Finance Minister Nirmala Sitharaman on Saturday directed the Goods & Services Tax (GST) organization to hold a special filing demonstration session for new return framework. This activity is expected to get the input before the new documenting system becomes effective from April 1, 2020.
As per the law it is mandatory to file return either on monthly or quarterly basis, based on their turnover.
The Finance Minister met tax assesses in five group to discuss and find ways to further simplify GST forms and make the existing filling process (GSTR 1, GSTR 3B, GSTR 9, GSTR 9c etc) more user friendly. Five bodies demonstrated in real time before the Finance Minister and Senior GST and GSTN officials, the various issues encountered during filling GST forms.
However, there are issues related to certain entries where some amendments have been made, issue of credit note or debit note, matching of input tax credit (ITC) for buyer filing monthly return and seller filing quarterly return and demand to produce physical invoice by tax officials even details mentioned in GST Return Form 2A. There was also a suggestion to further ease co-relation of various forms.
The activities would assist organizations with getting ITC benefits with no problems.
70.22 per cent of the assessees, having an annual turnover of less than ?5 crore and engaged in B2C (business to consumer), B2B (business to business) as well as reverse charge mechanism-based supply activities can opt for quarterly filing of return. This form is called ‘SUGAM’ (RET-3). This is according to the turnover-wise distribution based on GSTR 3B (existing return form) filed during 2018-19.
About 28 per cent of the assessees, with an annual turnover of less than ?5 crore and are engaged in B2C as well as reverse charge-based supply activities. They can opt for ‘SAHAJ’ form (RET-2). All other assessees (engaged in foreign trade or SEZ-based activities) will have to file RET-1. They will be required to file the returns on a quarterly basis but payment of tax dues on monthly basis through a form called PMT-08.
Over 7 per cent assessees with annual turnover of more than ?5 crore. They will have to file the return on a monthly basis through RET-1. These assessees are a small in number, but in terms of overall tax payment they contribute nearly 85 per cent. Under the new system, these assessees will have to file their returns by the 20th of the next month, which means a majority of the collection will be with the Government by that date. For other assessees, the filing date is the 25th of next month.
Under the present framework, one can display two unique figures in GSTR 1 (showing liability) and GSTR 3 B (showing tax payment) as they are not linked automatically. Thus, one could show higher liability,claim higher input tax credit and pay less tax. In any case, this will be not be possible under new system.Through the RET-1/2/3, the taxpayer pays the auto-populated risk (from ANX-1) by using money and ITC (auto-populated through ANX-2) both. Additionally, only the creator of the form will be able to amend the details.
The role of the Company Secretaries as governance enablers in the Indian corporate scenario has been well acknowledged, both by the corporates and the Regulators. Company Secretaries, both in employment and in practice have distinct roles to play as far as the governance framework of the Indian corporate arena is concerned.
The ICSI has been upfront about bringing about good governance and strengthening the existing framework. In an attempt to imbibe and to reinstate our commitment towards our vision and mission and to bring about a culture of transparency and accountability amongst our members, the Institute has brought forth the ICSI UDIN and eCSIN Guidelines.
UDIN - Unique Document Identification Number (UDIN), as the name suggests, is an identification number that is generated for every document certified/attested by a Practicing Chartered Accountants.
eCSin - The Employee Company Secretary Identification Number as governed by the eCSin Guidelines shall enable the Institute to identify the appointments and cessations of Company Secretaries. eCSin is a system-generated unique number for identification of the Company Secretaries employed in a particular company which shall be generated by the Company Secretary at the time of employment as a Company Secretary (KMP or otherwise), as well as at the time of demitting office in any manner.
Queries regarding eCSin may be sent to firstname.lastname@example.org
Both the Guidelines have been made mandatory by the Council of ICSI w.e.f. 1st October, 2019 and we are confident that the same shall undeniably provide the benefit of verification of the authenticity of both documents and the professionals to the Regulatory Bodies and other stakeholders as well.
Section 194N is applicable in case of cash withdrawals of more than Rs 1 crore during a financial year. This section will apply to all the sum of money or an aggregate of sums withdrawn from a particular payer in a financial year.
The section will apply to withdrawals made by any taxpayer including:
A Hindu Undivided Family (HUF)
A partnership firm or an LLP
A local authority
An Association of Person (AOPs) or Body of Individuals (BOIs)
The following payers are covered under this section:
Any bank (private or public sector)
A co-operative bank
A post office
The tax will be deducted by the payer while making payment to any individual in cash from a taxpayer’s bank account on the amount in excess of Rs 1 crore.
The limit of Rs 1 crore will be applicable to the cash payments/withdrawals made during the FY 2019-20. The provisions of Section 194N will be applied to the payments made on or after 1 September 2019.
The person (payer) making the cash payment will have to deduct TDS under Section 194N. Here is the list of such persons:
Any bank (private or public sector)
A co-operative bank
A post office
There are certain categories of person (payee) to whom the provision of this section will not apply. They are listed below:
Any government body
Any bank including co-operative banks
Any business correspondent of a banking company
Any white label ATM operator of any bank
TDS will be deducted by the payer while making the cash payment over and above Rs 1 crore in a financial year to the payee. If the payee withdraws a sum of money on regular intervals, the payer will have to deduct TDS from the amount, once the total sum withdrawn exceeds Rs 1 crore in a financial year. Further, the TDS will be done on the amount exceeding Rs 1 crore. For example, if a person withdraws Rs 99 lakh in the aggregate in the financial year and in the next withdrawal, an amount of Rs 1,50,000 is withdrawn, the TDS liability is only on the excess amount of Rs 50,000.
The payer will have to deduct TDS at the rate of 2% on the cash payments/withdrawals of more than Rs 1 crore in a financial year under Section 194N. Thus, in the above example, TDS would be on Rs 50,000 at 2% i.e. Rs 1,000.
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