Important Tax proposal having impact on on Companies.

 

Income Tax

 

Corporate Tax

·         TDS @ 0.1 percent on purchase of goods from a buyer exceeding Rs. 50 Lakhs in a FY. This will increase the compliance burden.

·         TDS required to be deducted at higher rate for vendor not filing return of Income. This  again become a compliance challenge as required to obtain ITR of two years from each vendor.

·         Disallow late deposit of employee contribution to fund (PF, ESI Superannuation etc).

 

 

Personal Tax

·         Interest accrued from PPF and EPF, to the extent it relate to employee contribution exceeding Rs. 2.5 lakhs per annum is now taxable.

 

 

Indirect Tax

 

GST

·         Compliance of CA certification of GST annual return is abolished.  Now annual return will be filed under self-certification.  Need clarity  for compliance for FY 2019-20 & 2020-21.

·         Input tax credit can be claimed only on reporting of invoices by the vendors. No more threshold of 105 percent. Require to find from when same is applicable. 

 

Customs

·         Automatic sunset clause of all duty exemptions notifications by March 31, 2023. This will impact import of goods  for STPI units.