Relaxation in date of deposit of ESI Contribution

The provision of Regulation 26 & 31 of The Employees’ State Insurance (General) Regulations, 1950 has been relaxed by Notification no.P-11/14/Misc./2019-Rev. dated 16th of March, 2020, for the months of February, 2020 and March, 2020 due to Corona Virus pandemic and now the ESI Contribution for the month of February, 2020 and March, 2020 can be filed and paid up to 15th April, 2020 and 15th May, 2020 respectively.

The Notice has been attached below for reference:

Procedure to make declaration in the Vivad se Vishwas Rules issued

The Income Tax Department has issued detailed instructions vide Notification No.:12 of 2020  dated 19th March, 2020 on how to fill up the declaration forms specified under The Direct Tax Vivad Se Vishwas Rules, 2020.

A copy of the notification can be downloaded from the link given below:

Forms notified for exercise of option of concessional rate of Tax under Section 115BAA and Section 115BAB

Section 115BAA was inserted by the Taxation Laws (Amendment) Act, 2019, w.e.f. 1-4-2020. The section provides for certain domestic companies with an option to pay tax at the rate of 22%, subject to satisfaction of certain conditions.The conditions basically include that income of the company shall be computed without allowing certain exemptions and deductions under the Income Tax Act.

To be eligible to apply for the concessional rate of 22% (if all the necessary conditions are satisfied) the company has to exercise the option in the prescribed manner on or before the due date of filing of return under section 139(1)  for any previous year relevant to the assessment year commencing on or after the 1st day of April, 2020 and such option once exercised shall apply to subsequent assessment year.

The Income Tax Department via Notification G.S.R.110(E) dated 12^th February,2020 has amended the Income Tax Rules and inserted Rule 21AE to provide for the manner in which the option under the section can be exercised which requires filing of Form No. 10-IC electronically under digital signature or electronic verification mode.

The notification also covers Rule 21AF and Form 10-ID, which can be used by ceratin new domestic manufacturing companies to pay tax at a concessional  rate of 15% instead of 22% or 25% subject to satisfaction of certain conditions.

The copy of notification which includes Form No. 10-IC and Form No. 10-ID has been attached for reference below:

Foreign airlines exempt from furnishing reconciliation Statement in FORM GSTR-9C

The Central Government,  exercising the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 on the recommendations of the Council, vide Notification No.09/2020– Central Tax dated 16th March, 2020, notified the persons who are foreign company which is an airlines company covered under the notification issued under sub-section (1) of section 381 of the Companies Act, 2013  and who have complied with the sub-rule (2) of rule 4 of the Companies (Registration of Foreign Companies) Rules, 2014, as the class of registered persons who shall not be required to furnish reconciliation statement in FORM GSTR-9C to the Central Goods and Services Tax Rules, 2017 under subsection (2) of section 44 of the CGST Act read with sub-rule (3) of rule 80 of the said rules.

However, a statement of receipts and payments for the financial year in respect of its Indian Business operations, duly authenticated by a practicing Chartered Accountant in India or a firm or a Limited Liability Partnership of practicing Chartered Accountants in India is submitted for each GSTIN by the 30th September of the year succeeding the financial year.

The notification has been attached below for reference:

Compulsory Digital Payment facility to be provided by businesses

Government has recently introduced Section 269SU, Section 271DB along with Rule 119AA to provide for certain prescribed modes of payment to be compulsorily provided by certain business.

Section 269SU inserted in the Income-tax Act, 1961 (“the Act”), vide the Finance (No. 2) Act 2019(“the Finance Act”), provides that:

Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year.

As such the government has inserted a new rule 119AA vide notification number: 105/2019/F. No. 370142/35/2019-TPL  dated 30^th December, 2019 specifying the additional modes of payment to be provided by every person, carrying on business, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year.

The above specified business shall provide facility for accepting payment through following electronic modes, in addition to the facility for other electronic modes of
payment, if any, being provided by such person, namely:—
(i) Debit Card powered by RuPay;
(ii) Unified Payments Interface (UPI) (BHIM-UPI); and
(iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).”.

These payment modes are to be compulsorily provided by the above specified business from 01^st of January, 2020 as clarified by Circular No.32/2019 dated 30^th December, 2019.

Further, Section 10A of the Payment and Settlement Systems Act 2007, inserted by the Finance Act, provides that no Bank or system provider shall impose any charge on a payer making payment, or a beneficiary receiving payment, through electronic modes prescribed under Section 269SU of the Act. Consequently, any charge including the MDR (Merchant Discount Rate) shall not be applicable on or after 01^st January, 2020 on payment made through prescribed electronic modes.

Another section, section 271 DB has also been inserted in the Act, which provides for levy of penalty of five thousand rupees (Rs.5,000/-) per day in case of failure by the specified person to comply with the provisions of section 269SU.

The above circular also clarified that no such penalty shall be levied till 31^st January, 2020 in order to provide sufficient time to the specified person to install and operationalize the facility for accepting payment through the prescribed electronic modes. However, if the specified person fails to do so, he shall be liable to pay a penalty of five thousand rupees per day from 01^st February, 2020 under section 271 DB of the Act for such failure. Joint Commissioner of Income Tax has been given the power to impose this penalty.

However, such penalty can be waived if such person proves that there were good and sufficient reasons for failure to provide the facility for accepting payment through specified modes.

The above stated notification and circular has been attached for reference.

CBDT Notification Reg Centralised Verification Scheme, 2019

The CBDT has issued a Notification dated 30th January, 2019 by which it has formulated a scheme called the Centralised Verification Scheme, 2019. The scheme provides for centralised issuance of notice and for processing of information or documents and making available the outcome of the processing to the Assessing Officer in the context of E-Assessment

DUE DATE TO FILE INCOME TAX RETURN EXTENDED

Ministry of Finance has issued a press release according to which due date for filing of Income tax return has been extended from 31.07.2018 to 31.08.2018. The extension of due date is applicable only for taxpayers which are required to file their return on 31.07.2018 for F.Y  2017-18