Union Budget 2024 Highlights: Announcements by Finance Minister Nirmala Sitharaman

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

Summary of Direct and Indirect Tax Proposals: Budget 2024-25

 Summary of the direct and indirect tax proposals made in the Budget 2024-25 (Finance Bill 2024) presented by Smt Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs:

Highlights of the Direct Tax Proposals of Finance Bill, 2024

No changes in Tax Rates

No changes have been proposed to the existing rates of direct and indirect taxes. The existing rates of income tax, gst, import duties, etc. have been retained.

To provide continuity, some tax benefits and exemptions have been extended by 1 year until 31st March 2025. These include:

  1. Tax benefits for startups;
  2. Tax exemptions on certain income for International Financial Services Centers (IFSCs); and
  3. Tax exemptions on investments made by sovereign wealth funds and pension funds.

The Interim Budget 2024 maintains the status quo on tax rates and extends certain tax breaks by a year to provide stability and continuity in taxation. No new changes or reforms have been introduced to the tax structure or rates.

Withdrawal of Outstanding direct tax demands

The FM has announced to withdraw the outstanding demands of income tax. Here is a summary of the key points regarding the withdrawal of outstanding direct tax demands announced in the Interim Budget 2024:

i) In line with the government’s vision to improve ease of living and doing business, outstanding petty direct tax demands up to Rs 25,000 dating back to 1962 will be withdrawn for the period up to FY 2009.

ii) Similarly, outstanding demands up to Rs 10,000 will be withdrawn for the FY 2010-11 to 2014-15.

iii) These are non-verified, non-reconciled or disputed demands that continue to remain on the books, causing anxiety for taxpayers.

  1. Withdrawing these demands will help provide relief to honest taxpayers and enable refunds for subsequent years.
  2. This is expected to benefit about 1 crore taxpayers who have such outstanding demands.
  3. The move aims to improve tax payer services and reduce harassment of taxpayers over small disputed sums dating back decades.

In short, the Interim Budget 2024 has announced the withdrawal of old, petty direct tax demands up to Rs 25,000 till FY 2009-10 and Rs 10,000 between FY 2010-11 to 2014-15 to provide relief to taxpayers.

Highlights of the Indirect Tax Proposals of Finance Bill 2024

The FM has proposed in Budget 2024 to retain the same tax rates in respect of GST, import duty, etc. indirect taxes as are applicable at present, i.e. existing GST and import duty rates shall continue in FY 2024-25 as well.

BUDGET HIGHLIGHTS 2024-25, Ministry of Finance

Chairman, CBIC has launched CBIC’s WhatsApp Channel – ‘CBIC India’

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

In the weekly newsletter dated January 8, 2024, Chairman Sanjay Kumar Agrawal of the Central Board of Indirect Taxes and Customs (CBIC) shared noteworthy updates.

From the launch of CBIC’s WhatsApp channel to commendable achievements, the newsletter provides insights into the latest developments within the organization.

Here are the detailed Analysis:

==========================

  1. WhatsApp Channel Launch:

Chairman Agrawal introduced the recently launched CBIC India WhatsApp channel. With a presence on various social media platforms, including Twitter, Facebook, Instagram, YouTube, and Koo, CBIC aims to enhance taxpayer information and facilitation. The WhatsApp channel, a pioneering move by a government department, already boasts around 7,500 followers.

  1. IRS Officers Passing Out Ceremony:

The newsletter highlights the Passing Out Ceremony of the 73rd Batch of IRS (C&IT) Officers. Chairman Agrawal emphasizes the significance of knowledge, citing the academy’s motto. The trained officers, ready to serve, demonstrate espirit de corps and are prepared to administer customs and indirect taxes.

  1. Medals and Recognitions:

Exceptional officers are recognized during the ceremony, with medals awarded for outstanding performance during their probationary period. Notable achievements include the FM and Chairman Gold Medal, Kaushalya Narayanan Memorial Gold Medal, Director General Gold Medal, and N. K. Upadhyay Memorial Gold Medal.

  1. Vigilance Achievements:

CBIC achieved a record number of disposals of vigilance cases in 2023, with 524 disciplinary proceedings disposed of. The Chairman commends the collective effort and expresses confidence in sustaining this momentum for the upcoming year, aiming for new heights in vigilance administration.

5. Relief Measures for Rain-Affected Areas:

Due to heavy rains in Tamil Nadu, CBIC approved the extension of due dates for filing GSTR-3B and Annual Return. This decision aims to provide relief to taxpayers in rain-affected areas.

  1. Customs Success Story:

The newsletter highlights a successful case booked by Trichy Customs (Preventive) Commissionerate, showcasing the vigilance and teamwork of officers. A specific intelligence-led operation led to the recovery of 7.70 kgs of gold worth Rs. 4.85 Crore.

Conclusion: Chairman Sanjay Kumar Agrawal’s weekly newsletter encapsulates the dynamism of CBIC, showcasing achievements, recognitions, and significant initiatives.

From technological advancements like the WhatsApp channel launch to the vigilance administration accomplishments, the newsletter underscores CBIC’s commitment to efficiency, transparency, and serving the public interest.

Stay tuned for more updates and insights in the weeks to come, as CBIC continues its journey towards excellence in customs and indirect taxes administration.

WhatsApp Channel

Read More

Extension of time for GSTR-3B Filing for November 2023 in specific districts of Tamil Nadu

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Income Tax,e-Filing- Individuals, Firms, Companies | 0

In response to the devastation caused by the MICHAUNG cyclone in early December 2023, the deadline for monthly GST returns has been extended, in respect of the taxpayers whose principal place of business is located in the four cyclone-affected districts of Chennai, Tiruvallur, Chengalpattu and Kancheepuram, as per release from Commercial Taxes Department.


The CBIC vide Notification No. 55/2023 – Central Tax dated December 20, 2023, extends the deadline for filing FORM GSTR-3B for November 2023 until December 27, 2023.

This extension applies to registered individuals with their principal place of business in specific districts of Tamil Nadu (Chennai, Tiruvallur, Chengalpattu, Kancheepuram), as recommended by the Council under section 39(1) and rule 61(1)(i) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”).

GST collection in October crosses ₹1.3 lakh crore, second highest ever

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
GST collection in October crosses ₹1.3 lakh crore, second highest ever

The gross GST revenue collected in the month of October 2021 exceeded ₹1.3 lakh crore. The GST revenues for October is the second highest ever since introduction of GST, second only to that in April 2021, which related to year-end revenues. The revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year.

The gross GST revenue collected in the month of October 2021 exceeded ₹1.3 lakh crore. The GST revenues for October is the second highest ever since introduction of GST, second only to that in April 2021, which related to year-end revenues. The revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year.

“This is very much in line with the trend in economic recovery. This is also evident from the trend in the e-way bills generated every month since the second wave. The revenues would have still been higher if the sales of cars and other products had not been affected on account of disruption in supply of semi-conductors,” the government said in a statement.

The government settled ₹27,310 crore to CGST and ₹22,394 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlements in the month of October 2021 is ₹51,171 crore for CGST and ₹52,815 crore for the SGST.

During the month, revenues from import of goods was 39% higher and the revenues from domestic transaction (including import of services) are 19% higher than the revenues from these sources during the same month last year.

Indian stock market benchmark Sensex was up over 600 points in noon trade. A private survey released earlier in the day showed India’s manufacturing sector activities gained further strength in October as companies scaled up production and stepped up input purchasing in anticipation of further improvements in demand.

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose from 53.7 in September to 55.9 in October, pointing to the strongest improvement in overall operating conditions since February.

Robust gains in new work aided production growth in October as output and new orders expanded at fastest rates in seven months, while business optimism hit a six-month high, the survey said.

Source: Mint

GSTN issues advisory for taxpayers regarding Blocking of E-Way bills.

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
GST Council, has recommended to reduce / waive the interest/ late fee for delayed filing of GSTR 3B by small taxpayers (having turnover upto Rs. 5 crores) for the tax period from July 2017 to July 2020
Taxpayers who have not filed GST returns for two months or quarters up to June 2021 will not be able to generate e-way bills from August 15.

The Goods and Service Tax network on 4th August 2021 has decided to resume the blocking of e-way bill generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August onwards.

Advisory for Taxpayers regarding Blocking of E-Way Bill (EWB) generation facility resume after 15th August, 2021.

1. As you might be aware that the facility of blocking E way bill generation had been temporarily suspended due to pandemic, in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for a consecutive period of two months / Quarters or more.

2. The government has now decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August onwards.

3. Thus, after 15th August 2021, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, and restrict the generation of EWB in case of: Non filing of two or more returns in Form GSTR-3B for the months up to June, 2021 and Non filing of 02 or more statements in Form GST CMP-08 for the quarters up to April to June, 2021

4. To avail continuous EWB generation facility on EWB Portal, you are therefore advised to file your pending GSTR 3B returns/ CMP-08 Statement immediately.

5. For details of blocking and unblocking EWB click on below links :

https://tutorial.gst.gov.in/userguide/returns/index.htm#t=FAQs_unblockingewaybill.htm

Note: Please ignore this update if you are not registered on the EWB portal. Regards,
Team GSTN

MCA gives compliance relief to businesses due to second wave of COVID-19

by | posted in: Company Incorporations, e-filing of MCA Returns, Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0
The Ministry of Corporate Affairs (MCA), considering requests to waive additional fee for late filing of statutory forms which fall due between 1 April and end of May owing to the COVID-19 restrictions and disruption, has granted extra time without additional fee for filing statutory forms till the end of July, 2021

 

The ministry of corporate affairs (MCA) has offered relaxation in certain compliance requirements for businesses, including a longer interval between two board meetings in view of the hardships during the second wave of the pandemic.

Companies are normally required to hold a minimum of four board meetings in a year with the interval between them not exceeding 120 days. This has now been relaxed by 60 days so that the interval could go up to 180 days, the ministry said in a notification issued on Monday.

The ministry also said in a separate notification that it has received several requests to waive the additional fee for late filing of statutory forms which fall due between 1 April and end of May in view of the covid-19 restrictions and disruption.

The ministry said these requests have been examined and taking into account the difficulties due to resurgence of coronavirus infections, extra time without additional fee has been granted till the end of July for filing statutory forms. In the case of filing forms to report creation or modification of a charge (lien or claim) on the assets of a company under various circumstances, the ministry has issued another notification granting relief. Accordingly, in cases where due date had expired before 1 April, extra time has been granted till end of May.

The finance ministry has already given relief for various compliance requirements related to income tax and goods and services tax (GST), besides exempting basic customs duty and agriculture cess on various medical supplies used in the prevention and treatment of coronavirus disease. The pandemic has taken a heavy toll on lives with over 222,000 deaths.

The central government has not favoured a lockdown of the country during the second wave, but several states had to impose curbs on movement and assembly of people to break the chain of infections. India has so far vaccinated over 15 crore people, or roughly 12% of the population. The second wave is expected to slow India’s economic recovery from an expected 7.7% contraction in FY21.

Source: Ministry of Corporate Affairs

GST Collections surge to record Rs. 1.41 lakh crore in April

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
The GST revenues during April 2021 are the highest since the introduction of GST even surpassing collections in the last month

The gross GST revenue collected in the month of April is at a record high of Rs. 1,41,384 crore of which CGST is Rs. 27,837 crore, SGST is Rs. 35,621, IGST is ₹68,481 crore (including Rs. 29,599 crore collected on import of goods) and Cess is Rs. 9,445 crore (including Rs. 981 crore collected on import of goods).

“Despite the second wave of COVID-19 pandemic affecting several parts of the country, Indian businesses have once again shown remarkable resilience by not only complying with the return filing requirements but also paying their GST dues in a timely manner during the month,” according to a statement by Ministry of Finance.

The GST revenues during April 2021 are the highest since the introduction of GST even surpassing collections in the last month (March’2021). In line with the trend of recovery in the GST revenues over past six months, the revenues for the month of April 2021 are 14% higher than the GST revenues in the last month of March’2021.

During the month, the revenues from domestic transaction (including import of services) are 21% higher than the revenues from these sources during the last month.

GST revenues have not only crossed the Rs. 1 lakh crore mark during successively for the last seven months but have also shown a steady increase. These are clear indicators of sustained economic recovery during this period.

Closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, Income-tax and Customs IT systems and effective tax administration have also contributed to the steady increase in tax revenue. Quarterly return and monthly payment scheme has been successfully implemented bringing relief to the small taxpayers as they now file only one return every three months.

Providing IT support to taxpayers in the form of pre-filled GSTR 2A and 3B returns and ramped up System capacity have also eased the return filing process.

During this month the government has settled Rs. 29,185 crore to CGST and Rs. 22,756 crore to SGST from IGST as regular settlement.

The total revenue of Centre and the States after regular and ad-hoc settlements in the month of April’ 2021 is Rs. 57,022 crore for CGST and Rs. 58,377 crore for the SGST.