Stay updated on important GST and FEMA updates for May 2023. Learn about filing returns, regulatory changes, and compliance tasks. Explore a detailed work schedule and recent amendments in the Foreign Exchange Management Act (FEMA), including the omission of Rule 7 impacting international credit card spending and implications for Tax Collected at Source (TCS). Get valuable suggestions for handling GST officer visits during special drives to track fake GST registrations. Ensure compliance, minimize risks, and operate within the legal framework with these insights.
In the ever-evolving world of finance and compliance, staying updated with important schedules and regulatory changes is crucial for businesses and individuals. To help you stay informed, we have compiled a detailed work schedule for the upcoming days, along with important updates in the Foreign Exchange Management Act (FEMA). These schedules and updates cover essential tasks such as filing returns, updating registrations, and understanding changes in regulations related to foreign exchange transactions. By following these guidelines and staying proactive, you can ensure compliance, minimize risks, and maintain a smooth operation within the legal framework. Let’s dive into the work schedule and the latest updates that require your attention.
WORK SCHEDULE FOR THE UPCOMING DAYS IN THE MONTH OF MAY 2023
Here is a detailed schedule of important tasks and deadlines to keep in mind:
| Date | Particulars | Remarks |
| 20-05-2023 | GSTR 3B | Every month, GSTR 3B needs to be filed. |
| 30-05-2023 | TDS RETURN | TDS Return for the period January to March 2023 needs to be filed. |
| 30-05-2023 | DPT 03 | Every private limited company that has loans or advances from debtors exceeding 365 days is required to file DPT 03. |
| 30-06-2023 | IEC UPDATE | Every person with an Importer-Exporter Code (IEC) needs to update it by 30th June every year. |
New Update in FEMA (Foreign Exchange Management Act):
Rule 7 of the Foreign Exchange Management (Current Account Transaction) Rules, 2000 has been omitted. The use of international credit cards was previously exempt from the limit of the Liberalized Remittance Scheme (LRS).
Under the LRS Scheme, an individual can spend up to $250,000 outside India for specific purposes without the approval of the Reserve Bank of India (RBI).
Effects of the Update:
1. International Credit Card Spending: Previously, international credit card spending was not included in the LRS Scheme, allowing additional spending beyond the limit. With this change, international credit card, debit card, and ATM card spending will be part of the $250,000 limit. It’s important to note that the overall limit of $250,000 is still available.
2. Tax Collected at Source (TCS): TCS will be applicable at different rates depending on the purpose of the remittance. Here are some sample cases:
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- Repayment of loan obtained from a Financial Institution: Above 700,000/- threshold, TCS rate is 0.5%.
- Remittance not out of loan from a Financial Institution: Above 700,000/- threshold, TCS rate is 5%.
- Remittance for Medical Treatment: Above 700,000/- threshold, TCS rate is 5%.
- Remittance for Tour Package: TCS rate is 20%.
- Remittance for any other purpose: TCS rate is 20%.
| Particulars | Threshold and TCS Rate |
| Repayment of loan obtained from A Financial Institution as defined u/s 80E | Above 700000/- 0.5% |
| Remittance not out of loan from a Financial Institution | Above 700000/- 5% |
| Remittance for Medical Treatment | Above 700000/- 5% |
| Remittance for Tour Package | 20% |
| Remittance for any other purpose | 20% |
Suggestions during GST Officer Visits for Special Drive to track Fake GST Registrations:
1. Don’t Panic or Be Afraid: The visiting officer is there to address issues related to fake billing. Stay calm and cooperate.
2. Cooperate: Extend your full cooperation to the officer in a lawful manner.
3. Sign Board: Display a signboard at your place with your GST number.
4. Registration Certificate: Paste your Registration Certificate at your office. If you are under the composition scheme, mention that your business is registered under the composition scheme and therefore not charging GST separately.
5. Records: Maintain a place register where accounting is conducted. If accounting is done at a location other than your registered place, add the additional place to the register.
6. GST Return Records: Keep your GST return records available and ensure monthly reconciliation. Although not legally required, this system can help you avoid interest and penalty charges.
Remember, the visiting officers are there to cooperate with you. If you experience any unnecessary harassment, you can make a complaint to their Deputy Commissioner/Joint Commissioner or through the CPGRAM portal. However, these channels should only be used if unwarranted harassment occurs. It is your duty to cooperate with officers in a lawful manner.
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