Key Takeways from VCM organised by Gurugram Branch of NIRC, ICAI on "Recent Changes in TDS/TCS, Tax Audit Report & E-Filing Portal"
Team TaxAaram is glad to share the link of the recently held VCM by Gurugram Branch of NIRC on 'Recent Changes in TDS/TCS provisions, E-Filing Portal & Tax Audit Report', wherein our Founder Director Sh. Mayank Mohanka, FCA, were the Guest Speaker.
The link of the said VCM is https://www.youtube.com/watch?v=iRyAor654mc
The link of the Papers presented by Sh. Mayank Mohanka, FCA is https://icaigurugram.org/public/assets/images/ppts/ppt_0_1624275829.pdf
Key Takeways from this VCM
1. A Buyer purchasing any goods in value exceeding Rs. 50,00,000/- in a financial year & having his turnover from business or profession in excess of Rs. 10 crores, in immediately preceding financial year, from a resident seller, is liable to deduct TDS u/s 194Q @0.1% on such purchase consideration in excess of Rs 50 lakhs, on or after 1.7.2021.
2. TDS liability u/s 194Q will arise on all purchases booked or paid on or after 1.7 2021. Purchases booked or paid between 1.4.2021 till 30.6.2021 will be considered for determining the threshold purchase limit of Rs. 50,00,000/- in FY 2021-22.
3. In case of Non furnishing of PAN by Seller, TDS Rate will be 5% u/s 206AA.
4. The liability of the buyer, to deduct TDS u/s 194Q will prevail over the liability of the seller to collect TCS u/s 206C(1H) on all purchase/sale transactions entered after 1.7.2021.
5. Another newly inserted section 206AB mandates deduction of TDS at higher rate of twice the applicable rate or 5% whichever is higher, in case of specified persons.
6. Specified person for section 206AB means a deductee who has not filed his/her ITR for the immediately two preceding financial years, for which time period for original return filing u/s 139(1) has expired, & the aggregate annual amount of TDS & TCS in his/her case, exceeds Rs. 50,000, in each of the two preceding financial years.
7. For any TDS to be deducted in current FY 2021-22, the two relevant previous financial years to be checked are FY 2018-19 & 2019-20, uptill the due date of filing ITR for FY 2020-21 i.e. 30.9.2021 for non auditable cases, 30.11.2021 for auditable cases & 31.12.2021 for transfer pricing auditable cases.
8. After the expiry of these ITR Filing due dates, the two relevant previous financial years for TDS deducted in FY 2021-22, will become FY 2019-20 & FY 2020-21.
9. If the deductee has not furnished its PAN & has also not filed its ITR in immediately 2 preceding financial years, then higher of the TDS Rate as per section 206AA or 206AB will apply.
10. All changes in Tax Audit Report for AY 2021-22 & the practical demonstration of Non working features of new e-Filing portal.
Thanks & Best Regards