FM Press Conference – Statutory Compliances Extension – Income Tax

  1. Income Tax Return of FY 2018-19 – The last date for filing extended to 30-06-2020. Interest rate for delayed payment reduced to 9% till 30-06-2020.
  2. Delayed deposit of TDS – Interest rate reduced to 9% from 18%
  3. Aadhar PAN linking extended 30-06-2020
  4. Vivad Se Viswas – The date without additional 10% extended till 30-06-2020
  5. All due dates extended till 30-06-2020 – This includes, notices, orders, statements, returns, time limit for buying tax saving investment etc will be extended till 30-06-2020

Please see the link below for the press note:

FM Press Conference – Statutory Compliances Extension – Income Tax

Wish you all a Happy, Healthy and Prosperous New year.

Wish you all a Happy, Healthy and Prosperous New year.

Directors KYC – Due date Extension

As per rule 12A of the Companies (Appointment and Qualification of Directors)Rules 2014, “every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year, has to file Form DIR-3 KYC. The due date for filing the form was 30th April of the immediate next financial year.

As per notification issued by Ministry of Corporate Affairs ( G.S.R. 339(E) dated 30th April, 2019), the due date was extended to 30th June of the immediate next financial year

Directors KYC – Due date Extension

Sharing of ITR data with GST Department by CBDT

CBDT issued an order ( F. No. 225/105/2019/ITA.II dated 30th April, 2019) specifying the Income Tax authority for furnishing information in respect of assessees to the Nodal officer, GSTN.

The text of the order is given below:

Order

In exercise of powers conferred under section 138(1)(a) of the Income tax Act, 1961 (‘Act’), for purposes of sub-clause (i) of section 138(1)(a) of the Act, the Central Board of Direct taxes (‘CBDT’) hereby directs that Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information respecting assessees to the Nodal Officer, Goods and Services Tax Network (‘GSTN’).

2. The data/information to be furnished by the specified income-tax authority shall be:

(a) Request based exchange of data, wherein, important financial fields which are captured in the Income Tax Returns (ITRs) such as (i) status of filing of ITR; (ii) turnover; (iii) gross total income, (iv)turnover ratio; (v)GTI range; (vi) turnover range and (vii) any other field, the modalities of which shall be decided by the concerned specified authorities.

(b) Spontaneous exchange of data, the modalities of which shall be decided by the concerned specified authorities.

(c) Automatic exchange of data, the modalities of which shall be decided by the concerned specified authorities.

While furnishing the information, the specified income-tax authority shall form an opinion that sharing of such information is necessary for the purposes of enabling the specified authority in GSTN to perform its functions under the Goods and Services Tax.

3. To facilitate the process of furnishing information, Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) would enter into a Memorandum of Understanding (‘MoU’) with nodal officer, GSTN, which inter-alia would include modalities of exchange of data, maintenance of confidentiality, mechanism for safe preservation of data, weeding out after usage etc. The time line for furnishing information shall also be decided by Pr. Director General of Income-tax (Systems) or Director General of Income-tax (Systems) in consultation with concerned nodal officer and included in the said MoU.

4. A copy of MoU shall be forwarded to this division for record purposes.

5. This issues with the approval of Chairman, CBDT.

A similar order is expected from CBIC also in the near future,

Sharing of ITR data with GST Department by CBDT

INC-22A – Form Active – Due date for filing extended till 15th June, 2019

The government has extended the deadline for uploading photos of business premises to June 15, giving corporates more time to comply with a provision aimed at spotting shell companies.

“It has been decided to extend the date to June 15,” confirmed a corporate affairs ministry official. The same is reported in Economic Times.

This new electronic form INC 22A, which is also known as e-Form ACTIVE (Active Company Tagging Identities and Verification), was notified as part of the Companies (Incorporation) Amendment Rules, 2019 in February. If the form is filed within the due date, there is no fee, while late filing will attract a fine of Rs 10,000.

Ministry of Corporate Affairs, issued notifications regarding extension of due date for filing Form Active (INC-22A) and also changing the date of filing without any payment of fees and till 15-06-2019 and with payment of Rs.10,000/- for filing on or after 16-06-2019, by amending Companies (Incorporation) Rules, 2014 and Companies (Registration offices and Fees) Rules, 2014. Both the notification were issued on 25th April, 2019.

Source: https://economictimes.indiatimes.com & http://www.mca.gov.in

INC-22A – Form Active – Due date for filing extended till 15th June, 2019

Income tax TDS rates – FY 2019-20

TAX DEDUCTED AT SOURCE – RATES FOR ASSESSMENT YEAR 2019-20
Sl. No.Nature of PaymentSectionBasic Cut-off (Rs.) p.a.TDS Rate: Individual/HUFTDS Rate:Other than Individual/ HUFTDS Rate: No PAN/ Invalid PAN
1Payment of Salaries by Employers192Slab rateSlab rateNot applicable30%
2Premature payment by PF Organization from EPF A/c (i.e. before 5 Years).192A50,000.0010%Not applicable20%
3Payment of Interest on Securities by company.19310,000.0010%10%20%
4Payment of Dividend other than dividend as referred to Section 1150 by company (i.e. Dividend on which Dividend Distribution Tax is notpaid)1942,500.0010%10%20%
5Payment of Interest by bank194A40,000.00 (Non Sr. Citizen) 50,000.00 (Sr. Citizen)10%10%20%
6Payment of Interest by others194A5,000.0010%10%20%
7Payment of prize from Wining from Lotteries by any person.194B10,000.0030%30%30%
8Payment of prize from Wining from Horse Race by any person.194B10,000.0030%30%30%
9Payment to Contractors by any person194C30000(Single nill) or 1 Lakh aggregate bills during the year.1%2%20%
10Payment to Transporter Covered u/s. 44E and submit declaration in prescribed format. (i.e. owning less than 10 goods carriages)194C0020%
11Payment to Transporter not covered U/s.44E (i.e., owning more than 10 goods carriages)194C30000 (single bill) or 75000 aggregate bills during the year1%2%20%
12Payment of Insurance Commission to agents by Insurance Company.194D15,000.005%10%20%
13Payment in respect of maturity of Life Insurance Policy by life insurance Company194DA1 Lakh1%1%20%
14Payment to NRI sportsman or association by any person.194E20%20%20%
15Payment out of deposit under National Saving Scheme (NSS)194EE2,500.0010%10%20%
16Payment with respect to repurchase of units by Mutual FundCompanies.194F20%20%20%
17Payment of Lottery Commission194G15,000.005%5%20%
18Payment of commission or Brokerage194H15,000.005%5%20%
19Payment of rent on land, building, furniture and fittings.1941240,000.0010%10%20%
20Payment of rent on plant, machinery or equipments.1941240,000.002%2%20%
21Payment made on account of transfer of immovable property other than agricultural land194IA50 Lakh1%1%20%
22Rent payable by individual not covered u/s. 194I for land, building, F&F1941B50,000.00 PM5%5%20%
23Payment of Professional fees other than call centers194J30,000.0010%10%20%
24Payment of Professional fees to call centers194J30,000.002%2%20%
25Compensation on transfer of certain immovable property other than Agricultural Land194LA250,000.0010%10%20%
Income tax TDS rates – FY 2019-20

DIR-3 KYC – Directors Annual KYC filing – Clarification by Ministry of Corporate Affairs

Ministry of Corporate Affairs had made a clarification post (not by way of Notification or Circular) in their website http://www.mca.gov.in regarding the annual filing of DIR-3 KYC for those Directors who had already filed the form and for those DIN allotted post 31-03-2018.

The clarification states that the DIR-3 KYC e-form presently available on the portal does not cater for the following:

(i) Filing on annual basis, and

(ii) Filing in respect of DINs allotted post 31 March 2018. It presently caters only to those individuals who were allotted DINs as on 31st March 2018 and whose DINs have been marked as ‘Deactivated due to non-filing of DIR-3 KYC’.

It is also clarified that, the form is presently being modified to enable pre-filling of data & information so that annual filings can be done by DIN holders in a simple and user friendly manner. The revised form, which will be shortly deployed, can be filed without any fee within a period of 30 days from the date of deployment.

Source: http://www.mca.gov.in

DIR-3 KYC – Directors Annual KYC filing – Clarification by Ministry of Corporate Affairs

GST Council 34th meeting Decisions of Real Estate – Press Release

GST COUNCIL 34th Meet – GST Rate on Real Estate Sector

Decisions taken by the GST Council in the 34thmeeting held on 19thMarch, 2019 regarding GST rate on real estate sector

Posted On: 19 MAR 2019 5:41PM by PIB Delhi

GST Council in the 34th meeting held on 19th March, 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. The council decided the modalities of the transition as follows.

 Option in respect of ongoing projects:

2.         The promoters shall be given a one -time option to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC) on ongoing projects (buildings where construction and actual booking have both started before 01.04.2019) which have not been completed by 31.03.2019.

3.         The option shall be exercised once within a prescribed time frame and where the option is not exercised within the prescribed time limit, new rates shall apply.

New tax rates:

4.         The new tax rates which shall be applicable to new projects or ongoing projects which have exercised the above option to pay tax in the new regime are as follows.

(i) New rate of 1% without input tax credit (ITC) on construction of affordable houses shall be available for,

(a) all houses which meet the definition of affordable houses as decided by GSTC (area 60 sqm in non- metros / 90 sqm in metros and value upto RS. 45 lakhs), and

(b)  affordable houses being constructed in ongoing projects under the existing central and state housing schemes presently eligible for concessional rate of 8% GST (after 1/3rd land abatement).

(ii)        New rate of 5% without input tax creditshall be applicable on construction of,-

  1. all houses other than affordable houses in ongoing projects whether booked prior to or after 01.04.2019. In case of houses booked prior to 01.04.2019, new rate shall be available on instalments payable on or after 01.04.2019.
  2. all houses other than affordable houses in new projects.
  3. commercial apartments such as shops, offices etc. in a residential real estate project (RREP) in which the carpet area of commercial apartments is  not more than 15% of total carpet area of all apartments.

Conditions for the new tax rates:

5.         The new tax rates of 1% (on construction of affordable) and 5% (on other than affordable houses) shall be available subject to following conditions,-

  1. Input tax credit shall not be available,
  2. 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

Transition for ongoing projects opting for the new tax rate:

6.1       Ongoing projects (buildings where construction and booking both had started before 01.04.2019) and have not been completed by 31.03.2019 opting for new tax rates shall transition the ITC as per the prescribed method.

6.2       The transition formula approved by the GST Council, for residential projects (refer to para 4(ii)) extrapolates ITC taken for percentage completion of construction as on 01.04.2019 to arrive at ITC for the entire project. Then based on percentage booking of flats and percentage invoicing, ITC eligibility is determined. Thus, transition would thus be on pro-rata basis based on a simple formula such that credit in proportion to booking of the flat and invoicing done for the booked flat is available subject to a few safeguards.

6.3       For a mixed project transition shall also allow ITC on pro-rata basis in proportion to carpet area of the commercial portion in the ongoing projects (on which tax will be payable @ 12% with ITC even after 1.4.2019) to the total carpet area of the project.

Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019

7.         The following treatment shall apply to TDR/ FSI and Long term lease for projects commencing after 01.04.2019.

7.1       Supply of TDR, FSI, long term lease (premium) of land by a landowner to a developer shall be exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sold after issue of completion certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.

7.2       The liability to pay tax on TDR, FSI, long term lease (premium) shall be shifted from land owner to builder underthe reverse charge mechanism (RCM).

7.3       The date on which builder shall be liable to pay tax on TDR, FSI, long term lease (premium) of land under RCM in respect of flats sold after completion certificate is being shifted to date of issue of completion certificate.

7.4       The liability of builder to pay tax on construction of houses given to land owner in a JDA is also being shifted to the date of completion. Decisions from para 7.1 to 7.4 are expected to address the problem of cash flow in the sector.

Amendment to ITC rules:

8.         ITC rules shall be amended to bring greater clarity on monthly and final determination of ITC and reversal thereof in real estate projects. The change would clearly provide procedure for availing input tax credit in relation to commercial units as such units would continue to be eligible for input tax credit in a mixed project.

9.         The decisions of the GST Council have been presented in this note in simple language for easy understanding.  The same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.

GST Council 34th meeting Decisions of Real Estate – Press Release

Companies Incorporation – Amendment in Rules

Companies (Incorporation) Rules, 2014 – Recent amaendment

The following welcome changes were bought in by Companies(Incorporation) Second Amendment Rule, 2019:

COMPANIES INCORPORATED AFTER 18TH MARCH 2019, WITH AN AUTHORISED CAPITAL OF RS.15,00,000/- FEE ON INC-32 (SPICE) IS NOT APPLICABLE. Currently the limit is Rs.10,00,000/-

In case of shifting of registered office of a company from one State/Union Territory to another, the company have to advertise in the Form No.INC.26 in the vernacular newspaper in the principal vernacular language in the district and in English language in an English newspaper with the widest circulation in the state in which the registered office of the company is situated.

By way of amendment, the phrase “with the widest circulation” is substituted with “with wide circulation“.

Companies Incorporation – Amendment in Rules

Companies Incorporated before December, 2017 needs to file INC-22A to make their status Active

Ministry of Corporate Affairs vide notification dated 21st February, 2019 amended Companies (Incorporation) Rules, 2014 which require Companies Incorporated on or before 31st Decemeber, 2017 to file Active Company Tagging Identities and Verification (Form ACTIVE) on or before 25-04-2019.

Companies which are not filed Annual Returns and Financial Statements up-to Financial Year 2017-18 (MGT-7,AOC-4 etc) shall be restricted from filing Form ACTIVE. In the Form ACTIVE also you need to mention the Service Request Number (SRN) of Form MGT-7 & Form AOC-4 of Financial Year 2017-18.

The Companies which have been Struck-off or are under the process of Striking off or under liquidation or amalgamated or dissolved SHALL NOT be required to file Form – ACTIVE.

In case Company doesn’t file FORM ACTIVE, the company shall be marked as ACTIVE – non-compliant on or after 26th April, 2019. The following event based information and changes SHALL NOT be accepted in case of non-filing of Form ACTIVE:

  1. Change in Authorised Capital – Form SH-07
  2. Change in paid-up capital – Form PAS-03
  3. Change in Director except cessation – Form DIR-12
  4. Change in Registered Office – Form INC-22
  5. Amalgamation, Demerger – Form INC-28

The Company can file Form ACTIVE on or after 26-04-2019, and make the status of the Company Active – Compliant on payment of fee of Rupees Ten Thousand.

The Company had to upload photographs of the registered office (both external building and inside office showing therein at least one director who has affixed his/her Digital Signature in INC-22A).

Companies Incorporated before December, 2017 needs to file INC-22A to make their status Active