Professional Updates

Goods and Service Tax Network launched auto drafted ITC Statement Form GSTR-2B. GSTR-2B will help in determining amount of eligible credit to some extent. GSTR-2B will be generated for every taxpayer, on the basis of the information furnished by their suppliers, in their respective Form GSTR-1 (return of outward supply) & GSTR-5 (non-resident taxable person) and Form GSTR-6 (input service distributor)) filed by ISD.  What is GSTR-2B ? What GSTR-2B will contain? When GSTR-2B will be generated?  GSTR-2B is an auto-drafted ITC statement which is generated for every normal taxpayer on the basis of the information furnished by his suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). The statement indicates availability and non-availability of input tax credit to the taxpayer against each document filed by his supplier. It consists of all documents filed by suppliers/ISD in their Form GSTR-1, 5 & 6, between 00:00 hours

MGT-9 not required! E xtract of annual return mgt-9 applicability Extract of annual return MGT-9 required or not? A million dollar question finally resolved! Ministry of Corporate Affairs has amended Companies (Management and Administration) Amendment Rules 2014, vide notification no G.S.R. 538 (E) dated 28th August 2020. As per the amendment MCA has done away with the requirement of attaching extract of annual return in Form MGT-9 to the boards report, if the web link of such annual return has been disclosed in the Board’s report. Mgt-9 requirement :-  Text of the notification: mgt-9 mgt9  In the Companies (Management and Administration) Rules, 2014, in rule 12, in sub-rule (1), the following proviso shall be inserted, namely:-  “Provided that 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 secti

CBIC issued Notification No. 63/2020 – Central Tax dated 25th August, 2020. Vide this notification CBIC has notified proviso to section 50(1) of the CGST Act, 2017, with effect from 01st September 2020. The proviso provides that, interest on delayed payment of goods and services tax (GST) will be charged on net tax liability with effect from 1st September 2020* . However, the amendment is not in line with what was decided by the GST Council in its 39th meeting held in March. GST councils had decided to charge interest on net tax liability retrospectively w.e.f. 01st July 2017.  *The Finance Bill 2021 proposes to amend Section 50 of the Central Goods and Services Tax (CGST) Act to substitute the proviso to sub-section (1) so as to charge interest on net cash liability retrospectively with effect from the July 1, 2017. CBIC assured taxpayers by press release that , even though prospective amendment of the proviso, no recoveries shall be made for the past period as well by the central and

MCA issued notification no G.S.R. 526(E) dated 24th August 2020, to amend Companies (Corporate Social Responsibility Policy) Rules, 2014. The amendment provides that Expenditure on research and development related to Covid-19 to be part of CSR activities. Text of the notification is as follows: In the Companies (Corporate Social Responsibility Policy) Rules, 2014 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), in clause (e), the following proviso shall be inserted, namely:- "Provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may 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 subject to the conditions that: (i) such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix)

GST registration only after physical verification of the premises if aadhaar authentication not opted CBIS issued notification to amend the Central Goods and Services Tax Rules, 2017. As amended businesses registering under GST can opt for Aadhaar authentication to get GST registration within three working days, if no notice has been received within 3 working days from the date of application. However, if applicant fails to undergo authentication of Aadhaar, GST registration would be granted only after physical verification of the premises of the business, which may take up to 21 days. The CBIC, vide notification no 62/2020 dated 20th August 2020, said when an applicant for GST registration opts for authentication of Aadhaar number, he shall, with effect from August 21, undertake the aadhaar authentication while submitting an application. Important points w.r.t aadhaar authentication : Persons already registered on GST portal are not required to undergo Aadhar authentication at this st

Profession tax registration mandatory for new companies, returns based on liability New companies incorporated through SPICe+ and thereby have obtained Maharashtra PTRC registration numbers will have to file their first PTRC return from the month in which they liable to pay profession tax. The Ministry of Corporate Affairs introduced spice+ form for incorporation of companies, which provides multiple services such as pan, tan, epf , esic registrations etc. Spice+ forms mandate Registration for Profession Tax shall for all new companies incorporated in the State of Maharashtra w.e.f 15th February 2020 irrespective of the liability to deduct profession tax from salary of the employees. Earlier Companies have to apply for profession tax registration only if the Company is liable to deduct and pay profession tax of employees. The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 also amended to notify "a company, which has been incorporated under the pro

MCA has not given extension of annual general meeting (AGM) for the financial year ended as at March 31, 2020.  MCA has issued General Circular No. 28/2020 dated 17th August 2020 to clarify that time limit to hold annual general meeting has not been extended. It is also clarified that, The Companies can use relaxations in General Circular No. 20/2020, dated 05th May 2020, regarding holding of AGM through video conferencing (VC) or other audio visual means (OAVM).  The companies which are unable to hold their AGM for the financial year ended on 31st March 2020, need to file their application in Form No GNL-1 for seeking extension of time in holding of AGM for the financial year ended on 31st March 2020 with the concerned Registrar of Companies. Companies seeking extension shall file GNL-1 on or before 29th September 2020.  The Registrars of Companies are advised to consider all such applications (filed in Form No. GNL-1) liberally in view of the hardships faced by the stakeholders amid

Option to e-verification of old ITRs for AY 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 has been re-enabled as per circular 13/2020 dated 13th July 2020.  The CBDT has given one-time relaxation vide circular 13/2020 dated 13th July 2020 , to verify pending Income-tax returns , filed for the Assessment Years 2015-16 to 2019-20, which are pending for processing at CPC due want of valid ITR-V form. Taxpayers are allowed to verify such returns either by sending signed copy of physical ITR-V form or through prescribed EVC/OTP modes by 30-09-2020 This option will be available up to 30th September 2020. Avail the onetime relaxation and e-verify your pending ITRs.  Process to e-Verify ⏩Post Login ⏩ My Account ⏩ e-Verify Return Data of Previous Years  ⏩ Click 'e-Verify' ⏩ Select the verification option and verify the Return Data.

Validity of Udyog Aadhar registration Ministry of MSME has issued clarification on validity of  existing MSME registrations/ Udyog Aadhar registrations (UAM) on 06th August 2020 vide office memorandum no No. 2/1(5)/2019- P&G/Policy (pt. IV). Important clarifications as per this office memorandum are as follows: 1. Validity of existing Udyog Aadhar and  EM Part II (UAMs) as issued till 30th June, 2020 It is clarified and emphasized that all the existing EM Part II and UAMs obtained till 30.06.2020 shall remain valid till 3lst March 2021**. Same also notified vide  Para (3) of Clause 7 of the Notification No. S.O. 2119 (E) dated 26.6.2020. * * Ministry of Micro, Small and Medium Enterprises has issued an amendment to the original notification No. S.O. 2119 (E) dated 26.06.2020 vide 2347(E) dated 16.06.2021, extending the validity of EM Part-II and UAMs from 31.03.2021 to 31.12.2021 . 2.Editing / updating of the existing registration details:  It is clarified that the existing Udyog A

RBI vide notification DOR. No.BP.BC/7/21.04.048/2020-21 dated 06 August, 2020 has revised instructions for opening current accounts by banks for customers having cash credit or overdraft facility from the banking system.The instructions are applicable to all Scheduled Commercial Banks and payment banks. Here is the notification of RBI guideline for opening current account:  Opening of Current Accounts by Banks - Need for Discipline Please refer to the circular DBR.Leg.BC.25./09.07.005/2015-16 dated July 2, 2015 on the subject. The instructions on opening of current accounts by banks have been reviewed and the revised instructions are as under: i. No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account. ii. Where a bank’s exposure to a borrower is less than 10 per cent of the exposure of the banking system to that borrower, w

Charity Commissioner of Maharashtra has again further extended due date for submitting trust accounts for the FY 2019-20. Extended due date vide Circular No 584 dated 29/12/2020 is 31st January 2021* . Earlier extended due date was 31st December 2020 vide circular no 583. The trustee shall get the accounts audited within six months of the date of balancing the accounts (generally 31st March) under section 33 (1) of the Maharashtra Public Trusts Act 1950 , and the auditor shall forward a copy of the balance sheet and the income and expenditure account along with his audit report to the Deputy or Assistant Charity Commissioner within a fortnight of the audit online on the website of the Charity Commissioner. Take benefit of such extension and ensure timely compliance. Several thousand trusts and societies have been de-registered by  the charity commissioner on account of failure to submit annual audited accounts. Here is the circular 584 of extension of due date for submission of trust a