MM TAX CLUB

This is in continuation of our Announcement dated 1st April, 2023 regarding updation of Member’s Profile at Self Service Portal with GSTIN of CA Firm/LLP, in which such member is a Proprietor/Individual, Partner or a Paid Assistant, to enable the system to capture the said information in the tax invoice.

Based on the requests received from Members, the last date to update the profile has been extended till 23rd April 2023.

Members may update their profile latest by 23rd April, 2023. It may be noted that only one name of the CA firm/LLP and its GSTIN can be included in the tax invoice.

Any updation made after the last date will not be considered in the tax invoice for the financial year 2023-24.

Release of Direct Tax Statistics

The Central Board of Direct Taxes (CBDT) has been releasing key statistics relating to Direct Tax collections and administration in public domain from time to time. In continuation of its efforts to place more and more information in public domain, the CBDT has further released Time-Series data as updated upto F.Y. 2021-22.

The key highlights of some of these statistics are as under:

(i)        Net Direct Tax Collections have increased by 121.18% from Rs. 6,38,596 crore in F.Y. 2013-14 to Rs. 14,12,422 crore in F.Y. 2021-22.

(ii)        Net Direct Tax Collections have increased by 160.17% from Rs. 6,38,596 crore in F.Y. 2013-14 to Rs. 16,61,428 crore (provisional) in F.Y. 2022-23.

(iii)       Gross Direct Tax Collections have increased by over 126.73% in F.Y. 2021-22, reaching a figure of Rs. 16,36,081 crore from Gross Direct Tax Collections of Rs. 7,21,604 crore in F.Y. 2013-14.

(iv)       Gross Direct Tax Collections have increased by over 172.83% in F.Y. 2022-23, reaching a figure of Rs. 19,68,780 crore (provisional) from Gross Direct Tax Collections of Rs. 7,21,604 crore in F.Y. 2013-14.

(v)        Direct Tax Buoyancy at 2.52 in F.Y. 2021-22 is the highest Direct Tax Buoyancy recorded over last 15 years.

(vi)       Direct Tax to GDP ratio has increased from 5.62% in F.Y. 2013-14 to 5.97% in F.Y. 2021-22.

(vii)      The Cost of collection has decreased from 0.57% of total collection in the F.Y. 2013-14 to 0.53% of total collection in the F.Y. 2021-22.

The availability of the Time-Series data in public domain will be useful for  academicians, research scholars, economists and the public at large in studying long-term trends of various indices of the effectiveness and efficiency of Direct Tax administration in India. This time series data is available at www.incometaxindia.gov.in.

As per recent update from GSTN dated 13^th April 2023, restriction of 7 days imposed on reporting Invoices on the IRP Portal

1. It is to inform you that it has been decided by the Government to impose a time limit on reporting old invoices on the e-invoice IRP portals for taxpayers with AATO greater than or equal to 100 crores.

2. To ensure timely compliance, taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting.

3. Please note that this restriction will apply to the all document types for which IRN is to be generated. Thus, once issued, the credit / Debit note will also have to be reported within 7 days of issue.

4. For example, if an invoice has a date of April 1, 2023, it cannot be reported after April 8, 2023. The validation system built into the invoice registration portal will disallow the user from reporting the invoice after the 7-day window. Hence, it is essential for taxpayers to ensure that they report the invoice within the 7-day window provided by the new time limit.

5. It is further to clarify that there will be no such reporting restriction on taxpayers with AATO less than 100 crores, as of now.

6. In order to provide sufficient time for taxpayers to comply with this requirement, which may require changes to your systems, we propose to implement it from 01.05.2023 onwards.

The Punjab Vigilance Bureau (VB) arrested a chartered accountant (CA) Ankush Sareen, a resident of Ludhiana, for taking a bribe of Rs 26 lakh from a man in the name of income tax officers based in Chandigarh.

A VB spokesperson said a case has been registered against Sareen, who practises privately, following an investigation into an online complaint lodged at the chief minister’s anti-corruption action line.

He said complainant Parminder Singh Sidhu, a resident of Malsian village, Ludhiana district, has alleged that Sareen had taken Rs 26 lakh in two instalments for giving bribe to the income tax officers in lieu of settlement of a notice served to his relatives residing in USA regarding an income tax return.

The complainant alleged that he had handed over Rs 25 lakh cash to the CA at his residence on January 15 and made a video of the act. After this, CA Ankush Sareen had obtained Rs 1 lakh more for “junior officers of income tax department” from the complainant on January 26.

During an inquiry from the I-T department, the complainant came to know that said notice of I-T department had not been replied to and he realised that said CA had taken a bribe fraudulently in the name of income tax officers by threatening him about heavy penalty. When he asked the CA to return his money, he didn’t do so.

The spokesperson said the VB unit of Ludhiana range investigated the allegations levelled in the complaint and registered a corruption case at VB police station Ludhiana against the CA after finding him guilty for taking bribe. Further investigation in this case was under progress, he said.