Payment of Tax under QRMP Scheme, for the month of March 2021

1. All taxpayers having aggregate turnover up to Rs 5 crores, under QRMP Scheme (w.e.f. 01.01.2021 onwards), are required to furnish return on a quarterly basis, along with payment of tax on a monthly basis.

2. Persons availing QRMP Scheme are required to pay the tax due, in each of the three months of the quarter, by depositing the due amount as discussed below.

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3. Payment of Tax for first two months of a quarter (M1 & M2 ie for January and February month for Jan-March Quarter):

  • a. While generating the challan, taxpayers must select “Monthly payment for the quarterly taxpayer” as a reason for generating the challan.
  • b. They can choose either of the following two options to generate the Challan:

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–35% Challan (Fixed Sum Method):
For taxpayers opting for this method, the portal will generate a pre-filled challan in Form GST PMT-06, for an amount equal to 35% of the tax paid in cash, in the preceding quarter, if the return was furnished quarterly or equal to the tax paid in cash in the last month of the immediately preceding quarter if the return was furnished monthly.

–Challan on a self-assessment basis (Self-Assessment Method):

These taxpayers can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit as available, in FORM GST PMT-06.

RBI announces new initiatives for digital payments, including the ability to use your mobile wallet as a debit card.

Note: The aforesaid options are not available for payment of tax for the third month (M3) of the quarter to persons availing QRMP Scheme.

  • c. Payment of Tax for the third month of a quarter (M3 ie for March month for Jan-March Quarter): For the third month of the quarter (M3), taxpayers can click the button ‘Create Challan’ in Payment Table 6 of Form GSTR-3B and file GST-PMT-06 Challan, for depositing any amount towards their tax liability.

10 Rules that will come into Effect from 1st October 2020

Motor vehicle, Income tax, Health insurance, Credit, and Debit card rules are changing from Oct 1 onward. So, here are the 10 points which you need to know about.

1. Physical verification not required for the documents like Driving License and RC

The tension of keeping a hard copy of documents like RC and driving license together when driving would come to an end. Now you can drive a car with just a clear soft copy of the documentation connected to the vehicle. The Ministry of Road and Highways has informed the numerous such amendments made to the Motor Vehicles Rules of 1989, which will come into force on 1 October. As a step towards easing the ease of the commuter, the central government is expected to digitize documents, including vehicle maintenance, driving licenses, and e-challens, which will now be carried out via the Information Technology Portal from 1 October 2020. Drivers can manage their vehicle documents on the central government’s online site, such as Digi-locker or m-parivahan.

2. Mobile phones only for route navigation

Under the amendments made by the Ministry of Road and Highways to the Motor Vehicles Rules 1989, you will now be able to use mobile navigation on the route in such a way that it does not interfere with the focus of the driver while driving.

3. LPG connection will not be free

Under Pradhan Mantri Ujjwala Yojana (PMUY), the process of obtaining a free gas connection will come to an end on 30 September 2020. The Union Cabinet has approved an extension until the end of September for the usage of free cooking gas cylinders under PMUY.

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4. 5% of tax will be imposed in foreign fund transfer

Any amount sent abroad to get international tour packages, and any other foreign remittances made above 7 lakh, will impose a tax-collected-at source (TCS) starting on 1 October, unless the TDS is already deducted on that amount. While the tax on international tour packages will be 5% for any amount, for other foreign remittances the tax will be charged only for the amount spent above 7 lakh.

5. Sweet sellers will need to display ‘Best Before Date’

Sweet shops will now have to announce the ‘best before date’ of non-packaged or loose sweets available in their shop as well. The Food Safety and Standards Authority of India (FSSAI) has advised sweet shop owners to comply with the procedure as of 1 October.

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6. Implemention of New Health Insurance

The improvements in health insurance coverage will be implemented aftermath of Covid-19. The costs of premium health care would inevitably increase. The revised health insurance regulations to be enforced post-COVID-19 and inclusion will make 17 permanent illnesses outside the cover.

7. Buying television sets can be expensive

Open-cell panels will face 5% import duty as of 1 October, with the government saying that the duty exemption expiring at the end of this month will not be extended. As a part of ‘Aatmanirbhar Bharat,’ the Government is committed to growing domestic production capacity for open-cell panels so that imports can be curbed. The one-year exemption given to that object expires today, 30 September.

8. New credit and debit card rules by RBI

The Reserve Bank of India ( RBI) has released new guidelines for acquiring debit and credit cards. These reforms will be effective from 1 October 2020. Under the new rules, card users will also be able to register opt-in or opt-out programs, spend limits, etc. for international transactions, online transactions as well as contactless card transactions.

9. FSSAI bans blending of mustard oil with any other cooking oil

The Food Regulator FSSAI restricted the mixing of mustard oil with any other cooking oil with effect from 1 October. In a letter to the Food Safety Commissioner of all States and Union Territories, FSSAI claimed that “the blending of mustard oil with any other edible oil in India has been prohibited with effect from 1 October 2020.”

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10. New Tax Collected at Source (TCS) regime

The Income Tax Department released guidance on the applicability of the TCS law requiring an e-commerce provider to deduct 1% tax on the selling of goods and services. The Tax Collected at Source (TCS) scheme will come into operation from 1 October. The Finance Act 2020 established a new section 194-O of the Income Tax Act 1961, which allows the e-commerce provider, with effect from 1 October 2020, to deduct income tax at a rate of 1 % of the total sum of sales of goods or supplies or both, enabled by means of its digital or electronic facility or website.

Recent Post:-

Non Deduction or Deposit of TDS (Tax Deducted at Source)

Outcomes on Non Deduction or Deposit of TDS

Need to Know about Consequences on Non Deduction or after deducting the same neglects to Deposit it to the credit of Government’s account.

A deductor would confront the accompanying consequences in case he neglects to deduct TDS or after deducting the same neglects to store it to the credit of Central Government’s account:-

  • Disallowance of Expenditure
  • Levy of Interest
  • Levy of Penalty

A) Disallowance of Expenditure

According to section 40(a)(i) of the Income-tax Act, any amount (other than pay) payable outside India or to a non-resident, which is chargeable to tax in India in the hands of the beneficiary, will not be permitted to be deducted in case it is paid without deduction of tax at source or if tax is deducted yet isn’t stored with the Central Government till the due date of filing of return.

However, if tax is deducted or deposited in upcoming year, all things considered, the expense will be permitted as deduction in that year. Likewise, according to section 40(a)(ia), any whole amount payable to a resident, which is subject to deduction of tax at source, would pull in 30% disallowance in case it is paid without deduction of tax at source or if tax is deducted yet isn’t stored with the Central Government till the due date of filing of return.

However, where in regard of any such amount, the tax is deducted or saved in the consequent year, as it may be, the expenditure so disallowed will be permitted as deduction in that year.

According to Section 58(1A) (as amended with impact from the assessment year 2018-19), the arrangements of section 40(a) (ia) and 40(a)(iia) will likewise apply in processing the income chargeable under the head “Income  from different sources”.

B) Levy of Interest

According to section 201 of the Income-tax Act, if a deductor neglects to deduct tax at source or after deducting the same neglects to store it to the Government’s account then he will be regarded to be an assessee-in-default and subject to pay basic interest as given:-

(I) at 1% for consistently or part of a month on the measure of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half % for consistently or part of a month on the measure of such tax from the date on which such tax was deducted to the date on which such tax is really paid.

C) Levy on Penalty

Penalty of an amount equivalent to tax not deducted or paid could be given under section 271C .

Cures Available

A deductor who fails to deduct the entire or any part of the tax on the entirety amount paid to a resident or on the aggregate credited to the account of a resident will not be considered to be an assessee-in-default in regard of such tax if such resident–

(I) has outfitted his return of income under section 139 ;

(ii) has considered such whole amount for calculating income in such return of income; and

(iii) has given tax due on the income declared by him in such return of income,

also, the deductor outfits a certificate with this impact in Form No.26A from a chartered accountant.

 

Enquire with Certicom Consulting in case of any queries.