✅ Check ICAI Counting Update
https://www.icai.org/post/election2021-from-the-counting-venue
✅ Due Date for GSTR 3B For November - 20th December
✅ Delhi High Court has quashed all Notices issued under Section 148 on or after 1.4.2021. Judgement pronounced on 15/12/2021. Big relief for all & this precedence now shall be followed by all other high courts also.
✅ ICAI Convocation Year 2021-22 scheduled for Members who have been enrolled as a Chartered Accountant (CA) between November, 2019 and August, 2021 and For Rank Holders of CA Final Examination held in July 2021.
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Forthcoming Due Dates and Compliances
1. ITR Non-Audit due dates 31.12.2021
2. Tax audit 15.1.2022
3. Trust compliance by 31.12.2021
4 GST Annual Return filing due date for FY 2020-21 is 31.12.2021
5. Companies ROC complianced (see below)
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GST Notification 39/2021 w.e.f. 01st Jan, 2022
- Aadhar authentication has been made mandatory for Refund application
- Revocation application
w.e.f 1st Jan 2022
- Legal sanctity to 2B w.e.f. 1st Jan 2022 as Section 16(aa) of CGST Act applicable
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🌺 GST Updates
👉 GST Amendment: - Section 16(2)(aa) notified from 1 Jan 2022
(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37
Conclusion- It means from 1st Jan 2022 Input available only as when as come in GSTR-2B
👉 Effects of New Sub-clause 16(2)(aa)
🌻 ITC cannot be availed beyond GSTR-2B
🌻 No concept of Provisional Credit(now 5% ITC Provision applicable but from 1st January no provisional ITC)
🌻 If GSTR-1 is filled by the supplier beyond the cutoff date, then ITC will not be available in the Same month
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✅ Trust Audit & Return
Form 10B - 15th Jan 2022
ITR 7 - 15th Feb 2022
✅The Central Board of Indirect Taxes and Customs (CBIC) has removed the 5% Provisional ITC, Only ITC Reflected in GSTR-2B can be taken from 1st January 2022. The CBIC notified the sections 108, 109, and 113 to 122 of the Finance Act, 2021 to be effective from 1 January 2022.
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ICAI on Tuesday said the decision to refer a bill to amend the law governing chartered accountants to a Parliamentary standing committee was a good step and the institute will put across its concerns over certain provisions of the proposed legislation before the panel.
Pr. CIT incharge of CPC to refund the amount due to the petitioner within two week otherwise grim view will be taken: Bombay High Court. In the case of Rochem Separation Systems India Pvt Ltd Vs. Deputy Commissioner of Income tax.
Section 109 of the Finance Act 2021 made applicable w.e.f 01-01-2022. Section 109 of Finance Act brought sec 16(2) (aa) of the CGST Act. Therefore, now ITC can be claimed only in relation to invoices furnished by supplier in GSTR-1.There will be no additional window of 5% as earlier and it will also rest disputed validity of Rule 36(4).
GST Notification no 39/2021–Central Tax dated 21/12/2021 Applicable w.e.f. 01.01.2022:
Introduction of section 16(2)(aa) to the CGST Act to give powers to the govt to restrict availment of itc to the extent of auto population in GSTR 2B thus paving the path for support in the act to notify provisions of rule 36(4) of CGST Rules which is under challenge in various writ petitions across the nation.
Definition of supply to include services provided by members to club/AOP and vice Versa to overcome the judgment of Apex court in Calcutta Club case for service tax regime which would have been applicable under GST regime also. The above amendment is made applicable retrospectively w.e.f 01/07/2017 opening bell of new litigation.
Sec 129 for detention of conveyance and goods in transit has been amended to provide levy of penalty of 200% of tax amount in case of movement of vehicles without proper documents as per law.
A very big change as earlier the provisions stated for 100% and 100% penalty leading to double tax and many appeals had been filed for refund of tax paid twice. With this amendment now only penalty will be payable which would be equal to 200% of tax. If the assessee wants to prefer an appeal, then 25% of above penalty has to be paid during first appeal proceedings u/s 107 of the act.
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👉 Assistance in filing Form 10E
https://www.incometax.gov.in/iec/foportal/e-Campaigns/e-mail/detail/9157
👉 Assistance in filing Form 10BA
https://www.incometax.gov.in/iec/foportal//e-Campaigns/e-mail#1b3322c9-2a2e-4a9d-8d3a-68a00890de87
👉 Mandatory Aadhaar authentication for registered person
https://www.gst.gov.in/newsandupdates/read/514
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31.12.21 is extended last date to file ITR for AY 21-22 for non-audit cases & form 10-IE for exercise of option of New Scheme of income tax in ITR.
More than 4 crore ITRs for the last fiscal have been efiled, with around 8.7 lakh returns being filed on December 21 alone. With December 31 being the last date for filing FY’21 income tax returns (ITRs) for individual taxpayers, there has been surge in e-filing and 46.77 lakh returns were filed in the last seven days.
Wef 1.1.22, ITC to be available only for invoices/ Dr notes shown by supplier in GSTR-1/IFF & communicated to Buyer in GSTR-2B. (Sec 16(2)(aa)).
Central Government vide Notification No. 38/2021-CT dated 21.12.2021 has notified January 1, 2022 as the implementation date for Rule 10B of CGST Rules, 2017. In the said rule, it is mandatory for the registered person to undergo Aadhaar authentication for the below purposes, Filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23 of CGST Rules, 2017 Filing of refund application in FORM RFD-01 under Rule 89 of CGST Rules, 2017 Refund of the IGST paid on goods exported out of India under Rule 96 of CGST Rules, 2017.
If your aggregate turnover is above Rs. 2 crores, then it's mandatory to file GSTR-9 before the 31st of December, 2021 for FY 2020-21.
Union Cabinet gave its nod for the signing of MoU between ICAI and the Polish Chamber of Statutory Auditors (PIBR). The MoU aims to strengthen cooperation in the matters of study and application of new innovative methods in the field of audit and accounting, including application of blockchain, smart contract system, transition from traditional accounting to cloud accounting.
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1️⃣ ECO is now made liable to pay GST on "restaurant services" provided through the e-commerce platform.
2️⃣ This change is not applicable for restaurant services provided from a premise with declared tariff of Rs. 7,500/- or above per day.
3️⃣ This provision shall be effective from January 01,2022.
4️⃣ Swiggy, Zomato qualifies etc is qualify as an "e-commerce operator" under Section 2(45) of CGST Act, 2017.
5️⃣ Notification read with Section 9(5) of CGST Act, 2017, Swiggy, Zomato will be responsible to pay GST on restaurant services provided through it's website/app from January 01, 2022
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We would like to inform you that CBIC has notified the specific provisions to be effective from 1st January 2022.
We have summarized a few of them below. For any queries or clarifications, do get in touch with us.
Blocking of GSTR-1 for non-filing of GSTR 3B.
The GSTR-1 return filing facility will be blocked if you have not submitted the return in FORM GSTR-3B for the previous two return periods. For example, if a taxpayer has not filed GSTR-3B for October 2021 and November 2021, the GSTR-1 filing facility will be blocked from the 1st January 2022.
Aadhaar authentication is compulsory.
The Central Board of Indirect Taxes and Customs (CBIC) has notified that Rules related to Mandatory Aadhaar authentication for
Filing of application for revocation of cancellation of registration in Form GST REG-21 under Rule 23;
Filing of refund application in Form RFD-01 under rule 89;
Refund under Rule 96 of the IGST paid on goods exported out of India;
The pre-deposit amount for filing eWayBill Appeal increased from 10% to 25%.
It will not make much difference as the goods are not released by the Intercepting Officer without payment of total tax and penalty. However, it will affect those who will get the goods released by giving security.
Time limit specified for the issue of Notice and Order in case of eWayBill Proceeding.
The Intercepting Officer detaining or seizing goods or conveyance shall issue a notice within 7 days of such detention or seizure, specifying the penalty payable. After that, pass an Order within 7 days from the service date of such notice for a penalty payment.
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What is Restaurant and Non-Restaurant Services?
1️⃣ As per NN.11/2017 - CTR, "Restaurant service means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied".
2️⃣ A restaurant is a place which is in the business of preparing and serving food in the premises or as takeaway.
An illustration under this category is provided below:
a) Restaurants located in a premise where declared tariff is not exceeding Rs. 7,500 per day and providing restaurant services.
b) Food and beverage sold as a part of restaurant services and which qualifies as restaurant services.
c) Cloud kitchens providing restaurant services etc.
d) Stand alone restaurants which are not ice cream parlors or bakeries.
3️⃣ As per NN. 17/2021, Zomato, Swiggy shall be responsible for charging, collecting and paying GST @ 5% on supply of "restaurant
services" made by such restaurent thru the ECO platform. The payments will be made after deducting such GST.
4️⃣ For Restaurent with No GSTIN, ECO will be responsible for charging, collecting, paying GST @5% on total order value.
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IMPORTANT GST UPDATES APPLICABLE FROM 1ST JANUARY 2022
1. NO ITC UNLESS REFLECTED IN GSTR 2A/2B
Input Tax Credit shall not be available unless details of invoices uploaded by supplier in Form GSTR-1 are communicated to the recipient (i.e reflected in GSTR 2A/2B). Margin of 5% will no more be available.
2. DIFFERENCE B/W GSTR -1 & 3B: DIRECT RECOVERY
Section 75(12) is amended to provide that tax declared under GSTR-1 but not included in GSTR-3B, will be considered as “Self Assessed Tax” and hence, direct recovery of such tax under Section 79 will be possible even without issuing any Show Cause Notice.
3. E-WAY BILL: 200% PENALTY TO RELEASE GOODS
At present, full tax and 100% penalty is required to be paid to release the goods which are seized for violation of E-way Bill related provisions and for non-carrying of other documents under Section 129. Now, it is provided that goods will be released on payment of penalty equal to 200% of tax and tax will be recovered through separate proceedings.
4. PROVISIONAL ATTACHMENT OF ASSETS OF BOGUS BILLING BENFICIARIES ALSO
Not only supplier and recipients but assets of the beneficiaries of bogus billing can also be provisionally attached.
5. SCOPE OF PROVISIONAL ATTACHMENT WIDENED
Provisional attachment is made applicable in all cases of proceedings of Assessment, Inspection, Search, Seizure and Arrest or Demands and recovery. Now, provisional attachment of property, like bank accounts, can be done not only in the case of Show Cause Notices and investigation but also for other proceedings like Scrutiny of Returns and tax collected but not paid.
6. 25% PRE-DEPOSIT FOR E-WAY BILL APPEALS
For filing appeals, before first appellate authority against order for violation of E-way bill and other provisions, it will be mandatory to pay pre-deposit of amount equal to 25% of penalty imposed.
7. E-WAY BILL CO-NOTICEE MAY NOT GET FREE BY PAYMENT OF 200% PENALTY BY MAIN NOTICEE
Where proceedings against main person liable to pay tax have been concluded under Section 74, proceedings against co-noticee are also deemed to be concluded as provided under Explanation 1(ii) to Section 74. However, now, such benefit will not be available to co-noticee for proceedings initiated to impose penalties for violation of E-way bill.
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✅ GST CREDIT
Wef 01.01.2022, ITC to be available only for invoices/ Dr notes shown by supplier in GSTR-1/IFF & communicated to Buyer in GSTR-2B. (Sec 16(2)(aa)).
✅ GST Annual Return
If your aggregate turnover is above Rs. 2 crores, then it's mandatory to file GSTR-9 before the 31st of December, 2021 for FY 2020-21.
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Income Tax Section 54 doesn’t say that construction of houses should necessarily be completed within two years: MP High Court.
RBI instructions for bank safe deposit lockers:
In line with the SC order, RBI introduced revised instructions for Bank safe deposit lockers. These instructions are applicable from Jan 1st, 2022. Following are some of the highlights of the instructions:
Banks should carry out due diligence for all the customers who have applied for a locker.
The locker agreements with existing locker customers should be renewed by 2023. Banks have been asked to incorporate a clause in the locker agreement that the locker-hirer/s shall not keep anything illegal or any hazardous substance in the Safe Deposit locker.
Banks are permitted to take a ‘Term Deposit’, at the time of allotment of the locker. The ‘Term Deposit’ would cover three years’ rent and the charges for breaking open the locker in case of such eventuality. Banks cannot insist on ‘Term Deposits’ from the existing locker holders or those who have a satisfactory operative account.
CCTVs and ‘Access Control Systems’ should be installed for stronger security. The recordings of the CCTV camera should be preserved for 180 days. With respect to accessing the locker, banks should send an email and SMS alert to the registered email ID and mobile number of the customer before the end of the day as a positive confirmation intimating the date and time of the locker operation.
The claims in case of death of a customer should take place within 15 days from receipt of claim and submission of requisite documents.
The liability of the bank has been limited to 100 times its annual rent in case of fire, theft, frauds by employees, or building collapse. Banks should not offer any insurance product to their locker hirers for insurance of locker contents.
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Gujarat High Court deleted Section 68 additions of receipt of Unsecured loans as Identity, Credit worthiness and genuineness of transactions proved in the case of Principal Commissioner of Income-Tax Vs. Gopal Heritage (P.) Ltd.
GST UPDATES APPLICABLE FROM 1ST JANUARY 2022:
NO ITC UNLESS REFLECTED IN GSTR 2A/2B: Input Tax Credit shall not be available unless details of invoices uploaded by supplier in Form GSTR-1 are communicated to the recipient (i.e reflected in GSTR 2A/2B). Margin of 5% will no more be available.
DIFFERENCE B/W GSTR -1 & 3B: DIRECT RECOVERY: Section 75(12) is amended to provide that tax declared under GSTR-1 but not included in GSTR-3B, will be considered as “Self Assessed Tax” and hence, direct recovery of such tax under Section 79 will be possible even without issuing any Show Cause Notice.
E-WAY BILL: 200% PENALTY TO RELEASE GOODS: At present, full tax and 100% penalty is required to be paid to release the goods which are seized for violation of E-way Bill related provisions and for non-carrying of other documents under Section 129. Now, it is provided that goods will be released on payment of penalty equal to 200% of tax and tax will be recovered through separate proceedings.
India has imposed antidumping duties on five Chinese products, including certain aluminium goods and some chemicals, for five years to guard local manufacturers from cheap imports from the neighbouring country.
Proposal to introduce non-CA members into the ICAI disciplinary committee and the CA Bill, which was sent by Lok Sabha to a Parliamentary standing committee for scrutiny on December 21st, has caused growing angst and nervousness among CA firms and accounting professionals. CA, CMA and CS (Amendment) Bill, 2021, has proposed the inclusion of two CAs and three non-CAs (often government nominees) in the ICAI disciplinary committee, a change from the current setup comprising two non-CA nominees and three ICAI members.
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🏵️ One-time relaxation for verification of all income tax returns e-filed for the Assessment Year 2020-21
👉 Verification can be done till 28/02/2022
👉 Processing u/s 143(1) will be done till 30/06/2022
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ECO-Restaurant Services at a glance
1️⃣ Outlets that provide purely restaurant services (for eg. dal, rice, roti, biryani, dosa,
etc): GST of 5% will be applicable on all items and collected from customers who
order from these outlets. Zomato, Swiggy will pay the entire GST amount collected to the
government on behalf of the outlet.
2️⃣ Outlets that provide only non-restaurant services (for eg. bakery items, sweets,
ice-creams, etc.): GST as mentioned by the outlet on all items will be applicable and
collected from customers who order from these outlets. Zomato, Swiggy will remit the GST amount to the outlet after deducting a TCS of 1%; the outlet will be liable to pay the GST to
the government directly.
3️⃣ Outlets that provide both restaurant and non-restaurant services: GST from
customers will be collected by Zomato, Swiggy as per the nature of items sold and paid to the
tax authorities.
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Faceless scheme
As per new scheme a personal hearing through Video Conference can be requested and when request is made the same shall be allowed . No discretion with the CIT (A ) to refuse such request of oral hearing through VC. The relevant part of scheme reads as under:-
“12. No personal appearance in the Centres or Units.––(1) A person shall not be required to appear either personally or through authorised representative in connection with any proceedings under this Scheme before the income-tax authority at the National Faceless Appeal Centre or appeal unit set up under this Scheme.
(2) The appellant or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the Commissioner (Appeals), through the National Faceless Appeal Centre, under this Scheme.
(3) The concerned Commissioner (Appeals) shall allow the request for personal hearing and communicate the date and time of hearing to the appellant through the National Faceless Appeal Centre.
(4) Such hearing shall be conducted through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure
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Annual Information Statement (AIS) is a comprehensive statement containing details of 46 of the financial transactions (income, investment, expenditure) undertaken by you in a financial year (FY). AIS is an information statement. It provides details of all the income received from various sources irrespective of whether tax has been deducted on such income or not. Further, any investments made by you will be reflected in the AIS as well.
Central Board of Indirect Taxes & Customs had issued Notification No. 17/2021-Integrated Tax (Rate) dated November 18, 2021, regarding to amend Notification No. 14/2017- Integrated Tax (Rate) dated June 28, 2017. Resulting E-commerce operators to pay tax on the following services provided through them from January 01, 2022.
Transport of passengers, by any type of motor vehicles through it;
Restaurant services provided through it with some exceptions.
Karnataka High Court has stayed proceedings initiated by GST authorities seeking retrospective payment of tax on annuity to infrastructure companies. The high court, on December 23, stayed the proceedings initiated after summons were issued by the authorities as well as the circular issued by the CBIC in June clarifying that GST was leviable on annuity payments.
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MCA Update
Relaxation on levy of additional fees in filing of e-forms AOC-4, AOC-4(CFS), AOC-4 XBRL, AOC-4 Non-XBRL and MGT-7/MGT-7A for the financial year ended on 31.03.2021 under the Companies Act, 2013.
Please find the link
https://www.mca.gov.in/bin/dms/getdocument?mds=y7MsuJR2BoOvDvpg8FREsg%253D%253D&type=open
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