1. New updated Return will be implemented – Updated return can be filed within 2 years from the end of the Assessment year
2. Reduced MAT/AMT for Co-operatives – Reduce rate of Co-op Societies to 15% – The surcharge is reduced from 15% to 12% for those having income between Rs.1 Crore to Rs.10 Crore
3. The payment of annuity and lumpsum amount for Parents/Guardian is made availalble.
4. NPS Contribution – The tax deduction limit increased at par with Central Govt. Employees for state Govt. Employees
5. Incentives for start-up: Tax Incentive – Period extended till 31.3.2023
6. Manufacturing Companies – Commencement of production – Period extended till 31.03.2024
7. Virtual Digital Asset: 30% tax rate. Only Cost of acquisition can be deducted. No carry forward of loss. TDS implemented.
8. LTCG Maximimum Surcharge capped to 15%
9. Surcharge/Cess on income is not allowable as expenditure
10. Undisclosed cannot be setoff against brought forward loss in case of search and survey cased
MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened.
A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for farm produce value chain
ECLGS to be extended upto March 2023, guaranteed cover extended by another Rs 50,000 crore.
CBIC had issued circular 166/2021 dated 17.11.2021, covering the following various issues in Refunds related to Electronic Cash Ledger and Deemed Exports:
1. Refund of excess balance in Electronic Cash Ledger – Time Period mentioned in sub section 1 of Section 54 is not applicable for refund of excess balance in Electronic Cash Ledger. As per Section 54(1) the time limit for application of refund is 2 years from the relevant date.
2. The declaration under Rule 89(2)(l) or 89(2)(m) of CGST Rules, 2017 (Declaration in case the refund of amount is less than Rs.2 Lakhs and Certificate from Chartered Accountant in other cases, as to the incidence of tax, interest or any other amount claimed as refund is not been passed on to any other person) is not required.
3. The refund of TDS/TCS deposited in electronic cash ledger under the provisions of section 51 /52 of the CGST Act can be refunded as excess balance in cash ledger.
4. Relevant date in case of deemed exports of goods by the recepient, will be the date of furnishing the return by the Supplier of Goods.
The entire text of the circular is reproduced below for the reference:
Circular No. 166/22/2021-GST
F.No. CBIC-20021/4/2021-GST
Government of India Ministry of Finance Department of Revenue
Central Board of Indirect Taxes and Customs GST Policy Wing
****
New Delhi, Dated the 17th Nov, 2021
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All) Madam/Sir,
Subject: Clarification on certain refund related issues- reg.
Various representations have been received from taxpayers and other stakeholders seeking clarification in respect of certain issues relating to refund. The issues have been examined. In order to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies each of these issues as under:
S. No.
Issue
Clarification
1.
Whether the provisions of sub- section (1) of section 54 of the CGST Act regarding time period, within which an application for refund can be filed, would be applicable in cases of refund of excess balance in electronic cashledger?
No, the provisions of sub-section (1) of section 54 of the CGST Act regarding time period, within which an application for refund can be filed,would not be applicable in cases of refund of excess balance in electronic cash ledger.
2.
Whether certification/ declaration under Rule 89(2)(l) or 89(2)(m) of CGST Rules, 2017 is required to be furnished along with the application for refund of excess balance in
No, furnishing of certification/ declaration under Rule 89(2)(l) or 89(2)(m) of the CGST Rules, 2017 for not passing the incidence of tax to any other person is not required in cases of refund of excess balance inelectronic cash ledger as
electronic cash ledger?
unjust enrichment clause is not applicable insuch cases.
3.
Whether refund of TDS/TCS deposited in electronic cash ledger under the provisions of section 51/52 of the CGST Act can be refunded as excess balancein cash ledger?
The amount deducted/collected as TDS/TCS by TDS/ TCS deductors under the provisions of section 51 /52 of the CGST Act, as the case may be, and credited to electronic cash ledger of the registered person, is equivalent to cash deposited in electronic cash ledger. It is not mandatory for the registered person to utilise the TDS/TCS amount credited to his electronic cash ledger only for the purpose for discharging tax liability. The registered person is at full liberty to discharge his tax liability in respect of the supplies made by him during a tax period, either through debit in electronic credit ledger or through debitin electronic cash ledger, as per his choice and availability of balance in the said ledgers. Any amount, which remains unutilized in electronic cash ledger, after discharge of tax dues and other dues payable under CGST Act and rules made thereunder, can be refunded to the registered person as excess balance in electronic cash ledger in accordance with the proviso to sub-section(1) of section 54, read with sub-section (6) of section 49 of CGST Act.
4.
Whether relevant date for the refund of tax paid on supplies regarded as deemed export by recipient is to be determined as per clause (b) of Explanation (2) under section 54 of CGST Act and if so, whether the date of return filed by the supplier or date of return filed by the recipient will be relevant for the purpose of determining relevant date for such refunds?
Clause (b) of Explanation (2) under Section 54 of CGST Act reads as under: “(b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished;” On perusal of the above, it is clear that clause (b) of Explanation (2) under section54 of the CGST Act is applicable for determining relevant date in respect of refund of amount of tax paid on the supplyof goods regarded as deemed exports,
irrespective of the fact whether the refund claim is filed by the supplier or by the recipient. Further, as the tax on the supply of goods, regarded as deemed export, would be paid by the supplier in his return, therefore, the relevant date for purpose of filing of refund claim for refund of tax paid on such supplies would be the date of filing of return, related to such supplies, by the supplier.
2. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
3. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. Hindi version will follow.
CBIC had issued Circular No. 165/21/2021 dated 17th November, 2021, clarifying about the applicability of Dynamic QR Code on service invoices where recepient is located outside India and place of supply is in India.
Dynamic QR Code is not required in case invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI.
The entire text of the Circular is given below:
Circular No. 165/21/2021-GST
CBEC-20/16/38/2020 -GST
Government of India Ministry of Finance Department of Revenue
Central Board of Indirect Taxes and Customs GST Policy Wing
New Delhi, dated the 17th November, 2021
To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)
Madam/Sir,
Subject: Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020 – Reg.
Various references have been received from trade and industry seeking further clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer) invoices for compliance of notification 14/2020-Central Tax, dated 21st March, 2020 as amended. It has been represented that in some cases where, though the service recipient is located outside India and place of supply of the service is in India as per IGST Act 2017, the payment is received by the service provider located in India not in foreign exchange, but through other modes approved by RBI. In such cases, the supplier will not be fulfilling the condition specified in S. No. 4 of the Circular No. 156/12/2021 dated 21st June 2021, and accordingly, will be required to have dynamic QR code on the invoice. It has been also represented that relaxation from dynamic QR code on the invoices in such cases should be available if the payment is received through any RBI approved mode of payment, and not necessarily in foreign exchange.
2. The issues have been examined and in order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act, 2017, hereby clarifies the issues hereafter.
3. It is observed that from the present wording of S. No. 4 of Circular No. 156/12/2021 dated 21stJune 2021, doubt arises whether the relaxation from the requirement of dynamic QR code on the invoices would be available to such supplier, who receives payments from the recipient located outside India through RBI approved modes of payment, but notin foreign exchange. It is mentioned that the intention of clarification as per S. No. 4 in the said circular was not to deny relaxation in those cases, where the payment is received by the supplier as per any RBI approved mode, other than foreign exchange.
4. Accordingly, to clarify the matter further, the Entry at S. No. 4 of the Circular No. 156/12/2021-GST dated 21st June, 2021 is substituted as below:
4.
” In cases, where receiver of services is located outside India, and payment is being received by the supplier of services ,through RBI approved modes of payment, but as per provisions of the IGST Act 2017, the place of supply of such services is in India, then such supply of services is not considered as export of services as per the IGST Act 2017; whether in such cases, the Dynamic QR Code is required on the invoice issued, for such supply of services, to such recipientlocated outside India?
No. Wherever an invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for makingpayment to the supplier.”
5. Circular No. 156/12/2021-GST, dated 21.06.2021 stands modified to this extent.
6. It is requested that suitable trade notices may be issued to publicize the contents of this circular.
7. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.
Ministry of Corporate affairs vide General Circular No.17/2021 dated 29.10.2021, provided relaxation in paying additional fees in filing of e-forms AOC-4, AOC-4 (CFS), AOC-4, AOC-4 XBRL, AOC-4 Non-XBRL and MGT -7 / MGT -7A for the financial year ended on 31.03.2021 under fhe Companies Act, 2013. The due date is 30 days from the date of Annual General Meeting. Now Company’s can file these forms without late fees till 31st December, 2021.
Please note that, if the forms were not filed within the date mentioned above, the late fees will be applicable from the original due date.
The text of the notification is given below:
General Circular No. 17 /2021
F.No. 0l / 34 / 2013 CL-V -Part-III
Government of India
Ministry of Corporote Affairs 5th Floor,’A’ Wing, Shastri Bhawan,
Dr. Rajendra Prasad Road,
New Delhi-l Dated: 29th October 2021
Subject: Relaxation on levy of additional fees in filing of e-forms AOC-4, AOC-4 (CFS), AOC-4, AOC-4 XBRL, AOC-4 Non-XBRL and MGT -7 / MGT -7A for the financial year ended on 31.03.2021 under fhe Companies Act, 2013 – reg
Sir,
Keeping in view of various requests received from stakeholders regarding reloxation on levy of additional fees for annual finoncial statement filings reguired to be done for the financial year ended on 31.03.2021. It has been decided that no additionol fees shall be levied upto 31-12-2021for the filing of e-forms AOC-4, AOC-4 (CFS), AOC-4XBRL, AOC-4Non_ XBRL and MGT-7, and MGT-7A in respect of the financial yeor ended on 31.03.2021. During ihe said period, only normal fees shall be payable for the filing of the aforementioned e-forms. 2. This issues with the approval of the competent authority.
Ministry of Corporate affairs vide General Circular No.16/2021 dated 26.10.2021, provided relaxation in paying additional fees for filing Statement of Solvency in Form 8 for Limited Liability Partnerships. The due date is on 31st October, 2021. Now LLP’s can file Form 8 without late fees till 31st December, 2021.
The text of the circular is given below:
Relaxations in paying additional fees in case of delay in filing Form 8 (the Statement of Account and Solvency) by Limited Liability Partnerships upto 30th December, 2021:
e-File No: Policy-01/2/2021-CL-V-MCA
Government of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shastri Bhawan,
Dr. R.P. Road, New Delhi – 110001.
Dated: 26.10.2021
To, The DGCoA,
All Regional Directors,
All Registrar of Companies,
All Stakeholders.
Sir/Madam,
This Ministry has received a representation seeking extension of timeline for filing the Statement of Account and Solvency without paying additional fees by LLPs on account of challenges faced by the LLPs due to COVID-19 pandemic. As part of the Government’s constant efforts to promote ease of living and compliances for Micro, Medium and Small Enterprises doing business through the vehicle of LLP, it has been decided to allow LLPs to file Form 8 (the Statement of Account and Solvency) for the Financial Year 2020-2021 without paying additional fees upto 30th December, 2021.
2. This issues with the approval of the competent authority
Central Government vide notification 119/2021 dated 11th October, 2021 Exempts Certain Persons from Filing Returns from Assessment Year 2021-22 subject to certain conditions.
The text of the notification is given below:
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 11th October, 2021
S.O. 4207(E).—In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as „said Act‟), the Central Government, hereby exempts the following class of persons mentioned in column (2) of the Table below, subject to the conditions specified in column (3) of the said Table , from the requirement of furnishing a return of income under sub-section (1) of section 139 of the said Act from assessment year 2021-2022 onwards :-
TABLE
Explanation. –For the purposes of this Notification. –
Sl. No.
class of Persons
conditions
(1)
(2)
(3)
1.
(i) a non-resident, not being a company; or(ii) a foreign company.
(i) The said class of persons does not earn any income in India, during the previous year, other than the income from investment in the specified fund referred to in sub-clause (i) of clause (c) of Explanation to clause (4D) of section 10 of the said Act; and (ii) The provisions of section 139A of the said Act are not applicable to the said class of persons subject to fulfillment of the conditions mentioned in sub-rule (1) of rule 114AAB of the Income-tax Rules, 1962 (hereinafter referred to as,said rules‟).
2
a non-resident, being eligible foreign investor.
(i) The said class of persons, during the previous year, has made transaction only in capital asset referred to in clause (viiab) of section 47 of the said Act, which are listed on a recognised stock exchange located in any International Financial Services Centre and the consideration on transfer of such capital asset is paid or payable in foreign currency; (ii) The said class of persons does not earn any income in India, during the previous year, other than the income from transfer of capital asset referred to in clause (viiab) of section 47 of the said Act; and (iii) The provisions of section 139A of the said Act are not applicable to the said class of persons subject to fulfillment of the conditions mentioned in sub-rule (2A) of rule 114AAB of the said rules.
(a) “eligible foreign investor” means a non-resident who operates in accordance with the Securities and Exchange Board of India, circular IMD/HO/FPIC/CIR/P/2017/003 dated 04th January, 2017;
(b) “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(c) “recognised stock exchange” shall have the meaning as assigned to it in clause (ii) of Explanation 1 to sub-section (5) of section 43 of the said Act.
3. The above exemption from the requirement of furnishing a return of income shall not be available to the class of persons mentioned in the column (2) of the said Table where a notice under sub-section (1) of section 142 or section 148 or section 153A or section 153C of the said Act has been issued for filing a return of income for the assessment year specified therein.
4. This notification shall come into force from the date of its publication in the Official Gazette.
[Notification No. 119/2021/F. No. 225/76/2021-ITA.II] RAVINDER MAINI, Director (ITA-II)
