TaxPartners Compliance Handbook (May-2024)
TaxPartners Compliance Handbook (May-2024): Navigating GST, Income Tax, SEBI Regulations & ROC Compliances
Author- Tanvi Thapliyal
It is crucial for both businesses and individuals to stay compliant with tax regulations in today's complex financial landscape. The TaxPartners Compliance Handbook is designed to be your essential guide, providing a comprehensive roadmap to navigate the complex landscape of GST, Income Tax, and SEBI regulations.
As we enter May 2024, the tax situation is constantly changing, bringing both new obstacles and chances for growth. Whether you have experience in tax preparation, own a business, or are an individual taxpayer, this handbook provides you with the information and strategies necessary to effectively understand the complexities of taxation.
The TaxPartners Compliance Handbook provides you with expert insights, practical tips, and up-to-date information. It aims to empower you to make informed decisions, optimise your tax obligations, and mitigate risks. This handbook is a reliable resource for achieving financial compliance and success in the ever-changing world of taxation. It covers everything from understanding the latest amendments to implementing compliant practices.
Significance of Understanding the GST Compliance Calendar for May 2024:
Goods and Services Tax (GST) compliance stands as a cornerstone for businesses operating in India, serving as the regulatory backbone that governs the country's indirect taxation framework. Since its inception, GST has streamlined tax procedures, eliminated the cascading effect of multiple taxes, and fostered a unified market across states. For businesses, adhering to GST compliance is not merely a legal obligation but also a strategic imperative that ensures smooth operations, fosters transparency, and upholds integrity in financial transactions.
A clear understanding of the GST compliance calendar for May 2024 holds paramount importance for businesses navigating the intricacies of tax regulations in India. The GST compliance calendar outlines key dates and activities pertaining to tax filing and compliance obligations for the month. It serves as a guide, allowing businesses to arrange their financial activities, prepare requisite documentation, and meet statutory deadlines seamlessly.
By comprehending the distinctions of the GST compliance calendar for May 2024, businesses can strategically plan their tax-related activities, ensure timely submission of returns, mitigate the risk of non-compliance penalties, and uphold their reputation as responsible corporate citizens. Moreover, a proactive approach to GST compliance underscores a commitment to regulatory adherence, fostering trust among stakeholders and strengthening the overall credibility of the business in the marketplace.
In this article, we explore into the intricacies of the GST compliance calendar for May 2024, explaining the various forms, filing frequencies, tax periods, and due dates that businesses need to navigate. Through a comprehensive examination of these compliance requirements, businesses can equip themselves with the knowledge and tools necessary to navigate the complex terrain of GST regulations effectively, thereby facilitating their journey towards sustainable growth and compliance excellence.
Important compliances for the month of May are Listed Below-
1.GSTR-1: Understanding Outward Supply Reporting
The Goods and Services Tax Return 1 (GSTR-1) is a crucial form under the GST regime in India. It primarily focuses on capturing details of outward supplies made by registered taxpayers. These outward supplies include sales, exports, and supplies made to unregistered persons or consumers.
Significance of GSTR-1:
GSTR-1 plays a pivotal role in the GST framework as it provides the government with essential information about the outward supplies made by businesses. This data is used for reconciliation, input tax credit claims by recipients, and ensuring tax compliance across the supply chain. Timely and accurate filing of GSTR-1 is essential for maintaining transparency and accountability in the tax system.
Filing Frequencies, Tax Periods, and Due Dates:
Taxpayers with Aggregate Turnover of MORE than Rs. 5 Crores:
Taxpayers with Aggregate Turnover of LESS than Rs. 5 Crores:
Taxpayers with Aggregate Turnover of LESS than Rs. 5 Crores under QRMP Scheme:
2.GSTR-1 IFF for QRMP Scheme Taxpayers: Streamlining Reporting
Under the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme, taxpayers have specific requirements for reporting their outward supplies through the GSTR-1 Invoice Furnishing Facility (IFF). This facility allows taxpayers to furnish details of their invoices for the first two months of the quarter to ensure a smooth flow of input tax credit for their recipients.
Specific Requirements for Taxpayers under the QRMP Scheme:
The QRMP scheme is designed to ease compliance burdens for small taxpayers while ensuring the flow of input tax credit for their recipients. For taxpayers under this scheme, the GSTR-1 IFF serves as an important tool for reporting their outward supplies for the initial two months of the quarter.
Details on Filing Frequency, Tax Periods, and Due Dates:
Under the QRMP scheme, taxpayers have the following requirements for filing GSTR-1 IFF:
3.GSTR-3B: Overview and Importance
The GSTR-3B return is a consolidated summary of a taxpayer's outward and inward supplies, input tax credit (ITC) availed, and tax liability under the Goods and Services Tax (GST) regime. It is a self-declaration form filed by registered taxpayers on a monthly basis to report their GST liabilities.
Contents of GSTR-3B:
The GSTR-3B return comprises several crucial components, including:
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Outward Supplies: Details of taxable supplies made during the tax period, including both inter-state and intra-state supplies.
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Inward Supplies: Information on taxable purchases made during the tax period, including reverse charge mechanism (RCM) supplies.
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Input Tax Credit (ITC): Details of eligible input tax credit availed on inward supplies, including ITC availed under RCM.
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Tax Liability: Computation of the total GST liability, including tax payable on outward supplies and ITC utilization.
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Payment of Tax: Payment details such as tax paid through cash and utilization of ITC for tax payment.
Importance of GSTR-3B:
The GSTR-3B return holds significant importance for both taxpayers and the tax authorities due to the following reasons:
Compliance: It ensures compliance with GST regulations by providing a summary of taxable transactions and tax liabilities.
Input Tax Credit Reconciliation: It facilitates reconciliation of input tax credit availed by taxpayers with the details furnished by their suppliers in GSTR-1.
Tax Assessment: It serves as a basis for tax assessment and helps in determining the tax liability of the taxpayer.
Differentiation Based on Turnover:
Taxpayers with turnover above and below 5 crores have different filing frequencies and due dates for GSTR-3B, as outlined below:
Turnover Above 5 Crores:
Turnover Below 5 Crores:
4.Other Returns and Forms in GST Compliance
In addition to GSTR-1 and GSTR-3B, several other returns and forms play crucial roles in the Goods and Services Tax (GST) compliance framework. Each form serves a specific purpose and is filed by different categories of taxpayers to fulfil their statutory obligations.
GSTR-5:This return is filed by Non-Resident Taxpayers who engage in taxable supplies in India but do not have a permanent establishment in the country. It includes details of their outward supplies, inward supplies, and tax paid.
GSTR-5A:This return is filed by Online Information Database Access and Retrieval (OIDAR) service providers who are non-resident taxpayers. It contains details of OIDAR services provided and tax paid.
GSTR-6:Input Service Distributors (ISDs) file this return to distribute the input tax credit (ITC) to their recipient units. It includes details of ITC distributed and received.
GSTR-7:This return is filed by taxpayers who are required to deduct Tax Deducted at Source (TDS) under GST. It contains details of TDS deducted and deposited with the government.
GSTR-8:E-commerce operators who are required to collect Tax Collected at Source (TCS) file this return. It includes details of supplies made through the e-commerce platform and tax collected.
GSTR-11:This return is filed by taxpayers who have been issued a Unique Identity Number (UIN) and are eligible for a refund of taxes paid on inward supplies. It includes details of inward supplies and tax paid.
CMP-08:This form is filed by taxpayers who have opted for the Composition Scheme under GST. It includes a summary of self-assessed tax payable by the composition dealer.
INCOME TAX COMPLIANCES
Income tax compliance is a cornerstone of responsible fiscal management for individuals and businesses alike. Governed by intricate regulations and deadlines set forth by tax authorities, it entails the timely and accurate reporting of income, deductions, and tax liabilities. Adhering to income tax laws is not just a legal obligation but a strategic imperative that underpins financial stability, regulatory integrity, and compliance excellence.
Importance of Timely Compliance:
Timely compliance with income tax obligations is paramount for maintaining financial health and regulatory integrity. It ensures that individuals and businesses fulfill their tax responsibilities promptly, thereby avoiding penalties, interest charges, and legal repercussions. Moreover, timely compliance fosters transparency, accountability, and trust among stakeholders, including tax authorities, investors, and business partners.
1.Depositing TDS & TCS Liabilities to Income Tax Department (Apr '24):
Compliance Due Date: 7th May:
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This deadline pertains to depositing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) liabilities for the month of April 2024.
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TDS is a mechanism where tax is deducted at the source of income itself, whereas TCS involves collecting tax at the source from the payer.
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Businesses and individuals who deduct TDS or collect TCS are required to deposit the amount deducted or collected to the Income Tax Department on or before this date.
2.TDS Certificates (Form 16B, 16C, 16D - Mar '24) and Quarterly TCS Return (Jan-Mar '24):
Compliance Due Date: 15th May:
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TDS Certificates: This deadline involves issuing TDS certificates, namely Form 16B, 16C, and 16D, for tax deducted under sections 194-IA, 194-IB, and 194M for the month of March 2024.
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Quarterly TCS Return: This deadline requires businesses to submit their Quarterly TCS return (Form 27EQ) for the quarter ending March 2024. TCS returns provide details of tax collected at source during the quarter.
3.PF/ESI Deposits (Apr '24) and Challan-cum-Statement for TDS under 194IA, 194IB, and 194M (Apr '24):
Compliance Due Date:30th May:
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PF/ESI Deposits: Employers are required to deposit contributions towards Provident Fund (PF) and Employee State Insurance (ESI) for the month of April 2024. These contributions are made on behalf of employees.
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Challan-cum-Statement for TDS: This deadline involves furnishing the challan-cum-statement under sections 194IA (Form 26QB), 194IB (Form 26QC), and 194M for April 2024. These forms are used for reporting TDS on property transactions, rent payments, and certain contractual payments, respectively.
4.LLP Form-11 (FY 2023-24), Quarterly TCS Certificate (Jan-Mar '24), and Quarterly TDS Return (Jan-Mar '24):
Compliance Due Date:31st May:
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LLP Form-11: Limited Liability Partnerships (LLPs) are required to file Form 11, an annual statement providing details of the business and partners for the financial year 2023-24.
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Quarterly TCS Certificate: Businesses need to issue TCS certificates for Quarter 4 of the financial year 2023-24. TCS certificates provide details of tax collected at source during the quarter.
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Quarterly TDS Return: This deadline involves submitting the quarterly statement for Tax Deducted at Source (TDS) deposited for the quarter ending March 2024. TDS returns provide details of TDS deductions made during the quarter.
SEBI COMPLIANCES FOR MAY
Ensuring compliance with SEBI (Securities and Exchange Board of India) regulations is essential for listed entities and market participants due to several reasons. Firstly, SEBI regulations serve to protect investor interests by promoting transparency, fairness, and integrity within the securities market. Compliance helps prevent fraudulent practices such as insider trading and market manipulation, thus maintaining the credibility and trustworthiness of the market.
Additionally, adherence to SEBI regulations is a legal obligation for listed companies, with non-compliance carrying penalties and disciplinary actions. Furthermore, SEBI mandates corporate governance standards, enhancing transparency and accountability within organizations. Compliance is also crucial for companies seeking to access capital markets through activities like initial public offerings (IPOs), ensuring investor confidence and regulatory approval. Moreover, SEBI's regulatory oversight extends to various market intermediaries, ensuring market efficiency and stability.
Finally, compliance helps mitigate legal and reputational risks associated with non-compliance, allowing companies to address regulatory issues promptly and maintain their market standing. Overall, SEBI compliance is fundamental for fostering trust, protecting investors, and upholding the integrity of the securities market.
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Regulation
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Title
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Mode of Uploading
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Timeline
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LODR Regulations
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Secretarial Compliance Report
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Pdf & XBRL
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30-May
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LODR Regulations
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Financial Results
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Pdf & XBRL
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30-May
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LODR Regulations
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Prior Intimation of Board Meeting
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Pdf & XBRL
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5 days prior to Board Meeting
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LODR Regulations
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Publication of Financial Results in Newspaper
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Pdf of newspaper cutting to SE
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48 hours from conclusion of Board Meeting
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LODR Regulations
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Statement of Deviation or Variation
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Pdf & XBRL
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30-May
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LODR Regulations
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Website Update
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2 working days
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LODR Regulations
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Annual Report
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Pdf
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As soon as dispatched to shareholders
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LODR Regulations
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Related Party Disclosures
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Pdf & XBRL
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Same day as financial results published
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LODR Regulations
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Outcome of Board Meeting
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Pdf & XBRL
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30 minutes from conclusion of Board Meeting
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Closure of Trading Window (PIT Regulations - Clause 4 of Schedule B of Reg. 9):
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Listed entities are required to close their trading window for designated persons from the first day of the quarter until 48 hours after the declaration of financial results.
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This regulation aims to prevent insider trading by restricting designated persons from trading in the company's securities based on undisclosed price-sensitive information.
Structured Digital Database (PIT Regulations - Regulation 3(5)):
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Listed entities must submit a Structured Digital Database (SDD) Compliance Certificate exempting them from Regulation 24A requirements.
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The certificate is submitted in PDF format to the National Stock Exchange (NSE) for compliance verification.
Statement of Grievances Redressal Mechanism (LODR Regulations - Regulation 13(3)):
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Listed entities need to provide a statement of their grievances redressal mechanism, which includes details of complaints received and resolved.
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This statement is filed in XBRL format to ensure standardized reporting.
Secretarial Compliance Report (LODR Regulations - Regulation 24A):
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Listed entities are required to submit a Secretarial Compliance Report along with the Annual Report, which includes a format of Secretarial Audit Report (MR-3).
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This report verifies compliance with various regulatory requirements and is filed in both PDF and XBRL formats.
Corporate Governance Report (LODR Regulations - Regulation 27(2)):
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Listed entities must furnish a Corporate Governance Report detailing their adherence to corporate governance principles.
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The report is filed in XBRL format to ensure consistency and transparency in reporting practices.
Shareholding Pattern (LODR Regulations - Regulation 31(1)):
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Listed entities need to disclose their shareholding pattern, including details of promoters, public shareholders, and other categories.
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This disclosure is filed in XBRL format for standardized reporting.
Financial Results (LODR Regulations - Regulation 33(3)):
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Listed entities are required to publish their financial results, including profit and loss statements, balance sheets, and cash flow statements.
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Financial results are filed in both PDF and XBRL formats to facilitate accessibility and analysis.
Prior Intimation of Board Meeting (LODR Regulations - Regulation 29(1)):
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Listed entities must provide prior intimation of board meetings where financial results or other key decisions will be discussed.
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This intimation is filed in both PDF and XBRL formats at least five days before the board meeting.
Publication of Financial Results in Newspaper (LODR Regulations - Regulation 47(3)):
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After the conclusion of the board meeting, listed entities are required to publish their financial results in a newspaper.
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A PDF of the newspaper cutting is submitted to the stock exchange within 48 hours of the board meeting's conclusion.
ROC COMPLIANCES
Form-11:
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Compliance:Annual Return of Limited Liability Partnership (LLP).
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The period is FY 2023-24.
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Due date: May 30th, 2024.
PAS-06:
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Compliance: Reconciliation of Share Capital Audit Report (Half-yearly)
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The period is from 1st October 2023 to 31st March 2024.
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Due date: May 30th, 2024.
As the deadline of May 30th, 2024 approaches, it is important for Limited Liability Partnerships (LLPs) to make sure they comply with Form-11, which is the Annual Return of LLPs for the fiscal year 2023-24, and PAS-06, which is the Reconciliation of Share Capital Audit Report for the period from October 1st, 2023 to March 31st, 2024.
When you complete and submit Form-11 accurately, it gives a clear picture of the LLP's financial status, operational activities, and corporate governance structure. This helps provide transparency to stakeholders and regulatory bodies. Completing this yearly requirement is essential for ensuring that we adhere to regulations and maintain the integrity of the LLP framework.
At the same time, following PAS-06 helps to carefully examine and confirm the LLP's share capital structure, making sure it complies with legal requirements and preventing any mistakes or inconsistencies. The LLP's half-yearly reconciliation demonstrates its dedication to responsible financial practices and helps build trust among investors by offering a clear and transparent view of its capital structure.
As the due date is coming up soon, it's important for LLPs to make sure they prioritise preparing and submitting these important compliance documents on time. LLPs can ensure regulatory compliance and build a strong foundation for long-term growth, credibility, and trust in the ever-changing world of corporate governance by fulfilling their obligations diligently.
Conclusion
The TaxPartners Compliance Handbook is a valuable resource for anyone who needs to understand the intricacies of GST, Income Tax, and SEBI regulations in May 2024. In today's world, it is crucial for both businesses and individuals to stay informed and compliant with the constantly evolving regulatory landscape.
This handbook empowers readers to tackle tax challenges with confidence and precision by offering comprehensive insights, practical guidance, and up-to-date information. Whether you need help understanding the complexities of GST compliance, finding ways to optimise your tax strategies, or making sure you follow SEBI regulations, the information in this handbook can provide clear guidance in the confusing world of taxation.
As we continue, the TaxPartners Compliance Handbook is dedicated to keeping readers informed about the most recent updates, providing them with the necessary tools and knowledge to successfully navigate the changing tax environment. This handbook remains the top choice for individuals looking to achieve compliance and maximise financial success in the field of taxation, thanks to its user-friendly approach and expert guidance.
