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Understanding the Force Majeure Clause – IndusLaw

The businesses have been impacted by the lockdown due to the outbreak of COVID-19, raising the issue of performance of the contracts for them. They are considering invoking the ‘Force Majeure’ clause in the contracts to seek relief in these tough times. IndusLaw’s Corporate Law Team helps us understand the Force Majeure clause and the questions around it, in association with LawWiser

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Press Note No. 3 (2020 series)- FDI policy amendment

Lawwiser in conversation with Rudra Kumar Pandey, Partner, Shardul Amarchand Mangaldas understanding the highlights and impact of the recently issued Press Note 3 (2020 series) by the Government of India, which amends the Foreign Direct Investment Policy of 2017 (FDI Policy).

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E-invoicing and GST Returns | Legal Update

With the current environment on GST compliance, proposed changes, the impact of the present process and other aspects.

here’s a bite on E-Invoicing and GST returns.

E-INVOICING AND GST RETURNS

The terms “E-Invoicing” and “GST” are often confused.

As both terms are related to electronic invoicing.

Electronic Invoicing

Electronic invoicing is electronic billing software that allows you to file and issue returns, receipts, etc., electronically through your company’s website.

Invoicing, billing, collecting, and processing of payments by electronic means are known as e-commerce. E-commerce has developed into an essential part of business in India.

With the growth of E-Invoicing and other online billing software packages, companies can manage their invoicing, billing, collecting and processing payments across the country and globe from their office or home computer.

E-Invoicing and other online billing solutions allow your customers to obtain an invoice instantly, print it out right away, and send you a check in the mail.

In the past, e-commerce was done only with software packages that were difficult to use, costly, and limited in function.

Today, many excellent, affordable e-invoicing and e-payment systems have all of the functionality needed for an online business.

You can also take advantage of built-in scheduling features that will automatically schedule billings for multiple billable items simultaneously.

An easy-to-use shopping cart option lets you maintain inventory, calculate sales tax, and change the layout as needed.

There are also other essential uses for customizing your e-invoice template. For instance, some companies choose to have their company logo or web address placed at the bottom of each page in an e-commerce solution.

It makes it easy to remember and makes your site more user-friendly. Some small businesses also prefer to place the names and logos of their key personnel in these templates.

You must work with an e-commerce and e-invoicing solution provider that has been around for a while and has built up substantial experience in handling both custom and business e-commerce and e-invoicing systems.

You should make sure that your e-commerce and e-invoicing solution provider has affordable monthly fees for after-sales support as well as monthly fees for setup and start-up.

INSIGHTS ABOUT GST RETURNS

What is a GST return?

A GST return is a document that certifies that all of the purchases you made in a certain province were made in the state where you reside. In other words, it is an identification card for all of your transactions.

There are several documents that you will need when filing your GST return. These documents include your statement of income, a list of all purchases, receipts or invoices for all transactions, and details about your family and dependents.

On the other hand, a GST Annual return is a type of GST return filed by the taxpayers once a year. The term GST Annual return is also known as GSTR 9.

The primary purpose of GST Annual return is to submit an annual compilation of outward supplies, inward supplies, tax liability and input tax credit availed during a financial year.

There have been some changes proposed in the compliance, such changes are-

  1. Authenticated data fed to GSTN for GST returns and E- waybill by IRP.
  2. Transactions can be amended in ANX 1/1 A
  3. Matched transactions eligible for credit computation and RET1 is also populated.
Conclusion

There is no single doubt how essential “E-invoicing and GST returns have become recently, and now after the amendments, we can expect some growth in the filing as ease has been served due to “real-time reporting of transactions for authentication”.

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Amendments in Finance Bill 2020

Amidst the COVID-19 outbreak and lockdown in the country, the Finance Bill 2020 ( Bill) introduced vide Union Budget 2020-21 was passed by both Houses of Parliament, with certain amendments. Watch the quick guide on the amendments to the Bill. Read this blog to fully understand finance bill 2020

AMENDMENTS IN FINANCE BILL, 2020

There have been notable changes in 2020 about different acts, rules and regulations. Similarly, there have been amendments in finance bill 2020, which are necessary to discuss.

Before that, let us first know what the finance act all about is?

What is Finance Act?

A finance act is fiscal legislation regulated by the parliament, destined to affect the central government’s proposals. It contains provisions related to income taxes, customs etc.

Finance Bill 2020

The Lok Sabha (the lower house of India’s bicameral legislature) passed the finance bill on 23rd march 2020, including some of the amendments in the finance bill, which will be discussed in this article. The Rajya Sabha (upper house) also further passed the finance bill 2020.

It recognized its assent on the bill on 27th March 2020, with that the amendments in finance bill provisions took effect on 1st April 2020.

Finance Bill Amendments

Finance bill amendments in 2020 have vitally focused on the tax residency rules for the NR’s and emphasized the corporate tax regime.

The amendments in the finance bill are thereby discussed below-

 

  1. Insertion of Sec 6 (1) (a)

There have been some amendments to clause 1 (a) of section 6, which have put a threshold limit for further deciding the status of RNOR.

Only in those cases where the total income of visiting individuals during the financial year from sources other than foreign sources exceeds INR 15 lakhs.

‘Income from other sources” means income from foreign activities, which means income accruing outside India

  1. Reduction in period for RNOR (Resident but Not Ordinarily Resident)

There have been two categories listed for RNOR purposes:-

  1. Indian citizens/ persons of Indian origin who meet the threshold and have been in India for more than 120 days but less than 182 days i.e.
  2. Indian citizens mentioned in Explanation 1 (A) to section 6 (1).
  3. Amendment of Sec 115 A

This is one of the vital amendments from the amendment in finance bill 2020, which emphasizes the exemption for furnishing the tax returns for those deriving their income from foreign by way of FTS.

  1. Changes to the corporate tax regime
  2. Tax on income of domestic companies

The government has proposed amendments in Section 115 BAA, which focuses on the inter-corporate dividends to the domestic Companies opting to pay tax @ 22%, without claiming any deductions as per this section.

  1. Tax on income of new manufacturing domestic companies

This amendment has been made in Sec 115 BAB, which emphasis inter-corporate dividends to the domestic Companies opting to pay tax @ 15%, without claiming any deductions as per this section.

  1. Insertion of Sec 194 N

Sec 194 N was also in talks during the amendments in financial bill 2020; let us first have a quick check about the section and then the amendments.

Sec 194 N is all about the withdrawals about some limited amount such as it is applicable for withdrawals exceeding 1 Crore in a financial year.

The amendment says that the people withdrawing money over Rs 20 lakh are liable to 2 % as TDS.

The vision behind introducing Sec 194 N was to discourage cash transactions and promote digital transactions.

Apart from the above amendments in the finance bill, 2020, much importance has also been given to some “Enhancements in the Scope of Equalization Levy”, which are-

  1. Receipts from the online sale of goods owned by the e-commerce operator
  2. Receipts from the online provision of services provided by the e-commerce operator

III. Provided by person resident of India, Non-resident and person using IP address located in India

Conclusion

The amendments in the finance bill, 2020, can be thus said as a great effort by the government to put things in line on the relation between tax regime and threshold limited as levied by the government.

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Need for Mediation in 3 minutes with Tara Ollapally

Quick take from Tara Olappally, Co-Founder and Mediator, CAMP Arbitration and Mediation Practice Pvt. Ltd. on the recent signing of the Singapore Convention on Mediation and the need for focus on Mediation as a sustainable solution for alternative dispute resolution.

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