Aadhar authentication is not working for functionalities like Refund, Form 13, Registration and 26QB correction at TRACES website.
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If a taxpayer made mistake declaring the HSN/SAC of goods and services supplied. Consequences❓
Under GST law, most important elements is the classification of goods/services for the purpose of determination of rate of tax.
HSN/SAC codes Yes you are right ๐
1️⃣ Wrong classification of HSN/SAC leads to wrong rate of duty which further leads to wrong payment of taxes.
2️⃣ GST charged at higher rates- This leads to loss of creditability, loss of customer base and incurring unavoidable loss on account of discounts given to customers.
3️⃣ GST charged at lower rates- This leads to loss of non-recovery of tax, interest and penalties from customers.
4️⃣ Department will ask for differential tax amount and buyer will not be there to reimburse the same.
5️⃣ Wrong exemption claimed- This result in loss of non-availment of input tax credit.
We have to pay the tax at a later date and credit will not be available due to Section 16 of CGST Act, 2017.
6️⃣ Wrong classification of goods/ services leads to denial of export/import exemption under Foreign Trade Policy such as duty drawback, incentives etc.
Penalty of INR 50,000/- (INR 25,000/- each for CGST and SGST) can be levied for non-mentioning or mentioning wrong HSN/ SAC Code under Section 125 of the Central Goods and Services Tax Act, 2017.
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CBDT Vide Notification No. 11/2022, Dated 25th January 2022, has notified Annexure for Audit report to be filed by the Sovereign Wealth Fund claiming exemption under clause (23FE) of section 10 of the Income-tax Act, 1961.
Income Tax Assessing Officer cannot make addition under Section 69A on a hypothetical basis without carrying out enquiry to find out more details held by Bombay High Court in the case of Principal Commissioner of Income-tax Vs. Nexus Builders and Developers (P.) Ltd.
Company to be treated as beneficial owner of car purchased in the name of its Directors, eligible for Depreciation held by THE ITAT AHMEDABAD in the case of Income-tax Officer Vs. Anunay Fab (P.) Ltd.
Government has detected evasion of GST, which also includes Central Excise and Service taxes prior to 2017, to the tune of Rs 93,375 crore. This was revealed in a RTI reply by the Directorate General of GST Intelligence’s (DGGI) various zonal units in major cities across India, including Delhi, Mumbai, Pune, Ahmedabad, Chandigarh and others.
Supreme Court appreciates ICAI for maintaining Examination Standards “Look at how ICAI does it for Chartered Accountants. They control intake & also the quality.” Chides Bar Council for lowering the standards colleges & asks Bar Council“ it is high time you do an introspection.
Competition Commission of India (CCI) is planning a revamp of the disclosure requirements when entities seek approval for merger deals to make the process less burdensome. At present, disclosures are made under Form-II if the market share of the post-merger entity exceeds 15%.
ICAI issues 3 Guidance Notes on changes & disclosure requirements in Schedule III (Notification of 24.3.21) applicable wef FY 2021-22 onwards.
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✅Union Budget 2022-23 to be presented on February 1, in Paperless form.
CBDT issued detailed rules on how taxes would be calculated. Maturity proceeds received under such high-value Ulips purchased after February 1, 2021, will not be tax-free under section 10(10D), as was the case earlier.
CBDT issues refunds of over Rs 1,62,448 crore to more than 1.79 crore taxpayers from 1st Apr,2021 to 24th Jan,2022," the Income Tax department tweeted.
Orissa High Court stays Income Tax section 148 notice issued after 31st March 2021. Case Law Details Case Name : Rashmi Motors Vs PCIT (Orissa High Court) Appeal Number : W.P.(C) No. 22802 of 2021 Date of Judgment/Order : 24/01/2022
The income-tax department has reportedly sent notices to a clutch of Mauritius-based private equity (PE) funds amid suspicions that unnamed persons call the shots in these funds, while the boards and managements merely serve as dummies. While tax officials are within their right to question such entities, let there be no fishing expeditions.
GST new functionality of interest calculator in GSTR-3B is now live on the GST Portal. This functionality will facilitate & assist the taxpayers in doing self-assessment. This functionality will arrive at the system computed interest on the basis of the tax liability values declared by the taxpayers, along with the details about the period to which it pertains.
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Interest on non-payment of GST may be recovered without Show cause notice.
1️⃣ The Punjab & Haryana High Court lifted a stay ordered earlier in the case of Bharti Airtel Ltd. (Now) to directly recover interest accrued to the tune of Rs 5.77 crore on late payment of tax due to a mismatch of credits.
2️⃣ Direct recovery means that the tax authorities are not required to send notices. The authorities may recover the amount by various means such as deducting the money owed to assesses, for instance, ITC or Sold the goods.
3️⃣ The department issued summons, the proceedings were challenges. Post replies ans submissions, the court has lifted the stay.
4️⃣ Section 79 empowers the officers to directly recovers the unpaid GST in the form of interest thru cited above.
This decision now allows the GST authorities to directly recover interest if tax is not paid on time due to mismatches in ITC
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Union Budget 2022-23 to be presented on 1st February, 2022 in Paperless form
๐To mark the final stage of Union Budget making process, sweets provided to core staff due for “lock-in” at their work workplace instead of Halwa ceremony due to ongoing Pandemic and health safety concerns.
๐Union Budget 2022-23 will be available on Mobile App after it is presented in Parliament “Union Budget Mobile App” to provide easy and quick access to Union Budget information to all stakeholder.
๐Mobile App is bilingual (English & Hindi) and is available on both Android and iOS platforms
๐Mobile App can be downloaded from the Union Budget Web Portal (www.indiabudget.gov.in). All Budget documents will also be available for download on Union Budget Web Portal
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Supreme Court of India decided that No restriction on parallel proceedings by different jurisdictional offices pertaining to different causes of action: Case Name : Euphoria Technologies Pvt. Ltd. Vs DGGI (Supreme Court of India)
Division Bench of Hon. Rajasthan High Court consisting of Chief Justice Akil kureshi and Justice Sameer Jain. in Sudesh Taneja vs. ITO DB W.P No.969/2022. Order dated 27.01.22 quashed the reassessment notices issued after 31.03.21.
Income Tax Section 14A disallowance needs to be re-worked based on investments which yielded tax free income. Case Name : Zuari Investments Ltd. Vs ITO (ITAT Delhi)
Unity Small Finance Bank, which has taken over the failed cooperative lender PMC Bank, on Thursday said all small depositors with under Rs 5 lakh of deposits — who form 96 per cent of the customer base — can take their entire money out now or keep it in the new bank and earn 7 per cent interest annually.
ICAI has submitted a memorandum to a Parliamentary panel, raising concerns about certain provisions in the proposed bill to amend the law governing chartered accountants in the country. ICAI has submitted its views on the provisions, including the one pertaining to the constitution of disciplinary committee, to BJP member Jayant Sinha-led Parliamentary Standing Committee on Finance, which is looking into the bill.
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GST UPDATE
Alert on the GST portal
Where the liability declared in GSTR-3B varies significantly with Form GSTR-1
or
Where ITC taken in GSTR-3B varies significantly in comparison with auto populated GSTR-2B
indicating a contravention to the provisions in rules, *registration shall be suspended* in terms of Rule 21(2A) of CGST Rules 2017.
If one could remember, as per Notification 94/2020 dated 22nd December 2020, *a new sub-rule 2A has been inserted in Rule 21A of the Central Goods and Services Tax (CGST) Rules.
Any significant differences or anomalies observed between the GSTR-3B and the GSTR-1/2B could lead to suspension of GST registration.
Further, if these differences remain unexplained, the GSTIN could get cancelled.
The tolerence limit has been *kept at 10% in both cases by GSTN as per the alert message.
The taxpayer can check the comparison / variances post login by navigating through Services-->Returns--> Tax liabilities-->and ITC Comparison--> Select year (period).
This alert will definitely be helpful for the taxpayers to keep a tag on the variance/ anomalies and take corrective measures in time.
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Charitable Trust eligible for 30% Standard deduction against House Property under Income Tax Act. Case Name : Vishwa Kalyan Society Vs DCIT (ITAT Ahmedabad) Appeal Number : ITA No. 449/AHD/2019 Date of Judgment/Order : 28/01/2022
Utility is available on GST Portal, now you can check Whether liability declared by a taxpayer in GSTR-1 is Paid through GSTR-3B or not and upto which extent. This feature will Definitely help in trapping bogus suppliers. But at the same time it is casting a responsibility that in case if tax is not deposited by the supplier and you are still dealing with such supplier risk of non eligibility of ITC on buyers.
Adlabs Entertainment has approached the Bombay High Court over extension of GST incentives for the period of lockdown due to Covid pandemic. The company in a writ petition filed with the court said that its water and theme parks remained shut during 2020 and 2021 due to forced lockdown by the government and this period should be excluded from the tax holiday and the exemption period should be extended by the number of lockdown days.
Application for GST refund cannot be rejected without recording any reasons. Case Name : Colgate Global Business Services Pvt. Ltd. Vs Union of India (Bombay High Court) Appeal Number : Writ Petition No. 802 of 2021 Date of Judgment/Order : 25/01/2022
Govt has notified the second phase of the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector for providing assistance for common technology development and services infrastructure, with a financial outlay of Rs 1,207 crore. The outlay includes Budgetary support of Rs 975 crore and industry contribution of Rs 232 crore. The scheme was notified on January 25.
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CBDT extends deadline for updating UDINs for all the Income Tax Forms upto 30th April 2022 at Income Tax Portal
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GST: Recovery proceeding justified for differences in outward supply in GSTR-1 vs. GSTR 3B⁉️
1️⃣ GSTN has started showing warning that registration can be suspended if there is a deviation of > 10% between liabilities declared in GSTR-1 and declared in GSTR-3B, or ITC available as per GSTR-2B and claimed in GSTR-3B.
2️⃣ Rule 21A (2A) permits suspension of registration in case there are significant differences or anomalies but the limit of 10% mentioned appears to be arbitrary.
3️⃣ Section 16 mandates that the ITC can be claimed subject to the tax charged in respect of such supply has been actually paid to the Government.
4️⃣ Sec 75(12) amended "self-assessed tax” shall include the tax payable in respect of outward supplies, the details of which have been furnished under section 37 but not included in the return furnished under section 39.
5️⃣ CBIC issues Guidelines for Recovery proceedings under CGST Act.
There may be genuine reasons for the differences. The proper officer may send the communication to taxpayers to pay the amount within a reasonable time. If the taxpayer is able to justify the reasons then no recovery proceedings initiate.
6️⃣ GSTN now provides the details of tax paid by any taxpayer based on the liability declared in GSTR-1/IFF and tax paid in GSTR-3B.
7️⃣ Calculation methodology: https://services.gst.gov.in/pages/services/liabpaidperFormula/LiablityPaidPercentageFormula.html
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