Supply of common administrative services by HO to other units leviable to GST: Haryana AAR

 

 

Summary

The Haryana Authority for Advance Ruling (AAR), in a recent case, has held that the services supplied by a head office to its other units/offices by way of performing activities, such as accounting, marketing support, administrative support, IT support, sales planning, training, policy formation, is leviable to GST. 
 

TCS ON SALE OF GOODS.

 

Applicability:

 

All Seller of goods (Seller of Services not covered) whose turnover (Sales) during the preceding previous year i.e. FY 2019 – 2020 is more than INR 10 Crores, they have to collect the tax (TCS) at the time of raising of invoices to the buyer and pay such tax (TCS) on receipt of payment from the buyer to the government exchequer w.e.f. 1st October 2020. This provision would be applicable only after threshold exemption limit of INR 50 Lakhs sale to each buyer of the goods.

This provisions would not be applicable if seller sells the goods to –

Interplay between TP and Indian Exchange Control Regulations - Part I

 

 

The Government of India (GOI) recently announced “Atmanirbhar Bharat Scheme” in order to bring various structural reforms for making India a ‘Self-reliant nation’. While GOI has been taking various measures for attracting Foreign Direct Investment (FDI) in India, recently it has made various announcements for opening new horizons of growth such as changing the definition of Micro, Small and Medium Enterprises (MSMEs), boosting scope of private participation in numerous sectors, increasing FDI in defence sector, etc. With such reforms introduced by GOI, the coming years are expected to see increased cross-border transactions from a different set of players. There are various tax and regulatory frameworks that provide governance with respect to cross-border transactions, which needs to be taken into consideration. In this two-series article, we have tried to present an overview of certain inter-company transactions between Multinational Group (MNE Group) entities and area of consideration having regard to Indian Transfer Pricing regulations (ITPR) and Indian Exchange Control Regulations (IECR).

Changes in Due Date and rates due to Covid19..updated till 10th sep 20

 

This document has been compiled on the data available to us. . 

We recommend that you seek professional 

advice prior to initiating action on specific issues.

Sl. No.	Particulars	Original due date	extended due date due to Covid		Changed Interest rate till extended due date	Changed Penalty & Late Fee till extended due date	Sources	Remarks
1	Income Tax Act
a	Filing of Income Tax return for FY 18‐19	31/03/2020	30/09/2020		no relaxation	No Penalty	Notification No. 56/2020 dt 29.07.2020
b	Filing of Income Tax return for FY 19‐20	31/07/2020 or 31/10/2020	30/11/2020		Nil	Nil	Notification No. 35/2020 dt 24.06.2020
c	payments of self‐assessment tax if self assessment Tax liability is less than 1 Lac for F.Y.2019‐20	31/07/2020 or 31/10/2020	30/11/2020		Nil under sec 234A	Nil	Notification No. 35/2020 dt 24.06.2020	Interst u/s 234B and 234C shall be levied. There is no extension of date for the payment of self‐assessment tax for the taxpayers having self‐assessment tax liability exceeding Rs. 1 lakh.
d	An individual resident in India referred to in section 207 (2) of the Income‐tax Act, 1961 (43 of 1961), the tax paid by him under section 140A of that Act within the due date (before extension) provided in that Act, shall be deemed to be the advance tax	31/03/2020	31/07/2020		Nil	Nil	Notification No. 56/2020 dt 29.07.2020	As per Sec 207(2) ‐ Senior Citizen (does not have any income chargeable under the head "Profits and gains of business or profession") not required to Pay Advance Tax.
e	payments of advance tax, self‐assessment tax, regular tax for others	Between 20th March 2020 to 30th June 2020	No change		9%	Nil	Ordinance dt 31st Mar 2020
f	Tax Audit Report for FY 2019‐ 20	30/09/2020	31/10/2020		Nil	Nil	Notification No. 35/2020 dt 24.06.2020
g	Vivad Se Vishwas Scheme	31/03/2020	31/12/2020		Nil	Nil	Notification No. 35/2020 dt 24.06.2020	Additional 10% not to be payable
h	Filing of Form 15G/H	07/04/2020	30/06/2020		Nil	Nil	Ordinance dt 31st Mar 2020
i	Filing of TDS return for Mar20 quarter ‐ Govt Offices	31/05/2020	15/07/2020		NA	Nil	Notification No. 35/2020 dt 24.06.2020
j	Filing of TDS return for Mar20 quarter ‐ Non Govt Offices	31/05/2020	31/07/2020		NA	Nil	Notification No. 35/2020 dt 24.06.2020
k	Issue of TDS / TCS certificates for Mar20 quarter	15/06/2020	15/08/2020		NA	Nil	Notification No. 35/2020 dt 24.06.2020
l	Payment of TDS /TCS for the month of March, April & May 2020	Between 20th March 2020 to 30th June 2020	No change		9%	Nil	Notification No. 35/2020 dt 24.06.2020	No extension till date for June 2020
m	Filing of TDS return for ‐ Non Govt Offices ‐ Quarter 1 (Apr ‐ Jun20)	31/07/2020	31/03/2021		no relaxation	Nil	Press relase dt 13.05.2020
n	Filing of TDS return for ‐ Non Govt Offices ‐ Quarter 2 (Jul ‐ Sep20)	31/10/2020	31/03/2021		no relaxation	Nil	Press relase dt 13.05.2020

 

Sl. No.	Particulars	Original due date	extended due date due to Covid		Changed Interest rate till extended due date	Changed Penalty & Late Fee till extended due date	Sources	Remarks
o	Reduction in rate of TDS for specified non‐salaried payments to residents and specified TCS rates by 0.25%	NA	14/05/2020 to 31/03/2021		NA	NA	Press relase dt 13.05.2020
p	Payment of Equalisation Levy for the month of March, April & May 2020	Between 20th March 2020 to 30th June 2020	No change		9%	Nil	Ordinance dt 31st Mar 2020	No extension till date for June 2020
q	Adhar PAN Linking Date	31/03/2020	31/03/2021		NA	Nil	Notification No. 35/2020 dt 24.06.2020
r	Notice issuance, due dates, filling of appeal, submissions, applications, any other proceedings against any income tax authority ‐ Under Various Direct Tax and Benami Law	Between 20/03/2020 to 31/12/2020	31/12/2020		NA	NA	Notification No. 35/2020 dt 24.06.2020
s	Making/payment for Investment under chapter VIA‐B including Sec 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. for F.Y.2019‐ 20	31/03/2020	31/07/2020		NA	NA	Notification No. 35/2020 dt 24.06.2020	Donation to PM CARES FUND would enable the donor to get 100% deduction in section 80G(2)(a)(iiia) i.e. without any internal limit of 10% of adjusted Gross Total Income.
t	Payment/making investment in Capital Gain Scheme u/s 54 to 54GB	Between 20/03/2020 to 29/09/2020	30/09/2020		NA	NA	Notification No. 35/2020 dt 24.06.2020

Further there is no further extension for payment of taxes. Thus all taxpayers need to deposit tax due by 30th June,2020 to take benefit of extension provided by earlier Ordinance and concessional rate of interest . The reduced rate of interest of 9% for delayed payments of taxes, levies etc. specified in the Ordinance shall not be applicable for the payments made after 30th June, 2020. In case of non payment of tax by 30th June 2020, all the interest and penal provisions will apply from 20th March 2020 itself.

 

TCS UPDATE :

1       Finance Act 2020 introduced a new provision under Section 206C (1H) for the Tax Collected at Source (TCS) on Goods With effect from 1st of October 2020.

As per the new provision if any seller of any goods whose turnover in the preceding FY exceeds Rs. 10 Crore then, from 1st of October 2020, he shall be liable to collect TCS @ 0.1% of the sale value from the buyer if the buyer purchase goods for the value exceeding Rs. 50 Lacs (Limit of Rs. 50 Lac shall be seen for each buyer separately.

 

2       TCS on foreign remittance under LRS is effective on any remittance transaction under LRS on or after 1st October, 2020. The TCS at 5% shall be applicable on remittances exceeding INR 7 lakhs in a nancial year. All forex transactions under LRS made from 1st April, 2020 would be considered.