Clarification or Confusion on TDS & TCS from 1^st Oct 2020 – CBDT only understands!!!

Hats off to our Indian government officials, who are burning the midnight oil. They are providing clarification on the income tax website post 10.00 pm on 29^th Sept 2020 for laws to be implemented from 1^st Oct 2020.

Click to Read CBDT issues Guidelines on new TDS & TCS norms applicable from 1 October 2020

So now in less than 24 hours following needs to be done:

• Learn , relearn and un learn all the tax codes, get computer softwares changed from 3^rd party vendors ASAP to incorporate the clarifications, so that we can be compliant from 1^st Oct 2020;

• Become an expert of the clarification and give all the solutions in 1 hour so that you can answer all the queries of your IT team, management, customers, vendors, accounting and bill passing teams, plant teams, etc; so that we can be compliant from 1^st Oct 2020;

• Collect tax on tax. Invite infinite ambiguity and representations to no end;

• Collect TCS on payments received from 1^st Oct 2020, irrespective of invoice sent earlier and credit period falling post 1^st Oct 2020, irrespective of delivery schedule, negotiations made with customers, part payments received earlier because clarification was issued before 1^st Oct 2020

In times of global pandemic, our offical’s are making it easier to implement changes just before the deadline. An earnest request to them, atleast for once try to understand the difficulties the industries face while implementing the same in less than 24 hrs time.

There is a lot of hard work in first learning the law and then training various stakeholders who don’t understand “T” for tax and making them meet compliances.

E-invoicing from 1^st Oct and TCS/TDS also on same dates. Please step into the shoes of a businessman for a day. Should he promote “Make in India”, be a covid warrior or be a compliant assesse.

Last minute extension, causing heart burns, does this really suit this government. If you accept compliance, be compliant for a change. Help industry to plan and focus its resources and energies. Note these are the same people who will help the national GDP in the end.

A totally Paranoid and Frustrated Businessman

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