MONEY CONTROL : MADRAS HC JUDGEMENT ON GST on RWA MAINTENENCE CHARGES
It also held that in a case where legislature intended that the exemption shall apply only to cases where the amount charged does not exceed a specified pecuniary limit, It states as much that the exemption shall apply only where the gross amount charged for such service does not exceed a said amount in a financial year. Here, nothing as such is stated
The question now before the Associations is whether to follow the Judgement of the Madras High Court and stop charging GST or to keep charging GST on the entire amount if the charge per member per month is more than Rs 7500.
In this regard, it is to be noted that Madras High Court’s judgment will be binding on the taxpayers of the corresponding state. In case taxpayers in other states want a similar relief it is better to challenge the GST circular in their own jurisdictional high court.
Further, there is every chance that the government may file a petition before the Supreme Court challenging the high court’s order. Also, the law may see a retrospective amendment, which has already happened in a similar matter challenging the charge of taxes on the concept of mutuality.
Hence, until the Supreme Court decides as such, we would advise the taxpayers to tread with caution.
BUSINESS STANDARD: RECTIFYING MISMATCH BETWEEN 26AS, FORM 16 CRUCIAL BEFORE FILING RETURNS
COMPARE THE TWO FORMS
“Interest on loans given by you, on bank deposits, and on tax refund should also be matched with form 26AS.”
NEWS 18: COMPLIANCE NORMS FOR SECTION 206AB
“It is important to note that to check GSTR compliance the GST portal already has this kind of feature. Now for ITR, the income tax portal is also expected to have this feature.”
“There was an apprehension among trade and industry incase this checking has to done multiple times in a financial year, but the same has been clarified that even if a vendor has not filed its return by the due date in AY 21-22 his compliance status for the tax deductor till 31st March 2022 will be compliant on the basis of the tax return filing of the previous two years,”
“Further in case a non-compliant person files his returns during FY 21-22, then it’s status changes to compliant and it is saved from the rigours of Sec 206AB,”
This feature will be made available only to Tax Deductors with a Valid TAN Number and not to all taxpayers.
“Possibly going forward this facility may be made available to all persons with a PAN No. This would act as a double check for the recipients to see whether the vendors are compliant or not and it may help them select a compliant vendor over a non compliant one.”
TEAM TAX CONNECT
“NEWS 18: CRITICAL ISSUES RELATING TO TDS U/S 206AB APPLICABLE FROM 1ST JULY’21”
The Income Tax Department has recently unveiled a new ITR e-filing portal for taxpayers. There will be a host of features available on the new website. The new income tax return e-filing portal may have a new facility to check whether the individual has filed earlier returns or not.
Under new section 206AB, for specified persons who have not filed ITRs for last two years, a higher TDS has to be deducted by the payer. It is expected that for for deductor to check whether the deductee has filed its last two ITRs or not, the new tax portal is going to have a new facility
In absence of such a facility, it may not be possible to implement the new Section 206AB. It is important to note that to check GSTR compliance the GST Portal already has this kind of feature. Now for ITR, the income tax portal is also expected to have this feature.
If a company pays a contractor A and it is liable to deduct 2% TDS on the payment to the contractor, it has to go and check on the portal whether A has filed its last 2 ITRs or not. If A has not filed last 2 ITRs and the total TDS deducted from A is more than Rs 50,000 then the company has to deduct 5% TDS instead
“NEWS 18 : EXTENSION OF FILING RETURN DOES NOT IMPACT PENAL INTEREST PROVISION U/S 234A IN CERTAIN CASES”
“ In case the amount of tax payable in cash at the time of filing the ITR is more than Rs 1 lakh, then the penal Interest under Section 234A shall apply from the original due date of filing the ITR. For example, if the tax payable by an assessee is Rs 5 lakh, the advance tax paid is Rs 1 lakh and the TDS/TCS is Rs 2 lakh. Hence for this assessee the tax payable in cash at the time of filing the return is Rs 2 lakhs (which is greater than Rs 1 lakh). For this assessee the due date of filing ITR is July 31. The interest under the Section 234 will be chargeable at 1% from August 1 irrespective of extension of due date of filing income tax returns till September 30. This is a dampner of sorts in this extension circular ”
“MONEY CONTROL: 25TH MAY 2021: New income tax e-filing portal from June and how it would benefit income-tax payers”
“ It is expected that the filed ITRs would travel faster to the central processing centre and intimations would be received by taxpayers sooner and consequently refunds would be generated sooner. ”
“ The interactive question and answer system would enable even salaried taxpayers to file their tax returns themselves without much need for data entry. ”