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Directors are now allowed to opt for Biometric Authentication in their Home State for GST Registration

Posted on: April 9, 2025April 9, 2025 by: adminin: GSTLeave a reply

As you all are aware that new GST registration applicants are required to go for Aadhar Authentication either through OTP verification or Biometric Authentication at a designated GST Suvidha Kendra (GSK), based on system-driven data analysis.

However, in today’s era when the businesses are setting up across different states, specially in the time of e-commerce and quick-commerce, going to different states for biometric authentication can be an extreme challenge for business owners.

Understanding the hardship to businesses, the GSTIN has updated the Biometric functionality. GSTN has now introduced an additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State.

This facility applies to individuals listed in the Promoter/Partner tab for the following types of businesses:
a. Public Limited Company
b. Private Limited Company
c. Unlimited Company
d. Foreign Company

Now Promoters/Directors can choose any available GSK within their Home State in India (as per REG-01) for Biometric Authentication. Detailed process of opting for biometric authentication in home state can be checked here.

Action to be taken before 31.03.2025_Part 2: Filing of Declaration by Transporter under GST_Annexure-V

Posted on: April 9, 2025April 14, 2025 by: adminin: GST FilingLeave a reply

As the Financial year comes to end, there are many compliances which are to be done before 31.03.2025 to avoid any adverse consequences. One of such compliance is the declaration by the Goods Transport Agency in Annexure-V.

The GTA has undergone a drastic amendment with effect from 18th July, 2022. Earlier, the GST on GTA services was required to be paid by the service recipient under RCM. However, post amendment the GTA was given an option to pay GST under Forward Charge. To exercise the option of payment of GST under the forward charge method, GTA is required to file a declaration in form Annexure V.

The GTA may opt from either of following two options for payment of GST:
Payment of GST under Forward Charge Mechanism, i.e., GST shall be paid by the GTA on its own. The Recipient shall be eligible to claim the ITC on such service subject to Section 16 and 17 of CGST Act.
Payment of GST under Reverse Charge Mechanism, i.e., GST shall be paid by the service recipient under RCM and the recipient shall be entitled to claim the ITC of such GST.

If GTA opt for payment of GST under Forward charge then GST can be charged at either of the following Rates:
5%, No ITC of Inward supplies shall be available to the GTA;
12%, ITC of inward supplies shall be available to the GTA

Option can be opted by filing declaration in Annexure-V post login on GST portal. Such Annexure is to be filed before 31st March, 2025 for FY 2025-26.

Action to be taken before 31.03.2025_Part 1: Payment to MSMEs for compliance of Section 43B(h) of Income Tax Act, 1961

Posted on: April 9, 2025April 9, 2025 by: adminin: INCOME TAXLeave a reply

As the year draws to a close, Section 43B(h) of Income Tax Act emerges as a crucial provision that every business must address to prevent Disallowances of purchases made from MSME.

As per Section 43B(h) of Income Tax Act, Any sum payable by the Assessee to a Micro or small enterprises (Not Medium Enterprises) beyond the time limit specified under Section 15 of MSME Act shall be allowed as deduction in the previous in which sum is actually paid.

Due date for payment under MSME Act shall be:
a. If time limit is specified in the Agreement: on or before the due date agreed between the supplier and the buyer but not exceeding 45 days from the “date of Acceptance”;
b. If no time limit is specified in the Agreement: Within 15 days from the “date of Acceptance”

*Day of acceptance’ is the day of actual delivery of goods or the rendering of services.

Therefore, If both of the following conditions are fulfilled, the expense shall be disallowed under Section 43B(h) during FY 2024-25:
a. Invoice is outstanding for payment as on 31.03.2025;
b. Payment is made beyond the due date specified under MSME Act.

Mandatory ISD Registeration for common input w.e.f 1 April,2025 under GST

Posted on: April 9, 2025April 9, 2025 by: adminin: GSTLeave a reply

The Concept of ISD is no new under GST and even under pre-GST regime. Any office receiving common input services is required to distribute corresponding ITC to the beneficiary branch offices. Illustrative common input services are Security service, Advertisement Service, Audit and Accounting service etc.

Till 31st March, 2025, Common ITC is not mandatorily required to be distributed through ISD mode, i.e., the office receiving common Input service may raise an invoice under cross charge mechanism to the beneficiary branch office. Accordingly, the registered person is not required to obtain a separate GST registration as ISD.

However, w.e.f., 1st April, 2025, the definition of ISD and corresponding provisions are changed to provide for mandatory distribution of common ITC through ISD channel. Accordingly, any office receiving common Input service are required to obtain separate GST registration as ISD prior to 1st April, 2025 and distribute the common ITC through ISD mode.

Apart from hefty penalties, the non-compliance of ISD provisions may result into issuance of Show Cause Notices as well.

𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐮𝐧𝐝𝐞𝐫 𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐈𝐧𝐝𝐢𝐚-E𝐥𝐢𝐠𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬

Posted on: April 9, 2025April 9, 2025 by: adminin: Business Support Services / Professional ServicesLeave a reply

Startup India is a project initiated by the Government of India to support and encourage new business startups in India by providing Tax Exemptions, Ease Compliances, Grants, Low Cost Funding, Credit Guarantee Funds etc. A new business setup may have questions like how to apply for registration under start-up India, Benefits of registration, Eligibility criteria, How to apply for funds and Tax exemptions etc.

▶️ Eligibility Criteria:
✔️ Entity should be incorporation as private limited company, or registered as a partnership firm or a LLP;
✔️ Turnover should be less than INR 100 Crores in any of the previous financial years;
✔️ An entity shall be considered as a startup up to 10 years from the date of its incorporation
✔️ The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth.

𝐴𝑛 𝑒𝑛𝑡𝑖𝑡𝑦 𝑓𝑜𝑟𝑚𝑒𝑑 𝑏𝑦 𝑠𝑝𝑙𝑖𝑡𝑡𝑖𝑛𝑔 𝑢𝑝 𝑜𝑟 𝑟𝑒𝑐𝑜𝑛𝑠𝑡𝑟𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑎𝑛 𝑒𝑥𝑖𝑠𝑡𝑖𝑛𝑔 𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠 𝑠ℎ𝑎𝑙𝑙 𝑛𝑜𝑡 𝑏𝑒 𝑐𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑒𝑑 𝑎 “𝑆𝑡𝑎𝑟𝑡𝑢𝑝”.

▶️ Benefits
✔️ Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
✔️ Angel Tax Exemption.
✔️ Self Certification and compliance under 9 environmental & labour laws;
✔️ Exemption from requirement of Earnest Money Deposit in government tenders
✔️ Fast track & up to 80% rebate in filling patents.

#PRGUpdate hashtag#startupIndia hashtag#benefits hashtag#eligibility

TDS on Payment to Partners| Remuneration, Interest, Commission | w.e.f. 01.04.2025| Section 194T

Posted on: April 9, 2025April 9, 2025 by: adminin: INCOME TAXLeave a reply

TDS on Payment to Partners| Remuneration, Interest, Commission| w.e.f. 01.04.2025| Section 194T

So Far, any payments to Partners have been kept outside the TDS ambit, i.e., TDS is not required to deduct on Remuneration, Commission, Bonus and Interest on Capital paid to Partners.

However, Finance (No. 2) Act, 2024 has inserted Section 194T to the Income Tax which provides for Deduction of TDS on payments to partners by a partnership Firm or LLP. Following the Key points:

🎯 Applicability: Section 194T is applicable to the payments made by partnership firms and LLPs to partners. The provisions shall come into effect from 1st April, 2025

🎯 Payments Covered: Section 194T covers Salary, Remuneration, commission, bonus and Interest of loan paid to partners.

🎯 Payment Outside the Ambit of Section 194T: Section 194T does not cover payment made for Repayment of loan, drawings and Reimbursement of Expenses.

🎯 Rate of TDS: TDS is to be deducted at the rate of 10%

🎯 Threshold Limit: Aggregate Threshold Limit for the purpose of TDS deduction shall be INR 20,000/-. If Aggregate Payment to partner exceeds INR 20,000/- then TDS shall be deducted.

🎯 Who is responsible for TDS Deduction: TDS is to be deducted by the Partnership Firm or LLP.

Every Partnership firm needs to take care of TDS provisions to avoid disallowance of Expense and penal consequences.

TDS on Rent payment by Individual/ HUF under section 194-IB for residential property

Posted on: April 8, 2025April 9, 2025 by: adminin: INCOME TAXLeave a reply

Are you the one who is paying rent exceeding INR 50,000/- p.m. for your residential property? Do you know that you are liable to deduct TDS on such an amount?

We know, you have some common statements:

How would department come to know that I am paying this much of the rent;
This property is not used for business, this is my residential property;
How would I comply with TDS returns and all, it is so complicated.

These days the Income Tax Department has flooded employees with notices who have declared rent paid exceeding INR 6,00,000/- for claiming HRA deduction while filing ITR but failed to deduct the TDS on the same. So, somewhere we furnish this information to the department on our own.

So, if you are one of such person, basic provisions of Section 194-IB (Payment of rent by certain individuals or Hindu undivided family) that you should take care:

Who is liable to deduct TDS: Individual\HUFs (who are having turnover of less than INR 1 Crores from business or INR 50 Lacs from profession in preceding financial year) are liable to deduct TDS under section 194IB.
Nature of Property: TDS is applicable on rent paid for Land or building;
Threshold Limit: TDS is to be deducted for the month in which rent payment exceeds INR 50,000/-;
Due date of TDS Deduction: Such TDS shall deducted while paying rent of last month of the year or last month of the tenancy period;
TAN requirement : Tenant is not required to obtain TAN for such TDS payment.;
TDS Deposit challan cum return: TDS shall be deposited through Challan cum statement in Form 26QC (only PAN of the landlord is required).
Due date of TDS Deposit: TDS shall be deposited within 30 days from the end of the month in which TDS is deducted. E.g., if TDS is deducted in March, 2025 then the same shall be deposited by 30th April, 2025.
TDS Rate: TDS shall be deducted @ 2% (5% till 30.09.2024).

Action to be taken before 31.03.2025_Part 2: Filing of Declaration by Transporter under GST Annexure-V

Posted on: April 2, 2025April 9, 2025 by: adminin: GST, GST FilingLeave a reply

As the Financial year comes to end, there are many compliances which are to be done before 31.03.2025 to avoid any adverse consequences. One of such compliance is the declaration by the Goods Transport Agency in Annexure-V.

The GTA may opt from either of following two options for payment of GST:

Payment of GST under Forward Charge Mechanism, i.e., GST shall be paid by the GTA on its own. The Recipient shall be eligible to claim the ITC on such service subject to Section 16 and 17 of CGST Act.
Payment of GST under Reverse Charge Mechanism, i.e., GST shall be paid by the service recipient under RCM and the recipient shall be entitled to claim the ITC of such GST.

If GTA opt for payment of GST under Forward charge then GST can be charged at either of the following Rates:

5%, No ITC of Inward supplies shall be available to the GTA;
12%, ITC of inward supplies shall be available to the GTA

Option can be opted by filing declaration in Annexure-V post login on GST portal. Such annexure is to be filed before 31st March, 2025 for FY 2025-26.

Action to be taken before 31.03.2025_Part 3: Filing of pending Form GSTR-9C (Reconciliation Statement) upto FY 2022-23

Posted on: April 2, 2025April 2, 2025 by: adminin: GST FilingLeave a reply

Taxpayers with aggregate turnover of more than INR 5 Crores are required to file a reconciliation statement in Form GSTR-9C by 31st December of the following Financial Year. Any delay in filing of GSTR-9C shall attract late fee of INR 200 Per day.

However, GST Department has provided an amnesty scheme for filing of pending GSTR-9C upto FY 2022-23 without payment of Late Fees vide Notification No. 08/2025– Central Tax Dated 23rd January 2025.

As per Clarification issued by CBIC vide Circular No. 246/03/2025-GST, late fee is computed in following manner on late filing of GSTR-9C:

Forms to be filed by the Taxpayer	Period to be considered for computation of Late fee
Taxpayer is only required to file GSTR-9	From the due date of filing of GSTR-9 till the date of filing of GSTR-9.
Taxpayer is required to furnish both GSTR-9 and GSTR-9C	If GSTR-9 and GSTR-9C are furnished on the same date: From the Due date of filing of annual return till the date of filing of GSTR-9.If GSTR-9C is furnished after the date of filing of GSTR-9: From the Due date of filing of annual return till the date of filing of GSTR-9C.

Under the Amnesty Scheme, waiver is granted on late filing of GSTR-9C from date of filing of GSTR-9 till the date of filing of GSTR-9C. However, for this purpose, all GSTR-9C (upto FY 2022-23) is required to be filed by 31st March, 2025.

So, if you are having any pending GSTR-9C, upto FY 2022-23, then this is the best opportunity to file the same without any late fee.

Important Compliance post Company Incorporation| Filing of Form INC-20A

Posted on: April 2, 2025April 9, 2025 by: adminin: GST Filing, INCOME TAXLeave a reply

With effect from 2nd November, 2018, the RoC has notified a major form to be filed post incorporation of the Company. Evert Company with share capital is required to file a declaration with the RoC about intimation of commencement of business within 180 days.

Purpose

INC-20A is a declaration filed by the directors to the RoC that the Company has commenced its business operations and the amount of share capital has been credited to the Company’s Bank Account.

Due date: within 180 days from the date of Incorporation of Company

Consequences of Non-compliances:

Penalty on Company: INR 50,000/- on filing of INC 20A after 180 days;
Penalty on Directors: Penalty of INR 1,000 per day during which default continues subject to maximum of INR 1,00,000.
Company strike off : if the Registrar has reasonable grounds to believe that the company is not carrying on any business or operations even after 180 days of incorporation, the registrar may remove the name of the company from the Register of companies.

Conclusion

Completing the form INC-20A is an essential requirement for legally initiating business operations. Neglecting to submit this form may result in penalties and company strike off.

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