*Upload registered office details- MCA has released the form INC-22A*

It has become applicable from today and needs to be filed on or before 25th April, 2019. If not filed, then after 26th April, 2019 the company status will be shown as “ACTIVE non compliant”. Now the filing fees is NIL upto 25th April, 2019. Thereafter the filing fees will be Rs.10,000/- per form.   

The 14 requirements for this form are as follows:  
1) Photo of the registered office is required – One Photo of the exterior of the building showing the name of the building and another photo of the inside of the registered office is required. 

2) Photo of the Director signing by DSC is required. Therefore, please take photograph of the Director sitting inside the registered office is required. Please take frontal photo of the Director. 

3) Both photos to be in PDF format. 

4) If there is no activity in the registered office, then please show some activity. The name board of the company should be affixed outside the commercial premises of the company indicating therein the name, address, CIN, telephone no. e-mail id, website address, if any, GSTIN, if any. In case any registered office does not have any business activity, then please ensure change in registered office before filing of this form. 

5) E-mail id of the company – such as contact@abc.com or office@abc.com or if it is yahoo mail – companyname@yahoo.com. E-mail id in the name of directors, auditors or third persons will not be allowed.

6) E-mail id is subject to OTP;

7) In the address field, the latitude and longitude of the registered office is required to be given. This can be obtained from Google maps. 

8) List of all directors as on date of filing – all directors’ DIN should be in active mode. if the KYC of any Director is not done, then it is better to get to done immediately before filing this form 

9) Details of statutory auditors appointed;

10) Details of cost auditors, if any;

11) Details of MD, CEO or WTD of the company – in case company is required to have a MD or WTD as per the Rules, then it should have it or else appointed before filing of this form. MD required in case of listed companies or public companies with paid up share capital of more than Rs.10 crores. 

12) Details of company secretary – in case the company is required to appoint a company secretary as per the Rules and it does not have, then it is better to appoint one before filing of this form. CS is mandatorily required in listed companies, public companies with paid up share capital of more than Rs.10 crores or private company having paid up share capital of more than Rs.5 crores. 

13) Details of CFO – in case the company is required to appoint a CFO as per the Rules and it does not have, then it is better to appoint one before filing of this form. CFO is required in listed companies or public companies with paid up share capital of Rs.10 crores or more.  

14) Details of annual filing for financial year 2017-18. In case the annual e-forms i.e. AOC-4 & MGT-7 for FY 2017-18 is not filed, then it is better to have these forms filed first before INC-22A

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31 March 2019 last date for Income Tax Return

The last date to file your ITR for the FY 2017-18 was 31 August 2018. Not filing your ITR on time can lead to a penalty, but there are also other consequences and inconveniences attached to the delay like,

1.Penalty for Late Filing u/s 234F
2.Reduced Time for Revising Your Return
3.Payment of Interest
4.Carry Forward of Losses is Not Permitted
5.Delay in Receiving Refunds

If you have missed the due date to file your return, you can still file it before 31 March 2019 by paying a late fee if applicable. Please note that the time limit for filing a IT return late for FY 2017-18 expires on 31 March 2019.

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*📒8 NEW FEATURES AT GST PORTAL*

🌴 *TDS/TCS Credit available for utilisation.*

☘ A new window has been enabled for claiming TDS/TCS credits. The  taxpayer has the option of accepting or rejecting the TDS/TCS credits available and filing their return, after which the credits get transferred to the cash ledger and can be used for making GST payments.

☘ This facility helps taxpayers easily identify such credits and take action accordingly.

🌴 *E-way bill data can be imported for GSTR-1.*

☘ The E-way bill (EWB) and the GST portal has now been integrated. The same gets automatically imported for the B2B and B2C (large) invoices sections as well as the HSN-wise-summary of outward supplies section. Users only need to verify the data and proceed.

☘ This has definitely saved both time and effort for a business person, as it avoids unnecessary data-entry. However, many businesses were performing this sort of reconciliation themselves using smart tools to ensure accuracy of data.

🌴 *List of preferred banks available for making payments.*

☘ A taxpayer can choose from a list of 6 preferred banks that will be auto-saved at the time of making payments. If he makes payment through a 7th bank account, the same will get added, and the least used bank account will get removed. He has the option to delete the bank accounts at any point in time.

☘ With this feature in place, the taxpayer need not enter bank details every time, as he can simply select a bank with the click of a button and proceed to make payment.

🌴 *Refund applications can be filed monthly for quarterly filers.*

☘ There is good news for taxpayers opting to make payments on a quarterly basis. They now do not have to wait for the quarterly filing of refund applications, as the same can be done monthly. However, a prerequisite for the same would be to ensure that GSTR-1 for the quarter has been filed.

☘ This will definitely help mobilise the working capital flows of a business as there is no longer a need to wait till the end of a quarter to apply for a refund.

🌴 *Appeals can be filed online and system-generated acknowledgements will be issued.*

☘ A taxpayer can file an appeal against an order passed by an appellate authority, or against an advanced ruling by an appellate authority on the GST portal. He even has the option to file an application with the appellate authority in the case of rectification of a mistake in order passed.

☘ In the event of an appellate authority failing to issue a final acknowledgement within the stipulated time, then a system generated final acknowledgement will be issued with the remark “subject to validation of certified copies”. This has simplified the process of filing appeals and also helps tracking the status of the same.

🌴 *Composition taxpayers can reply to SCN online for compulsory withdrawal.*

☘ For composition taxpayers, there is a simpler way to reply to show cause notices(SCN) now. This is in the case of a show cause notice being issued for compulsory withdrawal from the composition scheme, and if proceedings are initiated against the composition taxpayer, he now has the option to reply to show cause notices on the portal.

🌴 *Bank account details not mandatory at the time of registration.*

☘ Declaring bank account details are now optional at the time of registration for Normal, OIDAR and NRTP taxpayers. Previously, this was a mandatory requirement. The bank account details can be updated at a later date, which will be at the time of the first login.

☘ Hence, a GST registration number can be obtained without the same. New businesses who are in the process of obtaining bank accounts can simultaneously proceed with GST registration, thus saving time.

🌴 *Claiming of ITC and amendment of B2B invoices of 17-18 are re-opened up till March 2019.*

☘ Users can now amend B2B invoices of FY 2017-18. The facility to amend the GSTR-1 details of FY 17-18 was closed on filing the September 2018 return. The same has been made available while filing returns for the months of January to March 2019. Input tax credit of FY 2017-18 that was omitted and hence unclaimed up till September 2018 can be claimed now up to March 2019 as well. This was a much-needed remedy for taxpayers who made errors reporting any invoice in the past, or previously missed out claiming genuine credit.

☘ While there are updates being rolled out from time-to-time, users are still hoping to see a smooth system that is completely online and indefectible. In the future, users can look forward to more new updates that would familiarise taxpayers with the new return system that is likely to be introduced by July 2019.

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FinTax praised and published by Taxguru and study cafe

*#FinTax step head*

FinTax being the first in kind to publish summary and brief procedure on amendment on deposit rules for Companies.

Yesterday our post got praised and published on 2 renowned sites, link of which is provided below

https://taxguru.in/company-law/amendment-deposit-rules-companies.html

https://studycafe.in/2019/02/amendment-in-deposit-rules-for-companies.html

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For company e-Form ACTIVE (Active Company Tagging Identities and Verification) to be filled on or before 25th April 2019 in Form INC-22A

Every company incorporated on or before the 31^st December,2017 shall file the particulars of the company and its registered office, in e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25th April 2019  in Form INC-22 A.

Provided that any company which has not filed its due financial statements under section 137 or due annual returns under section 92 or both with the Registrar shall be restricted from filing e-Form-ACTIVE, unless such company is under management dispute and the Registrar has recorded the same on the register.

Provided further that companies which have been struck off or are under process of striking off or under liquidation or amalgamated or dissolved, as recorded in the register, shall not be required to file e Form ACTIVE.

Provided also that the Director of the Company should also not be Disqualified due to non-filing of DIR-3 KYC and Disqualified under section 164(2).

Provided also that no request for recording the following event based information or changes shall be accepted by the Registrar from such companies marked as "ACTIVE non-compliant". unless " e-Form ACTIVE" is filed -

(i) SH-07 (Change in Authorized Capital);

(ii) PAS-03 (Change in Paid-up Capital);

(iii)DIR- 12 (Changes in Director except cessation);

(iv) INC-22 (Change in Registered Office);

(v) INC-28 (Amalgamation, de-merger

Where a company files "e-Form ACTIVE", on or after 26th April 2O19, the company shall be marked as "ACTIVE Compliant", on payment of fee of Ten thousand rupees".

The attachment to this form will be photograph of Registered office showing external Building and inside office also showing therein at least 1 Director/KMP who has affixed his her Digital Signature to this form”.

Please feel free to revert in case of any Clarifications/information required.

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MSME Form1 Date extended to 30 days from date of deployment of Form

MCA has extended MSME Form1 due Date in order to avoid inconvenience to stakeholders on account of various factors. It is stated the period of thirty days for filing initial return in MSME Form 1 as specified in Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 dated 22.01.2019 shall be reckoned from the date the said e-form is deployed on MCA 21 portal.

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Extension of due date for filling GSTR-3B for January- 2019

Due date of filing GSTR-3B for the tax period January, 2019 has been extended up to 22nd February, 2019.
Only for J&K it is extended up to 28th Feb 2019.
(Source - GST Website)

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Amendment in Deposit Rules for Companies

Amendment in Deposit Rules for Companies

 

By Companies (Acceptance of Deposits) Amendment Rules, 2019 : Every Company other than Government Company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in term of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the official Gazette (i.e. 22nd January, 2019) in e-form DPT-3 within 90 days from the date of publication.". 

 

The due date of filling the following details is on or before 22nd April, 2019.

 

Total amount outstanding in form of unsecured loan from 1st April, 2014 to 22nd January, 2019, received from: 

·  Director

·  Relative of Director

·  Shareholders

·  Another Company

·  Banks/Financial Institutes

·  Foreign Individual

·  Foreign Body Corporate

·  As an advance for supply of Goods, services, immovable properties

·  On issue of bonds/Debentures

·  Any amount of twenty five lakh rupees or more received by a start up company, by way of convertible note (convertible into equity shares or repayable within a period not exceeding five years from the date of issue) in a single tranche, from a person.   

·   Any amount received by a company from - 

            (A) Alternate Investment Funds; 

            (B) Domestic venture Capital Funds; 

            (C) Infrastructure Investments Trusts; 

            (D) Real Estate Investment Trusts; 

            (E) Mutual Funds registered with the Exchange Board of India.   

 

Do contact us for timely filling or for further assistance.

 

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FinTax - Summary of GST recent amendments & clarifications

FinTax - Summary of GST recent amendments, circulars & clarifications

Central Tax Notifications

Sr. No.	Notification No. and date	Particulars
1	67/2018-Central Tax dated 31st December 2018	The Government vide this notification has extended the window for completing the migration process for the persons who had obtained the provisional IDs but could not complete the migration process. The earlier deadline of 31st August 2018 has now been extended to 31st January 2019
2	68/2018-Central Tax dated 31st December 2018	Vide Notification No. 67/2018-Central Tax dated 31st December 2018, the Government has extended the migration window for persons who had obtained provisional IDs but not completed the migration process. Such persons can now finish the migration by 31st January 2019. In line of the same, the deadline for filing GSTR-3B for such persons for the period July 2017 to February 2019 has been extended to 31st March 2019
3	69/2018-Central Tax dated 31st December 2018
4	70/2018-Central Tax dated 31st December 2018
5	71/2018-Central Tax dated 31st December 2018	Vide Notification No. 67/2018-Central Tax dated 31st December 2018, the Government has extended the migration window for persons who had obtained provisional IDs but not completed the migration process. Such persons can now finish the migration by 31st January 2019. In line of the same, the deadline for filing GSTR-1 for such persons for the period July 2017 to February 2019 has been extended to 31st March 2019
6	72/2018-Central Tax dated 31st December 2018
7	73/2018-Central Tax dated 31st December 2018	Section 51 of the CGST Act mandates certain Government Departments to deduct tax from the payments being made by them towards supplies received by them. Vide this Notification, the supplies between the specified Government Departments have been exempted from the applicability of TDS. Thus, a supply made by a Government department (required to be registered under Section 51 of CGST Act) to another department (required to be registered under Section 51 of CGST Act) shall not be liable for deduction of tax at source
8	74/2018-Central Tax dated 31st December 2018	Please refer the attached document for highlights of key amendments made in the CGST Rules, 2017
9	75/2018-Central Tax dated 31st December 2018	This notification seeks to waive off the amount of late fees payable on delayed filing of GSTR-1 for the period July 2017 to September 2018 where the taxpayer has not furnished the GSTR-1 by the due date however furnishes the same between the period from 22nd December, 2018 to 31st March, 2019
10	76/2018-Central Tax dated 31st December 2018	This notification seeks to waive off the amount of late fees payable on delayed filing of GSTR-3B for the period July 2017 to September 2018 where the taxpayer has not furnished the GSTR-3B by the due date however furnishes the same between the period from 22nd December, 2018 to 31st March, 2019
11	77/2018-Central Tax dated 31st December 2018	The late fees for filing GSTR-4 (Return to be filed by Composition Taxpayers) have been waived off vide this notification
12	78/2018-Central Tax dated 31st December 2018	Vide this Notification, the deadline for furnishing ITC-04 for the period July 2017 to December 2018 has been extended to 31st March 2019
13	79/2018-Central Tax dated 31st December 2018	Certain changes in the administrative function of the department
14	04/2018-Integrated Tax, dated 31st December 2018	This notification seeks to amend the IGST Rules to provide for the mechanism to determine the place of supply and the amount attributable to various places of supply in case the following services are provided across multiple states or multiple countries - - Services directly in relation to immovable property - Lodging accommodation by a hotel, inn, guest house, homestay, club or campsite, by whatever name called, and including a houseboat or any other vessel - Accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property - Services ancillary to the above - services (including ancillary services) provided by way of organisation of a cultural, artistic, sporting, scientific, educational or entertainment event , including supply of services in relation to a conference, fair, exhibition, celebration or similar events -  supply of services relating to a leased circuit

Central Tax (Rate) Notification

Sr. No.	Notification No. and date	Particulars
Relevant changes in rate of Goods
1	24/2018-Central Tax (Rate) dated 31st December 2018	This notification amends notification No. 1/2017 - GST Rate schedule on Goods.C8 a. Supply of all the footwears (of any type) having sale value not exceeding Rs.1000 per pair will be charged GST @ 5% b. Rate of tax for supply of “Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)” have been reduced from 28% to 18%
Relevant changes in rate of Services
2	27/2018-Central Tax (Rate) dated 31st December 2018	This notification amends notification No. 11/2017 - GST Rate schedule on Services. Some of the key amendments are summarised below: a. GST will be charged at the rate of 18% on supply of service by way of construction or engineering or installation or other technical services, provided in relation of setting up of following, - (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants / devices (f) Ocean waves/tidal waves energy devices/plants b. In case of service of third party insurance of “goods carriage”, GST would be chargeable at the rate of 12% c. In case of leasing or renting of goods, GST will be chargeable at the rate as applicable on supply of like goods involving transfer of title in goods. d. GST would be chargeable at a reduced rate of 12% for services by way of admission exhibition of cinematograph films where price of admission ticket is INR 100 or less. However, in case the price of ticket is above INR 100, GST will be charged at 18%
3	28/2018-Central Tax (Rate) dated 31st December 2018	This notification amends notification No. 12/2017 - Schedule on exemption of GST on Services.
4	29/2018-Central Tax (Rate) dated 31st December 2018	This notification amends notification No. 13/2017 - Schedule on GST payable on Reverse Charge Mechanism on services.  Some of the key amendments are summarised below:  1. Services provided by business facilitator (BF) to a banking company 2. Services provided by an agent of business correspondent (BC) to business correspondent (BC). 3. Security services (services provided by way of supply of security personnel) provided to a registered person: Provided that nothing contained in this entry shall apply to, - (i)(a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies; which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or (ii) a registered person paying tax under section 10 (i.e. composition scheme) of the GST Act
5	30/2018-Central Tax (Rate) dated 31st December 2018	The said notification amend No. 11/2017 - GST rate Schedule on services. The Notiifcation adds an explanantion, that in case of Multimodal transportation of goods, the said entry will be applicable only in case of transport of goods from a place in India to another place in India.

Circulars & Orders

Sr. No.	Circulars & Order No. and date	Particulars
1	Order No. 02/2018-Central Tax dated 31.12.2018	Extends the due date for following: - Availing the input tax credit pertaining to the invoices or debit notes relating to such invoices issued during the FY 2017-18, till the due date for furnishing GST return for the month of March 2019; - Rectification of error or omission in respect of GSTR-1 filed for FY 2017-18, till the due date for furnishing GSTR-1 for the month of March 2019.
2	Order No. 03/2018-Central Tax dated 31.12.2018	Further extends the due date for furnishing of annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement (GST Audit report) in FORM GSTR-9C for the FY 2017-2018 till 30.06.2019.
3	Order No. 04/2018-Central Tax dated 31.12.2018	Extends the due date for furnishing the FORM GSTR-8 (TCS Return) by e-commerce companies for the months of October to December, 2018 till 31.01.2019.
4	Circular No. 76/2018-GST dated 31.12.2018	Clarification on following issues: 1. Government department to get registered and pay GST on supply of used vehicles, old and used goods, waste and scrap made by them to an unregistered person subject to other provisions of GST Law. 2. Penalty under Section 73(11) of the CGST Act is not payable in case of delayed filing of GSTR-3B, as the tax alongwith applicable interest has already been paid though after the due date. However, a general penalty in terms of Section 125 of the CGST Act can be imposed since the tax has been paid late in contravention of CGST Act. 3. With respect to the supplementary invoice, debit note or the credit note issued after 1st July 2017, in case of revision of prices of any goods or services supplied in the erstwhile regime (i.e. on or before 30.06.2017),  the rate as per provisions of GST Law would be applicable. 4. The TDS related provisions (Section 51 of the CGST Act) are applicable only to such authority or a board or any other body set up by an Act of Parliament / State legislature or established by any Government in which Government has 51% or more participation either by way of equity or control. 5. The taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is inclusive of the said TCS.
5	Circular No. 78/2018-GST dated 31.12.2018	Clarification around the export treatment in case of outsourced services, as under: ►    Where an exporter of services located in India is supplying certain services to a recipient located outside India, either wholly or partly through any other supplier of services located outside India, the following two supplies are taking place - - Supply of services from the exporter of services located in India to the recipient of services located outside India for the full contract value; - Import of services by the exporter of services located in India from the supplier of services located outside India with respect to the outsourced portion of the contract. The value of services as agreed to in the contract between the exporter of services located in India and the recipient of services located outside India shall be considered as export of services if all the conditions laid down in section 2(6) of the IGST Act, 2017 read with section 13(2) of the IGST Act, 2017 are satisfied. ►    The supplier of services located in India would be liable to pay IGST on reverse charge basis on the import of services on that portion of services which has been provided by the supplier located outside India to the recipient of services located outside India. The exporter of services located in India would be eligible for taking input tax credit of the IGST paid.
6	Circular No. 79/2018-GST dated 31.12.2018	Clarification on refund related issues
7	Circular No. 80/2018-GST dated 31.12.2018	Clarification around applicability of GST on supply of cranes, rigs, tools and spares and other machinery when moved from one state to another by a person on his account for use there for supply of services. It has been clarified that any such movement on own account (not involving distinct person in terms of Section 25), where such movement is not intended for further supply of such goods does not constitute a supply and would not be liable to GST.
8	Circular No. 85/2019-GST dated 01.01.2019	Clarification on GST rate applicable on supply of food and beverage services by educational institution Supply of all services by an educational institution to its students, faculty and staff is exempt under Notification No. 12/2017-Central Tax (Rate). Such services include supply of food and beverages by an educational institution to its students, faculty and staff. In this line, it has been clarified that supply of food and beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No. 12/2017-Central Tax (Rate). However, such supply of food and beverages by any person other than educational institutions based on a contractual arrangement with such institution is leviable to GST @ 5%.

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Recent Circular issued by CBIC

1. CBIC seeks to clarify situations of mentioning details of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1 [Circular No. 89/08/2019-GST]

Registered persons making inter-State supplies to unregistered persons have been instructed to report details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B. Similar transactions with invoice value up to Rs 2.5 lakhs to be reported in Table 7B of FORM GSTR–1. It has been explained that non-mentioning of such information would result in non-apportionment of the due amount of IGST to the State where such supply takes place, mismatch in the quantum of goods or services or both actually supplied in a State and the amount of integrated tax apportioned resulting non-compliance of Section 17(2) of IGST Act, 2017. The circular also states that contravention of any of the provisions of the Act or the Rules attracts penalty of Rs. 25000/-

2. CBIC seeks to clarify situations of compliance of rule 46(n) of the CGST Rules, 2017 while issuing invoices in case of inter- State supply [Circular No. 90/08/2019-GST]

All registered persons making supply of goods or services or both in the course of interstate trade or commerce to specify the place of supply (POS) along with the name of the state in the tax invoice issued as per Section 31 of CGST Act 2017. Contravention of any provisions of the Act or Rules would attract penal provisions u/s 122/125 of the CGST Act.

3. CBIC seeks to give clarification regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018 [Circular No. 91/08/2019-GST]

The said suppliers shall be deemed to have complied with the provisions of law as far as payment of tax is concerned so long as the amount of CGST+SGST is equal to the IGST due on such supplies. The circular further states that due to the non-availability of the facility on the common portal during the said period, suppliers have reported such supplies as intra-State instead of inter-State supplies.

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Inter-State supply and mandatory disclosure in GST returns

Inter-State supply and mandatory disclosure in GST returns

Board has issued instruction under the power conferred under Section 168 that the registered persons while making inter-State supplies to unregistered persons shall report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1 as mandated by the law.

Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act which may extend to INR 25,000.

Circular No. 89/08/2019 - GST - Dated 18th February, 2019

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Representation for Removal of Section 49(A) of CGST Act

Ahilya Chamber of Commerce and Industry in a memorandum addressed to Goods and Services Tax (GST) Council seeking removal of Section 49(A) of CGST Act as the clause restricts cash flow adversely hurting businesses. In the memorandum given to CGST commissioner on Tuesday, the chamber has stated that Section 49 (A) of CGST does not allow dealers to utilize credit kept in one GST account for paying taxes and requires payment in cash for clearing the taxes. According to the chamber, due to this clause, dealers are forced to shell out more cash to pay taxes and this blocks capital adversely hitting business.
Ahilya Chamber of Commerce and Industry general secretary Sushil Sureka said, “As per Section 49 (A) of CGST Act, despite having credit in one of the GST accounts dealers are not able to utilize credit and are forced to make cash payment for taxes.” Industry representatives said delayed refunds and financial crunch in market are badly hurting business, especially for small and medium enterprises. The chamber said that dealers are already bearing the burden of depositing GST from their own funds as payments against their bills comes much after due date of GST payment.
An official from state commercial department acknowledged the memorandum. The chamber has also objected to addressing hundreds of dealers in one single email by the department without hiding dealers IDs through citing security concerns. Sureka said that they have objected to an email, where the department has addressed 200 dealers in one single email and has attached an excel sheet that has GST numbers, names and addresses of dealers visible to all recipients. Industry representatives also shared their concerns about issues pertaining to taxes on value addition and input tax credit

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File Declaration for Commencement of Business on MCA

File Declaration for Commencement of Business on MCA

The Companies Ordinance 2019 has made it mandatory for all companies having share capital and Incorporated after 02nd November 2018 to file Declaration for Commencement of Business in Form INC-20 A within 180 days from the date of Incorporation of the Company.

Form INC-20 A  requires the below declaration from the Director :-

1. Every subscriber to the MOA has paid the value of the shares agreed to be taken by him on the date of making of such declaration and the proof of the same has to be attached in the form.

2. The company has filed with the Registrar a verification of its registered office.

For further information or details, please contact us.

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AAR Rulling - Employees and GST

A ruling by Maharashtra Authority for Advance Rulings (AAR) is a shot in the arm for corporate employees. They will not have to bear a GST levy, when they partly reimburse the employer company for various facilities such as a canteen food and medical insurance cover provided to them. Typically, as per corporate policies, a portion of expenses for providing these facilities is recovered from employees as a deduction from salary. Till now it was a grey area in the state on whether GST would be levied on the amounts paid by employees.
The recent ruling settles the matter for employees in Maharashtra and it is also expected to have persuasive value for similar issues across the country. The AAR, in its ruling, which is now available in the public domain, has held that recovery of 50% of the amount of medical insurance premium from employees for covering the health of parents cannot be treated as recovery made towards ‘supply of services’. Thus, no GST will apply. The applicable rate of GST on medical insurance premium is currently 18%. The Maharashtra ruling was given to POSCO-India Pune Processing Centre, a Pune based entity that is part of a South Korean group of companies.
The AAR bench observed that it is the insurance company which is providing the service of insurance and not the employer (company), which is in the business of distribution of steel coils. Earlier, the Kerala AAR had ruled in a case (Caltech Polymers) that recovery from employees for canteen services (ie, food) provided by the company is subject to GST. This had opened a Pandora’s box. Tax experts had held that in the backdrop of the ruling, all employer-to-employee supplies could be held taxable, increasing the compliance burden for the company and resulting in additional costs for employees, from whom GST would be recovered.

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AAR Ruling:- Accommodation provided to Managing Director & General Manager on hotel stay is not eligible for ITC

Advance Ruling Authority (AAR) Maharashtra in case of Posco India Pune Processing Center Private Limited vide its 36/2018-19/B- dated 7th September 2018 has stated that accommodation provided to GM & MD on hotel stay is not eligible for ITC
The applicant has reported that as per POSCO group policy, key personnel like the Managing Director (MD) and General Manager (GM) are deputed to the Indian POSCO group companies from POSCO overseas entity. The MD and GM are provided accommodation in a hotel and the cost of the same is part of the cost to the Applicant and is included as perquisites in the salary as per the provisions of Income Tax Act, 1961. The Applicant wants to seeks Ruling on whether they can claim ITC in respect of the GST charged by the hotel on the stay expenses of the MD/GM as per the provisions of the GST Law
AAR noted that providing residential accommodation in a Hotel is not in furtherance of their business. It was observed that the MD/GM could have been provided with any other residential accommodation and still would have performed their duties for the applicant. In the case of residential accommodation, as per the provision of the GST laws, GST is not liable to be paid on the rent received. “It is the intention of the Government not to tax the rent paid by any person when the rent is paid for any place of residence.
In this case, if the MD/GM were staying at any residential place or society, the applicant would have paid only rent without GST. It is seen that the applicant has made various submissions supporting their contention that Input Tax Credit is admissible in respect of GST paid for the hotel stay in case of rent-free hotel accommodation provided to GM/MD of the company. However in view of the above discussions we find that the Hotel Accommodation is being used by the applicant as a residential premises of their MD/GM which is for the personal comfort of both and therefore in view of the provisions of Section 17(5)(g) we hold that they are not eligible to claim the ITC for the same.
Further, the AAR also ruled that the company isn’t eligible to claim ITC of GST paid on health insurance provided to employees if it is partly recovered from them subsequently. The ruling said that the company was creating this fiction of providing health insurance to their employees only to avail 100% ITC of payments made to the insurance companies.
AAR held that since there is no supply of services there is no question of time and value of the supply. And therefore, the applicant cannot claim the input tax credit of GST paid to the insurance company.

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