Latest Tax Updates

1. The Director-General of Foreign Trade (DGFT) extended the last date for updation of Importer -Exporter Code (IEC) on annual basis for Financial Year 2021 up to 31 July 2021. The DGFT issued the extension notification in continuance of the notification dated 12 February 2021, so as to inform that the last date to update or modify the IEC is extended up to 31 July 2021.

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2. CBDT issues clarification on Section 194Q :

a) TDS under section 194Q on the net of GST if charged separately. However, for section 206C(1H) GST is to be included.

b) Transactions on recognised exchanges exempted from 194Q.

c) Hierarchy of section 194-O, 194Q and Section 206C(1H) clarified. If section 194-O is applicable to a transaction then 194Q and 206C(1H) will not apply. If 194Q is applicable then section 206C(1H) shall not be applicable. If section 194-O and 194Q are not applicable section 206C(1H) will be applicable.

Critical issues by way for FAQ for new Section 206ABĀ 

d) Turnover/ Gross receipts of 10 crores of buyers for applicability of this section 194Q will mean Turnover/ Gross receipts in business only. Hence receipts by way of rent, interest, capital gain etc if not considered as business income are not to be included.

e) Further provision of section 194Q not to apply in the first year of an entity as no turnover / gross receipts in the preceding year since the entity was not in existence.