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12th March 2022

 


We hereby draw your attention to some of the recent notifications issued under MCA, GST and Income Tax regulations:

A] Ministry of Corporate Affairs (MCA):

Mandatory use of Accounting Software to record audit trail

Every company which uses accounting software for maintaining its books of account, will have to use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled”.

Accordingly, every company, who are maintaining its books of accounts in electronic manner, shall w.e.f. April 01, 2022, use only such accounting software which has following features:

  • recording audit trail of each and every transaction
  • creating an edit log of each change made in books of account
  • state the date when such changes were made and
  • ensuring that the audit trail cannot be disabled

B] Goods and Service Tax (GST):

Applicability of E-invoicing where turnover exceeds INR 20 crores

With effect from 1st April, 2022, e-invoicing shall be applicable to such registered persons, whose aggregate turnover in any of the preceding financial year from 2017-18 till 2021-22, exceeds Rs 20 crores.

C] Income Tax :

1. NRIs to update their residential status on income tax website

Non-Resident Indians have to now mandatorily update their residential status on income tax website thereby indicating their non-requirement of linking Aadhaar with PAN. Last date to update the residential status is 31st March, 2022. Persons who fail to update their residential status may make the PAN of the Non-Resident Indian non-operative. On selection of Non-Resident as residential status, country of citizenship needs to be filled along with passport number.

2. Reminder: 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 to a resident person will have to deduct TDS @ 5% 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.

The TDS deducted should be paid to the government electronically within 30 days from the end of the month in which the tax was deducted. It has to be submitted by a challan (cum) statement in Form 26QC.

3. Reminder: Due dates for certain compliances

  • Due date for payment of the last and final instalment of advance tax is 15th March, 2022.
  • Last date for filing a belated return or revising the return of income for the Assessment Year 2021-22 (i.e. for financial year ending 31st March 2021) is 31st March, 2022. After 31st March, 2022 persons who have not filed their return of income of Assessment Year 2021-22 shall not be able to file the return for the said Assessment Year.
  • Last date for re-registrations of trust and other institutions u/s 12AB of the Income Tax Act, 1961 is 31st March, 2022.



Regards,
KDP
info@kdpacountants.com 
 

Disclaimer:

  • The above note is only for update and information subject to further study and clarifications.

    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.

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