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Monthly Archives: August 2022

Govt clarifies on the new rule of GST on Residential Properties

Government has clarified that the new rule on levying 18% Goods and Services Tax (GST) on house rent for tenants is applicable to business entities only. A tweet by the official twitter handle of the Press Information Bureau has stated that the levy is applicable in case of renting of residential units to business entities only and the levy would not be applicable when it is rented to a private person for personal use.

The fact-checking arm of the Press Information Bureau on Friday tweeted that reports claiming 18% GST on house rent for tenants are misleading.

PIB Fact Check clarified on Twitter that there would be no GST when a house is rented to a private person for personal use, and not even when the proprietor or partner of a firm wants to rent a residence for personal use.

“Renting of residential units taxable only when it is rented to a business entity. No GST when it is rented to a private person for personal use. No GST even if the proprietor or partner of a firm rents residence for personal use,” PIB Fact Check tweeted from its official handle.

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Govt clarifies there is no plan to levy any charges for UPI services

Government has clarified that there is no plan to levy any charges for UPI services. In a series of tweets, Finance Ministry said, UPI is a digital public good with immense convenience for the public and productivity gains for the economy. The clarification came amid some reports that there may be possibility of UPI transactions charge.

The Ministry said, the concerns of the service providers for cost recovery have to be met through other means. It said, the government had provided financial support for the Digital Payment ecosystem last year and has announced the same, this year as well to encourage further adoption of Digital Payments and promotion of payment platforms that are economical and user-friendly.

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CBDT exempts non-resident corporate from TCS on remittances, tour packages

The income tax department has exempted non-resident corporate entities and firms not having a permanent establishment or a fixed place of business in India from 5 per cent TCS on foreign remittances and tour packages.

The Central Board of Direct Taxes (CBDT) has notified changes to I-T rules and expanded the scope of exemption (that was previously available only to non-resident individuals) under section 206(1G) of the I-T Act.

Section 206C(1G) was introduced by Finance Act, 2020, effective October 2020 to keep a tab on forex spends by persons resident in India. The provision requires tax to be collected at source (TCS) at the rate of 5 per cent on foreign remittances of Rs 7 lakh or more under the Liberalized Remittance Scheme (LRS) of RBI.

The TCS was to be deducted by domestic tour operators on money received from non-resident Indians visiting India and booking their overseas tour package from the country.

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Companies Act, 2013 Amendment

In exercise of the powers conferred under sub-sections (1) and (3) of section 128, sub-section (3) of section 129, section 133, section 134, sub-section (4) of section 135, sub-section (1) of section 136, section 137 and section 138 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely :-

1. Short title and commencement –

 (1) These rules may be called the Companies (Accounts) Fourth Amendment Rules, 2022.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Accounts) Rules, 2014, in rule 3 –

(i) in sub-rule (1), for the words “accessible in India”, the words “accessible in India, at all times,” shall be substituted;

 (ii) in sub-rule (5), in the proviso, for the words “periodic basis”, the words “daily basis” shall be substituted;

 (iii) in sub-rule (6), after clause (d), the following clause shall be inserted, namely :-

“(e) where the service provider is located outside India, the name and address of the person in control of the books of account and other books and papers in India.”.

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GST: E-invoice mandatory for turnover above 10 crore from October 1

The centre has made E-invoicing mandatory for businesses with aggregate turnover exceeding Rs 10 crore from October 1, a move which will further plug in revenue leakage and will ensure better tax compliance from businesses.

Presently, e-invoice is compulsory for businesses with an annual turnover of over Rs 20 crore.

Initially e-invoicing was made mandatory for businesses having an annual turnover of Rs 500 crore, then it was brought down to ₹100 crore and then to Rs 20 crore and finally to Rs 10 crore.

The move to reduce turnover threshold and increase the ambit of e-invoicing is mainly aimed at resolving mis-match errors and to check tax evasion.

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ITR-V submission: Time limit for verifying ITR reduced to 30 days

The Central Board of Direct Taxes (CBDT) has reduced the time limit for verification of income tax return (ITR) to 30 days from 120 days earlier. The reduced time limit of 30 days applies to ITRs filed on and after August 1, 2022. The CBDT announced this via a notification issued on July 29, 2022. This notification will come into effect from August 1, 2022. For ITRs filed up till and including July 31, 2022 the earlier time limit of 120 days from date of filing of ITR continues, as per the CBDT notification.

As per the notification, it has further clarified the below points:

  • Where ITR data is electronically transmitted and e-verified/lTR-V submitted within 30 days of transmission of data – in such cases the date of transmitting the data electronically shall be considered as the date of furnishing the return of income.
  • It is clarified that where the return data is electronically transmitted before the date on which this Notification comes into effect, the earlier time limit of 120 days continue to apply in respect of such returns.
  • Where ITR data is electronically transmitted but e-verified or ITR-V (i) submitted beyond the time-limit of 30 days of transmission of data – in such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow.
  • Duly verified ITR-V in the prescribed format and in the prescribed manner should be sent by speed post only to 7. Centralised Processing Centre, Income Tax Department, Bengaluru – 560500, Karnataka.
  • The date of dispatch of Speed Post of duly verified ITR-V shall be considered for the purpose of determination of the 30 days period, from the date of transmitting the data of Income-tax return electronically.

What happens if ITR-V is submitted after 30 days?

If form ITR-V is submitted after the mentioned period, it will be assumed that the return for which the form ITR-V was filled was never submitted (the tax department will not take it up for processing), and the assessee will be required to electronically retransmit the data and follow up by submitting the new form ITR-V within 30 days.

Vipul Sheladiya

Sheladiya & Jyani

Chartered Accountants

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