Notifications (August 2021)

FOR HOLDERS OF TIER 1 AEO LICENSES, CBIC HAS IMPLEMENTED AUTO-RENEWAL

The Central Board of Indirect Taxes and Customs (CBIC) has removed the requirement for Tier 1 or T1 level enterprises to renew their authorized economic operator (AEO) certification every three years. All such entities certified on or after April 1, 2019, will be auto renewed in the system starting August 1st, with no end date. The Board has agreed to provide the facility of continuous AEO certification/auto-renewal for AEO-TI entities, taking into account the stated problems faced by AEO-T1 (particularly MSME AEO-T1) entities in seeking renewal and in order to decrease their compliance burden. As a result, these organizations would no longer be obliged to seek AEO-T1 certification renewal on a regular basis.

CEOs are importers or exporters who choose to participate in the AEO certification program and transfer goods internationally. Because they are deemed secure and reputable business partners, such enterprises benefit from reduced clearance times, lower prices, and minimum disruption in cargo movement through customs as a result of the certification. 

T1 AEO is the lowest level of certification offered by the program, although it provides a high level of facilitation at ports and through customs, as well as other perks such as 24/7 goods clearance and 50% cheaper bank guarantee payment than non-AEOs. Auto-renewal will substantially simplify compliance for such businesses while also reducing the time and costs associated.

The Board stated that such businesses will be eligible for continuing AEO certification or auto-renewal if they submit an annual self-declaration and have it reviewed between October 1 and December 31 each year. The validity of an AEO T1 certificate is currently three years, and it must be renewed one month before it expires. Every three years, the status is reviewed. 

TO READ THE OFFICIAL NOTIFICATION CLICK HERE

THE DEADLINE FOR REPORTING ITRS HAS BEEN EXTENDED, BUT THERE IS NO RELIEF FROM INTEREST PENALTIES

As a result of the epidemic, the Indian government has extended the deadline for filing ITRs for the financial year 2020-21 till September 30, 2021. With the inconveniences caused by Covid-19 in mind, the administration granted many extensions to taxpayers last year as well. The taxpayer is required to pay interest on the unpaid tax under sections 234A, 234B, and 234C of the Income Tax Act 1961. 

According to section 234A, a monthly interest rate of 1% would be levied on the unpaid tax amount. The sum will be charged for the entire month if there is a delay of 5 or 6 days. Even if the deadline for filing income tax returns has been extended to September 30, it is still deemed a one-month delay.  If the tax liability exceeds Rs 1 lakh, the interest for August and September must be paid. If the self-assessment tax is greater than 1 lakh, interest will be charged. Section 234A provides relief in that if the tax due exceeds 1 lakh, interest will be paid on the time taken to file the income tax.

Section 234B requires a person who has not paid advance tax or has paid less than 90% of the tax amount to pay a 1% interest rate. Section 234C requires the defaulter to pay interest in addition to the advance tax installment. By the 15th of June, September, December, and March, taxpayers must pay a 15 percent, 45 percent, 75 percent, or 100 percent advance tax respectively. A reduction in the advance tax payment could result in a 3% interest charge for that quarter.

For any query/registration/advisory related to GST, Company, Taxation laws, and Updates, Kindly visit www.onfiling.com

Contact: +91 8448440803

E-mail: info@onfiling.com

Please follow and like us:

Leave a Comment