"November, 2017" Archive

Unauthorized expansion of scope of limited scrutiny- CBDT suspends officers

F.No. DGIT(Vig.)/HQ/SI/2017-18 (30/11/2017)

It was found that no reasons had been recorded for expanding the scope of limited scrutiny, no approval was taken from the PCIT for conversion of the limited scrutiny case to a complete scrutiny case and the order sheet was maintained very perfunctorily. This gave rise to a very strong suspicion of mala fide intentions. The Officer concer...

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ICSI Secretarial Standard on Dividend (SS-3)

SECRETARIAL STANDARD ON DIVIDEND- The following is text of the Secretarial Standard-3 (SS-3) on Dividend, issued by Council of Institute of Company Secretaries of India. Adherence to this Secretarial Standard is recommendatory....

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Posted Under: Income Tax |

Various kind of Assessment under GST by proper officers

Assessment means determination of tax liability. Every law requires proper assessment of tax liability for each and every tax payer. But assessment of each and every tax payer is practically not possible so, there are many ways in which assessment can be done either by himself or by authority....

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Posted Under: Income Tax |

Process of LLP Registration in INDIA

A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization. In an LLP one partner is not responsible or liable for another partner’s misconduct or negligence. In an LLP, all partners have limited liability for each individual’s protection within the partnership, simil...

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Posted Under: Income Tax |

Punjab VAT Annual Return due date extended to 8th December 2017

Extension of Due date of filing of Punjab VAT Annual return VAT-20 for year 2016-17 from 30th November 2017 to 08th December 2017 by Government of Punjab vide its Notice dated 30th November 2017....

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Posted Under: Income Tax |

11 FAQs on GST Replied by GOI on Twitter on 30th Nov 2017

Q.1 Advance was given when rate was 28%, and our vendor has paid tax on it. Subsequently rate has fallen to 18%. Will the invoice will be raised at 18% ? If yes, what to do of additional 10% paid as advance? Ans: Assuming supply happended after the change in tax rate, the time of supply […]...

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Posted Under: Income Tax |

ICAI President’s Message – December 2017

With the Governments commitment to fiscal consolidation and sustained growth, continuous initiatives and reformative steps in that direction, India’s macroeconomic story is gradually improving. ...

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Posted Under: Income Tax |

GST exemption on disbursement of Viability Gap Funding to Selected Airline Operators

Notification No. G.S.R. 1470(E). (30/11/2017)

In terms of the said Notification, Service Tax / GST exemption has been granted by Government of India, Ministry of Finance on VGF disbursed to Selected Airline Operators in respect of RCS Flights operated at above RCS Airports, for such period, as provided in the Notification, from the date indicated against each RCS Airport as above....

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16 Issues and Suggestions relating to GST Returns

Invoice wise reporting in GSTR 1: The bulk need of information in the form of invoice wise reporting under GSTR 1 on monthly has caused immense problems in data submissions and filing. Invoice wise reporting of B2B transactions intends matching of data. But the same has increased the work manifold without being of much use to any governme...

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Posted Under: Income Tax |

Acting As Authorized Representative Under GST

Authorized representative means a person who is authorized by a person to appear on his behalf. Section 2(15) of GST Act, 2017, provides that authorized representative means the representative as referred to in section 116....

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Posted Under: Income Tax |

10 Simple and Easy to Follow Rules for Effective Personal Finance Management

The definition of middle class or upper middle class is changing rapidly along with the increasing earning power. Effective management of your personal finance is mandatory to cope up with the collective demand the world is putting on your plate....

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Posted Under: Income Tax |

RTI Act would not prevail over Supreme Court Rules; CIC cannot overrule decision of Other Coordinate Benches Of Same Strength

The Registrar Vs. R S Misra (Delhi High Court)

The Judicial Functioning Of The Supreme Court Of India Is Separate/ Independent From Its Administrative Functioning. The Dissemination Of Information Under The SCR Is A Part Of Judicial Function, Exercise Of Which Cannot Be Taken Away By Any Statute. The SCR Would Be Applicable With Regard To The Judicial Functioning Of The Supreme Court;...

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Deep and brief analysis of Place Of Supply for determining taxability

Place of supply is creating lot of problems now a days. it is very important to determine it correctly because it will help state and central Govt. for revenue sharing....

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Posted Under: Income Tax |

CAs ought to maintain highest level of ethics and integrity: Delhi HC

Council Of The Institute Of Chartered Accountant Of India Vs. Ashok Kumar & Anr. (Delhi High Court)

Court would like to observe that CAs ought to maintain the highest level of ethics and integrity, not only in the interest of their clients but also to ensure that probity and sanctity are not compromised in any manner as CAs are not merely professionals engaged by their clients, but are protectors and guardians of financial markets on wh...

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Expenditure in raising loans or issuing debentures would be revenue in nature

Tata Industries Ltd. Vs. ACIT (ITAT Mumbai)

Tata Industries Ltd. Vs. ACIT (ITAT Mumbai) -Expenditure in raising loans or issuing debentures would be revenue in nature, irrespective of whether the borrowal is a long term or short term one....

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HC allows withdrawal of Maha-RERA Office Order defining ‘Co-Promoter’

Ismail Ibrahim Patel and ors. Vs. State of Maharashtra and ors. (Bombay High Court)

The petitioner had questioned and challenged the validity of office order dated 11th May, 2017 passed by the Secretary, Maharashtra Real Estate Regulatory Authority (hereinafter referred to as Maha­ RERA for short). In the impugned order the Maha­ RERA observed that since the term ‘Co­ promoter’ is not defined in the Act,Ru...

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Suggestions for smooth compliance of GST- Issue and Response

F. No. 349/147/2017- GST/405 (30/11/2017)

Issue: Payment up to Rs. 50,000 to be allowed through cheque instead of current provision of Rs. 10,000. Response: The Council deliberately decided to keep Rs. 10,000/- as limit for payment through 'over the counter mode' of payment. The same has been decided in the line with the view of Government to minimize cash transactions and encour...

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Procedure for manual disbursal of budgetary support under GST

Circular No.1061/10/2017-Central Excise (30/11/2017)

After registration of the eligible unit, based on the details mentioned by the applicant on the Registration Form, the bank account of the applicant shall be validated by the Asstt./Dy. Commissioner (in the capacity of Program Division of CBEC) and a Unique Vendor Id will be created. This exercise should be completed within 3 days of regi...

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Addition based on unauthentic / Unsigned Swiss bank statement U/s. 68 not sustainable

Shyam Sunder Jindal Vs. Asst. CIT (ITAT Delhi)

AO relied on copies of certain bank statement not bearing any signature of bank official--Authenticity of documents in question Where AO relying on certain loose papers, which were the copies of the bank statement not bearing any signature of the bank official, or the name of the bank or the place or the country where the branch was situa...

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Reg. Circular on Prevention of Unauthorized Trading by Stock Brokers

CIR/HO/MIRSD/MIRSD2/CIR/P/2017/124-SEBI (30/11/2017)

Brokers are required to maintain the records specified at para III of aforementioned circular for a minimum period for which the arbitration accepts investor complaints as notified from time to time, currently three However in cases where dispute has been raised, such records shall be kept till final resolution of the dispute....

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Notification No. 112/2017-Customs (N.T.), Dated: 30.11.2017

Notification No. 112/2017-Customs (N.T.) [S.O. 3779 (E)] (30/11/2017)

Notification No. 112/2017-Customs (N.T.) In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the ...

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GST – Impact & Strategies to Leverage Cost Benefits through Supply Chain Re-structuring & Re-Alignment

Goods and Services Tax (GST) is a Value Added, Multi-Point, Destination Based, Dual Taxation System aim to eliminate Double Taxation / Cascading Effect of several indirect taxes like VAT, CST, Central Excise Duty, Service Tax etc. ...

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Posted Under: Income Tax |

SEBI guideline on appointment of Auditors of Mutual Funds

SEBI/HO/IMD/DF2/CIR/P/2017/125 (30/11/2017)

Auditors of Mutual Funds: 1. The auditor of a MF, appointed in terms of Regulation 55 (1) of SEBI (MFs) Regulations shall be a firm, including a limited liability firm, constituted under the LLP Act, 2008....

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Type of Audit in GST

Audit word Speculate that what type of audit is inserted in CGST Act, 2017. Audit can be done by chartered Accountants/ Cost Accountants or by Department itself....

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Posted Under: Income Tax |

GST Refunds in current senario

In GST, procedures of refund seems comfortable as compare to earlier tax structure. Let us make a study how and when refund under GST will be granted....

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Posted Under: Income Tax |

BCCI guilty of abusing its dominant position; CCI Imposes penalty for Anti-Competitive conduct

Surinder Singh Barmi Vs. The Board of Control for Cricket in India (Compensation Commission of India)

Competition Commission of India (CCI) issues order against Board of Control for Cricket in India (BCCI) for abuse of dominant position for imposing restriction that deny access to the market for organization of Professional Domestic Cricket League/ Events; Imposes penalty of Rs. 52.24 crore on BCCI for the Anti-Competitive conduct....

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AO cannot treat activities of Trust as business without examining the same

ACIT (Exemptions) Vs. The Andhra Cricket Association (ITAT Vishakhapatnam)

ACIT (Exemptions) Vs. Andhra Cricket Association (ITAT Vishakhapatnam) The assessee is receiving grants from BCCI partly as reimbursements for various tournaments conducted by the assessee. The assessee has already constructed a stadium at Visakhapatnam suitable for conducting ‘test matches‘. During the year under consideratio...

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Time line for return filing under GST

ATTENTION TAXPAYERS! CALENDAR FOR GST RETURN FILING- FOR FILING OF GSTR-3B, GSTR-1, GSTR 4, GSTR-5, GSTR-5A, GSTR-6 for the Month of July 2017 to March 2018. ...

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Posted Under: Income Tax |

GST: 11 Latest FAQs on GST as replied by Govt on Twitter

Questions 1. Sir I have started my firm under proprietorship but due to some reason I wanted to transfer my ownership but I could not due to new GST law it can not, kindly let me know what can be done ? Answer: You can transfer your business and as per sec 22(3) of CGST Act, […]...

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Posted Under: Income Tax |

Penalty for failure to get account audited not justified if assessee acted bona fide

Off- Shore India Ltd. Vs. Deputy Commissioner of Income-tax (ITAT Kolkata)

Even though the net profit / loss arising from the purchase and sale of securities was disclosed by the assessee in the profit and loss account, the value of such securities held by the assessee was fully and truly disclosed by the assessee under the head investment in the relevant balance sheet. ...

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Functionality to claim Refund of excess amount in Electronic Cash ledger enabled

A functionality has been provided to the taxpayers on GST Portal to claim Refund of Excess amount in their Electronic Cash ledger. Those taxpayers, who wish to claim this Refund, may apply through the path given below...

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Posted Under: Income Tax |

File Table 6A & GSTR 3B to get Refund of IGST & unutilized Input Tax Credit

Exporters advised to file Table 6A and GSTR 3B for processing of IGST Refund and for Refund of the unutilized Input Tax Credit; Errors by exporters while filing their returns are the sole reason for delay in grant of refunds or rejection thereof; The Government of India has taken various measures to alleviate difficulty and is fully commi...

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Posted Under: Income Tax |

GST – Two Major Common public Questions, My Answers and Suggestion

Recently I have come across lot of queries regarding GST from some Common people and professionals from other fields whom I met recently. I have also answered them to some extent to what I really known about the particular concept....

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Posted Under: Income Tax |

AO justified in making addition for unexplained amount deposited in bank

George Alexander Vs The Assistant Commissioner of Income-tax (ITAT Cochin)

George Alexander Vs ACIT (ITAT Cochin)  The Assessing Officer in para 6 of the assessment order had catalogued the unexplained deposits in various bank accounts. While working out the unexplained deposits in the bank accounts of the assessee, the Assessing Officer had given due credit to the income declared by the assessee in the return...

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No Sales Tax Payable on Medical Equipment’s Imported by Hospital for ‘Own Use’

M/s. Eye Foundation Ltd. Vs. The Joint Commissioner (Commercial Taxes) (Madras High Court)

In a recent ruling, the Madras High Court held that the hospital is not liable to pay Sales Tax under Tamil Nadu Value Added Tax Act in respect of import of medical equipments for its personal consumption....

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Allowability of Depreciation on Gym Equipment Installed at House of Managing Director

ACIT Vs. Claridges Hotels Pvt. Ltd. (ITAT Delhi)

ACIT Vs. Claridges Hotels Pvt. Ltd. (ITAT Delhi) Company can claim Depreciation in respect of Equipment Installed at Residential Premises of its Managing Director, the same should be added as perquisite in the hands of the said Director but cannot be disallowed in the hands of the assessee company...

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SEBI modifies guidelines covering broad areas for enhanced supervision

Circular No. SEBI/HO/MIRSD/MIRSD2/CIR/P/2017/123 (29/11/2017)

Clause 7.1.2 stands modified as follows: End of day securities balances ISIN wise (as on last trading day of the month) and End of day securities balances (as on last trading day of the month) consolidated ISIN wise (i.e., total number of ISINs and total number of securities across all ISINs)...

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Co-operative Societies cannot use the word“Bank” in their names: RBI

Press Release No. 2017-2018/1467 (29/11/2017)

It has come to the notice of Reserve Bank of India (RBI) that some Co-operative Societies are using the word Bank in their names. This is a violation of Section 7 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) (the B.R.Act, 1949)....

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The Fiction of Loan Waiver to Capitalists: FM Clarifies

Over the last few days, a rumor is being propagated regarding waiver of loans of capitalists by banks. Time has come for the nation to be apprised of facts in this regard....

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Posted Under: Income Tax |

Conversion from Limited Company to Private Limited Company

There are many companies looking for such conversion. The main reasons are the relaxations available to a private company. However there are some legal bindings related to the conversion of a public limited into a private limited. ...

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Posted Under: Income Tax |

Manual filing & processing of refund claims in respect of Zero-rated supplies in Maharashtra

Trade Cir No. 49 T of 2017 (28/11/2017)

Due to the non-availability of the refund module on the common portal, it has been decided, on the recommendations of the Council, that the applications/documents/forms pertaining to refund claims on account of zero-rated supplies of goods or services or both without payment of integrated tax shall be filed and processed manually till fur...

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Double Taxation – In-bond transfer under customs warehouse

The CBEC vide Circular No. 46/2017-Cus dated 24.11.2017 has clarified that the sale / transfer of goods lying in a Customs Bonded Warehouse (in-bond transfer) would attract (i) the integrated goods and services tax (IGST) at the time of transfer; and (ii) customs duty comprising of BCD and IGST at the time of removal of such goods from th...

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Posted Under: Income Tax |

GSTR 3B Calculation Sheet

Use this excel sheet for calculate GST Payment or Carry forward Balance....

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Posted Under: Income Tax |

No GST on Advance received for Supply of Goods

Giving relief to the tax payers, the Central Govt has abolished GST on Advance received in case of Supply of Goods. A brief analysis of the recent changes is presented below...

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Posted Under: Income Tax |

GST reshaping FMCG logistics into modern business, says study

Trade and industry may have faced teething troubles from the Goods and Services Tax (GST) but the entire business landscape of FMCG (fast moving consumer goods), retail and logistics is going to be transforming into modern and efficient model with introduction of uniform tax regime, says a joint study by ASSOCHAM-MRSS India....

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Posted Under: Income Tax |

Can Refund be claimed if wrong payment under GST made?

Arjuna, due to technical issues taxpayers have paid wrong amount to the government. Sometimes they pay excess amount. In that case i.e Amount is paid in excess of actually payable to the Government’s treasury, then we will get ITC for that in next tax period. But if there is no liability to set off the ITC, then that amount will be refu...

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Reopening not permissible on the ground of expense which was not claimed by Assessee

Sandip Bhikhubhai Padsala Vs. ITO & Anr. (Gujarat High Court)

Assessee sold 3,10,000 shares and claimed resulting gains as exempt under section 10(38). AO denied the exemption on the ground that as the shares were not held by the assessee for more than 12 months period, therefore, same could not be considered as long-term capital assets. ...

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EPFO lays down provisions to help Pensioners in submitting Jeevan Parmaan with ease

As per the provisions laid down, pensioners under Employees’ Pension Scheme, 1995 are required to submit Life Certificate annually in the month of November each year. From 2016 facility has been provided for submission of Jeevan Parmaan digitally as authentication for proof of identity of the individual pensioners. In order to obviate t...

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Posted Under: Income Tax |

SC rejects Bail plea of Rohit Tandon for alleged Possession & Conversion of Demonetized Notes

Rohit Tandon Vs. The Enforcement Directorate (Supreme Court of India)

While upholding the proceedings against Advocate Rohit Tandon, a three judge bench of the Supreme Court confirmed the Delhi High Courts’ order denying bail for possession and conversion of Demonetized Currency....

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Receipt of beneficial share from partnership firm cannot be treated as unexplained

ACIT Vs. M/s. Jeannie Jamshed Madan (ITAT Mumbai)

ACIT Vs. M/s. Jeannie Jamshed Madan (ITAT Mumbai) The fact that the assessee is one of the beneficiaries in the Estate of late Shri M.S. Kotwal who is partner in the partnership firm of M/s. Mira Salt Works is not in dispute. The reason for bringing to tax the amount received by the assessee is, […]...

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Income from licensing of running hotel is business income

Palmshore Hotels (P) Limited Vs. Commissioner Of Income Tax (Appeals)- I (Kerala High Court)

All these, provisions of agreement would, therefore, indicate that license that has been granted is that of a fully established running hotel authorizing the licensee to operate the hotel for a specified period subject to the terms and conditions incorporated therein....

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About RGESS For further rebate

Took benefit of RGESS for fy 14-15,15-16,16-17 . Could I get benefit of RGESS for fy 17-18 , 18-19 ?...

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Posted Under: Income Tax |

How and where to compliant on GST issues faced by consumers?

As Promised, I’m back with step-by-step procedure on How to Complaint in case of GST charged over and above MRP and Illegal collections on the name of GST. ...

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Posted Under: Income Tax |

Applicability of IGST/GST on goods transferred/sold while being deposited in a warehouse

Trade Notice No. 50/2017 (28/11/2017)

The Central Board of Excise & Customs ICBECI has issued Circular No. 46/2017-Customs dated 24.11.2017 on the applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse. The gist of the clarification is as under....

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Penalty cannot be imposed for mere disallowance of Additional Depreciation

Bhavani Gems Vs. Assistant Commissioner Of Income Tax (ITAT Mumbai)

Bhavani Gems Vs. ACIT (ITAT Mumbai) We have heard the rival contentions and perused relevant material on record including cited orders of Tribunal in assessee’s case for different years. Upon perusal of the same, we find strength in the argument of Ld. AR since the assessee’s claim for additional depreciation has been allowed in subse...

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Facility of transfer of shares to IEPF Authority demat account with CDSL

Circular No.: NSDL/CIR/II/22/2017 (28/11/2017)

Attention of Issuers/RTAs is invited to NSDL Circular No. NSDL/CIR/II/21/2017 dated November 24, 2017 regarding transfer of shares to IEPF Authority. In this context, Issuers/R&T Agents are hereby informed that the facility of transfer of shares being transferred...

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Notification No. 111/2017-Customs (N.T.), Dated: 28.11.2017

Notification No. 111/2017-Customs (N.T.) (28/11/2017)

Notification No. 111/2017-Customs (N.T.) CBEC hereby appoints officer mentioned in column 5 of the Table below to exercise the powers and discharge duties conferred or imposed on officers mentioned in column (4) of the Table in respect of Noticees mentioned in column (2) of the Table, for purpose of adjudication of show cause notice ment...

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Provisions of rule 2 of MGST (Sixth) Amendment) Rules, 2017

Notification No. GST. 1017/C.R. 216/Taxation-1 (28/11/2017)

Government of Maharashtra, hereby appoints the 1st day of July, 2017, as the date on which the provisions of sub-rule (i), (ii), (iii), (iv), (v), (vi) and (vii) of rule 2 of the Maharashtra Goods and Services Tax (Sixth Amendment) Rules, 2017, shall come into force....

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Compensation paid for loss to clients due to negligence of employees of assessee is allowable expense

Ashwani Financial Services (P.) Ltd. Vs. JCIT (ITAT Amritsar)

Circular No. 35 issued by Board clearly states the losses arising due to negligence of employees has to be allowed as expense if the loss took place in the normal course of the business and the amount involved was necessarily kept for the purpose of business. In the present case, the losses were necessarily incurred in the normal course o...

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Govt appoints Shri B.N. Sharma as Chairman of NAA under GST

In an immediate follow up action of last week's Cabinet approval for creation of the posts of Chairman and Technical Members of the National Anti-profiteering Authority under GST, the Government today issued orders appointing senior IAS officer Shri B.N. Sharma, as the first Chairman of this apex Authority in the rank of Secretary to Gove...

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Revision petition U/s. 264 cannot be refused for pendency of similar petition for another year

Paradigm Geophysical Pty Ltd Vs. DCIT (Delhi High Court)

Commissioner cannot refuse to entertain a revision petition filed by the assessee under Section 264 of the Act if it is maintainable on the ground that a similar issue has arisen for consideration in another year and is pending adjudication in appeal or another forum....

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Allahabad High Court also rules that sec 40(a)(ia) is applicable on “Payable”

Ashok Auto Sales Ltd v/s CIT (Allahabad High Court)

Allahabad HC in case of Ashok Auto Sales Ltd v/s CIT held that Vector shipping is not correct preposition of law as held by Honb'le SC in case of M/s Palam Gas Service vs. CIT....

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3 reasons for downward trend of tax revenue under GST

Because of the first time requirement of paying IGST on transfer of goods from one state to another state even within the same company, there was an additional cash flow of IGST in the first 3 months. As and when the final transaction of these goods takes place, the credit for IGST is being utilized for payment of SGST and CGST and theref...

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Constitution of Fifteenth Finance Commission Notified

Notification No. S.O.3755(E) (27/11/2017)

The Government of India, with the approval President of India, has constituted Fifteenth Finance Commission in pursuance of clause (1) of article 280 of the Constitution, read with the provisions of the Finance Commission (Miscellaneous Provisions) Act, 1951 w.e.f. 27th November, 2017. ...

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No Taxability under Income Tax Provisions if no tax under respective DTAA

DCIT Vs. Ford India Limited (ITAT Chennai)

Recently, in DCIT vs. Ford India Limited & vice-versa[I.T.A. Nos. 673 and 840 /Chny/2015 and I.T.A. Nos. 748 and 749 /Chny/2015, A.Y. 2011-12 and 2012-13, decided on 31.01.2017], one of the question raised before ITAT, Chennai was whether CIT(A) erred in deleting the tax...

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CBEC invites Comments on “Know Your Customer (KYC) norms”

Circular No. /2017-Customs

Board has also decided to simplify the norms for KYC verification in the light of introduction of Goods & Services Tax (GST) and in view of the emphasis of government on adoption of a unified identifier. Accordingly, in modification of the earlier instructions...

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Posted Under: Income Tax |

Acceptance of Transfer Pricing MAP and bilateral APA – Reg.

Clarification of India’s position on the acceptance of MAP and bilateral APA in cases of countries where Article 9(2) of OECD Model Tax Commentary is absent...

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Posted Under: Income Tax |

GST: 28 Latest FAQs on GST as replied by Govt on Twitter

I have submitted Bank guarantee and bond for export purpose. Now as per notification no. 37/2017- Central Tax, I am eligible to export under LUT. When can I take back BG & bond and instead submit LUT? ...

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Posted Under: Income Tax |

Indian Customs and Simplification of Customs Procedures- An Overview

Customs is an authority or tax collection wings are being appointed by the Government in every country for controlling and for collecting of tax on the flow of goods, including live animals and hazardous items into and out of a country....

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Posted Under: Income Tax |

Sale of Goods from Customs Bonded Warehouse

Chapter IX of the Customs Act, 1962 provides for deposit of goods into a customs bonded warehouse licensed under section 57 or 58 or 58A without payment of duty and the procedures to be followed with respect to the warehoused goods. Sub-section (5) of section 59 provides that the importer is at liberty to transfer the ownership of such go...

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Posted Under: Income Tax |

GST compliance for composition dealer

In last article on Composition scheme, we discussed the meaning of composition scheme and its related provisions. In this article we will discuss the compliance part of composition scheme....

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Posted Under: Income Tax |

How to Save Premium Cost on your Life Insurance Purchase

Buying a life insurance policy is the most convenient way to ensure the financial security of your loved ones. If you are planning to buy a life insurance policy, the amount of premium payable will be your major concern. The amount of premium is decided by the insurance companies considering various factors. While insurance companies [&he...

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Posted Under: Income Tax |

How to remove negative flag from my credit report

Negative flags on your credit report not only remind you of your past financial mistakes but they also ruin your future financial plans. Whether the negative remarks occur due to your own mistakes or due to the negligence on the part of the credit bureau, you must make efforts to get rid of them. After all your credit report affects the m...

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Posted Under: Income Tax |

Services provided to Facebook, Ireland is Export Service & eligible for cenvat refund

Commissioner of Service Tax Vs. M/s. Gupshup Technology India Pvt. Ltd. (CESTAT Mumbai)

They provide the SMS Aggregator services to M/s Facebook under an agreement for which the bills were raised to M/s Facebook, Ireland and the amount was received in convertible foreign currency. They filed four refund applications towards refund of unutilized cenvat credit of input services used for export of services in terms of Rule 5 of...

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Accommodation entry: Reassessment based on mere inquiry in case of 3rd party not justified

M/s Sharmilee Furnishing P. Ltd Vs. I.T.O (ITAT Delhi)

M/s Sharmilee Furnishing P. Ltd Vs. I.T.O (ITAT Delhi) There is no dispute to the fact that the department conducted inquiry in the case of third party where the name of the assessee was also written to have received accommodation entry and accordingly, the AO reached to a conclusion while recording reasons that the income of the assessee...

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Interest on loan cannot be allowed to be claimed against remuneration from Partnership firm

Shri. S. P. Hombanna Vs. Income-tax Officer (ITAT Bangalore)

Interest payment cannot be permitted to be deducted against the remuneration earned by the assessee. It was submitted that the assessee was a working partner of the firm and the income earned by the assessee has no correlation with the capital contribution made by the assessee....

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Budgetary support under GST to unit enjoying Excise exemption prior to 01.07.2017

Circular No.1060/9/2017-Central Excise (27/11/2017)

Procedure for manual disbursal of budgetary support under Goods and Service Tax Regime to the units located in States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim....

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SC held provisions of Section 45(1) of PMLA provision Imposing Twin Condition for granting Bail as unconstitutional

Nikesh Tarachand Shah Vs. Union Of India & Anr. (Supreme Court of India)

SC held that Section 45(1) of the Prevention of Money Laundering Act, 2002, insofar as it imposes two further conditions for release on bail, to be unconstitutional as it violates Articles 14 and 21 of the Constitution of India. ...

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Empanelment with IOB of Stock Auditors

APPLICATION FOR EMPANELMENT OF STOCK AUDITORS WITH INDIAN OVERSEAS BANK (IOB) Issued Date- 20/11/2017 – 10:00AM Last Submission Date- 30/11/2017 – 5:00PM Indian Overseas Bank invites application, in the prescribed format, for empanelment of firms of Chartered Accountants for Stock Audit. The firms fulfilling the criteria* may ...

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Posted Under: Income Tax |

Guideline for Drawing of samples for grant of drawback

Circular No. 47/2017-Customs (27/11/2017)

Since drawback payment is subject to finalisation of case after receipt of test report of samples, monitoring on regular basis at senior level should be undertaken so that samples are drawn only where necessary and the cases are closed in a timely manner and not later than thirty days from date of let export. Customs may draw samples in c...

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CBEC amends Notification No. 56/2000-Customs, dated 5th May, 2000

Notification No. 90/2017-Customs (27/11/2017)

Notification No. 90/2017-Customs CBEC hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 56/2000-Customs, dated the 5th May, 2000, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 399 (E)...

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American Income Tax Vs Japanese Income Tax and other interesting details

It was not unexpected to know from Mr. Ganesan, my friend for 40 years that one of his relatives has gone to Japan since he got a visa for work and I was equally delighted to know that he wanted me to write about Japanese income tax system. ...

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Posted Under: Income Tax |

Prohibition on export of Red Sanders wood in log form relaxed

Notification No. 40/2015-2020-DGFT (27/11/2017)

Prohibition on export of Red Sanders wood in log form has been relaxed for export of 186.588 MTs of Red Sanders wood, in log form, through State Government of Karnataka....

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Petition changing linking of Aadhaar with PAN withdrawn as issue already been decided by SC

Binoy Viswam vs. Union of India (Supreme Court of India)

Supreme Court questioned the maintainability of the petition filed by CPI Leader in which he challenged the provisions of section 139AA of the Income Tax Act,1961 which mandates linking of Aadhaar with PAN number for filing income tax returns (ITR). The petition was later withdrawn by the counsel appeared on behalf of the petitioner. Sup...

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Financial Impact of Auxiliary power in Thermal Power plant

Thermal power plants have played a vital role in improving the power and economic position in India. In every economy, power is a critical input for its development . Quality of life is measured by per capita power consumption, in developed countries per capita consumption of power is Higher than developing countries ,hence it is said tha...

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Posted Under: Income Tax |

74 Latest FAQs on GST as replied by GOI twitter handle

Question No. 1: I am restaurant owner and also have supply of some other services worth Rs. 1 lakh. Am I eligible for Composition scheme ? Answer: No. Please refer to Section 10 of CGST Act. Question No. 2: Challan for Job work in farm ITC-04 needs to be filed by 25th of next quarter. […]...

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CBEC relaxes requirement for mandatory e-sealing

Public Notice No. 150/2017-JNCH (27/11/2017)

Attention of the Exporters, Custom Brokers and all concerned are invited to the Board Circular No. 44/2017-Customs dated 18th November, 2017 and Public Notice No. 145/2017 issued vide F. No. S/12-Gen-82/2015 AM(X) (Part File) dated 10/11/2017....

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Compensation Cess on Coal under GST- Issues

In GST regime, Compensation Cess on Coal is levied at every point of sale while under the Central Excise corresponding clean energy cess on coal was levied only on Raw Coal, Lignite and Peat raised and dispatch from a coal mine. Issues The basis of incidence of the compensation cess in GST is same at […]...

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Posted Under: Income Tax |

CIT (Appeal) cannot introduce in the Assessment a new source of income

CIT Vs. Shri. B.P. Sherafudin (Kerala High Court)

It is not open to the Appellate Commissioner to introduce in the Assessment a new source of income and the assessment must be confined to those items of income which were the subject-matter of the original assessment....

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Registration U/s. 12AA(3) cannot be made before date of introduction of Sec. 12AA(3)

U.P. Distillers Association Vs. Commissioner Of Income Tax (Delhi High Court)

U.P. Distillers Association Vs. CIT (Delhi High Court) In this case Assessee urged that, in any event, the cancellation could not have been from inception but only from the date Parliament amended Section 12AA, i.e. from 01.10.2004. HC  held that  that the cancellation of registration in this case could have related back only from the [...

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Initiation of reassessment during pendency of Sec. 143(2) proceedings is invalid

Pradeep Sharma Vs. DCIT (ITAT Delhi)

Unless return of income already filed is disposed of, notice under section 148, cannot be issued, i.e., no reassessment proceedings can be initiated so long as assessment proceedings pending on the basis of the return already filed are not terminated....

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Section 153(2): Period of 60 days to be counted from whether date of vacation of stay or date of receipt of order

Saheb Ram Om Prakash Marketing (P) Ltd. Vs. CIT & Ors. (Delhi High Court)

Where in case of reassessment proceedings stay was granted by court and thereafter stay was vacated, the reassessment order was to be passed within 60 days from the date of vacation of stay, AO was not justified in saying that the period of 60 days should be counted from the date of receipt of order in office since it was not aware of the...

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Accrual basis accounting: Income of relevant F.Y. is to be accounted in same F.Y.

ACIT vs. Noida Toll Bridge Co. Ltd. (Delhi ITAT)

Advocate Akhilesh Kumar Sah ACIT vs. Noida Toll Bridge Co. Ltd. (Delhi ITAT) Mercantile based accounting requires income and expenditure of a financial year has to be taken in account in the same, concerned financial year. In ACIT vs. Noida Toll Bridge Co. Ltd. & vice versa [ITA Nos. 5246, 5247, 5248, 5249 and 5286/Del/2012, […...

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Was Demonetisation Justifiable?

For last so many days, there has been only one discussion – Was demonetisation a successful step to curb black money? “99% currency comes back to banks” has ignited a new flame to this discussion. Before discussing about whether demonetisation is a success or failure, let’s talk about what all fields did demonetisation hit –...

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Posted Under: Income Tax |

Kind of Assessment in GST

Assessment of GST returns have been defined in Chapter- XII under section 59 to 64 of the CGST Act, 2017. There are several types of assessment which have been categories as below:...

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Posted Under: Income Tax |

GST: 41 New FAQs asked and replied by twitter handle of GoI

Is ITC available on vehicle taken on lease for employee in a manufacturing company? No. It is not allowed as per section 17(5) of CGST Act, 2017....

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No Penalty u/s 271AAA If Assessee Admitted Income during Search & Paid Tax

Asst. Commissioner of Income-tax Vs. M/s. Sree Shanmugam Modern Rice Mills Pvt. Ltd. (ITAT Bangalore)

The appellant has admitted in his sworn statement about this undisclosed income, has filed the return of income showing the same as his income & has paid the necessary taxes on this. From the case laws mentioned above, it is clear that on similar facts of the case, penalty u/s 271AAA has been cancelled. Therefore, humbly following the cas...

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Sec. 11 deduction on fees for Providing Assistance to Banks & Financial Institutions

The Principal Commissioner of Income Tax (Exemptions) Vs. Institute for Development and Research in Banking Technology (Andhra Pradesh High Court)

Principal CIT (Exemptions) Vs. Institute for Development and Research in Banking Technology (Andhra Pradesh High Court) Held by ITAT The circumstances under which the services rendered by the appellant society to the Banks make clear that there is no profit motive in such activities because these activities were entrusted to the appellan...

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Non-payment of minimum wages to workers is unconscionable and unpardonable in law: HC

Central Secretariat Club Vs. Geetam Singh (Delhi High Court)

Central Secretariat Club Vs. Geetam Singh (Delhi High Court) Non-payment of minimum wages, to a workman is, therefore, unconscionable and unpardonable in law. It strikes at the very root of our constitutional framework, and belies the aspirations set out in the preamble thereto. The preamble to the Constitution is the Constitution. It is ...

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