DIRECT TAXES UPDATES
Recent circulars/ notifications/ rules/ clarifications/News
♦ Government extends time for payment under VSV (Vivad Se Vishwas Scheme) to 30.06.2021 including timelines for assessment (Notification No. 39/2021-Income Tax/S.O. 1704(E)& Notification No. 38/2021-Income Tax/S.O. 1703(E) dated 27/04/2021)
♦ CBDT vide Notification No. 37/2021-Income Tax Dated: 26th April, 2021 amends rule 2DB which deals with Other conditions to be satisfied by the pension fund and substitutes Form No. 10BBA (Notification No. 37/2021-Income Tax/G.S.R. 291(E) dated 26/04/2021)
♦ CBDT notifies Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income (Notification No. 2 of 2021-DGIT dated 20/04/2021)
♦ CBDT notifies Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Dividend income (Notification No. 1 of 2021-DGIT dated 20/04/2021)
♦ CBDT notifies new Provisions of DTAA between India & Iran (Notification No. 29/2021-Income-tax [S.O. 1442(E).] dated 01/04/2021)
♦ CBDT issues New reporting requirements in Form 3CD (Notification No. 28/2021 [G.S.R. 246(E).] dated 01/04/2021)
Income Tax Compliance calendar – May 2021
| Things to remember | |
| Due Date | Particulars |
| 7th May 2021 | Due date for deposit of Tax deducted/collected for the month of April, 2021. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan |
| 15th May 2021 | Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of March, 2021
-Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of March, 2021 -Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of March, 2021 -Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of April, 2021 has been paid without the production of a Challan -Quarterly statement of TCS deposited for the quarter ending March 31, 2021 -Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes have been modified after registering in the system for the month of April, 2021 |
| 30th May 2021 | -Submission of a statement (in Form No. 49C) by non-resident having a liaison office in India for the financial year 2020-21
-Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of April, 2021 -Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194M in the month of April, 2021 -Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB in the month of April, 2021 -Issue of TCS certificates for the 4th Quarter of the Financial Year 2020-21 -Return of tax deduction from contributions paid by the trustees of an approved superannuation fund -Application for allotment of PAN in case of non-individual resident person, which enters into a financial transaction of Rs. 2,50,000 or more during FY 2020-21 and hasn’t been allotted any PAN -Application for allotment of PAN in case of person being managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person referred to in Rule 114(3)(v) or any person competent to act on behalf of the person referred to in Rule 114(3)(v) and who hasn’t allotted any PAN |
Important cases decided
♦ No addition for Transfer Pricing Adjustment related to Specified Domestic Transaction (Sobha City Vs ACIT (ITAT Bangalore)
♦ Salary for services rendered in Foreign Countries cannot be taxed in India for non-production of TRC (Tax residency Certificate) (Sri Vamsee Krishna Kundurthi Vs ITO (International Taxation) (ITAT Hyderabad))
♦ DTAA exemption cannot be denied merely for non-availability of Tax residency Certificate (Ranjit Kumar Vuppu Vs ITO (ITAT Hyderabad)
♦ Exchange difference as on date of Balance sheet is allowable (HSBC Electronic Data Processing India P Ltd Vs ACIT (ITAT Hyderabad)
♦ Issuance of notice under section 143(2) is not mandatory for completing search Assesment (B. Kubendran Vs DCIT (Madras High Court))
♦ Assessment order passed against amalgamated company is without jurisdiction (Teleperformance Global Services Private Limited Vs Acit (Bombay High Court)
♦ Foreign currency is not a commodity for section 43(5) of Income Tax Act (ACIT Vs M/s. Lifestyle International (P) Limited (ITAT Bangalore)
♦ No disallowance can be made merely for investment in Penny Stock (Shri Kamal Kishore Soni Hyderabad Vs ITO (ITAT Hyderabad)
INDIRECT TAXES UPDATES
GST
GST Compliance Calendar – Returns to be filed in the M/O May 2021
| GST Return Form Name | Filing Period | Due Dates in May2021 |
| GSTR-1 (Outward return) | Monthly (April 2021) | 11th May 2021 |
| GSTR 3B (Tax summary return) | April ‘2021 | 20th May 2021 (In case Aggregate turnover more than or equal to Rs 5 crore in the previous Year)
22nd/24thMay 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) | April ‘2021 | 20thMay 2021 |
| GSTR 05 (by non-taxable resident persons ) | April’2021 | 20thMay021 |
| GSTR 06 (ISD) | April’2021 | 13thMay 2021 |
| GSTR 07 (TDS) | April’2021 | 10thMay 2021 |
| GSTR 08 (TCS) | April2021 | 10thMay2021 |
Dynamic QR Code for B2C supplies – Penalty for non-compliance waived till 30 June 2021: Waiver of penalty for non-compliance of the Dynamic QR Code provisions has been extended for the period from 1 December 2020 till 30 June 2021, subject to the condition that the person liable to impleme nt such code complies from 1 July 2021. It may be noted that earlier penalty was waived for such non-compliance for the period from 1 December 2020 to 31 March 2021, subject to the condition that the said person complies from 1 April 2021. Notification No. 89/2020-Central Tax, dated 29 November 2020 has been amended for this purpose. (Notification No. 6/2021-Central Tax, dated 30th March 2021.
Cases Law
Section 74(5) not a statutory sanction for amount collected prior to final determination of liability: (Shrinandhidhall Mills India Private Limited v. Senior Intelligence Officer – 2021 VIL 271 MAD)
Recovery of interest on delayed payment of tax – Form DRC-07 and not DRC-01 to be issued: (Rajkamal Builder Infrastructure Private Limited v. Union of India – 2021 VIL 240 GUJ)
Mere existence of some discrepancies cannot lead to conclusion of undisclosed turnover: (Jai Maa Jwalamukhi Iron Scrap Supplier v. State of Uttar Pradesh – Judgement dated 17 March 2021)
Debit note is always connected to invoice – [In RE: I-Tech Plast India Pvt. Ltd. – 2021 VIL 205 AAR]
Customs
India-Japan CEPA – Deeper tariff concessions notified: Effective rate of duty on certain imports from Japan under the India-Japan Comprehensive Economic Partnership Agreement has been reduced to ‘zero’, except for all goods covered under Tariff Item 84082020 and sub-heading 870840 of the Customs Tariff. Notification No. 69/2011-Cus. has been amended for this purpose by Notification No. 20/2021-Cus, dated 30 March 2021 with effect from 1 April 2021.
India-Mauritius CECPA effective from 1 April 2021 – Rules of Origin and tariff notification notified: The CBIC has notified the Customs Tariff (Determination of Origin of Goods under Comprehensive Economic Cooperation and Partnership Agreement between the Republic of India and the Republic of Mauritius) Rules, 2021. These rules have come into force from 1 April 2021 and will govern the preferential rate of duty for import of goods from Mauritius to India Notification No. 38/2021-Cus (N.T.), dated 31 March 2021 has been issued for the purpose. Further, Notification No. 25/2021-Cus., dated 31 March 2021 provides for effective rate of duty for specified imports originating from Mauritius
Cases Law
Bill of Entry amendment in manual form when ICES portal not supports such amendment: (Hindustan Unilever Limited Vs Union of India (Madras High Court); W.P. No. 34627 of 2019; 05/03/2021)
Refund not deniable for delay in filing when vital documents seized by DRI: (Kaamdaa Impex Vs Commissioner of Customs (Madras High Court); W.P. No. 24269 of 2019; 16/03/2021)
Excise & Service Tax
Cenvat credit available on workmen compensation insurance policy – (Dharti Dredging and Infrastructure Ltd Vs Commissioner of Central Tax (CESTAT Hyderabad); Service Tax Appeal No. 30531 of 2018; 01/04/2021)
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CMA Rakesh Bhalla | 9779010685 | [email protected]
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.
Author Bio
you have not considered , as we understand that gstr1 for aprill 2021 can be filed till 26th may 2021 and gstr3b can be filed till June 5th 2021.
kindly respond.
Thanking you
the light of COVID-19 situation, the Government has relaxed certain compliances under the Goods and Services Tax (‘GST’) Laws. We have mentioned the important ones in the ensuing paragraphs.
A. Relaxation under Rule 36(4) of the CGST Rules
· For the tax period April and May 2021, the restriction of 5 percent specified under Rule 36(4) shall be calculated on the cumulative basis.
· In simple words, taxpayers can avail full ITC based on their books for the month of April 2021. However, while filing GSTR-3B for May 2021, the computation under Rule 36(4) shall be made for both the months.
B. Relaxation in filing of returns, forms, late fee, interest
GSTR-3B and GSTR-1 [Taxpayers having turnover more than ₹ 5 Crores in preceding FY]
Form
Due Date
Relaxation
GSTR-3B for March 2021
20.04.2021
· No late fee till May 5, 2021
· 9 percent interest till May 5, 2021
· 18 percent interest post May 5, 2021
GSTR-3B for April 2021
20.05.2021
· No late fee till June 4, 2021
· 9 percent interest till June 4, 2021
· 18 percent interest post June 4, 2021
GSTR-1 for April 2021
11.05.2021
· Due date extended to May 26, 2021
FORM ITC-04
ITC-04 for Last Quarter 2020-21
25.04.2021
Due date extended to May 31, 2021