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As 31st March 2024 is coming closer, the heartbeat of every individual and businessman is fast that all the tax compliances should be completed before 31st March so that before going into the next financial year, we can ensure that we have completed all our tax compliances.

Keeping this in mind, our team has drafted this article in which we have told which tasks need to be done before 31st March so that there is no problem in the business in future.

So, do this work on or before 31st March, otherwise you may suffer a huge loss.

1. Advance Tax- Income Tax-15th March 2024

Every tax payer who is liable to pay tax, if his tax liability is more than ₹ 10000 in the financial year, then he will have to pay tax in advance under section 207-208 of Income Tax Act. This advance tax will be paid in four installments.

Installment Due Date Tax Amount
1st Installment On or before 15th June 15% of advance tax
2nd Installment On or before 15th September 45% of advance tax (-) advance tax already paid
3rd Installment On or before 15th December 75% of advance tax (-) advance tax already paid
4th Installment On or before 15th March 100% of advance tax (-) advance tax already paid

As I told through the table given above that there are four installments to pay advance tax, then March 15, 2024 is going to come and your fourth installment i.e. the last installment of advance tax is due to be paid, then whichever tax payer If advance tax is due, he should deposit his advance tax as soon as possible before 15th March.

2. Section-43B(h)- any sum payable by the assessee to a micro or small enterprise beyond the time limit specified in section 15 of the 006 (27 of 2006), Micro, Small and Medium Enterprises Development Act,

As you all know, Clause-h under Section 43B, which was introduced in the Finance Act 2023. It will be applicable on 1st April 2024. Under this provision, if the payment of any supplier is due to pay micro and small enterprises, then its payment shall be made within 15 days and if there is an agreement in writing, then it shall be done within 45 days. If he does not do it within the given time, his expenditure will not be allowed during FY 2023-24.

Keeping this provision in mind, all the taxpayers are requested to make a detailed reconciliation of their recipients which is fall under micro and small enterprises and make payment on time otherwise those taxpayers may have to suffer huge losses.

3. Books Annual reconciliation 2023-24

As we all know that 31st March is coming near so the most important task is to close the books so that we can refresh ourselves for the next finance year and there is no pending compliance in the previous year whether it is direct tax or indirect. In the meantime, we should do reconciliation of our books with the GST return/TDS Returns. So that if any mistake remains, we can correct it within the stipulated time and a huge loss can be avoided.

I request all tax payers to reconcile their boxes and if there is any mistake, correct it as soon as possible.

Through some of these reconciliations you will come to know whether you have made any mistake or not.

1. GSTR-1 with GSTR-3B

2. GSTR-1 with E-way Bill

3. GSTR-1 with E-Invoice, if applicable

4. ITC of Books with GSTR-3B

5. ITC of Books with GSTR-2B/2A

6. GSTR-3B with GSTR-2B

7. Reversal Provision Rule-42, 43 and Section-17(5)

With the help of reconciliation given above you will be able to find out whether the GST return filed by you is correct or not.

4. GST LUT filling for FY 2024-25.

There is a provision in the GST law that if any registered tax payer exports or supplies to SEG Unit without payment of tax, then such tax payers are not required to pay GST tax but they shall have to file a letter of undertaking (LUT). Whose filing date is 31st March 2024 which can be used from 1st April 2024 to 31st March 2025.

This form will be submitted in RFD 11

Any registered person who wants to avail this facility shall file above form on the common portal before 31st March 2024 so that he can avail the benefit of this provision while exporting in future.

5. Composition Scheme option (CMP-02) for FY 2024-25

There is a provision in the GST law which says that if a tax payer wants to avoid monthly returns and does not want to follow a lot of compliances.

Then there is a scheme for that which is called composition scheme. Such tax payers are called Composition Taxpayers.

Any such person who is registered in GST wants to switch from regular scheme to composition scheme, then he will have to file CMP 02 form before 31 March 2024, Only then he can avail the benefits of composition scheme from 1 April 2024, But there is a condition that

1. His turnover should not be more than Rs. 1.5 crore

2. He shall not collect the tax from recipients and

3. Moreover, he will not get the benefit of input tax credit

4. He can avoid all the other liability complaints by depositing the tax from his pocket at a specified rate and filing quarterly returns.

5. One percent tax has to be paid for the composition scheme.

For any taxpayer who wants to opt this scheme, the last date to file CMP 02 form is 31 March 2024, so keep in mind that if you want to take advantage of the scheme, then you have to file this form before 31 March.

6. ITR-U for Fy 2020-21

If any taxpayer has not filed income tax return for FY 20-21 or has discovered that there is an error in his return, you still have one opportunity to correct the return and file the return that has not been filed yet.

You have a chance to file the updated return for the financial year 2020-21 before 31st March 2024. You will have to pay additional tax and interest. If someone has not yet filed his return then he will have to pay a minimum penalty of Rs. 1000 and can file his income tax return.

7. Annexure – V: Opting for payment of tax under the forward charge mechanism by a Goods Transport Agency (GTA)

If any transporter who is registered under GST law, he shall have to file a declaration for the financial year 24-25 on or before 15 March 2024.

In the declaration he will tell whether I will pay tax in forward charge or RCM and if I go to forward charge then which rate will be applicable.

Two rates are applicable in forward charge: 5% without ITC and 12% with ITC.

This declaration should not be submitted by those taxpayers who have submitted this declaration under this scheme in the last year and there is no change in their tax payment rates.

If there is any tax payer who was paying tax in FCM in the last year and now wants to opt RCM, he will have to file this declaration.

This declaration will be uploaded on the portal in Annexure 5, which is required to be filed before March 15.

Conclusion: As the deadline of 31st March 2024 looms closer, it’s imperative for taxpayers and registered entities to diligently fulfill their compliance obligations. From advance tax payments and Section 43B(h) provisions to annual book reconciliations and GST-related filings, each task plays a crucial role in ensuring financial integrity and regulatory adherence. By proactively completing these tasks before the deadline, individuals and businesses can safeguard themselves from penalties and uncertainties, thus fostering a smoother transition into the upcoming fiscal year.

Author Bio

Adv Rajbir Singh is a Member of Bar Council of Punjab & Haryana from 2018 and enrolled as a member of “DTBA, Faridabad” Parivar from 2022. He is also a “Trademark Attorney”. He has also qualified MBA in 2011 and LLB in 2016. He is also regular speaker in GST study circle meetings in "Di View Full Profile

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April 2024