04Feb 2023 by Asmeet No Comments

Budget Proposal – Sec 43B – Payments to MSME

Budget, Uncategorized
Budget 2023 Proposal: The government proposes to include payments made to micro and small enterprises within the ambit of section 43B of the Income Tax Act. Accordingly, a new clause (h) is proposed to be inserted in section 43B of the Act to provide that any sum payable by the assessee to a micro or small enterprise beyond the time limit specified in section 15 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 shall be allowed as a deduction only on actual payment. Points to Note: The proposed section is about allowance or disallowance of payments to micro or small enterprise. Medium Enterprises are not covered in the same. Section 15 of the MSMED Act mandates payments to micro and small enterprises within the time specified in…
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04Feb 2023 by Asmeet No Comments

Budget 2023: GST – Blocked Credit – ITC on CSR Expenditure

Budget, Uncategorized
Budget 2023 GST Proposal ITC in respect of goods or services procured to fulfil obligations under Corporate Social Responsibility (CSR) as per section 135 of the Companies Act, 2013 is proposed to be blocked List of blocked credit in section 17(5) is set to further increase. ITC in respect of goods or services procured to fulfil obligations under Corporate Social Responsibility (CSR) as per section 135 of the Companies Act, 2013 is proposed to be blocked. There have been various opinions on this issue of whether ITC on CSR activities is available or not, many judgements given by AARs of Uttar Pradesh, Tamil Nādu etc have said that ITC on CSR shall be available whereas many AARs of Gujarat, Kerala etc have denied this credit. The proposed amendment says: It…
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04Feb 2023 by Asmeet No Comments

Budget 2023: GST – Reversal of ITC on account of non-payment to the Supplier within 180 days

Budget, Uncategorized
Budget 2023 GST Proposal Reversal of ITC on account of non-payment to the Supplier within 180 days Section 16 is being amended to bring it in line with the return filing system. Where a recipient does not pay the Invoice value and GST thereon to the supplier within 180 days, he is required to reverse the ITC proportionate to such pending payment. Currently said ITC amount is required to be shown as Output Tax liability and paid along with Interest In the proposed amendment, it will be shown as reversal of ITC in GSTR 3B and paid along with Interest. Another amendment provides that the recipient will be eligible to re-avail such reversed ITC once the pending payment has been paid to the Supplier, currently the law is silent on…
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04Feb 2023 by Asmeet No Comments

Budget 2023: Composition Scheme Trader can Trade thru E-Commerce Operators

Budget, Uncategorized
Budget 2023 Proposal A person who has opted for Composition Scheme can trade in goods through an Ecommerce operator A person who had opted to pay tax under Composition Scheme he was not eligible to do his business through an E-Commerce Operator like Amazon or Myntra. Section 10 is now proposed to be amended to facilitate such taxpayers whereby they can do business on such E-commerce Platforms. However, only persons engaged supply of Goods shall only be allowed to do so, supplier of services will not be allowed. Lastly all other conditions ofcomposition scheme shall apply, accordingly a Composition taxpayer is not be allowed to sell goods outside his state, this restriction shall apply and E-commerce operator will have to ensure that the goods are not sold outside the State…
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23Sep 2021 by Asmeet No Comments

Key Recommendations of 45th GST Council Meeting held on 17th September, 2021

Uncategorized
Key Recommendations of 45th GST Council Meeting held on 17th September, 2021 Interest u/s 50(3) of the CGST Act, 2017 to be levied on ITC availed and utilized Interest under section 50(3) of the CGST Act, 2017 to be payable on “ineligible ITC availed and utilized” and not on “ineligible ITC availed”. The change will be effective retrospectively from 01.07.2017. Interest in such cases to be charged on ineligible ITC availed and utilized at 18%. Transfer of unutilized balance in CGST/ IGST cash ledger between two GSTINs having same PAN allowed Unutilized balance in CGST and IGST cash ledger shall be allowed to be transferred between distinct persons (entities having same PAN but registered in different states or having different GSTINs in the same State), without going through the refund…
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21Jul 2021 by admin No Comments

Sections 206AB and 206CC – Steps for downloading Compliance Check report

Uncategorized
Finance Act, 2021 has introduced Section 206AB and 206CCA to the Income-tax Act which has been made applicable from 1st July, 2021. The said section provides that while making payment to a ‘specified person’, TDC/TCS has to be deducted/collected at the rates specified in section 206AB and 206CCA of the Act respectively. To ease the compliance on the Deductor/ Collector, the Income-tax Department has introduced a functionality on the e-filing portal, wherein the deductors/collectors can check whether a person is a ‘specified person’ under the Act by way of a ‘Compliance Check report’. The process to download the Compliance Check Report is attached herein for your ease of reference.   Compliance-Check Report Check-for-Section-206AB-206CCA-QRG-1Download
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10Mar 2021 by Asmeet No Comments

Mandatory GST HSN Codes on Invoices w. e. f. 1 Apr 2021

Uncategorized
Mandatory GST HSN Codes on Invoices w. e. f. 1 Apr 2021A major change in GST for which the businesses have to gear up starting 1 April 2021 is mentioning of HSN codes on all the tax invoices. The change is an extension of the amendment made in Notification 12/2017-Central Tax through Notification No. 78/2020 dated 15/12/2020. The Mandatory requirements can be summarised as below: Thus, it’s optional to show HSN codes in B2C invoices for turnover below 5 crores However, for the 49 chemicals as specified in the Annexure below have to be mandatorily shown under 8 digits as per Notification no. 90/2020 dated 01st December 2020 It is also mandatory to report minimum digits as per above Table in GSTR 1 The digits of HSN codes will have…
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30Jan 2021 by Asmeet No Comments

Key takeaways from the Economic Survey of 2020-21

Budget, Economy, Uncategorized
Key takeaways from the Economic Survey of 2020-21 The Survey expects the Indian economy to grow by 11% in real terms (adjusted for inflation) during 2021-22. This is close to the growth of 11.5% forecast by the International Monetary Fund (IMF). This is good news. 11% growth from this means that the Indian GDP in 2021-22 is expected to be at ₹149.2 lakh crore, which is just 2.4% more than the GDP of ₹145.7 lakh crore in 2019-20The gross tax revenue earned by the government during the period April to November 2020 fell by 12.6% to ₹10.26 lakh crore.Other than gross tax revenue, the amount of money the government expected to earn through the disinvestment route, by selling its stake in public sector enterprises, has taken major beating this year. Of the…
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24Aug 2020 by Asmeet
Agriculture Prospects in India Soar with Rains Most Well-Spread In 3 Years: CRISIL

Agriculture Prospects in India Soar with Rains Most Well-Spread In 3 Years: CRISIL

Uncategorized
Early onset and good distribution of the south-west monsoon has paved the way for robust kharif output, raising hopes in hinterland and the farm-gate profits during this season are set to increase 3% to 5% this year, says ratings agency CRISIL. As on 21 August 2020, rains were 7% above the long-period average. Good spatial and temporal distribution has prompted sowing across crops in most states.   CRISIL Research says it expects a 2-3% rise in sown area on-year at about 109 million hectares for kharif season 2020. The area under paddy cultivation is set to increase because of both rains and reverse migration of labour to the eastern and southern states
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