BBUDGETUDGETAANALYSISNALYSIS22020-020-2211
Taxation | Audit | Outsourcing | Regulatory | Transaction Advisory | Business Intelligence Services
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CONTENTS
1. Foreword 3
2. Economic Outlook 5
3. Budget at Glance 12
4. Direct Tax Proposals 14
a. Personal Tax 15
b. Corporate Tax 18
1. Startups 19
2. Tax Audit 20
3.DividendDistributionTax21 4. TDS/TCS 22
5.Taxationofnon-residents 25 6. Penalty 27
7. Vivad se Vishwash Bill, 2020 27
8. Other proposals 29
5.IndirectTax-GoodsandServiceTax,CustomandExcisechanges31
6. Regulatory Changes 44
7. Glossary 46
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FOREWORD
With Budget 2020 bringing in a lot of changes for all strata of business society, the Indian businesses arebusy analyzing the fine print ofthis budget. The government task is tightly cut out with the Indian econ-omy slowing down andpolitical landscapebecoming sticky, the fact that global cues are also not inmuch fa-vor, the budget presented is seemed to be a balance between fiscal responsibility and tax cuts. The budg-et is aimed to please the middle class,economically deprived, startups,corporates and foreign companies.
Indiaisthefifth-largesteconomyoftheworld.India’sforeigndirectinvestmentgotelevatedtothelevelofUS$284billionduring2014-19fromUS$190billionthatcameinduringtheyears2009-14.TheCentralGovernmentdebtthathasbeenthebaneofoureconomygotreduced,inMarch2019,to48.7%ofGDPfromalevelof52.2%inMarch2014.
ThebudgettalksaboutAspirationalIndia,EconomicdevelopmentandCaringSociety.
Budget proposals in aspirational India coverprogrammes and plans related to Agriculture Irrigation and Ruraldevelopment,Wellness,Water and Sanitation and Education and Skills, while economic development propos-als cover Industry,Commerceand Investment, infrastructureandaneweconomy.Caring societyproposals fo-cus on Women &Child, Social Welfare; Culture and Tourism and also on Environment and Climate Change.
In direct tax numerous changes inspired from draft direct tax code have been incorporated such as new in-cometaxslabs,availableonlytothosetaxpayerswhoarewillingtoforegocertainexemptionsanddeductions,change in definition of residential status, removal of DDT, lower TDS on technical services, increase in auditthreshold,making direct tax digital, ESOP tax relaxation, Startup eligibility extension, TCS on eCommerce, etc.
In the past, theGovernment has taken severalmeasures to reduce tax litigations. In the last budget, SabkaV-ishwasSchemewas brought in to reduce litigation in indirect taxes. It resulted in settling over 1,89,000 cases.
Currently,thereare4,83,000directtaxcasespendinginvariousappellateforums,i.e.,Commissioner(Appeals),ITAT,HighCourtandSupremeCourt.Thus,thisyear,theFinanceMinisterhasbroughtinaschemesimilartoindi-recttaxSabkaVishwasforreducinglitigationseveninthedirecttaxes.TheGovt.hasintroducedDirectTaxVivadseVishwasBill,2020intheLokSabhaonFebruary5,2020.Fortaxpayerswhoseappealswerependingbeforetheappellateforums[i.e.,CIT(A),ITAT,HighCourtandSupremeCourt]asonJanuary31st2020,theschemeprovidesforwaiverofinterest,penalty&prosecutionwherethedeclarationprovidedundertheSchemeisfiledbythede-clarantbeforethedesignatedauthority.
CertainchangeshavebeenbroughtinIndirecttax,suchasintheGSTpenaltyforbogusbillshavebeenintroduced,input credit has been linked with a debit note without required linkage with original bill date. Certain central excise andcustomrateshavebeenrationalized.
ExternalCommercialBorrowingsandFDIarebeingproposedtofinancetheeducationsystemsoas tobeabletodeliverhigherqualityeducationwiththemotivetoattracttalentedteachers, innovateandbuildbetterlabs.
TheGovernmenthascomeupwithfewpositivechangesintheareaofregulations,whichincludeamendmentsinstampactandMSME.
Thisfinalbudgetof2020-21hasbeenreleasedwithavisionforinclusivedevelopmentforallandputtingbackIndiaon growth path quickly.
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Please Note:
-Thisbudgethasbeenpreparedasaknowledgedocument,doesnotconstituteanadvertisementofanymannerandisforprivatecirculationonly.
-ContributionofJPChawla&Co.LLP’steammembers:Mr.J.P.Chawla,Mrs.RichaJunejaChawla,Mr.AnkitVyas,Mr.ManeetPuriandMrs.GarishmaAroraforpreparationofthiscomprehensivebudgetdocumentishighlyappreci-ated and acknowledged with thanks.
Hope you enjoy reading our analysis of Budget 2019-20.
Happy reading!!
Rajat ChawlaCEO & Managing PartnerJ P Chawla & Co. LLPE|[email protected]
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ECONOMICECONOMIC
OUTLOOKOUTLOOK
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Overview of the Economy
Global headwinds and challenges in the domestic fi-
nancial sector moderated the growth of the Indian
economyin2019-20.TherealGDPgrowthmoderated
to5.0percentin2019-20ascomparedto6.8percentin
2018-19.DespiteatemporarymoderationintheGross
DomesticProduct(GDP)growthin2019-20,thefunda-
mentalsoftheIndianeconomyremainstrongandGDP
growth is expected to rebound from thefirstquarter
of2020-21.Thefiscalsituationremainedclosetothe
consolidation path and consumer price inflation was
within the targeted limits set by the monetary policy
committeeofReserveBankofIndia(RBI).Despitecon-
tinuingsluggishnessinglobaldemand,theCurrentAc-
countDeficit(CAD)narrowedto1.5percentofGDPin
thefirsthalf(H1)of2019-20from2.1percentin2018-
19.GlobalconfidenceintheIndianeconomyimproved
as reflected in growing inflows of net Foreign Direct
Investment(FDI)andanall-timehighaccumulationof
foreignexchangereservesofUS$457.5billionasinend
December 2019. India moving up by 14 positions to
63rdrankin2019WorldBank’sEaseofDoingBusiness
2020 Report, has among others, contributed to the in-
creaseinglobalconfidenceintheIndianeconomy.In-
dia has emerged as an important player in the world
onthebackofhighGDPgrowthandannouncement/
implementationofcriticalmeasuresinthecurrentyear
andlastfewyears.
The measures announced/implemented in 2019-20
include-hike inminimumsupportpriceofagricultural
cropsfor2019-20;reductionincorporatetaxrate;pol-
icyinitiativesfordevelopmentoftextiles&handicrafts
andelectricvehicles;outreachprogrammeforgrowth,
expansionandfacilitationofmicro,smallandmedium
enterprises; incentives for start-ups in India; schemetoprovideaone-timepartialcreditguaranteetopub-licsectorbanks(PSBs)forpurchaseofpooledassetsoffinanciallysoundnon-bankingfinancialcompanies(NBFCs);recapitalizationofpublicsectorbanks,relax-ationofexternalcommercialborrowingguidelinesforaffordablehousing; realty fundworth `25,000croreforstalledhousingprojects;additionaltaxdeductionofinterestforaffordablehousing;mergerof10pub-licsectorbanksintofourentities;revisedPrioritySec-torLending(PSL)normsforexports;andstreamliningofmanylabourlawsatthecentralgovernmentlevel.Apart from this, various steps were taken to boostmanufacturing; employmentgeneration; financial in-clusion; digital payments; improving ease of doingbusinessviaschemessuchasMake in India,Skill In-dia andDirectBenefitTransfer. Thegovernmenthasalso announced the National Infrastructure Pipeline(NIP)ofprojectsworth102lakhcrore,whichwillcom-menceinphasesfrom2020-21to2024-25.
Economic growth
Asperthefirstadvanceestimatesofannualnationalincome,therealGDPgrowthisestimatedat5.0per-centin2019-20,ascomparedtotheprovisionalesti-matesof6.8percentin2018-19.Correspondingly,therealgrowthofgrossvalueadded(GVA)isestimatedat4.9percentin2019-20ascomparedto6.6percentin2018-19.Thismoderation inGVAgrowth in2019-20(AE)ascomparedto2018-19isattributedtoallsectorsonthesupplysidesavepublicadministration,defenceandotherservices.Fromthedemandsideprivatefinalconsumption expenditure, public final consumptionexpenditure and net exports have driven the growth GDPin2019-20ascomparedto2018-19.Grossfixed
capitalformation,ontheotherhand,hasslowedthe
growthofGDP.
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ECONOMIC OUTLOOK
Prices
ConsumerPriceIndex(Combined)(CPI-C)inflationfor
2018-19 declined to 3.4 percent from 3.6 percentin
2017-18and4.5percent in2016-17. Itaveraged4.1
percentin2019-20(ApriltoDecember)andstoodat
7.3percent inDecember2019.Food inflationbased
ontheConsumerFoodPriceIndex(CFPI)for2018-19
declinedto0.1percent from1.8percent in2017-18
and4.2percent in2016-17. It averaged5.3percent
in2019-20(ApriltoDecember)andstoodat14.1per-
cent in December 2019.
InflationmeasuredintermsofWholesalePriceIndex
(WPI)stoodat4.3percentin2018-19ascomparedto
3.0percentin2017-18and1.7percentin2016-17.It
averaged1.5percentin2019-20(ApriltoDecember)
and stood at 2.6 percent in December 2019.
Government has taken variousmeasures from time
to time to stabilize prices of essential food items
through,inter-alia,tradeandfiscalpolicyinstruments
like import duty, minium export price, export restric-
tions,theimpositionofstocklimitsbesidesadvising
States for effective action against hoarders & black
marketerstoregulatedomesticavailabilityandmod-
erateprices.For increasingproductivityandproduc-
tion in key segments of agriculture towardsmoder-
ating prices, the government has been incentivizing
farmersbyannouncingminimumsupportpricesand
implementingschemessuchasMissionforIntegrated
Development of Horticulture (MIDH) and National
MissiononOilseeds andOil Palm (NMOOP), among
others.ThegovernmentisalsoimplementingthePrice
StabilizationFund(PSF)tohelpmoderatethevolatility
inpricesofagri-horticulturalcommoditieslikepulses,
onion, and potato.
Central Government Finances
Thefiscaldeficitandrevenuedeficitfor2019-20were
budgeted at 3.3 percent of GDP and 2.3 percent of
GDP respectively. The BE 2019-20 envisaged a tax
to GDP ratio of 11.7 percent and total expenditure
toGDP ratioof 13.2percent. Theenvisagedgrowth
for gross tax revenuewas9.5percentover2018-19
Revised Estimates (RE). The total expenditure in BE
2019-20was estimated to increase by 13.4 percent
over2018-19RE.
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As per the data on Union Government Finances re-
leasedbyControllerGeneralofAccountsforApril-No-
vember 2019, the gross tax revenue increased by 0.8
percentoverthecorrespondingperiodoftheprevious
year achieving 47.7 percent of the budget estimate.
The non-tax revenue increased by 67.8 percent dur-
ing (April- November 2019) over the corresponding
periodof thepreviousyearachieving74.3percentof
thebudgetestimate.AttheendofNovember2019,the
non-debtcapitalreceiptsstoodat24.2percentofthe
budgetestimate.
Major subsidies (food, nutrient based fertilizers, urea
andpetroleum)increasedby7.3percentduringApril-
November2019,ascomparedtoApril-November2018.
Ureasubsidyincreasedby52.7percentandpetroleum
subsidyincreasedby27.7percentduringApril-Novem-
ber 2019, as compared to the corresponding period in
2018-19.
DuringApril-November2019,fiscaldeficitreached114.8
percent of the budgeted amount in 2019-20. During
the corresponding period of the previous year, the
sameratiohadprevailedinrelationto2018-19budg-
etedamount.Therevenuedeficit forApril-November
2019is128.4percentofBEandislowerthanthecor-
respondingfigureof132.6percentinthepreviousyear.
TheRevisedEstimatesplacefiscalandrevenuedeficits
at3.8percentofGDPand2.4percentofGDPrespec-
tivelyin2019-20.
Monetary Management and Financial Intermediation
Monetary policy remained accommodative during
2019-20. Fivemeetings of theMonetary Policy Com-
mittee(MPC)havebeenheldsofarinthefinancialyear
2019-20.Inthefirstfourmeetings,theMPCdecidedto
cut the policy repo rate. The repo rate was reduced by
110basispoints(bps)from6.25percentinApril2019
to5.15percentinOctober2019.Initsfifthbi-month-
ly monetary policy statement in December 2019, the
MPCdecidedtokeepthereporateunchangedat5.15
percent.
ThegrowthofreservemoneyasonDecember27,2019
was 10.2 percent over 17.0 percent on December 27,
2018. The expansion in reserve money was led by Cur-
rency in Circulation (CIC). Broadmoney (M3) growth
has been on a declining trend since 2009. However,
since 2018-19 growth ofM3 has picked up and was
marginally, mainly driven by the growth in aggregate
deposits.ThegrowthofM3was10.4percentasonDe-
cember 20, 2019 over 10.2 on December 20, 2018. The
expansion inM3sofarduringtheyear isattributable
toaggregatedeposits,whichrecordedagrowthof10.1
percent as on December 20, 2019 over 9.2 percent on
December 20, 2018.
External Sector
Merchandiseexports (customsbasis)during2019-20
(April-December), were US$ 239.3 billion, which de-
clinedby2.0percentoverthelevelofUS$244.1billion
inthecorrespondingperiodofthepreviousyear.During
2019-20(April-December),merchandiseimportswere
US$357.4billion, registeringadeclineof8.9percent
overthelevelofUS$392.3billioninthecorresponding
periodofthepreviousyear.Oilimportsdeclinedfrom
US$108.5billionin2018-19(April-December)toUS$
95.7billionin2019-20(April-December).Merchandise
tradedeficitimprovedfromUS$148.2billionin2018-
19 (April-December) to US$118.1 billion in 2019-20
(April-December).
Followingariseinvulnerabilitiesin2018-19,India’sex-
ternalsectorhasregainedsomestabilityinthefirsthalf
of2019-20,withimprovementinBalanceofPayments
(BoP) position anchored in narrowing of current ac-
countdeficitfrom2.1in2018-19to1.5inH1of2019-
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20,growinginflowsofforeigndirectinvestment(FDI),
reboundingofportfolioflowsfromnetoutflowtonet
inflowandreceiptofrobustremittances,allshowingup
inhigheraccretionofforeignexchangereserves,which
asonendDecember2019stoodatUS$457.5billion.
NetFDIinflowshavecontinuedtobebuoyantin2019-
20 (April-November) attracting US$ 24.4 billion as
againstUS$21.2billion,whichisareflectionofaglobal
sentiment that increasingly believes in India’s growth
story and reformmeasures being undertaken by the
government.
Theaveragemonthlyexchangerateofrupee(RBI’sref-
erence rate)was Rs. 70.41 perUS dollar in 2019- 20
(April-December),ascomparedtoRs.69.92perUSdol-
larduring2018-19.ExternaldebtasattheendofSep-
tember2019remainslowat20.1percentofGDP.After
witnessing a significant decline since 2014-15, India’s
external liabilities (debt and equity) to GDP have in-
creasedattheendofJune2019primarilydrivenbyan
increaseinFDI,portfolioflowsandexternalcommercial
borrowings(ECBs).
Banking and Non-Banking Sector
During2019-20,grossnon-performingadvances(GNPA)
ratioofScheduledCommercialBanks(SCBs)remained
unchanged at 9.3 percent in September 2019 as com-
paredtoMarch2019.Similarly,therestructuredstand-
ardadvances(RSA)ratioofSCBsremainedunchanged
at 0.4 percent during the same period. The stressed ad-
vances(SA)ratioofSCBsfollowedsuitbyremainingflat
at9.7percent.GNPAratioofpublicsectorbanks(PSBs)
was alsounchanged at 12.3 percent in September 2019
whilestressedadvanceratiosincreasedfrom12.7per-
centinMarchto12.9percentinSeptember2019.
Thegrowthofnon-foodcreditwas7.2percentonNo-vember22,2019ascomparedto13.8percentonNo-vember23,2018.Themoderationincreditgrowthwaswitnessedacross all themajor segmentsofnon-foodcredit except personal loans, which grew at 16.4 per-cent as on November 22, 2019 as compared to 17.2percentasonNovember23,2018.
IncaseofNon-BankingFinancialSectoraftergrowingrapidly in 2017-18 and the first half of 2018-19, theNBFC sector has decelerated sharply since then. ThegrowthofloansfromNBFCsdeclinedto3.4percentatendSeptember2019 from14.6percent inDecember2018 and 31.9 percent in September 2018. The balance sheetof theNBFCsectorgrewby17.9percent from`26,17,790croreto`30,85,480croreduring2018-19.There isanobservableshift inthesourcesof fundingofNBFCs.Borrowingsfrombanksincreasedfrom`5.62lakh crore in October 2018 to 7.13 lakh crore in Octo-ber2019registeringagrowthof26.8percent.Howev-er,deploymentofcreditbyMutualfundstoNBFCshasbeencontractingsinceOctober2018.
Agriculture In2018-19,asperfourthadvanceestimates,foodgrainproductioninthecountrywasestimatedat285milliontonnes, the sameas in2017-18.However, foodgrainproductionwas19.2milliontonneshigherthantheav-erageproductionof thepreviousfiveyears.Ricepro-ductionduring2018-19wasestimatedat116.4milliontonnesascompared to112.8million tonnes in2017-18.Wheat production during 2018-19was estimatedat 102.2 million tonnes as compared to 99.9 million tonnesduring2017-18.ThegovernmenthasincreasedMinimumSupportPrices(MSP)forallmandatedkharif,rabi andother commercial crops.TheenhancedMSPensures a returnof 1.5timesover all Indiaweighted averagecostofproductionfortheseason2019-20.
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Indiacontinuestobethelargestproducerofmilkinthe
world. Themilk production in the countrywas 187.7
milliontonnesin2018-19growing6.5percentoverthe
previousyear.Theeggproduction inthecountryalso
increasedfrom95217millionin2017-18to103318mil-
lionin2018-19.FishproductioninIndiahasregistered
anaverageannualgrowthrateofmorethan7percent
in recent years. Total fish production in the country
stoodat13.4millionmetrictonnesduring2018-19.Of
this,themarinefisheriescontributed3.7millionmet-
ric tonnes and the inland fisheries 9.7millionmetric
tonnes.Underagriculturecredit,asumof`9,07,843.4
crore has been disbursed in 2019-20 as on 30thNo-
vember 2019.
Theagriculturecreditflowtargetfor2018-19wasfixed
at`11,00,000croreandagainstthistarget,asreported
byNABARD,thedisbursementbybankstillSeptember
2018is`6,45,205crore.
Industry
The Index of Industrial Production (IIP) grew at 0.6
percent during April-November 2019 as compared
to3.8percent in2018-19.Mining,manufacturingand
electricitysectorsinIIPgrewat(-)0.1percent,0.9per-
centand0.8percentrespectivelyduringApril-Novem-
ber2019.Thefullyeargrowthinthesethreesectorsin
2018-19was2.9percent,3.9percentand5.2percent
respectively. Under the use-based categories growth
inApril-Novemberof2019-20stoodforprimarygoods
at0.1percent,capitalgoodsat (-)11.6percent, inter-
mediategoodsat12.2percentandinfrastructure/con-
structiongoods at (-) 2.7percent. The corresponding
full year growth of these categories in 2018-19was
3.5 percent, 2.7 percent,0.9 percent and 7.3 percent
respectively.
Theeightcoreinfrastructuresupportiveindustries,viz.
coal,crudeoil,naturalgas,refineryproducts,fertilizers,
steel,cementandelectricitythathaveatotalweightof
nearly40percentintheIndexofIndustrialProduction
(IIP)remainedstagnantduringApril-November2019as
comparedtoagrowthof4.4percent in2018-19.The
productionoffertilizers,steel,andelectricityincreased
by 4.0 percent, 5.2 percent, 0.7 percent respectively
during April-November 2019while the production of
coal, crudeoil, natural gas, refineryproducts and ce-
ment contracted by 5.3 percent, 5.9 percent, 3.1 per-
cent,1.1percentand0.02percentrespectivelyduring
the same period.
Capital Market
The primary market resource mobilization through
85public and rights issueswas ` 73,896 croreduring
2019-20(uptoDecember31,2019)asagainst124is-
sueswhichhadraised`44,355croresduring2018-19
(uptoDecember31,2018).Fundsraisedthroughthe
privateplacementof1,520issuesamountedto`6.29
lakhcrores in2019-20 (up toDecember31,2019)as
compared to `5.3 lakh crores through2006 issues in
the2018-19.
India’s benchmark indices, namely, Nifty 50 and S&P
BSESensexindex,havecontinuedtogrowduring2019-
20.TheS&PBSESensex,thebenchmarkindexofBom-
bay Stock Exchange (BSE), reached an all-time high
closingof41,681onDecember20,2019,witnessingan
increaseof7.2percentfromthelevelof38,871onApril
1,2019.Nifty50indexgained5.3percentoverApril1,
2019tocloseat12,226onJanuary3,2020.Theaverage
annualgrowthofBSEandNifty50in2019-20(April-De-
cember)was8.9percentand5.7percentrespectively.
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Thepositiveprospectsfortheeconomyarethecontin-
uationofstructuralreformsthatwillrevivegrowthand
expected normalization of credit flow as investment
picks up induced by a cut in the corporate tax rate and
anticipated transmission of repo rate cuts earlier im-
plementedbytheMonetaryPolicyCommittee.Global
economic growth is expected to pick up in 2020 which
couldalsosupportIndia’sgrowth.Inviewofapositive
outlook on the economic rebound, the nominal growth
oftheeconomyisexpectedtobe10percentinthefi-
nancialyear2020-21.
Prospects
Thegrowthoftheeconomyappearstohavebottomed
outandisexpectedtopickupin2020-21.Theprospects
for the Indianeconomyfor theyear2020-21needto
beassessedinthelightofemergingglobalanddomes-
ticchallengesandopportunities.Majorchallengesfor
theeconomyarising fromtheexternal frontaregeo-
politicaltensionsintheMiddleEastandrisingcrudeoil
pricesduetosupplydisruptionwhichmaydecelerate
thegrowthandincreaseinflation.
Challenges inthedomesticfrontaretherevivalof in-
vestments and savings.
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Overview TheBudget2020-21hascomeatatimewhereglobalandIndianbusinesssentimentsareslowingdownandtheeconomyrequiresamajor impetus fromthegov-ernmenttosustaina5PlusGDPGrowth.AfterChina’sworld looks towards India as a sustainable growth en-gineandIndiaitselfhassetitseyestowardsafivetrillioneconomy.Toachievesuchambitiousgoals,thisbudgettriestofocusonareasthatcanleadthiscountrytobeaworldleader.Thebudgetreceiptsarelargelyfocusedtowards growth in direct and indirect tax revenue with disinvestmentreceipt(beingpartofNon-debtreceipts)beingthemainsourceforthisyearandexpenditureisfocusingonAgriculture, Social Sector,Defense, subsi-
dies,Interest,EducationandHealth.
Thisissubstantiatedbytheincreaseinexpenditureof`INR343,679croresoverRE(2019-20)whilekeepingthefiscaldeficitat3.5%ofGDP.
InBE2020-21,thetotalexpenditurehasbeenkeptatINR3,042,230croreand ismore thanRE2019-20byINR343,679crore.The increase in totalexpenditureisonaccountofincreasedsupporttotheagriculturalsector,interestpayments,Defenseetc.
ThetotalshareofresourcesgoingtoStatesforState’s
shareintaxesinBE(2020-21)isINR787,111crore.
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BUDGET AT A GLANCE
Amount in INR Crores (10 Milion)Particulars 2018-2019
Actuals2019-2020
Budget Estimates
2019-2020 Revised
Estimates
2020-2021Budget
Estimates1. Revenue Receipts 1,552,916 1,962,761 1,850,100 2,020,926
2. Tax Revenue (Net to Centre) 1,317,211 1,649,582 1,504,587 1,635,909
3. Non Tax Revenue 235,705 313,179 345,513 385,017
4. Capital Receipts 762,197 823,588 848,450 1,021,304
5. Recovery of Loans 18,052 14,828 16,604 14,967
6. Other Receipts 94,727 105,000 65,000 210,000
7. Borrowings and Other Liabilities 649,418 703,760 766,846 796,337
8. Total Receipts (1+4) 2,315,113 2,786,349 2,698,551 3,042,230
9. Total Expenditure (10+13) 2,315,113 2,786,349 2,698,551 3,042,230
10. On Revenue Account of which 2,007,399 2,447,780 2,349,645 2,630,145
11. Interest Payments 582,648 660,471 625,105 708,203
12. Grants in Aid for creation of Capital assests
191,781 207,333 191,737 206,500
13. On Capital Account 307,714 338,569 48,907 412,085
14. Revenue Deficit (10-1) 454,483 485,019 499,545 609,219
15. Effective Revenue Deficit (14-12) 262,702 277,686 307,808 402,719
16. Fiscal Deficit [9-(1+5+6)] 649,418 703,760 766,848 796,337
17. Primary Deficit (16-11) 66,770 43,289 141,743 88,134
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DIRECT TAXDIRECT TAX
PROPOSALSPROPOSALS
Direct Tax Indirecttaxnumerouschangesinspiredfromdirecttax
code have been incorporated such as new income tax
slabs,available only to those taxpayers who are willing
toforegocertainexemptionsanddeductions,changein
thedefinitionofresidentialstatus,removalofDDTand
many more such amendments. Changes introduced in
theFinanceBill2020-21arehighlightedasunder:-
Personal Tax TheUnionBudget2020-21hasintroducednewincome
taxslabswithlowertaxrates.However,thebenefitof
suchreducedincome-taxslabswouldbeavailableonly
tothosetaxpayerswhoarewillingtoforgocertainde-
ductions and exemptions. New income-tax slabs are
optionalandnowtaxpayershavetheoptiontochoose
betweentheoldtaxationregimeandthenewtaxation
regime. The old tax slabs and structure would remain
unchanged.
Tax rates for AY 2021-22 (Old taxation regime -
Option 1)
Rates of tax for individuals, Hindu Undivided Family,
or every association of persons or body of individuals,
whether incorporated or not or every artificial juridi-
cal person.
Amount of Net Income Tax Rates (AY 2020-21)
UptoRs2,50,000 Nil
Rs2,50,001-5,00,000 5%
Rs 5,00,001 – Rs 10,00,000 20%
Above Rs 10,00,000 30%
Tax rates in the case of every individual, being a resi-dent in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year.
Amount of Net Income Tax Rates (AY 2020-21)
Upto3,00,000 Nil
3,00,010-5,00,000 5%
Rs 5,00,010 – Rs 10,00,000 20%
Above Rs 10,00,000 30%
Tax rates in the case of every individual, being a resi-dent in India, who is of the age of 80 years or more at any time during the previous year.
Amount of Net Income Tax Rates (AY 2020-21)
Upto5,00,000 Nil
Rs 5,00,010 – Rs 10,00,000 20%
Above Rs 10,00,000 30%
Surcharge/effective tax rate on Super Rich (other than capital gains on listed shares)
Amount of Net Income
Existing Surcharge
Proposed *Surcharge (AY 2020-21)
Proposed Surcharge (AY 2020-21)
50,00,001 – 1,00,00,000
10% 10% 34.32%
1,00,00,010– 2,00,00,000
15% 15% 35.88%
2,00,00,001 – 5,00,00,000
15% 25% 39%
Above 5,00,00,000
15% 37% 42.74%
*Subject to Marginal Relief
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DIRECT TAX PROPOSALS
Surcharge/effective tax rate on short-term and long-
term capital gains on listed shares covered u/s 111A
and 112A, respectively.
Amount of Net Income
Existing Surcharge
Proposed *Surcharge (AY 2021-22)
50,00,010 – 1,00,00,000
10% 10%
Above Rs 1,00,00,000 – 2,00,00,000
15% 15%
*Subject to Marginal Relief
Health & Education Cess:
Health andEducationCess at the rateof 4% shall be
levied on tax and applicable surcharge.
Tax rates for AY 2021-22-(New Regime -Option- 2)
Rates for individuals(including senior citizen and su-
per senior citizen), HUF, or every AOP or BOI, whether
incorporated or not, or every artificial juridical person
Amount of Net Income Tax Rates (A.Y.
2021-22)
UptoRs2,50,000 Nil
Rs 2,50,001 to Rs 5,00,000 5%
Rs 5,00,001 to Rs 7,50,000 10%
Rs 7,50,001 to Rs 10,00,000 15%
Rs 10,00,001 to Rs12,50,000 20%
Rs 12,50,001 to Rs 15,00,000 25%
Above Rs 15,00,000 30%
• Theaforesaidnewoptionshallbeexercisedforeve-ry previous yearwhere the individual or theHUFhas no business income.
• Whereany IndividualorHUFhasanybusiness in-comethisoptiononceexercisedforapreviousyearshallbevalidforthatpreviousyearandallsubse-quent years.
• However, such an optionwould be available onlywhen IndividualorHUFsatisfy certain conditions.Inotherwords,IndividualorHUFshallcomputeto-talincome:-
a. Withoutfollowingexemptions/deductions• Leavetravelconcession;• Houserentallowance;• Standarddeduction(i.e.Rs50,000)• DeductionofEntertainmentallowanceorpro- fessionaltax.• Interestonhousingloanu/s24(b);• Additionaldeprecation;• Deductionsundersection32AD,33AB,33ABA• Any deduction under chapter VI-A (viz, section
80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB,80-IAC,80-IB,80-IBA,etc). [Deductionu/s80CCD(2)canbeclaimed]
• Withoutset-offofunabsorbedbusinesslossorde-preciationifsuchlossordepreciationisattributabletoanyoftheaforesaiddeductions/exemptions.
• Without set-off of house property loss with anyotherheadofincome.
• by claiming the depreciation, if any, except addi-tional depreciation determined in suchmanner asmaybeprescribed;
• withoutanyexemptionordeductionforallowancesor perquisite, by whatever name called,provided
underanyotherlawforthetimebeinginforce.
www.jpc.co.in 16
• SuchoptionshallbecomeinvalidiftheIndividualor
HUFfailstosatisfyaforesaidconditionsinanyPY.In
sucha case,option/ tax slabsavailableunder the
old regime would be applicable.
• Where option II [taxation under new regime] is
chosenbytheIndividualorHUFhavingbusinessin-
come,suchoptioncanbewithdrawnonlyoncein
subsequentyearsandthereafter,the individualor
HUFshallneverbeeligibletoexerciseoptionunder
this section, exceptwhere such individual orHUF
ceases to have any business income.
Rationalization of the tax treatment of employer’s
contribution to recognized PF, superannuation funds
and NPS [Section 17] [Applicable from AY 2021-22]
UndertheexistingprovisionsoftheIncomeTaxAct,thecontributionbytheemployertotheaccountofanem-ployeeinanRPFexceeding12%ofsalaryistaxable.Further,theamountofanycontributiontoanapprovedsuperannuationfundbytheemployerexceedingRs1.5lakhs is treatedasperquisite in thehandsof theem-ployee. Similarly, the assessee is allowed a deduction underNPS for14%of the salary contributedby theCentralGovernmentand10%ofthesalarycontributedbyanyother employer.
However,thereisnocombinedupperlimitforthepur-poseofdeductionontheamountofcontributionmadeby the employer.This is giving undue benefits to em-ployees earning a high salary income.
Thus,thisportionofsalarydoesnotsuffertaxationatanypointoftime,sinceExempt-Exempt-Exempt(EEE)regimeisfollowedforthesethreefunds.Thus,nothav-ing a combined upper cap is iniquitous and hence, not
desirable.
Therefore,itisproposedtoprovideacombinedupper
limitofRs7.5lakhsinrespectofemployer’scontribu-
tioninayearto:-
• NPS,
• Superannuationfundand
• Recognisedprovidentfundand
anyexcesscontributionisproposedtobetaxable.
Consequently, it is also proposed that any annual accre-
tion(onamountinexcessofINR7,50,000)bywayofin-
terest,dividendoranyotheramountofsimilarnature
duringthepreviousyeartothebalanceatthecreditof
thefundorschememaybetreatedasperquisitetothe
extentitrelatestotheemployer’scontributionwhichis
included in total income.
Extending the time limit for sanctioning of loan for af-
fordable housing [Section 80EEA][Applicable from AY
2021-22]
• Theexistingprovisionsofsection80EEAprovidefor
adeductionofinterestonhousingloanuptoRs1.5
lakhs.Suchdeductionisoverandabovethededuc-
tionallowedu/s24.
• The said deduction is aimed to incentivise first
timebuyerstoinvestinresidentialhouseproperty
whose stamp duty does not exceed Rs 45 lakhs.
• It allows deduction subject to certain conditions.
Oneoftheconditionsisthatloanshouldbesanc-
tionedbythefinancialinstitutionduringtheperiod
from1stApril,2019to31stMarch,2020.
• Inordertocontinuepromotingpurchaseofafford-
ablehousing,theperiodofsanctioningof loanby
thefinancialinstitutionisproposedtobeextended
to31stMarch,2021.
www.jpc.co.in 17
Tax Rates (New Regime)
Particulars Rates of tax F.Y. 2019-20 (AY 2020-21)
DomesticCompanycoveredu/s115BAA(OtherthanManufacturing)
22%(plus10%sur-charge and 4%cess)
Newmanufacturingcompanies*covered u/s 115BAB
15%(plus10%sur-charge and 4%cess)
*Incaseofnewmanufacturingcompaniesu/s115BAB,thetaxratewouldbedifferentforfollowingtypeofin-comes:-
• Short-termcapitalgains incaseofthenon-depre-ciable asset would be taxable @ 22% instead of15%.
• Any incomeneitherderived fromnorincidental tomanufacturing/productionofanarticleorathingwouldbetaxable@22%insteadof15%.
The Taxation Laws Amendment Act, inserted section115BAAandsection115BABintheActtoprovidedo-mesticcompaniesanoptiontobetaxedatconcessionaltax rates provided they do not avail specified deduc-tionsandincentives.Someofthedeductionsprohibit-edaredeductionsunderanyprovisionsofChapterVI-Aundertheheading“C.Deductioninrespectofcertainincomes” other than theprovisions of section 80JJAA(NewEmployees).
Itisnowproposedtoamendtheprovisionsofsection115BAAandsection115BABtonotallowdeductionun-der anyprovisions of ChapterVI-A other than section80JJAAorsection80M,incaseofdomesticcompaniesoptingfortaxationunderthesesections.
Further, provisions of the Taxation Laws AmendmentAct, provides that following, businesses shall not beconsideredasmanufacturingorproductionofarticleor
www.jpc.co.in 18
Corporate Tax Changes
Tax Rates (old regime)
All companies having annual turnover upto Rs 400
crore in the previous year 2018-19 is in the tax bracket
of 25%.
Companies
Particulars Rates of tax F.Y 2020-21 (AY 2021-22)
DomesticCompanywhosetotalturn-overorgrossreceiptsforPY2018-19doesnotexceedINR400Crores(INR4,000Million)
25%
DomesticCompanywhosetotalturnoverorgrossreceiptsforPY2018-19exceedsINR400Crores(INR4,000Million)
30%
IncaseofforeignCompany 40%
Sucharge
In the case of a domestic company:• 7% surcharge if the income is more than 1 crore
(INR 10 Million) but less than 10 crores (INR 100 Million)
• 12% surcharge if the income is more than 10 Crores (INR 100 Million)
In the case of a foreign company:
• 2% surcharge if the income is more than 1 crore (INR 10 Million) but less than 10 crores (INR 100 Million)
• 5% surcharge if the income is more than 10 crore. (INR 100 Million)
Note:
Health and Education Cess of 4% shall be levied over
and above taxes.
thinginordertoavailconcessionaltaxrateof15%-• Developmentofcomputersoftware,• Mining,• Conversion ofmarble blocks or similar items into
slabs, • Bottlingofgasintocylinder,• Printing of books or production of a cin-
ematograph film or any other business asmay be notified by the Central Government.
Ithasbeenproposedthatthemanufacturingorproduc-tionofanarticleorthingshallincludethegenerationofelectricity. Thus, now companies engaged in electricity generationscanalsoavailconcessionaltaxrateof15%subjecttosatisfactionofcertainconditions.
Firms & LLP’sNo changeswere proposed in the tax rates for firmsand LLPs.
FlatRateoftax@30%shallbeapplicableonthefirm.Surcharge@12%of incometaxshallbe levied ifnetincomeexceedsINR1Crore.(INR10Million).HealthandEducationCessshallbe levied@4%overand above taxes including surcharge.
Cooperative SocietiesNochangeswereproposedinthetaxratesforco-oper-ativesociety.
Particulars Rates of tax F.Y. 2019-20 (AY 2020-21)
Havingatotalincomeoflessthan10,001
10%
Havingatotalincomeofmorethan10,000 but less than 20,001
1,000 plus 20%oftotalincome in excessof10,000
Havingatotalincomeofmorethan20,000 to 1 crore
3,000 plus 30%oftotalincome in excessof20,000
Note:Surcharge@12%ofincometaxifnetincomeexceedsINR1Crore(INR10Million)andHealthandEducationCessof4%shall be leviedoverandabove theabovetaxes.
However,fromtheassessmentyear2021-22,residentco-operativesocietieshaveanoption toopt for taxa-tion@22%undernewlyproposedsection115BADofthe Act. Such new provision has been proposed on the linesofsection115BAA.
Start-ups
Rationalisation of provisions for start-ups [Section 80-IAC] [Applicable from AY 2021-22]
The existing provisions of section 80-IAC provide foradeductionof100%of theprofitsandgainsderivedfromaneligiblebusinessby aneligible start-up for 3consecutiveassessmentyearsoutof7sevenyears,attheoptionoftheassesses,subjecttotheconditionthattheeligiblestart-upisincorporatedonorafter1stApril,2016butbefore1stApril,2021andthetotalturnoverofitsbusinessdoesnotexceedRs25crores.
Inordertofurtherrationalisetheprovisionsrelatingtostart-ups, ithasbeenproposedtoamendsection80-IACoftheActsoastoprovidethat-
• thedeductionunder the said section80-IAC shallbeavailabletoaneligiblestart-upforaperiodof3consecutiveassessmentyearsoutof10yearsbe-ginningfromtheyearinwhichitisincorporated.
• thedeductionunderthesaidsectionshallbeavail-
abletoaneligiblestart-up,ifitstotalturnoverdoes
notexceedRs100croreinanyofthepreviousyears
beginningfromtheyearinwhichitisincorporated.
www.jpc.co.in 19
ESOPs [Section 192] [Applicable from April 1, 2020]
Currently,ESOPsaretaxedasperquisitesundersection
17(2)oftheActreadwithRule3(8)(iii)oftheRules.The
taxationofESOPsissplitintotwocomponents:
• Taxonperquisiteasincomefromsalaryatthetime
ofexerciseofESOP.
• Taxonincomefromcapitalgainatthetimeofsale
ofshares.
Thetaxonperquisiteisrequiredtobepaidatthetime
of exercising of option which may lead to cash flow
problemsasthisbenefitofESOPisinkind.
Inordertoeasetheburdenofpaymentoftaxesbythe
employeesoftheeligiblestart-upsorTDSbythestart-
upemployer,itisproposedtoamendsection192ofthe
Act,aperson,beinganeligiblestart-upresponsiblefor
paying any income to the assessee being ESOP perqui-
site shall deduct or pay, as the case may be, tax on such
incomewithinfourteendays:-
• aftertheexpiryof48monthsfromtheendofthe
relevantassessmentyear;or
• fromthedateofthesaleofsuchspecifiedsecurity
orsweatequitysharebytheassessee;or
• fromthedateofwhichtheassesseeceasestobe
theemployeeoftheperson;
whicheveristheearliest,onthebasisofratesinforce
ofthefinancialyearinwhichthesaidspecifiedsecurity
orsweatequityshareisallottedortransferred.
Similaramendmentshavebeencarriedout insection
191(forassesseetopaythetaxdirectincaseofnoTDS)
andinsection156(fornoticeofdemand)andinsection
140A(forcalculatingself-assessment).
Tax Audit
Increased threshold limit for applicability of audit [Section 44AB] [Applicable from AY 2020-21]
Inorder to reducethecomplianceburdenonSME, ithasbeenproposedtoincreasethethresholdlimitforapersoncarryingonbusinessfromonecrorerupeestofivecrorerupeesincaseswhere,-• aggregateofallcashreceiptsdoesnotexceed5%of
totalreceipts;and• aggregateofallcashpaymentsdoesnotexceed5%
oftotalpayments.
However, it may be noted here that no changes were proposed in the tax audit limit for professionals and it remained unchanged at Rs 50 lakhs.
Due date of filing of ITR and Tax Audit [Section 139] [Applicable from AY 2020-21]
Toenablepre-fillingofITRincaseofpersonshavingin-comefrombusinessorprofession,itisrequiredthatthetaxauditreportmaybefurnishedat leastonemonthpriortotheduedateoffilingofITR.
Thus,inorder toenablefilingof taxauditonemonthbefore thedueoffilingof ITR,all thesectionsof theAct which mandates the filing of audit report alongwiththereturnofincomeorbytheduedateoffilingofreturnof incomehavebeenproposedtobeamendedaccordingly.Thus,theduedateoffilingofTaxAudit inForm3CA-3CDandForm3CA-3CBwouldbe30thSeptemberofAssessment Year. Accordingly, the due date of filingoftransferpricingcertificateinForm3CEBandfor3CA/3CDfortransferpricingcaseswouldbe31stOctoberof
Assessment year.
www.jpc.co.in 20
Accordingly,theduedateforfilingreturnofincomehas
alsobeenproposedtobeamendedasunder:-
• DuedateoffilingofITRsbycompaniesandentities
liabletotaxauditwouldbe31stOctoberoftheas-
sessmentyearasagainst30thSeptember;
• Now the due date of filing of ITR would be 31st
OctoberofAYasagainst30thSeptemberforboth
workingandanon-workingpartnerofafirmthatis
liable to tax audit.
• Due date of filing of ITR by companies liable for
transferpricingaudit in Form3CEBwould remain
unchanged [i.e., 30th November of Assessment
Year].
Dividend Distribution Tax
Abolition of dividend distribution tax [Section 115-O]
[Applicable from AY 2021-22]
As per the existing provisions of Section 115-O, any
domesticcompanydistributeddividend isrequiredto
charge dividend distribution tax of 20.56%.However,
suchdividend isexempt inthehandsofshareholders
u/s10(35).
Similarly,undersection115R,specifiedcompaniesand
MutualFundsareliabletopayadditionalincome-taxat
thespecifiedrateonanyamountofincomedistributed
by them to its unit holders. Such income is then exempt
inthehandsofunitholdersunderclause(35)ofsection
10.
The incidenceof tax is, thus,on thepayer company/MutualFundandnotontherecipient,whereitshouldnormally be. The present system of taxation of divi-dendinthehandsofcompany/mutualfundswasrein-troducedbytheFinanceAct,2003(witheffectfromtheassessmentyear2004-05)sinceitwaseasiertocollecttax at asingle point and the new system was leading to increase in compliance burden. However, with the ad-ventoftechnologyandeasytrackingsystemavailable,thejustificationforcurrentsystemoftaxationofdivi-dendhasoutliveditself.
In viewof above, it is proposed to carry out amend-mentsso thatdividendor incomefromunitsare tax-ableinthehandsofshareholdersorunitholdersattheapplicablerateandthedomesticcompanyorspecifiedcompanyormutual fundsarenotrequiredtopayanyDDT.Itisalsoproposedtoprovidethatthedeductionforexpenseundersection57oftheActshallbemaximum20percentofthedividendor incomefromunits.
Nowdividendwouldbetaxableinthehandsofshare-holders, we need to consider its tax impact on various typeofshareholdersasunder:-
Type of shareholder Tax Rate
Resident Individual Slab rate
Resident corporate 22%/25%/30%
Non-residentshareholder 20%[subjecttotreatybenefit]
www.jpc.co.in 21
TDS on dividend distribution [Section 194, 196A,196C,
196D, etc ] [Applicable from April 1, 2020]
Therateofwithholdingtaxwouldbe10%forresident
shareholdersand20%fornon-residentshareholders.
Removal of cascading effect on inter-corporate divi-
dends [Section 80M] [Applicable from AY 2021-22]
A new section has been proposed to be inserted,
whereindividendreceivedbyanIndiancompanyfrom
an Indian company shall not be taxable to the extent it
is distributed by such company.
Itallowstheremovalofthecascadingeffect inmulti-
tiercorporate structures, irrespectiveof shareholding
in the Indian company.
Undertheexistingprovisions,movingfundsbywayof
dividendattractedDividendDistributionTaxandcredit
wasavailableonlyinholding-subsidiarysituations.
TDS/TCS
TDS on E-commerce transactions [Section 194-O] [Ap-
plicable from April 1, 2020]
In order to widen and deepen the tax net by bringing
participants of e-commerce within tax net, it is pro-
posedtoinsertanewsection194-OintheActsoasto
provideforanewlevyofTDSattherateof1%ongross
amountofsalesorservicesorboth.
The TDS is to be paid by e-commerceoperatorforsale
ofgoodsorprovisionofservicefacilitatedbyitthrough
itsdigitalorelectronicfacilityorplatform.
E-commerceoperatorisrequiredtodeducttaxatthe
timeofcreditoftheamountofsaleorserviceorboth
totheaccountofe-commerceparticipantoratthetime
ofpayment thereof tosuchparticipantbyanymode,
whichever is earlier.
Anypaymentmadebyapurchaserofgoodsorrecipi-
entof servicesdirectly toane-commerceparticipant
shall be deemed to be amount credited or paid by the
e-commerce operator to the e-commerce participant
andshallbeincludedinthegrossamountofsuchsales
orservicesforthepurposeofdeductionofincome-tax.
Atransactioninrespectofwhichtaxhasbeendeduct-
edbythee-commerceoperatorunderthissectionor
which isnot liabletodeductionundertheexemption
discussedinthepreviousbullet,thereshallnotbefur-
therliabilityonthattransactionforTDSunderanyother
provisionofChapterXVII-BoftheAct.Thisistoprovide
claritysothatthesametransactionisnotsubjectedto
TDSmorethanonce.However,ithasbeenclarifiedthat
this exemptionwillnot apply to any amount received
or receivableby ane-commerceoperator forhosting
advertisementsorprovidinganyotherserviceswhich
arenotinconnectionwiththesaleofgoodsorservices
referredtoinsub-section(1)oftheproposedsection.
Thus,nowe-commerceoperatorslikeOla,Uber,Ama-
zon, Flipkart, etc. would be liable to deduct TDS on sales
orservicesmadebyvendorsthroughtheirplatform.
Letusunderstandthisprovisionwiththehelpofanex-
ample.
Situation 1
Mr. A has bookedOla ride for travelling inDelhi and
paidRs1,000oncompletionoftherideviaOlawallet.
www.jpc.co.in 22
Inthiscase,OlawoulddeductTDS@1%[i.e.Rs10]and
depositthesamewithtaxauthoritieswherethedriver
hasprovidedhisPAN/AadhaarCard.
Situation 2
Mr. A has bookedOla ride for travelling inDelhi and
paidRs1,000oncompletionoftherideviaOlawallet.
Inthiscase,OlawoulddeductTDS@5%[i.e.Rs50]and
depositthesamewithtaxauthoritieswherethedriver
hasnotprovidedhisPAN/AadhaarCard.
Situation 3
Mr.AhasbookedOlaridefortravellinginDelhiandpaid
Rs1,000incashdirectlytothedriveroncompletionof
theride.Inthiscase,OlawouldpayTDS@1%[i.e.Rs
10] anddeposit the samewith tax authoritieswhere
thedriverhasnotprovidedhisPAN/AadhaarCard.
“E-commerceoperator”isdefinedtomeananyperson
whoowns,operatesormanagesdigitalorelectronicfa-
cilityorplatformforelectroniccommerceandisaper-
sonresponsibleforpayingtoe-commerceparticipants.
“E-commerceparticipant”isdefinedtomeanaperson
resident in India selling goods or providing services or
both,including digital products, through the digital or
electronicfacilityorplatformforelectroniccommerce.
This provision also covers non-resident E-commerce
operators. Thus, liability to deduct TDS could be fas-
tened on the non-resident or foreign company operat-
ing e-commerce platform where vendors selling goods
or providing services on their portal/platform are resi-
dents of India.
TCS on overseas remittance made under Liberalized Remittance Scheme [Sec. 206C][Applicable from April 1, 2020]
In order to widen and deepen the tax net, the Finance Bill,2020hasproposedtoamendsection206Ctolevy
TCSonoverseasremittancemadeunderLiberalizedRe-
mittanceScheme.
Under LiberalizedRemittanceScheme (‘LRS’) resident
individualsareallowedtoremituptoUSD2,50,000for-
• Sendingmoneytotheirchildrenstudyingabroad;
• Buyingpropertyabroad;
• Buying stocks listed in exchanges abroad, etc
As per the proposal, an authorised dealer receiving an
amountoranaggregateofamountsofRs7,00,000or
moreinafinancialyearforremittanceoutofIndiaun-
dertheLRSofRBI,shallbeliabletocollectTCS,ifhere-
ceivessuminexcessofsaidamountfromabuyerbeing
apersonremittingsuchamountoutofIndia,.
• attherateof5%.
• Innon-PAN/Aadhaarcasestherateshallbe10%.
TheaboveTCSprovisionshallnotapplyifthebuyeris-
• LiabletodeductTDSunderanyotherprovisionof
the Act and he has deducted such amount.
• The Central Government, a State Government, an
embassy,aHighCommission,legation,commission,
consulate, the trade representation of a foreign
State,alocalauthorityasdefinedinExplanationto
clause(20)ofsection10oranyotherpersonnoti-
fiedbytheCentralGovernmentintheOfficialGa-
zetteforthispurposesubjecttosuchconditionsas
specifiedinthatnotification.
TCS on sale of overseas tour package [Sec. 206C][Ap-
plicable from April 1, 2020]
Further, the Finance Bill, 2020 has also proposed
amendment in section 206C to levy TCS on sale of
overseas tour package.
www.jpc.co.in 23
Nowaspertheproposal,asellerofanoverseastourprogrampackagewho receivesanyamount fromanyperson who purchases such package, shall be liable to collectTCSattherateof–
• 5%.• Innon-PAN/Aadhaarcasestherateshallbe10%.
AsimilarexemptionisavailableinthiscaseasavailableincaseofremittanceunderLRSwhereTDShasalreadybeendeductedonsuchtransactionorwherethebuyeris State Govt. or Central Govt.
Overseas tour program package” is proposed to be de-finedtomeananytourpackagewhichoffersavisittoacountry or countries or territory or territories outside Indiaandincludesexpensesfortravelorhotelstayorboardingorlodgingoranyotherexpenseofsimilarna-tureorinrelationthereto.
Thus, people booking tour package for foreign coun-triesfromMakeMyTrip,ThomascookorviaanyagentwouldbeliabletoshelloutmoremoneyintheformofTCSfromApril1,2020.So,ifyouareplanningtogoforvacationinanyforeigncountry during summers, you can book tour packages tillMarch31,2020sinceprovisionsofTCSwouldtrig-gerfromApril1,2020.
TCS on sale of goods [Section 206C] [Applicable from April 1, 2020]
TheFinanceBill,2020hasproposedtoamendsection206CtolevyTCSonthesaleofgoods.
ItprovidesthatasellerofgoodsisliabletocollectTCSattherateof0.1%onconsiderationreceivedfromabuyer[Innon-PAN/Aadhaarcasestherateshallbe1%],subjecttosatisfactionoffollowingconditions-
• Consideration received from a buyer of goods inaprevious year exceeds Rs 50,00,000.
• Totalsales,grossreceiptsorturnoverofsellerex-ceedsRs10croreduringthefinancialyearimmedi-atelyprecedingthefinancialyear.
LiabilitytocollectTCSonsaleofgoodswouldnotarise
inthefollowingcases:-
• CentralGovernmenthasnotifiedsuchperson,who
shall not be liable to collect such TCS.
• Buyer is Central Govt., a State Govt. and an embas-
sy,aHighCommission,legation,commission,consu-
late,thetraderepresentationofaforeignState,a
localauthorityasdefinedinExplanationtosection
10(20)oranyotherpersonastheCentralGovern-
mentmaynotify.
• Where the seller is liable to collect TCS under other
provisionofsection206Cor thebuyer is liable to
deductTDSunderanyprovisionoftheActandhas
deducted such amount.
TDS on fees for technical services [Sec. 194J][Applica-
ble from April 1, 2020]
Generally, any payment made for contractual work
wouldfallundersection194Cunlesssuchservicescon-
sidered as technical services.
It isnoticedthatthereisalargenumberoflitigations
ontheissueofshortdeductionoftaxtreatingassessee
indefaultwheretheassesseedeductstaxundersection
194C,whilethetaxofficersclaimthattaxshouldhave
beendeductedundersection194JoftheAct.
Therefore,toreducelitigation,itisproposedtoreduce
therateforTDSinsection194Jincaseoffeesfortech-
nical services(other than professional services) to 2%
fromtheexisting10%.TheTDSrateinothercasesun-
dersection194Jwouldremainthesameat10%.
www.jpc.co.in 24
Definition of work widened[Applicable from April 1,
2020] [Sec.194C]:
Section 194C provides that anyperson responsible
forpayinganysumtoa resident forcarryingoutany
work (including the supply of labour for carryingout
anywork) inpursuanceofacontractshallat thetime
ofsuchcreditoratthetimeofpaymentwhicheveris
earlierdeduct1%/2%TDS.
Definitionofworkincludesmanufacturingorsupplying
aproductaccordingtotherequirementorspecification
ofacustomerbyusingmaterialpurchasedfromsuch
customer.
However, such definition excludes manufacturing or
supplying a product according to the requirement or
specificationofacustomerbyusingmaterialpurchased
fromaperson,otherthansuchcustomer.
It has been noted that some assessees are using the es-
capeclauseofthesectionbygettingthecontractman-
ufacturertoprocuretherawmaterialsuppliedthrough
itsrelatedparties.Asaresult,asubstantialamountof
income escapes the tax net.
Therefore, tobringclarity inthesectionandplugthe
leakage, it is proposed to amend the definition of
“work”undersection194Ctoprovidethatinacontract
manufacturing,therawmaterialprovidedbytheasses-
seeor itsassociateshall fallwithinthepurviewofthe
‘work’undersection194C.
.
Taxation of non-residents
Exemption to non-residents from filing income-tax re-
turn [Sec. 115A] [Applicable from AY 2020-21]
Sub-section (5) of Section 115A provides that a non-resident is not required to furnish itsreturnofincomeu/s139(1),ifitstotalincome,con-sistsonlyofcertaindividendorinterestincomeandtheTDS onsuch income has been deducted according to theprovisionsofChapterXVII-BoftheAct.
Whilethecurrentprovisionsofsection115AoftheActproviderelieftonon-residentsfromfilingofreturnofincomewherethenon-residentisnotliabletopaytaxother than the TDS which has been deducted on the dividend or interest income, thesame relief has notbeen extended to non-residents whose total incomeconsistsonlyoftheincomebywayofroyaltyorFTSofthenatureasmentionedabove.RepresentationshavebeenreceivedtoextendthisbenefittoroyaltyandFT-Sincome as well.
Therefore,itisproposedtoamendsection115AoftheActinordertoprovidethatanon-resident,shallnotberequiredtofilereturnofincomeundersub-section(1)ofsection139oftheActif,-
• hisoritstotal incomeconsistsofonlydividendorinterestincomeasreferredtoinclause(a)ofsub-section(1)ofsaidsection,orroyaltyorFTSincomeofthenaturespecifiedinclause(b)ofsub-section(1)ofsection115A;and
• the TDS on such income has been deducted under theprovisionsofChapterXVII-Bof theActat therates which are not lower than the prescribed rates undersub-section(1)ofsection115A.
Therefore, where aforesaid income has been paid tothe non-resident on the basis of tax rates providedunderthetaxtreaties,thebenefitofexemptionfrom
www.jpc.co.in 25
filing ITR is not available for AY 2020-21. Benefit ofexemptionfromfilingITRisavailabletonon-residentsonlywhenTDShasbeendeductedonaforesaidpassiveincome@10.4%asperSection115AoftheIncomeTaxAct.Modification of residency provisions [Sec. 6] [Applica-ble from AY 2021-22] However, aforesaid limit of 60 days is not applicableto an IndianCitizenor apersonof IndianoriginwhocomesonvisittoIndiaduringthePY.Insuchcases,hewould be treated as a resident in India only when his periodofstayis182daysormoreinthePY.
ThisprovisionprovidesrelaxationtoanIndiancitizenorapersonofIndianoriginallowingthemtovisitIndiaforalongerdurationwithoutbecomingresidentofIndia.
Instanceshavecometonoticewheretheperiodof182daysspecifiedinrespectofanIndiancitizenorpersonof Indianoriginvisiting Indiaduringtheyear, isbeingmisused. Individuals, who are actually carrying out sub-stantial economic activities fromIndia, manage theirperiodofstayinIndia,soastoremainanon-residentin perpetuity and not be required to declare theirglobal income in India.
Inthelightoftheabove,itisproposedthattheexcep-tionprovidedinsection6forvisitingIndiainthatyearbedecreasedto120daysfromtheexisting182days.
Thus,aspertheamendedprovision,anyIndiancitizenorpersonofIndianorigin,whocomesonavisittoIn-diaandstaysinIndiafor120daysormore,wouldbetreated as resident in India.
Section6(6)provides forsituations inwhichaperson
shall be “not ordinarily resident” in a previousyear.
Clause(a)thereofprovidesthatifthepersonisanin-
dividualwhohasbeennon-residentinnineoutofthe
ten previousyears preceding that year,or has during the
seven previous years preceding that year been in India
foranoverallperiodof729daysorless.Clause (b) thereof contains similar provision for theHUF.
Therewouldbeneedforrelaxation intheconditions.Inlightoftheabove,ithasbeenproposedthatanin-dividualoranHUFshallbe said tobe“notordinarilyresident”inIndiainapreviousyeariftheindividualorthemanageroftheHUFhasbeenanon-residentinIn-dia in sevenoutof tenpreviousyearspreceding thatyear.Thisnewconditionwouldreplacetheexistingcon-ditionsinclauses(a)and(b)ofsub-section(6)ofsec-tion6.
Deemed residentBudget2020-21hasproposedtotaxNRIsinIndia,whoare not paying tax anywhere in the world. According to the proposal, suchNRI taxpayersmaybe required topay tax in India.
ItprovidesthatanIndiancitizenwhoisnotliabletotaxin any other country or territory shall be deemed to be a resident in India.
This isananti-abuseprovisionsince it isnoticed thatsomeIndiancitizensshifttheirstayinlowornotaxju-risdictiontoavoidpaymentoftaxinIndia. However,insomesectionofthemedia,thenewprovi-sion is being interpreted to create an impression that thoseIndianswhoarebonafideworkersinothercoun-tries,includingMiddleEast,andwhoarenotliabletotax in these countries will be taxed in India on the in-come that they have earned there.
Now the CBDT vide press release dated, February 2,2020hasclarifiedthatincaseofanIndiancitizenwhobecomesdeemedresidentofIndiaunderthisproposedprovision,income earned outside India by him shall not betaxedinIndiaunlessitisderivedfromanIndianbusi-
nessorprofession.
www.jpc.co.in 26
Penalty
Provision for e-penalty [Section 274] [Applicable from
April 1, 2020]
Section274oftheIncomeTaxActprovidesforthepro-
cedureforimposingapenaltyunderChapterXXIofthe
Act.Inresponsetoashow-causenoticeissuedbythe
AO,assesseeorhisAR is still required tovisit theof-
fice of theAO.With the advent of the E-Assessment
Scheme-2019andinordertoensurethatthereforms
initiatedbytheDepartmenttoeliminatehumaninter-
face from the system reaches thenext level, it is im-
perativethatane-penaltyschemebelaunchedonthe
linesofE-assessmentScheme-2019.
Therefore, it is proposed to insert a new sub-section
(2A)inthesaidsectionsoastoprovidethattheCentral
Governmentmaynotifyane-schemeforthepurposes
ofimposingpenaltysoastoimpartgreaterefficiency,
transparency and accountability by,—
• eliminatingthe interfacebetweentheAOandthe
assessee
• optimising utilisation of the resources through
economiesofscaleandfunctionalspecialisation;
• introducingamechanismforimposingofthepen-
altywithdynamicjurisdictioninwhichpenaltyshall
beimposedbyoneormoreincome-taxauthorities
Penalty for fake invoices [Applicable from April 1,
2020]
IntherecentpastafterthelaunchofGoods&ServicesTax (GST), severalcasesof fraudulent input taxcredit(ITC)claimhavebeencaughtbytheGSTauthorities.
In these cases, fake invoices are obtained by suppli-ersregisteredunderGSTtofraudulentlyclaimITCand
reducetheirGST liability.These invoicesare foundto
be issued by racketeers who do not actually carry on
any business or profession. They only issue invoices
without actually supplying any goods or services.
The GST shown to have been charged on such invoices
isneitherpaidnorisintendedtobepaid.Suchfraud-
ulent arrangements deserve to be dealt with harsher
provisions under the Act.
Therefore,itisproposedtointroduceanewprovision
intheActtoprovideforalevyofpenaltyonaperson,
ifitisfoundduringanyproceedingundertheActthat
inthebooksofaccountsmaintainedbyhimthereisa-
• falseentryor• anyentryrelevantforcomputationoftotalincome
ofsuchpersonhasbeenomittedtoevadetaxliabil-ity.
The penalty payable by such person shall be equal to theaggregateamountoffalseentriesoromittedentry.It is also proposed to provide that any other person, who causes in any manner a person to make or cause tomakea falseentryoromitsor causes toomitanyentry,shallalsopaybywayofpenaltyasumwhichisequaltotheaggregateamountsofsuchfalseentriesoromittedentry.
Vivad se Vishwash Bill, 2020
In the past Government has taken several measures toreducetaxlitigations.Inthelastbudget,SabkaVish-wasSchemewasbroughtintoreducelitigationinindi-recttaxes.Itresultedinsettlingover1,89,000cases.
Currently, there are 4,83,000 direct tax cases pending in variousappellateforums,i.e.,Commissioner(Appeals),ITAT, High Court and SupremeCourt. Thus, this year, the Hon’bleFinanceMinisterbroughtaschemesimilartotheindirect tax SabkaVishwas for reducing litigationseven in the direct taxes.
The Govt. has introduced Direct Tax Vivad se Vishwas Bill, 2020 in the Lok Sabha on February 5, 2020. SalientfeaturesofVivadseVishwasBill,2020aregiven
www.jpc.co.in 27
• Taxpayerswhoseappealswerependingbeforethe
appellateforums[i.e.,CIT(A), ITAT,HighCourtand
SupremeCourt]ason January31st2020,canopt
forresolutionunderthisScheme;
• Theschemeprovidesforwaiverofinterest,penalty
&prosecutionwherethedeclarationprovidedun-
dertheSchemeisfiledbythedeclarantbeforethe
designated authority.
• the amountpayable by the declarant under this Act
shallbeasunder,namely:—
Nature of tax arrear The amount
payable be-fore March 31, 2020
The amount payable after March 31, 2020 but on or before the last date
Disputed tax, interest and penalty on such disputed tax.
100%ofdis-puted tax
10%
(completewaiverofpenaltyandinterest)
Entiredis-puted tax +10%*ofdisputed tax
15%
Disputed interest, disputed penalty and disputedfee
25%ofdis-puted inter-est, disputed penalty, disputedfee
30%ofdis-puted inter-est or disput-ed penalty or disputedfee
*where 10% of disputed tax exceeds the aggregate
amount of interest and penalty charged on disputed
tax, such excess shall be ignored.
• Wherethedeclaranthasfiledanyappealbeforethe
appellateforumoranywritpetitionbeforetheHigh
Court or the Supreme Court against any order in re-
spect of tax arrear,he shallwithdraw such appeal
orwritpetitionwiththe leaveof theCourtwher-
everrequiredandfurnishproofofsuchwithdrawal
alongwiththedeclaration.
• Any amount paid in pursuance of a declaration
madeundersuchschemeshallnotberefundableunderany circumstances
• TheprovisionsofthisActshallnotapply—inrespectoftaxarrear,—• relatingtoanassessmentyearinrespectofwhich
anassessmenthasbeenmadeundersection153Aorsection153CoftheIncome-taxAct,if itrelatestoanytaxarrear;
• relatingtoanassessmentyearinrespectofwhichprosecutionhas
• beeninstitutedonorbeforethedateoffilingofadeclaration;
• relating to anyundisclosed income froma sourcelocated outsideIndia or an undisclosed asset locat-edoutsideIndia;
• relatingtoanassessmentorreassessmentmadeonthebasisof
• informationreceivedunderanagreementreferredto in section 90 or section 90Aof the Income-taxAct,ifitrelatestoanytaxarrear;
• relatingtoanappealbeforetheCommissioner(Ap-peals) in respect ofwhich notice of enhancementundersection251oftheIncome-taxActhasbeenissuedonorbeforethespecifieddate;
a. toanypersoninrespectofwhomanorderofde-tentionhasbeenmadeundertheprovisionsoftheConservationof Foreign Exchange andPreventionof SmugglingActivitiesAct, 1974onor before thefilingofdeclaration[subject tosatisfactionofcer-tainconditions];
b. toanypersoninrespectofwhomprosecutionforanyoffencepunishableundertheprovisionsoftheIndianPenalCode,theUnlawfulActivities(Preven-tion)Act,1967,theNarcoticDrugsandPsychotropicSubstancesAct,1985,thePreventionofCorruptionAct,1988,thePreventionofMoneyLaunderingAct,2002,theProhibitionofBenamiPropertyTransac-tionsAct,1988orforthepurposeofenforcementofanycivilliabilityhasbeeninstitutedonorbeforethefilingofthedeclarationorsuchpersonhasbeenconvictedofanysuchoffencepunishableunderanyofthoseActs;
c. toanypersonnotifiedundersection3oftheSpe-cialCourt(TrialofOffencesRelatingtoTransactionsin Securities) Act, 1992 on or before the filing ofdeclaration.
www.jpc.co.in 28
Other proposals
Rationalisation of provisions relating to Form 26AS [Applicable from June 1, 2020]
Section203AAof theAct, inter-alia, requiresthepre-scribedincome-taxauthorityorthepersonauthorisedbysuchauthorityreferredtoinsub-section(3)ofsec-tion200, toprepareanddelivera statement inForm26AStoeverypersonfromwhoseincome,thetaxhasbeendeductedorinrespectofwhoseincomethetaxhasbeenpaidspecifyingtheamountoftaxdeductedor paid.
The Form 26AS as prescribed in the Rules, inter-alia,contains the information about tax collected or de-ducted at source. However, with the advancement in technology and enhancement in the capacity of thesystem, multiple information in respect of a personsuch as sale/purchase of immovable property, sharetransactions,etc.arebeingcapturedorproposedtobecaptured.Infuture,it isenvisagedthatinordertofa-cilitatecompliance,thisinformationwillbeprovidedtothe assessee by uploading the same in the registered accountoftheassesseeonthedesignatedportaloftheIncome-taxDepartment,sothatthesamecanbeusedbytheassesseeforfilingofthereturnof incomeandcalculatinghiscorrecttaxliability.
AsthemandateofForm26ASwouldberequiredtobeextendedbeyondtheinformationabouttaxdeducted,itisproposedtointroduceanewsection285BBintheAct regarding annual financial statements. This sec-tion proposes tomandate the prescribed income-taxauthority or the person authorised by such authority toupload in theregisteredaccountof theassesseeastatement insuchformandmannerandsettingforthsuch information,which is inthepossessionofan in-come-tax authority, andwithin suchtime, asmaybeprescribed.
Consequently,section203AAisproposedtobedeleted
clauses(1)and(23C)]shallnotbeallowed.
Ithasbeennoticedthatthereissomeanomalybypro-
vidingexclusiontoinstitutionsorfundregisteredunder
clause (23C) of section 10, but the same exclusion is
notavailabletoentitiesclaimingexemptionus/10(46)
whichareestablishedorconstitutedunderaCentralor
StateActorbyaCentralorStateGovernment.Suchenti-
tiesare,thus,notabletogetnotifiedu/ssection10(46)
iftheyareholdingregistrationundersection12A/12AA.
Accordingly,thefollowingchangeshavebeenproposed:-
• Similar toexemptionsunderclauses (1)and (23C),
exemption u/s10(46) shall be allowed to an entity
evenifitisregisteredu/s12AAsubjecttothecondi-
tionthattheregistrationshallbecomeinoperative.If
theentitywishestomakeitoperativeinthefuture,
itwillhavetofileanapplicationandthenitwould
not be entitled for deduction u/s10(46) from the
dateonwhichtheregistrationbecomesoperative.
• The registration u/s 12AA would also become in-
operativeincaseofanentityexemptunderclause
(23C)ofsection10aswell,tohaveuniformity.The
condition about making it operative again would
alsobesimilartowhatisproposedforclause(46)of
section10.
Rationalising the process of registration of trusts, insti-
tutions, funds, university, hospital, etc [Section 12AA]
[Applicable from June 1, 2020]
Following changes have been proposed in order to ra-
tionalizetheprocessofregistrationoftrusts,etc:-
• an entity approved, registered or notified u/s
10(23C),u/s12AAoru/s35shallberequiredtoap-
ply for approval or registrationor intimate regard-
ing it being approved and on doing so, the approval,
www.jpc.co.in 29
registrationornotificationinrespectoftheentityshall
bevalidforaperiodnotexceeding5previousyearsat
onetimecalculatedfrom1stApril,2020.
• Anentityalreadyapprovedu/s80Gshallalsobere-
quiredtoapplyforapprovalandondoingso,theap-
proval,registrationornotificationinrespectofthe
entityshallbevalidforaperiodnotexceedingfive
yearsatonetime.
• Applicationforapprovalu/s80Gshallbemadeto
Principal Commissioner or Commissioner.
• An entity making fresh application for approval
under clause (23C) of section 10, for registration
u/s12AA,forapprovalu/s80Gshallbeprovision-
allyapprovedorregisteredfor3yearsonthebasis
ofapplicationwithoutdetailedenquiryeveninthe
caseswhereactivitiesoftheentityareyettobegin
andthen ithastoapplyagain forapprovalor reg-
istrationwhich, if granted, shallbevalid fromthe
dateofsuchprovisionalregistration.
• Theapplicationof registrationsubsequent topro-
visional registration shouldbeat least sixmonths
prior.
• totheexpiryofprovisionalregistrationorwithinsix
monthsofthestartofactivities,whichever isear-
lier.
Filing of statement of donation by donee to cross-
check claim of donation by donor [Applicable from
June 1, 2020]
Atpresent,thereisnoreportingobligationbytheex-emptentityreceivingdonation/anysum in respectofsuch donation/ sum.With the advancement in tech-nology, it is now feasible to standardise the processthroughwhich one-to-one matching between what isreceivedbytheexemptentityandwhatisclaimedasadeductionbytheassessee.
Accordingly,ithasbeenproposedthatdeductionunder
section80G/80GGAtoadonorshallbeallowedonly
if a statement is furnishedby thedoneewhoshallbe
requiredtofurnishastatementinrespectofdonations
receivedandintheeventoffailuretodoso,feeand-
penalty shall be levied.
www.jpc.co.in 30
www.jpc.co.in 31
INDIRECT TAX INDIRECT TAX & &
GST CHANGESGST CHANGES
Definition
Amendment in Sec 2
The definition of “Union territory” in clause (114) of
section2oftheCGSTActisbeingamendedtoupdate
thedefinitionofUnion territory in viewof thebring-
ingintoforceoftheJammuandKashmirReorganization
Act,2019andtheDadraandNagarHaveliandDaman
andDiu(MergerofUnionTerritories),Act,2019.
Consequentialchangesarealsobeingmade inUTGST
Act, 2017.
Analysis
Theamendmentwasmadetogivetheeffectofmaking
DadraandNagarHaveli,DamanandDieandLadakha
UnionTerritory.
Composition Scheme
Amendment in Sec 10
Section10oftheCGSTActisbeingamended,soasto
excludefromtheambitoftheCompositionschemecer-
taincategoriesoftaxablepersons,engagedinmaking-
(i) supplyofservicesnotleviabletotaxunderthe
CGST Act, or
(ii) inter-Stateoutwardsupplyofservices,or
(iii) outward supplyof services throughane-com-
merce operator.
AnalysisEarlier,ifapersonwasengagedinmakinganyofthefol-lowingsupplies thenhewasnoteligible forcomposi-tionregistration:i. supplyofgoodswhicharenotleviabletotaxii. anyinter-stateoutwardsuppliesofgoodsiii. supplyofgoodsthroughane-commerceopera-tor.Itmaybenotedthattheaboverestrictionisimposedonthesupplyofgoodsonlyhoweverthroughthisamend-ment supplier of services are also coveredunder theabove eligibility criteria. Debit Note
Amendment in Sec 16Subsection (4)of section16of theCGSTAct is beingamendedtodelinkthedateof issuanceofdebitnotefromthedateofissuanceoftheunderlyinginvoiceforpurposesofavailinginputtaxcredit.
AnalysisEarlier the input tax credit against debit note shall not be allowed after the due date of the return for themonthofSeptemberfollowingtheendofthefinancialyear towhich invoicerelatingtosuchdebitnoteper-tains.Aftersuchamendment,ataxpayercanavail inputtaxcreditagainstdebitnoteaspertheabovetimeline ir-
respectiveofthedateoftheoriginalinvoice.
www.jpc.co.in 32
INDIRECT TAX & GST CHANGES
Indirect Tax Our Indirect tax analysis consists of analysis of Goods and Service Tax, Customs and Excise.
Goods and Service Tax Amendments
Cancellation of Registration
Amendment in Sec 29
Clause(c)ofsub-section(1)ofsection29oftheCGST
Act is being amended to provide for cancellation of
registrationwhichhasbeenobtainedvoluntarilyunder
sub-section(3)ofsection25.
Analysis
Earliertheproperofficercancanceltheregistrationof
a taxable person other then a person taking voluntary
registrationeitheronhisownmotionoranapplication
filedbysuchperson,ifsuchpersonisnolongerbeli-
able to be registered under the act.
Aftersuchamendmentapersoncantakevoluntaryreg-
istrationshallapplyforcancellationincasesuchperson
wishes to opt out and also gives power to the proper
officertocancelonhisownmotion.
Revocation of Registration
Amendment in Sec 30
Aproviso to sub-section 1 of section 30 of the CGST
Actisbeinginsertedtoempowerthejurisdictionaltax
authoritiestoextendthedateforapplicationofrevoca-
tionofcancellationof registration indeservingcases.
Analysis
Earlierataxpayercanapplyforrevocationofregistra-
tion within 30 days of service of cancellation order.
Through this amendment, powers have been given to
thetaxauthoritiestoextendsuchtimelimitforfurther
60 days on sufficient cause and reasons recorded in
writing.
Issuance of TDS Certificate
Amendment in Sec 51Section51oftheCGSTActisbeingamendedtoremovethe requirementof issuanceofTDScertificateby thedeductor and to omit the corresponding provision oflatefeesfordelayinissuanceofTDScertificate.
AnalysisThroughthisamendmentthe late feesofRs.200perday has been removed for non-furnishing of the TDScertificatetothedeductee.
Penalty
Amendment in Sec 122Section122of theCGSTAct isbeingamendedby in-serting anew sub-section tomake thebeneficiaryofthe transactions of passing on or availing fraudulentInputTaxCreditliableforpenaltysimilartothepenaltyleviableonthepersonwhocommitssuchspecifiedof-fences.Amendment in Sec 132Section132oftheCGSTActisbeingamendedtomaketheoffenceoffraudulentavailmentofinputtaxcreditwithout an invoice or bill a cognizable and non-bail-able offence; and tomake any personwho commits,or causes the commission and retains the benefit oftransactionsarisingoutofspecifiedoffencesliableforpunishment.
AnalysisEarlier the penalty/punishment has been imposed on thepersonwhohavecommittedtheoffencehoweverthrough this amendment such penalty/punishment has been extended to the person who retains the bene-fitsarisingoutofsuchoffence.Further,theoffenceoffraudulent availment of credit without invoice or bill
wouldnowbecognizableandnon-bailable.
www.jpc.co.in 33
Transitional Provision
Amendment in Sec 140Section140oftheCGSTActisbeingamendedwithef-fectfrom01.07.17,toprescribethemannerandtimelimitfortakingtransitionalcredit.
Removal of Difficulties Order
Amendment in Sec 172Section172oftheCGSTActisbeingamendedtomakeprovisionforenablingtheissuanceofremovalofdiffi-cultiesorderforanother2years,i.e.tillfiveyearsfromthedateofcommencementofthesaidAct.Similar changes are also being made in the IGST Act, 2017(section25),theUTGSTAct,2017section26)andthe GST (Compensation to States) Act, 2017 (section14).
AnalysisThe time limit of issuing Removal of difficulties hasbeenextendedforanother2yearsinordertoamend
orextendanytimelimitundertheAct.
Schedule II
Entriesat4(a)&4(b)inScheduleIIoftheCGSTActis
being amendedwith effect from01.07.2017 tomake
provisionfortheomissionofmadewithoutanyconsid-
erationfromScheduleIIofthesaidAct.
Analysis
Earlier Schedule II provides that the transfer of busi-
ness assets shall be considered as a supply of good
evenmadewithoutconsiderationhoweversuchprovi-
sionhasbeenamended so as toexcludes transferof
assetswithoutconsiderationfromtheambitofsupply
ofgoods.
www.jpc.co.in 34
Retrospective amendments to give effect to the recommendations of the GST Council
Central Excise
Few Amendment have been brought in the Seventh Schedule to the Finance Act 2001 (Clause [145] of the Finance Bill, 2020) in relation collect more excise from sin goods such as cigarette and tobacco products.
S. No. Tariff Item Description of goods Unit From To
1 2402 20 10 Otherthanfiltercigarettes,oflengthnotexceed-
ing 65 millimetres
Tu Rs. 90 per
thousand
Rs. 200 per
thousand
2 2402 20 20 Otherthanfiltercigarettes,oflengthexceeding
65 millimetres but not exceeding 70 millimetres
Tu Rs. 145 per
thousand
Rs. 250 per
thousand
3 2402 20 30 Filtercigarettesoflength(includingthelength
ofthefilter,thelengthoffilterbeing11millime-
tresoritsactuallength,whicheverismore)not
exceeding 65 millimetres
Tu Rs. 90 per
thousand
Rs. 440 per
thousand
S. No. Retrospective amendment in the Goods and Service Tax rate and refund provisions
1 ExemptionfromCentralTax,UnionTerritoryTaxandIntegratedTaxisbeinggivenonfishmeal[HS
2301],fortheperiod01.07.2017to30.09.2019.However,GSTpaidonthesupplyoffishmealduring
theperiodshallnotberefunded.2 Concessional12%rateofIntegratedTaxand6%CentralTaxand6%UnionTerritoryTaxduringthe
period01.07.2017to31.12.2018,onpulley,wheelsandotherparts(fallingunderheading8483)and
usedaspartsofagriculturalmachineryofheadings8432,8433,and8436.However,GSTpaidatany
otherrate(higherthan12%)shallnotberefunded.3 Therefundofaccumulatedcreditofcompensationcessontobaccoproductsarisingoutofinverted
dutystructureinCompensationCesshasbeendisallowedwitheffectfrom1.10.2019videnotification
No.3/2019-CompensationCess(Rate)dated30.9.2019.Thisnotificationisbeinggivenretrospective
effectfrom1.7.2017onwards.Accordingly,norefundonaccountofaninverteddutystructureshall
beadmissibleontobaccoproductsforanyperiod.
35
www.jpc.co.in 36
4 2402 20 40 Filtercigarettesoflength(includingthelengthof
thefilter,thelengthoffilterbeing11millimetres
oritsactuallength,whicheverismore)exceeding
65 millimetres but not exceeding 70 millimetres
Tu Rs. 90 per
thousand
Rs. 440 per
thousand
5 2402 20 50 Filtercigarettesoflength(includingthelengthof
thefilter,thelengthoffilterbeing11millimetres
oritsactuallength,whicheverismore)exceeding
70 millimetres but not exceeding 75 millimetres
Tu Rs. 145 per
thousand
Rs. 545 per
thousand
6 2402 20 90 Other Tu Rs. 235 per
thousand
Rs. 735 per
thousand7 2402 90 10 Cigarettesoftobaccosubstitutes Tu Rs. 150 per
thousand
Rs. 600 per
thousand8 2403 11 10 Hookah or gudaku tobacco Kg. 10% 25%
9 2403 19 10 Smokingmixturesforpipesandcigarettes Kg. 45% 60%
10 2403 19 90 Other Kg. 10% 25%
11 2403 91 00 “Homogenised”or“reconstituted”tobacco Kg. 10% 25%
12 2403 99 10 Chewing tobacco Kg. 10% 25%
13 2403 99 20 Preparationscontainingchewingtobacco Kg. 10% 25%
14 2403 99 30 Jardascentedtobacco Kg. 10% 25%
15 2403 99 40 Snuff Kg. 10% 25%16 2403 99 50 Preparations containing snuff Kg. 10% 25%17 2403 99 60 Tobacco extracts and essence Kg. 10% 25%
18 2403 99 90 Other Kg. 10% 25%
Custom
For improving compliance
AnewChapterVAA(anewsection28DA)isbeingincor-porated in the Customs Act to provide enabling provi-sionforadministeringthepreferentialtarifftreatmentregime under Trade Agreements. The proposed new section seeks to specifically provide for certain obli-gationsontheimporterandprescribefortimeboundverification from exporting country in case of doubt.Pending verificationpreferential tariff treatment shallbesuspendedandgoodsshallbeclearedonlyonfur-nishing security equal to differential duty. In certaincases,thepreferentialtarifftreatmentmaybedeniedwithoutfurtherverification.
AnalysisA new chapter has been inserted in order to provide theprocedureregardingtheclaimofapreferentialrateof dutyon goods importedunder a tradeagreemententeredwiththeGovernmentofforeigncountry.
For reducing litigation
Anexplanationisbeinginsertedinsection28toexplic-itlyclarifythatanynoticeissuedunderthesaidsection,priortotheenactmentoftheFinanceAct,2018,shallcontinuetobegovernedbythesection28asitexistedbeforethesaidenactment,notwithstand-ing theorderof anyAppellate Tribunal, Courtor anyother law to the contrary.
AnalysisAnalysisThisisaretrospectiveamendmentmadeforproviding29thMarch2018asthecutoffdateforthegovernanceof notice issued prior to Finance Bill 2018 till the date ofreceipt.
Other enabling provisions
Clause (f) of the section 11(2) empowers the CentralGovernment,forpreventionof injurytotheeconomyofthecountrybytheuncontrolledimportorexportofgold or silver, to prohibit their import or export. This clause is being amended to include “any other goods” (inadditiontogoldandsilver)initsambit.
AnalysisEarlier the provision restricts the uncontrolled import ofgoldorsilverforpreventionofinjurytotheeconomyhowever this amendment now includes other goods undersuchrestriction.
• A new section (section 51B) is being incorpor-ated to provide for the creation of an ElectronicDuty Credit Ledger in the customs system. This will enable duty credit in lieu of duty remissionto be given in respect of exports or other suchbenefit in electronic form for its usage, transferetc. In this regard, enabling provisions for issu-ance of suitable regulations are also being in-serted insection157(2)of theCustomsAct,1962.
The provisions for recovery of duties provided undersection28AAAofCustomsAct,1962arealsobeingex-pandedtoincludesuchelectroniccreditofduties.
Amendments to the Customs Tariff Act, 1975
Section8BoftheCustomsTariffAct,1975,whichpro-videdforimpositionofsafeguarddutyasatraderem-edyagainstsurgein importsofacommodity, isbeing
tomakeprovisions forapplicationofother safeguard
measures such as Tariff Rate Quota and other safe-
guard measure as the Central Government may deem
necessarytoprotectthedomesticindustryfrominjury
duetosignificantsurgeinimports.
www.jpc.co.in 37
Amendment in the First Schedule of the Customs Tariff
Act, 1975
FirstScheduletotheCustomsTariffAct,1975isbeing
amendedto:
(i) Create new tariff item 8414 51 50 for “Wall
fans”. The tariff rate for this item is20%andBCDon
wallfansisbeingincreasedfrom7.5%to20%.
(ii) Createnewtariffitem85299030for“OpenCell
of television set”. The tariff rate for this item is 15%.
However,theseitemswillcontinueat‘Nil’BCD.
(iii) Createtariff items85414011for“SolarCells,
notassembled”and tariff item85414012 for “Solar
Cells assembled in modules or made up into panels”.
Thetariffrateforthese items is20%.However,these
itemswillcontinueat‘Nil’BCD.
Amendment in Countervailing Duty Rules and Anti-
Dumping Duty Rules
S. No. Rules Amendment
1 Anti-
Dumping
Rules
Changes are being made in the
Rulestostrengthentheanti-cir-
cumventionmeasuresbymaking
them more comprehensive and
widerinscopetotakecareofall
typesofcircumventionsofanti-
dumping duty in line with best
internationalpractice.Certain
other changes are being made in
theseRulesforbringingclarityin
thescopeoftheserules.2 Counter-
vailing
Duty
Rules
At present, there is no provi-
sionforinvestigationincaseof
circumventionofcountervailing
duties.Aprovisionisbeingin-
corporated in the Countervailing
DutyRulestoenableinvestiga-
tionintocaseofcircumvention
ofcountervailingdutyforena-
blingimpositionofsuchduty.
Certain other changes are being
madeforbringingclarityinthe
Rules.
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Review of Customs duty exemption for certain imported goods
S.
No.
Rules Amendment
1 Agro and
animal based
products
Tuna bait,skimmed milk and certain milk products, sugar beet seeds, raw sugar, certain
alcoholicbeverages,wheyandisolatedsoyaprotein,soyafibre,etc.
2 Itemsof
Metal
a. Lead bars, rods and wire
b. Zinc tubes, pipes and tubes
c. Tin plates, sheets and strips
3 Machinery Machineryimportedforuseincertainprojectssuchasspecifiedelectricitygeneration
projects,specifiedMetroprojects,certainotherspecifiedpurposes;
Specifiedgoodsrequiredfortheconstructionofroads
4 Electronic
items
Copperandarticlesthereofusedinthemanufacturingofspecifiedelectronicitems;
Partsforthemanufactureofprinters,CDWriters,MP3orMP4orMPEG4players,pre-
recordedcassettes,audiocassettes,colourtelevisiontubes,etc.
5 Miscellane-
ous
a. Peanutbutter,preservedpotatoes
b. Instantprintfilm,exposedcinematographicfilms
c. Afewredundantandoutdatedcustomsdutyexemptionsarebeingwithdrawn.
Further,afewexemptionsarebeingre-alignedforconsistency.
Changes in Customs duty for creating a level playing field for MSME and promoting MAKE IN INDIA
S.
No.
Categoryofgoods Specificitems Rate of dutyFrom To
1. Household goods and appliances Tablewareandkitchenwareofporcelainor
china, ceramic, clay, iron, steel, copper and
aluminium, glassware, padlocks, brooms,
hand-sieves,combs,vacuumflasks,etc.
10% 20%
2. Electrical Appliances Fans,foodgrinders/mixers,shaversandhair
removing appliances, water heaters, hair/
hand drying apparatus, ovens, cookers, toast-
ers,coffee/teamakers,insectrepellents,
heaters, irons, etc.
10% 20%
3. Footwear a. Footwear
b. Partsoffootwear
25%
15%
35%
20%
4. Furniture goods Seats,articlesofbeddingincludingmat-
tresses,lamps,lighting,illuminatedsigns,and
otherarticlesoffurniture
20% 25%
5. Stationeryitems Filing cabinets, paper trays, binders, clips, sta-
ples,sign-plates,nameplates,numbersand
symbolsetc.madefrombasemetal
10% 20%
6. Toys Tricycles, scooters, scale models, dolls, etc. 20% 60%
7. Machinery a.Specifiedgoodsusedinhighvoltagepowertransmissionproject
5% 7.5%
b.Railwaycarriagefans 7.5% 10%c.Compressorsofrefrigeratorsandaircondi-
tioners
10% 12.5%
d.Commercialfreezers 7.5% 15%e.Weldingandplasmacuttingmachine 7.5% 10%f.Rotarytillers/weeder 2.5% 7.5%
8. Other miscellaneous items • Glass beads• Artificialflowers• Bells,gongs,statuettes,trophiesand
like,statuettes,ornaments,photograph,frames,mirrorsetc.ofbasemetal.
10% 20%
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Changes in Customs duty to promote MAKE IN INDIA under Phased Manufacturing Programme (PMP) for Electric Vehicles and Cellular Mobile Phones
A. ChangesincustomsdutyunderPhasedManufacturingProgrammefor
Electric Vehicles
Rate of dutyFrom To
1. CompletelyBuiltUnitsofBusandTrucks(witheffectfrom
01.04.2020)
25% 40%
2. SemiKnockedDown(SKD)unitsofbus,trucksandtwowheelers
(witheffectfrom01.04.2020)
15% 25%
3. SemiKnockedDown(SKD)unitsofpassengervehiclesandthree
wheelers(witheffectfrom01.04.2020)
15% 30%
4. CompletelyKnockedDown(CKD)unitsofpassengervehicles,
threewheelers,twowheelers,busandtrucks(witheffectfrom
01.04.2020)
10% 15%
B. ChangesincustomsdutyunderPhasedManufacturingProgrammeforCellularMobilePhones
1 PCBAofMobilephones(witheffectfrom01.04.2020) 10% 20%
2 Vibrator/RingerofMobilephones(witheffectfrom01.04.2020) Nil 10%
3 DisplayPanelandTouchAssembly(witheffectfrom01.10.2020) Nil 10%
Changes in Customs duty to promote MAKE IN INDIA in Electronics sector
A. ChangesincustomsdutyunderPhasedManufacturingProgrammefor
Electric Vehicles
Rate of dutyFrom To
1. MotorslikeSinglePhaseACmotors,Steppermotors,WiperMotors,
etc.
7.5% 10%
2. Specifiedchargersandpoweradapters Applicable
Rate
20%
3. Fingerprintreadersforuseincellularmobilephones Nil 15%
4. Earphones and headphones Applicable
Rate
15%
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Reduction in Customs duty on raw materials and inputs imported by Domestic Manufacturers
S.
No.
Categoryofgoods Specificitems Rate of dutyFrom To
1. Fuels,ChemicalsandPlastics VerylowsulphurfueloilmeetingISO
8217:2017RMG380Viscosityin220-400CST
standards/MarineFuel0.5%(FO)
10% Nil
Calcined Petroleum Coke
Calendaredplasticsheetsusedinthemanu-facturingofsmartcardsPolyesterLiquidCrystalPolymersforuseinthemanufactureofconnectors
2. PreciousMetals PlatinumorPalladiumusedinthemanufac-
tureof:
a)Colloidalpreciousmetals,inorganicor
organiccompoundsofpreciousmetal,amal-
gamsofpreciousmetals
b)Catalystwithpreciousmetalorprecious
metalcompoundsastheactivesubstance
12.5% 7.5%
Spent Catalyst or Ash containing precious metal,subjecttospecifiedconditions
3. MachineryandElectronicGoods FollowingpartsofMicrophoneforusein
manufactureofMicrophonenamely,
a) microphonecartridge
b) microphoneholder
c) microphonegrill
d) microphonebody
10% Nil
7.5% NilMicro-fusebase,sub-miniaturefusebase,
Micro-fuseCoverandsub-miniaturefuse
coverforuseinmanufactureofmicrofuse
andsub-miniaturefuse.4. Sports Goods Willowisbeingincludedinthelistofitemsal-
loweddutyfreeimportupto3%ofFOBvalue
ofsportsgoodsexportedinthepreceding
financialyear
Applica-
ble Rate
Nil
5. Stationeryitems Filing cabinets, paper trays, binders, clips, sta-
ples,sign-plates,nameplates,numbersand
symbolsetc.madefrombasemetal
20%
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S.
No.
Categoryofgoods Specificitems Rate of dutyFrom To
5. FNewsprint • Newsprint,whenimportedbyimporterregistered
withRegistrarofNewspapers,India.
• Uncoatedpaperusedforprintingnewspaper,when
importedbyimporterregisteredwithRegistrarof
Newspapers,India.
• Lightweightcoatedpaperusedforprintingmaga-
zinessubjecttoactualusercondition.
10% 5%
Other changes in Customs duty
S.
No.
Categoryofgoods Specificitems Rate of duty
From To
1. Food processing Walnuts, shelled 30% 100%
2. ChemicalsandPlastics Colloidal precious metals, inorganic or organic com-poundsofpreciousmetal,amalgamsofpreciousmetals
7.5% 10%
5% 7.5%Butyl Acrylate
10% 15%Otherpreparedbindersforfoundrymouldsorcores;Chemicalproductsandpreparationsofthechemicalorallied industries
3 Auto and auto parts Catalyticconverter 10% 15%
Noblemetalsolutionsandnoblemetalcompoundsusedinmanufactureofcatalyticconverteranditsparts
5% 10%
PlatinumorPalladiumusedinmanufacturingofcata-lyticconverteranditsparts
5% Applicable Rate
Partsandotherspecifiedinputsforthemanufactureofcatalyticconverters.
5% 7.5%
CompletelyBuiltUnits(CBUs)ofcommercialvehi-cles(otherthanelectricvehicles)(witheffectfrom01.04.2020)
30% 40%
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R E G U L A T O R Y R E G U L A T O R Y
CHANGESCHANGES
Regulatory Changes
The Modi Government has come up with few posi-tivechangesintheareaofregulations,which includesamendmentsinstampactandMSME,amendmentsareanalysedindetailbelow:
Indian Stamp Act, 1899
Withinsertionofprovisotosub-section(2)ofSection9AoftheAct,anexceptionhasbeenprovidedonpay-ment of duty for instruments oftransaction in stockexchanges and depositories established in any Interna-tionalFinancialServicesCentresetupundersection18oftheSpecialEconomicZonesAct,2005,theyaregivenspecial leverage with no duty.
Section73Bhasbeeninsertedforempoweringcentralgovernmenttoissuedirectionsandtoauthorisecertainauthoritiesviz.SEBIandRBItoissueinstructions,circu-larsandguidelines,retrospectively,forcarryingouttheprovisionsofPartAAofChapterIIofthisAct.
Benami Property transaction Act, 1988
Amendment to section 9 has been made to includeapersonwho is “qualified tobeappointedasdistrictjudge”asaqualificationtobeappointedaschairpersonandmemberoftheAdjudicatingAuthority.
Election Commission (Conditions of service of election commissioners and transaction of business) Act, 1991
The service conditions of the Chief Election Commis-sioner aswell as other Election Commissioners is re-duced by withdrawing certain perquisites such as ex-emptionfrompaymentof income-taxonthevalueofsuchrent-freeresidence,conveyancefacilities,sumptu-
aryallowance,medicalfacilities.
Other Proposals
• External Commercial Borrowings and FDI is being proposed to finance the education system so as-tobeable todeliverhigherqualityeducationwiththe motive to attract talented teachers, innovateandbuildbetterlabs.
• It is also been proposed that the Companies Act to besuitablyamendedtodemarcatethenatureoftheactionsascriminalorcivil,likewiseitisproposedtobring such changes in the other laws as well.
Proposed Amendment for MSMEs
MSMEsplayavital role inoureconomy.Governmenthas taken various measure for their upliftment andthroughthisbudget,governmentisproposingthefol-lowing:
• It isproposedtoamendtheFactorRegulationAct2011 so thatNBFCs are able to extend invoice fi-nancingtotheMSMEsthroughTReDS.
• TocatertheworkingcapitalcreditrequirementsofMSME, itproposedto introduceaschemetopro-videsubordinatedebtforentrepreneursofMSMEs.This subordinate debt to be will be provided by banksandwouldbequasi-equity,fullyguaranteedthroughtheCreditGuaranteeTrustforMediumandSmall Entrepreneurs (CGTMSE). Thecorpusof theCGTMSEwouldaccordinglybeboostedbythegov-ernment.
• Considering thebenefit thatMSMEshavederivedfromrestructuringofdebtpermittedbyRBIinthelast year. The restructuring window has to end on
March31,2020.GovernmenthasaskedRBItocon-
siderextendingthiswindowtillMarch31,2021.
• It is proposed to launch an app-based invoice fi-
nancing loans product to remove the problem re-
latingtodelayedpaymentsandconsequentialcash
flowsmismatchesfortheMSMEs.
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REGULATORY CHANGES
AOPAssociationofPersonsMSMEMediumsmallscaleenterprises
AYAssessmentYearNBFCNonBankingFinanceCompany
AOAssessingOfficerPEPermanentEstablishment
BOIBodyofIndividualsR&DResearch&Development
BEBudgetEstimatesRBIReserveBankofIndia
CADCurrentAccountDeficitSEBISecurityExchangeBoardofIndia
CBDTCentralBoardofDirectTaxesSEZSpecialEconomicZone
CPIConsumerPriceIndexRERevisedEstimates
CSOCentralStatisticsOrganisationSHESecondaryHigherEducationCess
DDTDividendDistributionTaxTDSTaxdeductedatsource
ECEducationCessUTsUnionTerritories
FIPBForeignInvestmentPromotionBoardWHTWithholdingTaxes
FDI Foreign Direct Investment WPI Whole sale Price Index
GDPGrossDomesticProductPFCEPrivateFinalConsumptionExpenditure
GSTGoods&ServiceTaxGFCEGovernmentFinalConsumption
HUFHinduUndividedFamilyExpenditure
GVAGrossValueAddedCroreOneCroreINRisequivalenttoINR
INRIndianRupee10Million/0.15MillionUSdollars
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GLOSSARY
Dear Valuable Client / Colleague,
Incaseyourequireanyfurtherdetailedanalysisonabovementionedproposals,pleasedogetbacktousandwe
shall be happy to provide you the same.
With Best Regards,
Team JPC
About JPC.
JPCisaprofessionalservicesfirmbasedinNoida-NationalCapitalRegionandNewDelhi,India.Wewereestab-
lishedintheyear1974withtheaimtocreatevalueforourclientsbydeliveringquality,comprehensive,timely,
practicalandinnovativeservices.Weofferacomprehensiverangeofservices,includingtaxationservices,regulato-
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teamhastherequisiteskillsandexperiencetoprovidecomplexbusiness,financial,assurance,taxandregulatory
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bledserviceswhicharedeliveredbysomeofthemosttalentedprofessionalsinthecountry.Formoreinformation
aboutJPC’sserviceofferings,visitwww.jpc.co.in
In this document, “JPC” refers to J P Chawla & Co. LLP Chartered Accountants (a limited liability partnership firm
regulated by the Institute of Chartered Accountants of India, FRN : 001875N/ N500025), formerly known as J.P.
Chawla & Company Chartered Accountants.
Disclaimer: This budget analysis and its content are provided on the basis of secondary research and
JPC does not make any representation or warranty of any kind with respect to its contents. JPC does
not warrant or represent that this budget analysis or its content are timely, complete or accurate.
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