⚫Union Agriculture Minister said the Govt was ready to talk to the agitating farmers "even if they come at midnight", but not about their demand to repeal the three new laws which are the bone of contention.
⚫The general insurance industry is expected to clock 7-9% growth in gross direct premium income during FY22.This will be supported by growth in health segment and uptick in motor segment.
⚫The RBI has given “in-principle” approval to Centrum Financial Services Ltd to set up a small finance bank, which will take over the beleaguered Punjab and Maharashtra Cooperative Bank.
⚫Vodafone Idea plans to raise Rs 7,000 crore via QIP.
⚫Vaccines have been found to reduce chances of hospitalisation by 75-80% in studies done among health workers, underlining the role of vaccination in protecting against Covid-19.
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👉Minutes of the Monetary Policy Committee Meeting, June 2 to 4, 2021
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51754
👉RBI grants “In-principle” approval to Centrum Financial Services Limited to set up a Small Finance Bank
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51752
👉It’s a bank, PMC will be part of, it’s not takeover, says Centrum's Jaspal Bindra
https://economictimes.indiatimes.com/industry/banking/finance/banking/its-a-bank-pmc-will-be-part-of-its-not-takeovcmser-says-centrums-jaspal-bindra/articleshow/83657489.
👉Exchange rate Notification No.54/2021-Cus (NT) dated 17.06.2021-regarding
https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2021/cs-nt2021/csnt54-2021.pdf
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TDS UNDER SECTION 194Q V/S TCS UNDER SECTION 206C(1H)
👉 Who is liable to deduct TDS u/s 194Q?
Buyer will deduct TDS of seller
As per section 194Q, When a Buyer who is responsible for paying any sum to any resident seller for purchase of any goods of the value or aggregate of such value exceeding Rs.50 Lakhs during the year, he shall deduct TDS @ 0.10%, on amount exceeding Rs.50 Lakhs. In non-PAN/ Aadhaar cases, the rate shall be 5%.
TDS u/s 194Q = 0.1% of [Total Purchases (Minus) ₹ 50 Lakhs]
👉 From when does provision of section 194Q are applicable?
The provisions of section 194Q shall be applicable from 1st July 2021.
👉 To whom Section 194Q is applicable?
Section 194Q is applicable to those Buyer whose total sales, gross receipts or turnover from the business carried on by him exceed Rs.10 crore during the financial year immediately preceding the financial year in which the purchase of goods is carried out.
Which means for FY 2021-22, Buyer means person whose total sales, gross receipts or turnover from business exceeds Rs.10 crore in the FY 2020-21.
Also the threshold limit of Rs.10 crore as well as Rs.50 Lakhs shall be computed annually on PAN basis and not GSTIN basis.
👉 Who is liable to collect TCS u/s 206(1H)?
Seller will collect TCS from buyer
As per Section 206(1H) sellers of goods whose total sales, gross receipts or turnover from the business carried on by it exceed 10 crore rupees during the financial year immediately preceding the financial year shall be liable to collect such TCS at a rate 0.1% on consideration received from a buyer in a previous year in excess of 50 lakh rupees. In non-PAN/ Aadhaar cases, the rate shall be 1%.
TCS u/s 206(1H) = [Total Sale Receipt (Minus) ₹ 50 Lakhs]
👉 When situation arises wherein both sections become applicable then whether TCS u/s 206C(1H) is to be collected on receipt of sales consideration above 50 Lakhs or TDS u/s 194Q is to be deducted by the buyer on purchase of goods exceeding Rs.50 Lakhs?
Section 206C(1H) shall not apply if the buyer is liable to deduct TDS under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount.
And Section 194Q says provisions of section 194Q shall not apply to a transaction on which––
(a) TDS under any of the provisions of this Act is deducted or
(b) TCS under the provisions of section 206C other than 206C(1H) applies.
So we can conclude that Section 194Q supersede Section 206C(1H), thus primary responsibility to deduct TDS is of buyer but if buyer fails to deduct TDS in this case will make Seller liable for TCS.
We would suggest you to obtain a declaration from buyer at the time of purchase itself stating that they would deduct and deposit TDS u/s 194Q.
👉 What if buyer fails to deduct TDS u/s 194Q?
As per Section 40a(ia) – If buyer fails to deduct and deposit TDS, purchase expenditure to the extent of 30% will be disallowed and shall be subject to Income Tax at applicable tax rate.
👉 Is TDS u/s 194Q applicable on Import Purchases as well?
No.
Since the provision of section 194Q, are applicable when a Buyer is responsible for paying any sum to any resident seller for purchase of any goods. TDS u/s 194Q is not to be deducted from Import purchases.
👉 Is TDS u/s 194Q applicable on purchase of capital goods?
“Goods” as per CGST Act 2017 means any kind of movable property other than services. Thus TDS u/s 194Q is applicable on purchase of capital goods.
👉 Whether TDS u/s 194Q is to be deducted on the total invoice value including the GST?
CBDT vide Circular No. 23/2017, dated 19-7-2017, has clarified that GST on services to be excluded while deducting TDS. However no such clarification is received about GST on goods. Also CBDT via its Circular No. 17, dated 29-09-2020 in respect of Section 206C(1H) has clarified to include GST on goods for collecting TCS. Thus we would recommend you to deduct TDS u/s 194Q on GST amount as well till the clarification is received from CBDT.
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7 GST Circulars issued today providing clarity on the following issues:
1. Clarification regarding applicability of GST on supply of food in Anganwadis and Schools
2. Clarification regarding applicability of GST on the activity of construction of road where considerations are received in deferred payment (annuity)
3. Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination)
4. Clarification regarding GST rate on construction services provided to a Government Entity w.r.t construction of a Ropeway on turnkey basis
5. GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS
6. Clarification regarding GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans
7. Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System
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⚫Indian ultra high net worth individuals are expected to invest up to $30 billion in tech startups in the country by 2025, reflecting the growing investment opportunity for home grown tech ventures.
⚫Funds parked by Indian individuals and firms in Swiss banks, including through India based branches and other financial institutions, jumped to over Rs 20,700 crore in 2020 on a sharp surge in holdings via securities and similar instruments, though customer deposits fell.
⚫The Indian online gaming segment is expected to more than double at Rs 29,000 crore with the number of gamers rising to 65.7 crore by FY 2025.
⚫Micro-finance loans in India rose by 10% to Rs 2.53 trillion in Q4 FY21. ⚫The Govt will sell 26% out of the total 54.03% stake In BEML, it holds in the company along with transfer of management control.
⚫Govt proposes one year retention for Air India staff after privatisation.
⚫The Centre told the Supreme Court that the CBSE will be adopting a 30:30:40 formula for evaluation of marks of class 12 students based on results of class 10, 11 and 12 respectively.
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👉🏻MSME Ministry extends validity of Udyog Aadhaar from March 31 to Dec 31, 2021
(The extension of the validity deadline would facilitate MSMEs registered under to avail benefits of the provisions under various existing schemes and incentives including Priority Sector Lending benefits of MSME)
👇🏻 👇🏻 👇🏻
https://bit.ly/35x5mLp
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