A.Bhardwaj & Co

GST
Finance Ministry seeks industry views on changes in monthly GST payment form
Delhi : The finance ministry on Friday released a paper suggesting changes in the monthly GST payment form and sought industry comments by September 15. The GST Council in its meeting last month recommended that the changes in GSTR-3B or monthly tax payment form be placed in public domain for seeking inputs and suggestions of the stakeholders. "Accordingly, general public and the trade at large are hereby informed that a detailed Concept Paper on comprehensive changes in FORM GSTR-3B is enclosed. All members of trade/ stakeholders are requested to kindly furnish their views/comments/suggestions on the Concept Paper latest by 15th September 2022 at [email protected] so as to facilitate finalization of the matter," the ministry said.

The due date to file ITR is approaching!
Don’t forget to file ITR for AY 2022-23 before 31st July 2022.
File today and avoid the stress of filing last minute!
Pl visit: www.incometax.gov.in

Updates
1) Filing of updated ITR of FY 2019-20 onwards: Updated Income Tax Return can be filed from the assessment year 2020-21 onwards i.e. for the FY 2019-2020 & FY 2020-2021. Those who have missed their ITR filing for the last 2 years may now file their ITR. Return needs to be filed in form ITR-U along with applicable ITR form - ITR-1 to ITR-7.

2) Various circular for clarification issued dated 6th July as recommended under 47th GST Council Meeting on Fake Invoice Demand and Penalty Clarification, Inverted Duty Refund Clarification, Payment through Electronic Credit Ledger Clarification, Payment through Electronic Cash Ledger Clarification, Deemed Export Refund Clarification.

3) Vide Circular No. 170/02/2022- GST, Dated 6th July 2022, the CBIC has issued clarifications on mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/ blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1.
4) MCA extend deadline to file Annual Return without fine for LLPs for the FY 2021-22 upto 15th July 2022.

:

The Government has notified the recommendations of the 47th GST Council w.r.t. procedures. Some of the important ones are as follows:

• Exemption from filing Annual Return to registered persons whose aggregate turnover in the financial year 2021-22 is upto Rs. 2 crore

• The due date for filing of FORM GST CMP-08 by Composition Dealers for the quarter ending 30th June, 2022 is extended till 31st July, 2022
• The late fees for filing GSTR-4 for FY 2021-22 has been waived till 28th July, 2022
• Time period for issue of Order u/s 73(9) for the FY 2017-18 extended upto the 30th day of September, 2023
• Time period from 1st March, 2020 to 28th February 2022 u/s 54 or 55 to be excluded from calculation of the limitation period for filing refund claim and similarly for recovery of erroneous refund u/s 73(10)
• Automatic revocation of suspension of registration on filing of all pending returns
• No requirement of reversal of input tax credit for exempted supply of Duty Credit Scrips by the exporters
• Transfer of balance available in Electronic Cash Ledger to another distinct person of the same PAN in FORM GST PMT 09.
• Certain changes in GST Invoicing w.e.f. 5th July 2022
• Ineligibility of ITC in case supplier does not issue E-Invoice when it is required to do so
• Changes for exporters under GST e.g. calculation of refund as per FOB value, refund to risky exporters, etc. and no refunds in-case of mismatch between Shipping Bill and GSTR 1.

(Notification No. 10/2022 – Central Tax to Notification No. 14/2022 – Central Tax dated July 5th, 2022).

notifies retrospective amendment to (3)

The Government has notified retrospective amendment to Section 50(3) which provides that interest is payable on the wrongly availed ITC when the same is utilized. This retrospective amendment was introduced in the Finance Act, 2022 but it was provided that it would come with effect from the date to be notified by the Government.

(Notification No. 9/2022 – Central Tax dated July 5th, 2022)

DPT-3 Mandatory Information of Loan to ROC : FAQs

Mandatory Filing of Details of Loan with ROC in brief with some important FAQ’s in relation to DPT-3 with reference to Companies (Acceptance of Deposits) Amendment Rules, 2019 notified by MCA on 22.01.2019.

By Companies (Acceptance of Deposits) Amendment Rules, 2019 : Every Company other than Government Company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in term of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the official Gazette (i.e. 22nd January, 2019) in e-form DPT-3 within 90 days from the date of publication.”.

1. Whether every company needs to file e-form DPT-3 as per rule 16A.

All the Companies (Whether, Small, Non Small, Private, Public, OPC, etc.) required to file DPT-3 after publication of these rules.

2. What is due date for filing of e-form DPT-3 in Rule 16A?

Due date of Filing of e-form DPT-3 in rule 16A is 22nd April, 2019. Because form required to file within 90 days of publication of these rules. (22nd January, 2019 + 90 days)

3. Whether DPT-3 required filing for Secured or Unsecured Loan or Both?

Yes, DPT-3 required for filing for both secured and unsecured Loan.

4. Whether DPT-3 required for ECB received by Company?

As per rule 16A DPT-3 required to file for each and every loan received by Company. Therefore, one can opine that if Company has received ECB in such case Company have to mandatorily file e-form DPT-3.

5. Outstanding Loan and outstanding receipt of money in relation to which period required to be report under this rule.

Outstanding receipt of Money and Loan from 1st April, 2014 to 22nd January, 2019 (i.e. date of publication of notice) is required to report in e-form DPT-3..

6. If Company received loan from Holding Company or Subsidiary Company or Associate Company. Whether company need to file DPT-3.

As per rule 16A DPT-3 required to file for each and every loan received by Company. Therefore, Company required to file e-form DPT-3 even for loan received from H,S and Associate.

7. If a company not having any outstanding loan or outstanding receipt of money as on 22.01.2019 (i.e. date of publication of rules). Whether company need to file e-form DPT-3.

As per rule 16A DPT-3 Every Company other than Government Company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits.

Therefore, one can opine that in the above mentioned situation there is no need to file e-form DPT-3.

8. If some outstanding receipt of money or loan had become due before 01st April, 2014, still continuing and outstanding in record of Company. Whether such outstanding loan or receipt required to report in DPT-3.

As per rule 16A DPT-3 required to file for each and every loan received by Company outstanding as on date of publication of these rules (22.01.2019).

Therefore, one can opine that such outstanding loan is required to report to ROC in e-form DPT-3.

9. If Company received loan after 01st April, 2014 but such loan is not outstanding as on 22.01.2019 (date of rules). Whether company need to report such loan in DPT-3.

As per language of Rule 16A, company has to report outstanding Loan and outstanding receipt of money to Roc in DPT-3. If Company has already paid Loan and such loan is not outstanding in record of Company. There is no need to inform such loan to ROC.

10. If company doesn’t accept loan or doesn’t having any outstanding Loan. Whether need to file DPT-3,

If there is no outstanding Loan or company doesn’t accept any loan there is no need to file e-form DPT-3 with ROC.

Sec. 68 additions not tenable on grounds that relatives gave gift without any occasion: High Court:

[Pendurthi Chandrasekhar v. DCIT [2018] 91 taxmann.com 229 (Hyderabad)]

In the Instant case, additions were made under section 68 on the grounds that assessee had failed to show why, without any occasion, Rs. 73 Lakhs had been gifted by the maternal aunt without any consideration. The appellate authorities also upheld the action of the Assessing Officer. On further apeal, the High Court held in favour of assessee that an occasion is not necessary to accept a gift from a relative. Section 56 does not envisage any occasion for a relative to give a gift, it was almost impermissible for any authority and even for the Court to import the concept of occasion and develop a theory based on such concept.

The Court further held that when donor had given a confirmation letter that she had transferred Rs. 73 lakhs to her nephew as a gift out of natural love and affection, the AO should not have further doubted her. The donor in instant case was assessee's own maternal aunt and was covered within the definition of 'relative' defined under explanation to section 56(2)(v). Therefore, unexplained addition under section 68 with respect to gift of Rs. 73 lakh received by assessee from his maternal aunt was to be deleted.

Income Tax, GST & Indirect Taxes, Corporate Laws, International Taxation - Taxmann Taxmann is the most reliable online source for research on income tax, indirect tax & GST, company law, IFRS, Ind AS & international taxation related information.

Gift received by an individual from HUF isn't exempt: ITAT:

[Gyanchand M. Bardia v. ITO [2018] 93 taxmann.com 144 (Ahmedabad - Trib.)]

The assessee claimed that gift of certain amount received from his Hindu undivided family (HUF) was exempt from tax under section 56(2)(vii). However, the Assessing Officer held that the term 'relative' in Explanation (e) to Section 56(2)(vii) does not include HUF as donor and, therefore, added the impugned amount to assessee's income under Section 68.

On further appeal, the Tribunal held in favour of revenue that as per Explanation to Section 56(2)(vii) members of an HUF are its relatives. Therefore, if HUF receives any sum from any of its member, such sum shall not be chargeable to tax. However, in vice-versa cases when member receives any sum from the HUF, same would be chargeable to tax as the term ‘relatives’ defined under said Explanation does not include HUF as a relative of such individual. The legislative intent is very clear that an HUF is not to be taken as a donor in case of an individual recipient. Thus, the assessee's plea of having received a valid gift from his HUF was rightly declined and impugned addition was to be upheld.

Income Tax, GST & Indirect Taxes, Corporate Laws, International Taxation - Taxmann Taxmann is the most reliable online source for research on income tax, indirect tax & GST, company law, IFRS, Ind AS & international taxation related information.

CBDT withdraws Circular No. 10/2018 on applicability of section 56(2)(viia) for shares issued by company in which public not substantially interested

F. No . 173/616/2018-ITA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(ITA-I Division)

Circular No. 02/2019
New Delhi, the 04 January, 2019

Sub: Withdrawal of Circular No. 10/2018 dated 31.12.2018 on applicability of section 56(2)(viia) of the Income-tax Act, 1961 for issue of shares by a company in which public are not substantially interested- reg.

Reference is invited to the Circular No. 10/2018 dated 31.12.2018 on the captioned subject.

2. It has been brought to the notice of the Board that the matter relating to interpretation of the term “receives” used in section 56(2)(viia) of the lncome-tax Act, 1961 (the Act) is subjudice in certain higher judicial forums.

Further, representations have been received from stakeholders seeking clarification on other similar provisions in section 56 of the Act.

3. Accordingly, the matter has been reconsidered by the Board. Given the fact that the matter relating to interpretation of the term ‘receives’ used in section 56(2)(viia) of the Act is pending before judicial forums and stakeholders have sought clarifications on similar provisions in section 56 of the Act, the Board is of the view that the matter is required to be examined afresh so that a comprehensive circular on the matter can be issued.

4. In view of the above, the Circular 10/2018 dated 31st December, 2018 issued from file No. 173/616/2018-ITA-I is hereby withdrawn and the said circular shall be considered to have been never issued.

5. A fresh comprehensive circular on the subject shall be issued in due course.