Direct Taxation
As per Finance Act 2020, Section 206C (1H) will be applicable from 1st October2020
Amidst various changes brought about in the Finance Bill, 2020, introduction of Section 206C (1H) is a welcome step to curb and track usage of unaccounted money. The Section requires the seller to collect tax at source on sale of certain goods, details of which shall act as data centers for the Government to track high value transactions and create audit trail of buyers procuring goods without disclosure in their books of accounts. Kindly note provision of Section 206C (1H) are applicable from 01.10.2020 as provided in Finance Act, 2020.
Detailed explanation of Provision of the act is given in the tabular format:
| Levy | Tax Collected at Source |
| Section | 206C(1H) of the Income Tax Act, 1961 |
| Applicable | For those assesses whose Gross Turnover or Receipts or Sale from his business (Exclusive of GST) was more than Rs 10,00,00,000/- (Ten Crores) during F.Y 2019-20. |
| Applicability on | Any amount received as consideration on Sale of Goods |
| Effective from | 01/10/2020 |
| Rate of TCS | 0.10% |
| If PAN of Buyer of goods is not available |
1% |
| Threshold |
|
| Provisions not applicable if Buyer is any of them: |
Or any other person as prescribed by Central Government.
|
| Provisions of this section is not applicable: |
Then TCS under this section will not be collected.
|
Income Tax Due date calendar for September 2020
| Due Date | Purpose | Period | Description |
| 7th Sep | TDS /TCS Liability Deposit | Aug‘20 | Depositing TDS/ TCS liability |
| 14th Sep | TDS Certificate (Form 16B) |
Jul‘20 | Issuance of TDS certificate for Tax deducted under section 194-IA** |
| 14th Sep | TDS Certificate (Form 16C) |
Jul‘20 | Issuance of TDS certificate for Tax deducted under section 194-IB*** |
| 14th Sep | TDS Certificate (Form 16D) |
July‘20 | Issuance of TDS certificate for Tax deducted under section 194-M*** |
| 15th Sep | PF/ESI Payment | Aug’20 | Depositing contribution towards PF/ESI |
| 15th Sep | Advance Tax Payment | Jul to Sep’20 | Second instalment for AY 2021-22 |
| 15th Sep | Due date for furnishing of Form 24G |
Aug’20 | Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of Aug 2020 has been paid without the production of a Challan |
| 25th Sep | PF Return Filing | Aug’20 | Filing PF return for the month of Aug 2020 |
| 30th Sep | TDS Challan cum Statement in case of Section 194IA, 194IB and 194-M |
Aug‘20 | Furnishing of challan-cum-statement under Section 194IA, 194IBand 194-M |
| 30th Sep (extended because of COVID-19 outbreak in the month of March) |
Capital gains exemption for FY 2019-20 |
FY 2019-20 | Last date to make investments for capital gains exemption for FY 2019-20 |
| 30th Sep | Return of income for the assessment year 2019-20 for all assessee |
AY 2019-20 | The due date for filing of return of income under section 139 for the assessment year 2019-20 has been extended to September 30, 2020 vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No. 35 /2020, dated 24-06- 2020 and Notification No. 56/2020, dated 29-07-2020. |
*** 194-IB- TDS on Rent paid by Individual /HUF to any resident exceeding fifty thousand rupees p.m** 194-IA- TDS on payment made by the person transferring Immovable property valuing more than fifty lakh rupees.
194-M–TDS on contractual payments made by Individual/HUF to any resident exceeding fifty lakh rupees
Indirect Taxation
GST: Extension of Due date of compliance under section 171 till 30th Nov 2020
The Central Board of Indirect Tax and customs have stated in Notification 65/2020 that any time limit for completion or compliance of any action, by any authority, has been specified in, or prescribed or notified under section 171 of the said Act, which falls during the period from the 20th day of March, 2020 to the 29th day of November, 2020, and where completion or compliance of such action has not been made within such time, then, the time-limit for completion or compliance of such action, shall be extended up to the 30th day of November, 2020.
Last date to file GSTR 4 for FY 2019-20 extended to 31 October 2020
The government has extended the due date for filing annual return by composition dealers for 2019-20 till 31st October 2020. The Central Board of Indirect Taxes and Customs (CBIC) issued a notification, extending the deadline for filing GSTR-4 annual returns for 2019-20 by composition dealers from 31st August 2020 to 30th October 2020.
Launch of GSTR-2B for the month of July 2020
GSTR-2B is an auto-drafted ITC statement which will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1, 5 (non-resident taxable person) and 6 (input service distributor).
It is a static statement and will be made available for each month, on the 12th day of the succeeding month.
It is expected that GSTR-2B will help in reduction in time taken for preparing return, minimizing errors, assist reconciliation & simplify compliance relating to filing of returns.
Key features in GSTR-2B which would assist taxpayers in return filing are as under:
It contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers. This is not available with the release of GSTR-2B for the month of July and will be made available shortly.
A summary statement which shows all the ITC available and non-available under each section. The advisory given against each section clarifies the action to be taken by the taxpayers in their respective section of GSTR-3B.
Document level details of all invoices, credit notes, debit notes etc. is also provided both for viewing and download.
GSTR-2B for the month of July 2020 has been made available on the common portal on trial basis.
Since, this is the first time that the statement is being introduced, taxpayers are advised to refer to GSTR-2B for the month of July, 2020 only for feedback purposes.
All taxpayers are requested to go through their GSTR-2B for July 2020 and after comparing the same with the credit availed by them in July 2020, provide feedback (if any) on any aspect of GSTR-2B by raising a ticket on the self-service portal (https://selfservice.gstsystem.in/).
All taxpayers are advised to view the detailed advisory relating to GSTR-2B on the common portal before using the statement.
Taxpayers can access their GSTR-2B through: Login to GST Portal > Returns Dashboard > Select Return period >GSTR-2B.
GST: Amendment in GST Registration procedure, Aadhar authentication made compulsory
Aadhaar authentication for new goods and services tax (GST) registration has been activated from August 21, which will enhance ease of doing business.
For those opting for Aadhaar authentication, new GST registration will be issued within 3 working days and would not need to wait for physical verification.
However, those not opting for Aadhaar authentication for GST registration would be granted it only after physical verification of the place of business or documentary verification which may take up to 21 working days or more if notice is issued.
Keeping in view the COVID 19 pandemic, the Officer may if the circumstances so warrant opt for asking for additional documents in lieu of the pre-registration for physical verification of the premises. The facility of quick approval of GST registration through Aadhaar authentication can be availed by all Indian citizens. It is not required for tax deductors, tax collectors, Online Information Database Access and Retrieval services (OIDARs), taxpayers having Unique Identification Number (UIN) and non-resident taxpayers.
In both cases, the officer concerned needs to act within a specified time – 3 days for person opting for Aadhaar authentication and 21 days for those opting not to undergo Aadhaar authentication.
Interest on Delayed Payment of GST
The Central Board of Indirect Taxes & Customs (CBIC) today clarified that the Notification No. 63/2020-Central Tax dated 25th August 2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations. However, it has assured that no recoveries shall be made for the past period as well by the Central and State tax administration in accordance with the decision taken in the 39th Meeting of GST Council. This will ensure full relief to the taxpayers as decided by the GST Council.
CBIC explanation came in response to an assortment of comments in the social media with respect to Notification dated 25th August 2020 regarding charging of interest on delayed payment of GST on net liability (the tax liability discharged in cash) w.e.f. 1st September 2020.
GST Due Dates Calendar September 2020
| Applicable form | Due Date | Obligation |
| GSTR 01 (T.O. more than 1.5 Crore) |
11/09/2020 | Monthly (August 2020) |
| GSTR 01 (T.O. up to 1.5 Crore) | 31/10/2020 | Quarterly ( July to Sept 2020) |
| GSTR 3B | 12/09/2020 | Annual Turnover of upto INR 5cr in Previous FY – May 2020 (Group A: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep) |
| GSTR 3B | 15/09/2020 | Annual Turnover of upto INR 5 Cr in Previous FY – May 2020 ( Group B: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi) |
| GSTR 3B | 20/09/2020* | Annual Turnover of more than INR 5cr in Previous FY – August 2020 |
| GSTR 4 | 31/10/2020 | FY 2019-20 for Composition scheme |
| GSTR 5 | 20/09/2020 | Monthly- August 2020 for Non Resident tax payers |
| GSTR 5A | 20/09/2020 | Monthly- August 2020 for NRI, OIDAR service provider |
| GSTR 6 | 13/09/2020 | Monthly- August 2020 for Input Service distributor |
| GSTR 7 | 10/09/2020 | Monthly- August 2020 for TDS deductor |
| GSTR 8 | 10/09/2020 | Monthly- August 2020 for TCS Collector |
| GSTR 9 | 30/09/2020 | FY 2018-19 (Annual Return) |
| GSTR 9A | 30/09/2020 | FY 2018-19 (Composition Annual Return ) |
| GSTR 9C | 30/09/2020 | FY 2018-19 ( GST Audit Form) |
| GSTR CMP-08 | 18/10/2020 | July- Sept 2020 ( Quarterly for Composite scheme delears) |
Ministry of Corporate Affairs (MCA)
Expansion in scope for spending for CSR Activities
The Ministry of Corporate Affairs, through its notification dated 24 August 2020, has expanded thescope for spending for Corporate Social Responsibility (CSR) activities by substituting item (ix) inSchedule VII to the Companies Act, 2013. Item (ix) now reads as below:
“(a) Contribution to incubators or research and development projects in the field of science,technology, engineering and medicine, funded by the Central Government or State Government orPublic Sector Undertaking or any agency of the Central Government or State Government; and
(b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National
Laboratories and autonomous bodies established under Department of Atomic Energy (DAE);
Department of Biotechnology (DBT); Department of Science and Technology (DST); Department ofPharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy(AYUSH); Ministry of Electronics and Information Technology and other bodies, namely DefenceResearch and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR);Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR),engaged in conducting research in science, technology, engineering and medicine aimed atpromoting Sustainable Development Goals (SDGs).”
Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020
The Ministry of Corporate Affairs, vide its notification dated 24 August 2020, has amended the Companies (Corporate Social Responsibility (CSR) Policy) Rules, 2014. The amendment, inter alia, allows companies engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business to undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22 and 2022-23, under their CSR Policy, subject to certain conditions.
Companies (Management and Administration) Amendment Rules, 2020
A company shall not be required to attach the extract of the annual return with the Board’s report in Form No. MGT-9, in case the web link of such annual return has been disclosed in the Board’s report in accordance with sub-section (3) of section 92 of the Companies Act, 2013. According to section 92(3) of the Companies Act, 2013, every company shall place a copy of the annual return on the website of the company, if any, and the web-link of such annual return shall be disclosed in the Board’s report. Ministry of Corporate Affairs (MCA) vide notification dated 28/08/2020 has notified that the Extract of Annual Return (in Form MGT 9) is not required to be enclosed with the Board Report, the Company is only required to disclose the web link in the Board Report where the annual return referred to in sub-section (3) of section 92 is placed for the Financial Year ended 31st March, 2020 & onwards.
Clarification on Extension of Annual General Meeting (AGM) for the financial year ended as at 31.03.2020- Companies Act, 2013
MCA vide General Circular no. 28/ 2020 dated 17th August 2020 has issued Clarification on Extension of Annual General Meeting for the financial year ended as at 31.03.2020- Companies Act, 2013. MCA has received several representations to allow companies to hold their annual general meeting (AGM) for the financial year ended on 31st March, 2020 beyond the statutory period provided in section 96 of the Companies Act 2013.Ministry has already provided digital AGM platform to all the Companies.
- a) Ministry vide General Circular No. 20/2020 has clarified that Companies can hold AGM for the calendar year 2020 through video conferencing (VC) or other audio visual means (OAVM).
- b) Company can voluntary apply for AGM extension.
In view of the above, it is once again reiterated that the companies which are unable to hold their AGM for the financial year ended on 31.03.2020, despite availing the relaxations provided in the G.C. 20/2020 ought to file their applications in form no. GNL-1 for seeking extension of time in holding of AGM for the financial year ended on 31.03.2020 with the concerned Registrar of Companies on or before 29.09.2020.
Micro, Small &Medium Enterprises (MSMEs)
Focusing on MSME, Gujarat launches new Industrial Policy 2020
The Gujarat government, on Friday, announced the new Industrial Policy 2020 for the State, with an expected average annual outlay of up to ₹8,000 crore. Announcing the policy in Gandhinagar, Chief Minister Vijay Rupani stated that the new “Gujarat Industrial Policy 2020 has been formed to further consolidate the growth momentum that the State has achieved over the past few years, and enhance the current growth rate”. The policy stresses on bringing investments for job creation, value-addition, and adoption of state-of-the-art technology, increasing productivity with Industry 4.0 manufacturing, and creating an innovation-driven ecosystem.
Highlights of the policy
- Industries will now be able to get government land for projects on long-term lease up to 50 years (further extendable as per prevailing policy) to industrial enterprises at 6 per cent of the market rate.
- To capitalize on the global pandemic situation, the Gujarat government will provide special incentives to companies planning to relocate their operations from abroad to the State.
- The new policy is silent on large infrastructure and key industries as part of the port-led development of the State, including LNG, petrochemicals, chemicals, iron and steel, and cement; it lays much stress on the MSMEs.
- The new policy enables MSMEs to source foreign technologies with up to 65 per cent of the total cost of technology acquisition being supported by government with a ceiling of ₹50 lakh. The MSMEs will also be eligible for capital subsidy of up to 25 per cent of the eligible loan amount up to ₹35 lakh, while they will be encouraged to install solar rooftop projects on the units with higher tariff for the solar power generated at ₹25 per unit against ₹1.75.
- While the State is preparing a separate Services Sector Policy, the New Gujarat Industrial Policy 2020 offers interest subsidy of up to 7 per cent up to ₹35 lakh per annum for seven years to service sector MSMEs in the areas of financial services, healthcare, audio-visual, and environmental services, among others.
