Weekly Taxation Newsletter

weekly taxation newsletter - TC VIP PLAN

This newsletter is a weekly compilation of interesting and latest news related to tax including upcoming Timelines / Due Dates, Notifications / Press Information, Case Laws, International Taxation etc.

Stay updated, Stay connected

  • Under the Income Tax act, 1961
Sl.Compliance ParticularsDue Dates
  1Deadline for filing revised/Belated ITR with cost of Rs.10,000 (Note: no benefit of filing belated or revised return of FY 2020-21will be available) once this deadline is missed then you will not be able to file ITR for FY2019-20, nor you be able to file revised ITR for FY 2019-20. You will be liable to pay late filing fee of Rs 10,000 for filing belated ITR.  31.03.2021
2Not linking  PAN with AADHAAR will lead to inoperative of PAN31.03.2021
3Due date of payment of final amount of advance tax for FY 2020-21 (100% of Tax Liability)31.03.2021
4Filing quarterly statement of TDS/TCS deposited for Q1 and Q2 for FY 2020-21 (Extended Date)31.03.2021
5Vivad se Vishwas Scheme – Settling tax disputes between individuals and the income tax department31.03.2021
6Date for passing of order or issuance of notice by the authorities and various compliances under various direct taxes &Benami Law  31.02.2021
  • Under the GST, 2017

A. Filing of GSTR –3B

A. STR 3B Due Dates for May 2020

1. Taxpayers having aggregate turnover >Rs. 5 Cr. in preceding FY

Tax periodDue DateNo interest payable tillInterest payable @ 9% from & tillInterest payable @ 18% from
February, 202120th March, 2021

2. Taxpayers having aggregate turnover uptoRs. 5 crores in preceding FY (Group A)

Tax periodDue DateNo interest payable tillInterest payable @ 9% from & tillInterest payable @ 18% from
February, 202122nd March, 2021   
Group A States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep

3. Taxpayers having aggregate turnover uptoRs. 5 crores in preceding FY (Group B)

Tax periodDue DateNo interest payable tillInterest payable @ 9% from & tillInterest payable @ 18% from
February, 202124th March, 2021   
Group B States:  Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi

B. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers

Form No.Compliance ParticularsTimeline Due Date
GSTR-5 & 5ANon-resident ODIAR services provider file Monthly GST Return20th of succeeding month           20.03.2020

C. GST Annual Returns:

Form No.Compliance ParticularsDue Date (New)
GSTR-9  (FY 2019-20)Taxpayers having an aggregate turnover of more than Rs. 2 Crores or opted to file Annual Return.31.03.2021
GSTR-9C (FY 2019-20)Reconciliation Statement/ Audit Report for Taxpayers having a Turnover of more than Rs. 5 crores.31.03.2021

D. GST Refund:

Form No.Compliance ParticularsDue Date
RFD -10Refund of Tax to Certain Persons18 Months after the end of quarter for which refund is to be claimed

E. Other Due Dates:

Compliance ParticularsDue Date
Updation of GSTN in Udyam Registration31.03.2021
Opt in GST Composition Scheme31.03.2021

Weekly Departmental updates: Income Tax

1. Income Tax department unearths over Rs 1000 crore black money from two Chennai-based groups

The Income Tax Department has uncovered undisclosed income over Rs 1000 crore and unaccounted cash worth over Rs 1.2 crore while investigating two Chennai-based groups. One of them is a leading bullion trader in the state of Tamil Nadu, while the other is one of the biggest jewellery retailers in South India.

2. From ITR to PAN-Aadhaar linking: Tax-related tasks to complete before March 31

Taxpayers need to ensure that all the tax-related tasks are completed before March 31, when the financial year 2020-21 will end. Other than tax-saving investments, taxpayers also need to complete other tax-related tasks in order to avoid penalties. The financial year is counted between April 1 and March 21, a period during which tax is calculated on the income earned by people.

3. From ITR to PAN-Aadhaar linking: Tax-related tasks to complete before March 31

The Supreme Court has ruled that payments by Indian end-users or distributors of overseas software can’t be considered taxable as ‘royalty’, under tax-treaties containing the definition on the lines of the OECD Model Convention. The SC has followed the globally-accepted interpretation—payment made by end-users and distributors is akin to payment for sale of goods and is not for grant of licence under the Indian Copyright Act. Only where copyright in the software is permitted to be exploited by the payer can the payment take the character of royalty and be subject to tax, per tax-treaties.

In case of net-of-tax contracts, where payers may seek refunds, the refunds will then have to be remitted to non-resident payees.

Filing revised ITR  Filed anytime on or before March 31 which is the end of the assessment year 2020-21. The deadline for a revised return is also March 31.
Filing advance taxMarch 15 was the deadline for paying the fourth instalment of advance tax for the financial year 2020-2021.
Linking PAN with AadhaarMarch 31 is also the deadline for linking PAN with Aadhaar.
Vivad Se Vishwasthe deadline for filing declaration is March 31, 2021.

4. Supreme Court on software taxation: A torch-bearing verdict in the tax-treaty space

Whether the licence to use computer software is a transfer of copyright was the core issue before the Supreme Court in the case of Engineering Analysis and a batch of over 80 appeals that was decided on March 2. The question arose in view of the Karnataka High Court deciding in the affirmative, thereby obliging the licensees to deduct tax from the payment for obtaining the right to use the software, though most other High Courts, particularly the Delhi High Court, had decided the issue in favour of the taxpayer. The Supreme Court reversed the Karnataka decision and declared that such licence does not constitute a transfer of copyright, either under the copyright law or under the Income Tax law. If the decision would have stopped here, it would have been just another precedent for practitioners of tax law. However, the March 2 verdict marks a watershed moment for India’s tax policy in general, and in particular, for international customary law of treaties. Hence, this development requires a commentary to absorb the 226-page landmark judgment.(Read more at Click Here)

  • Important Circulars andNotifications:
Sl.Particulars of the Notification(s)File No. / Circular No.Notification Link(s)
1.M/s Bennett University, Greater Noida, Uttar Pradesh under the category of ‘University, College or other institution’ for Scientific Research and ResearchNotification No. 12 /2021/ F.No. 203/13/2019/ITA-II  LINK
2.TheIncome-tax (2nd Amendment) Rules,2021Notification No. 13/2021/ F. No. 142/15/2015-TPL  LINK
  3.Amendment in thenotification no. 70 / 2014 dated the 13th November, 2014.Notification No. 14 /2021./F. No. 187/7/ 2021 (ITA-I)  LINK
4.TheIncome-tax (3rd Amendment) Rules, 2021.Notification No. 15/ 2021/F.No. 370142/04/2019-TPL  LINK
  5.TheIncome-tax (4th Amendment) Rules, 2021Notification No. 16/2021] [F.No. 370142/03/2021-TPL  LINK
  • Weekly Departmental updates:

GST Updates

1. Taxpayers are required to select their business activity only once, as – Manufacturer, wholesaler/Distributor/Retailer, service providers & others post login based on highest turnover amongst them. You can change the same later.

2. GST evasion: CBIC asks field offices to exercise max caution, prudence in property attachment

The CBIC has directed its field offices to exercise utmost prudence and maximum caution in attachment of property of a taxpayer and said that such a remedy can be considered in cases involving GST evasion, fake invoicing and delay of more than three months in depositing tax collected.

3.FM-speak: GST Council will decide on oil-in-GST

Amid a clamour for cut in taxes on auto fuels to check their skyrocketing retail prices, finance minister NirmalaSitharaman on Friday told a group of journalists at the Indian Women’s Press Corps that the government was not yet ready with a plan to bring these petroleum products under the goods and services tax (GST) regime, but indicated that it might take a call on the issue closer to the GST Council meeting.

4.GST e-invoicing mandatory for turnover of Rs 50 cr and above from April 1, 2021

E-invoicing under the goods and services tax (GST) regime will become mandatory for entities with a turnover of Rs 50 crore and more from April 1 for business to business transactions, the government said in a notification on Monday. This will be the third phase of e-invoicing roll out, which was rolled out for entities with Rs 500 crore and more turnover from October 1 last year and later extended to entities with Rs 100 crore and above from January 1 this year.

The government had earlier planned to extend e-invoicing to all entities from April 1, 2021, but has refrained, taking care of interest of small entities.

5. Government plans to include GST in UPI QR code

The government is looking at upgrading the QR code for UPI in such a way that it can incorporate the GST component and show the same separately. This will enable the government to come out with fiscal incentives for payments that are made digitally.

The National Payments Corporation of India (NPCI) is working on UPI to enable this feature, CEO DilipAsbe revealed. According to Asbe, when both ends of the payment are driven by software with information going to a cloud, there is no limit to the innovation that can take place. Additionally, information provided to the merchant and customer can grow manifold.

6. No proposal for scrutiny of GST assessment in faceless mode: Anurag Thakur

There is no proposal of faceless scrutiny assessment of GST returns as the Goods and Services Tax rule already provide for electronic filing and assessment, Minister of State for Finance Anurag Singh Thakur said on Tuesday.

Income tax assessments are being done in a faceless manner except in certain conditions and till March 10, a total of 82,072 assessment cases have been completed in a faceless manner, he added.

  • Important Notifications under Excise / Custom/ GST:
Sl. No.Depart-ment  Particulars of the Notification(s)File No. / Circular No.Notification Link(s)
  1.  GSTSeeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 50 Cr from 01st April 2021.05/2021-Central Tax dated 08.03.2021  LINK
  2GSTseeks to clarify certain refund related issues147/02/2021-GST    LINK
  3.  GSTSeeks to impose definitive anti-dumping duty on imports of Ciprofloxacin Hydrochloride originating in or exported from China PR for a period of five years from the date of levy of provisional anti-dumping duty, i.e. 2nd September, 2020. 13/2021-Customs(ADD), dt. 11.03.2021             LINK
    4.  CustomSeeks to impose definitive Countervailing/anti-subsidy duty on imports of “Textured Tempered Glass” originating in or exported from Malaysia03/2021-Cus (CVD) d.t 09.03.2021                         LINK

Important Case-laws

Income Tax

1.Ashok Kumar Goel v. Public Information Officer VAT, Ward No. 64

[LPA NO. 190 OF 2012, dated 7-3-2012] Bench : A.K. Sikri, ACTG., C.J. and Rajiv SahaiEndlaw, J.

Section 8 of the Right to Information Act, 2005, read with section 98 of Delhi Value Added Tax Act, 2004 – Exemption from disclosure of information – Commercial confidence – Appellant sought information related to returns filed by his brother’s firm intending to settle personal scores – No public interest could be said to be involved at all in seeking this information by appellant from Sales-tax Commissioner – HELD: Information given in returns filed by a firm was in nature of commercial confidence – Information which appellant sought in instant case was duly protected under provisions of section 8(1)(d) and it was rightly not supplied by CPIO to appellant [Paras 6 and 7]

2.Chief Information Commissioner v. State of Manipur

[Civil Appeal Nos. 10787-10788 of 2011, dated 12-12-2011] Bench :Asok Kumar Ganguly and GyanSudhaMisra, JJ

Section 18, read with section 19, of the Right to Information Act, 2005 – Power and functions of Information Commissions – When a person is refused access to information, section 18(1) empowers Central/State Information Commission to receive and enquire into his complaint while section 19 is applicable when Central/State information officer refuses access to information and it provides for an appellate remedy and thereafter for second appeal before Central/State Information Commission – HELD: Thus, where a complaint was filed under section 18, Central/State Commission could not pass an order providing for access to information; such a remedy is available in appeal filed under section 19 [Paras 29 and 32]

  • Important Case-laws
  • GST Law:

 

1Mancare International (P) Ltd. vs C.G.S.T. & C.E., Dehradun)

Court: GSTAT Delhi Date of Order: 2018-09-25

Present Order disposes off an application praying for rectification of mistake for Final Order dated 11.01.2018. It is  submitted that the appellant is manufacturing certain tablets,  capsules, syrups, ointments, etc and is availing area based  exemption under Notification No. 50/2003 dated 10.06.2003.  For the purpose, two conditions have to be fulfilled. First, the unit has to be established in the geographical area mentioned in the Notification. Secondly, the unit has to manufacture those excisable goods which are not prohibited in the Notification that too under declaration to the Department. In the present case, the first clearance of goods was made by the appellant on 30.12.2009 in terms of the said Notification.  However, due to inadvertence, the applicant did not file the declaration with the respondent Department. But, he voluntarily filed the declaration on 30.05.2013 alongwith the returns declaring the date of exercising option as 21.11.2009, i.e. the date when applicant unit commenced commercial production as a new unit.

2. Hotel PLA Rathna Residency vs Commissioner of GST & Central Excise, Trichy,  Court: GSTAT Chennai   Date of Order: 2018-09-24

Ld. Counsel Shri M.N.Bharathi submits that the appeal ought to have been filed on 30.11.2017; that the appeal papers were handed over to appellant’s authorized Chartered Accountant which were misplaced in the office of the C.A; the appellants have good case on merits to succeed. The delay is neither deliberate nor wanton. The appellant being a small business entity, if delay is not condoned, he would be put to irreparable financial hardship.

  • International Taxation Corner (ITC)

1.US drops demand for ‘safe harbour’ in global tax talks

Tax experts and finance officials around the world had warned that the US proposal could have allowed big US companies like Amazon, Alphabet’s Google and Facebook to opt out of whatever was agreed internationally.

US treasury secretary Janet Yellen told G20 officials that Washington had dropped the Trump administration’s proposal to let some companies opt out of new global digital tax rules, US and European officials said on Friday, raising hopes for an agreement by summer.Tax experts and finance officials around the world had warned that the US proposal could have allowed big US companies like Amazon, Alphabet’s Google and Facebook to opt out of whatever was agreed internationally.

2. Email exchange within firms, transactions on internal systems may face 2% tax

As India broadened the scope of equalisation levy without clarifying what exactly it means by e-commerce or online, a new set of problems is set to create fresh headaches for several Indian subsidiaries of multinationals.

A request by an automobile company to its parent located outside India for shipping back certain spare parts through an internal system, hotel booking made by an Indian CEO in a foreign location or an email exchange about developing a particular software—all these could now attract equalisation levy.

The government has further expanded the scope of the equalisation levy – imposed on cross border digital transactions in 2016 in a bid to tax internet giants’ digital advertising revenues from India to include any purchase by an Indian or India-based entity through an overseas ecommerce platform.

India was the first country to introduce a digital tax in the form of equalisation levy. India in 2018 had said that global digital companies had a large consumer base in India but did not pay enough taxes. (Read more at Click Here)

  • Knowledge Bucket for NRI’s
  • NRI Income exempt from tax

Following incomes are exempt from tax in the hands of a Non-resident Indian (NRI):-

 1.  Interest on notified savings certificates issued before 01-06-2002 by the Central Government if it is subscribed in convertible foreign exchange remitted from a country outside India [section 10(4B)]

 2.  Interest on notified bonds (notified prior to 01-06-2002) purchased in foreign exchange (subject to certain conditions) [section 10(15)(iiad)]

  1. IFSC of 8 bank are changed due to merger. Taxpayers may update their Bank Account details through non-core Amendments and update refund application, in case failed due to validation error sent by PFMS.
  • Classification of Taxpayers

Taxpayers are required to select their business activity only once, as – Manufacturer, wholesaler/Distributor/Retailer, service providers & others post login based on highest turnover amongst them. You can change the same later.

  • e-invoicing for taxpayers

The Government had mandated e-invoicing for the taxpayers with aggregate turnover exceeding Rs. 500 Cr. from 1st Oct., 2020 and for taxpayers with aggregate turnover exceeding Rs. 100 Cr. from 1st Jan., 2021. From 1st April, 2021, Government has mandated e-invoicing for taxpayers with aggregate turnover exceeding Rs. 50 Cr. (in any preceding financial year from 2017-18 onwards).

Disclaimer:

Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

_______________________Thank You_____________________

S&P BSE SENSEX  ^BSESN 
₹ 48,832.03  ₹ 28.35  0.06%  
NIFTY 50  ^NSEI 
₹ 14,617.85  ₹ 36.40  0.25%  
NIFTY BANK  ^NSEBANK 
₹ 31,977.45  ₹ 135.40  0.42%  
USD/INR  INR=X 
₹ 74.47  ₹ 0.3440  0.46%  
CBIC- Attention Taxpayers Today is last Date of GSTR-1 GST TAXPAYERS WHO ARE UNDER QRMP SCHEME? Auto-population of e-invoice details into GSTR-1 trial ITR 1 and 4 Utilities for has been available for E-filing for the Assessment year 2021-2022 Accounting Software with Audit Trail Just In:- CBDT Issue clarification Knowledge is Power! Latest Post