"April, 2019" Archive

CBDT to share ITR Data with GSTN

F. No. 225/105/2019/ITA.II (30/04/2019)

CBDT  hereby directs that Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information respecting  assessees to the Nodal Officer, GSTN....

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GST exemption on upfront amount payable in installments for long term lease of plots

Circular No. 101/20/2019-GST (30/04/2019)

Representations have been received by the Board seeking clarification regarding admissibility of GST exemption on the upfront amount which is determined upfront but is paid or payable in installments for long term (thirty years, or more) lease of industrial plots or plots for development of financial infrastructure under Notification 12/2...

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GST Applicability on Seed Certification Tags

Circular No. 100/19/2019-GST (30/04/2019)

The matter has been examined. It is seen that the process of seed testing and certification followed in the state of Tamil Nadu, as prescribed in the Seeds Act, 1966 and elaborated in the Manual on Seed Production and Certification, published by Centre for Indian Knowledge Systems, Chennai, involves the following steps:...

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No disallowance U/s. 14A for interest to partners as per partnership deed

M/s ASK Partners Vs ACIT (ITAT Jaipur)

M/s. ASK Partners Vs ACIT (ITAT Jaipur) The interest paid by the firm and claimed as deduction is simultaneously susceptible to tax in the hands of its respective partners in the same manner. In the same vain, the firm is merely a compendium of its partners and its partners do not have separate legal personalities under […]...

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No Tax on Amount received by a partner on his retirement from firm

Pr. CIT Vs Smt. Hemlata S Shetty (Bombay High Court)

Pr. CIT Vs Smt. Hemlata S Shetty (Bombay High Court) Amount received by a partner on his retirement and the partnership firm is not subjected to tax in the retiring partner’s hands in view of Section 45(4) of the Act. The liability, if any, to pay the tax is on the partnership firm in view […]...

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Employees Benefits provisions allowable in book profit computation

Mercury Car Rentals Pvt. Ltd. Vs DCIT (ITAT Kolkata)

Mercury Car Rentals Pvt. Ltd. Vs DCIT (ITAT Kolkata) It is noted that the provisions in respect of gratuity, leave encashment, ex-gratia & bonus were created on actuarial basis and had been estimated with reasonable certainty. Accordingly such provisions cannot be said to be provisions of unascertained liabilities so to add it back un...

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Income Tax on Interest Income of Non Resident

TAXATION OF INTEREST ON DEPOSITS MADE BY NON RESIDENTS IN INDIAN BANKS AND ON LOANS GIVEN BY FIIs/FPIS TO INDIAN CORPORATES Q.1 Whether interest income of non resident individual with regard to the deposits made in any bank in India is taxable in India ? Ans. Yes, the interest income of non resident individual whether […]...

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Posted Under: Income Tax |

Fast Track Merger A Complete Guide

Fast Track Merger (Section 233)  is that Form of merger which can be carried out without complying provisions of Section 230 & Section 232 of Companies Act 2013. TYPES OF COMPANIES THAT CAN GO FOR FAST TRACK MERGERS 1. Two or more small companies, 2. Holding and its wholly owned subsidiary Company 3. Such class […]...

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Posted Under: Income Tax |

Significant Beneficial Ownership (SBO)

The Ministry of Corporate Affairs (MCA) has amended the Significant Beneficial Ownership (SBO) rules for companies under the Companies Act, 2013 which would now help identify entities that might be controlled from outside the country, It has been titled the new amended SBO rules as Companies (Significant Beneficial Owners) Amendment Rules...

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Posted Under: Income Tax |

GST payable on membership/admission fees collected by Rotary Club

In re Rotary Club of Mumbai Queens Necklace (GST AAR Maharashtra)

In re Rotary Club of Mumbai Queens Necklace (GST AAR Maharashtra) Q.1:- The questions/ issues before Your Honor for determination is whether the amount collected as membership subscription and admission fees from members is liable to GST as supply of services? Answer :- Answered in the affirmative, in view of the observations/discussions ...

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No law barring Partners to draw Remuneration from multiple Firms

Ms. Sachi Sarees Vs ACIT (ITAT Kolkata)

Ms. Sachi Sarees Vs ACIT (ITAT Kolkata) There is no law which prohibits a person to work in more than one partnership firms and draw remuneration therefrom. All that Section 40(b) requires is that the remuneration should be paid to a working partner and there is no prohibition either in the Income-tax Act, 1961 or […]...

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ITC on Repairing &Furniture & Fixture repairing work to Hotel

In re M/s Rambagh palace Hotels Pvt. Ltd. (GST AAR Rajasthan)

In re M/s Rambagh palace Hotels Pvt. Ltd. (GST AAR Rajasthan) Q1 Building Repair Work Q1.1 Whether GST paid on building materials, such as cement, concrete, bricks, cement or marble or stone slabs or tiles, paint, polish and any other building materials meant for repair of building shall be available for ITC? Answer- ITC will […]...

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New ITC Set Off Rules under 88A | Relaxation from existing draconian proviso

Brief Background of Input Tax Credit and it’s provision Input Tax Credit “Input Tax” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both and includes 1. the integrated goods and services tax charged on import of […]...

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Posted Under: Income Tax |

Extension of Due Date of INC 22A

MCA introduced new e-form INC 22A– also known as e-Form ACTIVE (Active Company Tagging Identities and Verification) by issuing Companies (Incorporation) Amendment Rules, 2019. Which was last date of filing of this form 25th April 2019; failing to file could have entailed a penalty of INR 10,000. Government has finally extended the due d...

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Posted Under: Income Tax |

Penalty U/s. 271(1)(c) justified on income disclosed during survey

Kashish Enterprise Vs ITO (ITAT Rajkot)

Assessee did not disclose income voluntarily but it was disclosed in pursuance to survey conducted under section 133A. Had there not been survey, the assessee would not have offered such undisclosed income, penalty under section 271(1)(c) was correctly levied by AO....

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Uttar Pradesh RERA Compliances Quarterly and Annually with recent changes

Additional Disclosures on the Webpage on the website of Authority and Project Land Site; in addition to Section 4, 11, of the RERA Act and Rule 3, the promoter shall upload following details on his webpage on the website of the Authority;...

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Posted Under: Income Tax |

Changes in taxation of Works contracts service under Real Estate

Arjuna, recently the new taxation procedures and rates were  notified in relation to real estate industry. These notifications have also brought changes in the construction services provided in relation to real estate, which are made effective from 1st April 2019....

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Posted Under: Income Tax |

All about EPF Series-1

The EPF was established by the Employees Provident Fund Organization (EPFO) of India, a statutory body of the Government. It states that every organization having 20 or more permanent employees across different departments working, should compulsorily register with the EPFO. In the case of an organization which employs less than 20 employ...

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Posted Under: Income Tax |

Income Tax benefits of buying property jointly

Buying a house is a dream for millions of people in India. The government has provided various tax benefits to individuals to encourage them to buy a house property under the ‘housing for all’ initiative. One of the important things to note is that if the property is held jointly, individuals can receive additional tax [&helli...

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Posted Under: Income Tax |

5 Things Every CA Must Do To Get More Clients

Needless to say, the professional credibility of a Chartered Accountant is often gauged and evaluated by the number of clients he or she is working with. Although, CA, as a profession is a high paying career choice, there are many aspects that need to be taken care of for an individual to get hold of […]...

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Posted Under: Income Tax |

Companies (Acceptance of Deposits) Second Amendment Rules, 2019

Notification No. [G.S.R. 341(E)] (30/04/2019)

Companies (Acceptance of Deposits) Second Amendment Rules, 201 shall com9e into force on the date of their publication in the Official Gazette....

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Companies (Registration Offices and Fees) Third Amendment Rules, 2019

Notification No. [G.S.R. 340(E)] (30/04/2019)

Companies (Registration Offices and Fees) Third Amendment Rules, 2019 E. Fees for filing charge documents. a) charges created or modified before the 2nd November, 2018, and allowed to be filed within a period of three hundred days of such creation or six months from the 2nd November, 2018, as the case may be, the following additional fees...

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E-Form INC-20A (Commencement of Business Certificate)

As we are aware, that Ministry of Corporate Affairs, is knee to improve Corporate Governance and Compliance on the part of the Company after successful roll out of DIR-3KYC for Directors/DIN holders, has introduced the E-Form (INC-20A) Commencement of Business Certificate under the Companies (Amendment) Ordinance 2018. All you need to...

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Posted Under: Income Tax |

Precautions to be Taken After GST Registration

Dear Friends, after the introduction of GST in July 2017, starting a business in India becomes so easy that, even an uneducated person can start his business with the help of an Accountant (Book-Keepers). Due to which, many new business has been started but due to lack of knowledge at Promoter level as well as […]...

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Posted Under: Income Tax | ,

ICAI announces Virtual MCS Course for CAs who wish to apply membership

Virtual Management and Communication Skills Course (Virtual MCS Course) for those candidates who have qualified CA final exam (November 2002 onwards till 2018 but have not applied for Membership of the Institute. The candidates who have qualified CA Final exam w.e.f. November 2002 onwards till 2018 but had not applied for Membership of th...

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Posted Under: Income Tax |

Companies (Registration of Charges) Amendment Rules, 2019

Notification No. G.S.R. ......(E) (30/04/2019)

If the particulars of a charge are not filed in accordance with sub-rule (1), such creation or modification shall be filed in Form No. CHG-1 or Form No. CHG-9 within the period as specified in section 77 on payment of additional fee or advalorem fee as prescribed in the Companies (Registration Offices and Fees) Rules, 2014....

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MCA amends Due date for filing DIR-3KYC

Notification No. [G.S.R. 339(E)] (30/04/2019)

Due date for filing DIR-3KYC [Companies (Appointment and Qualification of Directors) Amendment Rules, 2019] MCA has issued Companies (Appointment and Qualification of Directors) Amendment Rules, 2019 on 30.04.2019. By this amendment the Ministry has changed the due date from ’30th, April of immediate next financial year’ to &#...

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Notification No. 34/2019-Customs (N.T.), Dated: 30.04.2019

Notification No. 34/2019-Customs (N.T.) (30/04/2019)

Tariff Notification No. 34/2019-Customs (N.T.), Dated: 30.04.2019- Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver – Reg Government of India Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) Notification No. 34/201...

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How to easily calculate tax on Shares and Mutual Funds

In order to incentivize the equity markets Government has given various sops to this sector. Under Section 10(38) of Income Tax Act, exemption to long term capital gains arising from sale of equity shares in a company or unit of an equity oriented fund has been provided. Equity oriented fund is the one where the […]...

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Posted Under: Income Tax |

External Commercial Borrowings: Regulatory Framework Substantially Relaxed

Reserve Bank of India (RBI) on 16 January 2019 notified a new external commercial borrowings framework (New ECB Framework). The New ECB Framework rationalizes the existing external commercial borrowings framework (Old ECB Framework) by merging the existing Track I (medium-term foreign currency denominated ECB) and Track II (long-term fore...

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Posted Under: Income Tax | ,

Tax on Enhanced Compensation for Compulsory Acquisition of Agricultural Land

Shri Baldev Singh Vs ITO (ITAT Delhi)

Shri Baldev Singh Vs ITO (ITAT Delhi) We have gone through the orders of the authorities below in the light of the arguments on either side and the decisions of the Hon’ble Apex Court cited above. In the case of Ghanshyam (supra), the Hon’ble Supreme Court held in unequivocal terms that the additional amount u/s […]...

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Penalty U/s. 271(c) not sustainable if notice not have specific charge

ITO Vs M/s. Ambey Retailers Pvt. Ltd. (ITAT Kolkata)

As notice issued under section 274 read with section 271(1)(c) of Income Tax Act, 1961 did not specify particular viz., whether assessee had concealed particulars of income or had furnished inaccurate particulars thereof, hence, levy of penalty could not be sustained....

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Material Seized from third party cannot be said to belonging to Assessee for mere mention of his name

DCIT Vs Esteem Textiles P. Ltd. (ITAT Delhi)

DCIT Vs Esteem Textiles P. Ltd. (ITAT Delhi) Where AO had framed assessment under section 153C against assessee on basis of a list unearthed pursuant to a search and seizure operation at the premises of a third party, containing name of assessee as an investor, the assessment order was quashed because the said document could […]...

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Set off of unabsorbed business losses against capital income arising through slump sale allowable

Gouranga Cement Pvt.Ltd. Vs DCIT (ITAT Kolkata)

Gouranga Cement Pvt.Ltd. Vs DCIT (ITAT Kolkata) It is undisputed fact that the assessee has the earned the long term capital income by way of transfer of the business assets such as factory building, Plant & Machinery, electric installation under the head slum sale. Thus the nature of LTCG is in the nature of business […]...

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GST if applicant gets tobacco threshed and re-dried on job work basis & then sell to others

In re M/s Alliance One Industries India Private Limited (GST AAR Andhra Pradesh)

What will be the applicable rate of tax if the applicant gets the tobacco threshed and re-dried on job work basis at others premises and then sells such threshed and re-dried tobacco leaves to others? 28% (14% SGST +14% CGST) as per Sl.No. 13 of Schedule IV Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017....

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Income from betting (horse racing) | Taxability | Net Vs. Total Income

CIT Vs Dr. M.A.M. Ramaswamy (Madras High Court)

Total income of winnings from betting (horse racing) of assessee, instead of net income from betting after deduction of business loss, should be brought to tax at the rate of 40% under section 115BB....

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GST AUDIT – How to Reconcile GSTR 3B and GSTR 1

How to map GSTR 1 vs GSTR 3B GSTR-1, filed by the supplier, contains invoice-wise and category-wise details of all outward supplies made in a year GSTR-3B is the summary return based on which tax is deposited by the supplier. It contains category-wise summary of both inward and outward supplies and tax payment details. Now, […]...

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Posted Under: Income Tax |

ICSI Advisory on Filing of e-Form INC 22A (ACTIVE)

It has been noticed that the compliance of the same is not being undertaken in true letter and spirit and that some of the corporates and professionals are resorting to unscrupulous practices by undertaking multiple appointments and resignations, solely for the purpose of compliance pertaining to e-form INC 22A (ACTIVE) without understand...

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Posted Under: Income Tax |

Exemption under Section 10(23C) vis-a-vis Section 11

Analysis of the Income Tax Exemptions available to certain Educational Institutions under Section 10(23C) of the Income Tax Act, 1961 and comparison of the same with exemption available under Section 11. Background: Section 11 is a popular section for claiming exemption from income tax among the non-government charitable trusts and instit...

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Posted Under: Income Tax |

Utilisation Of ITC Sequence In GST Act- Recent Changes & Analysis

Utilisation Of ITC Sequence In GST Act- Circular No. 98/17/2019-GST Dt.23-04-2019 RECENT CHANGES & CLARIFICATIONS ON SEQUENCE OF ITC UTILIZATION After introduction of section 49A in CGST Act, 2017 by amendment in CGST Act through CGST (Amendment) Act, 2018 a confusion arose due to new sequence of setting up ITC sequence which was earl...

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Posted Under: Income Tax |

Benami Transaction – Prohibition of Benami Transactions Act, 1988

BENAMI TRANSACTIONS”, THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 Preamble; An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. “BENAMI” the word is combination of a Persian Words, as “be” means without and “nam” means n...

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Posted Under: Income Tax |

Detention of Imported Goods- “E-Way Bill non-compliance”

This is with reference to the judgement of Ahmedabad High Court in case of M/s NEUVERA WELLNESS VENTURES PVT LTD dated 18-04-2019 whereby the court had given judgment basis the findings in the order passed without any reason assigned to it while issuing order. Hence, the order issued was not a speaking order and the […]...

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Posted Under: Income Tax |

Points to be kept in mind during the GST Audit

Here I would like to mention to all of you details which would be require kept in mind at the time of GST Audit. I had done GST Health Checkup (i.e. GST Compliance of more than 30 companies like Manufacturing, Service, Trading, Pharma, Health, Export oriented unit, etc is limited as well as MNC companies). […]...

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Easiest Way to Start a New Business in GST Regime: FAQs

Q.1 – How can I start my business as Proprietorship Concern? Ans - An Individual can start his Proprietorship concern just by taking registration under GST Law. Q.2 How many days, it will take to get GST Registration? Ans: In normal circumstances, it will take just 3-4 working days to get your GST Registration....

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Posted Under: Income Tax |

Rectification of Employees Details in EPFO records online and offline

EPFO (Employee’s Provided Fund Organization) is an organization which keeps the contribution made towards PF (Provided Fund) of employees and provides pension after attaining the age of 58 / 50 years (provided service period is 10 years or more). EPFO has made it mandatory to link aadhar number of employees to their EPFO account (very [...

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Posted Under: Income Tax |

5 New Changes In E-Way Bill System

NEW CHANGES IN E-WAY BILL SYSTEM Recently, the e-way bill system has been empowered with various fruitful changes. The e-way bill system now would be empowered to auto calculate the route distance based on the PIN code; knowing the distance between two PIN codes; blocking of generation of multiple e-way bills based on the single […...

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Posted Under: Income Tax |

HC dismisses petition against amendments in PMLA through Money Bill

Mr. Jairam Ramesh Vs Union of India And Ors (Delhi High Court)

Mr. Jairam Ramesh Vs Union of India and Ors (Delhi High Court) There is no dispute that the petitioner herein is a Member of Rajya Sabha. The plea of Mr. Chidambram that the petitioner was not aware that such amendments have been carried out as Money Bills, is no reason to challenge the amendments, at […]...

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HC upheld provisions of Section 115BBDA: Tax on dividend above ₹ 10 Lakh

Rajan Bhatia Vs CBDT & Anr. (Delhi High Court)

Rajan Bhatia Vs CBDT (Delhi High Court) Section 115BBDA is a non-obstante provision that would apply and prevail over Section 10(34) of the Act. Section 115 BBDA states that notwithstanding anything contained in the Act, where the total income of a specified resident assessee, includes income by way of dividend declared, distributed or pa...

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Penalty U/s. 271(1)(c) on Disclosure of income due to search operation 

Brijesh Jaikishin Rupani Vs ITO (ITAT Mumbai)

Brijesh Jaikishin Rupani Vs ITO (ITAT Mumbai) ITAT Mumbai held that The income offered by assessee in income filed pursuant to issue of notice under section 153A was the income detected during the course of search and seizure operation. The case of assessee was squarely covered by provisions of Explanation 5A to section 271(1)(c), because...

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Section 80IB(10) deduction cannot be denied merely because land was held by original owner during project execution

PCIT Vs Green Associates (Gujarat High Court)

Where assessee had claimed deduction under section 80-IB in respect to income of housing development project, the same could not be rejected merely because the land was held by original owner when the housing development project was executed, would not be detrimental to assessee’s claim of deduction under section 80-IB(10)....

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High Court not justified in issuing remarks / direction against DCIT: SC

Sanjay Jain Vs Nu Tech Corporate Service Ltd. & Ors. (Supreme Court of India)

High Court was not justified in its remarks against the petitioner and in issuing the directions which it has issued. The High Court, in the course of its judgment has issued a slew of directions including: (i) The necessity of weeding out ‘deadwood’; (ii) imposition of costs of Rs. 1.5 lakhs which are to be apportioned among two offi...

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Clarification On Manner of Utilizing Input Tax Credit (ITC)

The Government has issue a clarification on manner of utilizing input tax credit w.e.f. 29.03.2019 [As clarified by CBIC Circular No. 98/17/2019-GST dated 23.04.2019] because GSTN does not have updation for the new manner of taking credit....

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Posted Under: Income Tax |

Provision and Procedure related to Provisional GST Assessment

Every one may have question why there is requirement of Provisional Assessment under Law. In this it is to be better understand by the entity who has paid magnificent amount of Tax just due to – Improper Valuation – Falling to Determination of Accurate rate – Falling to Determination of Place of Supply – Procedural...

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Posted Under: Income Tax |

Salary reimbursement not taxable “Manpower recruitment”

This is with reference to Supreme Court judgement dated 11-04-2019 in case of Nissin Brake India Pvt. Ltd where the transaction between  the Indian entity and parent company with respect to deputation of its employees in India was discussed and the decision pronounced by the CESTAT (Delhi) was upheld by the apex court. Facts of […...

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Posted Under: Income Tax |

Decoding Applicability of GST Audit – GSTR-9C

Finally after a long waiting period GSTR-9C was been released and made available on GST portal on 14th April 2019 as a Tamil New Year gift to the nation. Last date for filing GSTR-9C along with GSTR-9 is 30th June 2019, though words repeatedly used in relation to filing of GSTR-9 and GSTR-9C is “along […]...

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Posted Under: Income Tax |

Income Tax Calculator for FY 2018-19 in Excel for Salaried Individuals in India

Income Tax Calculator for Financial Year 2018-19 in Excel for Salaried Individuals in India Though I am uploading the Tax Calculator after the end of the Financial Year, this may be useful to cross verify the figures while filing the ITR and you may want  to include the Income from House Property, Income  from Capital […]...

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Posted Under: Income Tax |

MSME Compliance – MSME Form I

Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of publication of this Notification....

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Posted Under: Income Tax |

GST Impact Analysis on Non Resident Taxable Person

REGISTRATION ´First of all lets start from the simple definition as per Section 2(77) of CGST Act, 2017 of “Non Resident Taxable Person” which means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place [&he...

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Posted Under: Income Tax |

E-book on In-depth Analysis of ITRs AY 2019-20

It’s my pleasure to publish this e-book on In-depth Analysis of I T Returns AY 2019-20. This e-book is an attempt to summarize the relevant changes in All ITRs except ITR-7. Comments are also given at relevant points regarding logic of introduction or omission of some parts in ITRs.  Some drafting mistakes in ITRs are […]...

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Posted Under: Income Tax |

Corporate etiquette for company secretaries

Corporate Etiquettes You never get a second chance to make the first impression!!! INTRODUCTION Etiquette has to do with good manners. It’s not so much our own good manners, but making other people feel comfortable by the way we behave. “The conduct or procedure required by good breeding or authority to be observed in social [&hel...

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Posted Under: Income Tax |

Interest under GST -“Gross Tax Liability”

This is with reference to judgment of Hon’ble Telangana High Court in the case of M/s. Megha Engineering & Infrastructures Ltd. v. Comm. of Central Tax, wherein, the petitioner filed a writ petition against the demand of interest for delay in filing GSTR 3B returns, on the ground that interest is to be calculated only on the ...

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Posted Under: Income Tax |

Interest on Late payment of GST on Gross Liability

During the 31st GST council meeting dated 22nd December 2018, it was proposed that – Section 50 of CGST Act 2017 should be amended to allow payment of interest on Net cash liability, i.e. interest should be charged only on the net liability of taxpayer, after taking into account the admissible ITC. However, no amendment has [&helli...

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Posted Under: Income Tax |

Set Off and Carry forward of Losses

Provisions pertaining to Set-Off and carry forward of losses are divided in 3 parts: Part 1 deals with Set off of loss from one source against income from another source under the same head of income.(Section 70) Part 2 deals with Set off of loss from one head against income from another head (Section 71) […]...

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Posted Under: Income Tax |

New Form 16: Important Changes in Form 16 You Must Know

The Form 16 format has been revised by the Central Board of Direct Taxes (CBDT) and is applicable from 12th of May. The format specified in the notification comes is effective from May 12, 2019, which is well before the last date for issue of Form 16 for salary by employers. Therefore, those issuing Form […]...

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Posted Under: Income Tax |

GST Procedure On Return of Time Expired Drugs or Medicines

Whenever one buys any medicine or drugs, one never forgets to check its expiry date. Medicines and drugs have defined life term. They always come with an expiry date.  Generally Medicines/Drugs are sold by the manufacturer to the wholesaler, by the wholesaler to the retailer and at last by the retailer to the consumer. The […]...

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Posted Under: Income Tax |

“Composite Supply”- Reimbursement of actual expenses “E-Square Leisure AAR”

In re E-Square Leisure Pvt Ltd (GST AAR Maharashtra)

-Whether GST is to be levied on reimbursement of expenses from the lessee by the lessor at actuals- In case GST is to be levied, what would be the applicable rate of GST- Whether reimbursement of expenses by Applicant can qualify as expenses incurred as a 'Pure Agent' and would not be considered in the value of supply for levy of tax...

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Posted Under: Income Tax |

Statutory audit delay is reasonable cause for delayed submission of tax audit Report

M/s. Giral Lignite Power Ltd. Vs ACIT (ITAT Jaipur)

Where there is a delay in completion of statutory audit, there exist a reasonable cause for the delay in completion of tax audit and issuance of tax audit report. ...

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Mandatory Compliances for a private Limited Company

Private Limited Company is the most preferred structure to carry on business for an entity intending to make a profit and enjoy the benefits of an incorporated entity, particularly limited liability. Besides, limited liability, Separate legal entity, perpetual succession and various other benefits there are also mandatory compliances appl...

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Posted Under: Income Tax |

Extension of Due date of INC 22A Active

Government has finally extended the due date of Filing INC 22A ACTIVE as officially confirmed by MCA. New due date of filing will be 15th June 2019 now. It may be noted that due date of filing of this form was 25th April 2019; failing to file could have entailed a penalty of INR 10000. MCA has […]...

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Posted Under: Income Tax |

Individual supplies of goods or services cannot be held as Composite Supply

In re Sandvik Asia (P) Ltd., (GST AAAR Rajasthan)

In re Sandvik Asia (P) Ltd. (GST AAAR Rajasthan) Activities performed under the Agreement, though comprises of two or more individual supplies of goods or services, can not be held as Composite Supply . Consequently, such activities will fall under the category of ‘Mixed Supply’ as per definition of Mixed Supply, under Section 2(74) o...

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Assessment u/s 153A in absence of incriminating material was not valid

Shri Raju J Soomaney Vs ACIT (ITAT Mumbai)

Since assessment originally made was unabated on the date of search and  assessment under section 153A was framed without any incriminating material found during the course of search,therefore, the same was not valid....

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Exemption U/s. 54F cannot be denied for Purchase of Plot in HUF name

Kanaiyalal Muljibhai Patel Vs ITO (ITAT Ahmedabad)

Kanaiyalal Muljibhai Patel Vs ITO (ITAT Ahmedabad) The issue before us is, whether the house constructed by the assessee on a plot purchased in the name of HUF, exemption under section 54F, is available to the assessee or not ? The Revenue is of the opinion that for claiming exemption under section 54F, the investment ought […]...

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CBI Arrests Preventive Officer of Customs in an On-Going Investigation of A DA Case

Central Bureau of Investigation CBI Arrests Preventive Officer of Customs in an On-Going Investigation of A Disproportionate Assets Case, and Recovers Rs.1,18,50,000/- The Central Bureau of Investigation has arrested a Preventive Officer of Customs, Goa in an on-going investigation of disproportionate assets case. His father (private pers...

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Posted Under: Income Tax |

GST is not applicable on the sale or purchase of DFIA

In re Space age syntex Pvt. Ltd. (GST AAAR Maharashtra)

In re Space age syntex Pvt. Ltd. (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling set aside  the ruling given by the Advance Ruling Authority by observing  that No GST is applicable on the sale or purchase of DFIA,  as provided in Sr. 122A of the Notification 02/2017-C.T. (Rate) dated 28.06.2017 as amended by […...

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Bank Audit: Investment Verification

As so many branch audit are closed, the investment made by the banks are generally done by the head office of the bank, the central auditor required to make its main audit report, however the verification of investments is to be done on the following basis: Classification of Investments: In India In Government securities. Other […]...

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Posted Under: Income Tax |

GST Exemption on Pure Services to Government

This write up is an analysis of GST exemption on pure services provided by registered taxable person to Government. Since services to government needs special attention of the service providers, it is our endeavour to highlight some areas which needs to be examined before treating the services as exempted under the serial no. 3 of notific...

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Posted Under: Income Tax |

The GST Saga – A Story of Extraordinary National Ambition

Chanakya’s words summarize the whole GST process – ‘even if something is very difficult to be achieved, one can obtain it with penance and hard work’. If we take into consideration the 29 states, the 7 Union Territories, the 7 taxes of the Centre and the 8 taxes of the states, and several different taxes […]...

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Posted Under: Income Tax |

CBIC increases basic customs duty (BCD) on wheat from present 30% to 40%

Notification No. 13/2019-Customs (26/04/2019)

Seeks to further amend notification No. 50/2017- Customs dated 30.06.2017 so as to increase basic customs duty (BCD) on wheat from present 30% to 40% GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 13/2019-Customs New Delhi, the 26th April, 2019 G.S.R. (E).- In exercise of the powers conferred by sub-sect...

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Extension of due date to 15th June, 2019 for filing E-Form ACTIVE

Extension of due date to 15th June, 2019 for filing E-Form ACTIVE (Active Company Tagging Identities and Verification) by any company incorporated on or before the 31.12.17 The Ministry of Corporate Affairs has issued Companies (Incorporation) Fourth Amendment Rules, 2019 and Companies (Registration offices and Fees) Second Amendment Rule...

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Posted Under: Income Tax |

Frequently Asked Questions On e-Form Active

Q.1. What is E-form ACTIVE? ACTIVE stands for Active Company Tagging Identities and Verification. The Ministry of Corporate Affairs has introduced the same for address validation of Active companies. Q.2. What is the applicability of the form? The form is applicable to every company incorporated on or before the 31st December, 2017. Such ...

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Posted Under: Income Tax |

Income Tax Department continues search action in J&K Region

Income Tax Department conducted search and seizure operations at 5 locations in the Kashmir Valley on 25.04.2019. The searches were carried out against a group which is a monopolistic wholesale distributor of pharmaceuticals in the Kashmir Valley....

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Posted Under: Income Tax |

Changes in ITR Forms for A.Y 2019-20

The Income-tax Department has notified ITR Forms for A.Y 2019-20. The forms introduced seek more details as compared to previous years. Below is a list of changes brought in ITR Forms in simplified form including additional details required under each category of taxpayer. Also Read- CBDT notifies ITR for A.Y. 2019-20 / F.Y. 2018-19 and [...

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Posted Under: Income Tax |

TDS Rate Chart for AY 2020-21 / FY 2019-20

The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. Various TDS rates on various incomes have been prescribed under the Income-tax Act. This write up […]...

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Posted Under: Income Tax |

GST payable on Back Office Support Services and are not Exports

In re Vservglobal Pvt. Ltd. (GST AAAR Maharastra)

In re Vservglobal Pvt. Ltd. (GST AAAR Maharastra) The Appellate Authority for Advance Ruling upheld  the ruling given by the Advance Ruling Authority by observing  that the services being offered by Appellant is a package of services, which is nothing but a composite supply, of which the principal supply is that of intermediary services...

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Rule 138E to be applicable from 21st June, 2019

As per Rule 138E, if an assesse, who is a composition dealer has not filed GST returns for two consecutive tax periods, e-way bill can-not be generated for making supply to him. In case of assesses other than composition dealers, if they do not file their GST returns for a consecutive period of two months, e-way bill can-not be generated ...

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Posted Under: Income Tax |

GST on royalty paid in respect of mining lease

In re NMDC Limited (GST AAR Chhattisgarh)

The royalty paid by M/s NMDC in respect of mining lease is classifiable under sub heading 997337 ; 'Licensing services for the right to use minerals including its exploration and evaluation' (covered under entry no. 17 of Notification No. 11/2017 (Rate), dated 28.06.2017, attracting GST at the same rate as applicable for the supply of lik...

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Non filing of DIR3 KYC form amounts to Disqualification of Director?

While Disqualification of Directors is not a new concept, recent action by the Ministry of Corporates Affairs (MCA) under Companies Act, 2013, disqualification has become a talk of the town. Every Individual who were a director of non-active Companies (more popularly known as Shell Companies) has found out that their DIN (Director Identi...

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Posted Under: Income Tax |

Guide to related party transaction

With growing participation of investors and other stakeholders in companies, the question of transparency in arrangements with related parties has often been a topic of much debate and discussion. With the objective to usher increased degree of transparency in such transactions, to determine the exact financial position of the entity, Sec...

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Posted Under: Income Tax |

GST payable on Freight amount inclusive of diesel Cost

In re Shri Nawodit Agarwal (GST AAR Chhattisgarh)

In re Shri Nawodit Agarwal (GST AAR Chhattisgarh) Do we need to charge GST on Freight amount excluding diesel cost or on total amount which is inclusive of diesel cost? In the instant case as has been the contention of the applicant, the service recipient i.e. M/s. Shree Raipur Cement, C.G is providing diesel to […]...

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Macro for Demand Draft preparation application letter

There are various method of payment available like cash, cheque, DD, NEFT, RTGS etc. In case of every business enterprise demand draft need to be prepared. Now a days demand draft are generally asked by the Govt authorities, for participating in tenders and for making payment to vendors. For preparation of Demand Draft there is […]...

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Posted Under: Income Tax |

Rationale and Design of a Sound Insolvency and Bankruptcy Law

The BLRC Report proposed the introduction of a Comprehensive Code on Insolvency and Bankruptcy which provides for a comprehensive reform, covering all aspects of insolvency and bankruptcy along with an aim for a time bound resolution mechanism in order to maximise the value of assets of all stakeholders. It is aimed to be efficient, cost ...

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Posted Under: Income Tax |

GST Rates applicable in case of hostel on rent to various boarder

In re Ramnath Bhimsen Charitable Trust (GST AAR Chhattisgarh)

The activity of providing accommodation services by the applicant in their hostel for which the applicant is collecting an amount below the threshold limit of Rs. 1000/- per day and no other charges are being collected for providing other allied facilities / services therein viz. canteen food, parking space for vehicles, coaching, library...

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RBI extends Ombudsman Scheme to eligible Non-Deposit Accepting NBFCs

Press Release : 2018-2019/2542 / Notification No. Ref. CEPD. PRS. No.4535/13.01.004/2018-19 (26/04/2019)

Reserve Bank Extends Ombudsman Scheme for Non-Banking Financial Companies to eligible Non-Deposit Taking Non-Banking Financial Companies with effect from April 26, 2019....

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Vacancies with Air India for CA/ICWA/MBA/CA & ICWA Inter/B.Com

Air India have 25 vacancies for the post of Accounts Executive for who should be CA/ICWA/MBA-Finance (full time) with 2 years experience (Preferably in IT Systems) and they have 36 vacancies for the post of Accounts Clerk who should be CA Inter / ICWA Inter or B.Com with two years experience in SAP (Airline Accounting) […]...

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Posted Under: Income Tax |

GST on Vocational Training having affiliation by NCVT

In re The Leprosy Mission Trust of India (GST AAR Maharashtra)

In re The Leprosy Mission Trust of India (GST AAR Maharashtra) Whether services provided under vocational training courses recognized by National Council for Vocational Training (NCVT) or Jan Shikshan Sansthan (JSS) is exempt either under Entry No 64 of exemption list of Goods and Service Tax Act 2017 or under Educational Institution defi...

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GST on tobacco leaves procured at auction platforms or directly from farmers

In re M/s. VST Industries Limited (GST AAR Andhra Pradesh)

The GST Rate of tax for the tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves is 5% as per the notification 4/2017 Central Tax (Rate), under 'Reverse charge'...

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If place of supply & service provider are in same State, CGST & SGST is payable

In re Bilcare Limited (GST AAR Maharashtra)

In re Bilcare Limited (GST AAR Maharashtra) In the present case we find that, though the location of the recipient is outside India, the services supplied are in respect of goods which are made physically available by the recipient of the services to the supplier of the services for the services to be performed. We […]...

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Normal Tax paid cannot be adjusted against Tax on Income disclosed under IDS

Umesh D. Ganore Vs Pr. CIT (Bombay High Court)

Advance tax, self assessed tax and TDS paid prior to filing of declaration, should not be adjusted towards discharge of assessees liability to pay tax, surcharge and penalty under the scheme of Income Tax Declaration Scheme, 2016 in absence of any specific provision in the scheme, granting benefit of the self assessed tax or advance tax u...

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Comment on Bankruptcy Process for Personal Guarantors to Corporate Debtors with Draft Regulations: IBBI

The Insolvency and Bankruptcy Code, 2016 (Code) envisages reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all stakeholders....

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Posted Under: Income Tax |

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