Tax & Corporate Updates August 2020

Compliance Calendar Financial Year wise affected due to COVID-19 for September-20

*FY 2018-19 –*
*INCOME TAX*
30th Sept 2020- For assesse who has not filled their return or audit for FY 2018-19 last date of filling return

*FY 2020-21 –*

*INCOME TAX*
07th September 2020- TDS deducted /TCS collected for the month of August, 2020
15th September 2020- Advance tax second installment for FY 20-21 (AY 21-22)
30th September 2020- furnishing of challan-cum-statement in respect of tax deducted under section 194-IA/194-IB/194M for the month of August, 2020
31st March 2021- TDS/TCS Quarterly return for Q1 and Q2 ending on 30.06.2020 and 30.09.2020
31st March 2021- Date for linking of Aadhaar with PAN

*GST*
Taxpayer having aggregate turnover more than Rs. 5cr in preceding FY

-*GSTR-3B*
20th Sept 2020-Due date of filling GSTR-3B for the month of August- 2020

-*GSTR-1*
11th Sept 2020-Due date of filling GSTR-1 for the month of August- 2020

Taxpayer having aggregate turnover upto Rs. 5cr in preceding FY

-*GSTR-3B*
12th Sept 2020-Due date of filling GSTR-3B for the month of May 2020
23th Sept 2020-Due date of filling GSTR-3B for the month of June 2020
27th Sept 2020-Due date of filling GSTR-3B for the month of July–2020
22nd Sept 2020-Due date of filling GSTR-3B for the month of August- 2020

GSTR-3B July-2017 to July-2020 if filed upto 30/9/2020.
Late Fees Maximum Rs 500/- per Return, Late Fees NIL for NIL Returns.

-*ANNUAL RETURN /AUDIT REPORT*
30th Sept 2020- GSTR-9/9A/9B Annual return for FY 2018-19.
30th Sept 2020- GSTR-9C Audit Report for FY 2018-19

*Corporate compliance*
29th Sept 2020- Due date for applying for extension of AGM in GNL -1, Kindly note due date of AGM is 30.09.2020 for FY 19-20
30th Sept 2020- Due date of filing of DPT-3 (deposit and loans details)
30th Sept 2020- Due date of updating KYC of Director in MCA records.

*ESI/PF*
15th September 2020- Due date for payment of Provident Fund, ESI contribution for employers who have paid wages to their employees for August 2020.

*PROFESSIONAL TAX*
30th September 2020- Due date for payment of PT for the month of August where tax liability is more than Rs.100,000/-.

*NOTE:*
1. Vivaad Se Vishwas Scheme extended to 31.12.2020 (without additional 10% of tax)
2. MCA – moratorium from 01.04.20 to 30.09.20 – there shall be no additional fees for late filings.
3. Revised CARO to get applicable from FY 20-21 instead of FY 19-20
4. For newly incorporated companies – Commencement of business is to be filed within 6 months, which is now extended for another 6 months.
5. DIN holders tagged as ‘Deactivated’ have an extended time of up to 30th September 2020 for filing DIR-3KYC/DIR-3 KYC-Web, without fees of Rs 5,000. Companies marked as “ACTIVE non-compliant” have got extended time of up to 30th September 2020 to file eForm ACTIVE without fees of Rs 10,000.
6. Due date of filing of Income tax return for FY 19-20 (AY 20-21) for all assessee is 30/11/2020 and due date for tax audit report filing is 31/10/2020.
7. Change jn definition of MSME w.e.f 01.07.2020
Micro- Investment < 1Cr & Turnover <5 Cr
Small- Investment < 10Cr & Turnover <50 Cr
Medium- Investment < 50Cr & Turnover <250 Cr
8. Unlock scheme 4 issued by Maharashtra government. Applicable from 2.9.20
9. For waiving bank interest under moratorium case decision still pending in supreme court.

You must have hear about Aadhaar Authentication requirements for GST Registration. Let’s take a deep insight of this:

Aadhaar Authentication process has been introduced, for the persons applying for GST registration as Normal Taxpayer/Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc, in Form GST REG 01 (refer Notification No 62/2020-CT dt 20.08.2020 ).

Under this, Individuals, Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of an Hindu undivided family, applying for new registration, can opt to undergo e-KYC authentication of their Aadhaar number.

Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails in validation, would be subjected to site verification by the tax department. However, Tax authority based on the documents produced can grant registration.

Timelines for grant of registration are:
✓✓In case of successful authentication of Aadhaar, registration will be deemed approved within 03 working days
✓✓ If Aadhar authentication is not opted for or if authentication fails in validation and no SCN is issued within 21 days by tax official, registration will be deemed approved
✓✓Tax Officer can issue SCN within the period specified for grant of registration, like in cases of successful Aadhar authentication i.e. 03 working days, or in cases when taxpayer do not opt to provide Aadhaar or when Aadhar authentication fails i.e. 21 working days. Applicants can submit their reply within 07 working days from issue of SCN Important points while opting for Adhaar authentication is as follows:

✓✓Once registration application is submitted, an authentication link will be shared on GST registered mobile numbers and email ids mentioned in the GST application

✓✓On clicking the verification link, a window for Aadhaar Authentication will open where they have enter Aadhaar Number and the OTP received by them on the mobile number linked with Aadhaar

✓✓Taxpayer need to complete Aadhaar authentication of all Promoters/ Partners/ Authorized Signatories/ Karta etc. as mentioned in the application to avail this option

✓✓Applicant can access the link again for authentication by navigating to My Saved Applications > Aadhaar Authentication Status > RESEND VERIFICATION LINK

✓✓Persons already registered on GST portal are not required to undergo Aadhar authentication at this stage

✓✓Persons who are not resident /citizen of India are exempted from the Aadhaar authentication processImport data in GSTR-2APosted On: 29 AUG 2020 5:12PM by PIB DelhiTwo new tables have been inserted in GSTR-2A for displaying details of import of goods from overseas and inward supplies made from SEZ units / SEZ developers. Taxpayers can now view their bill of entries data which is received by the GST System (GSTN) from ICEGATE System (Customs). The present data upload has been done on a trial basis to give a feel of the functionality and to get feedback from the taxpayers on the same.Currently, the system is displaying data up to 6th August, 2020. Further, taxpayers may note that system is currently does not contain import information for bill of entries filed at non-computerized ports (non-EDI ports) and imports made through courier services/post office. This will be made available shortly.It may also be noted that amendment information made in the details of bill of entries will also be provided soon.Taxpayers are requested that they share their feedback through raising a ticket on the self-service portal (https://selfservice.gstsystem.in/)

Income Tax Department to intimate taxpayers under scrutiny about faceless assessment

Delhi : The income tax department will soon start sending out intimation to assessees undergoing scrutiny that such cases would now be handled under faceless assessment, a tax official said on Friday. CBDT Additional Commissioner Jaishree Sharma also said that domestic transfer pricing cases too will be covered under the faceless assessment mechanism. Asked whether the previous notices still stand valid, Sharma said, “Previous notices will not become redundant. First, an intimation would be sent out that your case would now be assessed under faceless assessment scheme and if the Assessing Officer of the Assessment Unit feels that he needs some more information, he will send fresh (notice) under 142(1).” A Section 142(1) notice is sent to an assessee to inquire about details and documents before making assessment under the Income Tax Act. Speaking at a webinar organised by industry body PHDCCI, Sharma said reassessment cases would also be part of the faceless scheme. “So all the 148 cases that were going on, they have been transferred to the faceless assessment scheme and NeAC will be sending out intimation in all such cases which would now be assessed under the faceless assessment scheme. So by September 15 or before that, you can expect an intimation from NeAC,” Sharma said.

Now, businesses can get GST registration within 3 days! Here’s how
Delhi : Businesses which will provide Aadhaar number while applying for registration under the Goods and Services Tax will get the approval in three working days. The Central Board of Indirect Taxes and Customs (CBIC) last week notified Aadhaar authentication for GST registration with effect from August 21, 2020. The notification also provides that in case businesses do not provide Aadhaar number, then GST registration would be granted only after physical verification of the place of business.

CBIC makes video conferencing mandatory for hearings in GST appeal cases
Delhi : The CBIC has asked GST field offices to conduct hearings in GST appeal cases via video conferencing for their expeditious disposal while ensuring social distancing. In April, the Central Board of Indirect Taxes and Customs (CBIC) had issued guidelines for conducting personal hearing in virtual mode for appeals under Customs Act, and erstwhile excise and service tax related disputes. In a letter to Principal Chief Commissioners, the CBIC said the feedback received from trade and field formations on this indicated that the initiative has helped in speeding up passing of adjudication and appellate proceedings, saving cost of travel and time, and critically ensuring social distancing in these challenging times.

Aadhaar authentication for new GST registration is active from August 21: Official
Delhi : Aadhaar authentication for new goods and services tax (GST) registration has been activated from August 21, which will enhance ease of doing business, a senior official said. For those opting for Aadhaar authentication, new GST registration will be issued within three working days and would not need to wait for physical verification. However, those not opting for Aadhaar authentication for GST registration would be granted it only after physical verification of the place of business or documentary verification which may take up to 21 working days or more if notice is issued, a senior official said.

Single e-compliance window soon: MCA initiates discussions with RBI, Sebi, DPIIT on transfer of data
Delhi : The government is looking to develop a single online compliance framework for India Inc to enable companies to comply with different regulatory requirements at one go, an official privy to the development said. “The idea is to reduce compliance burden,” a senior government official told ET. The corporate affairs ministry has initiated discussions with various regulators including the Reserve Bank of India, Securities and Exchange Board of India (Sebi), and the Department for Promotion of Industry and Internal Trade, on the possibility of creating a single platform or compliance forms with common data sources, the official said. Coming after other key initiatives such as one nation one tax, and faceless assessment under income tax, the move is expected to significantly boost ease of doing business in the country.

IT Department to map digital behaviour of taxpayers to create profiles
The income tax department will map the digital behaviour of taxpayers to create their profiles under faceless scrutiny assessment in electronic mode, a senior official said, as all interactions of a taxpayer with the tax authority will be logged.Faceless assessment will be a complete shift from the earlier practice where taxpayers could sit with the assessing officer and resolve issues at one go, following a single notice of demand, and even seek adjournment for hearings over telephone calls.“If I give you a requisition for five things, you (taxpayer) respond to one, and take adjournment to respond to the other, that’s assessee behavior that is being mapped, which in the manual days was not being mapped,” Smita Jhingran, chief commissioner of income tax at Regional e-Assessment Centre, Delhi, said on Friday at a webinar organised by industry body FICCI and Dhruva Advisors.“A lot has changed. Now you’re leaving a digital footprint of everything …,” she said in response to a question.

Towards a faceless, fair and fearless tax system — a radical reform India needed
Delhi : Prime Minister Narendra Modi’s move to reward taxpayers by introducing the taxpayers’ charter, which is a part of the broader reform agenda, would usher in a transparent tax environment in the country. In the Union Budget 2019, the finance minister had announced the launch of the faceless e-assessment scheme, whereby there would be total removal of any interface between the assessing official and the assessee. This would bring in several advantages to the tax assessee. The PM also informed that the number of people filing returns has gone up by 25 million in the last 6-7 years. With this new initiative, the government aims to widen the tax net from the current 15 million.

DOWNLOADING DOCUMENT-WISE DETAILS OF TABLE 8A OF FORM GSTR-9

A facility has been provided to the taxpayers to download document wise details of Table 8A of Form GSTR-9, from the portal in excel format. This can be done by using a new option of ‘Document wise Details of Table 8A’ given on the GSTR-9 dashboard, from Financial Year 2018-19 onwards. This will help the taxpayer in reconciling the values appearing in Table 8A of Form GSTR 9, thus facilitate filling the Form GSTR 9.

Table 8A of Form GSTR 9 is populated on basis of documents in filed Form GSTR-1 or Form GSTR-5 of the supplier. Thus, all documents which are present in GSTR-2A (Table 3 & 5), will not be available here, as documents which are in uploaded or submitted stage in Form GSTR 1 or 5, are not accounted for credit in table 8A of Form GSTR 9.

This excel download will address issues like:

Figures of Input Tax Credit (ITC), as pre-populated in table 8A of GSTR-9, not matching with the figures, as appearing in their Form GSTR-2A;

To view details of documents that are auto-populated from GSTR-2A, to table 8A of Form GSTR-9

Steps to Download: To download, navigate to Services > Returns > Annual Return > Form GSTR-9 (PREPARE ONLINE) > DOWNLOAD TABLE 8A DOCUMENT DETAILS option.

Downloaded excel file will contain:

GSTIN, Trade Name or Legal Name of the supplier

The period (month) in which the document featured in GSTR-2A of the recipient

Document wise details of B2B (invoices), B2BA (amended invoices), CDNR (credit and debit notes) and CDNRA (credit and debit notes amended), filed by supplier in their Form GSTR-1/GSTR-5, in separate Excel sheets

Details from only Form GSTR-1/GSTR-5, which are filed till 31st October of subsequent year

In case of amendments, only latest value will be accounted for

Field showing “ITC available for Table 8A” – “Yes” or “No”

If ITC is not available, a column named ‘Reason for Non-accounting’ with reasons for non-accounting in Table 8A

Some other Important Points:

Excel download option will be available once GSTR-9 tab for filing is enabled

Generated excel will be downloaded as a zip file, if number of documents are less

Generated excel can be downloaded in multiple parts, if number of documents are large

Data saved/submitted in Form GSTR-1/5 will be shown in Form GSTR-2A, but will not be shown in downloaded excel file of Table 8A of Form GSTR-9

Income Tax surveys to be conducted only by investigation wing, TDS directorate: CBDT

Delhi : The income tax surveys to collect information for scrutiny assessment will be undertaken only by the investigation wing and the tax deducted at source (TDS) directorate with effect from Thursday, the Central Board of Direct Taxes (CBDT) has said. In an order, the CBDT said officers in Directorate General of Income Tax (DGIT) (Investigation) and Principal Commissioner of I-T/Chief Commissioner of I-T (TDS) “only and exclusively” shall be the competent authority for approving survey actions with effect from August 13, 2020. “The survey action u/s 133A of the Act being an intrusive action, it is expected that the same should be carried out with utmost responsibility and accountability,” the CBDT said, adding that with faceless assessment the department is moving towards minimal interface with taxpayers.

Income Tax officers to be fair, courteous; taxpayers should be honest, compliant: Charter

Delhi : The tax department has committed to treat every taxpayer as honest, unless proven otherwise, and provide fair, courteous and reasonable treatment, according to the taxpayers’ charter adopted on Thursday. The charter also expects taxpayers to pay taxes on time and be honest and compliant. Prime Minister Narendra Modi launched the platform ‘Transparent Taxation Honoring the Honest’ which provides for launch of faceless assessment and adoption of a taxpayers’ charter which defines the commitment of the tax department and the expectation from the taxpayers. The tax officers will now be committed to a 14-point charter, which includes collecting “only the (tax) amount due” as per the law, while taxpayers would have to be “responsible” and fulfill six-point expectations of the I-T Department, including being honest and compliant.

Nirmala Sitharaman says any Income-Tax related communication not generated from computer will be invalid

Delhi : Finance Minister Nirmala Sitharaman today said that any communication from the Income Tax Department without a computer-generated DIN, be it a notice, letter, order, summon, or any other correspondence will be invalid and would not stand in the eyes of law. In the event of the launch of the platform ”Transparent Taxation – Honoring the Honest” by Prime Minister Narendra Modi, FM Sitharaman added that the faceless tax scrutiny assessment and appeal would help ease the compliance burden of taxpayers and increase fairness and objectivity in the tax system. Calling today as a landmark day in the history of tax administration, she further said that the vision of PM Modi is to empower the taxpayers, to provide a transparent system, and to honour the honest taxpayers.

The Central Board of Direct Taxes (CBDT) has revised the ‘E-assessment Scheme, 2019’ notified on September 12, 2019. Now, e-assessment scheme shall be called Faceless Assessment. Now, the National e-Assessment Centre shall intimate the assessee for conduct of faceless assessment in case wherein notice has been issued by AO. The Board has also extended its scope to cover best judgment assessments.