"20 March 2019" Archive

Why Agriculture, Rural Development & Healthcare Require a GST Council Type Structure?

The GST was enabled by a Constitution Amendment which was unanimously approved by both the Houses of Parliament. Several legislations to implement the GST were passed by the Parliament. Laws relating to the State GST (SGST) were approved by all the State Legislatures....

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Income Tax Department sets up control room for NER for LS Election

The Income Tax Department (Investigation), NER has prepared itself to deal with any reported movement of unaccounted money ahead of the Lok Sabha elections. Pursuant to the notifications for holding Lok Sabha Elections 2019 by the Election Commission of India(ECI). ...

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Deduction U/s 80IB not allowable on lease rent of industrial undertaking

Navas M. Meeran Vs ACIT (ITAT Cochin)

Navas M. Meeran Vs ACIT (ITAT Cochin) Conclusion: Lease rent received by assessee by letting out the industrial undertaking was not having any direct connection with the manufacture or production of an article or thing by assessee and the same could not be considered as business income eligible for deduction u/s. 80IB. Held: Assessee had ...

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CIT(E) cannot examine Income application during Trust Registration U/s. 12AA

Fateh Chand Trust & College Committee Vs CIT (Exemption) (ITAT Agra)

Fateh Chand Trust & College Committee Vs CIT (Exemption) (ITAT Agra) Department Can Examine Only Object of the Trust and Not Application of Income at the Time of Granting of Registration of Trust FACTS – Assessee is society, engaged in running and maintenance of Fateh Chand Inter College. College is fully aided by UP Government [&he...

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TDS Not deductible on Passenger Service Fees Collected by Airlines

ACIT Vs Spice Jet Ltd. (ITAT Delhi)

SF cannot be considered to be a payment made by the assessee airline. PSF is a payment made by the passenger which is only routed through the assessee airline. It is undisputed that the amount handed over by the assessee airline to the Airport Operators has also not been claimed as expenditure by the asssesee in its books of account....

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Addition for non-existent income from carbon credits is not acceptable

M/s. Sri Chamundeswari Sugars Ltd. Vs DCIT (ITAT Bangalore)

Assessee submitted that they have not received any carbon credit during the year under consideration i.e. AY 2012-13. Assessee submitted that addition made by AO on account of non-existence income ought to be deleted. ...

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No addition U/s 68 in absence of incriminating material during search

ACIt Vs M/s Moolchand Steels Pvt. Ltd. (ITAT Delhi)

No addition could have been made u/s 68 of the Act in view of the fact that no incriminating material was found during the course of search to which this impugned addition could be related....

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Life Cycle of Partnership Firm: From Initiation to Taxation each year

Article explains Registration Procedure Taxation of Partnership Firms /LLP which includes Income Tax Rate applicable and Provisions related to -Interest and Remuneration to Partners/Designated Partners, Conditions for assessment as a firm, Partners’ assessments, Losses of the firm. -Due dates for filing return of firm, Allowability of r...

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Opening Liaison Offices in India

Prospective companies and investors looking to enter India must carefully consider their options for investment and available avenues for establishing a business presence in India. Foreign Investor or Foreign companies can open a liaison office in India for promoting and facilitating the parent company business activities and which can ac...

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Analysis of the 34th GST Council Meeting Decisions

Before analyzing the 34th GST Council meeting decisions, let us look at the key decisions of the 33rd GST Council meeting. The 33rd GST Council meeting held on 24th February 2019 proposed the rates of tax for the Construction sector being: 1. 5% without ITC on residential properties outside affordable segment 2. 1% without ITC […]...

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Supply to/from Duty Free Shops- GST Implication

There has been a confusion as to whether supply by duty-free shops or supply to duty-free shops in India attracts GST or not. This paper is an attempt to understand the legal position in the light of prevailing law and recent judgments. Under the provisions of erstwhile Central Sales Tax Act, an issue had arisen […]...

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Start your business as a Sole Proprietorship Firm

In this write I am sharing my knowledge and understanding about Proprietorship Firm,  Sole Proprietorship is a business or an establishment which is run by a single person. He or she, in whose name the business is run, is responsible for the enterprises. The sole proprietorship type is the favorite business form for small entrepreneurs. ...

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Provisions of Section 68 Cannot be applied to Sundry Creditor

DCIT Vs Allied Infra suppliers (ITAT Cuttack)

The provisions of section 68 cannot be applied to sundry creditors and the assessee cannot be applied to sundry creditors and the assessee cannot be asked to prove the 3 ingredients of cash credits in respect of sundry creditors....

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Impact of Supreme Court decision on PF wages and its impact

Most of the establishments consider Basic wages and Dearness Allowance for PF contribution by the employee and the employer, since The EPF Act is in force. (more than 65 years.) The Honorable Supreme Court has given a decision on 28-02-2019 about which allowances are to be included in addition to Basic + DA, in PF wages for contributio...

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Section 54 not restrict exemption to sale of one residential house

ACIT Vs Mr. Bipin N. Sagar (ITAT Mumbai)

ACIT Vs Mr. Bipin N. Sagar (ITAT Mumbai) Appellant has stated that the transfer is of one residential house. The three adjoining flats were merged and made it one residential house not by the Appellant but by previous owner. The Appellant ever since the date of purchase used it as one residential house. There is […]...

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Deemed dividend U/s. 2(22)(e): Advance in normal course of business

Sri Ajay Kumar Khatore Vs DCIT (ITAT Ranchi)

 Since trade advances obtained by assessee from its sister concern were in the nature of commercial transactions, would not fall within the ambit of the word ‘advance’ in section 2(22)(e)....

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Penalty U/s. 271B justified for submitting Bogus audit report to get bank loan

Brij Gopal Chauhan Vs. ITO (Delhi High Court)

 Where assessee, in order to get a bank loan, submitted a bogus audit report from CA and showed fake turnover in his return of income, imposition of penalty under section 271B for non-compliance of section 44AB was justified....

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Validity of addition for share application money merely based on surmises not valid

Pr. CIT Vs Narang Construction & Finance (P) Ltd. (Delhi High Court)

Pr. CIT Vs Narang Construction & Finance (P) Ltd. (Delhi High Court)  The materials on record showed not mere superficial details like PAN, ROC, etc., but further facts relating to the bank accounts of the share applicants were also there. The share applicants were entering into proper commercial transactions and were not per se fo...

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CBDT notifies SEBI (Mutual Funds) Regulations, 1996 U/s. 9A(9)(e)

Notification No. 27/2019-Income Tax [S.O. 1420(E).] (20/03/2019)

In exercise of the powers conferred by clause (e) of sub-section (9) of section 9A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) as the regulation for t...

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CBDT notifies HUDCO U/s. 194A(3)(iii)(f)

Notification No. 26/2019-Income Tax [S.O. 1399(E)] (20/03/2019)

Central Government hereby notifies the Housing and Urban Development Corporation Ltd. (HUDCO), New Delhi for the purpose of Section 194A(3)(iii)(f) of Income Tax Act, 1961....

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GST Rate on works contract service in respect of Original Works pertaining to construction of a Low Cost House in Affordable Housing Project

In re Puranik Construction Pvt. Ltd. (GST AAR Maharastra)

:- The question/issue before Your Honor is eligibility of Notification 01/2018-Central Tax (Rate) dated 25.01.2018 which provides for concessional rate of GST @ 12% on supply of works contract service in respect of Original Works pertaining to construction of a Low Cost House in an Affordable Housing Project' (AHP)....

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In absence of Reasons for invoking rule 8D Disallowance U/s. 14A not valid

Pr. CIT Vs Moonstar Securities Trading & Finance Co. (P) Ltd. (Delhi High Court)

Pr. CIT Vs Moonstar Securities Trading & Finance Co. (P) Ltd. (Delhi High Court) In this case for both years, the assessee had offered amounts as disallowance claiming them to be expenditure for tax exempt income. The assessing officer merely proceeded to reject such amount as expenditure and straightaway applied rule 8D without adduc...

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Extension of IGST & Cess exemption under AA, EPCG & EOU scheme upto 31.03.2020

Notification No. 57/2015-2020-DGFT [S.O. 1400(E)] (20/03/2019)

Amendments to Foreign Trade Policy 2015-2020 - Extension of Integrated Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation, EPCG and EOU scheme upto 31.03.2020....

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Framework for Utilization of Regulatory Fee Foregone by SEBI

SEBI/HO/CDMRD/DMP/CIR/P/2019/40 (20/03/2019)

SEBI has reduced the regulatory fee on Stock Exchanges with respect to turnover in agricultural commodity derivatives. The objective was to reduce the cost burden on farmers/FPOs from the amount saved by the Exchanges due to reduction of regulatory fee....

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Consultation Paper Issuance of shares with Differential Voting Rights [DVRs]

Securities and Exchange Board of India 1. BACKGROUND 1.1. There is increasing debate about the need to enable issuance and listing of shares with differential voting rights, commonly known as DVRs in India; and dual class shares or DCS in the international context. Such shares have rights disproportionate to their economic ownership. In p...

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Reporting & Accounting of Central Govt Transactions of March 2019

RBI/2018-19/143DGBA.GBD.No.2394/42.01.029/2018-19 (20/03/2019)

Reserve Bank of India RBI/2018-19/143 DGBA.GBD.No.2394/42.01.029/2018-19 March 20, 2019 All Agency Banks Dear Sir / Madam, Reporting and Accounting of Central Government Transactions of March 2019 Please refer to Circular DGBA.GBD.No.2324/42.01.029/2017-18 dated March 19, 2018 advising the procedure to be followed for reporting and acco...

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Some thoughts on Fiscal Federalism

Reserve Bank of India Date : Mar 19, 2019 Some thoughts on Fiscal Federalism (Shri Shaktikanta Das, Governor, Reserve Bank of India – March 19, 2019 – Delivered at the launch of the book ‘Indian Fiscal Federalism’, Mumbai) I am honoured to be invited for the launch of the book “Indian Fiscal Federalism” author...

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Compilation of R-Returns: Reporting under FETERS

RBI/2018-2019/145A.P. (DIR Series) Circular No. 25 (20/03/2019)

In order to facilitate compilation of estimates of bilateral trade in services, it has been decided to incorporate an additional field for capturing the country code of ultimate exporter/importer in the BoP file-format under FETERS. In case of export of services, bank may use the transaction information available with them to report count...

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GST payable on services by Inner Wheel Clubs: West Bangal AAAR

In re Association of Inner Wheel Club of India (AAR GST West Bangal)

In re Association of Inner Wheel Club of India (GST AAAR, West Bangal) Goods and Services Tax is levied on intra-State and inter-State supply of goods and services. According to Section 7 of GST Act, the expression ‘supply’ includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, [&he...

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SOP consequent to automation for export & import through NSICT/NSIGT, GTI & JNPCT

Public Notice No. 28/2019-JHCH (20/03/2019)

Office of the Commissioner of Customs NS II, Mumbai Zone-II Jawaharlal Nehru Custom House, Nhava Sheva, Tal: Uran, Dist: Raigad, Maharashtra- 400707 F.No.S/12-Gen-60/2018-19/ AM (X) JNCH Dated: 20.03.2019 Public Notice No. 28/2019-JNCH (Amendment to Public Notice No. 13/2019) Subject: Standard operating procedure consequent to commencemen...

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Customs Rate of Exchange of Foreign Currency wef 21.03.2019

Notification No. 24/2019-Customs (N.T.) (20/03/2019)

Customs Rate of Exchange of Foreign Currency Conversion wef 21.03.2019 notified vide Notification No. 24/2019 – Customs (N.T.) dated 20th March, 2019....

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Export and Import of Indian Currency

RBI/2018-19/144A.P. (DIR Series) Circular No. 24 (20/03/2019)

Attention of Authorised Persons is invited to Regulation 8 of Foreign Exchange Management (Export and import of currency) Regulations, 2015, in terms of which a person may take or send out of India to Nepal or Bhutan and bring into India from Nepal or Bhutan, currency notes of Government of India and Reserve Bank of India for any amount i...

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Exemption from provisions of section 14(3) of FCRA, 2010

No. II/21022/58(79)/2019-FCRA(MU) (18/03/2020)

In view of repeated representations made by many such associations, it has been decided to give a one-time exemption in public interest to such associations from the restrictive condition of section 14(3) to enable them to apply for registration within three months from the issuance of this notice. Government has further decided that for ...

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Last Opportunity to get Eleven Benefits of Filing Income Tax Return for Ay 2018-19

The income tax return (ROI) should be filed by the person even though their gross total income is less than basis exemption limit. The return filing has been made electronically by the income tax department with no requirement of attaching the supporting documents related to the return. From finance Act 2016, Belated return (under section...

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IBBI rejects Registration as IP for Pendency of criminal proceedings

NA (20/03/2019)

As per regulation 4(g) of the Regulations, no individual shall be eligible to be registered as an IP if he is not a fit and proper person. Among others, integrity, reputation and character are considered to determine if an individual is a fit and proper person. I have perused the provisions of section 498A of […]...

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Advance Authorization Scheme

Advance authorization is an order issued to endorse the import of duty-free inputs which are physically integrated into the export product. Its provisions extend to fuel, oil, energy, and catalysts which are consumed or utilized to obtain export products. This article looks at the regulations connected with Advance Authorization Scheme. W...

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Summary of 34th Council Meet on GST Rate on Real Estate Sector

Summary of outcome of 34th Council Meet on GST Rate on Real Estate Sector The much awaited meet of the GST Council to decide on modalities for GST applicability on Real Estate Sector was held on 19th March, 2019 at New Delhi. This was 34th time the GST Council met. The Council in today’s meeting […]...

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Recommendations of 34th Council meeting held on 19th March 2019

GST Council’s 34th Meeting was held on 19th March 2019 at New Delhi. Therein, it discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. The […]...

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Invest To Decrease Your Tax Burden Before 31st March 2019

As the Financial Year 2018-19 is about to end. With the end of the accounting year/ financial year 31st March is the last date for various compliances, actions and decisions to be taken. One such decision is tax planning and decisions regarding Investment in various taxes saving schemes which results into deduction in Income tax […...

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New GST Composition schemes for Service Providers- Actually New or Just another Tax Rate?

On 07-03-2019 government introduced a new GST Composition scheme by Notification No. 02/2019 of CGST (rate) 2017 with a new rate for the service sector. This notification is effective from 1.4.2019....

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Application of Companies Act, 2013 Act to foreign companies

Every foreign company shall, within thirty days of establishment of its place of business in India, in addition to the particulars specified in sub-section (1) of section 380 of the Companies Act, 2013 also deliver to the Registrar for registration, a list of directors and Secretary of such company. A foreign company shall, within a [&hel...

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Highlights of Maharashtra Settlement of Arrears Scheme (Amnesty)

Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fees Ordinance 2019 The Maharashtra Goods and Services Tax Act, 2017 has been made applicable in the State with effect from the 1st July 2017. Prior to the implementation of GST in the State various tax laws were in force, some of the tax laws […]...

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Analysis of Newly inserted section 49A of CGST Act 2017

CBIC Notifies applicability of CGST (Amendment) Act, 2018 with effect from 1st February 2019 vide Notification No. 02/2019 Central Tax Dated 29.01.2019. One of the important amendment was made in Section 49 CGST Act, 2017 by introducing new section 49A & 49B under The CGST Act 2017. After section 49 of the principal Act, the follow...

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Form ADT-1 (Appointment of Auditor)- Filing Procedure

FORM ADT-1 SECTION 139, 140 OF THE COMPANIES ACT, 2013 & RULE 4(2) OF THE COMPANIES (AUDIT AND AUDITORS) RULES, 2014 This article will provide you brief understanding about Form ADT-1. Let’s start with its purpose of filing. Form ADT- 1 is filed by every company to intimate the Registrar Of Companies about the appointment […]...

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GST Appellate Authority cannot condone Delay beyond 30 Days: HC

M/s Shanti Eat Udyog Surir Kala Tehsil Mant District Mathura Vs State of U.P. (Allahabad High Court)

M/s Shanti Eat Udyog Surir Kala Tehsil Mant District Mathura Vs State of U.P. (Allahabad High Court) Admittedly, the period of limitation to file a first appeal under Section 107 of the U.P. Goods and Services Tax Rules, 2017 is three months and the period for which the delay may be condoned is thirty days […]...

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A Basic Guide On Two-Wheeler Insurance

If you understand the nitty-gritty of bike insurance, then you not just save money but also take good care of your motor. For those who are new to the motor insurance concept, this article highlights the key elements related to it....

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December 2020