"16 July 2018" Archive

Third GST Refund Fortnight to clear pending refunds

Get your pending GST refunds on exports of goods sanctioned quickly. CBIC is observing GST refund fortnight across all its field formations from 16th – 31st July, 2018 to deal exclusively with the pending GST refund claims (IGST & ITC). Refunds of GST have been a concern for the Government and Trade for the past […]...

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SEBI extends time limit for RTAs to send letters seeking PAN & bank details

SEBI/HO/MIRSD/DOS3/CIR/P/2018/115 (16/07/2018)

SEBI, vide circular No. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated April 20,2018, inter-alia, mandated RTAs to send a letter under Registered / Speed post seeking PAN and bank details within 90 days of the said circular and two reminders thereof after the gap of 30 days....

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Withdraw appeals consequent to CBDT Circular No. 3/2018

F.No.279/Misc.M-73/2018-ITJ (16/07/2018)

CBDT has issued Circular No. 3/2018 dated 11.07.2018 enhancing the monetary limits for filing SLPs/appeals before Supreme Court, High Courts and ITAT. Consequently, SLPs/appeals pending before these fora which are covered by the said Circular are required to be withdrawn/not pressed on priority so that the Department can focus on high val...

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No addition for jewellery found within CBDT circular prescribed limit

Shri Ashok Jain Vs ACIT (ITAT Mumbai)

Shri Ashok Jain Vs ACIT (ITAT Mumbai) In the present case the assessee has not filed any wealth tax returns. The Hon’ble Rajasthan High Court in the case of Satya Narain Patni (supra) noted that the jewellery found during the search was within the limits prescribed by the CBDT circular and in the first instance, […]...

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Tax Compliance & Planning For Salaried Individuals

The Article aims at creating awareness amongst salaried employees about various tax compliance and possible tax planning over the year. We are in the month of June wherein the last financial year (FY) 2011-12 has gotten over and due date to file Return of Income stares in the face and also it is time to submit your Investment declaration ...

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Penalty U/s. 271(1)(c) invalid if Not specifically mentioned in assessment order as to which limb penalty was imposed

ABR Auto (P) Ltd. Vs ACIT (ITAT Delhi)

As neither the assessment order nor the show cause notice stated the specific charge of alleged concealment and/or furnishing of inaccurate particulars of income vis-a-vis addition made by AO, entire penalty proceedings under Section 271(1)(c) were vitiated....

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AO cannot determine fair rent on the basis of extraneous consideration

Vidya Education Vs The Income Tax Officer (ITAT Delhi)

Vidya Education Vs ITO (ITAT Delhi) The operative words in Section 23(1)(a) are the sum, for which, the property might reasonably be expected to let from year to year. These words provide a specific direction to the Revenue for determining the fair rent. The A.O. having regard to the aforesaid provisions is expected to make […]...

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CBIC Notifies Change in BCD on Certain Textile Goods

Notification No. 53/2018-Customs [G.S.R. 651 (E)] (16/07/2018)

CBIC notifies changes in BCD on Certain Textile Goods vide Notification No.53/2018-Customs dated 16th of July, 2018. Vide notification CBIC amended duty rates on certain textile goods....

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Govt notifies maximum safe axle weight of each axle type of transport vehicles

Notification No. S.O. 3467(E) (16/07/2018)

Central Government hereby notifies the maximum safe axle weight of each axle type in relation to the transport vehicles (other than motor cabs), having regard to the size, nature and number of tyres, as under :—...

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Deduction of Interest on Home Loan From House Property income

Section 24(b) of the Act allows deduction from income from houses property on interest on borrowed capital on Home Loan as under:- (i) the deduction is allowed only in case of  house property which is owned and is in the occupation of the employee for his own residence.However, if it is actually not occupied by […]...

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Interest on Home Loan on Self Occupied House –Tax benefits

If capital is borrowed for reconstruction, repairs or renewals of a house property), then the maximum amount of deduction on account of interest is Rs. 30,000 (and not Rs. 2,00,000)....

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GST on Sale of used Motor Vehicle by a Registered Person other than dealer

Under GST regime, question is arising whether sale of goods lying in the fixed assets of a registered person will be chargeable to GST or not. We have analyzed the question from the view point of taxability of Sale of Used Car by a Registered Person who is not into the business of sale and purchase of used cars, same is as under:...

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Last Moment Tax Saving Investment options Under Section 80C

There are a number of tax saving instruments that are covered by section 80C. The most popular ones include Bank Fixed Deposits, National Savings Certificates (NSC), Equity Linked Savings Scheme (ELSS), National Pension Scheme (NPS), Repayment of Housing Loan (principal amount), Public Provident Fund (PPF), Voluntary Provident Fund (VPF) ...

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Madras HC on Invocation of Section 111(m) of Customs Act

M/s. Priyanka Enterprises Vs The Joint Commissioner of Customs (Madras High Court)

High Court held that Section 111(m) of Customs Act can only be invoked if goods do not correspond in respect of value or any other particular with the Entry made under the Act...

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Need to remove penal provisions in respect of Income Tax Returns due dates

Assessees as well as tax-practitioners are very much worried about the penal provisions in section 234F of the Income Tax Act, 1961 as well as harsh provisions in respect of newly introduced section 80AC of the Act where return of income is not furnished upto due date under section 139(1) of the Act....

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Double Benefit on Taxes on Housing Loan

The Income Tax Act provides deduction under section 80C against Principal Repayment and exemption under Section 24(b) on Interest payment of Housing Loan. Article explains tax benefit on Housing Loan taken and possession received in the same year and also when possession received in next year....

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Unless a cause of action arises to petitioner, questions raised cannot be determined

M/s Global Agency Vs General Manger & Ors (Karnataka High Court)

M/s Global Agency Vs General Manger & Ors (Karnataka High Court)  Unless a cause of action arises to the petitioner-assessee by an impugned action notice or order by the Respondents-Department, the academic questions raised by the petitioner-assessee cannot be determined under Article 226 of the Constitution of India. The writ petiti...

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Tax Benefits on Repayments of Installment of House

To encourage enhanced investment in house properties, the Government has increased the tax benefits on home loan. It helps you to reduce your taxable income, thereby paying fewer taxes. Section 80C provides for deduction of the amount paid as part payment or any installment in respect of home loan. Home loan should be for purchasing [&hel...

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Details of GST in Income Tax Returns

Krishna the due date to file income tax returns for some taxpayers for the year 2017-18 is 31st July. It is said that in the Income tax Returns, GST details are also required to be given. Who needs to give these details and how these details are to be given?...

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Notice U/s 143(2) issued prior to furnishing of return in response to Notice U/s. 148 is invalid

Halcrow Group Ltd. Vs ADIT (ITAT Delhi)

ITAT held that since the notice u/s 143(2) of the Act was issued prior to the furnishing of return by the assessee in response to the notice u/s 148 of the Act. Therefore, the notice issued u/s 143(2) of the Act was not valid and the reassessment framed on the basis of said notice deserves to be quashed. We, therefore, quash the reassessm...

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Mere non production of Director of share holder company cannot justify addition u/s 68

Moti Adhesives Pvt. Ltd Vs. ITO (ITAT Delhi)

AO has remained sited with folded hands and has not made any independent enquiry from concerned AO of share holder company which itself is sufficient to knock off the addition made. On basis of this I have no hesitation to delete the additions of Rs 25,00,000 and Rs 45,000 made u/s 68...

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Submitting Form No. 15G & 15H -Points to Remember

Very often, readers keep enquiring about the submission of forms No. 15G/15H to the banks or others payer so that interest could be received without deduction of tax at source (TDS). In this column, I am covering all about Form No. 15G & 15H and hopefully the detailed elaboration hereunder would provide a comprehensive picture about the s...

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No Service Tax under GTA Services on transportation of Cars by Car dealer to Customers

Rohan Motors Ltd Vs C.C.E (CESTAT Delhi)

The appeals are directed against the Order in Original No. 20/2013 dated 11.03.2013 as well as Order-in-Original No.66/2013 dated 07.11.2013. The appellant is a dealer of M/s. Maruti Udyog Ltd. (in short hereinafter called as “MUL”) in respect of the cars manufactured by MUL...

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Notice issued under Section 143(1)(a) of Income tax act 1961

What is the meaning of notice issued under Section 143(1)(a) of Income tax act 1961. As per latest amendments and provisions of income tax act with the Assessment Year 2018-19, there are various new provisions related to income tax proceedings and assessment procedure being included. In order to this there is a new Section which […...

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Residential Status & scope of total Income

Residential Status of an Individual (Sec 6(1) -An individual is resident in India if he satisfies any one of the following two conditions: i. He is in India for 182 days or more in the relevant previous year or ii. He is in India for 60 days or more during the relevant previous year and for 365 days or more during 4 years immediately prec...

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SC on Rebuttal by Accused against Presumption in Cheque Bounce Cases

Kishan Rao Vs Shankargouda (Supreme Court Of India)

Kishan Rao Vs Shankargouda (Supreme Court Of India) In the present case, the trial court as well as the Appellate Court having found that cheque contained the signatures of the accused and it was given to the appellant to present in the Bank of the presumption under Section 139 was rightly raised which was not […]...

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Tips for Filing Income Tax Returns

Income-tax return is a legal document and it should be filed by the assessee with due care and caution. There should be no corrections or overwriting and it should be properly signed and verified by the person authorized to do so under the provisions of the Income-tax Act. The following important points may be taken care of while filling ...

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Removal of Directors Disqualification without Revival of Company

The drastic step of Mass Disqualification of Directors and deactivation of DINs by ROC has left the whole Industry flabbergasted and startled. This is not a road block but a beginning in the line with Compliance module. Directors are being provided with various opportunities to get their Disqualification Removed and DIN Restored even if t...

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Declaration By Beneficial & Significant Beneficial Owners Section 89 & 90 of Companies Act 2013

This write up is prepared in regards to the newly introduced/ substituted provisions under the Companies Act, 2013 (herein referred thereafter ‘the Act’) i.e. Section-90 (Register of significant Beneficial Owners in a Company) herein enforced[1] and the Companies (Beneficial Interest and Significant Beneficial Interest) Rules, 2018 (...

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Cyrus Mistry-Tatas feud: Rights of Minority shareholders compromised??

NCLT, Mumbai Bench dismissed the petition filed by Cyrus Mistry who incidentally owns about 18.3% (including preference capital) of Tata Sons Limited. NCLT ruled that Tata Sons Limited has all the rights to remove its Executive Chairman and NCLT found no merit in Mistry’s  allegations of operational mismanagement and oppression of mino...

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Key Proposed Amendments by GST Council

Recently on 10th July 2018 GST Council has released proposed amendments to GST law, seeking comments from stakeholders by 15 July 2018. The Proposal comprises 38 amendments to the CGST Act, 6 amendments to IGST Act and 2 amendments to GST (Compensation to States) Act....

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GST on Supply of Used Vehicle

Normally GST is charged on the transaction value of the goods. However, in respect of second hand goods/car , a person dealing is such goods may be allowed to pay tax on the margin....

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Applicability of GST on out and out sale – i.e. purchase from X country and direct sale to Y country

After one year of GST implementation in India, one can observe that law of GST is based on law of central excise and service tax whereas GST compliance is based on law of sales tax. In spite of this, there are some transactions where related legal provisions are not clear and therefore, call for interpretations. One of the transactions is...

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All about e-Form DIR 3- KYC

Introduction To E-Form DIR 3- KYC- MCA vide Notification dated 5thJuly, 2018 has amended Companies (Appointment and Qualification of Directors) Rules, 2014 by inserting Rule 12A and made Directors KYC mandatory which is effective from 10th July 2018....

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HRA Vs. Rent Free Accommodations (RFA)

House Rent Allowance (H.R.A.) results in tax savings because accounting under Income tax act is direct exemption based. However, accounting of Rent Free accommodation is valuation based taxation and added to total income of employee presumptive basis. Please note Rent-Free Accommodation cannot be taxed if Salary is NIL The principles of v...

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Preamble, Tittle and Applicability of GST Laws

Article explains Preamble, Tittle and Applicability of Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017, Union Territory Goods and Services Tax Act, 2017, Goods and Services Tax (Compensation to States) Act, 2017 and [Name of State E.G. Bihar, Delhi, Up Etc.] Goods and Services Tax Act, 2017....

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Procedure for interception of conveyances for inspection of goods in movement

This Article is about how interception of conveyances is done by the GST officer for inspection of goods. Also we also see detailed analysis of the Sections, Rules dealt with this and the summarized procedure of it with all forms....

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E-form DIR-3 KYC to update database of Directors with MCA

Every Director of a Company is required to filed E-for DIR-3KYC on or before April 30 every FY for DIN as on March 31 immediate previous year, otherwise delayed fee of Rs. 5,000/- shall be charged. Further, For the current FY (2018-2019), no fee shall be chargeable till August 31, 2018 and delayed fee of Rs 500 shall be charged on or aft...

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eForm DIR-3 KYC – Things to know before filing

A.  Law(s) Governing the eForm DIR-3 KYC i. Company Law Rules related to eForm DIR-3 KYC eForm DIR-3 KYC is required to be filed pursuant to Rule 12A and Rule 11(2) and (3) of The Companies (Appointment and Qualification of Directors) Rules, 2014 as amended by  Companies (Appointment and Qualification of Directors) fourth Amendment Rule...

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Form 15G / Form 15H- File details correctly in TDS return

Centralized Processing Cell (TDS) has observed from its records that Flag B is not being raised for 15G/ H Forms in quarterly TDS Statements filed. ...

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Don’t Believe These Tax Accounting Myths

There is a lot of false information out there about what you can and can't do on your annual taxes. Here are some of the biggest myths that plague the system and what the truth behind them actually is: ...

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November 2020