Kansal Hitesh & Co. Chartered Accountants

18/07/2022

25/04/2022

🫐 *Compulsory to file Income Tax Returns;- Applicable for Financial Year 2021-22 i.e. Assessment Year 2022-23*

Recently, CBDT inserted a new rule 12AB which now mandates Compulsory Return Filing in all cases where following limits exceeded:-

👉 Sales, Turnover or Gross Receipts from business exceeds INR. 60 lacs
👉 Gross receipts from Profession exceeds INR. 10 lacs
👉 TDS/TCS exceeds INR. 25,000 (In case of Senior Citizens INR.50,000)
👉 Deposit in one or more Savings bank account of the person, in aggregate, is INR. 50 lacs or more

Apart from above new conditions, following other criteria already mentioned u/s 139(1) of the Income Tax Act:-

👉 Deposited INR 1 crores or more in one or more current accounts with a banking company or co-operative bank;
👉Incurred expenditure of INR 2 Lacs or more on foreign travel expenses either for himself or for any other person;
👉Incurred expenditure of INR 1 Lacs or more towards consumption of electricity.

*What are the consequences of non-filing or delay in filing of the Income Tax Returns:-*

👉 Penalty of INR. 5,000 (if filed before 31 Dec) after which penalty of INR. 10,000 will be levied.

👉Assessee would not be allowed to claim the benefit of certain deductions and/or set off and carry forward of losses other than loss from house property loss, due to non-filing of the tax return within the prescribed due dates.

👉 While making an application for a loan to purchase a house/car or medical treatment or making an application for VISA of some foreign countries like the UK, US, Canada, and Australia, copy of Income Tax Return is an important document.

👉 TDS may be deducted at double the rate applicable as per the provisions of Income Tax Return.

👉 TDS may be deducted at double the rate applicable as per the provisions of Income Tax Return.

👉 Interest u/s 234A at the rate of 1% pm will be levied.

👉 Penalty u/s 270A may be levied and prosecution may also be initiated.

The above new rule 12AB is applicable for Financial Year 2021-2022 (AY 2022-23)

31/12/2021

Happy

12/10/2021

*Now Cancellation of GST Registration started on the basis of a bank account not updated on the portal within 45 days of GST Registration*

10/10/2021

*GST UPDATES*

WEF 01.10.21, the following changes in rate of GST are implemented:

 Cartons, boxes and cases of corrugated paper and paperboard of 4819 from 12% to 18%.

 Railway items of 8601 to 8608 from 12% to 18%.

 Printing items of 4906 to 4911 from 12% to 18%.

 Waste, pairing and scrap of 3915 from 5% to 18%.

 Ores and concentrates of 2601 to 2610 from 5% to 18%.

 Carbonated beverages of fruit drink or carbonated beverages with fruit juice of 2202 will attract 28%. In addition to GST of 28% also attract compensation cess of 12%.

 Exemption given on air or sea freight in case of export of goods extended up to 30.09.2022.

 Rate of GST on job work (SAC 9989) of printing of goods of Chapter 48 & 49 increased from 12% to 18%.

 18% GST on Temporary or Permanent Transfer or Permitting the Use or Enjoyment of IPR

 5% GST payable on Bio-Diesel supplied to Oil Marketing Companies for blending with High-Speed Diesel

 5% GST payable on Food preparations put up in unit Containers, intended for free distribution to EWS of Society:

 RCM applicable on Menthapiperita Oil Purchased from Unregistered person

 Seeks to exempt CGST on specified medicines used in COVID-19, up to 31st December, 2021.

12/09/2021

FOR FY 2020-2021: ONE PERSON COMPANY-ANNUAL FILING WITH MCA& AGM

Due date for Annual Filing is 27.09.2021, Please File on or before 27.09.2021 to avoid late fee Rs. 100 per day on each form.

Further AGM Provisions under Section 96 of CA, 2013 are not applicable on One Person Company (OPC). AGM Extension will not work for OPC because due date for filing Annual Returns is 180 days from closure of FY not from the date of AGM.
In case you want to conduct AGM voluntary for OPC, you are required to conduct the same before due date of return i.e. 27.09.2021.
AGM extension orders not applicable on OPC and hence OPC can’t conduct their AGM (Voluntary) beyond 27.09.2021.

02/06/2021

Namaskar!

Please find the following GST update:

CGST Notification

CGST Not.16:

Appoints 01.06.2021 as the date on which the provisions of section 112 of the Finance Act, 2021 shall come into force - Retrospective amendment in Section 50 of the CGST Act to provide interest on net cash basis w.e.f. 01.07.2017

CGST Not.17:

Extends the due date for furnishing of FORM GSTR-1 for the tax period May, 2021

CGST Not. 18:

Provide relief of reduced rate of interest for payment of Monthly/Quarterly tax for specified taxpayers and specified tax periods

CGST Not. 19:

Provide waiver of late fees for delay in furnishing returns in FORM GSTR-3B for specified taxpayers and specified tax periods & relief from late fee for delay in furnishing of GSTR 3B returns for July, 2017 to April, 2021 but filed between the period from the 1st June, 2021 to 31st August, 2021

CGST Not. 20:

Capping of late fee for delayed filing of GSTR-1 based on turnover

CGST Not. 21:

Capping of late fee payable for delay in furnishing of FORM GSTR-4 by composition taxpayers

CGST Not. 22:

Capping of late fee payable for delayed furnishing of FORM GSTR-7

CGST Not. 23:

Amends Notification No. 13/2020-Central Tax in order to amend the class of registered persons for the purpose of e-invoice

CGST Not. 24:

Extends specified compliances falling between 15.04.2021 to 29.06.2021 till 30.06.2021 in exercise of powers under section 168A of CGST Act

CGST Not. 25:

Extends the due date for filing FORM GSTR-4 for financial year 2020-21 to 31.07.2021

CGST Not. 26:

Extends the due date for furnishing of FORM ITC-04 for the period Jan-March, 2021 till 30th June, 2021

CGST Not. 27:

Central Goods and Services Tax (Fifth Amendment) Rules, 2021 – Amendment to Rule 26, 36 & 59 - To provide facility of filing GSTR-3B and GSTR-1/ IFF by companies, using EVC instead of DSC for period upto 31st August 2021 + Cumulative application of Rule 36(4) in the return for the period June, 2021 + Extends the due date for furnishing of GSTR-1/ IFF for May, 2021 till 28th June 2021

28/05/2021

✅ *Big Relief to Businessmen*

🥬 *GST_Late_Fees*

🚨 Upper_cap on late fees For *GSTR 3B & GSTR 01*

👉 1. For *NIL Returns* irrespective of the turnover : 💸 *Rs. 500 per return.*

👉 2. For taxpayers having *turnover below 1.5 Cr* in the previous year : 💸 *2000 per return.*

👉 3. For taxpayers having *Turnover 1.5 cr to 5 Cr* : 💸 *5000 per return.*

👉 4. For Taxpayers having *Turnover above 5 Cr* : 💸 *10000 per return.*

🌀 *GSTR 04 (For composition tax payers)*
👉 If tax liability is Nil : 💸 ₹ 500
👉 Otherwise : 💸 ₹ 2000

🍇 For *Form GSTR-7 (TDS Return of GST)* : 💸 Rs.50 per day subject to maximum *Rs.2000 per return.*

🚨 So, Now Late Fees is Rs. 50 per day subject to the Upper Cap.🎩

28/05/2021

⛲ *Today GST Council Meeting Key decisions as follows:*

1) GST Exemption to some COVID-19 supplies till 31st August 2021.

2) A Particular Medicine for Black Fungus also exempted.

3) GoM to be formed to check if further reductions to be given to new items, GoM to submit reports before 8th June.

4) Amnesty Scheme with reduced late fee to be launched for GST Small Taxpayers.

*GST Amnesty Scheme for all Small Taxpayers (MSME) The GST Council is likely to announce an amnesty scheme on late fee in GST return filing to provide a huge relief to small taxpayers- Due to Covid-19 pandemic:-*
*Pending GSTR-3B returns from July-2017 to till April 2021.*
*Amnesty scheme could be from 1st June 2021 till 31st August 2021*

5) Rationalization of Late fee for Small Taxpayers to be applicable to future liabilities.

6) Annual Return form to be rationalized, Govt to amend CGST Rules.

7) *Annual Return* filing to continue to be optional for Small Taxpayers.

8) A Special Session on GST Compensation Cess before 22nd July 2021.

02/04/2021

Attention all IEC Holders

In the recent Notification No. 28/2015-2020 dated 12th February 2021, DGFT make it mandatory for all IEC holders to ensure that the details in its IEC is updated electronically every year, during April – June Period. In case where there are no changes in IEC details same are also needs to be confirmed online.

Importer-Exporter Code is a Unique 10 Digit Registration number issued by Directorate General of Foreign Trade (“DGFT”) to every person who is engaged into Import or Export of Goods. In case of import or export of Service, IEC is required only if the service provider is availing any of the benefits given under Foreign Trade Policy.

Gist of changes made with reference to IEC are as follows:

1. Application of amendment of e-IEC to be made online
As per existing text, the process of filing an application for issuance of e-IEC is completely online. Provisions of FTP are amended to provide that the process of amendment in e-IEC is also completely online.

2. Annual updation of e-IEC
In the recent Notification No. 28/2015-2020 dated 12th February 2021, DGFT make it mandatory for all IEC holders to ensure that the details in its IEC is updated electronically every year, during April – June Period. In case where there are no changes in IEC details same are also needs to be confirmed online.

3. Deactivation of e-IEC in case no annual updation is not carried out.
If any person fails to complete updation process within a given time period every year then his IEC shall stand deactivated. However, the same shall be re-activated on successful completion of the updation process. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP.

4. Deactivation of e-IEC in case of scrutiny
Any IEC can be flagged by the system for scrutiny purpose. If any IEC is picked up for scrutiny, then the IEC holder should timely address the risk flagged by the system. If the same is addressed in a timely manner, then IEC shall be deactivated.

5. Deletion of procedural provisions related to issuance of e-IEC.
In order to make complete procedure online, Provisions given under Para 1.11(b) to (d) have been deleted. Under existing provision, procedure of issuance of e-IEC is given under Para 1.11 of FTP (2015-2020). Following provisions are given under Para 1.11 (b) to (d):

Application filed for allotment of e-IEC shall be processed by the Regional Authority (RAs) of DGFT online and a digitally signed e-IEC shall be allotted within 2 working days.
In case application is incomplete or otherwise ineligible, the same shall be rejected and a Rejection letter/email would be sent to the applicant with reasons for rejection.
Application for e-IEC can also be made from the eBiz platform (https://www.ebiz.gov.in).

31/03/2021

Brief synopsis of Amendment made by MCA effective from 1st April 2021

Schedule III of the Companies Act 2013 contains the general instructions for preparation of Balance Sheet and Statement of Profit and Loss of a Company.

Following are the changes made in the financials/ notes to accounts on account of amendments in Schedule III brought about by MCA:

1. Now companies have to round off the figures appearing in the financial statements, hitherto it was optional. Further, the criteria for rounding off shall be based on “total income” in place of “turnover”.

2. Company shall disclose Shareholding of Promoters.

3. Current maturities of Long term borrowings shall be disclosed separately.

4. Trade Payables ageing schedule to be given.

5. Trade Receivables ageing schedule to be given.

6. Security deposits shall not be disclosed under ‘Long term loans and advances’ but disclosed under ‘Other non current assets’.

7. The company shall disclose the reason of utilization of funds for the purposes other than for which they were borrowed and shall also disclose the purposes for which the funds were utilised.

8. Company needs to disclose if the books of accounts are tallied with the quarterly or monthly returns filed with banker in cases where company has borrowed funds from banks on the basis securities of current assets, or else a separate reco statement needs to be provided.

9. The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share.

10. In cases where revaluation has been done in case of Property Plant and Equipment, the company shall disclose if the valuation was done by registered valuer.

11. Disclosures to be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and related parties (loans given to promoters as a % of total loans)

12. For Capital-work-in progress, ageing schedule shall be given

13. For Intangible assets under development, aging schedule to be given.

14. Disclosure of any proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition)Act, 1988 to be made.

15. Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, details to be given.

16. Disclosure of any transactions with companies struck off

17. Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.

18. Following Ratios to be disclosed:

(a) Current Ratio,(b)Debt-Equity Ratio,(c)Debt Service Coverage Ratio, (d) Return on Equity Ratio,(e) Inventory turnover ratio,(f)Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j)Return on Capital employed, (k) Return on investment
(xv) Disclosure of Utilisation of Borrowed funds and share premium to be given
Explanation is required if there’s change of more than 25% as compare to preceding financial year.

19. Further disclosures shall be made where the company has received funds from any persons or entities including foreign entities to further lend or invest or provide any guarantee, security to third parties.

20. Where a scheme of arrangement has been approved, disclosure shall be made of the effect of the same on the books of accounts and any deviation from the accounting standards for the same.

23/03/2021

🌺 *Few important Company Compliance Forms List For F.Y. 2020-21*

As a Financial Year end is approaching on 31st March, 2021. A company management is required to make sure to comply various compliances on time from *1st April, 2021.*

The Companies Act 2013 read with relevant rules governs various provisions which a company is required to comply. And omitting to file any of mandatory compliance will lead to levy of heavy penalty/fees on company as well as Officer in defaults. Here, it has been prepared a compiled list of mandatory compliances to be done by company after 1st April, 2021.

👉 1) *E-form MSME FORM I*
Applicability: All companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed forty-five (45) days from the date of acceptance or the date of deemed acceptance of the goods or services.

⏰ Due date for filing: By *31st October* for the period from April to September and by 30th April for the period from October to March.

🚨 *Penalty for Non-Compliance*: the company and every officer of the company who is in default shall be liable to a penalty of twenty thousand rupees and in case of continuing failure, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of three lakh rupees.

👉 2) *E-FORM DIR-3 KYC*
Applicability: Every individual who has been allotted a Director Identification Number (DIN) as on 31st march of a financial year.

⏰ Due date for filing: It required to filled on or before *30th April* of immediate next financial year. For example, the Directors having DIN on or before 31st March, 2021 are required to file DIR-3 KYC on or before 30th April, 2021.

🚨 Penalty for Non-Compliance: 1) The DIN shall be inactive and the DIN holder will not eligible to appoint or resign in/from any company.

2) After 30th April, the penalty for filing DIR-3 KYC will be flat INR Five thousand 5000/-.

👉 3) *E-FORM DPT-3*
Applicability: 1) Annual return of Deposits by Companies who have accepted deposits.

2) Annual return particulars of transaction not considered as deposit or both by every company other than Government company.

⏰ Due date for filing: It required to filled on or before the *30th day of June*, of every year, file with the Registrar.

🚨 Penalty for Non-Compliance: Every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years and with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees.

👉 4) *E-FORM AOC-4*
Applicability: Form for filing financial statement and other documents with the Registrar for Previous Financial Year ended.

⏰ Due date for filing: It required to filled within *thirty (30) days from the Date of Annual General Meeting (AGM)*, of every year, file with the Registrar.

🚨 Penalty for Non-Compliance: 1) The Company is required to Pay additional duty of INR Hundred (100/-) per days after the expiry of Thirty (30) days from the Date of Annual General Meeting (AGM).

2) The managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.

👉 5) *E-FORM MGT-7/7A*
Applicability: Form for filing annual return by every company.

⏰ Due date for filing: It required to filled within sixty *(60) days from the Date of Annual General Meeting (AGM)*, of every year, file with the Registrar.

🚨 Penalty for Non-Compliance: 1) The Company is required to Pay additional duty of INR Hundred (100/-) per days after the expiry of Sixty (60) days from the Date of Annual General Meeting (AGM).

2) If any company fails to file its annual return before the expiry of the period such company and its every officer who is in default shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default.