MCA extends Annual Return due date upto 31 Dec. 2018

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MCA extends due date for Filings of Financial Statements & Annual Return up to 31.12.2018

Keeping in view the requests received from various stakeholders seeking extension of time for filing of financial statements for the financial year ended 31.03.2018 on account of various factors, it has been decided to relax the additional fees payable by companies on e-forms AOC-4, AOC (CFS) AOC-4 XBRL and e- Form MGT-7 upto 31.12.2018 wherever additional fee is applicable.

 

General Circular No. 10/2018

F.No. 01/34/2013 CL-V
Government of India
Ministry of Corporate Affairs

5th Floor, ‘A’ Wing, Shastri Bhawan,
Dr. Rajendra Prasad Road, New Delhi-1

Dated: 29.10.2018

To
 All Regional Directors,
 All Registrar of Companies, All Stakeholders.

Subject: Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statements) under the Companies Act, 2013– – reg.

Keeping in view the requests received from various stakeholders seeking extension of time for filing of financial statements for the financial year ended 31.03.2018 on account of various factors , it has been decided to relax the additional fees payable by companies on e-forms AOC-4, AOC (CFS) A0C-4 XBRL and e- Form MGT-7 upto 31.12.2018, wherever additional fee is applicable.

2. This issues with the approval of the competent authority.

Yours faithfully,

(KMS Narayanan)

Assistant Director (policy)

011-23387263

For the original circular, please read:  MCA General Circular No. 10/2018 dt. 29 Oct. 2018

GSTN enables facility to claim Refund of Tax due to any Other Reason

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The facility to claim Refund on account of any other reason has now enabled in the Goods and Services Tax Network ( GSTN ).

In statement released today, the official twitter account of the GSTN tweeted that “Facility to claim Refund on account of any other reason has been enabled on GST Portal for the taxpayers.”

Last day, the GST portal had updated a new functionality enabling the taxpayers to claim refund on account of excess payment of tax.

“Facility to claim refund on account of excess payment of tax has been enabled on GST Portal for the taxpayers,” GSTN said in a statement. On Tuesday, the GSTN had updated two new features such as, the facility to upload statement 4 for Refund and the facility for amendment in Registration of Core fields.

 

GSTN updates facility to claim Refund of ‘Excess Payment of Tax’

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The Goods and Services Tax Network (GSTN) has updated a new functionality enabling the taxpayers to claim refund on account of excess payment of tax.

“Facility to claim refund on account of excess payment of tax has been enabled on GST Portal for the taxpayers,” GSTN said in a statement.

Last day, the GSTN has updated two new features such as, the facility to upload statement 4 for Refund and the facility for amendment in Registration of Core fields.

The Statement upload for Refund Taxpayers filing refund application on account of supplies made to SEZ unit/ SEZ Developer, with payment of tax, has now been provided with facility to upload Statement 4, at the time of filing Refund application.

 

CBDT further extends due date for filing IT Returns & Tax Audit Reports up to 31 October.

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The Central Board of Direct Taxes (CBDT) has further extended due date for filing Income Tax Returns and Audit Reports to October 31st.

The due date for filing of Income Tax Returns and Audit Reports for Assessment Year 2018-19 is 30th September, 2018 for certain categories of taxpayers.

The CBDT had earlier extended the date for filing of Income Tax Returns and various reports of Audit to 15th October 2018.

Upon consideration of representations from various stakeholders, CBDT further extends the ‘due date’ for filing of Income Tax Returns as well as reports of Audit (which were required to be filed by the said specified date) from 15th October, 2018 to 31st October, 2018 in respect of the said categories of taxpayers.

However, as specified in earlier order dated 24.09.2018, assessees filing their return of income within the extended due date shall be liable for levy of interest as per provisions of section 234A of the Income-tax Act, 1961.

As SEBI reforms startup listing, SMEs must ensure funds are not misused

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SME ExchangeAmid SEBI banning as many as 239 entities for alleged money laundering, taxation consultancy PwC has called for a three-year locking-in for the entire pre-listing capital held by promoters to curb tax evasion and other illegal activities through market platforms.

The agency has called for imposing a similar lock-in even for preferential allotments, as prescribed under the capital and disclosure requirement (ICDR) norms so that only serious investors access the market. The PwC report is part of a BSE-mandated review of SME listing process.

The premier bourse last week said that 100 entities were trading on its SME platform. The regulator Securities and Exchange Board (SEBI) on June 29 banned four publicly traded SMEs and 235 other related entities for alledgely misusing the exchange’s platform for money laundering and tax evasion.

The SEBI, in an interim order alleged that these entities made Rs 614 crore in illegal gains through suspected money laundering and tax evasion activities. The four companies banned are EcoFriendly Food Processing Park, Esteem Bio Organic Food Processing, Channel Nine Entertainment and HPC Biosciences. These are traded on the BSE SME Platform.

“The institutional trading platform (ITP) could be utilised as a tool for tax planning by staying invested in an SME for a period more than 12 months and exiting at a very high stock price thereby making huge gains with no tax liability,” PwC said in the report.

Accordingly, the report has suggested that the entire pre-listing capital held by promoters should be locked in for three years as “such restrictive conditions would discourage people from accessing the platform only for tax planning”. The BSE had launched ITP for its SME platform to facilitate start-ups and other SMEs to list without the mandatory IPO process which is time-consuming and capital intensive that small companies can hardly afford.

According to PTI, in addition to allowing SMEs and start-up companies to raise capital, the BSE SME platrfom also provides easier entry and exit options for informed investors like angel investors, venture capitalists and private equity players, apart from offering better visibility and wider investor base and tax benefits to long-term investors.

Meanwhile, the report also called for a reduction in trading lot size and shorter interval for review of lot size after many SMEs, merchant bankers and market-makers cited this as a disincentive for entering the market. The report said market participants want the timeframe to review the lot size to be reduced from the current six months and lower the trading lot requirement of Rs 1 lakh to attract retail investors to the segment.

As SEBI continues to make business easier, it is important SMEs do not eye illegal gains through suspected money laundering and tax evasion activities.

 

CBDT extends deadline for filing ITRs with audit reports to Oct 15, 2018

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The government has extended last date for filing of income tax returns (ITRs) for those taxpayers who are required to file their returns along with audit reports from Sept 30 to Oct 15, 2018.

 

The text of the notification by CBDT is as below:

CBDT has extended the due date for filing Income Tax Returns and audit reports from 30th September 2018 to 15th October 2018. However, there shall be no extension of the due date for purpose of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessee shall remain liable for payment of interest as per provisions of section 234A of the Act.

                                  In its tweet, the income tax department has posted – “CBDT extends due date for filing of Income Tax Returns & audit reports from 30th Sept,2018 to 15th Oct, 2018 for all assessees liable to file ITRs for AY 2018-19 by 30.09.2018,after considering representations from stakeholders.”

 

However, it adds that “Liability to pay interest under section 234A of Income Tax Act will remain.” It is important to note that if one has any unpaid tax liability then penal interest on the same may be leviable.

Typically, tax practitioner bodies ask for an extension from the government, saying they needed more time to file returns for entities where tax audit report or transfer pricing report or other audit reports are required to be filed as per the law.

Even last year, on consideration of representations from various stakeholders and to facilitate ease of compliance by the taxpayers, CBDT had extended the ‘due-date’ for filing Income Tax Returns with audit reports as prescribed under the Income-tax Act,1961 from 31st October, 2017 to 7th November, 2017 for AY 2017-18.

Tax audit is a review of accounts of taxpayers with business or profession from an income tax point of view such as incomes, deduction, compliance with tax laws, etc. Taxpayers with turnover exceeding Rs 1 crore in business (not opted for presumptive taxation scheme) or whose gross professional income is over Rs 50 lakh need to get a tax audit done. Tax audit report needs to be filed on or before the 30 September of the subsequent financial year in case of taxpayers who have not entered into an international transaction.

Some chartered accountants have argued that they have been busy filing returns of individual tax payers like the salaried class till August 30. Consequently they have had little time to devote to preparing the audit reports for those tax payers whose accounts are required to be compulsorily subjected to tax audit. The number of clauses in the audit reports have also increased thereby increasing the time required, they have pointed out. For these reasons they had requested an extension of the deadline for filing tax returns with audit reports.

Highlights:

  • An audit is a review of accounts of taxpayers with business or profession from an income tax point of view such as incomes, deduction, compliance with tax laws, etc.
  • Those with turnover exceeding Rs 1 cr in business or whose gross professional income is over Rs 50 lakh need to get a tax audit done.
  • It is important to note that if one has any unpaid tax liability then penal interest on the same may be leviable.

CBDT Notification