Lower TDS certificate

Application for the NIL / Lower TDS Deduction Certificate for FY 2020-21 may be made from 28 February 2020.

Under the provisions of the Income Tax Act, deduction of tax deducted at Sources (TDS) is mandatory while making payments. The taxpayer making the payment must deduct the TDS and deposit it to the Department of Income Tax before the assigned due date for depositing the TDS.

At times, the TDS is deducted from the total income of the taxpayer, i.e. the recipient, whereas the total tax liability of the taxpayer is calculated on the profit of that financial year. It is in accordance with the prevailing income tax rates/rules which may be less than the total amount of the TDS deducted.

In those cases, TDS will be deducted first, and the taxpayer can claim the refund of the excess amount of TDS deducted while filing the return on income tax (ITR). But the whole process turns out to be a hassle for many taxpayers because firstly TDS is deducted and later on the taxpayer asks for its refunds by filing ITR.

To make it easy, 

Section 197 has been issued by the government which allows taxpayers to use the Nil / Lower  Deduction of the TDS Certificate. But often the process of obtaining the Nil / Lower Deduction TDS Certificate takes a lot more time than expected.

To address this issue, the Government is allowing taxpayers to apply for the Nil / Lower TDS Deduction Certificate for the financial year 2020-21 from 28 February 2020.

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Proposals made amid 31st Meeting of the GST Council

KEY POINTS:

1. Yearly Return due date additionally broadened:

The due date for outfitting the yearly returns (GSTR 9 and 9A) and compromise explanation (9C) for the FY 2017 – 2018 further stretched out till 30th June 2019.

2. Late charge waiver:

Late charge will be totally postponed for all citizens in the event that FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months/quarters July, 2017 to September, 2018, are outfitted after 22.12.2018 however prior to 31.03.2019.

3. E-way bill:

Citizens who have not documented the profits for two back to back assessment periods will be confined from producing e-way charges.

4. Time limit stretched out for ITC on 2017-18 Invoices:

ITC in connection to solicitations issued by the provider amid FY 2017-18 might be benefited by the beneficiary till the due date for outfitting of FORM GSTR-3B for the long stretch of March, 2019, subject to indicated conditions.

5. New Return documenting framework on preliminary premise:

The new return documenting framework will be presented on a preliminary premise from 01.04.2019 and on compulsory premise from 01.07.2019.

6. Single Cash Ledger:

There would be a solitary money record for each duty head.

7. Single Authority for Disbursing Refund:

A plan of single expert for payment of the discount sum endorsed by either the Center or the State assess specialists would be actualized on pilot premise.

 

 

8.Changes in Annual Return:

– Amendment of headings – supplies – ‘made amid the year’ and not ‘as proclaimed in returns recorded amid the year’

– All profits in FORM GSTR-1&FORM GSTR-3B to be documented before recording of GSTR 9 arrangement

– HSN code might be announced just for internal supplies esteem 10% or a greater amount of aggregate internal

– Additional installments, assuming any, required, should be possible through FORM GST DRC-03 just in real money

– ITC can’t be profited through FORM GSTR-9 and FORM GSTR-9C

– All solicitations relating to past FY (independent of month in which such receipt is accounted for in FORM GSTR-1) would be auto-populated in FORM GSTR-9

– Value of “non-GST supply” will likewise incorporate the estimation of “no supply” and might be accounted for in Table 5D, 5E and 5F of FORM GSTR-9

– Verification by citizen who is transferring compromise explanation would be incorporated into FORM GSTR-9C.

9.Due date augmentation:

– FORM GSTR-8 by internet business administrators for the long periods of October, November and December, 2018 will be stretched out till 31.01.2019.

– FORM GST ITC-04 for the period July 2017 to December 2018 will be reached out till 31.03.2019.

The essential Notifications/Circulars for executing the above proposals of the GST Council will be issued right away.

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Annual Return Filing, Format, Eligibility & Rules for GSTR 9

1. What is GSTR-9 yearly return?

GSTR 9 shape is a yearly come back to be recorded once in a year by the enrolled citizens under GST including those enlisted under organization require plot. It comprises of insights about the provisions made and got amid the year under various duty heads i.e. CGST, SGSTand IGST. It solidifies the data outfitted in the month to month/quarterly returns amid the year.

2. Who should record GSTR 9 yearly return?

All the enrolled assessable people under GST must record GSTR 9 shape. In any case, the accompanying people are not required to document GSTR 9

  • Easygoing Taxable Person
  • Information benefit merchants
  • Non-inhabitant assessable people
  • People paying TDS under segment 51 of GST Act.

3. What are distinctive sorts of return under GSTR-9 shape?

There are 4 kinds of return under GSTR 9 :

i. GSTR 9: GSTR 9 ought to be recorded by the normal citizens documenting GSTR 1, GSTR 2, GSTR 3.

ii. GSTR 9A: GSTR 9A ought to be documented by the people enrolled under composition scheme under GST.

iii. GSTR 9B: GSTR 9B ought to be documented by the internet business administrators who have recorded GSTR 8 amid the budgetary year.

iv. GSTR 9C: GSTR 9C ought to be documented by the citizens whose yearly turnover surpasses Rs 2 crores amid the budgetary year. Every single such citizen are likewise required to get their records evaluated and document a duplicate of reviewed yearly records and compromise articulation of assessment effectively made good on and government expense payable according to inspected accounts alongside GSTR 9C.

4. What is the due date of GSTR-9?

GSTR-9 due date is prior to 31st December of the ensuing budgetary year.

For example, for FY 2017-18, the due date for recording GSTR 9 is 31st December 2018*.

5. What is the Penalty for the late recording of GSTR-9 frame?

Late charges for not documenting the GSTR 9 inside the due date is Rs. 100 every day for every misbehave to a most extreme of a sum determined at a quarter percent of the citizen turnover in the state or association region. Along these lines it is Rs 100 under CGST and 100 under SGST, the aggregate punishment is Rs 200 every day of default. There is no late expense on IGST.

6. Details required in the GSTR-9 form?

Sl no Parts of the GSTR-9 Information required
1 Part-I Basic details of the taxpayer. This detail will be auto-populated.
2 Part-II Details of Outward and Inward supplies declared during the financial year(FY). This detail must be picked up by consolidating summary from all GST returns filed in previous FY.
3 Part-III Details of ITC declared in returns filed during the FY. This will be summarised values picked up from all the GST returns filed in previous FY.
4 Part-IV Details of tax paid as declared in returns filed during the FY.
5 Part-V Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to the date of filing of annual returns of previous FY whichever is earlier. Usually, the summary of amendment or omission entries belonging to previous FY but reported in Current FY would be segregated and declared here.
6 Part-VI Other Information comprising details of:
-GST Demands and refunds,
-HSN wise summary information of the quantity of goods supplied and received with its corresponding Tax details against each HSN code,
-Late fees payable and paid details and
-Segregation of inward supplies received from different categories of taxpayers like Composition dealers, deemed supply and goods supplied on approval basis.

7. Step by step instructions to get ready GSTR-9 and a point by point exchange of shape

The revelation of the data in the Annual returns has various ramifications. Any off base data can draw in duty requests, intrigue and punishments on the equivalent, take off alone the long haul suits that pursue years after the fact.

The chief hotspot for planning GSTR-9 will be GSTR-1 and GSTR-3B returns. All data must be cross-checked with the books of records before pronouncing in the yearly returns.

Comprehensively, the shape involves the revelation of yearly deals, bifurcating it between the cases subject to assessment and cases not expose to charge. On the buy side, the yearly estimation of internal supplies and ITC profited subsequently, delegated inputs, input administrations and capital merchandise and the ITC to be switched because of ineligibility.

While at it, GSTR-9 is partitioned into six sections. Here is an extensive rundown of what should be announced and from where one can bring the data.

Imperative focuses to note:

Principally, there are sure exchanges that have not been accounted for in the GST returns but rather which influence the assessment obligation toward the finish of the yearly time frame. Supply without thought and products sent on endorsement premise to give some examples. One of the prominent ones being the regarded supplies where citizens have sent data sources or capital products to the activity specialists and have not gotten them by one or three years individually.

Albeit no lucidity is acquired with respect to the treatment of any extra obligation emerging because of confound or ITC recognized as accessible however not announced in intermittent returns, it is prudent that the risk so distinguished, be paid before documenting yearly returns. Henceforth, the yearly returns must be set up according to the GSTR-1 and GSTR-3B on an ‘as is’ premise.

8. Disadvantages/Issues with GSTR 9 frame and conceivable recommendations

Configurations of GSTR 9 discharged early this September had a great deal of ambiguities. The issues were generally founded on the way that the yearly return shape would not auto-populate the data which was at that point recorded in the occasional returns. So as to make the recording of yearly return basic for citizens, the GSTN refreshed the shape and settled a large portion of the issues. These are a portion of the issues as yet persevering in the yearly return shape.

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