⇒ HIGHLIGHTS OF ORDINANCE PASSED ON SEPTEMBER 20TH, 2019 FOR AMENDMENT OF TAXATION LAWS
For existing domestic companies:
-Tax rates reduced to 22% subject to non-availment of deductions, exemptions and incentives.
-Effective tax rate shall be 25.17%
-No MAT liability.
Change in tax rate is applicable for FY 2018-19, next advance tax liability to be prepared accordingly.
For new domestic manufacturing companies incorporated after 1st October 2019:
-Tax rates reduced to 15% subject to certain conditions and non-availment of deductions, exemptions and incentives.
-Effective tax rate shall be 17.01%
-No MAT liability.
Reduction in rate of mat to 15% from 18.5% for companies who do not opt concessional tax regime
Enhanced surcharge not to apply in case of capital gains arising on sale of:
• equity share or equity-oriented funds or unit of business trust liable to STT in the hands of individual, HUF, AOP, BOI and AJP
• any security including derivatives in the hands of FPIs
SCOPE OF CSR 2% SPENDING EXPANDED TO INCLUDE incubators funded by central and state government or agency, PSUs, IITs etc.
⇒ W.e.f. 1st July, 2019, ESI contribution reduced from 6.5 % to 4 % i.e.employer's portion is 3.25% and employee's portion is 0.75 %.
⇒ Circular issue by CBIC for electronic filing of Central Excise returns and for electronic payment or Excise Duty and Service Tax arrears under the new portal www.cbic - gst.gov.in.
⇒ Deferment of reporting of clause 30c and clause 44 pertaining to GAAR and GST respectively in the Tax Audit Report(Form 3CD) vide circular no. 9 / 2019 dated 14 - 5 - 2019.
⇒ The High Court of Telangana in Megha Engineering & Infrastructure Ltd.has held interest under section 50 for delay in payment of GST should be charged on the gross tax liability including the portion paid by input tax credits.
⇒ The Punjab LWF(Haryana Amendment) Act, 2019 dated 14.03.2019 : -The employee has to contribute every month 0.2 % of his / her salary / wages subject to maximum of INR 25 and employer has to contribute double the amount contributed by employee.
⇒ SEBI Clarification - No Transfer of securities held in physical on or after April 1, 2019.
⇒ India signs Bilateral Agreement for Exchange of Country - by - Country Reports(CbCR) with USA for financial years commencing on or after 1st January, 2016.
⇒ UDIN made mandatory for all the certificates and reports issued by CA w.e.f. 01st Febuary, 2019.
⇒ The annual return under GST(Form GSTR 9) for FY 2017 - 18 is now available for filing on the GST portal.
⇒ Income tax exemption limit on gratuity increased to INR 20 Lacs.
⇒ While computing GST, TCS portion(levied as per provision of Income Tax) need to be excluded from value of goods and services.
⇒ MCA has published Amendment according to which every company incorporated on or before the 31st December, 2017 shall file the particulars of the company and its registered office, in e - Form ACTIVE extended upto 15 june 2019(Due date).
⇒ MCA has directed that all companies, who get supplies of goods or services from micro and small enterprises and whose payments to MSME suppliers exceed forty five days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of MSME Act, 2006, shall submit a “MSME Form I” which includes Details of all outstanding dues to such Enterprises Suppliers existing on the Date of Notification of this Order within 30 days from January 22, 2019.
⇒ Special allowance or any other allowance(unless it is variable or linked to working capacity improvment) shall be considered along with basic wage for determining epf contrbution.landmark ruling of the Apex Court in the case of The Regional Provident Fund Commissioner & Others V.VIVEKANANDA VIDYAMANDIR & OTHERS dated 28th February, 2019.");