Checklist of Compliances to be completed before 31st December 2020

Last Updated On: Dec. 24, 2020, 10:32 p.m.
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15 LEGAL COMPLIANCES TO BE COMPLETED BEFORE 31ST DECEMBER, 2020

Adhering to legal compliances proposed by the Indian government is mandatory for taxpayers in India. Non-compliance with respective due dates as well as related rules may result in imposing heavy penalties by the government of India. Compliances have been difficult especially in the COVID period where importance for foremost given to human health and safety.

Given below are 15 compliances under GST, Income Tax, LLP Act and Companies Act which needs to be fulfilled before the last date of the year-end i.e., 31-12-2020 to avoid late fees and penalties. This article will aid in providing information on all the required forms to be filed, thus making your life a little bit easier.

 

1. Filing of GST Annual Return

GSTR 9 is an annual return to be filed by all registered taxpayers under GST irrespective of the turnover of an entity. The return consists of details such as inward/outward supplies, taxes paid, refund claimed, demand raised and ITC availed by the taxpayer. All registered taxpayers are required to file GSTR-9 except:

  • Casual taxpayers
  • Input Service Distributors
  • Non-resident taxpayers
  • Taxpayers deducting/collecting tax at source under Section 51 or Section 52
  • Composition taxpayers have to file GSTR-9A, and E-commerce operators have to file GSTR-9B. It is due to be filed by 31 December of the year following the particular financial year.
  • Therefore, the due date of GSTR 9, 9A & 9B for FY 2018-19 is 31st December 2020

 

2.Tax Audit Due Date for FY 2019-20

Tax Audit refers to the independent verification of the books of accounts of the assessee to form an opinion on the matters related to taxation compliances carried out by the assessee.

While preparing the books of accounts of the business or profession for the purpose of income tax filing, the assessee has to comply with the provisions of the Income-tax Act, 1961.

A tax audit can be conducted by a Chartered Accountant who holds the certificate of practice and is in full-time practice.

The date for furnishing of various audit reports including tax audit report and report in respect of international/specified domestic transaction is extended to 31st December 2020.

 

3. GST Audit

  • Businesses whose annual turnover has exceeded Rs 5 crores in a Financial Year 2018-19 are required to get their accounts audited by either a practicing Chartered Accountant or Cost Accountant.
  • GSTR 9C is an annual audit form for all the dealers having a turnover of more than 5 crores in a financial year.
  • Along with the GSTR 9C audit form, the taxpayer will also have to fill up the reconciliation statement along with the certification of an audit.
  • The last date of the GST audit and Filing GSTR 9C is 31st December 2020.

 

4. Income Tax Return (ITR) Due Date for FY 2019-20

An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about a tax refund or tax liability. The due date for furnishing of ITR for the taxpayers (including their partners) who are required to get their accounts audited is extended to 31st January 2021.

The due date for furnishing of ITR for the taxpayers who are required to furnish a report in respect of international/specified domestic transactions is extended to 31st January 2021.

The due date for furnishing of ITR for the other taxpayers is extended to 31st December 2020.

 

5. Furnishing Form 3CEAD

Furnishing of a report in Form No. 3CEAD for a reporting accounting year (assuming reporting accounting year is January 1, 2019 to December 31, 2019) by a constituent entity, resident in India, in respect of the international group of which it is a constituent if the parent entity is not obliged to file a report under section 286(2) or the parent entity is resident of a country with which India does not have an agreement for the exchange of the report, etc is required to be done by 30th December 2020

 

6. Furnishing Form 3CEB

  • Under transfer pricing regulations, companies in India are expected to file Form 3CEB if the entity has entered into any international transaction with an associated enterprise or some specified domestic transaction.
  • This is filed alongside Form 3CD under Section 92A to 92F of the Income Tax Act, 1961.
  • Form 3CD is a detailed statement of particulars related to various aspects of the business and transactions undertaken.
  • The last date for submitting Form 3CEB is 31st December 2020.

 

7. Furnishing challan-cum-statement in respect of TDS u/s 194IB

  • According to Section 194IB, it is mandatory for any person, i.e. individuals/HUF not liable to audit u/s 44AB, to deduct taxes for rent paid to a resident, exceeding Rs 50,000 per month.
  • Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB for the month of November, 2020 is 30th December 2020

 

8. Furnishing challan-cum-statement in respect of TDS u/s 194IA

Section 194IA of the Income Tax Act, requires a buyer to deduct tax at the rate of 1% of the sale consideration if the value of the transaction is Rs 50 lakhs or more. This section covers residential property, commercial property, as well as land. However, transactions pertaining to the purchase of agricultural land, are not covered under this provision.

The due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA for the month of November 2020 is 30th December 2020

 

9. Furnishing challan-cum-statement in respect of TDS u/s 194M

An individual and/or Hindu undivided family (HUF) has to deduct tax at source under Section 194M.

Such individuals and HUF must not be required to get their books of accounts audited. Books of Accounts are required to be audited if total turnover or receipts of a business exceed Rs 1 crore or where receipts of a profession exceed Rs 50 lakh. 

The due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194M for the month of November, 2020 is 30th December 2020

 

10. Annual General Meeting (AGM):

The Annual General Meeting (AGM) is an important governance process for the members of an organization.

It can ensure transparency, provide updates and give members an opportunity to vote on a range of matters.

According to Section 96 of the Companies Act, 2013, every company other than a One Person Company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting.

Not more than 15 months shall elapse between the date of one annual general meeting of a company and that the next.

The last date of the Annual General Meeting of the companies under the Companies Act, 2013 is 31st December 2020.

 

11. Furnishing Form DIR 3

The DIR–3 KYC is used to ensure that correct particulars of an individual holding Director identification number (DIN) is available with the Ministry of Corporate Affairs. Any person who has been allotted “Director Identification Number (DIN/DPIN)” needs to file this form to update KYC details in the system [E- FORM DIR-3 KYC]

 

12. Vivad se Vishwas scheme

This is a direct tax scheme announced in Budget 2020, for settling tax disputes between individuals and the income tax department.

Earlier, the scheme offered a complete waiver on interest and penalty to the taxpayers with a full and final settlement of the dispute if the scheme was availed by 31st December, 2020.

An individual opting for settlement after 31st December 2020 was required to pay an additional 10% penalty on the disputed tax amount.

However, now till December 31, 2020, you do not have to pay any penalty.

 

13. Companies Fresh Start Scheme, 2020

The Ministry of Corporate Affairs (MCA), in an attempt to ease matters for the companies, introduced a new scheme known as the Companies Fresh Start Scheme, 2020 (CFSS).

  • According to the provisions of the Companies Act, 2013, all companies are required to follow statutory compliances annually.
  • These include the Annual Returns, Financial Statements and all the other necessary forms, documents and statements that are specified, within that particular time frame.
  • Non – compliance of the same results in the imposition of penalties and fines.
  • A company that fails to adhere to the compliances is called a defaulting company.
  • Such companies can settle their default by paying only the normal fees as prescribed for all filings with the MCA 21 registry.
  • Also, will get immunity against prosecution and proceedings for imposing a penalty.
  • The last date for the Companies Fresh Start Scheme, 2020 is 31st December 2020.

 

14. Annual Return of Limited Liability Partnership (LLP)

Limited Liability Partnerships registered under the Limited Liability Act, 2008 have to annually file two forms Form 11 and Form 8. Statement of Account and Solvency is submitted in Form LLP 8. Annual Return of Limited Liability Partnership (LLP) has to be filed in Form LLP-11. The last date for LLP-11 is 31st dec 2020.

 

15. LLP Settlement Scheme

  • LLP Settlement Scheme 2020 is a one-time relaxation provided to LLP’s which have defaulted in filing the statutory documents within the required due dates.
  • The LLP’s which opt for this scheme shall not be required to pay additional fees. The LLP Settlement Scheme 2020 is for the defaulting LLPs for the filing of belated documents that were due for filing till the 31st of August, 2020.
  • No additional fees and no prosecution by the Registrar for those defaulting LLPs who complete the filing of all the belated documents and dues by the 31st December, 2020.
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