Year end & New Year Challenges

 

2020-21 ends today.

2021-22 begins next day.

BULLET POINTS

Imp Case Laws.

 

Little Angels Education Society vs. UOI (Bombay High Court)

S. 11/ Form No.10B: Under Circular No.2 / 2020 dated 03.01.2020, the CBDT has delegated the power to the CIT to admit belated applications in filing Form No.10B for AY 2018-19 and onwards for a period of only upto 365 days. There is no error or infirmity in this stand. Fixing a period of one year’s delay i.e., 365 days of delay for condonation of delay in filing Form No.10B for AY 2018-19 and onwards cannot be said to be arbitrary or irrational. However, there is also nothing in s. 119(2)(b) preventing or precluding the CBDT from passing a special order in any given case from condoning the delay in filing Form No.10B beyond 365 days despite passing a general order. The Petitioner should approach the CBDT which will deal with the claim on merit and in accordance with law 

 

Karnataka Karasamadhana Scheme, 2021

 

The Hon'ble Chief Minister and Finance Minister, Karnataka State in his budget speech for the year 2021-22 made on March 8, 2021 had announced that a "Karasamadhana Scheme, 2021", will be introduced in order to complete the pre-GST legacy audit and clear tax arrears expeditiously. 

 

Dynamic QR code relaxation till 30 June 2021

 

This is to update you on the recent Notification No.06/2021 – Central Tax dated 30 March 2021 issued by CBIC today.

 

As per Notification No. 89/2020 - Central Tax dated 29 November 2020, CBIC has waived the amount of penalty leviable under section 125 of Central Goods and Services Tax Act, 2017, for not providing dynamic QR code on B2C invoices during the period December 2020 to March 2021. Vide Notification no.06/2021 – Central Tax dated 30 March 2021, CBIC has extended the waiver time limit from 31 March 2021 till 30 June 2021. Thus CBIC has waived the amount of penalty leviable under section 125 of CGST Act,2017 for not providing dynamic QR code on B2C invoices during the period December 2020 to June 2021.

 

This waiver shall be subject to the condition that said registered person complies with the provisions of the notification for applicability of dynamic QR code for B2C invoices w.e.f. 1 July 2021.

Re-registration of charitable trust

The Central Board of Direct Taxes has finally come out with the new Rules and the new Forms for Revalidating or Renewal of existing tax exemption under 12AA & 10(23C) and tax deductions under 80G.

This will come into effect from 1st April 2021 and the process must be completed by charitable trusts and institutions by 30th June 2021.

Given below the important summary of the notification dated March 26, 2021.

·         Trust require to  fill online application Form 10A ( Clause(i) or (vi   of Section 12A  and 10AB ( Clause(ii) or (iii) or (iv)  of Section 12A.

Key relation to small companies in Budget 2021

 

Summary:

 

Delivering the Union Budget 2021-22, Finance Minister Nirmala Sitharaman, on Monday, proposed changes in definition of small companies under the Companies Act.

DYNAMICS OF QR CODE ON B2C INVOICES IN GST

 In order to encourage digital payments, the concept of dynamic QR Code is being implemented where buyer can scan the code and make payment from mobile wallet directly. Further, at many counters in shops/malls, we often find static QR code which is scanned by the buyer but the buyer has to enter the amount to be paid to the shop (in the mobile payment App). Therefore, dynamic QR code, is deemed to be QR Code for the purpose of GST, as it has the payment details and thus ‘scan and pay’ in one go will be possible.

LTC CASH VOUCHER SCHEME FOR PRIVATE SECTOR

 

The LTC cash voucher scheme is a welcome move by Government especially for the private sector as it not only provides tax benefit to employees, but also increases the consumer consumption. Because of the Covid -19 Pandemic, there was a huge impact on the consumer demand and its consumption and hence this scheme hopefully will boost the consumption as it gives more cash in the hands of the employees.

CBDT to examine cases of double taxation to provide relief to individuals stranded in India during the COVID-19 pandemic

 

The whole Covid-19 pandemic situation has made government to release a lot of relaxations and clarifications. One major concern that was brought forward for the clarification was the question of double taxation. Due to the pandemic, lot of flights were suspended making the temporary stay of the non-residents in India to extend for the further period.

TDS Rate Chart For Financial Year 2021-22 and Assessment Year 2022-23:

 

Note :

(1)   Concessional rate of TDS is applicable till March 31, 2021 only.  From April 1, 2021,  old & given below rate of TDS is applicable.

(2)   u/s 206C(1H) , In case of vendors who are not filing their income tax return, the TDS rate will be 5% or  double the rate the applicable TDS rate, whichever is higher.  The same is applicable from July 1, 2021 and to verify the details of vendors, government may provide utility  or guidelines.  Thus applicable higher rate of tax will be 5%, 10% and 20%.  

(3)   TCS @ 0.1% applicable in case of purchase of goods exceeds 50 Lakhs in a year.  Same also effective from July 1, 2021.   (Section 194Q).