MASTER UPDATES

MASTER UPDATES

MASTER UPDATES

1️⃣ Income Tax:*
*Cost Inflation Index* has been notified by CBDT for *FY 2020-21* to be “301”.
2️⃣ Goods and Services Tax:*
 *Recommendations made by 40th GST Council Meeting:*
❇️ *Late Fee for non-filing of GSTR-3B* for the tax period from *July’17 to Jan’20* has been *waived* in case of *NIL* tax liability and *reduced to Rs. 500* maximum *per return* if there is any liability.
❇️ *No/reduced late fee facility* can be availed for the period from *July’20 to Sept’20*.
❇️ Applicability of *reduced rate of interest @ 9%* is extended till *30.09.2020* for taxpayers having *turnover upto Rs. 5 Crores* and return is *not filed* till extended due date (30th June or 6th July 2020).
❇️ Due date of Filing *GSTR-3B Return* for the month of *May, June and July 2020* has been extended till *September, 2020*.
❇️ GST Registration *cancelled till 12.06.2020* can be *restored* by filing of *revocation application* upto *30.09.2020* (earlier it was 30.06.2020).
*Note- These recommendations shall be effective from the date of notification*
 Now *NIL Form GSTR-3B* can be filed *through SMS* as well as through online mode on GST Portal (For detailed instruction, refer *FAQs released* by Department).
 E-way bills  *generated on or before 24.03.2020* and validity of which has been *expired on or after 20.03.2020*, in that case *validity of e-way bill* have been extended *till 30.06.2020*.
3️⃣ Corporate & Allied Laws:*
 *Amendment made in Insolveny and Bankruptcy code* (IBC) –  *No application* for *initiation of corporate insolvency resolution* process of a corporate debtor be *filed* for any *default arising on or after 25.03.2020* for next *6 months*.
*B. KEY PRACTICAL TAKE-AWAYS:*
1️⃣  Income Tax:*
 To compute *Advance Tax for FY 20-21*, must check income tax rate to be applied to *companies* and if your company is deciding *to take 22% tax rate*, in that case some *deductions u/s 35, 35AD, 32AC and additional depreciation u/s 32 etc.* and *unabsorbed depreciation* and *carry forward loss* related to these provisions shall not allowed.
 if your company is *going with the above tax rate*, *MAT* will *not be applicable* and in that case *MAT Credit of earlier years* will *not be able to claimed*.
 To compute *Advance Tax* for FY 20-21, consider *reduced MAT Rate* of 15%.
2️⃣ Goods & Services Tax:*
 If you have paid *GST on advance received* against future *supply of services*, show it in *tax liability (advance received) box of GSTR-1* and when you raise *final invoice* in that case this should be *adjusted with GST paid* on advance and to be *shown in B2B/B2C supplies* as well as.
3️⃣ Corporate & Allied Laws:*
 *Internal Financial Control (IFC)* Report is *not* required for *One Person Company (OPC)*, *Small Company* and *Private Company* having *turnover less than Rs. 50 Crores* and *borrowings less than Rs. 25 Crores* at any point of time during the FY.
*C. UPCOMING DUE DATES:*
1️⃣ Income Tax:*
 *30.06.2020* is the due date *to file Form 61A (SFT Compliance)* in case you have such *Significant Financial Transactions* such as *issuance of equity shares for more than INR 10 lakhs*.
*Note -* In case of *no such SFT transaction*, *Tax Audit assessees* are at a mandate *to file “Preliminary SFT Reponse” at e-filing portal* by said due date.
 *15.06.2020* is the due date *to pay Advance Tax (1st Installment)* for FY 2020-21.
*30.06.2020* is the due date *to file TDS/TCS Returns for Q4 (F.Y. 2019-20)*.
 *30.06.2020* is the due date *to file Belated ITR/ Revised ITR for FY 2018-19*.
*Note -* *ITR for FY 2017-18 cannot be filed* now as the due date to file lapsed.
2️⃣ Goods and Services Tax:*
 *GSTR-3B Due Date:*
✅ *29.06.2020* for *Feb and March* and *30.06.2020* for *April* month for the taxpayers having *turnover more than 1.5 crores* and *upto Rs. 5 Crores*.
✅ *30.06.2020/03.07.2020/06.07.2020* for *Feb, March and April month* for the taxpayers having *turnover upto Rs. 1.5 crores*.
## *30.06.2020* is last date for the month of *Feb, March and April 20 to file GSTR-1 for all taxpayers*.
3️⃣ *Corporate & Allied Laws:
# MCA has announced a *“Moratorium Period” from 01.04.2020 to 30.09.2020* for filing of *ROC Forms and no additional fees* will be *charged for such period* due to late filing of any form due within this period
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