Section 194N Exemption for Foreign Representations: Key Highlights of the New Income-Tax Notification

-
  On 28th November 2024 , the Ministry of Finance issued Notification No. 123/2024 , bringing clarity to the applicability of Section 194N of the Income-tax Act, 1961. The notification exempts specified foreign representations from the provisions of this section, reinforcing India's commitment to international diplomatic norms and global cooperation. Effective from 1st December 2024 , this move comes after due consultation with the Reserve Bank of India (RBI) and aligns with international protocols such as the Vienna Convention and the United Nations Privileges and Immunities Act . Understanding Section 194N of the Income-tax Act Section 194N mandates tax deduction at source (TDS) on cash withdrawals exceeding ₹1 crore in a financial year . The provision applies to withdrawals from banks, co-operative banks, and post offices, aiming to curb cash usage and promote digital transactions. Fifth Proviso to Section 194N The fifth proviso grants the Central Government the authority ...
Post a Comment

Understanding the GST Waiver Scheme under Section 128A: How Taxpayers Can Benefit from Interest and Penalty Waivers

-

 

Introduction

In a significant move aimed at reducing tax disputes and providing relief to taxpayers, the GST Council has introduced a waiver scheme for interest and penalties on certain GST demand notices. This scheme, approved during the 53rd GST Council meeting, provides taxpayers with a unique opportunity to settle tax dues without incurring additional penalties or interest. This blog explores the details of this scheme, the eligibility criteria, and the procedural steps for taxpayers to take advantage of this waiver.

Overview of the Waiver Scheme: Key Details

The waiver scheme applies to demand notices or orders issued under Section 73 of the CGST Act, 2017, which covers cases that do not involve fraud, suppression, or willful misstatement. Specifically, the scheme addresses demand orders for the financial years 2017-18, 2018-19, and 2019-20.

Key Highlights:

  • Scope: The waiver covers interest and penalties on GST demands.
  • Eligibility: Only demand notices under Section 73 (non-fraudulent cases) qualify.
  • Deadline: The tax amount demanded must be paid by March 31, 2025 to benefit from the waiver.

This initiative provides a significant opportunity for taxpayers to clear pending dues with reduced financial burdens, fostering a more compliant and transparent tax environment.

Eligibility and Conditions for Availing the Waiver

To qualify for the waiver of interest and penalties:

  1. Only Section 73 Cases Apply: The demand notices must be issued under Section 73, focusing solely on cases that exclude fraudulent activities, suppression of facts, or willful misstatements.
  2. Financial Years Covered: Demands pertaining to financial years 2017-18, 2018-19, and 2019-20 are eligible.
  3. Full Payment of Tax Demand: Taxpayers must pay the full tax demand outlined in the notice or order by March 31, 2025.

These conditions are essential to secure the benefits of the waiver, as failure to meet them would lead to regular penalties and interest charges under the GST framework.

Procedural Steps under Rule 164 for Claiming the Waiver

The government has introduced Rule 164 under the CGST Rules, 2017, through Notification No. 20/2024, effective from November 1, 2024. This rule sets out the procedural guidelines for taxpayers to apply for the waiver. The application process involves the use of two new forms that will soon be available on the GST portal.

Steps for Taxpayers

  1. Application Forms (GST SPL-01 and GST SPL-02):

    • Taxpayers need to submit either Form GST SPL-01 or Form GST SPL-02 on the GST portal within three months of the scheme’s start date, aligning with the March 31, 2025 payment deadline.
    • These forms are expected to be available by the first week of January 2025, allowing taxpayers ample time to complete the application process.

  2. Making Payment for Demand Notices:

    • Taxpayers are advised to pay the tax amount specified in the demand notice, statement, or order by March 31, 2025.
    • Payment Methods:
      • For demand orders, use the “Payment Towards Demand” facility on the GST portal.
      • For notices, use Form GST DRC-03 to make the necessary payments.

  3. Linking Past Payments (if applicable):

    • If the payment has already been made via Form GST DRC-03, taxpayers must link it to the respective demand order through Form GST DRC-03A.
    • This step is crucial to ensure that the payment is recognized and linked appropriately within the GST system.

References

  • CGST Act, 2017
  • Rule 164, CGST Rules, 2017
  • Notification No. 20/2024, dated October 8, 2024
  • GST Council’s 53rd Meeting

Comments

Post a Comment

Popular posts from this blog

Classification of Accrued Interest on Short-Term Fixed and Flexi Deposits under Ind AS

-
  Introduction In the financial world, companies regularly seek to optimize cash management through short-term deposits that are highly liquid, known as "cash equivalents." However, under the Indian Accounting Standards (Ind AS) framework, the classification of accrued interest on such deposits can create debate, particularly during the audit process. This blog explores how accrued interest on short-term fixed and flexi deposits should be classified under Ind AS, with insights from recent Expert Advisory Committee (EAC) opinions and Ind AS 7, the Statement of Cash Flows. The Scenario Sonu Limited, a company specializing in infrastructure projects, classifies its investments in Flexi Deposits and Fixed Deposits with a maturity of three months or less as "cash and cash equivalents" under its current accounting policies. This classification includes any accrued interest on these deposits. However, during the audit, the auditors raised concerns, suggesting that this tre...
Read more

"The Fragrance of Love: A Love Story of Clearing the Air"

-
Image
"The Misunderstanding" T he next day, Aarav arrives at school, filled with anticipation to finally speak to Avni. To break the ice, he slips a note into her book that simply reads, "Hi, this is Aarav." When Avni reads the note, she looks up and catches Aarav's eye, but she quickly looks away, leaving Aarav feeling rejected. Disheartened, Aarav couldn't believe that he had mustered the courage to write to Avni, only to be ignored. Little did he know that Avni had been preoccupied with schoolwork and had not even noticed the note. "An Unforgettable Encounter in the School Corrido r" During their lunch break, Aarav waits for Avni in the corridor outside their classroom. As Avni walks back from the restroom, she spots Aarav standing in front of the door, waiting for her. Their eyes meet, and at that moment, they both feel a spark. Aarav, with tousled dark hair, was dressed in his best clothes. He wore a sharp navy blue suit with a crisp white shirt a...
Read more

"Spreading Cheer: A Secret Santa Celebration"?

-
Image
Celebrating the Holidays with a Secret Santa Game The holiday season is here, and everyone is excited to celebrate with their loved ones. Our group of friends came up with the idea of playing "Secret Santa" on our way back from our trip to Wayanad. We were all eager to continue the fun and laughter that we experienced during our trip. The Return Journey  Preparing for the Game Our friends Swetha and Keerthana organized the game and wrote down the names of all the people in our group, including Venkat, Pavan, Chetna, Vedvyas, Jay Ganesh, Lakshmi Priya, Swetha, Vignesh, Sushmita, Keerthana, and Varsha. We each picked a chit without revealing the name on it to anyone else. Unfortunately, Keerthana and Vignesh were not with us when we picked the chits, as they had to leave for Mangalore for their audit. However, Swetha made sure to safely hand over the chits to them later. Introducing Some Amazing Personalities - Get to Know Them! " Meet Venkat (myself), a friendly and spon...
Read more