Professional Updates

GST E-invoice is mandatory for taxpayers with turnover exceeding 5 Cr Update  on 24/02/2022 : E-invoice under GST applicability turnover CBIC issued Notification No. 01/2022 – Central Tax, dated 24th February, 2022, revising turnover threshold for applicability of E-invoice. As per the notification  w.e.f. 01/04/2022 , e-invoicing shall be applicable to the registered person having aggregate  turnover exceeding Rs. 20**  crores in a any preceding financial year (in GST era). Earlier limit was exceeding Rs 50 Cr w.e.f. 01/04/2021: Read here ** Turnover limit for e-invoice has been reduced to 10 Cr w.e.f. 01/10/2022 vide  No. 17/2022–Central Tax dated 01/08/2022 *** Turnover limit for e-invoice has been reduced to 05 Cr w.e.f. 01/08/2023 vide notification no No. 10/2023–Central Tax dated May 10, 2023 History of turnover limit for E-invoicing under GST Over the period of e-invoicing introduction government is increasing bracket of taxpayers for generating e-invoices. Don't get surpri

Deduction of freebies by the pharma companies to the Doctors The Supreme Court (SC) on 22nd February 2022 in the case of M/s Apex Laboratories Pvt. Ltd passed a verdict that granting freebies/gifts to doctors by pharmaceutical companies to promote sales of medicines is “clearly prohibited by law ". Apex court also dismissed plea by pharma company seeking deduction under the Income Tax Act on account of giving incentives/gifts to medical practitioners i.e. deduction of expenditure incurred by way of gifts/freebies etc. The court said that giving gifts to doctors by pharmaceutical companies is prohibited under the purview of law and in such a situation tax benefit under section 37(a) of the Income Tax Act cannot be claimed. The top court said that by doing so, it would completely affect the public policy. Explanation 1 to section 37 also prohibits deduction of expenses which are incurred for any purpose which is prohibited by law. Also, on 01.08.2012, the Central Board of Direct Ta

  Submit Letter of Undertaking (LUT) for the FY 2022-23 by March 31, 2022   U nder GST Law, Export of goods or services can be made without payment of integrated tax under the provisions of rule 96A of the Central Goods and Services Tax Rules, 2017 (the CGST Rules). Under the said provisions, an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before effecting zero-rated supplies. Notification No. 37 /2017 – Central Tax dated 04/10/2017 extended facility of filing LUT for all the taxpayers.

Section 194R- TDS on benefit or perquisite of a business or profession from the finance bill 2022 Clause 58 of the finance bill 2022 proposes to insert new section 194R in the Income tax act 1961 to track & tax perquisite of business and profession. In this article I am trying to give brief about section 194R in the form of FAQs for better understanding. 1. What kind of income, section 194R going to cover?  New section 194R will cover the income falling under clause (iv) of section 28 of the Income Tax Act. i.e. Income falling under the head of Profits and gains of business or profession. 2. Which is the income covered by section 28 clause (iv)? Section 28. The following income shall be chargeable to income-tax under the head "Profits and gains of business or profession", (i).... (ii).... (iv) the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession  Now vide finance bill 2022 this income will be