Foreign payments are an important part of business nowadays and with #Foreign_Payments come increased compliances.
Foreign payments are an important part of business nowadays and with #Foreign_Payments come increased compliances.
In March 2022, new policies came about, allowing companies to go into dormant mode. This was in response to companies that wanted to remain in China but were struggling during the current economic conditions because of Covid.
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From FY 2021-22, salaried taxpayer whose contribution in PF more than Rs. 2.5 Lakhs requires to pay tax on the interest income on PF contribution exceeds Rs. 2.5 Lakhs per annum. This interest income is taxable at applicable slab rate which in most cases will be 30% plus applicable surcharge & cess.
FAQ dt 17-7-2022 confirms now:
NN 6/2022 and 7/2022 have now w.e.f.18-07-2022* made edible items taxable @ 5%/12% if these items are pre packaged and labled i.e. items are placed in package, whether sealed or not, carrying pre determined quantity. The items must be placed in package without the purchaser being present to be called pre packaged. Further package or its label must be required to bear declarations under Legal Meteorology Act to bring it under taxation net. In other words if package is not intended to carry pre- determined quantity or is not required to bear statutory declarations, then gst shall not be imposed.
Renting of residential dwelling for use as residence is exempt from GST. Residential dwelling rented for use as residence may be used for purposes other than residence but that does not wean off the exemption under law. Residential dwelling rented for use other than residence was never exempt and continues to be taxable. Hence it not the actual use but the terms of agreement that might decide taxability of residential dwelling. Law till 17-07-2022 does not make distinction whether residential dwelling is rented to registered person or unregistered person. However vide NN 4/2022 dated 13-07-2022, where residential dwelling for use as residence is rented to a registered person, exemption from gst shall not be available and gst shall be applicable.
CBDT (DGIT Systems) vide notification no. 03/2022 dated 16.07.2022 has prescribed the following forms to be filed electronically :
Is club membership fees is a
capital or revenue expenditure?
Provisions of the Income Tax
Act, 1961
As per section 37(1), “Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession".
Foreign payments are
an important part of our business and with Foreign Payments come compliances.
In case of a payment to any of our foreign vendor from STL India, we are required to obtain the documents mentioned below, to analyze the withholding obligation and withheld taxes before making the payment:
As per the Income Tax Act, 1961,
in case of person with disability, deduction is allowed u/s 80U and incase of a
dependent with disability, deduction is allowed u/s 80DD.
Section 56(2)(viib) of the Income-tax Act 1961 (IT Act) is attracted when a closely held company issues shares at a premium and the consideration exceeds Fair Market Value (FMV). It provides that the difference between the actual consideration and the FMV of the shares or Face value of shares (in case FMV is lower than Face Value) shall be deemed to be the income of such a closely held company and accordingly taxable under the head ‘Income from other Sources’. Apart from the issue of equity shares, the Company can also raise funds through the issue of Preference Shares, hybrid instruments such as Compulsorily Convertible Debentures (CCDs), Compulsorily Convertible Preference Shares (CCPS), Non-Convertible Debentures (NCDs) etc. Whether section 56(2)(viib) of the IT Act gets attracted when the funds are raised through hybrid instruments like CCDs is open to interpretation.
§ Clause (c) of Section 110 of the Finance Act 2022 through
Section 49(10) of the CGST Act, provides for any amount of tax, interest,
penalty, fee or any other amount in an Electronic Cash Ledger can be
transferred to a distinct person.
§ Extended time for issuing any demand orders for non-fraud cases
for the Financial Year 2017-18 upto September 30, 2023.
§ Value of duty credit scrip’s shall be not included in the
aggregate value of exempt supplies for the reversal of common credits in
respect of inputs or inputs services or capital goods.
§ A formula amended to consider utilization of ITC on account of
inputs and input services on the pro-rata ratio basis.
§ The registered person shall report non-GST supply separately and
shall have an option to either separately report his supplies as exempted and
nil-rated supply or report consolidated for the two heads in the exempted
column.
§ Six-digit HSN code is mandatory for taxpayers having annual
turnover in the preceding year upto 5 Cr for both inward and outward supplies
and four-digit HSN Code for taxpayers having annual turnover in the preceding year
upto 5 Cr.
§ Scope of ITC is being widened and would now be made available in
respect of goods or services which are obligatory for an employer to provide to
its employees, under any law for the time being in force.
§ Balance in the electronic credit ledger can be used for making
payment of any tax under the GST Law
§ Balance in electronic credit ledger cannot be used for making
payment of any liability other than tax under the GST Laws.
No |
Particulars |
Questions
for the sales promotion and business team |
1 |
Benefit to vendors /
contractors/ customers |
**Kindly
note that benefit either in cash or kind should be mentioned above.
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2 |
Cash and sales discounts |
|
3 |
Out of pocket expenses |
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4 |
Conferences/ Seminars |
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5 |
ESOPs |
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6 |
Employee expenses |
|
7 |
Director’s expenses |
|
8 |
Debt related matters |
|
9 |
Corporate Social
Responsibility |
|
10 |
Intra-group transactions |
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11 |
Additional services |
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Under Section 44AB of the Income-tax Act, Assessee has to get his books of accounts audited if the turnover exceeds a certain threshold limit or if the profit offered for taxation is lower than the prescribed percentage.
various circulars
have been issued by the Ministry of Finance to give effect to the recommendations
made by the GST Council in the 47th meeting.
A summary of the relevant ones is captured below for your ready reference:
CBIC has clarified on reporting of the supplies to end-users, composition taxpayers, and UIN holders as well as on the disclosure of ineligible/blocked input tax credits and reversals thereof.
This Tax Alert summarizes a recent ruling of the Maharashtra Appellate Authority for Advance Ruling (AAAR). The ruling deals with applicability of Goods and Services Tax (GST) on activities undertaken by liaison office (LO) at behest of its overseas head office (HO).
We wish to update that various notifications have been issued by Ministry of Finance to give effect to the recommendations made by the GST Council in the 47th meeting.
The summary of the same is captured below for your ready reference:
Central Government notifies inclusion of NFTs and exclusion of certain items from the scope of virtual digital asset
This Tax Alert explains Notification Nos. 74 and 75 of 2022 dated 30 June 2022 issued by the Central Government (CG). Notification No. 74 excludes certain items like gift cards, mileage points, web subscriptions etc. from the scope of definition of “virtual digital assets” (VDA). Notification No. 75 notifies “token” which meets the definition of VDA as non-fungible token (NFT) but excludes NFTs representing ownership of underlying tangible assets from the scope of definition of VDA.
This Tax
Alert summarizes a recent press release issued by the Ministry of Finance. The
47th meeting of Goods and Services Tax (GST) Council was held on 28 and 29 June
2022 in Chandigarh.
The key decisions are as follows:
Summary of the relevant updates is provided below for ease of your reference: A) Proposals relating to GST law, Compliances an...