Understand Global Minimum Corporate Tax.

The finance ministers of the G20 endorsed the agreement reached by 130 countries on fundamental changes to how the profits of the largest multinationals should be taxed. It includes the eye-catching proposal for a global minimum corporate tax rate of at least 15%.

Summary Of Specified Property Chargeable Under Section 56(2)(X) Of Income Tax Act.

 

 

PARTICULARS	POINT                  OF TAXATION	AMOUNT TAXABLE	TAXED INDIVIDUALLY OR CUMULATIVE
Any sum of money whether in cash or by cheque/draft/pay order or any other mode	If received without consideration	If the aggregate value of such sum of money exceeds Rs 50000, then the entire amount	On aggregate basis Money received on different dates or from different person to be clubbed to arrive at the amount of Rs. 50000.
Any immovable property received without consideration	If received without consideration	If the stamp value of such property exceeds fifty thousand rupees, the stamp duty value of such property	Taxed individually. Each transaction will be taxed separately
Any immoveable property received for a consideration less than stamp duty value of property	If received for a consideration which is less than the stamp duty value of property by an amount exceeding Rs 50000.	Stamp value of such property as exceeds such consideration [ upto assessment year 2018-19]. The Finance Act 2018 provides that where any person receives, in any previous year, from any person or persons any immovable property as exceeds such consideration, if the amount of such excess is more than the higher of the following amounts, namely:- (i)   the amount of fifty thousand rupees; and the amount equal to five per cent of the consideration [ Raised to ten per cent of the consideration from the AY 21-22 by the Finance Act, 2020. ] shall be taxed as income from other sources. [ from AY 2019-20	Taxed individually Each transaction will be separately taxed .
Any property other than immovable property received without consideration	If received without consideration	If the aggregate fair market value of such property exceeds fifty thousand rupees the whole of the aggregate fair market value of such property	Taxed on aggregate basis. Value of property received on different dates or from different person to be clubbed to arrive at amount of Rs. 50000.
Any Property other than immoveable property, received for a consideration less than fair market value	If received for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees	Aggregate fair market value of such property as exceeds such consideration	—do———–

 

Unresolved issues of ITC

 

It is now  4 years since the groundbreaking legislation changed the whole landscape of indirect taxes in India. But, the GST law is far from perfect and the anomalies become more apparent as the days go by. The legislation at the outset had numerous gaps, and the numerous amendments have played their part in increasing those gaps.

Understand New Concept of Tax Residency

 

 

Tax Residency is one of the main decisive factors for establishing the category of taxpayer and devising nexus with a country's tax laws. Globally, the residential status of a person is a key factor in determining his or her taxability in a particular country which is different from citizenship. In India, Tax residency is determined u/s 6 of the Income-tax Act which until the amendment brought in by Finance Act, 2020 did not consider citizenship to be a determining factor/ condition. Indian Government introduced certain major amendments in Sec. 6 as anti-avoidance provisions that largely base its premise on 'citizenship' rather than 'the number of days of stay in India'.

GST on Prize money.??

 

Contractually, money paid into the pool account is non-refundable. And Payee of the prize (Winner) is one among several Payers (Participants). So, what does consideration procure? Right to participate and stand a chance to win.

Extension of Important Income tax due dates.

 

Given below the summary of the extension provided by CBDT.

SN	Compliance	Actual due date	Extended due date.
			Circular No. 9  dated May 20, 2021.	Press Release dated June 25, 2021
1	Statement of Financial Transactions	May 31, 2021	June 30, 2021	July 31, 2021
2	E TDS return	May 31, 2021	June 30, 2021	July 15, 2021
3	Issuance for Form 16	June 15, 2021	July 15, 2021.	July 31, 2021
4	Income tax return – non audit case	July 31, 2021	Sep 30, 2021
5	Submission of tax audit report	Sep 30, 2021	Oct 31, 2021
6	Furnishing of TP report -  Form 3CEB	Oct 31, 2021	Nov 30,2021
7	Income tax return – audit case non TP	Oct 31, 2021	Nov 30,2021
8	Income tax return – audit case with TP	Nov 30,2021	Dec 31, 2021
9	Belated/ Revised return	Dec 31, 2021	Jan 31, 2022
10	Objection to DRP u/s 144C	June 01, 2021	NA	Aug 31, 2021
11	Filing of Form 10A by Charitable Trust	June 30, 2021	NA	Aug 31, 2021
12	Linking of Aadhar with PAN	June 30, 2021	NA	Sep 30, 2021
13	Assessment & Penalty order	June 30, 2021	NA	Sep 30, 2021

Tax treatment of TDS claim written off.

 

Nowadays neither CPC, Bangalore neither AO is allowing TDS credit unless and until the TDS amount is not reflected in FORM 26AS. Where Assessee after due efforts is not getting the total credit of the TDS amount equals to the TDS amount reflected in ' TDS RECEIVABLE A/C', and AO or CPC are allowing SHORT TDS credit, because of that ' TDS RECEIVABLE A/C ' showing Debit Balance.

GST Council decides to reduce tax rates on items related to Covid relief

 

This Tax Alert summarizes a recent press release¹ issued by the Ministry of Finance. The 44^th meeting of Goods and Services Tax (GST) Council was held on 12 June 2021. 

The Mockery of ease of doing business

 

The Chief policymakers of the country are making a sound that they implementing policies to do ease of doing business in the country but we find every time the bureaucrats who draft these policies are actually making a mockery of the term ease of doing business.  This statement becomes more true when we can see the hardship to the business by the following change in TDS rules from July 2021.

The Mockery of ease of doing business

 

The Chief policymakers of the country are making a sound that they implementing policies to do ease of doing business in the country but we find every time the bureaucrats who draft these policies are actually making a mockery of the term ease of doing business.  This statement becomes more true when we can see the hardship to the business by the following change in TDS rules from July 2021.

Guidelines and FAQs About E-Filing applications before a Bench of Income Tax Appellate Tribunal

1.    E-Filing is the process of electronic online filing of appeals and applications before a Bench of Income Tax Appellate Tribunal.  An Assessee or Assessing Officer or any other person, who is entitled to file an appeal, cross objection or application before the Tribunal u/s. 253 of Income Tax Act, 1961, can file the same through e-Filing Portal.  This provision will apply to appeals under other enactments mutatis mutandis.

GST RELATED STATUTORY COMPLIANCE DUE DATES - JUNE-2021

 

Due Date	Statutory Compliance	Description
4	GST GSTR-3B	GSTR-3B April-2021 - Extended Due date for Taxpayers having Turnover more than ₹ 5.0 crores in the previous FY (With reduced rate of Interest @ 9% p.a.on the Tax Payable and without late filing fees).

The flaws of faceless appeal scheme

 

The flaws of faceless appeal scheme.

FAS has been introduced in September 2020, by the government to  eliminate the  face to face contact between the taxpayer and tax department and to run government administration with the help of technology. The new FAS is a digital communication process between NFAC, RFAC & AU.   The relevant provisions dealing with the appeal process are contained in S-249 and S-250 read with  Rules 45, 46 and 46A. Within the framework of these Sections, the FAS seeks to introduce digital authorities to coordinate and deal with the appeal process viz. NFAC, RFAC and the AU. The sum and substance of the FAS is the prescription and description of the communication process between these various digital authorities (including the National e-assessment Centre and the Assessing Officer under the Faceless Assessment Scheme) and the assessee and referring the draft appeal orders - mandatory in case the sum involved exceeds a threshold -initially to a second appeal unit for review and to a third appeal unit in case any variations proposed by the second appeal unit are to be confirmed and thereafter to the assessee, for comments.

GST return Due Dates from March 21 to June 21.

 

GST Council Meeting Key decisions

 

 

COVID Equipments

Ø  As a COVID-19 relief measure, specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto 31.08.2021. Hitherto, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.20201. It may be mentioned that these goods are already exempted from Basic Customs duty.

 

Which tax deadlines not extended

 

The CBDT  vide circular no. 9 dated May 20, 2021, extended the number of Income tax due dates for the financial year 2021 to provide some relief to the taxpayer during the second wave of covid and lockdown in the country. However, we find that following CBDT gas not extended the due dates for the following compliances and this will continue the hardship to the taxpayer.

Tax challenges of CSR trust during Pandemic

I am a CSR trust of a company whose main purpose is to serve society. During this pandemic era, I am also required to help people in need and I am doing that. However, while performing my duty I found a few challenges and some of them are mentioned below.

Legal Maxims in GST

 

Legal Maxims simple meaning is legal phrase and in the Latin language, these are used to interpret or explain a legal principle. Though there are plenty of legal maxims, here are 5 commonly used Legal Maxims with meaning & application in GST

1. 𝘕𝘰𝘯-𝘰𝘣𝘴𝘵𝘢𝘯𝘵𝘦
Means ‘Notwithstanding’, used for overruling sections
Provision of blocked credit [Section 17(5)] is a non-obstante clause
 
2. 𝘔𝘰𝘥𝘶𝘴 𝘖𝘱𝘦𝘳𝘢𝘯𝘥𝘪
Refers to a specific mode of operation
Normally, used to describe the method of working of fictitious firms
 
3. 𝘔𝘶𝘵𝘢𝘵𝘪𝘴 𝘔𝘶𝘵��𝘯𝘥𝘪𝘴
Means making necessary changes without affecting the main point
Provision of refund, audit, ITC, etc., from the CGST Act are applicable under the IGST Act as well [Section 20]
 
4. 𝘘𝘶𝘪𝘥 𝘗𝘳𝘰 𝘘𝘶𝘰
Favour granted in return for something
Generally, used in the context of supply being made in exchange of consideration
 
5. 𝘈𝘶𝘥𝘪 𝘈𝘭𝘵𝘦𝘳𝘢𝘮 𝘗𝘢𝘳𝘵𝘦𝘮
Means the other side be heard as well; indicates principles of natural justice
‘Opportunity of being heard given to a person before passing an order  

Extension of Income tax due dates.

 

Circular No. 9  dated May 20, 2021.

Today CBDT almost tax due dates by one month and given below summary of important extension.

SN	Compliance	Actual due date	Extended due date.
1	Statement of Financial Transactions	May 31, 2021	June 30, 2021
2	E TDS return	May 31, 2021	June 30, 2021
3	Issuance for Form 16	June 15, 2021	July 15, 2021.
4	Income tax return – non audit case	July 31, 2021	Sep 30, 2021
5	Submission of tax audit report	Sep 30, 2021	Oct 31, 2021
6	Furnishing of TP report -  Form 3CEB	Oct 31, 2021	Nov 30,2021
7	Income tax return – audit case non TP	Oct 31, 2021	Nov 30,2021
8	Income tax return – audit case with TP	Nov 30,2021	Dec 31, 2021
9	Belated/ Revised return	Dec 31, 2021	Jan 31, 2022

No extension for payment of self asst. tax under section 234A if the amount payable exceeds Rs. 1 Lakh.