September 2021

Newsletter - September 2021

The world continues to heal and rebound from the ravages of the pandemic, and we have a sense of normalcy that has returned as even the Indian Prime Minister has made an international trip to the USA this month!

The Indian economy and the larger corporates seem to be bouncing back from the troughs of the pandemic very well. The GST collection and direct tax collection is a testament to this strength. The stock market is at new highs, we have seen a record number of ‘unicorns’ in the start up world and we have even seen a significant uptick in the property market with number of transactions and value of properties going up. While this is a great outcome for equity holders, a handful of startup entrepreneurs and developers, the inequality within the country has just increased materially over the last year. The unfortunate reality is that a lot of under privileged kids who might have leveraged education to take their families out of poverty, are facing a challenge as schools have still not opened fully and a number of these kids may not return to school. 

China has taken a very stern stand against inequality and has been talking about ‘common prosperity’ whereby they will reduce income inequality and rein in the billionaires by regulating various industries including education and real estate. China’s largest property developer, Evergrande, is facing imminent bankruptcy and property prices in China have softened due to the strict financial norms set out by the government for developers. The Chinese government was aware of the problems that would ensue with their regulations and while a lot of people are fearing a ‘Lehman’ moment starting from China, there is a good chance that China may be able to manage the fallout from Evergrande’s collapse. 

Since the beginning of the pandemic, as western countries have looked to diversify away from China in manufacturing and now with the stern actions being taken by the Chinese government across the tech sector, it seems that our ‘Make In India’ and PLI schemes will attract a lot of foreign capital. We all need to keep our eyes and ears open and look out for the opportunities as they come our way while the global power balances are reset.


INDIRECT TAX (GST)
GST RETURN ACTION POINTS FOR SEPTEMBER 2021
 
September is considered to be a crucial month for any Financial Year as it includes major compliances under the Goods & Services Act. Here, we provide you with an article contains GST Return Action Points for September 2021 it includes the list of action points and its brief explanation which should be performed by a registered person under GST.

 

To know more in detail, please click here.
 
DEMAND CANNOT BE RAISED FOR REVERSAL OF INPUT TAX CREDIT WHEN INVESTIGATION WAS UNDERWAY AND INCOMPLETE
 
Imagine, you pay tax and penalty to the government for some misdeeds for which investigation is initiated and the Hon'ble High Court asks the government to refund the whole amount back to you along with interest in absence of concluded investigation.
 
A little hard to digest right?
 
The Telangana High Court has, in a recent judgement, done the same since the course of action followed by the Revenue Department was not tenable under the law and the department was asked to follow the due procedure to demand the liability.
 
To know more, please click here.
 
DIRECT TAX 
EXTENSION OF VARIOUS DUE DATES UNDER INCOME TAX ACT,1961
 
Considering the difficulties faced by taxpayers and other stakeholders, CBDT vide circular no. 17 of 2021 dated 09-09-2021 has extended the due dates for filing ITRs and various other reports of audit for A.Y. 2020-21. 
 
To know more about the extended due dates please click here