Monthly Mailer

15^th March 2021

Dear Reader,

We hereby draw your attention to some of the recent updates under Goods and Service Tax (GST) and Income Tax regulations:

1. E-Invoicing under GST for taxpayers having an aggregate turnover exceeding INR 50 crores:

Central Board of Indirect Taxes and Customs (CBIC) recently notified that E-invoicing will be mandatory for business to business (B2B) transactions for taxpayers having aggregate turnover exceeding INR 50 crore from 1 st April, 2021. This is applicable for entities whose aggregate turnover is exceeding INR 50 crores in any of the preceding financial year from FY 2017-18 and onwards. Turnover includes taxable, exempt, export, SEZ unit, branch transfer, deemed exports, etc. E-Invoicing includes GST Invoice, Credit Note and Debit Note.

E-Invoicing means reporting the details of specified GST document to a Government notified portal and obtaining a reference number. It does not mean generation of invoice through a Government portal. Under the E-Invoicing system, an identification number will be issued against each invoice by the Invoice Registration Portal (IRP) which is managed by the GST Network.

2. No tax-saving deduction on compliance of Corporate Social Responsibility (CSR) to companies:

Companies which have opted for new income tax rate which was announced in September 2019 while filing their income tax returns for Assessment Year (AY) 2020-21 and to whom complying with CSR is mandatory, will now not be eligible to get deduction under Section 80G of the Income Tax Act for such CSR donation made. This is effective from AY 2021-22.

3. Withholding Tax (TDS) on rent payment exceeding INR 50,000 per month and filing of Form 26QC:

This is a reminder to Individuals and Hindu Undivided Family (HUF) (other than those whose accounts are to be audited) who pay rent of INR 50,000 per month or above will have to deduct TDS at the rate of 5% (TDS rate for Financial Year 2020-21 is 3.75%) once in a financial year. It has to be deducted at the time of credit or payment (whichever is earlier) of the rent to the account of payee (landlord) for the last month of the financial year OR the last month of the tenancy if the property is vacated during the year.

We hope you will find these updateds useful for your necessary further action.

In case of you need any additional information , Kindly write us on info@kdpaccounts.com

Disclaimer:

This note does not form an opinion from our end and before taking any decision based on above, it is recommended to consult our experts on the subject.
Kamdar Desai & Patel will not be liable for any damages (including, without limitation, damages for loss of business projects, or loss of profits) arising in contract, tort or otherwise from the use of or inability to use this article, or any of its contents, or from any action taken (or refrained from being taken) as a result of using this article or any such contents.