Insights

Vistra India Update 371

March 1 to March 15 2019

INCOME TAX

1.    Income tax exemption for gratuity enhanced Up to Rs. 20 lakhs

Ministry of Finance has enhanced the income tax exemption for gratuity under section 10 (10) (iii) of the Income Tax Act, 1961 to Rs. 20 lakhs. The ceiling of Gratuity amount under the Payment of Gratuity Act, 1972 has been raised from time to time keeping in view over-all economic condition and employer’s capacity to pay and the salaries of the employees, which have been increased in private sector and in PSUs. The latest such enhancement of ceiling of gratuity was made vide Government of India Notification dated 29.03.2018 under which the gratuity amount ceiling has been increased from Rs.10 lakhs to Rs. 20 lakhs w.e.f. 29.3.2018.

Click to view the circular

2.    Startup Companies -  tax benefits

Section 56(2)(Viib) of Income Tax Act 1961 provides that where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares will be taxed under the head Income from Other sources. Now the Central Government has notified that the above clause will not apply to consideration received by a startup company for issue of shares that exceeds the face value of such shares, if the said consideration has been received from a person, being a resident, by a startup company which fulfills the following conditions

a.    It has been recognised by Department for Promotion of Industry and Internal Trade (DPIIT) under para 2(iii)(a ) or as per any earlier notification 
b.    aggregate amount of paid up share capital and share premium of the startup after issue or proposed issue of share, if any, does not exceed, Rs. 25 crore 

Click to view the circular

GOODS AND SERVICES TAX

3.    Exemption from registration for any person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakhs

The Board vide Notification No. 10/2019 – Central Tax has increased the exemption limit for obtaining the registration under GST to any person who is exclusively engaged in the supply of goods and whose aggregate turnover in the financial year does not exceed Rs. 40 lakhs except the following persons.

a.    Persons required to take compulsory registration under section 24
b.    Persons engaged in making supplies of the goods namely, Ice cream and other edible ice, whether or not containing cocoa, Pan masala and all goods falling under chapter 24, i.e. Tobacco and manufactured tobacco substitutes
c.    Persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand and
d.    Persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration under the said Act

Click to view the circular

4.    Due date of filing of GSTR – 1  extended

The Board vide Notification No. 11/2019 & 12/2019 – Central Tax has extended the due date for filing of GSTR – 1 as detailed below.

a.    For taxpayers with aggregate turnover up to Rs. 1.5 crores, filing of return for the quarter April 19 to June, 2019 the due date has been extended till 31st July 2019.

b.    For taxpayers with aggregate turnover of more than Rs. 1.5 crores for the months of April, May and June, 2019 the due date of filing is 11th day of the succeeding month.

Click to view the circular

5.    Due date of filing of GSTR – 3B  notified

The Board vide Notification No. 13/2019 – Central Tax has extended the due date for filing of GSTR – 3B return for the months of April, May and June, 2019 to 20th day of the succeeding month.

Click to view the circular 

6.    Increase in Turnover Limit for Existing Composition Scheme

The Board vide Notification No. 14/2019 – Central Tax has given the option to pay the tax under composition Scheme provided the aggregate turnover in the preceding financial year did not exceed Rs. 1.50 crore. In case of states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand the turnover limit is 75 lakhs for opting composition levy.    

Click to view the circular 

7.    Composition Scheme for Services and Mix Supplies:

The Board vide Notification No 2/2019 Central Tax (Rate) has made available composition scheme for suppliers of services or Mix suppliers with a rate of 6% (3% CGST and 3% SGST) having first supplies of goods or services or both upto an aggregate turnover of Rs. 50 lakh made on or after the 1st day of April in any financial year with certain conditions.

Click to view the circular 

CUSTOMS

8.    Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 21/2019 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 8th of March 2019 respectively.  

Click to view the circular

Insights

Stay in the Know with Our Latest Thinking