What is the date of Effective Voluntary Cancellation of Registration under the IT ACT?

Say 12AA Registration, Registration u/s Sec 10 (23C) , PAN NO, TAN NO. etc

1.Voluntary Cancellation of any Registration ( Maybe granted Sec 12AA, u/s 10(23C, etc), Assessee may apply for cancellation of the Registration to the Authority at any point of time.

2.Once the cancellation application was received by the Authority, it is the duty of the Authority Either to accept it OR issue a Show Cause Notice to the Assessee within a reasonable time.

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3.Where no show cause notice was received within a reasonable time then Date of Cancellation of Registration has to be accepted as on the date when Assessee made the application before the Authority.

4.Where Show Cause Notice was received from the Authority, towards Cancellation Application, then the Effective date of Cancellation shall be held as the Date on Conclusion of hearing before the Authority OR reply to the Show Cause notice was placed before the Authority.

The above view was based upon the Principle that
” All the Powers held by someone in a Public Office are powers held in TRUST for the benefit of the Public at Large.
Officers have no discretion either to use or not to use the powers given by the ACT to the Officers.

registration

5.Ex: For deciding the Effective Date of Voluntary Cancellation of Registration:
(i). Date of Application: 5th Feb 2019.
( ii). Show cause notice issued by Deptt: 10.03.2019.
(iii). Date of the hearing of Show Cause Notice. 20.03.2019.
(iv). Date of communication towards Cancellation from.Deptt: 05.06.2021.

Here the date of Voluntary Cancellation of Registration Shall be the date when on Conclusion of hearing of the Show Cause Notice that is 20.03.2019.

Date of Communication from Deptt. Towards Cancellation that is 05.06.2021 has no Relevance.

According Assessee is not under any obligation to fulfil the provisions relating to the Registration From.FY 2019-20.

The above view is supported by the Judgment of the ” NAVAJBAI RATAN TATA TRUST vs. PCIT (MUM.ITAT).

Nut Shell:

1.Voluntary cancellation of Registration ( Say 12AA, (10(23C)), shall be effective from the date on conclusion of the Hearing or filling reply to the Show Cause Notice towards Cancellation.

2.No Show cause notice it is the date of Application for Cancellation.

3.Date of Deptt’s letter granting Cancellation has no relevance to decide, Date of Cancellation.

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GST Effect on Export of Goods and Services

After GST take off in India, under “Make in India” strategy, the Indian Government intended to expand the yield and nature of fares from India and gave many tax cuts to exporters.

Learning of Export of Goods and Services

  • Fare of merchandise implies removing products from India to a place outside India.
  • Fare of Services implies when the provider of administration is situated in India and the place of supply of administration is outside India.

Treatment of Exports under GST

  • Fare of merchandise or administrations are treated as Zero appraised supply i.e., the products or administrations sent out will be diminished upon them either at the info organize or at the last item arrange.
  • Fare of merchandise or administrations are treated as between state supply in course of business

Highlights of the plan of Export under GST

  • The products and ventures can be sent out either on installment of IGST which can be guaranteed as a discount after the merchandise have been traded or under Letter of Undertaking (LUT) without installment of IGST.
  • If there should be an occurrence of merchandise and enterprises traded under LUT, the exporter can guarantee a discount of collected ITC by virtue of fare
  • The delivery bill recorded with the traditions is treated as an application for discount of IGST and will be esteemed to have been documented after accommodation of fare general show and outfitting of a substantial return in Form GSTR-3 by the candidate.

Place of Supply if Needed of Export of Goods

The Place of supply in the event of fare of merchandise is where the products have been sent out i.e., a goal outside India

The Place of supply of Services if there should be an occurrence of either area of purchaser or recipient is outside India is represented by Section 13.

Esteemed Exports

Esteemed Exports alludes to those exchanges in which merchandise provided don’t leave the nation and the installment for such supplies is gotten either in Indian Currency or in Free remote trade.

Applying of Refund Application

Any individual guaranteeing a discount on the fare of products or administrations may make an utilization of discount before the expiry of 2 years from the applicable date.

The discount application ought to be recorded inside 2 years from the date on which return identifying with considered fares.

Conditions to be fulfilled for a support of be named Export of Service

  • Provider of Service ought to be situated in India and place of supply of administration is outside India.
  • Beneficiary of administration is situated outside India.
  • Installment for such administration ought to be gotten in convertible remote Exchange.
  • Provider of Service and collector are not just foundations of an unmistakable individual.

Scrips usage for making payment of GST

The scrips can’t be used for installment of IGST and pay Cess. Additionally, scrips can’t be utilized for installment of CGST, SGST/UTGST or IGST for residential acquisition.

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GST Council 32nd Meeting- GST Exemption Limit Increased From Rs 20 Lakhs To Rs 40 Lakhs

The 32 GST council meeting concluded on 10 Jan 2019 provides major relief to MSME’s! Finance Minister Arun Jately announces hereby the following reliefs to the GST taxpayers–

Category Earlier Exemption New Exemption
Normal Category States Rs 20 lakhs Rs 40 Lakhs
Northeastern States (except J&K) Rs 10 lakhs Rs 20 lakhs

A reason to celebrate for all Micro Small And Medium Enterprises!!

“The states will have the discretion to opt up or opt down the exemption limit. They will have to inform the Secretariat within a week if they wish changes in their exemption limit,” Said the Finance Minister.

Composition Scheme :

Limit Increased– From 1 April 2019, the specified composition limit will be increased to Rs 1.5 crore in response to the existing limit set of Rs 1 Cr.

A good relief for composite taxpayers and those looking forward to enrolling in the composition levy.

No more quarterly returns –Composition taxpayers will no longer be required to file returns every quarter. Although the quarterly liability to pay tax remains unchanged!!.

Services now covered– Rendering mixed supplies with annual turnover up to Rs 50 Lakhs will now be eligible for the composition levy. And the GST rate for such service providers will be 6 percent.

Mr. Jately said  “Service providers and those who render mixed supplies of goods and services with a turnover up to Rs 50 lakh in the informal sector will be entitled to the composition scheme under the GST regime. The composition rate for services has been put at 6 percent,” adding to his words that “This 6 percent is lower than the service tax paid by service providers with turnover up to Rs 50 lakh,”

Calamity Cess :

The 32nd GST Council also gave the State of Kerala special power to levy 1 percent disaster on all its intrastate supplies for the next two years.

” There is a provision in the GST Act that allows the Council to stop coping with natural disasters, ” was said at the council meeting.

Real estate and Taxation on Lottery :

No conclusive announcement was made in the fields of real estate and uniformity in lottery taxation through the GST Council meeting held on 10 January 2019, Thursday. There was a difference of opinion among those entrusted with the decision and therefore a seven-member bench was concluded to examine the matter in depth.

Finance Minister Mr. Arun Jately said in this regard, ” A seven-member GoM has been formed to look at the GST on real estate. Another GoM with representation from lottery developing and selling states will be formed for uniform taxation of the lottery or other issues arising from the lottery. These ministerial panels will make their recommendations at the next meeting, “

To conclude the GST Council meeting held today, we can quote the words of our Finance Minister, who explains more clearly the reasons behind the decisions taken at this meeting.

” Each of these decisions today is intended to help small and medium-sized enterprises, ” Arun Jaitley said at the GST Council meeting held on 10 January 2019.

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