The COVID-19 pandemic has a negative impact all over the world and sent economies spinning. Initially, it entirely affected China; but, its effects are presently felt most over the world, with many countries in internment, together with India too on its web. The Indian government is attempting its best to support the business organizations and has updated the policies for constant.
The deadline to submit the GST audit report and General Anti-Avoidance Rules (GAAR) has been extended. In revenue enhancement, GST Audit Report deferred until March 31, 2021.
The tax department of India deferred the necessity for the firms to incorporate the details of products and Services Tax (GST audit report ) and GAAR in their tax Audit Report, respectively, for the third time in an exceeding row.
1. Whether shall firms shall submit GST details in Income Tax Audit Report?
Firms are not needed to submit the main points of the GST audit report and GAAR in their tax Audit Report until March 31, 2021. The Central Board of Direct Taxes (CBDT) has stated this in its order announced recently.
Aforementioned, the CBDT has received many memoranda relating to the issues during this regard.
In an analysis of the queries rising due to the COVID-19 pandemic, the CBDT has decided to exempt the tax review report from the incorporation of the first objects of the GST audit report and GAAR (General Anti-Avoidance Rules) latest by March 31, 2021.
2. What about the Large taxpayers?
All large scale business organizations having a GST registration have to file the income tax audit report, given that:-
- Their turnover is above INR 1 crore,
- Their gross receipts of INR 2 crore and over INR 50 lakhs.
3. What relief is there for the GST taxpayers?
The CBDT has stated-
- After examining the case keeping visible true arising across the country from the Covid-19 epidemic, it is decided that the need for coverage u/s 30C and 44 of the tax audit report is to be extended until March 2021.
- This action is meant to restrict firms from presenting their deals by alternative countries to evade tax amounts. These changes were to be enforced from 20th August 2018.
- The date of implementation of it continued from time to time.
- Currently, it’s been extended until March 31, 2021.
- The reporting required in the income tax audit report is on hold for one year.
- Nevertheless, the taxpayers are required to give all other necessary details in the income tax return filing.
Further updates on the orders of the income tax department of India but before that stay home and stay safe.
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