301st Issue of Tax Connect
Table of Contents
Tax Calendar
| Due date | Form/Return/Challan | Reporting Period | Description |
| 07th June 2021 | ITNS 281 | May 2021 | Due Date for Payment of TDS on all types of payments |
| 07th June 2021 | ITNS-281 | May 2021 | Due Date for payment of TCS u/s 206C (other than Government Assessee) |
| 07th June 2021 | Form 27C | – | The last date of submission of declaration i.e., for no TCS u/s 206C(1A) obtained from manufacturer to the Commissioner/Chief Commissioner of Income Tax |
| 07th June 2021 | Form 15G/15H | – | Last date of Submission of a copy of declaration forms received from deductee by the deductor for non-deduction of TDS under section 197A before the Chief Commissioner or Commissioner |
| 07th June 2021 | Form 26QB | – | Due Date for Payment on transfer of certain immovable property other than agricultural land |
| 11th June 2021
(Extended to 26th June 2021) |
GSTR-1 | May 2021 | Due Date for furnishing details of Outward Supplies for all the monthly taxpayers (not covered under QRMP Scheme) |
Income Tax
Case Law
M/S. RAO COMPUTERS CONSULTANTS PVT. LTD., VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX (OSD), CIRCLE5 (1) (1), BANGALORE-2021 [KARNATAKA HIGH COURT]
Brief: Disallowed the expenditure incurred wholly and exclusively for the purposes of the business of complex commercial letting out services and receipts on account of sale of software technical services being merger.
OUR COMMENTS: In the present case, the petitioner has earned income from letting out of the building along with other amenities in the industrial park. Further, authorities have treated the business income derived from complex commercial activities of letting out buildings along with the other amenities in an industrial park partly as income from house property and partly as income from other sources. Disallowed the expenditure incurred wholly and exclusively for the purposes of the business of complex commercial letting out services. Karnataka High Court held that as decided in VELANKANI INFORMATION SYSTEMS (P.) LTD. [2013 (8) TMI 113 – KARNATAKA HIGH COURT]. What is the intention behind the lease and secondly what are facilities given along with the buildings and documents executed in respect of each of them is to be seen. Thirdly, it is to be found out whether it is inseparable or not. If they are inseparable and the intention is to carry on the business of letting out the commercial property and carrying out the complex commercial activity and getting rental income therefrom, then such a rental income falls under the heading of “Profits and gains of business or profession”. In fact, any other interpretation would defeat the very object of introduction of section 80-IA as well as the scheme which is framed by the Government for the development of industrial parks in the country. In that view of the matter, the finding recorded by the appellate authority as well as the Tribunal is in accordance with law and does not suffer from any legal infirmity which calls for interference.
Karnataka High Court held that a substantial question of law has been answered by the Supreme Court in ‘PEERLESS GENERAL FINANCE AND INVESTMENT COMPANY LTD. [2019 (7) TMI 880 – SUPREME COURT]. The order passed insofar as it pertains to Assessment Year 2010-11 is hereby quashed. Hence, the Revenue appeal has been dismissed.
[In favour of the assessee]
Notifications
Various Relaxations And Extension Of Due Date Announced By CBIC
OUR COMMENTS: The Ministry of Finance, Government of India, Central Board of Indirect Taxes and Customs vide Notification No. 16/2021-CGST to 26/2021-CGST dated 01.06.2021 has notified the following:
● Section 112 of the Finance Act providing for retrospective amendment in Section 50 of the CGST Act related to levy of interest has been notified. As per the notification, the Central Government hereby appoints the 1st day of June 2021, as the date on which the provisions of section 112 of the said Act shall come into force.
● Extension of Due Date for GSTR-1 for the month of May 2021 by 15 days for all the taxpayers.
● Provided Relief by lowering an interest rate for a specified time for tax periods March 2021 to May 2021.
● Rationalization of late fee for delay in filing of return in FORM GSTR-3B, to provide conditional waiver of late fee for delay in filing FORM GSTR-3B from July 2017 to April 2021 and to provide a waiver of late fees for late filing of return in FORM GSTR-3B for specified taxpayers and specified tax periods.
● Rationalization of late fee for delay in furnishing of the statement of outward supplies in FORM GSTR-1.
● Rationalization of late fee for delay in filing of return in FORM GSTR-4.
● Rationalization of late fee for delay in filing of return in FORM GSTR-7.
● Amendment in Notification no. 13/2020-Central Tax to exclude government departments and local authorities from the requirement of issuance of e-invoice.
● Amendment in Notification No. 14/2021-Central Tax in order to extend the due date of compliances which fall during the period from “15.04.2021 to 29.06.2021” till 30.06.2021.
● Extension of Due Date for filing FORM GSTR-4 for the financial year 2020-21 to 31.07.2021.
● Extension of Due Date for furnishing of FORM ITC-04 for Jan-March, 2021 (Quarterly) to 30.06.2021.
[For further details please refer to the notifications]
Circulars
Investment Limits For Foreign Portfolio Investors (FPI) In Government Securities
OUR COMMENTS: The Reserve bank of India, Government of India vide Circular No. 05/2021-22/44-RBI dated 31.05.2021 has specified the Investment limits for Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF) for the FY 2021-22. The limits of investments are mentioned hereunder:
a. The limits for FPI investment in Government securities (G-secs) and State Development Loans (SDLs) shall remain unchanged at 6% and 2% respectively, of outstanding stocks of securities for FY 2021-22.
b. As hitherto, all investments by eligible investors in the ‘specified securities’ shall be reckoned under the Fully Accessible Route (FAR) in terms of A.P. (DIR Series) Circular No. 25 dated March 30, 2020.
c. The allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for FY 2021-22.
d. The entire increase in limits for SDLs (in absolute terms) has been added to the ‘General’ sub-category of SDLs.
Related Topic:
307th Issue of Tax Connect
[For further details please refer to the Circular]
Margin Payment For Transactions In Government Securities By Foreign Portfolio Investors
OUR COMMENTS: The Reserve bank of India, Government of India vide Circular No. 06/2021-22/48-RBI dated 04.06.2021 has decided to allow banks in India having an Authorised Dealer Category-1 licence under FEMA, 1999 to lend to Foreign Portfolio Investors (FPIs) in accordance with their credit risk management frameworks for the purpose of placing margins with CCIL in respect of settlement of transactions involving Government Securities (including Treasury Bills and State Development Loans) by the FPIs.
[For further details please refer to the Circular]
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