Order u/s 119 for issue of certificates for lower rate/nil deduction/collection of TDS or TCS

Order u/s 119 for issue of certificates for lower rate/nil deduction/collection of TDS or TCS

Due to outbreak of Covid-19 virus, there is severe disruption in the normal working of almost all sectors, including functioning of the Income tax Department. In such a sccnario the applications filed by the payees u/s 195 and 197 of the Act for lower or nil rate of deduction of TDS and applications by buyers/licensees/lessees u/s 206C (9) of the Act for lower or nil rate of collection of TCS for F.Y. 2020-21 have not been attended in a timely manner by the TDS/TCS Assessing officers causing hardship to tax payers.

Considering the constraints of the Field Officers in disposing of the applications for lower or nil rate of TDS/TCS and to mitigate hardships of payees and buyers/licensees/lessees, the CBDT issues following directions/clarifications by exercise of its powers u/s 119 of the Act:

F.No. 275/25/2020-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi
31st March. 2020

Subject: Order u/s 119 of The Income Tax Act, 1961 on issue of certificates for lower rate/nil deduction/collection of TDS or TCS u/s 195, 197 and 206C (9) — reg.

Due to outbreak of the pandemic Covid-19 virus, there is severe disruption in the normal working of almost all sectors. including functioning of the Income -tax Department. In such a scenario, the applications filed by the payees u/s 195 and 197 of the Act for lower or nil rate of deduction of TDS and applications by buyers/licensees/lessees u/s 206C (9) of the Act for lower or nil rate of collection of TCS for F.Y. 2020-21 have not been attended in a timely manner by the TDS/TCS­ Assessing Officers, causing hardship to tax payers.

2. Considering the constraints of the Field Officers in disposing of the applications for lower or nil rate of TDS/TCS and to mitigate hardships of payees and buyers/licensees/lessees, the CBDT issues following directions/clarifications by exercise of its powers u/s 119 of the Act:

a) All the assessees who have filed application for lower or nil deduction of TDS/TCS on the Traces Portal for F.Y.2020-21 and whose applications are pending for disposal as on date and they have been issued such certificates for FY 2019-20. then such certificates would be applicable till 30.06.2020 of F.Y. 2020-21 or disposal of their applications by the Assessing Officers, whichever is earlier, in respect of the transaction and the deductor or collector if any, for whom the certificate was issued for F.Y. 2019-20.

b) In cases where the assessees could not apply for issue of lower or nil deduction of TDS/TCS in the Traces Portal for the FY 2020-21 but were having the certificates for F.Y. 2019-20, such certificate will be applicable till 30.06.2021 of F.Y. 2020-21. However, they need to apply at the earliest giving details of the transactions and the Deductor/Collector to the TDS/TCS Assessing Officer as per procedure laid down in sub-para c) below, as soon as normalcy is restored or 30.06.2020, whichever is earlier.

c) In cases where the assessee has not applied for issue of lower or nil deduction of TDS/TCS in the Traces Portal, and he is also not haying any such certificate for F.Y.2019-20, a modified procedure for application and consequent handling by the TDS/TCS Assessing Officer is laid down which is enclosed as Annexure.

d) On payments to Non-residents (including foreign companies) having Permanent Establishment in India and not covered by (a) and (b) above, tax on payments made will he deducted at the rate of 10% including surcharge and cess, on such payments till 30.06.2020 of F.Y. 2020-21, or disposal of their applications, whichever is earlier.

(Mahesh Kumar)
Director (IT-Budget), CBDT

–

ANNEXURE

Application for Lower/Nil Deduction Certificate:The applicant shall apply for the Lower/Nil deduction/collection certificate under sections 197/206C(9) of the Income lax Act vide an e-mail addressed to the Assessing Officer concerned. The e-mail shall contain data/documents as under:

1. Duly filled in Form 13 (Annexure 1 and/or Annexure III)
2. The documents/information as required to be uploaded on TDS-CPC website while tilling up of Form 13
3. Projected Balance Sheet and P&L account of FY 2020-21
4. Provisional Balance Sheet and P&L account of FY 2019-20
5. Balance Sheet and P&L account of FY 2018-19
6. Form 26AS for FY 2019-20 & 2018-19
7. ITR pertaining to FY 2018-19

For issue of certificates for lower/ nil deduction of tax undo- sections 195(2) and 195(3), the process of furnishing of applications will continue to be same with the modification that the applications will be lilad via ein ail and certific will also be issued via email.

Issuance of the Certificate: The certificate(s) shall be issued up to 30.06.2020 or any other date (earlier than 30.06.2020) as specified by the AO. The Assessing Officer shall communicate the issuance of certificates vide mail containing following information:

S. No.

TAN of the deduct or

PAN of the Deductee

Financial year

Section under which Tax at source is to be deducted / collected

Estimated amount of income / sum to be received / paid

Applicable rate of deduction / collection

Valid From Date

Valid to Date

The issuance of certificate shall be communicated to the applicant who in turn shall share the same with the deductor/collator.

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MCA Clarification on DIR-3 KYC Filing as on 31-03-2020

MCA Clarification on DIR-3 KYC Filing as on 31-03-2020

MCA Clarification on DIR-3 KYC Filing as on 31-03-2020

DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification(ACTIVE) eform are encouraged to become compliant once again in pursuance of the General Circular No. 11 dated 24th March, 2020 & General Circular No.12 dated 30th March 2020 and file DIR-3KYC/DIR-3KYC-Web/ACTIVE as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fee of INR 5000/INR 10000 respectively.

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E-Filing FAQs on Direct Tax Vivad se Vishwas Form 1

E-Filing FAQs on Direct Tax Vivad se Vishwas Form 1

Q1: As per the form, the Assessee is required to mention reference number of appeal filed by it. When the matter is pending with CIT(A), Appeal No. may not be available with Assessee, as notice might not have been issued. Whether acknowledgement number of e- appeal can be mentioned?

Reply : The label of “Appeal Reference Number” may be treated as “Appeal Reference Number / Acknowledgment Number” in all schedules and in Part B “Reference Number” as “Reference Number / Acknowledgment Number”

Q2: When Hon’ble ITAT has decided the appeal before 31st January, 2020 and time limit for filing appeal has not yet expired and as per form when due date of filing of appeal is mentioned, Assessee cannot proceed to file details regarding disputed tax. Only when appeal number is mentioned, then only Assessee can fill up necessary schedule.

Reply: Department has enabled the schedules in above case on 26th March, 2020. Updated online Form is available on e-Filing portal.

Q3: As per Question- Answer No. 7 of FAQ, if appellate authority has set aside an order, (except where assessment is cancelled with a direction that assessment is to be framed de novo), to the file of AO for giving proper opportunity, Assessee would be eligible to avail of Vivad Se Vishwas. However, in the prescribed form, no tab or schedule for such cases are available.

Reply: Declarant can fill the required details in Part B itself mentioning that the appeal is pending with CIT(A), as explained in FAQ No 7 issued by CBDT vide Circular 7/2020 dt 4th March 2020

Q4: As per the Scheme once the declaration made by Assessee is accepted by designated authority and Form 3 is issued, the declarant shall pay the amount determined within 15 days of receipt of certificate and intimate the details of such payment to the designated authority. As per the Scheme Assessee has an option for making payment on or after 1st April, 2020 but before the last date after making additional payment as prescribed. Suppose, form No. 3 is issued by designated authority on or before 31st March, 2020, Assessee can pay taxes along with additional amount before the last date even if 15 days have lapsed or the form will be void.

Reply: As per the scheme, the declarant has to pay tax and intimate the same within 15 days of issue of Form 3.

Q5: How the TDS deductors will file in case they don’t have PAN?? Kindly clarify as they can’t login into e-filing website and they don’t have facility on cpc-tds. Kindly guide.

Reply: Deductors have to login using TAN. They can do so in a similar manner when they filed appeal in TDS cases or how they file TDS statements on e-filing portal -they use their TAN as user ID. Taxpayers using their PAN based login cannot file TDS related Form 1. The respective deductors have to login using TAN as user ID in the e-Filing portal.

Q6: What has to be entered in the Part E(iv)- Refund?

Reply: In the Form 1, what is visualized in Part E is the reporting of claim of tax payment under Minor head 400 (incl Adjustment RO) after the assessment order is passed. Therefore, there is no requirement of TDS or prepaid taxes – advance tax or SAT. Since any RO adjusted against demand has a corresponding challan, same has to be reflected under tax payment as Regular Assessment Tax (Minor head 400).

The E(iv) is for cases where the refund claimed by taxpayer was reduced in assessment (not refund adjusted against arrears – the label is incorrect and will be changed). This is because the PART F visualizes the actual tax payment or Refund as case may be against the disputed tax amount payable under the scheme (this is post assessment)

Example – Refund adjusted will figure in tax payment itself as a challan. This is for refund reduction- when taxpayer claimed 100 Rs but ITD raised additional demand of 80 Rs, so refund will be reduced to 20 Rs. To enable taxpayer to show this in E(iv) as Rs 80, the refund row has been put.

E-Filing FAQs on Direct Tax Vivad se Vishwas Form 1

Q7. Whether it is possible to make payment of taxes under the VsV scheme before filing of Form 1.

Answer: Yes, such payments can be reflected in Form 1 itself in Part E.

Q8. Whether challan for making payment of taxes under VsV scheme is the same as 400 (or any other existing codes) challan? Or any other new specific challan code is being introduced for the same If yes, when is new challan code likely to be introduced.

Answer: Yes, Challan under VsV scheme will be usual Regular Assessment Tax challan – Corporation Tax or Income Tax (as the case may be)- with minor head 400. Please take care to ensure that PAN and AY are correctly mentioned. NO NEW CHALLAN has been released for DTVSV

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Taxman to accept application & issue nil/lower tax deduction certificate via email: CBDT

Taxman to accept application & issue nil/lower tax deduction certificate via email: CBDT

Order u/s 119 of The Income Tax Act, 1961 on issue of certificates for lower rate/nil deduction/collection of TDS or TCS u/s 195, 197 and 206C(9)

Due to outbreak of Covid-19 virus, there is severe disruption in the normal working of almost all sectors, including functioning of the Income tax Department. In such a sccnario the applications filed by the payees u/s 195 and 197 of the Act for lower or nil rate of deduction of TDS and applications by buyers/licensees/lessees u/s 206C (9) of the Act for lower or nil rate of collection of TCS for F.Y. 2020-21 have not been attended in a timely manner by the TDS/TCS Assessing officers causing hardship to tax payers.

Considering the constraints of the Field Officers in disposing of the applications for lower or nil rate of TDS/TCS and to mitigate hardships of payees and buyers/licensees/lessees, the CBDT issues following directions/clarifications by exercise of its powers u/s 119 of the Act:

 

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MODIFIED LLP SETTLEMENT SCHEME, 2020

MODIFIED LLP SETTLEMENT SCHEME, 2020.

• OVERVIEW

MINISTRY OF CORPORATE AFFAIRS (MCA) vide General Circular No. 13/2020 and File No. F. No. 17/61.2016-CL-V-Pt-I issued dated 30th March, 2020, has modified the provisions related to LLP SETTLEMENT SCHEME, 2020.

• Revised Timeline: Applicable w.e.f. 01.04.2020

And shall remain into Force upto 30.09.2020.

• Previous Scheme: LLP SETTLEMENT SCHEME , 2020 vide General Circular No. 6/2020 dated 04.03.2020

(Link)

• Applicability of the this Scheme: Any Defaulting LLP is permitted to file belated documents, which were due for filing till 31.08.2020 in accordance with the provisions of this Scheme.

• Manner of payment of fees and additional fee on filing belated document for seeking immunity under the Scheme: The defaulting LLPs may themselves avail of the scheme for filing documents which have not been filed or registered in time on payment of fee as payable for filing of such document / return.

Provided that no additional fees shall be payable for filing and belated documents under this scheme.

• Immunity from prosecution in respect of document(s) filed under the scheme: The defaulting LLP, which have filed their belated documents till 30.09.2020 and made good the default shall not be subjected to prosecution by the Registrar of such defaults.

• The Scheme shall not apply: This Scheme shall not apply to LLPs which has made an application in Form 24 to the Registrar, for striking off its name from the register as per provisions of Rule 37(1) of the LLP Rules, 2009.

• After 30.09.2020, the Registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner.

Link

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.

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Company Fresh Start Scheme 2020 & LLP Settlement Scheme 2020

Company Fresh Start Scheme 2020 & LLP Settlement Scheme 2020

In pursuance of the Government of India’s efforts to provide relief to law abiding companies and Limited Liability Partnerships (LLPs) in the wake of COVID-19, the Ministry of Corporate Affairs, has introduced the “Companies Fresh Start Scheme, 2020” and revised the “LLP Settlement Scheme, 2020” which is already in vogue to provide a first of its kind opportunity to both companies and LLPs to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity. The Fresh Start scheme and modified LLP Settlement Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19. The USP of both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from 1st April, 2020 and ending on 30th September, 2020.

2. The Schemes, apart from giving longer timelines for corporates to comply with various filing requirements under the Companies Act 2013 and LLP Act, 2008, significantly reduce the related financial burden on them, especially for those with long standing defaults, thereby giving them an opportunity to make a “fresh start”. Both the Schemes also contain provision for giving immunity from penal proceedings, including against imposition of penalties for late submissions and also provide additional time for filing appeals before the concerned Regional Directors against imposition of penalties, if already imposed. However, the immunity is only against delayed filings in MCA 21 and not against any substantive violation of law.

3. Details of the both the Schemes may be perused from the Circulars dated 30.03.2020, issued by the Ministry of Corporate Affairs.

Companies Fresh Start Scheme, 2020	Circular No. 12 dated 30/03/2020
Revised LLP Settlement Scheme, 2020	Circular No. 13 dated 30/03/2020

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Contribution to PM CARES Fund as eligible CSR activity under Companies Act 2013

Contribution to PM CARES Fund as eligible CSR activity under Companies Act 2013

The Government of India has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ with the primary objective of dealing with any kind of emergency or distress situation such as that posed by COVID-19 pandemic. To this MCA has clarified that, contribution to PM-CARES Fund as eligible CSR activity under item no. (viii) of the Schedule VII of Companies Act, 2013.

Contribution to PM CARES Fund as eligible CSR activity under Companies Act 2013

eF. No. CSR-05/1/2020-CSR-MCA
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS

5th floor, A Wing, Shastri Bhawan,
Dr. R.P. Road. New Delhi-110001
28.03.2020

OFFICE MEMORANDUM

Subject: Clarification on contribution to PM CARES Fund as eligible CSR activity under item no. (viii) of the Schedule VII of Companies Act, 2013.

The Government of India has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ with the primary objective of dealing with any kind of emergency or distress situation such as that posed by COVID-19 pandemic.

2. Item no. (viii) of the Schedule VII of the Companies Act, 2013, which enumerates activities that may be undertaken by companies in discharge of their CSR obligations, inter alia provides that contribution to any fund set up by the Central Government for socio-economic development and relief qualifies as CSR expenditure. The PM-CARES Fund has been set up to provide relief to those affected by any kind of emergency or distress situation. Accordingly, it is clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013.

3. This issues with the approval of competent authority.

(Gyaneshwar Kumar Singh)
Joint Secretary to Govt of India

Copy to:

1. E- Governance for uploading on MCA Website
2. Guard File

Tags: News

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