RBI’s big move to inject liquidity in the market
Our Country’s outlook is now heavily contingent upon the intensity, spread & duration of the pandemic. There is a rising probability that most parts of the world economy would also slip into recession. RBI’s role is to maintain its “accommodative” stance and would maintain its position “as long as necessary” to revive growth while ensuring inflation remained within the target.
Government announces financial relief to combat the lockdown crisis
Relaxation from tax and regulatory compliance timelines in view of COVID-19 outbreak
Relaxation from tax and regulatory compliance timelines in view of COVID-19 outbreak Having gripped the world with massive footprints, the coronavirus pandemic has kicked off a wave of mass hysteria over the conscious precautions. Surging cases of people hoarding essential commodities in large quantities, have come to the notice. Routine life of everyone is badly affected due to shutting down of schools, colleges, malls, Cinema halls etc. India has gone in lockdown mode and economy will also remain in this mode with the increasing cases of the spread of Covid-19 disease at a fast clip over the past few days. Several companies such as Maruti Suzuki India Ltd, Titan Co. Ltd, Dabur India Ltd and Asian Paints Ltd. have announced closure of their manufacturing facilities. All domestic passenger flights are being suspended for the month. While there is a general agreement that social distancing is the need of the hour, there are growing concerns over the severe economic impact of an extreme lockdown situation. India has gone ahead of various countries in imposing strict restrictions on its citizens to fight the spread of Covid-19. In this situation the India Government decided to defer the Tax and regulatory payments and compliance filings as a relief to combat the existing crisis. The Hon’ble Finance Minister (FM), Nirmala Sitharaman held a press conference on Tuesday 24th March, 2020 to announce various important relief measures taken by the government on statutory and regulatory compliance matters which has been highlighted below: a) Income Tax Due date for filing belated and revised income tax returns (ITR) under section 139(4) and 139(5) respectively of the Income Tax Act, for FY 2018-19 (AY 2019-20), extended from 31st March, 2020 to 30th June, 2020. A person having Permanent Account Number (PAN) is required to link his Aadhaar number on or before 31st March, 2020. Failure to do so shall make the PAN inoperative immediately after 31st March, 2020. Extension has been granted for linking of Aadhaar with PAN from 31st March 2020 to 30th June 2020. Under the Direct Tax Vivad se Vishwas Act, 2020, if a taxpayer under the Act opts for withdrawal of appeals, he/she is required to pay 100 % of the disputed tax if paid by 31st March, 2020, and if paid after 31st March, 2020, 110 % of the disputed tax is required to be paid. Under the relief measures announced in the press release, the additional 10 % amount has been waived off, if the amount is paid by 30th June, 2020. It has been now decided that where the time limit of due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer, including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT law, Equalisation Levy law, Vivad Se Vishwas law is expiring between 20th March, 2020 to 29th June, 2020, it shall be extended to 30th June, 2020. In the cases of delay in deposit of advance tax, self-assessment tax, regular tax, TCS, equalisation levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), interest of 12% p.a. (i.e. 1% p.m.) and for delay in deposit of TDS interest of 18% p.a. (i.e. 1.5% p.m.) is levied. The Government has given a relief by reducing the interest rate of 9% p.a. (i.e. 0.75% p.m.) instead of 12%/18% and removing the penalty provision, only in the cases where delayed payments will be made during 20th March, 2020 to 30th June, 2020. b) GST/Indirect Tax Taxpayers having aggregate annual turnover less than INR 5 crore will be allowed to file return under Form GSTR-3B due in March 2020, April 2020 and May 2020, till 30th June, 2020 without any interest, late fee, and penalty whereas others having annual turnover more than or equals to INR 5 crore will be allowed to file the same with a reduced interest of 9% p.a. instead of the existing 18% p.a., from 15 days after the relevant due date but without any late fee or penalty. Another major relief provided is the extension of the due date for opting for composition scheme till 30th June, 2020. Moreover, the last date for making payments for the quarter ending 31st March, 2020 and filing of return for FY 2019-20 by the composition dealers has also be extended till the 30th June, 2020. The due date of filing the annual return in Form GSTR-9 for the FY 2018-19, which was due on 31st March, 2020, has been extended till 30th June, 2020. (Notification no. 15/2020 – Central Tax dated 23 March 2020 has already been issued in relation to the extension of due date for filing annual return for FY 2018-19). Due dates for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where is expiring between 20th March, 2020 to 29th June, 2020, has been proposed to be extended to 30th June, 2020. Moreover payment date under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 shall be extended to 30th June, 2020 without any interest, if payment is made by 30th June, 2020. C) Customs The Government has decided to start customs clearance on 24X7 basis till 30th June, 2020, even during the lockdown period and has also decided to relax the timelines where due date for issuance of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc. or time limit for any compliance under the Customs Act and other allied laws is expiring between 20th March, 2020 to 29th June 2020, it has been decided to extend the same till 30th June, 2020. D) Financial Services Considering the crisis situation and the lockdown decision, the government has decided that no charges will be levied on cash withdrawal
CARO 2020: Another Step Towards Effective Auditing Of Financials Of Corporates
Moving towards a 10 trillion dollar economy:India 2030
India is at the cusp of a global economic revolution, being one of the fastest-growing economies in the world with an average growth rate of about 7%.The projections made by the International Monetary Fund(IMF) state that India is likely to grow consistently at higher rates and continue its economic upswing till 2020. Read More…
India A 5 Trillion Dollar Economy By 2024-25
Indian economy has been on growth trajectory since the last few years and is heading towards achieving its humongous target of $5 trillion economy by 2024-25, which will make India a global economic power moving from 7th to 3rd position in terms of current dollar exchange rate. The Hon’ble Prime Minister Narendra Modi while chairing the fifth meeting of the Governing Council of Niti Aayog said “Goal to make India a 5-trillion-dollar economy by 2024, is challenging, but achievable, with the concerted efforts of States” Read more…
5 Key changes for the Real Estate industry in GST that will be effective from 1st April 2019
The 34th meeting of the GST Council was held on 19th March 2019 where numerous rate-cuts and changes for the real estate industry were recommended in order to reduce the tax/compliance burden on all the concerned stakeholders. These changes were announced via several notifications dated 29th March 2019. Below are five of the most important changes brought about by such notifications which have been effective since 1st April 2019. 1.Previous rates (till 31st March 2019) The tax rates prevailing till 31st March 2019 and in force under Notification No. 11/2017-C.T.(Rate) were: Commercial apartments – 18% (effective rate being 12%) Residential apartments (other than those below) – 18% (effective rate being 12%) Residential apartments under notified schemes – 12% ( effective rate being 8%) In case of ongoing projects, the developers may opt the one-time option to pay GST at the old rates or transition to the new rates. However, if he/she chooses to pay GST at the old rates, it must be done by 10th May 2019 post which, it will be deemed that the new GST rates have been exercised. 2.New rates (from 1st April 2019) Notification No. 3/2019-C.T.(Rate) gives the new rates for construction services in case of certain specific units. These rates are mandatory for projects commencing on or after 1st April 2019 and optional for projects which have commenced prior to the specified date. For units in a Residential Real Estate Project (RREP), the rates are: Affordable residential apartments – 1.5% (effective rate being 1%) Residential apartments other than the above – 7.5% (effective rate being 5%) Commercial apartments – 7.5% (effective rate being 5%) For units in a real estate project other than RREP, the rates are: Affordable residential apartments – 1.5% (effective rate being 1%) Residential apartments other than the above – 7.5% (effective rate is 5%) Commercial apartments – 18% (effective rate being 12%) 3. Other composite supplies of works contract For works contract services, a rate of 12% has been prescribed for sub-contractors in case of residential apartments in a project with a carpet area of up to 60 sq. m. in metropolitan cities or 90 sq. m. otherwise, and for which the gross amount charged is not more than Rs. 45 lakhs. This rate shall be applicable when such residential apartments constitute at least 50% of the total carpet area of all the apartments in the project, and the developer has not exercised the option to pay GST at the old rates for such services in case of ongoing projects. In case the above criteria are not satisfied, the developer shall be liable to pay the shortfall in GST, i.e., 6% under RCM. In case of certain works specified under Notified Schemes, the residual GST rate for works contract services would be 12%. Further, in all other cases, it would be 18%. 4.Liability of Developer in respect of the transfer of development rights/FSI or grant of long term lease of 30 years or more (on or after 1st April 2019) GST on construction services provided to the landowner against the transfer of development rights/FSI is payable by the developer in the normal course. However, where such transfer takes place on or after 1st April 2019, the liability for the payment of GST shall be deferred till the time the completion certificate is issued or it is first occupied. Besides, GST in respect of the transfer of development rights/FSI or grant of long term lease of 30 years or more shall be payable by the developer under RCM in all the cases. 5.Apportionment of Common ITC Apportionment of common ITC in case of the units which are sold before and after the completion certificate is issued or it is first occupied (i.e. between taxable and non-taxable supplies) must be undertaken separately for each project and is to be calculated by the due date of return for September following the end of the financial year of issuance of completion certificate/first occupation. While transitioning to the new rates in respect of ongoing projects, developers are required to carry out such apportionment of ITC as a prerequisite condition. The above changes have been brought about to ease the concerns of the real estate industry, which is facing some complex issues. The actual objective of these changes is to bring the sector’s entire supply chain within the scope of GST. The notifications issued on 29th March 2019 were meant for stakeholders to adapt and implement the new tax framework for the betterment of the real estate sector. They seek to provide clarifications to the existing complexities in this area. About SARC Associates SARC Associates is one of the leading business consulting firms established in the mid-eighties, under the aegis of Sunil Kumar Gupta, having its corporate office in New Delhi and offices across the country with footprints in London. SARC is manned by 17 consulting partners and more than 300 professionals. The professional culture at SARC is crafted to bring the best out of our people, addressing the most complex challenges and thereby driving the vision of our partnered Businesses and Communities. We offer top-notch business consulting services ranging from Business and Financial Advisory, Assurance, Tax and Compliances, Private Equity and Fund Raising, Litigations and Legal Advisory, FEMA and FDI among others.
The Ultimate Guide to Breach of Contracts
A contract breach might sound like a commonplace for a layman but in regards to the legal landscape, there are diverse ramifications of the same. That said, every breach isn’t the same and before we delve deeper into this discussion, it is important to understand the type of contract breach and what aspects pave or rather escalate the given situation.Being one of the top law firms in india we are sharing some pointers on the same. Contract Breach: What does it signify? A contract is a legal arrangement between two parties i.e. promisor and promisee which defines a proper flow pertaining to the fulfillment of certain obligations. A breach therefore involves an abrupt termination of the contract from a specific end and it may be regarded as an anticipatory breach or an actual breach— depending on the existing conditions. Anticipatory Breach: Details This form of contract breach is considered if it takes place before the actual period of performance. For example, if the promisor and promisee have made a legal arrangement regarding a certain product or service to be shared at a certain point in time and the promisor denies proceeding just before the inception of the contract; the act comes under the radar of an anticipatory breach. In regards to the Indian Contract Act, Section 39— the anticipatory breach is stated as an act where the concerned party, in regards to a specific contract, refuses to perform the desired arrangements and disables promise fulfillment in its entirety. This allows the promisee to put an abrupt end to the existing contract provided continuance acquiescence isn’t assured. Actual Breach: Details This form of contract breach is taken into account if discrepancies are encountered during the time of contract performance. Put simply, actual contract breach happens when one of the two parties fails to execute his or her promises on the given day; thereby making the breach public in the form of verbal or written application. Thus, it would be a great idea to reach out to any top law firms in india to help you navigate such a situation. Other Types of Contract Breaches While we have discussed some of the most prominent types of contract breaches, there are a few others which can be taken into account. Minor Breach– A minor obligation breach which isn’t impactful enough to affect the concerned contract. Fundamental Breach– The most elementary aspect of the contract takes a hit which compromises the existence of the entire situation. Material Breach- A substantial part of the contract is breached which allows one party to press for damages even if the contract isn’t terminated. How to Deal with Contract Breach? Remedies that Hold Understanding about contract breaches won’t help if the concerned parties aren’t familiar with the remedial measures. Here are some of the immediate actions that can be taken, in regards to an anticipatory, actual, fundamental, or material breach. Suing Even if the concerned party doesn’t end the contract in case of a breach, he or she has the right to sue the other person for monetary damages. In case of any of the mentioned breaches, the lawsuit can either be filed instantaneously or upon the completion of contract fulfillment date, under Section 73 of the Contract Act. Another approach in case of a breach is to sue the party for performance i.e. instead of offering a monetary compensation, the guilty party is asked by the court to fulfill his or her performances within the mentioned timeline. Filing for Contract Recession In case of material or fundamental contract breach, the concerned authority has the power and right to appeal under the Indian Contracts Act, Section 75 i.e. to rescind the contract and ask for compensation. Filing Injunction The person who has breached the contract is herein restrained from undertaking any other professional activity before the dispute gets settled. Appealing under the Act of Quantum Merit This remedial measure comes in handy for the promisee provided he or she has delivered a specific portion of the mentioned products or services before being shunned by the promisor who terminates the contract, abruptly. This way filing for Quantum Merit makes sure that partial payment is made. Inference While contracts, both legal and verbal are indispensible aspects of our existence, breaches are almost as common as their inception. However, before handling any dispute regarding a contract breach, it is important to understand the overall premise, take a look at the party statements, and eventually make the remedial call. Being one of the topmost Legal Advisors in Delhi, SARC & Associates https://sarc.global/ can help you out with any situation where there is a breach of Contract in a totally transparent manner. About SARC Associates SARC Associates is one of the leading financial advisors in Delhi offering legal expertise too and established in the mid-eighties, under the aegis of Sunil Kumar Gupta, having its corporate office in New Delhi and offices across the country with footprints in London. SARC is manned by 17 consulting partners and more than 300 professionals. The professional culture at SARC is crafted to bring the best out of our people, addressing the most complex challenges and thereby driving the vision of our partnered Businesses and Communities. We offer services ranging from Business and Financial Advisory, Assurance, Tax and Compliances, Private Equity and Fund Raising, Litigations and Legal Advisory, FEMA and FDI among others.
ITR FORMS FOR FY 2018-19: WHAT’S IN STORE FOR TAXPAYERS
The income-tax department of India has released new tax return forms for the financial year 2018-19 a few days back. There are four types of Income Tax Return forms- ITR 1, ITR 2, ITR 3, ITR 4, and every person is required to fill the form that comes under their sort, on the basis of income, residential status, etc. Here’s a deeper insight by one of the financial consultancy firms in India. ‘Income Tax Return’ Income Tax is calculated on the basis of a person’s income and is levied by the Central Government. The provisions relating to Income-tax are governed by the Income-tax Act, 1961. However, Income Tax Return is a form in which the taxpayers state their tax payments of the financial year, and this procedure is referred to as ‘Income Tax Filing’. It is a statutory requirement for all the eligible individuals or businesses to file their income tax returns, and they have to file it before the deadline, i.e. 31st July of each year, but for businesses requiring audit, it is 30th September, and for the businesses requiring TP report, it is 30th November. As noted by top tax firms in Delhi there are several forms on the Indian Tax Department of India website that can be used to file the returns for different taxpayers (resident, non-resident, individual, non-individual, etc.) having different incomes from different sources (salary, business, interest earnings, investments, capital gains, dividends, etc.). If the excess tax is paid by the taxpayers during the given year, they are refunded the balance by the Income Tax Department as an income tax refund. ‘ITR Forms for the Financial Year 2018-19’ To begin with, taxpayer need to understand the difference between Financial Year and Assessment Year. Financial year is the year in which the income is earned, whereas assessment year is the year subsequent to the financial year, in which the evaluation is made. At the start of the new financial year, the Central Board of Direct Taxes (CBDT) had released the new ITR forms. In the new forms, some of the on hand schedules have been modified and some new schedules have been established. Let’s have a look at them in detail- ITR-1 A company’s director or people having investments in unlisted companies in the previous year cannot use ITR-1 now. From this year, even if someone’s income includes income of any other person on which tax has been deducted, they cannot use this form. Unlike last year, the new ITR-1 requires a thorough estimation of income from salary, from house property and income from other sources (interest incomes from the bank accounts, fixed deposits, etc), which was constrained to single figures till last year. The new ITR-1 form has been withdrawn for a non-resident. There is a standard deduction policy in ITR-1 now, in which the standard amount that can be deducted by a salaried individual/pensioner is Rs. 40,000. For senior citizens (above 60 years) the limit of tax deduction at source on interest income has been raised from Rs. 10,000 to Rs. 50,000. Now, only very senior citizens (above 80 years) using ITR-1/ITR-4 can file physical returns, unlike last year, where two categories of taxpayers could use this advantage, which included the individual tax payers whose taxable income did not exceed Rs. 5 Lakhs. ITR-2 People who are filing for this category have to provide history of their stay in India for the income tax department to establish their residential status to for income tax purposes. A resident will have to state that they were in India for 182 days or more during the last year or they have been in India for 365 days or more within the four prior years. A resident but not ordinarily a resident will have to mention that they have been a non-resident in India in 9 out of 10 previous years or have been in India for less than 729 days during the 7 preceding years. A non-resident will have to provide details of where they were staying until previous year. ITR- 3 Like ITR-2, people filing for ITR-3 will also have to provide the history of their stay in India. Furthermore, PAN/TAN of the tenant has to be provided if any rental proceeds are derived from the house property on which tax has been deducted. Those who are filing ITR-3 will have to reveal information concerning turnover/gross receipts reported for goods and service tax. ITR-4 Unlike last year, one cannot use ITR-4 if their taxable income exceeds Rs. 50 Lakhs. They will now have to file ITR-3 in that case. Now non-residents will not be allowed to file this form, and only residents will be able to use ITR-4 after fulfilling certain conditions. As mentioned in ITR-1, only very senior citizens will be able to file physical returns. ‘Changes in the ITR Forms for the Financial Year 2018-19’ ITR-1 Sahaj form meant for individuals now have excluded directors of company or individuals having investment in unlisted equity shares. ITR 4 – Sugam now cannot be used by individuals/HUF who are with non-resident partnership firms, directors of companies or individuals with investment in unlisted equity shares or having more than one house property Companies that use ITR-6 to file returns will now have to submit details of new schedules for shareholding of start-ups, shareholding of unlisted company. Reporting requirements for exempt agricultural income will now be more exhaustive as individual will now have to give details of location of agriculture land, total area and quality of land. Overall, whether your engaging one of the Top Tax Firms in Delhi or any of the financial advisor in Delhi or other cities of India, they would certainly suggest taxpayers need to be very vigilant with their tax filing owing to additional reporting requirements of ITR firms. We suggest individuals to hire taxation experts to undertake their return filing. About SARC Associates SARC Associates is one of the leading business consulting firms
FEMA & FDI
India currently is one of the leading investment destinations and allows a liberal regime in majority of sectors. Foreign Direct Investment provides an important source of funds for companies. Our empanelled experts at SARC assist businesses in regulating the flow of funds and investments within the overall framework of the Foreign Exchange Management Act and the regulations governing the respective countries. We provide well-structured solutions to enable businesses handle matters related to external payments and trade in an efficient manner. Our services include: Assistance in Outbound and Inbound Investments Advisory for FDI through ECB, FCCB, ADR/GDR route FIPB and RBI compliance including application and approval Compliance of procedures for repatriation of assets/income from India
