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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20Apr 2021 by Asmeet No Comments

Union Cabinet approves Amendments to the Finance Act, 2021

Budget, Income Tax
Union Cabinet approves Amendments to the Finance Act, 2021 As per Press Release, dated 20-04-2021, The Union Cabinet has given ex-post facto approval for the Government amendments to the Finance Bill, 2021 which is enacted on 28-03-2021 as the Finance Act, 2021. These amendments were essential to clarify and rationalise the proposals further and address stakeholders concerns arising out of amendments proposed in the Finance Bill, 2021.Amendments to the Finance Act, 2021 are tax proposals that shall generate timely revenue for the Government and streamline existing provisions by addressing grievances of the taxpayers
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01Feb 2021 by Asmeet No Comments

Major Income Tax Proposals in Budget 2021

Budget, Income Tax
Major Income Tax Proposals in Budget 2021 1. No Income tax returns for senior citizen of 75 year or above age where the total income consist only of pension and interest income 2. Income tax returns will have prefill data of capital gains from listed securities, post office interest, Interest income, Salary etc,. 3. Increase in tax audit limit from Rs. 5 crore to Rs. 10 crore if more than 90% transactions are made digital mode and increase in tax Audit Exemption Limit for NRIs who carry out 95% of their transaction digitally, to Rs. 10 crores 4. Introduction of Faceless for Income tax appellate tribunal. A National Faceless Income Tax Appellate Tribunal Center to be constituted, wherein all communication between the Tribunal and the Appellant shall be electronic. Where…
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01Feb 2021 by Asmeet No Comments

Quick Review of GST Proposal in Budget 2021

Budget, GST
Quick Review of GST Proposal in Budget 2021 As per the Finance Bill 2021 is No GST Audit is required. Clause 101 of Finance bill states Sub-section (5) of section 35 of the CGST Act is being omitted so as to remove the mandatory requirement of getting annual accounts audited and reconciliation statement submitted by specified professional. 2. Further, in Clause 102 of Finance bill Section 44 of the CGST Act is being substituted so as to remove the mandatory requirement of furnishing a reconciliation statement duly audited by specified professional and to provide for filing of the annual return on self-certification basis. It also provides for the Commissioner to exempt a class of taxpayers from the requirement of filing the annual return. 3. Clause 99 of Finance Bill provides an additional…
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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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