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E – NEWS Letter October 2019 Jodhpur Branch of CIRC of ICAI, The Institute of Chartered Accountants of India

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Message from Desk of Chairman

Dear Professional Colleagues,

“Strength does not come from winning. Your struggles develop your strengths. When

you go through hardships and decide not to surrender, that is strength.”

- Mahatma Gandhi

Revered as father of our nation, Gandhi Ji, through his nonviolence ideology, shook the

world and proved that great things can be accomplished through simple tenets of truth

and nonviolence. Entire country is going to celebrate 150th birth anniversary of Shri

Mahatma Gandhi and various activities are planned across the country and ICAI would

also be conducting many programmes following the ideology of him.

September month was a bit hectic for members as most of us were busy in Tax Audit.

We at Jodhpur branch started the month by celebrating “Teacher’s Day – My Teacher

My Torch Bearer” on 5th September. It was a wonderful programme where

approximately 100 students participated and made the programme memorable one.

Essay writing and slogan competition were organised on the occasion and amazing

participation we got to see from students. I would like to thank CA Rakesh Ji Mehta for

sharing his time and deliver Motivational speech in the programme.

Mid of the month, we organised a two days study circle on “Tax Audit ki Paathshala”. I

would thank CA Gautam Ji Baid for being speaker in the programme. We witnessed a

good gathering of members in the programme again. Members got to learn many

relevant things which would definitely help them in completing their professional work.

I hope to get more blessings from senior members and support from my professional

colleagues to keep on organising more events in the upcoming months.

ICAI has extended the last date of Membership/COP fee for the year 2019-20 up to 30th

November, 2019. I would further like to wish the members and their families Navratri,

Dussehra and a very happy and prosperous Deepawali.

Best Regards,

CA. Ritesh Bhootra

Chairman

Jodhpur Branch of CIRC of ICAI



Message from Desk of Secretary

Respected professional colleagues,

In the month of September, 19 we celebrated Teacher’s Day on 05/09/2019. We organized two-day study circle on “Tax Audit ki Pathshala”. During the month we arranged live webcasts on various topics. I would like to thanks CA Gautam Baidh for taking study circle and devoting his precious time.

In the month of October we are planning to organize seminar on Artificial Intelligence, Advanced Excel as a tools and many more topics.

We at the branch are always looking forward to organize innovative programs for members and students. Do feel free to contact me or any of the managing committee members if you wish to suggest any session or program for the benefit of all members.

I would like to take this opportunity to thanks all authors and writers for their efforts and expertise that they have contributed, without which it would not be possible to maintain the high standards of NEWS Letter.

Before I conclude, I extend my wishes to all for the festival of Navratri and Deepawali,

which falls in this month.

Regards,

CA Dhaval Kothari

Secretary




Roll of Honour



Analysis of section 194N of Income Tax Act, 1961

after Notification No 70/2019 dated 20.09.2019

CA Prashant Kothari

[email protected]

Brief Introduction of Section 194N: - A new section 194N has been inserted in Income

Tax Act which defines that TDS will be levied at the rate of 2% on cash withdrawal made

from the account with effect from 01.09.2019.

Every Person, being a banking company to which the Banking Regulation Act, 1949

applies or a co operative society engaged in carrying on the business of banking or a

post office who is responsible for paying any sum in cash, in excess of one Crore rupee

during the previous year, to any person from one or more accounts maintained by the

recipient with it shall, at the time of such payment, deducts an amount equal to two

percent of sum exceeding one Crore rupees as income tax.

This provision is not applicable on

1. The Government,

2. any banking company or co operative society engaged in carrying on the

business of banking or a post office

3. any business correspondent of a banking company or co-operative society

engaged in carrying on the business of banking, in accordance with the

guidelines issued in this regard by the Reserve Bank of India under the Reserve

Bank of India Act, 1934

4. any white label automated teller machine operator of a banking company or co-

operative society engaged in carrying on the business of banking, in accordance

with the authorization issued by the Reserve Bank of India under the Payment

and Settlement Systems Act, 2007 (51 of 2007);

5. Such other person or class of persons, which the Central Government may, by

notification in the Official Gazette, specify in consultation with the Reserve Bank

of India.

Notification: -

The Central Government after consultation with RBI used their power conferred by

clause (v) of the proviso to section 194N of the Income Tax Act and specifies the

commission agent or trader, operating under Agriculture Produce Market Committee

(APMC), and registered under any Law relating to Agriculture Produce Market of the

concerned State, who has intimated to the banking company or co-operative society or

post office his account number through which he wishes to withdraw cash in excess of

mailto:[email protected]



Rupees One Crore in the previous year and has certified to banking company or co-

operative society or post office that the withdrawal of cash from the account in

excess of Rupees One Crore during the previous year is for the purpose of making

payments to the farmers on account of purchase of agriculture produce and the

banking company or co-operative society or post office has ensured that the PAN

quoted is correct and the commission agent or trader is registered with the APMC, and

for this purpose necessary evidence have been collected and place on record.

[Notification No. 70/2019/F. No. 370142/12/2019-TPL (Part-1)]

Analysis of Notification: -

1. Person should be commission agent or trader, operating under APMC

2. Intimate to payer (Bank etc) he wishes to withdraw cash in excess of Rupees One

Crore in the previous year

3. Provide his bank account no from which he wants to withdraw cash

4. Copy of Pan Card

5. Copy of Registration Certificate with APMC

6. Certificate mentioning that cash withdrawal is for the purpose of making

payment to farmers on account of agriculture produce.

7. Payer will verify and ensured that PAN and Registration certificate provided to

them is correct.

After completion of above, payer will not deduct tax.

Draft/Sample Format of Certificate

To,

The Branch Manager,

Name of Bank,

Branch and City

Sub: - Non-Deduction of TDS U/s 194N

Ref: - Notification No. 70/2019/F. No. 370142/12/2019-TPL (Part-1) dated

20.09.219



Sir/Madam,

With reference to above, we are maintaining bank account with your bank and we

are withdrawing the cash balance from your bank from our account number ________

during the previous year commencing from 01-04-2019 to 31-03-2020 for the

purpose of making payment to farmers on account of purchase of agriculture

produce.

Our Permanent Account Number (PAN) is ____________

We are commission agent/Trader operating under Agriculture Produce Marketing

Committee (APMC) and registered under the law relating to Agriculture Produce

Market of our State and our Registration Number under APMC is _________________

The copy of our PAN and copy of our Registration Certificate under APMC is

attached with this letter.

We further certify that the cash withdrawal from this account shall be used for the

purpose of making payment to farmers on account of purchase of agriculture

produce. So, you are requested to not deducting TDS U/s 194N of Income Tax Act,

1961.

Thanking You,

For: -xxxxxxxx

(Authorized Signatory)

Enclosure: - 1. Copy of PAN

2. Copy of Registration Certificate under APMC

(It is a sample format may be changed accordingly)



37th GST COUNCIL MEETING

CA Komal Tawari

[email protected]

In GST Council Meeting held on 20th September 2019 at Goa various decisions were

taken as follows:

1. Relaxation in filing of Annual Return

a. For Composition Taxpayers: Waived the requirement of filing of GSTR 9A for FY

2017-2018 & FY 2018-2019

b. For taxpayers who have aggregate turnover upto Rs. 2Crore: filing of GSTR 9

made optional for FY 2017-2018 & FY 2018-2019

Note: no waiver for filing of GSTR 9C

2. Annual Return & Reconciliation Statement Forms to be Simplified.

3. New Return System to be introduced from April 2020 instead of October 2019.

4. Integrated Refund System with Single Authority to be introduced.

5. Extension of last date for filing of appeal against orders of Appellate Authority

before GST. Appellate Tribunal as they are not yet functional.

6. Along with linking of Aadhar with GST Registration, Aadhar can be made mandatory

for claiming refunds.

7. In order to take decision against fake invoices & fraudulent refunds, reasonable

restrictions will be prescribed on passing of credit.

8. Amendments to be made in CGST Act, IGST Act & SGST Acts for creation of Union

Territories of Jammu & Kashmir & Ladakh.

9. Circulars to be issued for

a. Procedure to claim refund in Form GST RFD-01A

b. Specifying eligibility for filing refund application in Form GST RFD-01A for a period

and category under which a NIL refund application has already been filed

c. Clarification regarding supply of ITeS being made on own account or as an

intermediary

10. GST Rate Reduction & Exemptions

a. In Hotel Accomodation Services:

If transaction value per unit(Rs) per day is

- Rs 1000 & less: GST Rate Nil

- Rs 1001 to Rs 7500: GST Rate 12%

- Rs 7501 & above: GST Rate 18%

b. In Outdoor Catering Services other than premises having daily tariff of unit of

accommodation of Rs 7501 & above from 18% with ITC to 5% without ITC

c. On supply of Jobwork Services for diamonds from 5 to 1.5%




d. On supply of machine job work except jobwork for bus body building from 18% to

12%

e. On parts of slide fasteners from 18% to 12%

f. On Marine Fuel from 18% to 5%

g. On Wet Grinders from 12% to 5%

h. On cut & polished semi-precious stones 3% to 0.25%

i. Dried Tamarind and Plates & Cups made up of leaves/flowers/bark are made nil

rated

j. Exemptions for

- import of specific defense goods not manufactured indigenously,

- Supply of goods to FIFA & other specified persons for organizing Under 17 Women’s

Football World Cup in India

- Supply of goods & services to Food Agriculture Organization for specified projects in

India

11. Compensation Cess of 12% added on Caffeinated Beverages and GST Rate

increased from 28%

12. Aerated Drink Manufacturers to be excluded from Composition Scheme.

13. Restriction on refund of Compensation Cess on Tobacco Products (in case of

inverted duty structure)

Note: The decisions taken will come in force through Gazette notifications/circulars.



In NEWS



Events Gallery



Discount Offered to Members

Sr No Vendor Discount Offer Validity

1. Mango Hotel

20% on Ala Carte

Menu

(Exclude Combo Deal)

Till 31st

March

2020

2. Chandara

Mangal Hospital

20% on OPD, IPD, LAB

Testing & All Other

Charges

3. Medipulse

Hospital

10% on OPD,

Diagnostic, Daycare,

IPD Bills

4. Park Boutique

20% Only on Ala Carte

Menu (Exclude

Combo Meal)

Till 31st

March

2020



Published By:

Editorial Board


E-32, Kalpatru Shopping Center, Shastri Nagar, Jodhpur (Raj) 342003

Website: www.icaijodhpur.org

Email: [email protected]

Phone: 0291-277102

http://www.icaijodhpur.org/


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