Banks not to levy extra charge on transactions made via electronic modes

Banks not to levy extra charge on transactions made via electronic modes

In a move to encourage digital payments in the country, the Central Board of Direct Taxes (CBDT) said that banks can not levy any extra charge on transactions made through electronic modes on or after January 1, 2020, based on section 10A of the Payment and Settlement Systems Act 2007, any charge including the MDR (Merchant Discount Rate) shall not be applicable on or after 1st January 2020 on payment made through prescribed electronic modes,” CBDT said in a statement.

The electronics modes of transactions include 1) Debit card powered by RuPay, 2) Unified Payment Interface (UPI), 3) Unified Payment Interface Quick Response code (UPI QR code), BHIM UPI QR code. “According to Section 10 A under the Payments and Settlement Systems Act 2007, no bank or system provider shall impose any charge on a payer making payment or beneficiary receiving payment, through electronic modes prescribed under section 269SU of IT Act,” the CBDT said.

The regulator noticed that certain banks collect charges for UPI transactions. A certain number of transactions are free and beyond the limit, bank charges for every UPI payment. “Such practice on parts of banks is a breach of Section 10A of the PSS Act as well as section 269SU of the IT act,” the CBDT said in its circular. Hence, the banks can not levy any extra charges for UPI transactions.

Such breach attracts penal provisions.

Read Income Tax Circular

The post Banks not to levy extra charge on transactions made via electronic modes appeared first on Studycafe.

from Studycafe https://ift.tt/34MP8yp

RBI likely to prefer Centre borrowing on States behalf for GST compensation

RBI likely to prefer Centre borrowing on States behalf for GST compensation

The Reserve Bank of India (RBI) is likely to prefer that the Centre borrows and gives money to the states. This is toward goods and services tax (GST) compensation that has to be paid by the centre to states. This is being done for avoiding the proposed special mechanism for borrowing that would amount to monetisation.

You May Also Like: GST 41st Council Meeting Updates | Coronavirus an Act of God | GST Collection

The Centre has proposed two mechanisms to meet the GST compensation shortfall:

One of which is through a Rs 97,000 crore central bank window.

The second option is that states borrow Rs 2.35 lakh crore from RBI.

Rs. 2.35 Lakh is the total estimated GST revenue loss due to the COVID-induced slowdown and the GST transition. As per FM out of this only 97,000 Cr is due to GST implementation.

You May Also Like:

• GST Exempt on agricultural implements used for rubber tapping
• Attachments to bank accounts withdrawn to enable assessee to pay tax demand

The post RBI likely to prefer Centre borrowing on States behalf for GST compensation appeared first on Studycafe.

from Studycafe https://ift.tt/31DNygy

How to deal with present difficult times financially

How to deal with present difficult times financially

How should you prepare yourself to face the present difficult times and ahead as well?

Balwant Jain, Chief Editor ApnaPaisa

We all are locked in difficult and uncertain times of pandemic of Covid-19. Even after 5 months of various stages of lockdown we are yet not in a position to say anything with certainty about how long spread of this pandemic will last and how long the impact of it will last on economy and business even after the pandemic has subsided. Such a situation calls for drastic action plan and immediate decision making. I wish to discuss about what things one should do. The things one should refrain from doing during the hard time we are passing through will be covered too.

Need for the measures being suggested

Many have already lost their jobs. We do not know how many will be able to retain their jobs looking at the downturn in the economy and the numbers reported by various companies. This has affected not only the salaried but has also impacted self employed. The self employed are not sure as to when their operations will resume and pickup up. So whether you are a salaried or self-employed, you should implement some measures to minimize the hardship.

Preserve Cash

As the saying goes,” cash is king” so one should preserve cash resource to the maximum possible. So you should stay away from splurging unnecessarily and should not spend unless it is needed for bare survival. In case you are contemplating of making big picket purchase like car, television, mobile phone or any other costly electronic item, please postpone till you become confident that the pandemic has almost disappeared and there is not risk to your cash flow. Even if you are planning to buy a house please postpone it also due to the huge certainty around us.

Create a contingency fund to prepare for any eventuality in near future

As a prudent financial planning each one is expected to have a contingency fund equal to minimum of 6 months of your outgoings, including EMISs, preferably invested in liquid funds to take care of your expenses in case you lose your job unfortunately. It also comes handy even an emergency like situation in family like sudden hospitalisation or any similar unexpected situation. Those who have already lost their jobs and had created their contingency funds are better off today than those who did not have it. Those of you who have been able to retain their job should also create contingency fund immediately because the situation is not yet clear and the vicious cycle of declining economy and people losing their jobs will last longer than we thing.

Do not borrow or use credit card excessively

One should not borrow unless it either adds to your income or helps you create any tangible asset. Moreover the money to be borrowed should also be commensurate and appropriate for the occasion. These are the golden rules of borrowing money. They are applicable during all the times and more during the bad times as one does not know how long the bad times will last.

Buy health insurance and life insurance

Almost all of you must have heard about the huge bills of hospitalisation of Corona patients. It is suicidal for a person not to have a medical insurance for himself and all his dependent family members. So in case you do not have any existing health policy, please buy one immediately. If you cannot afford a full-fledged health insurance policy due to paucity of funds, at least buy the Corona specific “Corona Kavach” policy available by all health insurance companies. Corona Kavach covers your hospitalisation bill upto 5 lakhs. This is an indemnity policy where the insurance company will pay directly to hospital or reimburse your hospital bills.

Even if you already have health insurance provided by your employer or have own policy, I would advise you to buy “Corona Rakshak” policy which is a benefit policy under which the insurance company pays you the full sum assured irrespective of the expenses incurred provided you have been hospitalised for minimum of 72 hours. Since the existing insurance policies, in most of the cases, do not cover cost of PPE and other consumables, Corona Rakshak will take care of the amount deducted by the insurance company while settling the claim for such items.

Like a health insurance, it is equally important for a person, who is financial pillar of the family, to financially protect the family members. Though the recovery rate is high but the times are very uncertain in terms of probability of one’s survival in case one gets infected. So you should buy a life insurance policy immediately in case you do not have adequate cover as of now.

The write is Chief Editor of ApnaPaisa and can be reached at Balwant.jain@apnapaisa.com

You May Also Like :

• Relaxation to Life Insurance Policyholders – Premium Upto 31.05.2020
• Section 10(34) Exemption allowed without disallowing expenses u/s 14A for Insurance Co
• What you can do for your mother on mothers day
• Tax planning through your spouse

The post How to deal with present difficult times financially appeared first on Studycafe.

from Studycafe https://ift.tt/32CPWDt

GSTR-2B use and Advisory: GST Portal Changes: GST Return Changes

GSTR-2B use and Advisory: GST Portal Changes: GST Return Changes

1. Terms Used:

i. ITC – Input tax credit
ii. B2B – Business to Business
iii. ISD – Input service distributor
iv. IMPG – Import of goods
v. IMPGSEZ – Import of goods or inward supply of goods from Special Economic Zones

2. GSTR-2B is an auto-drafted ITC statement

This will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1, 5 (non-resident taxable person) and 6 (input service distributor). The statement will indicate availability of input tax credit to the registered person against each document filed by his suppliers.

3. GSTR-2B is a static statement and will be made available for each month on the 12th day of the succeeding month. For example, for the month of July 2020, the statement will be generated and made available to the registered person on 12th August 2020.

4. GSTR-2B for a month (M) will contain the details of all the document filed by his suppliers in their respective GSTR-1, 5 and 6 between the due date of furnishing of GSTR-1 for previous month (M-1) to the due date of furnishing of GSTR-1 for the current month (M). For example, GSTR-2B generated for the month of July, 2020 will contain the details of all the documents filed by suppliers in their GSTR-1, 5 and 6 from 00:00 hours on 12th July, 2020 to 23:59 hours on 11th August 2020.

5. There may be instances where the date of filing of GSTR-5 (Non-Resident taxable person) and GSTR-6 (Input Service Distributor) may be later than the date of generation of GSTR-2B. Under such circumstances, taxpayers are advised to avail input tax credit on self-assessment basis. However, when such document gets filed and reflected in their next GSTR-2B, taxpayers shall not avail such input tax credit.

6. GSTR-2B also contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers. This will be made available from GSTR-2B of August 2020 (generated on 12th September 2020).

7. It may be noted that reverse charge credit on import of services is not a part of this statement and will be continued to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B.

8. The documents furnished by the supplier in any GSTR-1,5 and 6 would reflect in the next open GSTR-2B of the recipient irrespective of the date of issuance of the concerned document. For example, if a supplier furnishes a document INV-1 dt. 15.05.2020 in the FORM GSTR-1 for the month of July, 2020 filed on 11th August 2020, the details of INV-1, dt. 15.05.2020 will get reflected in GSTR-2B of July 2020 (generated on 12th August 2020) and not in the GSTR-2B of May, 2020.

9. Table 3: ITC Available Summary captures the summary of ITC available as on the date of generation of FORM GSTR-2B. It is divided into following parts:

A. Part A captures the summary of credit that may be availed in relevant tables of FORM GSTR- 3B.

B. Part B captures the summary of credit that shall be reversed in relevant table of FORM GSTR- 3B.

10. Table 4: ITC not available summary captures the summary of ITC not available as on the date of generation of FORM GSTR-2B, under the specific scenarios detailed at Sr. No. 11 below. Credit reflected in this table shall not be entered in Table 4(A) of FORM GSTR-3B.

11. Credit shown as “ITC Not available” in Table 4, Part A covers the following scenarios only: –

i. Invoice or debit note for supply of goods or services or both where the recipient is not entitled to input tax credit as per the provisions of sub-section (4) of Section 16 of CGST Act, 2017.

ii. Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State while recipient is in another State.

However, there may be other scenarios for which input tax credit may not be available to the taxpayers and the same has not been generated by the system. Taxpayers, are advised to self-assess and reverse such credit in their FORM GSTR-3B.

12. Taxpayers are advised to ensure that the data generated in GSTR-2B is reconciled with their own records and books of accounts. Tax payers shall ensure that

i. No credit shall be availed twice for any document under any circumstances.

ii. Credit shall be reversed as per GST Act and Rules in their FORM GSTR-3B.

iii. Tax on reverse charge basis shall be paid.

13. Details of all the documents in GSTR-2B is made available online as well as through download facility.

14. There may be scenarios where a percentage of the applicable rate of tax rate may be notified by the Government. A separate column will be provided for invoices / documents where such rate is applicable.

15. Section wise instructions of FORM GSTR-2B Summary:

Heading	Instructions
Table 3 ITC Available Part A Section I All other ITC – Supplies from registered persons other than reverse charge	i. This section consists of the details of supplies (other than those on which tax is to be paid on reverse charge basis), which have been declared and filed by your suppliers in their FORM GSTR-1 and 5. ii. Negative credit, if any, may arise due to amendment in B2B– Invoices and B2B – Debit notes. Such credit shall be reversed in Table 4(B)(2) of FORM GSTR-3B.
Table 3 ITC Available Part A Section II Inward Supplies from ISD	i. This section consists of the details of supplies, which have been declared and filed by an input service distributor in their FORM GSTR- 6. ii. Negative credit, if any, may arise due to amendment in ISD Amendments – Invoices. Such credit shall be reversed in table 4(B)(2) of FORM GSTR-3B.
Table 3 ITC Available Part A Section III Inward Supplies liable for reverse charge	i. This section consists of the details of supplies on which tax is to be paid on reverse charge basis, which have been declared and filed by your suppliers in their FORM GSTR-1. ii. These supplies shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax. Credit may be availed under Table 4(A)(3) of FORM GSTR-3B on payment of tax.
Table 3 ITC Available Part A Section IV Import of Goods	i. This section provides the details of IGST paid on import of goods from overseas and inward supply of goods from SEZ units / developers on bill of entry and amendment thereof. These details are updated on near real time basis from the ICEGATE system. ii. This table contains the data of imports made by you (GSTIN) in the month for which GSTR-2B is being generated for. iii. The ICEGATE reference date is the date from which the recipient is eligible to take input tax credit. iv. The table also provides if the Bill of entry was amended. v. Information is provided in the tables based on data received from ICEGATE. Information on certain imports such as courier imports may not be available. vi. This data will be made available from GSTR-2B of August 2020 onwards (i.e. 12th September 2020).
Table 3 ITC Available Part B Section I Others	i. This section consists of the details of credit notes received and amendment thereof which have been declared and filed by your suppliers in their FORM GSTR-1,5 and 6. ii. Such credit shall be reversed under Table 4(B)(2) of FORM GSTR-3B. If this value is negative, then credit may be reclaimed subject to reversal of the same on an earlier instance.
Table 4 ITC Not Available Part A Section I All other ITC – Supplies from registered persons other than reverse charge	i. This section consists of the details of supplies (other than those on which tax is to be paid on reverse charge basis), which have been declared and filed by your suppliers in their FORM GSTR-1 and 5 but satisfy either of the two conditions mentioned at Sr. No. 11 above. ii. This is for information only and such credit shall not be taken in FORM GSTR-3B.
Table 4 ITC Not Available Part A Section II Inward Supplies from ISD	i. This section consists of the detail of supplies, which have been declared and filed by an input service distributor in their FORM GSTR-6 but satisfy either of the two conditions mentioned at Sr. No. 11 above. ii. This is for information only and such credit shall not be taken in FORM GSTR-3B.
Table 4 ITC Not Available Part A Section III	i. This section consists of the details of supplies liable for reverse charge, which have been declared and filed by your suppliers in their FORM GSTR-1 but satisfy either of the two conditions mentioned at Sr. No. 11 above.
Inward Supplies liable for reverse charge	ii. These supplies shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax. However, credit shall not be taken in FORM GSTR-3B.
Table 4 ITC Not Available Part B Section I Others	i. This section consists details the credit notes received and amendment thereof which have been declared and filed by your suppliers in their FORM GSTR-1,5 and 6 but satisfy either of the two conditions mentioned at Sr. No. 11 above. ii. Such credit shall be reversed under Table 4(B)(2) of FORM GSTR-3B.

You May Also Like:

• GST : Launch of GSTR-2B for the month of July 2020
• GST : Import data in GSTR-2A
• GSTR 2B press release CBIC

The post GSTR-2B use and Advisory: GST Portal Changes: GST Return Changes appeared first on Studycafe.

from Studycafe https://ift.tt/32vm7o8

Applicant is eligible to avail an amount equal to 50% of eligible credit of input tax on inputs & capital goods

Applicant is eligible to avail an amount equal to 50% of eligible credit of input tax on inputs & capital goods

THE AUTHORITY FOR ADVANCE RULING

The Question and Ruling as follows :

1. Whether the applicant is considered as a financial institution as envisaged under Section 17(4) of the CGST Act.

Ans. Yes.

2. Whether the applicant is eligible for availing the option provided under Section 17(4) of the CGST Act which prescribes to avail an amount equal to 50% of eligible credit of input tax, on inputs, capital goods and input services in that month and the rest shall lapse.

Ans. Yes.

Read Ruling

Tags: Judgement, GST, Advance Ruling

The post Applicant is eligible to avail an amount equal to 50% of eligible credit of input tax on inputs & capital goods appeared first on Studycafe.

from Studycafe https://ift.tt/3lp1aUN

Punjab Cabinet clears proposal for Punjab GST (Amendment) Bill 2020

Punjab Cabinet clears proposal for Punjab GST (Amendment) Bill 2020

FULFILLS DEMAND OF TAX PAYERS TO SIMPLIFY PROVISIONS AND PROCESSES FOR SMOOTH LEVY AND COLLECTION OF TAXES UNDER GST

Chandigarh

The Punjab Cabinet on Tuesday approved the proposal for introduction of the Punjab Goods and Services Tax (Amendment) Bill, 2020.

Notably, The Goods and Services Tax was introduced in the country with effect from July 1, 2017, as the biggest economic reforms in the indirect taxation system of the country.

The amendment seeks to fulfill the demand of taxpayers to simplify provisions for smooth levy and collection of taxes under GST.

According to a spokesperson of the Chief Minister’s Office, the introduction of the said Bill would not only ensure simplifications of provisions and processes but also make it more user-friendly.

He said the Punjab Goods and Services Tax (Amendment) Bill, 2020, envisioned to provide changes so as to make the levy and collection of taxes under the GST, which would be effective and easier for the taxpayers.

These simplification involve provisions related to composition levy, eligibility and conditions for taking Input Tax Credit, cancellation of registration, revocation of cancellation of registration, tax invoice, tax deduction at source, penalty und punishment for certain offences and transitional arrangements for Input Tax Credit.

Tags: GST,  News

You May Also Like :

• Tax Invoice to be raised if goods are sold to foreign buyer without their actual movement
• Time limit of filing appeal/passing order falling extended to 31st Aug
• GST 41st Council Meeting Highlights
• Input Tax Credit is eligible on purchase of Water Slides
• GSTR 2B press release CBIC
• CBIC Clarification on Interest on delayed payment of GST

The post Punjab Cabinet clears proposal for Punjab GST (Amendment) Bill 2020 appeared first on Studycafe.

from Studycafe https://ift.tt/2QzQynV

GST : Launch of GSTR-2B for the month of July 2020

GST : Launch of GSTR-2B for the month of July 2020

Ministry of Finance

The GST Council, in its 39th meeting held on 14th March 2020, had recommended to adopt and implement the incremental approach of linking the present system of filing of GSTR-3B and GSTR-1 and other significant changes like enhancements in GSTR-2A and its linking to GSTR-3B. One such enhancement that the Council recommended was introduction of an auto-drafted input tax credit (ITC) statement which would aid in assisting / determining the input tax credit that is available for every taxpayer.

GSTR-2B is going to be such an auto-drafted ITC statement which will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1, 5 (non-resident taxable person) and 6 (input service distributor). It is a static statement and will be made available for each month, on the 12thday of the succeeding month.It is expected that GSTR-2B will help in reduction in time taken for preparing return, minimising errors, assist reconciliation & simplify compliance relating to filing of returns.

GST : Launch of GSTR-2B for the month of July 2020

Key features in GSTR-2B which would assist taxpayers in return filing are as under:

i. It contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers. This is not available with the release of GSTR-2B for the month of July and will be made available shortly.

ii. A summary statement which shows all the ITC available and non-available under each section. The advisory given against each section clarifies the action to be taken by the taxpayers in their respective section of GSTR-3B;

iii. Document level details of all invoices, credit notes, debit notes etc. is also provided both for viewing and download;

• GSTR-2B for the month of July 2020 has been made available on the common portal on trial basis.
• Since, this is the first time that the statement is being introduced, taxpayers are advised to refer to GSTR-2B for the month of July, 2020 only for feedback purposes.
• All taxpayers are requested to go through their GSTR-2B for July 2020 and after comparing the same with the credit availed by them in July 2020, provide feedback (if any) on any aspect of GSTR-2B by raising a ticket on the self-service portal.
• All taxpayers are advised to view the detailed advisory relating to GSTR-2B on the common portal before using the statement.

You May Also Like :

• No Purchase Tax if yearly turnover was less than Rs 300 crores – Tamil Nadu VAT
• 41st GST Council meeting outcome : Key highlights dated 27th August 2020
• Postponement of CMA Examinations for June 2020 Term
• Recommendations of GST council related to Law & Procedure
• Rule 89(5) which denies refund of unutilised ITC on account of inverted duty structure is ultra vires
• Excess ITC at year end has to be refunded & not adjusted-Tamil Nadu VAT
• GSTR 2B press release CBIC
• CBIC Clarification on Interest on delayed payment of GST

The post GST : Launch of GSTR-2B for the month of July 2020 appeared first on Studycafe.

from Studycafe https://ift.tt/3gH1ieu

RBI extends Time period for Furnishing of Returns for UCBs

RBI extends Time period for Furnishing of Returns for UCBs

RESERVE BANK OF INDIA

RBI/2020-21/28
DoR (PCB).BPD.Cir.No.2/12.05.001/2020-21

August 26, 2020

The Chief Executive Officer
All Primary (Urban) Co-operative Banks

Madam / Dear Sir,

Submission of returns under Section 31 of the Banking Regulation Act, 1949 (AACS) – Extension of time

In terms of section 31 of the Banking Regulation Act, 1949 (“the Act”) read with Section 56 the Act [as amended by the Banking Regulation (Amendment) Ordinance, 2020], accounts and balance-sheet referred to in section 29 of the Act together with the auditor’s report shall be published in the prescribed manner and three copies thereof shall be furnished as returns to the Reserve Bank within three months from the end of the period to which they refer. In terms of the first proviso to the above section, Reserve Bank may in any case extend the said period of three months for the furnishing of such returns by a further period not exceeding three months.

2. Since the aforesaid Ordinance amending, inter alia, Section 31 has been notified on June 29, 2020 for the primary (urban) co-operative banks (UCBs) and also as UCBs may be facing difficulties in submission of the returns due to the ongoing COVID-19 pandemic, it is considered necessary to allow more time for submission of the aforesaid return for the financial year ended on March 31, 2020.

3. In view of the above, Reserve Bank hereby extends the said period of three months for the furnishing of the returns under Section 31 of the Act for the financial year ended on March 31, 2020 by a further period of three months. Accordingly, all UCBs shall ensure submission of the aforesaid returns to Reserve Bank on or before September 30, 2020.

Yours faithfully,

(Neeraj Nigam)
Chief General Manager

Read Notiication

Tags : RBI

You May Also Like :

• IMPACT & CHALLENGES OF COVID 19 ON ECONOMY
• TDS on Cash Withdrawals -CBDT clarifies on Validity of Exemption Notifications

The post RBI extends Time period for Furnishing of Returns for UCBs appeared first on Studycafe.

from Studycafe https://ift.tt/3b5yfjQ

GST : Import data in GSTR-2A

GST : Import data in GSTR-2A

Ministry of Finance

Two new tables have been inserted in GSTR-2A for displaying details of import of goods from overseas and inward supplies made from SEZ units / SEZ developers. Taxpayers can now view their bill of entries data which is received by the GST System (GSTN) from ICEGATE System (Customs). The present data upload has been done on a trial basis to give a feel of the functionality and to get feedback from the taxpayers on the same.

Currently, the system is displaying data up to 6th August, 2020. Further, taxpayers may note that system is currently does not contain import information for bill of entries filed at non-computerized ports (non-EDI ports) and imports made through courier services/post office. This will be made available shortly.

It may also be noted that amendment information made in the details of bill of entries will also be provided soon.

Taxpayers are requested that they share their feedback through raising a ticket on the self-service portal (https://ift.tt/2BeY7WR)

Tags: GST

You May Also Like :

• GST Tech advisory on Opting of GST Composition Scheme in FY 2020-21
• ICAI releases revised Guidance Note on Transfer Pricing
• GST: AAR cannot condone delay after expiry of 30 days for filing appeal
• GST HSN: Cast protector not a pharmaceutical product

The post GST : Import data in GSTR-2A appeared first on Studycafe.

from Studycafe https://ift.tt/3gF6z6C

MCA notifies provisions for publishing annual return on company website

MCA notifies provisions for publishing annual return on company website

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 28th August, 2020

S.O. 2920(E).—In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2017 (1 of 2018), the Central Government hereby appoints the 28th August, 2020 as the date on which the provision of clause (ii) of section 23 of the said Act shall come into force.

[F. No. 1/1/2018-CL.I]

K.V.R. MURTY, Jt. Secy.

Read Notification

Tags :  Company Laws

You May Also Like :

• GST Compliances to be completed before 31st August 2020 without Late Fees
• ICAI Important Announcement regarding Additional Examination Centres
• Ration card of low economic strata no prove of Financial Status
• Corporate Compliance Calendar August 2020

The post MCA notifies provisions for publishing annual return on company website appeared first on Studycafe.

from Studycafe https://ift.tt/3gG8qbl

GST Exempt on agricultural implements used for rubber tapping

GST Exempt on agricultural implements used for rubber tapping

THE AUTHORITY FOR ADVANCE RULING

The Question and Ruling as follows :

1. Rate of tax of agricultural implements used for rubber tapping such as spouts, cub holders and collection cups.

RULING

Classification and rate of tax of agricultural implements used for rubber tapping such as spouts, cup holders and collection cups.

Spout, Cup Holders and Collection Cups are agricultural implements used for rubber tapping and are covered under the description under HSN 8201 90 00 “other hand tools of the kind used in agricultural, horticulture or forest” and are exempt from GST as per Sl No. 137 of Notification No. 02/2017 Central Tax (Rate) dated 28.06.2017.

Read Ruling

Tags: Judgement, GST, Advance Ruling

You May Also Like :

• Onus to prove that land is a Agricultral Land lies on Taxpayer claiming exemption
• GST applicable on Food outsourced to suppy Hospita
• Applicant Cannot Avail ITC on Purchase of Paver Block laid on Land
• Assignment of leasehold right on land is taxable under the GST @ 18%

The post GST Exempt on agricultural implements used for rubber tapping appeared first on Studycafe.

from Studycafe https://ift.tt/3hH4isC

Companies no longer require to attach extract of Annual Return – MCA

Companies no longer require to attach extract of Annual Return – MCA

MCA Notified that a company shall not be required to attach the extract of the annual return with the Board’s report in Form No. MGT.9, in case the web link of such annual return has been disclosed in the Board’s report in accordance with sub-section (3) of section 92 of the Companies Act,2013.

Below is the Extract of MCA Notification.

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 28th August, 2020

G.S.R. 538(E).—In exercise of the powers conferred under sub-section (3) of section 92, read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Management and Administration) Rules, 2014, namely:—

1. Short title and commencement.—(1) These rules may be called the Companies (Management and Administration) Amendment Rules, 2020.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Management and Administration) Rules, 2014, in rule 12, in sub-rule (1), the following proviso shall be inserted, namely:-

“Provided that a company shall not be required to attach the extract of the annual return with the Board’s report in Form No. MGT.9, in case the web link of such annual return has been disclosed in the Board’s report in accordance with sub-section (3) of section 92 of the Companies Act,2013.”

[F. No. 01/34/2013-CL-V- (Pt-I)]

K.V.R. MURTY, Jt. Secy.

Note:—The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 260(E), dated the 31st March, 2014 and subsequently amended vide the following notifications:-

Read Notification

Tags :  Company Laws

You May Also Like :

• 20 FAQ’S ON E-FORM MSME1
• CFSS 2020 – Make scheme applicable for companies who have done the filings and paid late fees prior to scheme
• Draft format of Auditor Certificate – DPT3
• ICAI issues Technical Guide on Easy Incorporation of Companies through SPICE Plus

The post Companies no longer require to attach extract of Annual Return – MCA appeared first on Studycafe.

from Studycafe https://ift.tt/31IPJ2x

Single application for a GST refund for for multiple financial years Enabled on GST Portal

Single application for a GST refund for for multiple financial years Enabled on GST Portal

1st Important change on GSTN portal is:-

A registered person can file a Single refund application for multiple financial years, such facility now enabled on GST Portal.

For eg., a registered person can file an single application for a GST refund for the period 01-01-2020 to 31-07-2020 (Jan 20 to July 20) which is covering TWO different financial years. This will fulfil important demand of the industry towards simplification of processes by GSTN.

2nd Important change on GSTN portal is:-

GSTN has enabled the facility to check Bill of Entry information in respect of GST paid at the time of “Import of goods’ from Overseas and SEZ units/developers in “GSTR-2A.

Tags: GST

You May Also Like :

• GST Compliances to be completed before 31st August 2020 without Late Fees
• CBIC Clarification on Interest on delayed payment of GST
• MANAGEMENT OF NON-PERFORMING ASSET
• A liquidator appointed by NCLT is liable to pay GST on asset sales

The post Single application for a GST refund for for multiple financial years Enabled on GST Portal appeared first on Studycafe.

from Studycafe https://ift.tt/3jlo11y

41st GST Council meeting outcome : Key highlights dated 27th August 2020

41st GST Council meeting outcome : Key highlights dated 27th August 2020

The 41st GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing today i.e. 27th day of August, 2020. Shru Anurag Thakur and Finance Ministers of States & UTs and Senior officers from Union Government & States are present.

EXPECTATIONS:

• issues such as compensation to states and GST rates revision.

• issues such as compensation to states, revenue shortfall.

• two-wheeler industry desperately seeks GST rate cut

• Finance Ministry to examine if sin tax applies to soft drinks

• Issues such as the Centre should borrow from the market and provide to states as it will get a lower rate and easier access to markets. More so, since Centre has to make good on its promise to states for paying the due compensation.

41ST GST COUNCIL MEETING KEY HIGHLIGHTS

1. States were given two options to make up for their revenue shortfall amid the Covid-19 pandemic.

• to provide a special bowrrowing window to states, in consultation with the RBI, to provide Rs 97,000 crore at a “reasonable” interest rate and this money can then be repaid after 5 years by extending cess collections.

• to meet the entire GST compensation gap of Rs 2.35 lakh crore this year itself after consulting with the RBI

2. States will also be given a further relaxation in FRBM of 0.5% points for market borrowing.

3. States Seek Seven Days To Consider Cess Option

4. The Attorney General is of the view that compensation needs to be paid to states for five years. But this compensation gap has to be met from the levy of cess.

5. This is not the appropriate time to talk of increases in tax rates.

6. Data analysis:

About Rs 3 lakh crore would be the need of compensation to be paid to states while compensation cess collected would be Rs 65,000 crore. April-July compensation is around Rs 1.50 lakh crore

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

Tags: GST, GST Council Meeting Updates, News

You May Also Like :

• GST 41st Council Meeting Highlights
• Company Secretary Executive Entrance Test to be held Online
• Unabsorbed depreciation can be carried forward even if ITR has not been filed as per Due date
• Recommendations of GST council related to Law & Procedure

The post 41st GST Council meeting outcome : Key highlights dated 27th August 2020 appeared first on Studycafe.

from Studycafe https://ift.tt/3hQTQ29

Institute training students to obtain qualification like CA, ACCA, CS, CMA are not exempted from GST – AAR

Institute training students to obtain qualification like CA, ACCA, CS, CMA are not exempted from GST – AAR

THE AUTHORITY FOR ADVANCE RULING

The Question and Ruling as follows :

1) Whether the education programme and training being offered by the applicant is exempted from GST as imparting of education since the applicant is giving lecture classes and notes including printed books published by Govt.-recognized institutes, on the basis of the specific syllabus (curriculum) published by the very same institutes formed under Acts of Parliament and also facilitating the students to appear for the examinations conducted by the same institutes.

Ans. The applicant is not covered under the definition of “educational institution” in Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and hence the services provided by the applicant is not exempted from GST.

2) Whether the education programme and trarnrng being offered by the applicant is exempted from GST as imparting of education since the applicant is giving lecture classes and notes including printed books published by Government -recognized institutions like Universities and also availed from online facilities of the said institutions, on the basis of the specific syllabus (curriculum) published by various Universities including Mahatma Gandhi University, formed under Acts of State Legislature.

Ans. The applicant is not covered under the definition of “educational institution” in Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017and hence the services provided by the applicant is not exempted from GST.

3) Whether the education programme and training being offered by the applicant is exempted from GST as imparting of education since the applicant is giving lecture classes and notes including printed books published by Government-recognized institutions like ACCA, IMA USA, ete. And also availed from online facilities of the said institutions, on the basis of the specific syllabus (curriculum) published by international institutions like ACCA, IMA USA, ete. Which are approved by Govt. of India.

Ans. The applicant is not covered under the definition of “educational institution” in Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017and hence the services provided by the applicant is not exempted from GST.

4) What is the Service Accounting Code (SAC) of the applicant‘s services, under GST laws?

Ans. As per the Scheme of Classification of Services notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 the education services provided by the applicant corne under SAC – 9992- 999293 – Commercial training and coaching services. As per Explanatory Notes to the Scheme of Classification of Services the service code – 999293 includes any training or coaching provided by any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes.

Click Here To Read Futher Ruling

Tags: Judgement, GST, Advance Ruling

You May Also Like :

• Whether the preparation of Whole Wheat parota and Malabar parota attract 5% GST rate
• TDS under GST is applicable only for taxable supply received from unregistered suppliers
• Supply of food and drinks to educational institutions Exempt from GST
• Supply made under Automatic Fare Collection project would qualify as composite supply

The post Institute training students to obtain qualification like CA, ACCA, CS, CMA are not exempted from GST – AAR appeared first on Studycafe.

from Studycafe https://ift.tt/2YLy881

12% GST on Cochin Port Trust for providing Deposit under ‘Work Contract’ – AAR

12% GST on Cochin Port Trust for providing Deposit under ‘Work Contract’ – AAR

The Question and Ruling as follows :

1. Whether, having regard to the background and details including the scope of work of the Deposit work contained in the M.O.D. entered into between CoPT and N.T.RO., what is the nature of the services rendered by CoPT under the M.O.D. entered Into between CoPT and N.T.RO.? Whether it would be treated as a “Works Contract” as per section 2 (119) of the CGST Act or as a Composite Supply for services as per Section 2 (30) of the CGST Act or as a mixed supply as defined in Section 2 (74) of the CGST Act?

Ans. The activity undertaken by the applicant as per the M.O.D. dated 22.12.2016 entered with National Technical Research Organisation of the Government of India are covered under ‘‘Works Contract” as defined in Section 2 (119) of the CGST Act, 2017.

2. Whether, having regard to the background and details Including the scope of work of the Deposit work contained in the M.O.U. entered into between CoPT and N.T.R.O., whether CoPT is eligible to take the benefit of reduced rate of 12% GST as per Notification No 24/2017-IT(R) dated 21.09.2017, in respect of the services provided by it to N.T.R.O. under the M.O.U.?

Ans. Yes. The rate of GST applicable on the services provided by the applicant as per the said M.O.U. is 12% as per Sl No.3 (vi) (a) of the Notification No. 08/2017- Integrated Tax (Rate) dated 28.06.2017 as amended.

3. Whether, having regard to the background and details Including the scope of work of the Deposit work contained in the M.O.U. entered Into between CoPT and N.T.R.O., whether the contractors engaged by COPT to execute work as envisaged in the M.O.U., would be eligible to take the benefit of reduced rate of 12% GST as per Notification No.24/2017- IT(R) dated 21.09.2017, in respect of the services provided by them to CoPT?

Ans. Yes. The rate of GST applicable on the services provided by the contractors 1 sub contractors to the applicant as envisaged in the said M.O.U. is 12% as per Sl No. 3 (ix) of the Notification No. 08/2017 – Integrated Tax (Rate) dated 28.06.2017 as amended.

4. If CoPT is eligible to take the benefit of reduced rate of 12% GST as per Notification No 24/2017- IT(R) dated 21.09.2017; whether it is entitled to claim refund of the excess remittance of GST (6%) remitted from the date of applicability of the said Notification?

Ans. Yes. The applicant is entitled for refund of the excess GST paid if any; subject to the provisions of Section 54 of the CGST Act, 2017 and the Rules made thereunder.

Read Ruling

Tags: Judgement, GST, Advance Ruling

You May Also Like :

• GST applicability on Maintenance charges paid in Apartments/RWA’s
• TDS under GST is applicable only for taxable supply received from unregistered suppliers
• Consideration paid to the Directors will attract GST under reverse charge
• Supply of food and drinks to educational institutions Exempt from GST

The post 12% GST on Cochin Port Trust for providing Deposit under ‘Work Contract’ – AAR appeared first on Studycafe.

from Studycafe https://ift.tt/2YKXLWv

CAG issues Regulations on Audit and Accounts – 2020

CAG issues Regulations on Audit and Accounts (Amendments) 2020

COMPTROLLER AND AUDITOR GENERAL OF INDIA

REGULATIONS ON AUDIT AND ACCOUNTS

Chapter 1

Preliminary

1. Short title, application and commencement

(1) These Regulations may be called the ‘Regulations on Audit and Accounts (Amendments) 2020’

(2) These Regulations shall apply to the officers and staff of the Indian Audit and Accounts Department and all ministries and departments of the Union Government, State Governments and Union Territory Governments as well as bodies, authorities and enterprises, to which the audit or accounts jurisdictions of the Comptroller and Auditor General of India extend. (3) These Regulations shall come into force with effect from the date of issue.

2. Definitions

In these Regulations, unless the context otherwise requires,

(1) Accountant General (Accounts and Entitlement) means the head of the department of an accounts office of the Comptroller and Auditor General of India by whatever designation called;

(2) Accountant General (Audit) means the head of the department of an audit office of the Comptroller and Auditor General of India by whatever designation called;

(3) Accounts Office means an office of the Comptroller and Auditor General of India responsible for compilation of accounts from the initial and subsidiary accounts rendered by the treasuries, offices or departments responsible for keeping of such accounts and for entitlement work in relation to Government employees and other categories of employees;

(4) Accounts Officer means an officer, irrespective of designation, authorised by the Comptroller and Auditor General of India by a general or special order for accounts or entitlement or related work;

(5) Access with its grammatical variations and cognate expressions includes gaining entry into, instructing or communicating with the logical, arithmetical, or memory function resources of a computer, computer system or computer network; and including physical access;

(6) Act means the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 (Act No. 56 of 1971);

(7) Any other company for the purpose of these Regulations means a company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments mentioned in Section 139 of the Companies Act, 2013. Any other company, as appearing in Section 139 of the Companies Act, 2013 has to be read with definition of ‘control’ in Section 2 (27) of the Companies Act, 2013;

(8) Audit means examination of accounts, transactions, records, data, information and documents, in performance of duties and exercise of powers of the Comptroller and Auditor General as prescribed in the Constitution of India and the Act and includes performance audit or any other type of audit determined by the Comptroller and Auditor General of India. When used as a noun, it refers to Audit Department as a whole or any part thereof as per context;

(9) Audit Board means the Audit Board constituted by the Comptroller and Auditor General of India for performance audits of Central Public Sector Undertakings;

(10) Audit department or Audit institution means the offices of the Indian Audit and Accounts Department under the Comptroller and Auditor General of India responsible for audit under the Constitution of India and the Act;

(11) Audit engagement means individual audit assignments of the nature of either attestation engagements or direct reporting engagements covering financial audits, compliance audits or performance audits, or a combination of these.

(12) Auditable entity means Union or State Government including its offices, authority, body, company, corporation, fund or any other entity subject to audit by the Comptroller and Auditor General of India; where characterized into Apex Auditable entity, Audit Units and Implementing units,

(i) Apex Auditable entity means, but is not restricted to, the highest authority in the Government in respect of each Government Department or function, under the audit jurisdiction of the Accountant General, for example Ministry or Head of a Department. Such apex entities are distinguished from audit units and implementing units with regard to their responsibilities relating to policy formulation and oversight. In certain cases, however, certain entities (e.g. Boards, Bodies or Authorities, Government companies, corporations etc) where though classified as audit units, may possess the necessary characteristics of an apex auditable entity in respect of a particular function.

(ii) Audit Unit means entities categorized and identified by audit offices as possessing the following attributes-substantial devolution of administrative and financial powers, functional autonomy and operational significance with reference to the objectives of the apex auditable entity;

(iii) Implementing Unit means the last mile service providers, entities, offices and implementation arms of the Government/Apex auditable entity.

(13) Audit mandate means the authority of the Comptroller and Auditor General of India for audit under the Constitution of India and the Act and includes audit entrusted by the Government under the Act;

(14) Audit observation means a communication issued by an audit office containing the preliminary results of audit during conduct of audit, including comments on accounts issued as a result of financial or supplementary audit. It shall incorporate reference to criteria, sufficient details of the evidence relied upon in audit, audit conclusions and where applicable, recommendations;

(15) Audit office means an office of the Comptroller and Auditor General of India responsible for audit;

(16) Audit officer or auditor means an officer, by whatever designation called, authorised by the Comptroller and Auditor General of India by a general or a special order to conduct audit;

(17) Audit Query means a communication issued during the course of audit for confirmation of facts or inference arrived at by audit or any clarifications required by Audit;

(18) Audit Report of the Comptroller and Auditor General means a report of the Comptroller and Auditor General of India under Article 151 of the Constitution of India or under Section 19A of the Act or under Section 49 of the Union Territories Act, 1963.

(19) Audit Requisition means a communication issued for requesting data, documents and information considered necessary by Audit;

(20) Auditing Standards means the auditing standards issued by the Comptroller and Auditor General of India unless the context otherwise requires;

Click Here To Read Further

Tags :  Company Laws

You May Also Like :

• Good News: Cashless Facility for COVID-19 Treatment enabled by IRDAI
• Extension of the last date of filinq of Form NFRA-2
• Director’s Board Report Checklist – 2020
• Wrongful Detention – Tax not to be collected by Coercion

The post CAG issues Regulations on Audit and Accounts – 2020 appeared first on Studycafe.

from Studycafe https://ift.tt/2QuZaMr