"03 April 2019" Archive

Scope of limited scrutiny cannot be extended without approval of administrative CIT

Suresh Jugraj Mutha Vs Addl. CIT (ITAT Pune)

Suresh Jugraj Mutha Vs Addl.CIT (ITAT Pune) Conclusion: It is outside the jurisdiction of AO converting the limited scrutiny case like the present one to the unlimited one without the approval of Administrative Commissioner of Income Tax. Facts – Assessee filed the return and the case was taken up for limited scrutiny for the purpose [&...

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No penalty u/s 271(1)(c) for disallowance of administrative expenses claimed against LTCG

Amit Capital & Securities (P) Ltd. Vs ITO (ITAT Mumbai)

Merely because assessee's had claimed administrative expenditure which was not acceptable to Revenue, that by itself would not attract penalty under Section 271(1)(c) if there was absence of concealment and / or furnishing of inaccurate particulars of income....

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Amount received on retirement by a partner of firm was not subject to income tax

Shri James P. D'Silva Vs DCIT (ITAT Mumbai)

Amount paid to a partner upon retirement after taking accounts and upon deduction of liabilities did not involve an element of transfer within meaning of section 2(47) and not chargeable to income tax. ...

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TDS deductible on Salary paid to nuns, sisters for Teaching in School

Union of India Vs The Society of Mary Immaculate (Madras High Court)

Payment of salaries made to nuns, sisters, priests or fathers for rendering their services as Teachers in schools which receive Grant-in-aid from the State Government under the Grant-in-Aid Schemes and bound by the Canon Law were liable for tax deduction under section 192 as neither Income Tax Department nor State Government had anything...

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Deduction u/s 80IA cannot be allowed in case of belated return

Shiv Kumar Sushil Kumar Tea Enterprises (P) Ltd. Vs ACIT (ITAT Jaipur)

Where assessee had not filed return within the time prescribed U/s 139(1), deduction u/s 80IA was not allowable to assessee as there was clear violation of section 80AC which clearly provided that deduction would not be allowed unless return was furnished on or before due date specified under section 139(1)....

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Customary bonus not attract provision of section 36(1)(ii)

DCIT Vs. M/s. Enam Securities Pvt. Ltd (ITAT Mumbai)

DCIT Vs. M/s. Enam Securities Pvt. Ltd (ITAT Mumbai) it is duly noted that the assessee has submitted that the outstanding bonus was customary bonus and not filing u/s. 36(1)(ii) to come under the ambit of disallowance u/s. 43B(C). The assessee has quoted several case laws for the proposition that the customary bonus do not […]...

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Summary of GST Circulars, Notifications issued in March 2019

The objective of this document is to summarize all the updates of GST (Notifications, Circulars, other amendments and updates) in one place. 7 Central tax notifications, 8 Central tax Rate notifications, 5 Central tax circulars, 1 Order, 2 Removal of difficulty orders were issued during the month of Mach 2019. The same are being summarize...

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Posted Under: Income Tax | ,

Section 14A: Shilpa Shetty Kundra gets Tax Relief

Shilpa Shetty Kundra Vs DCIT (ITAT Mumbai)

Shilpa Shetty Kundra Vs DCIT (ITAT Mumbai) It is observed that the assessee has already offered suo-moto disallowance of Rs.2.34 Lacs u/s 14A in her computation of income, which has been overlooked by the lower authorities. Another undisputed fact that emerges is that disallowance against average investments which have actually yielded ex...

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CBDT signs 18 Advance Pricing Agreement in March, 2019

CBDT has entered into 18 APAs in the month of March 2019, which includes 03 Bilateral APAs (BAPAs). With the signing of these APAs, the total number of APAs entered into by the CBDT in the year 2018-19 stands at 52...

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Posted Under: Income Tax |

Exposure Draft Accounting Standard (AS) 17, Leases

Exposure Draft Accounting Standard (AS) 17 Leases Last date for the comments: May 4, 2019 Issued by Accounting Standards Board The Institute of Chartered Accountants of India The Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs in February 2015, are applicable to the specified class of companies. Acco...

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Posted Under: Income Tax |

File ACTIVE form upto 25.04.2019 to avoid ₹ 10000 Penalty: MCA

Mandatory Compliance Requirement of filing ACTIVE (Company KYC) form –reg. As you are aware, the Ministry of Corporate Affairs, in its pursuit to improve Corporate Governance and Compliances on the part of the Company after the successful roll out of DIR-3 KYC for Directors/DIN holders, has introduced eform (INC-22A) christened ‘ACTIV...

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Posted Under: Income Tax |

Capital Gain cannot be treated as bogus on human probabilities, suspicion, conjectures and surmises

Mahavir Jhanwar Vs ITO (ITAT Kolkata)

CIT(A) has in his order relied upon circumstantial evidence and human probabilities to uphold the findings of the AO. He also relied on the so called rules of suspicious transaction...

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Advance Authorization Scheme under GST

The vision behind the Foreign Trade Policy continues to be focused on making India a significant participant in world trade and on enabling the country to assume a position of leadership in international trade. The Policy is issued once in Five Years and the Current Policy is for the period 2015 – 20, Mid Term […]...

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Posted Under: Income Tax |

Annexure IV: To adopt old GST rate in ongoing real estate projects

GST Form Annexure IV- for Real Estate Project to be declare to the Jurisdictional Commissioner one time option to adopt old GST rate in ongoing projects Source- CGST (Rate) Notification No 03/2019 dated 29th Mar 2019 related to Real Estate Projects GST Annexure IV for Real Estate Builder to declare to the Jurisdictional Commissioner, one ...

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Posted Under: Income Tax |

Registered Agricultural society entitled to deduction U/s. 80P(2)

ITO Vs Mundela Service Cooperative Bank Ltd. (ITAT Cochin)

ITO Vs Mundela Service Cooperative Bank Ltd. (ITAT Cochin) Admittedly, the assessee is primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The Hon’ble High Court of Kerala in the case of Chirakkal Service Co-op Bank Ltd. (supra) had held that a primary agricultural credit society, registe...

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Salary reimbursement cannot be disallowed for Non-Deduction of TDS

Pr. CIT Vs. M/s .ITD Cemindia JV (Bombay High Court)

Pr. CIT Vs. M/s ITD Cemindia JV (Bombay High Court) The employees and personnel deputed by the company giving such workers on loan to the assessee company continued to be the employer, the assessee merely reimbursed the expenditure in terms of salary structure of the employees to the employer company. There was, therefore, no question [&h...

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Angel Tax and Start-Ups in India

History of Angel Tax In India- The tax was introduced in the 2012 Union Budget by then finance minister Pranab Mukherjee to arrest and stop laundering of funds. It has come to be called angel tax since it largely impacts angel investors in start-ups....

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Posted Under: Income Tax |

 GST Scenario for Real Estate Sector effective from 1st April, 2019

Definition of affordable housing: A residential house/flat of carpet area of up to 90 sqm in non- metropolitan cities/towns and 60 sqm in metropolitan cities having value up to Rs. 45 lacs (both for metropolitan and non- metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Gh...

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Posted Under: Income Tax |

Reduced GST Rate for Residential Real Estate Projects

To implement the decisions made during the various GST Council meeting on issues related to GST rate for real estate Sector, The CBIC has issued notification multiple notifications. This article explains the effect of these notifications in simple language....

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Posted Under: Income Tax |

GST on construction of office building for APSFC

In re R. Gangaiah & Co (GST AAR Andhra Pradesh)

The applicant sought for Advance Ruling on applicable rate of tax under GST for construction of office building at Vijayawada for Andhra Pradesh State Financial Corporation. The activity of the applicant under the said agreement with M/S APSFC is a Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Good...

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Bogus share capital: Relief cannot be given merely on basis of Ration Card, Voter ID etc

ITO Vs M/s. Yadu Steels & Power Pvt.Ltd. (ITAT Delhi)

ITO Vs M/s Yadu Steels & Power Pvt.Ltd. (ITAT Delhi) Under Section 68 onus is upon assessee to prove three ingredients, i.e., identity and creditworthiness of credit entries. As to how onus can be discharged would depend on facts and circumstances of each case. It is expected of both sides – assessee and Ld.AO, to […]...

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SEBI extends time to implement Phase I of UPI with ASBA

Circular No. SEBI/HO/CFD/DIL2/CIR/P/2019/50 (03/04/2019)

It has been decided to extend the timeline for implementation of Phase I of the aforesaid Circular by 3 months i.e. till June 30, 2019. The implementation of Phase II and III shall continue unchanged as per the aforesaid Circular from the date of completion of Phase I as above....

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Discontinuation of physical MEIS/SEIS scrips wef 10.4.2019

Trade Notice No. 03/2015-2020-DGFT (03/04/2019)

In order to improve ease of doing business, it has been decided to discontinue issue of physical copy of MEIS/SEIS scrips by DGFT Regional Authorities with effect from 10.4.2019. To start with, this facility of paperless scrip will be available for EDI ports only, and will not be available for non-EDI/ SEZ ports....

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Imports of Maize (feed grade) under TRQ Scheme for 2018-19

Trade Notice No. 02/2019-2020-DGFT (03/04/2019)

(a) Import of 1 lakh MT of feed-grade Maize (corn) under TRQ is allowed.(b) Applications invited from STEs for import of feed-grade Maize (corn) under the TRQ scheme @ 15% Customs duty and meant only for Actual Users. Import for trading purpose is not allowed....

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Exposure Draft on Guidelines on Settlement of Personal Accident and Benefit Based Health Insurance Claims in Installments

In order to examine proposals received for allowing the Insurers to settle claims in installments in respect of personal accident and benefit based products, the Authority constituted a working group vide IRDAI order ref IRDA/HLT/ORD/MISC/171/10/2018 dated 12th October 2018....

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Posted Under: Income Tax |

Concept of Geo-tagging for Companies

The Indian Government in a rare move has introduced the concept of Geo-tagging for the Companies. The Government is aware that there are a lot many Companies registered in India, but what it aims at knowing is the Actual No. of Companies operating in India. Now many must be wondering what the difference is between […]...

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Posted Under: Income Tax |

New standard Ind AS 116 – Leases

Ind AS 116 shall be applied for recognition, measurement, presentation and disclosure of leases. It provides guidance on accounting of leases by lessor and lessee separately. Principles of Ind AS 116 with respect to accounting of leases by lessor are substantially same as previously provided under Ind AS 17. However, there is significant ...

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Posted Under: Income Tax |

e-form AGILE – INC 35

Rule 38A of Companies (Incorporation) Rules, 2014 as inserted vide Companies (Incorporation) Third Amendment Rules, 2019 Form: AGILE (INC-35) Description of Form: Application for registration: GSTIN – Goods and Service Tax Identification Number, ESIC – Employees’ State Insurance Corporation, EPFO – Employees’ Provident Fund Orga...

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Posted Under: Income Tax |

New Rule 88A Order of Utilization of input tax credit with examples

Analysis of New Rule 88A –Order of Utilization of input tax credit along with numeric illustrative comparison pre and post amendments. The new order of ITC utilization rule 88A is brought vide Notification no 16/2019 dated 29-03-2019 made effective from the 1st April 2019. This may provide some relief to the business community, which ha...

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Posted Under: Income Tax |

Application of Time Value of Money concept to WDV Depreciation Calculation

Depreciation as per written down value method (WDV) has been under the spotlight after the introduction of the Companies Act, 2013. Schedule II of the act mandates to provide depreciation as per useful life of assets using either straight line method or written down value method. This article is on Application of Time Value of […]...

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Posted Under: Income Tax |

GST on Real Estate Sector: Changes Effective from 1st April, 2019

Taxing real estate sector has always been a difficult proposition due to numerous practices followed, division of power between union and states. As it affects the headlines rate of GST, the government tries to keep the headline rate lower while making all the effort to tax the sector as much as possible. The sector makes […]...

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Posted Under: Income Tax |

8% Interest on Deposit under non-government PF, superannuation & gratuity

Notification No. 5(2)-B(PD)/2019 (03/04/2019)

Govt notifies 8% interest rate on Deposit made under non-government PF, superannuation and gratuity w.e.f. 1st April, 2019. MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 3rd April, 2019 No. 5(2)-B(PD)/2019.—Itis hereby notified that the deposits made under the Special Deposit Scheme for Non-Government ...

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Withdrawal of TRA facility for MEIS/SEIS scrips on or after 10.04.2019

Public Notice No. 84/2015-2020-DGFT (03/04/2019)

TRA facility for scrips issued from all ports (except SEZ and non EDI ports) has been withdrawn for MEIS/SEIS scrips issued on or after 10.04.2019....

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Listing Compliance Calendar for Financial Year Ending March, 2019

Article compiles Listing Compliance Calendar For Financial Year Ending March, 2019 including Compliance with respect to Board Meeting for Approval of Financial Results. Nature of compliance include Disclosure of aggregate shareholding of promoters with voting rights as on 31st March,  Corporate Governance Report (XBRL), Statement of Inve...

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Posted Under: Income Tax |

Meaning of Intermediary Services under GST

When a services falls under the definition of intermediary, the provision of place of supply becomes different. Thus classification of a service under intermediary or otherwise affects various provisions like inter-state/intra-state supply or export or import of service. Therefore, it is necessary to under the provision of intermediary un...

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Posted Under: Income Tax |

Input Tax Reversal on Gift or Free Supply

Central Board of Indirect Taxes and Customs have come out with a clarification vide Circular No. 92/11/2019-GST dated 07.03.2019, clarifying on various doubts regarding treatment of sales promotion scheme under GST. The circular clarifies following points; (i) It is clarified that samples which are supplied free of cost, without any consi...

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Posted Under: Income Tax |

Attendance of jurisdictional officer for hearing of Advance Ruling

NO: GST/ARA/Maharashtra State/2018-19/B-49 Internal circular ARA No. 01/2019 (03/04/2019)

Written submissions made by the concerned Officer /jurisdictional officer shall be approved by the jurisdictional Commissioner of Central Tax in case of CGST and Joint Commissioner of State Tax in case of SGST....

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Issue of shares by Indian Companies under FCCB/ADR/GDR

Foreign Currency Convertible Bond (FCCB) means a bond issued by an Indian company expressed in foreign currency, the principal and interest of which is payable in foreign currency. FCCBs are issued in accordance with the Foreign Currency Convertible Bonds and ordinary shares (through depository receipt mechanism) Scheme 1993 and subscribe...

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Posted Under: Income Tax |

Brief Study of Section 269ST of Income Tax Act, 1961

In this article we will understand why section 269ST is introduced and what is the need of invoking such provisions, Section 269ST was introduced by finance act, 2017 in Income tax act, 1961 by the central government in order to curb the tax evasion, regulation and circulation of Black money. Most of the transactions in […]...

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Posted Under: Income Tax |

Key Highlights of CGST (2nd Amendment ) Rules, 2019

Central Government has amended the Central Goods and Services Tax Rules and these amendments have been made applicable with effect from 1st April 2019 by issuing Notification vide Notification No: 16/2019 – Central Tax dated 29th March 2019....

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Posted Under: Income Tax |

Brief Simplified Analysis of Real Estate Notifications on GST

GST Council in the 34th meeting held on 19th March, 2019 at New Delhi discussed the operational details for implementation of lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. To give effects to the recommendations of the Council, Central Government has issued [&helli...

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Posted Under: Income Tax |

Form No. INC-35 (AGILE)

FORM NO. INC-35  [Pursuant to rule 38(A) of the Companies (Incorporation) Rules, 2014] AGILE  –(Application for Goods and services tax Identification number, employees state Insurance corporation registration pLus Employees provident fund organisation registration The Ministry of Corporate Affairs vide its notification dated 2...

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Posted Under: Income Tax |

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