The Central Board of Direct Taxes (CBDT), in its latest Circular, clarifies that
*Any cash sale of an amount of Rs. 2 lakh or more by a cultivator of agricultural produce is prohibited under section 269ST of the Act.*
Further, the provisions relating to quoting of PAN or furnishing of Form No.60 under Rule 114B of the Income Tax Rules do not apply to the sale transaction of Rs. 2 Lakh or less.
In other words, the cash sale of the agricultural produce by its cultivator to the trader for an amount less than Rs 2 Lakh will not –
1. Result in any dis allowance of expenditure u/s. 40A (3) of the Act in the case of trader.
2. Attract prohibition u/s. 269ST of the Act in the case of the cultivator; and requires the cultivator to quote his PAN/ or furnish Form No. 60.
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Key Points From 23rd Council Meeting:
1. 178 items have been moved from 28 per cent to 18* like chewing! gums, Detergent, marble floorings, toiletries to 18 per cent from existing 28 per cent.
2. *Restaurants in starred-hotels will charge 18 per cent* tax with input tax credit, those in *lower category hotels to charge 5 per cent* GST without ITC.
3. *Tax rate on 13 items reduced from 18 per cent to 12 per cent*, while tax rates have been reduced to 5 per cent on five items from 18 per cent. Besides, rate on 6 items lowered to zero from 5 per cent.
Composition Fee for Manufacturers & Traders made uniform at 1%. Restaurants to be continued at 5% under Composition or 5% and threshold Limit has been increased to Rs.2 Crores including exempt supplies.
4. *Late Fees for the months of July, August and Sept, 2017 for GSTR-3B waived in all such cases*. It will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented.
5. *For subsequent months*, i.e. October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day eachunder CGST & SGST Acts).
6. A facility for *manual filing of application for advance ruling* is being introduced for the time being.
7. *Exports of services to Nepal and Bhutan* have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Creditin respect of goods or services used for effecting such exempt supply of servicesto Nepal and Bhutan.
8. *Due dates for furnishing the following forms shall be extended as under*: -GST ITC-04 for the quarter July-September, 2017 25.10.2017 ; GSTR-4 for the quarter July-September, 2017 From 18.10.2017 To 24.12.2017; GSTR-5 for July, 2017 To 20.08.2017 or 7 days from the last date of registration whichever is earlier 11.12.2017; GSTR-5A for July, 2017 20.08.2017 To 15.12.2017; GSTR-6 for July, 2017 13.08.2017 To 31.12.2017; TRAN-1 30.09.2017 To 31.12.2017 (One-time option of revision also to be given till this date)
9. *For Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued* to every Foreign Diplomatic Mission / UN Organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.
10. *Taxpayers with annual aggregate turnover uptoRs. 1.5 crore* need to file GSTR-1 on quarterly basis as per following frequency:- Jul- Sep 31st by Dec 2017; Oct- Dec 15th by Feb 2018; Jan- Mar 30th by April 2018
11. *Taxpayers with annual aggregate turnover more than Rs. 1.5 crore* need to file GSTR-1 on monthly basis as per following frequency: -Jul- Oct 31st by Dec 2017; Nov by 10th Jan 2018; Dec by 10th Feb 2018; Jan 10th by Mar 2018; Feb 10th by Apr 2018; Mar 10th by May 2018.
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#Economy:The country’s Index of Industrial Production was 3.8% in September, compared with the revised 4.5% in August and 5.7% in September last year. This slowing comes on the back of year-on-year fall in output in a number of sectors. These include textiles and apparel, electrical equipment, rubber and plastic products, electrical equipment and consumer durables Data by the Central Statistics Office showed the, April-September IIP was down 11.7% compared with the first six months of 2016-17.
#Finance:Criticised for the increase in compliance burdens on assessees under the GST, the Council extended the dates for filing of returns. It also deffered sending of the input and detailed input-output returns, till a committee headed by the GST Network chairman simplifies these. Also, filing of GSTR-3B, stands extended to the entire current financial year; it was till December. All taxpayers would file returns in the GSTR-3B form along with payment of tax by the 20th of the succeeding month till March, 2018.
#The Employees Provident Fund Organisation may cut the rate of interest on provident fund savings from 8.65% in 2016-17 to 8.5% in 2017-18 fiscal year.
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📺 *Updates*
➡1. Income from letting out property was to be taxed as business income if letting out was main object of assessee
Oberoi Investments (P.) Ltd.
v. Assistant Commissioner of Income-tax, Circle-5, Kolkata*
➡2. Sum received in lieu of transfer of business leads couldn’t be considered as a slum sale transaction
L & T Finance Ltd. v. Deputy Commissioner of Income-tax
➡3. EOUs to pay back the BCD exemption against DTA sale of service
🙏�Thank you🙏�
Have a nice day