CA Mohamed Asharaf FCA, DISA(ICA)

40th GST Council Meeting    12 June 2020 The 40th GST Council Meeting was held today that is on the 12th of June 2020 via video conference. The hon’ble FM chaired the Council Meeting at 11 AM. This was the first Council Meeting after the outbreak of COVID-19. Everyone had their eyes on the Council Meeting. On the one hand where taxpayers were expecting certain relaxations from the government. The government was looking out to generate some revenue sources. Here are the key decisions that were taken in the 40th GST Council Meeting: 1.No Late fee on 3B for Nil Tax Liability: For all those who have no tax liability but have not filed their  GSTR-3B  from 1st July 2017 to  January 2020  there will be  no late fee. 2. Late fee capped to Rs 500 on GSTR-3B Taxpayers with tax liability but have not filed return the late fee on GSTR-3B has been capped to Rs 500. The reduced late fee would apply for 3B returns filed between 1/07/2020 to 30/09/2020. 3.Those who have not filed their GSTR-3B return

MORATORIUM - Opt or Opt out ? Due to the continuing COVID-19 situation, RBI has permitted banks and financial institutions to extend the moratorium on repayment of loans till August 31, 2020. I wish to reiterate that the moratorium does not mean waiver of interest but in fact leads to an increase in loan outstanding and consequently an increase in EMI at end of moratorium period. Please think and act wisely. CA. Mohamed Asharaf

Charitable Trusts and exempt institutions have to reapply   for Income Tax registration   The  Finance Act, 2020 has made far-reaching and sweeping changes  pertaining to the registration and exemptions of charitable institutions. All the existing charitable and religious institutions (including NGOs) which are registered or approved under the Section 12A , Section 12AA , Section 10(23C) and Section 80G are compulsorily required to switch to section 12AB for fresh registration. Currently, several hospitals, schools and colleges are registered simultaneously under section 10(23C) and 12AA. Charitable trusts and institutions currently registered under both section 10(23C) and section 12AA will now be required to apply for revalidation or renewal of either the approval under section 10(23C) or registration under section 12AA, but not both. Section 12AA dealing with the procedure for registration of a charitable trust will cease to be applicable from June 01, 2020 instead,

Additional Income Tax benefits on Housing Loan                                                 Effective from AY 2020-21 Conditions :      ·     Assessee is an individual.      ·     Not eligible to claim deduction u/s. 80 EE.      ·      A loan should have been taken for acquiring residential house.      ·      Loan should have been sanctioned between 01.04.2019 and 31.03.2020 (extended to                     31.03.2021 in Finance Act 2020).      ·      Stamp Duty Value of residential house should not exceed Rs.45 lakhs.      ·      Assessee shall not own any other house property on the date of sanction of loan.      ·      Deduction is equal to interest payable or Rs. 1,50,000 whichever less.      ·      Interest claimed under this provision cannot be claimed again u/s. 24.     Section 24(b) Section 80EE Section 80EEA   Deduction of Rs. 2 lakhs for self occupied property and entire interest for let-out property.

Relaxation/ Changes under Tax provisions due to COVID 19   ·        Due dates for filing income tax returns of all Individuals, HUFs, Association of Persons, Body of Individuals etc. whose accounts are not required to be audited , for the AY 2020-21   falling due on 31.07.2020 and 31.10.2020 extended to 30. November. 2020.   ·        A company or an individual or other entities   (like proprietorship, firm etc.) or working partner of a firm whose accounts are required to be audited due for completion on 30.09.2020 extended to 31. October. 2020.   ·        Due dates for TDS returns for Quarter ended 31.03.2020 extended from 31.05.2020   to 30.06.2020.   ·        Re-registration process of Charitable Institutions deferred till 01.10.2020.   ·        Interest on tax dues falling between 20.03.2020 and 29.06.2020 reduced to 0.75% per month (instead of 1% per month) provided the dues are paid on or before 30.06.2020.   ·        Due date for Revised Returns or

New Composition Scheme for Service Providers under GST  (Updated on 27.11.2019) The Government introduced the composition scheme to assist small taxpayers and reduce the compliance burden.   A dealer under composition scheme is required to maintain fewer records/books of accounts and not required to file monthly returns. Earlier, the scheme was available only to the suppliers of goods. However, in the 32 nd GST Council Meeting, it has been announced that the scheme will now be available to service providers too. The scheme for service providers is available from 1 April 2019. Rate for composition service providers: 1.      For composition service providers, the applicable GST rate is 6% (being 3% CGST + 3% SGST). 2.      For calculation of the aggregate annual turnover, the value of supply of exempt services byway of extending deposits, loans or advances where the income is represented by way of interest or discount, shall not be taken into account. Complia