Corporate Compliance Calendar for October 2020

This article contains different Compliance necessities for the Month of October, 2020 under Statutory Laws. Consistence signifies 'clinging to rules and guidelines.' Compliance is a ceaseless cycle of observing laws, strategies, and guidelines, rules to meet all the essential administration prerequisites with no disappointment.

1. Compliance requirement under Income Tax act, 1961

Important updates:

1. 5% tax will be levied on foreign fund transfer

   Any amount sent abroad to buy foreign tour packages, and every other foreign remittance made above ₹7 lakh, will attract a tax-collected-at source (TCS) beginning 1 October unless tax is already deducted at source (TDS) on that amount. While the tax on foreign tour packages will be 5% for any amount, for other foreign remittances the tax will kick in only for the amount spent above ₹7 lakh.

2. New Tax Collected at Source (TCS) regime

   The Income Tax Department issued guidelines for applicability of TCS provision which requires an e-commerce operator to deduct 1 per cent tax on sale of goods and services. The new Tax Collected at Source (TCS) regime will come into effect from October 1 . The Finance Act, 2020 inserted a new section 194-O in the Income-tax Act 1961 which mandates that with effect from October 1, 2020, an e-commerce operator shall deduct income tax at the rate of 1 per cent of the gross amount of sale of goods or provision of service or both, facilitated through its digital or electronic facility or platform

3. Buying television sets can be expensive

   Open cell panels will attract 5% import duty from 1 October, with the government saying that a duty exemption expiring at the end of this month will not be extended . As part of 'Atmanirbhar Bharat' the government is keen to expand domestic production capacity for open cell panels so that imports can be curbed. The one-year exemption given to the item expires today, 30 September.

4. 'Transparent Taxation–Honouring the Honest'- a platform to meet the requirements of the 21st century taxation system. The platform has major reforms like Faceless Assessment, Faceless Appeal and Taxpayers Charter.
5. The Faceless Assessment Scheme, 2019 (earlier known as the E-assessment Scheme, 2019) was introduced in 2019 to impart efficiency, transparency and accountability to the assessment process by inter alia eliminating the interface between the Assessing Officer and the assessee and team-based assessment with dynamic jurisdiction. Similar Scheme will be introduced for disposal of appeals by the Commissioner (Appeals) in a faceless manner.
6. Measures taken by Government to reform Direct Tax regime

   In order to provide a non-intrusive and non-adversarial tax ecosystem, the Government has taken various measures to reform the Direct Tax regime:

   • · Rationalisation of tax rates,
   • · simplification of income tax return forms,
   • · faster processing of refunds,
   • · speedy resolution of grievances and
   • · Introduction of faceless processes to ease the compliance burden
7. All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing.
8. Final Opportunity - One-time relaxation for Verification of Income-tax Returns by EVC/ITR-V for Assessment Years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which are pending due to non-verification. Please note that the verification must be completed by 30-SEP-2020.
9. Form 35 is re-enabled to file appeal in accordance with the Faceless Appeal Scheme,'Save draft' will be enabled shortly.

Important Notifications:

2. Compliance Requirement under GST, 2017

Keeping in view the preventive measures taken to contain the spread of Novel Coronavirus (COVID-19) and the difficulties being faced by the GST taxpayer, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs, has extended the due date for Filing GST Returns .

Filing of GSTR-3B

GSTR 3B Due Dates for May 2020

A. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

B. Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group A)

Group A States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep

C. Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group B)

Group B States: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi

D. Filing Form GSTR-1:

E. Compliances for Composition taxpayers

F. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers

G. GST Annual Returns:

Key UPDATE(s):

1. E Invoice mandatory for taxpayers whose Aggregate Turnover in any of the previous financial year from 2017-18 onwards is more than Rs 500 crore. (Notification No. 60, 61 & 70/2020 CT; Dated 30th July 2020) from 1 Oct 2020.

CBIC notifies registered person, other than a Special Economic Zone unit and those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds Five hundred crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person or for exports.

2. Implementation of the Dynamic QR Code for B2C invoices extended till 01.12.2020.

Where registered person having turnover in excess of INR 500 crore, makes supply to an unregistered person (i.e. B2C supply) then invoices shall contain QR Code. [Notification No. 72/2019 – CT dated 13th December, 2019] (subject to certain exceptions).

The said provisions were to be applicable w.e.f. 1st October, 2020. Amidst COVID – 19, the CBIC has decided to further defer the same and make it effective from 1st December, 2020

3. CBIC extends exemption on transportation Services of goods to a place outside India

CBIC extends exemptions on supply Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India and Services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India under CGST Act till 30th day of September, 2021

4. One time relaxation in implementation of E-Invoice Provisions for the month of October, 2020

In the initial phase of implementation of e-invoice, it has been decided that the invoices issued by such taxpayers during October 2020 without following the manner prescribed under rule 48(4), shall be deemed to be valid and the penalty leviable under section 122of the CGST Act, 2017, for such non-adherence to provisions, shall stand waived if the Invoice Reference Number (IRN) for such invoices is obtained from the Invoice Reference Portal (IRP) within 30 days of date of invoice.

5. New functionalities made available for TCS and Composition taxpayers

i) Provision to make amendment, multiple times, in Table 4 of Form GSTR-8

ii) TCS facility extended to composition taxpayers

GST UPDATES from 01.09.2020 to 30.09.2020: