amendment in the Finance Bill, 2021, approved by the Lok Sabha on Tuesday, under which individuals will be responsible for paying a late fee of up to Rs1,000 if their PAN is not linked to their Aadhaar number.  A new Section 234H of the F...

  TDS u/ s 194 Q has been  introduced by the GOI in Budget 2021 and the same will be applicable from 1 St July 2021. This  is additional Compliance we have to comply w.e.f. 01/07/2021. 206C(1H)- TCS is already implemented  w.e.f 01/10/2020. Please refer the below table for  Difference between 206C(1H) Vs 194Q for easy reference. Section 206C(1H) Vs 194Q      Income Tax Section S.No Particulars 206C(1H) 194Q 1 TCS/TDS Tax to becollected  (TCS) Tax to be deducted  ( TDS) 2 Applicabile to Whom Seller Buyer 3 Opposite Party Resident Buyer Resident seller 4 With Effect From 01-10-2020 01-07-2021 5 Conditions a.Turnover/Gross Receipts/Sales from the business of SELLER sho...

  GOI introduced the Social Security code 2020 and the rules are drafting stage, As per latest news SSC’2020  will get into implemented from 1-04-2021. Small analysis made on old Labour Laws Vs New Labour code (SSC 2020). Please find the below analysis for your reference.   Impact: For employers : Additional cost on account of PF contribution on basic salary which is 50% of monthly salary. For Employees: Take home salary will be reduced.     Particulars Old Labour Laws New Labour Code – (SSC 2020) Remarks 1 Gross Monthly salary/Monthly CTC 1,00,000 1,00,000 (a+b+c), Assume 1 Lakh salary a Basic salary 15,000 50,000 Since Basic should be 50 % of monthly salary under SSC 2020 (a*50%) b Employer PF contribution@12% 1,800 6,000 a*12% c ...

The Central Board of Indirect Tax and Customs (CBIC) and Central Board of Direct Taxes (CBDT) signed the Memorandum of Understanding (MoU) for exchange of information on a real time basis. After this the GST portal is linked with the Income tax portal.  The assessee who has not filed the income tax return or GST return will be able to see their GSTR-2A purchases on the income tax portal.  Further TDS and other High Value Transactions information is available with the Income Tax Department. You may get a message like this from the Tax department, “the Income Tax Department has received information on financial transactions/activities relating to XXXXXX729X for Financial Year 2019-20.  However, as per records available, you do not appear to have filed an Income Tax Return for Assessment Year 2020-21 (relating to FY 2019-20).” Nothing to worry about this message.  This is similar to Marketing campaign. The Tax department is sending email/sms to the taxpayers that they h...

 Govt. notifies Finance Act, 2021  Finance act can be accessed under the below link.. https://drive.google.com/file/d/1va4KNjghKgBxp6f7k61DvHWba_qW7kWZ/view?usp=drivesdk The Government has notified the Finance Act, 2021. The government notified that Sections 2 to 88 shall come into force on 1 April 2021 and sections 108 to 123 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.  The Equalisation Levy was introduced on non-resident e-commerce operators on consideration received from e-commerce supply or services, by Finance Act 2020, from April 1, 2020.  E-commerce supply or service was very widely defined to include “online sale of goods” and “online provision of services”.  Finance Bill 2021 sought to provide an explanation to include any of the following activities for the transaction to be considered as the online sale of goods or online provision of services – acceptance of offer for sale, placi...

 *MCA Updates* *1. Mandatory use of Accounting Software having Audit Trail* From FY commencing on 01.04.2021, every Company shall use Accounting Software having feature to record audit trail of each transaction, creating the edit log of changes made & ensuring that the audit trail cannot be disabled.  Link: http://mca.gov.in/Ministry/pdf/AccountsAmendmentRules_24032021.pdf *2. Other Matters to be Included in Auditors Report* a. Reporting regarding advances, loans & Investment other than disclosed in notes to accounts. b. Receiving of funds for further lending or investing other than disclosed in notes to accounts. c. Dividend declared or paid is in compliance of section 123 of CA, 2013. d. Comment of use of Accounting Software having Audit Trail & other rules therein. Link: http://mca.gov.in/Ministry/pdf/AuditAuditorsAmendmentRules_24032021.pdf *Amendments in Schedule III from 1st day of April, 2021* As per the amendments many new disclosure has been mandat...