Companies will have to reverse tax credit availed on goods destroyed due to Covid-19 lockdown

Many FMCG and pharma companies that had paid Goods and Services Tax (GST) on raw materials and services used to manufacture perishable goods are staring at a situation where they will have to reverse input tax credit (ITC) availed, as these goods could never be sold before their expiry date due to the nationwide lockdown.

As per the GST framework, companies have to first pay GST on raw materials or services used to make a product. Companies can avail the credit once the final product is sold to distributor or wholesaler. The wholesaler or the distributor could get the GST credit when they sell the product to the retailer.

The problem now is, in many cases, the retailers are coming back and saying they are unable to sell the products as their shelf life has passed. This will lead to a situation where companies, wholesalers and in some cases even retailers will have to reverse the input tax credit availed.

Read more at: Click here

ITR-4 Available for E-Filing for FY 2019-20

ITR-4- Key Insertions in the Income Tax Return form Now Available for E-Filing at Income Tax Portal for Assessment Year (AY) 2020-21 / Financial Year (FY) 2019-20

Today i.e. on the 5th of June, 2020, the department has made the Income Tax Return Preparation Software (also known as the income tax return utility) for ITR-4 available on its e-Filing portal for filing the income tax returns.

Starting today, all the taxpayers will be able to file their ITR-4 pertaining to financial year 2019-20.

ITR-4- For individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under section 44AD, 44ADA or 44AE and not for an individual who is either Director in a company or has invested in unlisted equity shares.

Detail change of ITR-4: Click here

Source: https://www.incometaxindiaefiling.gov.in/moreNewsUpdates

Check our Instagram and Facebook pages regularly if you wish to stay updated.

Income Tax Department opens ITR filing window for those using ITR-1 Form for A.Y 2020-21

The Income Tax Department on Tuesday announced that it has opened the window for the filing of income tax returns (ITR) for the Financial Year 2019-20 (Assessment Year 2020-21) for those using ITR-1 form.

Due to the situation arising out of the spread of coronavirus and the nationwide lockdown, the I-T department has delayed the process of issuing ITR forms this year. The ITR filing deadline has also been extended from July 31 to November 30.

Source: Click here

Previous Post: Career Opportunities for GST Practitioners in India

Income Tax Appellate Tribunal is set to launch an E-Filling Portal

The Government of India vide Letter Dated June 01, 2020, issued an announcement of E-filing Portal. Therefore, in the current times of unique challenges on account of Covid-19 Pandemic, invoking digital strategies have become the most effective way forward for judicial / quasi-judicial institutions all over the world. Prime Minister has been leading the campaign of Digital India and has emphasized that “We must ensure that technology is accessible, affordable and adds value”.

The Standard Operating Procedures (SOPs) detailed guidelines for use of the facility of E-Filing Portal are under consideration and shall be announced once the Portal is hosted on the NIC server after completion of formalities, very soon.

The announcement can be assessed at: click here

Previous Post: Career Opportunities for GST Practitioners in India