Latest Tax Update

Latest Updates

1. CBDT notifies Rule 8AC for STCG, WDV computation u/s 50 involving goodwill depreciation.

2. Central Board of Direct Taxes has extended the time for processing refunds in non-scrutiny cases for the assessment year 2017-18 up to September 30.

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3. Recovery Order of ITC due to mismatch in Form GSTR-3B and GSTR-2A stayed

The Hon’ble Chhattisgarh High Court, in the case of Bharat Aluminium Company Ltd vs. Union of India Ors. [WPT No. 94 of 2021 decided on June 24, 2021] has granted a stay on Recovery Order passed by the Revenue Department, denying Input Tax Credit (“ITC”) to the Company due to mismatch in two return forms i.e. Form GSTR-2A and Form GSTR-3B, on a condition of deposit of 5% of the demand by the Company.

15CA/CB – Manual Filing Extended till July 15th

4. The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the employee by 15th June 2021 may be furnished on or before 31st July 2021.

15CA/CB – Manual Filing Extended till July 15th

15CA/CB – Manual Filing Extended till July 15th

CBDT extends the date for manual filing of tax forms for foreign remittance

File Pic The Central Board of Direct Taxes, CBDT has granted further relaxation in the electronic filing of Income Tax Forms 15CA and 15CB and extended the date of filing from 30th June to 15th July 2021.

The taxpayers can now submit these forms in manual format to the authorized dealers by the 15th of this month. The CBDT in a statement said that authorized dealers are advised to accept such forms for the purpose of foreign remittances.

Higher TDS rates for Non-filers of Income-tax 

A facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generation of the Document Identification Number. As per the Income-tax Act, 1961, there is a requirement to furnish forms 15CA and 15CB electronically.

Presently, taxpayers upload the Form 15CA, along with the Chartered Accountant Certificate in Form 15CB, wherever applicable, on the e-filing portal, before submitting the copy to the authorized dealer for any foreign remittance.

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Latest Tax Updates

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 206AB 

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.