Questions? 

Input Tax Credit means the credit of input tax on the supplies of goods or services or both received by a registered person and used in furtherance of business.

There are certain provisions under GST law mentioning specific items for which ITC is not available while discharging the output tax liability. Input tax credit for inputs, input services and capital goods other than the said ineligible ITC is called eligible ITC.

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An e-way bill is an electronic document generated on common portal evidencing movement of goods of consignment value more than INR 50,000.

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Any person who has been involved in an international and/or specified domestic transactions (if aggregate value exceeds INR 200 million) in the previous year shall submit the report in Form 3CEB through a Chartered Accountant, duly verified and certified by him, on or before the date (i.e., 30th November of every year) prescribed by the authority, furnishing all the required details.

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Applicability of Statutory Audit for different types of entities is as follows:

• Private/ Public company: Statutory audit is mandatory irrespective of turnover, profit, etc. Even if the company is incurring losses, it must get the audit done
• LLP: Statutory audit is mandatory only if it’s turnover in a financial year exceed INR 4 million or contribution exceeds INR 2.5 million

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Following types of audits are contemplated under company law:

• Statutory audit: Conducted in order to report the state of a company’s finances and accounts to the Indian government. Such audits are performed by qualified Chartered Accountants who are working as external and independent parties
• Internal audit: Conducted at the bequest of internal management in order to check the health of a company’s finances and analyze the operational efficiency of the organization. However, internal audit is also mandatory for company satisfying the prescribed threshold

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Yes, employer is required to withhold taxes on the salary income by applying an average rate and deposit the same by seventh of the following month. For the month of March, the same is required to be deposited by 30 April.

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In case where the income tax of the employee is borne by the employer, the WHT is deemed to be deducted on the date of payment of salary to the employee. Hence, any delay in depositing WHT to the government treasury may be considered as “tax deducted but not deposited”. In such a scenario, in addition to the interest and the penalty consequences, the employer may also be liable for prosecution, i.e., a rigorous imprisonment for a term of three months to years and a fine.

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The global income of such ordinary resident would become taxable in India. Additionally, such resident would be required to report moveable and immoveable assets held overseas along with any other financial interest or signing authority abroad and trusteeship in offshore trusts in his/her tax return.

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The Finance (No.2) Act 2019 has been extended to listed companies with effect from 5 July 2019. This created hardships for listed companies who had publicly announced buy-backs before 5 July 2019 but not completed it by that date. The Ordinance relaxes the applicability in respect of buy-backs by listed companies in reference of which public announcement of buyback as per regulatory norms has been made before 5 July 2019. Thus, the buy-back tax will apply in case of listed companies where public announcement of buyback is made on or after 5 July 2019.

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With effect from tax year 2019-20, domestic companies shall have an option to pay income tax at the rate of 22% plus 10% surcharge and 4% cess taking the effective tax rate (ETR) to 25.17%, subject to the condition that they will not avail specified tax exemptions or incentives under the Income Tax Act. New domestic manufacturing companies, incorporated on or after 1 October 2019 and commencing manufacturing on or before 31 March 2023, making fresh investments in manufacturing, will have an option to avail an even lower tax rate of 15% plus 10% surcharge and 4% cess taking the ETR to 17.16%

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