Tax Due date - November 2023.

 

S No	Due Date	Related to	Compliance to be made
1	11.11.2023	GSTR – 1	Filing of GSTR 1 for the month of October 2023
2	20.11.2023	GST	-Payment of GST for the month of October, 2023 -Filing of GSTR 3B for the month of October, 2023
3	07.11.2023	TDS/TCS (Income Tax)	·Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of October 2023. ·Deposit TDS from Salaries deducted during the month of October 2023 • Deposit TCS for collections made under section 206C including sale of scrap during the month of October 2023, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of October 2023, if any
4	30.11.2023	Filing of returns for the Company and Trusts	Filing of Master File data in Form 3CEAA for FY 2022-23.   Filing of income  tax return for the Corporate assesses with Transfer Pricing

Forms are required to be filled to report international transactions with related parties under Income Tax.

a)     Form 3CEB – As per section 92E of the Income-tax Act, every person who has entered into International Transaction or Specified Domestic Transaction during previous year shall obtain a report from a Chartered Accountant in Form 3CEB. Further, as per Rule 10E read with section 92F (Definitions), due date for furnishing report in Form 3CEB is 1 month prior to the due date for furnishing ROI u/s 139(1). 

 

RBI draft Master Directions on Managing Risks and Code of Conduct

 The Reserve Bank of India (RBI) today has issued the draft Master Directions on Managing Risks and Code of Conduct in Outsourcing of Financial Services. The RBI has invited the comments on the said Directions by 28 November 2023. Some of the proposed changes to the draft Master Directions are as under:

All About Partition of a Hindu Undivided Family (HUF):

 

·       Legal Framework: Section 171 of the Income Tax Act, 1961 provides the legal framework for the partition of a Hindu Undivided Family (HUF) and governs the assessment procedures following such partition.

Singapore Corporate Income Tax

·       The Income tax rate for is 17% of its chargeable Income.

 

GST on Secondment of Employees - ITC Eligibility

 Karnataka High Court (‘HC'), in the case of Toyota Kirloskar Motor Pvt. Ltd, has granted stay on the Show Cause Notice (‘SCN') issued for denying ITC of GST paid on secondment of employees from a foreign entity to an Indian entity. 

Supreme Court rules notification to be mandatory to invoke most favored nations clause

 

This tax alert summarizes a recent Supreme Court (SC) decision in a batch of appeals with lead case being that of Nestle SA^[1] (Taxpayers), wherein the SC set aside the underlying favorable Delhi High Court (HC) decisions^[2] and examined the following two issues:

CBIC issues Notifications pursuant to recommendations in 52nd GST Council Meeting

 This Tax Alert summarizes recent Notifications ^[1] issued by Central Board of Indirect Taxes and Customs (CBIC) pursuant to recommendations made in the 52nd Goods and Services Tax (GST) Council Meeting. The same are effective from 20 October 2023.

 

DGFT amends Import Policy Conditions for import of computers, laptops, tablets, and servers

 This Tax Alert summarizes a recent Notification^[1]  and Policy Circular^[2]  issued by the Directorate General of Foreign Trade (DGFT) amending and clarifying Import Policy Conditions for import of specified Information Technology (IT) hardware.

 

Recent ITAT Judgements.

 

·       Mumbai ITAT upholds penalty under black money law for non-disclosure of foreign assets in tax return

 

·       Mumbai ITAT in the case of Aruna Chandak held that Provisions of Sec 56(2)(vii)(C) are not applicable in the case of bonus shares.

 

·       Mumbai ITAT in the case of TCS held that there is no need to charge brand royalty from AEs.

 

·       Mumbai ITAT in the case of Total energies marketing held that ESOP is taxable in the hands of employees not at the time of grant of ESOP but at the time of vesting ESOP rights.

 

·       In the case of Subash Tandon v/s ITO, Delhi [ITA No. 1382/Del/2023], Delhi Tribunal held that amount received on redemption of Unit Linked Insurance Plan [ULIP] is taxed under the head “Income from Capital Gains” instead of taxing gross receipts under the head “Income from Other Sources” on the reasoning that ULIP is linked to the units of mutual fund allotted to the assessee in respect of money paid by him. Further, reference is also made to section 45(1B) of the Income-tax Act which also states that receipts from ULIP is taxed under “Income from Capital Gains”.     

 

·       ITAT Delhi in the case of LIFESTYLE PROBUILD PVT. LTD held that prescribed method for unquoted shares is not any specific method but it provides that assessee may obtain valuation report from merchant banker or accountant. In this case the assessee has obtained valuation report of the accountant. To this extent, valuation adopted by the assessee cannot be said to be not in accordance with law.

 

·       Bangalore ITAT in the case of Knowledge hut solutions held that TDS to be deducted only on commission charges and not on gateway charges.

 

·       Jaipur ITAT in the case of Mangalam Art held that Interest paid on TDS is compensatory in nature and is a business expenditure allowable u/s 37(1) of the Income Tax.   

  

·       The Pune Bench of Income Tax Appellate Tribunal (ITAT) held that the amount paid to the retiring partner in terms of settlement arrived at between two partners for giving up his interest in the partnership firm is a capital expenditure. 

Unlocking Tax Benefits for Senior and Super Senior Citizens

As we navigate the complexities of income tax, it's essential to be aware of the distinct tax benefits available to senior and super senior citizens. Here's a comprehensive overview of the key provisions designed to ease the tax burden for these age groups.

Taxpayer's Guide to Addressing Mismatched Tax Demand or Reduced Refund Intimation Notices

Filing an income tax return can often prove to be a challenging endeavor. Mistakes are not uncommon, and this is where the process of rectification becomes vital. In this article, we will delve into the concept of rectification, outline the types of errors you can rectify, elucidate who is eligible to file for rectification, and provide a step-by-step guide for online rectification.

Do you Know?

 01.      From Companies Act.

 

·       Listed companies should have financial reporting quality reviewer.

·       If someone from the entity filters the mails to be forwarded to the top management, then it can go against DPDP Act

·       Approval of financial statements by the Board requires filing of MGT 14 for public companies.

·       Rotation of auditors and rotation of audit partners, both are mandatory in case you are the statutory auditors of listed entities. 

DGFT amends Import Policy Conditions for import of computers, laptops, tablets, and servers

 This Tax Alert summarizes a recent Notification^[1] and Policy Circular^[2] issued by the Directorate General of Foreign Trade (DGFT) amending and clarifying Import Policy Conditions for import of specified Information Technology (IT) hardware.

Earlier, import of laptops, tablets, all-in-one personal computers, ultra-small form factor computers and servers falling under HSN 8471 were put under 'Restricted' category w.e.f. 1 November 2023 (subject to certain exceptions) and their import would be allowed against a valid license (Import Authorization)^[3].

Vide present Notification, exemption from obtaining Import Authorization for importing above stated IT hardware is extended to following cases:

Multiple tabs on GST Portal for Revenue to upload Notices and Orders

GST Portal plays a pivotal role in GST law as it facilitates various compliances like filing of returns, tax payments, uploading of Notices and Orders by Revenue, viewing and replying to Notices by taxpayers, filing of appeals etc.

Transfer pricing rules apply if counterparty becomes associated enterprise in same tax year.

 The decision of the Bangalore ITAT in the case of Palmer Investment Group Ltd in ITA No. 2929&2930/Bang/2018

Facts of the Case:

Recent Income tax judgements.

 Supreme court in the case of Krishak Bharti Cooperative Ltd held that Dividend Income from Indian Entity’s Establishment In Oman Having ‘Permanent Establishment’ Status Under DTAA Not Taxable In India

 

CBDT provides certain relaxations to charitable institutions for reporting details about Significant Donors and their relatives/concerns in audit report

 This Tax Alert summarizes a recent Circular No. 17/2023 dated 9 October 2023 (Circular) issued by the Central Board of Direct Taxes (CBDT) wherein the CBDT provides relaxation to charitable institutions in providing details of Significant Donors and its relatives/concern in audit report for tax year 2022-23. The CBDT provides that for the purposes of reporting in audit report, any person who has given donation of more than INR0.05m during the tax year may be considered as Significant Donor and past years donation may not be reckoned for the purposes of such reporting. Also, details of relatives/Concerns of such Significant Donor may be reported ‘if available’

Important decisions taken by GST Council in its 52nd meeting.

Decision 1 – Taxability of corporate guarantee by holding company to its subsidiary company

GST Council has proposed an amendment in GST Valuation Rules to prescribe the taxable value as 1 percent of the amount of guarantee offered by the Holding Company for its Subsidiary Company.

Navigating the Complexities of Taxing Cryptoassets: A Multifaceted Challenge

Taxation within the realm of cryptoassets and transactions involving cryptocurrencies presents a formidable and intricate challenge for both the tax and regulatory sectors. The complexity is underpinned by multiple factors, chiefly the intricate classification and characterization issues associated with cryptoassets. Moreover, the inherently flexible nature of cryptoassets, allowing for considerable restructuring in terms of origin, issuance, division, redemption, and more, further compounds this challenge.

Equalisation Levy: An Overview

Meaning: Equalisation levy is a form of direct tax withheld at the time of payment by the recipient of services.

Important Changes in Export Provisions under GST

 This update provides our insights into the latest amendments under Section 16 of the Integrated Goods and Services Tax Act, 2017 (‘IGST Act’).

Amendment 1: Supply to SEZ shall be treated as zero-rated supply only if made for authorised operations.

 

How to change company secretary of a Singaporean company.

 Quite few promoters would like to change the company secretary of a Singapore company.   In case you have something similar in your mind.  Below article might help you to make a sound decision. Please do refer the infographics. 

 

To change the company secretary of a Singaporean company, you'll need to follow these steps:

 

New TCS from 1st October 2023 for various foreign remittances:

 

1.     Educational Usage: Concerning sending money abroad for educational purposes, no Tax Collection at Source (TCS) is applied for amounts below Rs 7 lakhs. However, if the educational remittance exceeds Rs 7 lakhs, a modest TCS rate of 0.5% is levied. It's important to note that if the educational remittance is not funded by a loan, a slightly higher TCS rate of 5% is imposed. This ensures that significant educational expenses exceeding Rs 7 lakhs incur a reasonable TCS.