DIRECT TAXES UPDATES
Recent circulars/ notifications/ rules/ clarifications/News
♦ CBDT issues directions for disposal of appeals under Faceless Appeal scheme 2020 (Notification no. 77/2020 dated 25.09.2020)
♦ CBDT notifies the Faceless Appeals Scheme, 2020 (Notification no. 76/2020 dated 25.09.2020)
♦ CBDT notifies for 15C for Application by Banking Company or Insurer for receipt of sum without deduction of Tax (Notification no. 75-2020 dated 22.09.2020)
♦ Govt Introduces Taxation Law amendment bills in Lok Sabha (Bill no. 116 of 2020)
♦ All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing.
Income Tax Compliance calendar – October 2020
| Things to remember | |
| Due Date | Particulars |
| 7th October 2020 | – Due date for deposit of tax deducted/collected for the month of September, 2020. 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
– Due date for deposit of TDS for the period July 2020 to September 2020 when Assessing Officer has permitted quarterly deposit of TDS under section 192, 194A, 194D or 194H |
| 15th October 2020 | -Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of September, 2020 has been paid without the production of a challan
-Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of August, 2020 -Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of August, 2020 -Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of August, 2020 Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending September, 2020 -Quarterly statement of TCS deposited for the quarter ending September 30, 2020 -Upload declarations received from recipients in Form No. 15G/15H during the quarter ending September, 2020 -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 September, 2020 |
| 30th October 2020 | -Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of September, 2020
-Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB in the month of September, 2020 -Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194M in the month of September, 2020 -Quarterly TCS certificate (in respect of tax collected by any person) for the quarter ending September 30, 2020 |
| 31st October 2020 | -Intimation by a designated constituent entity, resident in India, of an international group in Form no. 3CEAB for the accounting year 2019-20.
-Quarterly statement of TDS deposited for the quarter ending September 30, 2020 -Due date for furnishing of Annual audited accounts for each approved programmes under section 35(2AA) -Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending September 30, 2020 -Copies of declaration received in Form No. 60 during April 1, 2020 to September 30, 2020 to the concerned Director/Joint Director |
Important cases decided
♦ No section 14A disallowance if there is no exempt income (Tata Sky Limited Vs. ACIT (ITAT Mumbai)
♦ Keyman Insurance Policy Maturity Value taxable as Income from Other Sources (Ravjibhai L. Kakadia Vs. ACIT (ITAT Mumbai))
♦ No penalty on additional income admitted though there is no evidence (ACIT Vs Deccan Jewellers Pvt. Ltd. (ITAT Visakhapatnam))
♦ ITAT allows section 80IB deduction on Pro rata basis
INDIRECT TAXES UPDATES
GST
GST Compliance Calendar – Returns to be filed in the M/O October 2020
| GST Return Form Name | Filing Period | Due Dates in October 2020 |
| GSTR-1 (Outward return) | Monthly (September 2020) | 11th October 2020 |
| GSTR 3B (Tax summary return) | September ‘2020 | 20th October 2020 ( In case Aggregate turnover more than or equal to Rs 5 crore in the previous Year)
22nd / 24th October 2020 (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) | September ‘2020 | 20th October 2020 |
| GSTR 05 (by non-taxable resident persons ) | September ‘2020 | 20th October 2020 |
| GSTR 06 (ISD) | September ‘2020 | 13th October 2020 |
| GSTR 07 (TDS) | September ‘2020 | 10th October 2020 |
| GSTR 08 (TCS) | September ‘2020 | 10th October 2020 |
| CMP-08 (Quarterly challan-cum-statement to be furnished by composition dealers ) | July-September’2020 | 18th October 2020 |
Important points to be considered for Correction of 2019-20 Transactions in Sep-20 GST Return:
a) Pending ITC claim – Reconcile ITC Claimed with GSTR-2A and other data and claim ITC, if pending or reduce ITC if already availed and not reflected in GSTR-2A as per the Rule 36(4).
b) Pending RCM Liability and ITC thereof – Pay RCM liability if any pending for the year 2019-20 and also avail ITC thereof
c) Correction from Supplier – If any correction is required in GSTR-2A of the whole year then ask the same to the supplier to amend the same in the month of Sep-20. After Sep-20, corrections cannot be done.
d) Issue Credit Notes – Find out discount, sales returns, disputed amount for which credit notes are to be issued as it will not be possible after Sep-20 GST return for the year 2019-20.
e) GSTR-9 and GSTR-9C – Due date to file GSTR-9 and GSTR-9C for the year 2018-19 is 30-09-2020.
GSTR-4 – Reduction of late fee and extension of due date for filing by specified persons: The CBIC has once again extended the last date of filing GSTR-4 by specified persons, as required under Notification No. 21/2019-Central Tax, for the financial year 2019-2020, till 31-10-2020. Notification No. 64/2020-Central Tax, dated 31-08-2020 has been issued for the purpose. Further, the late fees payable by the registered person who had failed to furnish the GSTR-4 for the quarters from July, 2017 to March, 2020 by the due date but furnishes the said return between the period from 22-09-2020 to 31-10-2020, has been limited to INR 500 (250 each under CGST and SGST provisions). It may be noted that the late fee is fully waived if the tax payable in the said return is nil. (Notification No. 67/2020-Central Tax, dated 21-09-2020)
GSTR-10 – Late fee reduced if return furnished between 22-09-2020 till 31-12-2020: The CBIC has reduced the amount of late fees payable under Section 47 of the Central Goods and Services Tax Act, 2017 by registered persons who fail to furnish the return in Form GSTR-10 by the due date but furnishes the said return between 22-09-2020 to 31-12-2020 the late fee payable in such cases would be INR 250. (Notification No. 68/2020-Central Tax, dated 21-09-2020)
Invoices under Section 31(7) – Time limit extended till 31-10-2020: Section 31(7) of the Central Goods and Services Tax Act, 2017 provides that where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall Central Tax, dated 21-09-2020, any time limit for completion or compliance of any action, under said provision, which falls during 20-03-2020 till 30-10-2020, has been extended upto 31-10-2020. ( Notification No. 35/2020-Central Tax )
Cases Law
SEZ unit entitled to claim refund of unutilized ITC distributed to it by ISD: (Britannia Industries Limited v. Union of India – Judgement dated 11-03-2200 in R/Special Civil Application No. 15473 of 2019, Gujarat High)
Appeal – Time period to file appeal starts only when impugned order is uploaded on GST portal: (Gujarat State Petronet Ltd. v. Union of India – 2020 VIL 426 GUJ)
Refund of ITC on input services due to inverted duty structure, not available: (Tvl. Transtonnelstroy Afcons Joint Venture v Union of India – Judgement dated 21-09-2020 in Writ Petition Nos. 8596 and others, Madras High Court )
Cash amount can be seized under Section 67 of the CGST Act: (Kanishka Matta v. Union of India – 2020 TIOL 1445 HC MP GST)
No detention when e-way bill mentions consignee as unregistered: (Abco Trades (P) Ltd. v. Assistant State Tax Officer – 2020 VIL 399 KER)
Customs
FTAs – Bill of Entry formats revised to enforce requirements of CAROTA Rules: The Ministry of Finance has revised the formats for all 3 types of Bills of Entry – for home consumption for warehousing and for ex-bond clearance. The revised formats which are effective from 21-09-2020, now capture the new requirements as mandated by the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (‘CAROTA Rules’). As per the new formats, the country of origin and country of origin code is now required to be declared. Further, if the country of consignment is different from the country of origin, it must be specifically declared along with the country code. Certain declarations in respect of preferential duty claims have also been revised. (Notification No. 90/2020-Cus. (N.T.)
Merchandise Export from India Scheme – Ceiling limit and sunset notified: The Ministry of Commerce has fixed a ceiling limit of INR 2 crores per IEC for claiming the Merchandise Export from India Scheme (‘MEIS’) benefits against exports made between 01-09-2020 to 31-12-2020 (based on LEO date of shipping bill). According to the new para 3.04A of the Foreign Trade Policy 2015-20, as inserted by Notification No. 30/2015-20, dated 01-09-2020, the said ceiling limit is subject to further reduction to ensure that the total claim under MEIS for the said period does not exceed INR 5000 crores. Further, IEC holder who has not made any exports with LEO date between 01-09-2019 to 31-08-2020 or has obtained IEC on or after 01-09-2020 would not be entitled for MEIS claim against exports made from 01-09-2020 onwards. (New para 3.04B provides that MEIS Scheme will not be available for exports made from 01-01-2021)
Faceless assessment for import of goods to be rolled out pan India from 31-10-2020: The Central Board of Indirect Taxes and Customs (‘CBIC’) has decided to roll-out the Faceless Assessment at all India level at all ports of import and for all imported goods by 31-10-2020. Circular No. 40/2020-Cus., dated 04-09-2020 issued for this purpose, provides various roll-out dates for different ports. According to the Circular, 11 National Assessment Centres, organised commodity-wise according to Schedule I to the Customs Tariff Act, 1975, will be constituted to monitor the assessment practice, study audit objections, etc. The working groups have been asked to virtually meet for a short duration every day at a scheduled time to review timeliness of assessment, identify bottlenecks and take measures to remove difficulties. It may be noted that Phase I of the faceless assessment was launched on 05-06-2020 at Chennai and Bengaluru for goods falling under Chapters 84 and 85 of the Customs Tariff Act, 1975. Phase II had begun on 03-08-2020 at Chennai, Bengaluru, Delhi, for goods covered under Chapters 50 to 71, 84, 85 and 86 to 92, and in Mumbai for goods under Chapter 29. (Circular No. 40/2020-Cus., dated 04-09-2020)
Cases Law
No power to freeze bank account before amendment in Customs Section 110 in 2019: (Padmavati Industries v. Commissioner – Order dated 08-09 2020 in D.B. Civil Writ Petition No. 2366/2020)
Excise & Service Tax
Supply of pipes and measurement equipment, charged as ‘gas connection charges’, liable to service tax under ‘Supply of Tangible Goods for Use’: (Commissioner v. Adani Gas Ltd. – Judgment dated 28-08-2020 in Civil Appeal No. 2633 of 2020, Supreme Court]
With Warm Regards & Jai Hind – CMA Rakesh Bhalla – 9779010685- nancybhalla@yahoo.com
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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