Professional Updates

N ew section 271AAD is inserted in the Income Tax Act by finance act 2020 w.r.t penalty for false entries or omitted entries and shall be applicable w.e.f. 01-04-2020. Penalty for such false or omitted entries will be equal to the aggregate amount of such false or omitted entry.

Q1: What is the process for change in name on marriage of a woman member against UAN when changes are made in Aadhaar?

CBDT has further extended the implementation of reporting requirements under clause 30C & 44 has  till March 31st, 2021** vide⏩ circular no 10/2020 dated 24/04/2020 .** Update: **CBDT has further extended the implementation of reporting requirements under clause 30C & 44 has  till March 31st, 2022 vide Circular No. 05/2021, Dated 25th March, 2021 Clause 30C is pertaining to General Anti-Avoidance Rules (GAAR)) and  Clause 44 is pertaining to Goods and Services Tax (GST) compliance) of the Form No. 3CD 

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Much awaited form PMT-09 is available on common GST portal.  PMT 09 was originally notified by notification No. 31/2019 – Central Tax, dated the 28th June, 2019. Finally it is live on portal now, however rule 87(13) is not yet notified w.r.t PMT-09.* [ * Rule 87(13) has been notified wide notification 37/2020-CGST dated 28/04/2020 ] Here is the introduction to the form PMT-09: What is PMT-09 under GST? Form PMT-09 (i.e. a challan) is used for shifting wrongly paid GST. This enables taxpayer to shift any amount of tax, interest, penalty, etc. that is available in the electronic cash ledger, to the appropriate tax or cess head under IGST, CGST and SGST in the electronic cash ledger. In nutshell if taxpayer wrongly paid CGST instead IGST he can now correct it by PMT09 Transfer amount from Transfer amount to Major head Minor head Amount available Major head Minor head Amount IGST CGST IGST CESS Tax IGST

In order to enable income taxpayers to avail full benefits of various timeline extensions granted by the Government of India due to Covid-19 pandemic situations, the CBDT is revising the return forms for FY 2019-20 (Assessment Year 2020-21) which shall be notified by the end of this Apr-2020.

D epreciation as per new companies act is allowed on the basis of useful life of assets and residual value. Depreciation rates are not given under the new companies act. A table is given below of depreciation rates applicable if the asset is purchased on or after 01st April, 2014 and useful life is considered as given in companies act,2013 and residual value as 5%.

The Food Safety and Standards Authority of India (FSSAI) has given additional time to food business operators (FBOs) for renewal of licenses and registrations till June 30, due to restriction of movements during the lockdown.

With a view to mitigate hardship to the policyholders whose Health and Motor (Third Party) insurance policies are due for renewal during COVID-19 lockdown ( on and from the 25th March, 2020 up to the 3rd May, 2020) , the Central Government issued Notifications allowing such policyholders to make premium payments till May 15th. This will ensure a continued cover and hassle-free claims payment during the grace period

PF payment due date for March 2020 C onsidering the unprecedented situation created by COVID-19 and lockdown announced by the Central Government from 24.03.2020 midnight onwards to prevent the spread of Covid-19, the due date for filing of Electronic Challan Cum Return (ECR) for wage month March, 2020 is extended up to 15.05.2020 for employers who have paid wages to their employees for March, 2020.

C ircular No.136/06/2020-GST, dated 03.04.2020 had been issued to clarify doubts regarding relief measures taken by the Government for facilitating taxpayers in meeting the compliance requirements under various provisions of the Central Goods and Services Tax Ac. CBIC has issued Circular No. 137/07/2020-GST dated 13.04.2020 to reduce challenges being faced by taxpayers in adhering to the compliance requirements under various other provisions of the CGST Act.

T he Central Govt. has launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on 26.03.2020 to help poor fight the battle against Corona Virus. As part of the PMGKY package, with a view to prevent disruption in the employment of low wage earning EPF members and support EPF covered establishments employing up to one hundred employees, the Central Govt. proposes to grant relief in form of credit of EPF & EPS contributions (24% of wages) for three months. 

Use of DSC for signing audit reports and certificates The members of ICAI may use electronic signature for signing audit reports , all reports issued pursuant to any attestation engagement and certificates. However, the members need to ensure compliance with all the requirements relating to signature prescribed in the relevant law or regulation, Standards on Auditing and relevant announcements/ clarifications issued by ICAI on the matter including the requirement to mention UDIN. Read here announcement by ICAI allowing members to sign audit report with DSC https://resource.cdn.icai.org/59024aasb48128.pdf

The Ministry has been receiving several references/ representations from various  stakeholders seeking clarifications on eligibility of CSR expenditure related to COVID-19  activities. In this regard, a set of FAQs along with clarifications are provided below for better  understanding of the stakeholders: 

In pursuance of the Government of India’s efforts to provide relief to law abiding companies and Limited Liability Partnerships (LLPs) in the wake of COVID 19, the Ministry of Corporate Affairs (MCA), has introduced the “ Companies Fresh Start Scheme, 2020 ” and revised the “ LLP Settlement Scheme, 2020 ” which is already in vogue to provide a first of its kind opportunity to both companies and LLPs to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.

The date of birth recorded in 'Aadhaar' will now be accepted as valid proof of date of birth for the purpose of rectification, provided that the difference in the two dates is less than 3 years. 

Advisory on Opting-in for Composition Scheme for 2020-21 - Extension of Dates in view of COVID-19 pandemic

Frequently Asked Questions On EPF Advance To Fight Covid-19 Pandemic  Q1: Who is eligible for the advance from EPF to fight COVID-19 Pandemic?  Ans. Any member of EPF Scheme, 1952 with UAN (Universal account number) employed in any establishment or factory covered under EPF & MP Act, 1952.  Q2: Under which provision of the EPF Scheme, 1952, a member is entitled for benefit?  ANS: That a new sub-para (3) has been inserted in Paragraph 68L of the EPF Scheme, 1952 through GSR No.225(E) published in the Gazette of India (Extraordinary), Part II- Section 3- sub section (1) on 28.03.2020 to provide for benefit.  Q3: What is the new beneficial provision?  ANS: It is to provide for non-refundable advance from their EPF account to EPF members, employed in factory or establishment located in an area, which is declared to be affected by outbreak of epidemic or pandemic by the Appropriate Govt.  Q4: How can I know whether establishment/factory in which I am employed i

Conditional waiver of late fees & Interest for delay in furnishing GSTR-3B, based on aggregate turnover in the preceding previous year. Notification No. 31 & 32/2020 – Central Tax

Government has announced various relief measures relating to statutory and regulatory compliance matters across sectors amid Covid-19. Accordingly, Government has issued following notifications in order to provide relief to the GST taxpayers.

Last week, the Reserve Bank of India has allowed Banks to declare a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities. The Indian Banks Association has answered a list of Frequently Asked Questions about the technicalities of the moratorium.

Extension of realisation period of export proceeds Presently value of the goods or software exports made by the exporters is required to be realized fully and repatriated to the country within a period of 9 months from the date of exports.