GST Update – CBIC notifies return due dates and applicability of pronouncements made by GST council in Jan. 2019

Highlights of notifications issued by CBIC dated 7th March 2019 are as below. Increase in turnover threshold limit for dealers under composition scheme Threshold limit of aggregate turnover for composition scheme dealers u/s.10 of CGST Act has been enhanced to Rs. 1.5 crore during previous financial year. This will...

Supreme Court Ruling on applicability of PF on allowances

Background The Supreme Court verdict dated 28 February 2019 in the case of Regional Provident Fund Commissioner West Bengal v. Vivekananda Vidayamandir and others reiterated the salutary principles of ascertaining components of salary to be considered for the calculation of provident fund (PF) contribution by the employer and deduction from employees’ salary. This...

Salient features of Banning of Unregulated Deposit Scheme Ordinance, 2019 restricting acceptance of loans & deposits from any person other than relatives

Ministry of Law and Justice notified The Banning of Unregulated Deposit Schemes Ordinance 2019 vide notification published in official Gazette on 21st February 2019. It provides a comprehensive mechanism to ban the unregulated deposit schemes and to protect the interest of depositors and matters connected thereto. This bill could not be passed in the house of Rajyasabha...

KYC for Companies to be filed with Registrar latest by 25th April, 2019 as notified by MCA

Ministry of Corporate Affairs (MCA) has introduced KYC of Companies by inserting Rule 25A under Companies (Incorporation) Rules, 2014. This has been notified by MCA vide notification dated 21st February 2019 and shall be effective from 25th February 2019. Below are the highlights of the requirements of Rule 25A. Every Company incorporated on or before 31st...

Government proposed to reduce ESIC contribution rates for company & employees

Currently Employees earning gross salary upto Rs.21,000 per month are required to contribute 1.75% of the wages earned towards contribution to Employee State Insurance Corporation (ESIC) and Company (employer) needs to contribute 4.75% of the wages paid/payable. The Government is considering to lower the Employee’s Contribution Rate to 1% and that of Company’s to 4% (i.e. reduction...

Norms for Angel tax relaxed; no tax on issuance of shares up to Rs. 25 crore

The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a new notification in supersession of its earlier notification no. GSR 364(E), dated 11-04-2018. The DPIIT has extended the definition of the start-up and also relaxed norms for the purpose of claiming exemption from applicability of provision of section 56(2)(viib) of the Income-tax Act, 1961...

GST Update – Circulars issued by CBIC related to returns & invoices

GST Policy Wing, CBIC has issued three circulars on 18th February, 2019 as listed below in brief. Circular No. 90/09/2019 - GST dated 18-02-19:  All registered persons making supply of goods or services or both in the course of inter-State trade or commerce to specify the place of supply along...

Penalty u/s 271I – Non furnishing of Form 15CA and Form 15CB

Notice u/s 271I states that if the assessee has failed to furnish information or has furnished inaccurate information u/s 195(6) in form of filing of Form 15CA and 15CB, there is a penalty for Rs. 1,00,000/- for each such default. Now, previously Form 15CA and 15CB needn’t be submitted in the case...

Court ordered to release the goods detained against execution of simple bond on the grounds of procedural lapse in e-way bill

In the case of Stove Kraft Pvt. Ltd. Vs. Assistant State Tax officer, Kerala High Court held that both goods and vehicle detained by state tax officer should be released on execution of simple bond on the ground that goods have been detained merely due to error/ lapse in documentation (e-way bill). The Court taken practical view...

Representation against contention of GST Department for interest liability u/s. 50 on ITC component

A recent “Standing Order” No.01/2019 issued by the Principal Commissioner of Central Tax, Hyderabad on 04-02-2019, instructs GST Tax Officials and field formation Officers to inquire into cases of late filing of returns, where asseseees has paid interest only on the net tax liability of GST and further instructing to issue recovery notices u/s 79 of CGST/SGST Act in all...
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