👉 Companies (Auditor's Report) Second Amendment Order, 2020Pdf(1.37 MB)
http://www.mca.gov.in/Ministry/pdf/CompaniesSecondAmdtOrder_22122020.pdf
👉 Advisory to follow the ICAI Valuation Standards 2018 while conducting any type of Valuation Engagement to ensure uniformity and transparency issued by Valuation Standards Board ICAI - (21-12-2020)
https://www.icai.org/post/advisory-icai-valuation-standards-2018
👉 Advanced Integrated Course on Information Technology and Soft Skills (Advanced ICITSS)-Adv. Information Technology Test - Computer Based Mode on 12th January, 2021 - (22-12-2020)
https://resource.cdn.icai.org/62523exam50565.pdf
👉 Important Announcement for January 2021 Examination and Exam City Change Application. - (23-12-2020)
https://www.icai.org/post/january2021exam-city-change
👉 Result of the online Examination of the Certificate Course on Forex and Treasury Management held on 7th & 8th November, 2020. - (23-12-2020)
https://resource.cdn.icai.org/62528ccmip50576.pdf
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👉🏻RBI Cautions against unauthorised Digital Lending Platforms/Mobile Apps
(RBI cautioned users against unauthorised digital lending platforms and mobile applications that promise quick loans)
👇🏻 👇🏻 👇🏻
http://bit.ly/3aHNMIi
👉🏻Govt issued notification to curb menace of fake GST invoice by fraudsters
(FM Nirmala Sitharaman has said that the Govt has issued a notification to curb the menace of fake GST invoice by fraudsters or fly-by-night firms)
👇🏻 👇🏻 👇🏻
http://bit.ly/2JfLjcM
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⚫Indian economy is recovering faster than expected and may post minor positive growth in the third quarter, but efforts need to be redoubled to fight inflation so that it doesn’t hurt the incipient growth impulses, according to the RBI. Indian economy is pulling out of Covid-19’s deep abyss and is reflating at a pace that beats most predictions.
⚫Pandemic pain over, sales show e-commerce to accelerate in India in 2021. E-commerce firms like Amazon, Flipkart, Myntra and others witnessed successful festive season sales this year.
⚫The issue price for the next series of sovereign gold bonds has been fixed at Rs 5,000/gm of gold. The Sovereign Gold Bond Scheme 2020-21, Series IX will be open for subscription from Dec 28, 2020 to Jan 1, 2021.
⚫The Govt extended a fresh invite to protesting farmer unions for talks, but made it clear that it would not be "logical" to include in the agenda any new demand related to MSP, saying it was out of the purview of three new farm laws. Previous five rounds of talks between the Govt and the unions have failed to break the deadlock with the farmers insisting on the repeal of the three laws and camping at various border points of Delhi for nearly a month now.
⚫The mutated coronavirus strain that’s been spreading in the UK appears to be more contagious and will likely lead to higher levels of hospitalizations and deaths next year. The variant is 56% more transmissible than other strains.
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.NN: 94/2020/CT Dtd. 22.12.2020
Central Goods and Services Tax (FourteenthAmendment) Rules, 2020.
Substitution of Sub-Rule 4A of Rule 8
In the Central Goods and Services Tax Rules, 2017 (here in after referred to as the said rules), in rule 8, for sub-rule (4A), *with effect from a date to be notified*, the following sub-rule shall be substituted, namely: -
“(4A)Every application made under rule (4) shall be followed by—
(a) biometric-based Aadhaar authentication and taking photograph, unless exempted under sub-section (6D) of section 25, if he has opted for authentication of Aadhaar number;
or
(b) taking biometric information, photograph and verification of such other KYC documents, as notified, unless the applicant is exempted under sub-section (6D) of section 25, if he has opted not to get Aadhaar authentication done,
of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01at one of the Facilitation Centres notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this sub-rule.”
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Analysis
Now, the government made it mandatory to take Adhaar based biometric authentication of all the GST applicants to avoid GST evasion and to issue GST no. to genuine parties. It is just the same as we take a SIM from the dealer of the mobile network operator. Being consultant we have to keep a camera and finger-based biometric device to fatch the detail of parties via Adhaar KYC
If the applicant doesn't opt for Biometric-based aadhaar Authentication, then the proper office will take physical verification of the business place
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#INDIRECT TAXATION
• A facility of 'Communication Between Taxpayers' has been provided on the GST Portal, for sending a notification by recipient (or supplier) taxpayers to their supplier (or recipient) taxpayers, regarding missing documents or any shortcomings in the documents or any other issue related to it. This facility is available to all registered persons, except those registered as TDS, TCS or NRTP.
• Features: The counter party taxpayer will receive an e-mail on their registered e-mail address and an SMS on his registered mobile number for all notifications received. An alert will also be given to Recipient/Supplier on logging into the GST portal.
• A taxpayer is allowed to send up to 100 notifications to a single GSTIN for a particular tax period.
• The recipient can upload the details of missing documents (not uploaded by their supplier in his Form GSTR-1) and send a notification to their supplier, using this facility. Supplier can then add such documents directly in their Form GSTR-1, if not reported earlier.
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☀️☀️☀️
#GST Updates
The Government has notified various changes in the GST Act,mostly effective from 1st of January,2020 which includes the following-
✔️Time limit for system-based GST Registration increased
✔️Cancellation of GST Registration in case ITC exceeds than that permissible u/s 16
✔️Restriction on claim of ITC as per Rule 36(4) (reduced from 10% to 5%)
✔️Blocking of GSTR 1 in case of non-filing of GSTR 3B(in addition to blocking of E-wayBill)
✔️Newly inserted Rule 86B-Restriction on Utilization of Input Tax Credit
✔️Validity of E way bill
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MAJOR CHANGES in GST RULES:
Effective from 01st Jan 2021:
•••••••••••••••••••••••••••••••••••••••
A. ITC LIMIT: Maximum permissible limit for ITC over and above GSTR 2A amount is reduced from 10% to 5%.
B. GSTR 1 FILING:
a. Henceforth, mere uploading of invoice in GSTR-1 will not suffice; GSTR1 has to be mandatorily FILED by supplier.
b. GSTR 1 cannot be filed if GSTR 3B is not filed for preceding 2 months / one tax period (under QRMP scheme)
c. CASH PAYMENT: Persons with Taxable Turnover > 50 lakhs per Month / tax period shall pay atleast 1% of tax through cash ledger compulsorily even though balance is available in credit ledger. (New Rule 86B inserted – subject to exemptions)
Effective from 22nd Dec 2020:
•••••••••••••••••••••••••••••••••••••••
A. CANCELLATION OF RC: Now the officer can proceed for cancellation of GSTIN where a taxpayer :
i. avails Input Tax Credit (ITC) exceeding than what is permissible
ii. declares liability in GSTR 3B < GSTR 1 in a particular month
iii. Fails to pay 1% of tax liability as cash if turnover is > Rs. 50 Lakhs (subject to conditions)
B. SUSPENSION OF RC: Now, NO opportunity of being heard shall be given for SUSPENSION OF GSTIN, i.e., GSTIN will be suspended if the officer has reasons to believe that the registration of person is liable to be cancelled.
When a GSTIN is suspended:
i. no refund can be availed by the taxpayer
ii. e-way bill cannot be generated
C. E-WAY BILL: e-way bill travel time reduced:
- Minimum kms. to be covered has been increased from 100 kms/day to 200 kms/day.
D. REGISTRATION:
i. Maximum time to review and grant registration is increased to 7 days instead of 3 days;
ii. the time limit for physical verification for grant of registration is increased to 30 days instead of 7 days.
• where the applicant does not do Adhaar authentication or
• where department feels fit to carry out;.
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Rules changing from January 1: Everything you need to know in detail
As some rules are changing from January 1, 2021, it is necessary to know about them in detail.
Many rules from cheque payment, LPG Cylinder prices, GST to UPI transaction payment are changing from January 1, 2021. As these rules are linked to everyone’s day to day life, therefore you need to know about these rules.
1. Cheque payments
To keep a check on banking frauds, the Reserve Bank of India decided to introduce the ''positive pay system'' for cheque payments. In this system, there may be a requirement of re-confirmation of the key details for the payments above Rs 50,000. This rule of a positive pay system will come into effect from January 1, 2021. The positive pay system facility can be availed by the account holders of their choice. Banks may think about making it necessary for cheques with amounts of Rs 5 lakh and higher.
2. Contactless card transactions limit
From January 1, the RBI has said to increase the limits from Rs 2,000 to Rs 5,000 for contactless card transactions and e-mandates for regularly occurring transactions through cards and UPI. The move by RBI is to enhance digital payment. This will ensure a safe and secure manner, especially during the Covid-19 pandemic. RBI Governor Shaktikanta Das has said that this will depend on the mandate and discretion of customers.
3. Car prices
‘Maruti Suzuki’ India and ‘Mahindra and Mahindra’ will increase vehicle prices from January 1 to cope up with the impact of increasing input costs.
4. WhatsApp to stop working on select phones
Famous messaging service WhatsApp is going to withdraw support from some platforms from January 1. WhatsApp page has mentioned the operating systems that it provides support for and recommends using these devices: Android running OS 4.0.3 and newer; iPhone running iOS 9 and newer; and select phones running KaiOS 2.5.1 newer, including JioPhone and JioPhone 2.
5. Landline to Mobile phone calls
You will be required to prefix '0' for making calls from landlines to mobile phones in the country. The telecom department has asked telcos to work on the required infrastructure by January 1 in order to implement the new system effectively. This move will create enough numbering space for telecom services.
6. FASTag for all four-wheelers
The Union Ministry of Road Transport and Highways has made FASTag mandatory for all four-wheel vehicles from January 1, 2021, through a notification. FASTag will be mandatory for M and N class four-wheelers sold before December 1, 2017. The Central Motor Vehicles Rules, 1989 were also amended for the same. The notification regarding this was issued on November 6, 2020.
7. UPI Payment
From January 1, 2021, the users may need to pay additional charges while making transactions from Amazon Pay, Google Pay, and Phone Pay. National Payments Corporation of India (NPCI) will impose an additional charge on UPI Payment Service (UPI Payment) run by a third-party app beginning from January 1. NPCI has applied a 30 percent cap on third-party apps starting the new year. Paytm will also need to pay this charge.
8. Google Pay web app
Google Pay is all set to kill the user to user payments facility on its web app and add a fee for instant money transfers in January. Till now, the customers were able to manage payments and send money over the mobile app or from pay.google.com. According to the recent notification of Google, the web app site will no longer work from January 2021.
9. LPG prices
On the first day of every month, the oil marketing companies revise the prices of LPG on the basis of crude rates in the global markets.
10. GST-registered small business
The businesses with a turnover of up to Rs 5 crores will require to file only 4 GST sales returns, or GSTR-3B, instead of 12 ( now) from January, as per PTI. This change would impact about 94 lakh taxpayers, i.e. about 92 percent of the entire GST tax base. Now, small taxpayers would be filing only eight returns (four GSTR-3B and four GSTR-1 returns) yearly
Implication of new 26AS Form of Income Tax
Background:
On 18July20, Income Tax Dept informed that new 26AS form is implemented
New 26AS will now include certain high value transactions explained How does it impact u is what this explains
First let's start with basics
Q: What is Form 26AS Form?
Ans: Till now Form 26AS, was a statement that IT dept used to provide u to capture
(a) TDS deducted from u (For eg: Ur company deducting TDS on ur salary)
(b) TCS: Tax collected at source (house property etc)
Now what has changed?
Now Form 26AS, will have a new section known as Section E
Section E will also capture certain high value transactions that you do in a financial year
So at a glance it will help u see you large txns in a year. And we explain below which txns
Q: Tell me which txns & what do u mean by large txns (how large?)
Ans: For eg: if u invest in a mutual fund > 10 lacs in a year. That is a large txn and it will be captured in this statement
Not a single txn, but cumulative in a year if in a single MF u invest > 10 lacs
Q: Ok I get it, tell me more which all txns will be included?
Ans: 14 types of txns are included and here is the full list:
1) Fixed Deposits together in Bank > 10 lacs in a year
2) Credit Card Bills > 10 lacs (in a year) if paid by cheque
and > 1 lacs if paid by cash
3) If u buy bonds > 10 lacs in a year
4) If u buy shares > 10 lacs in a year
5) If u tender shares for buyback > 10 lacs in a year
6) If u buy Fx > 10 lacs in a year
7) If u buy MFs > 10 lacs in a year
8) Real Estate > 30 lacs
9) Purchase of Bank drafts > 10 lacs with cash
10) If u deposit cash in savings bank account > 10 lacs
11) Cash deposts or withdrawals from current account > 10 lacs
And some other routine ones (related to demonetisation)
All this will be shown in Section E in your Form 26AS of your previous years also!
Q: How does all this impact us?
Ans For honest tax payers, it is actually beneficial. Now we have a single point source of all large txns which will help us.
For those who evaded taxes - earlier also IT dept knew it - Now it is putting it in their face and telling IT knows
Q: So does it mean u should do txns < 10 lacs. For eg: Make a FD < 10 lacs or split it to keep those below 10 lakh?
Ans: First, this is not single txn value. Anyways all ur FDs (or other txns as detailed above) will be cumulatively (in a single bank) looked at,
So no point trying to make smaller txns or splitting it.
Q: I am worried will IT dept harass me now, if I spend too much on credit cards?
Ans: Again, honest tax payers need not worry.
But if someone is not paying any taxes saying negligible income but spends > 10 lacs, IT dept will surely Q him on how he can spend so much
Or for eg:, if u say u hv negligible income in ur tax return and make FDs in Bank of > 10 lacs or invest in MFs > 10 lacs , be ready for Q on without income, how can u save so much
In fact for last year, based on this data, people hv been identified already by IT dept
Q: Where can I check my Form 26AS?
Ans:
1) Log in to ur account
incometaxindiaefiling.gov.in
2) Go to My Account -> View Form 26AS
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👉🏻Income Tax dept tightens noose around those ignoring notices
(Income Tax department has launched a nationwide campaign to identify people who have deliberately chosen to ignore the notices calling for enquiry and verification of the tax returns, to catch tax evaders and collect due taxes and penalties from them)
👇🏻 👇🏻 👇🏻
http://bit.ly/3hpOlI7
👉🏻Whether a Chartered Accountant can Certify ITR as Certified True Copy?
(Whether a Chartered Accountant can Certify Income Tax Return (ITR) as Certified True Copy? FaQ of ICAI discussed by CA.Vivek Khurana)
👇🏻 👇🏻 👇🏻
https://bit.ly/2UPjdac
👉🏻Extension of Due Dates - Request ICAI, CCMs for Tweets / Retweets
(Humble Request to CCMs, Plz do have meeting with the authorities at Finance Ministry and Tweet (request for date extension) from ICAI Twitter handle and personal Twitter handles)
👇🏻 👇🏻 👇🏻
https://bit.ly/2WI9cwV
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Communication between Recipient and Supplier Taxpayers on GST Portal
Dated 25/12/2020
A facility of ‘Communication Between Taxpayers’ has been provided on the GST Portal, for sending a notification by recipient (or supplier) taxpayers to their supplier (or recipient) taxpayers, regarding missing documents or any shortcomings in the documents or any other issue related to it. This facility is available to all registered persons, except those registered as TDS, TCS or NRTP.
The main features of this facility are summarized as below:
A.How to use the facility on GST Portal : Taxpayers can send notification, view notification, send reply and view replies to the notifications on their dashboard after login.
a.To send notification navigate to - Services > User Services > Communication Between Taxpayers > and select Compose option.
b.To view any new notification received or any reply received select Inbox (Notification & Reply Received) option.
c.To view any new notification sent or reply sent select Outbox (Notification & Reply Sent) option.
B.How to send a Notification
a.While composing a notification under Send New Notification tab, select the Supplier option to send notification to a Supplier, otherwise select Recipient.
b.In the Document Details section, select the Action Required by Supplier/ Recipient from the drop-down list and enter required details.
c.Up to fifty documents can be added in a notification.
d.The sender can also add Remarks (upto 200 Characters) in the box provided for the same.
C. Some other features
a. The counter party taxpayer will receive an e-mail on their registered e-mail address and an SMS on his registered mobile number for all notifications received.
b. An alert will also be given to Recipient/Supplier on logging into the GST portal.
c. A taxpayer is allowed to send up to 100 notifications to a single GSTIN for a particular tax period.
d. The recipient can upload the details of missing documents (not uploaded by their supplier in his Form GSTR-1) and send a notification to their supplier, using this facility. Supplier can then add such documents directly in their Form GSTR-1, if not reported earlier.
e. The functionality to upload and download the documents will be made available soon.
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