DIRECT TAXES UPDATES
Recent circulars/ notifications/ rules/ clarifications/News
♦ CBDT issues Notification extending various Income Tax due date extended to the 30th September, 2021) (including for imposition of penalty under Chapter XXI, Linking of Aadhhar with PAN, for assessment or reassessment completion under section 153 or section 153 B the Income-tax Act. Notification No. 74/2021-Income Tax [S.O. 2580(E)] Dt:- 25/06/2021
♦ Last date of payment under Vivad se Vishwas extended to 31st August 2021. Notification No. 75/2021-Income Tax [S.O. 2581(E)] Dt:- 25/06/2021
♦ Compliance Check Functionality for Section 206AB & 206CCA available on income tax portal for imposed higher TDS/TCS rate on the “Specified Persons (effective from 1st July 2021). Notification No. 01 of 2021-Income Tax- DGIT Dt:- 22/06/2021.
♦ CBDT amends TDS Rule 31A & Annexures to Form 26Q, 27EQ, 27Q (TDS returns) Notification No 71/2021-Income Tax [G.S.R. 395(E)] Dt:- 08/06/2021.
Income Tax Compliance calendar – July 2021
| to remember | |
| Due Date | Particulars |
| 7th July 2021 | Due date for deposit of Tax deducted/collected for the month of June, 2021.
Due date for deposit of TDS for the period April 2021 to June 2021 when Assessing Officer has permitted quarterly deposit of TDS under section 192, 194A, 194D or 194H |
| 15th July 2021 | -Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of May, 2021.
-Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of May, 2021. -Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of May, 2021. -Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending June, 2021. -Quarterly statement of TCS deposited for the quarter ending 30 June, 2021. -Upload the declarations received from recipients in Form No. 15G/15H during the quarter ending June, 2021. -Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of June, 2021. -Certificate of tax deducted at source to employees in respect of salary paid and tax deducted during Financial Year 2020-21. -Statement to be furnished (in Form No. 64C) by Alternative Investment Fund (AIF) to units holders in respect of income distributed during the previous year 2020-21. |
| 31th July 2021 | -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2021.
-Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA for the month of June, 2021. -Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB for the month of June, 2021. -Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194M for the month of June, 2021. -Quarterly statement of TDS deposited for the quarter ending June 30, 2021. -Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2021. -Statement in Form no. 10 to be furnished to accumulate income for future application under section 10(21) or 11(1) (if the assessee is required to submit return of income on or before July 31, 2021) -Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2020-21 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2021.) |
Important cases decided
♦ Income declared on proportional receipt basis cannot be questioned (DCIT Vs Monster.Com (India) Private Limited (ITAT Hyderabad) Dt:- 23/06/2021
♦ Income actually accrued is taxable not the receipt (CIT Vs T. Jayachandran (Madras High Court) 21/06/2021
♦ Reassessment Valid if AO had ‘reason to believe’ income chargeable to tax escaped assessment Valmik Thapar Vs ACIT (ITAT Delhi) Dt:- 11/06/2021
♦ No disallowance u/s 36(1)(iii) as borrowed fund had direct nexus with utilization towards interest-bearing advances ACIT Vs Sh. Parminder Singh Kalra (ITAT Delhi)
♦ Depreciation allowable despite claim of entire cost of Asset as application of Income by Trust CIT Vs Ramananda Adigalar Foundation (Madras High Court) Dt: 21/06/2021.
INDIRECT TAXES UPDATES
GST
GST Compliance Calendar – Returns to be filed in the M/O July 2021
| GST Return Form Name | Filing Period | Due Dates in July 2021 |
| GSTR-1 (Outward return) | Monthly (June’2021) | 11th July 2021 |
| GSTR 3B (Tax summary return) | June ‘2021 | 20th July 2021 ( In case Aggregate turnover more than or equal to Rs 5 crore in the previous Year)
22nd / 24thJuly 2021 (in case Aggregate turnover less than or equal to Rs 5 crore in the previous financial year registered in X /Y category respectively. |
| GSTR 5A (online information & data access) | June ‘2021 | 20th July 2021 |
| GSTR 05 (by non-taxable resident persons ) | June ‘2021 | 20th July 021 |
| GSTR 06 (ISD) | June ‘2021 | 13thJuly 2021 |
| GSTR 07 (TDS) | June ‘2021 | 10thJuly 2021 |
| GSTR 08 (TCS) | June ‘2021 | 10thJuly 2021 |
44th GST council meeting on 12th June 2021, GST rates have been reduced on COVID 19 related material including Ambulances. GST on ambulances will be reduced to 12% from 28%. (Notification no. 5/2021 dated 14th June 2021)
Major Decisions of 43rd GST Council Meeting
1. The tax rate on ventilators, medical-grade oxygen, COVID-19 testing kits, oxygen concentrators, and Bi PAP machines has been brought down to 5 percent from 12 percent at present.
2. The GST on anti-coagulants like Heparin, high flow nasal cannula (HFNC) device, and pulse oximeters have been reduced to 5 percent from 12 percent at present.
3. The GST on hand sanitizers and temperature check equipment has been reduced to five percent from 18 percent at present.
4. 5% GST on vaccines will stay.
5. “GST rates have been decided for 4 categories of products- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other COVID19 related relief material.
6. GST Council approved all recommendations of GoM on rate rationalization. GST on ambulances reduced to 12 percent – applicable up to 30th Sep’2021
Cases Law
The inherent loss in a manufacturing process is inherent and such losses are not contemplated by Section 17(5)(h) of the CGST Act. Thus, reversal of ITC is not required – ARS Steel & Alloy International Private Limited v. State Tax Officer, 2021-VIL-484-MAD
Race club liable only on commission received for service rendered through totalisator – CGST Rule 31A(3) q1uashed- (Bangalore Turf Club Limited v. State of Karnataka – Order dated 2 June 2021 in Writ Petition No. 11168/2018 (T-RES), Karnataka High Court)
Refund claim cannot be denied due to technical glitches on GSTN portal: (Mehar Tex v. Commissioner –2021 VIL 392 MAD])
Appeal – Limitation – Liberal approach to be followed during Covid (Shree Jagannath Traders v. Commissioner – 2021 VIL 454 ORI)
No intention to evade just because validity of e-way bill not extended- (Satyam Shivam Papers Pvt. Ltd. v. Asst. Commissioner – 2021 VIL 448 TEL)
TDS under GST – Invoice when and when not to be equated to contract – [Udupi Nirmiti Kendra – 2021 TIOL 139 AAR GST]
Customs
Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 – Amendments effective 2 February 2021 explained: The CBIC has issued a detailed Circular to explain the amendments in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 which have come into effect from 2 February 2021. Circular No. 10/2021-Cus., dated 17 May 2021 while highlighting that now 100% outsourcing for manufacture of goods on job-work basis has been permitted for importers who do not have any manufacturing facility at all, also states that now option is available to the importers to import capital goods for a specified purpose and after use, clear the same on payment of the differential duty and interest, at a depreciated value (Circular No. 10/2021-Cus., dated 17 May 2021)
Cases Law
Quantitative import restrictions – Goods imported in excess of cap are prohibited goods: [Union of India v. Raj Grow Impex LLP – 2021 TIOL 187 SC CUS LB]
Excise & Service Tax
Retrospective exemption and refund of service tax – Tax paid utilising Cenvat credit also refundable – (Shanti Construction Co. v. Commissioner – Final Order No. A/2244/2021, dated 18 June 2021, CESTAT Ahmedabad)
Interest on delayed refund of revenue deposit – CESTAT directs interest @ 12% – (Parle Agro Pvt. Ltd. v. Commissioner – 2021 VIL 214 CESTAT ALH CE)
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With Warm Regards & Jai Hind
CMA Rakesh Bhalla | 9779010685 | nancybhalla@yahoo.co
Information Source – M/s LKS, CBIC.gov.in., various internet websites including Income tax website, Dailyhunt, Deloitte, livemint.com, related links and various notifications, circulars, orders, press releases and other sources-many thanks to all.
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Very Nice Article. Updated Knowledge.