"13 June 2019" Archive

2 years of GST: Scams that challenged its robust framework

Goods and Service Tax – GST was introduced on 1st July, 2017 with an aim to overcome all the loopholes of the earlier indirect tax regime and more importantly to increase the transparency in the system. GST is just going to complete its two years and inspite of it being a new law, with more […]...

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Form 15H -For Non deduction of TDS on Interest for senior citizen

Form 15H is a self declaration which can be submitted by the eligible person for non-deduction of TDS on the specified income. Under the present article we would try to understand the applicable provisions, along with the frequently asked questions, attached with form 15H. Eligibility criteria – The taxpayer who is willing to file a [&h...

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Form 15G -For Non deduction of TDS on Interest for Individuals & HUF

Form 15G is a self-declaration form which can be filed by the eligible persons for applying for non-deduction of tax in case the total income of the eligible person doesn’t exceed the exemption limit of the respective financial year....

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Recent Updates In GST till 12.06.2019

nput tax credit on inward supplies received in 2017-2018 but availed in April, 2018 to March, 2019shall be declared in Table 8C of FORM GSTR-9. > Transactions relating to financial year 2017-18 but declared in returns from  April, 2018 to March, 2019 shall be declared in Part V of FORM GSTR-9....

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Government Reduces Rate of ESI Contribution from 6.5% to 4%

Notification No. G.S.R. 423(E) (13/06/2019)

The Government of India has taken a historic decision to reduce the rate of contribution under the ESI Act from 6.5% to 4%(employers’ contribution being reduced from 4.75% to 3.25% and employees’ contribution being reduced from 1.75% to 0.75%). Reduced rates will be effective from 01.07.2019.This would benefit 3.6 crore employees and ...

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Ratification of Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved theratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI)...

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Cabinet approves Special Economic Zones (Amendment) Bill, 2019 

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved to introduce a Bill, namely, the Special Economic Zones (Amendment) Bill, 2019 that is the Bill to replace the Special Economic Zones (Amendment) Ordinance, 2019 (12 of 2019).  The Bill will be introduced in ensuing session of the Parliament....

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Aadhaar cannot be made compulsory unless provided by law

Making Aadhaar people friendly  No individual to be compelled to provide proof of Aadhaar number unless provided by law Aadhaar number on voluntary basis to be accepted as KYC document Cabinet approves The Aadhaar and Other Laws (Amendment) Bill, 2019  In a major move aimed at making Aadhaar making people friendly, the Union Cabinet, ch...

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No GST on Tanker water supply services with GPRS system help to local authority

In re Vidarbha Infotech Private Limited (GST AAR Maharashtra)

Whether the contract from Nagpur Environmental Services Ltd (NESL) Nagpur (a 100% subsidiary of the Nagpur Municipal Corporation, Nagpur) for providing services for the management of Non-Network Tanker with the help of GPRS system at Nagpur would be exempt from GST since it falls under the various exempt services in the article 243 W of t...

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SC judgement holding allowances as part of basic wages- contradictory?

Is the recent SC judgement holding allowances as part of basic wages for the purpose of determination of PF contribution, in contradiction with the stand of the Law makers and implementeors? In its recent judgement in the case of RPFC vs. Vivekananda Vidyamandir and others & Surya Roshni Ltd & Ors. vs. The State of […]...

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Benefit to Buyers Under RERA

The new legislation Real Estate (Regulation and Development) Act, 2016 (known as RERA) was enacted with the aim of protecting the interest of the Real Estate sector and specially the buyers. Before this law was enacted real estate buyers were exploited by builder mafia in many ways like (a) property was never handed over to […]...

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Company Law Series Chapter 3 (Issue And Redemption of Preference Shares)

Section 55(2) of the Companies Act 2013 states that a company limited by shares may as per the authorisation by its articles, issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue subject to such conditions as may be prescribed. A company engaged […]...

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Action to be taken for non-compliances in case of Listed Companies

ACTION TO BE TAKEN IN CASE OF NON-COMPLIANCES BY LISTED COMPANIES Regulation : Fine payable and/or other action to be taken for non-compliance in respect of listed entity Regulation 6(1): Rs. 1,000 per day for non-compliance with requirement to appoint a qualified company secretary as the compliance officer Regulation 7(1): Rs. 1,000 per ...

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TDS on Payments to Non Residents (Section 195)

Overview of  TDS on Non Resident Payments Provisions for Deduction of Tax at source in case of payments to non-residents is covered under section 195 of the Income tax act 1961 which are as below. SECTION 195 (1) APPLICABILITY Payments to any Non-Resident (not being a company). Foreign Company. PAYMENTS COVERED Any interest. Any other [&...

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Carry forward of excess of expenditure over income allowable in case of trust

ITO Vs  Kaivalya Education Foundation (ITAT Mumbai)

Assessee-trust was entitled to claim excess expenditure over income being deficit to be carried forward for setting it off in subsequent years as income derived from  trust property had  to be computed on commercial principles and if commercial principles were applied then adjustment of expenses incurred by trust for charitable and reli...

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Rental income of developer cum builder to be taxed as house property income instead of business income

Mascot Constructions (P) Ltd. Vs ITO (ITAT Mumbai)

Nature of income which had been rental earning from the house property would not change just because it had been received by assessee-company formed with the object of carrying out business as builder and developer, therefore, AO had, rightly assessed the rental receipts under the head Income from house property....

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TDS on payments to university employees of gratuity, pension or leave salary

ITO (TDS) Vs Mahatma Gandhi University (ITAT Cochin)

Payments made by assessee-university to its employees towards death cum retirement gratuity, commutation of pension or leave salary should not be liable for TDS to the extent permitted under the provisions of section 10(10)(i), 10(10A) and 10(10AA) as the employees of assessee were found to be holding civil posts under the State Governmen...

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SEBI specifies 7 New Disclosures by Credit Rating Agencies (CRAs)

SEBI/ HO/ MIRSD/ DOS3/ CIR/ P/ 2019/ 70 (13/06/2019)

I. Computation of Cumulative Default Rates (CDR) A. With a view to aligning the methodology of calculation of default rates with that followed globally and in partial modification of SEBI Circular CIR/MIRSD/CRA/6/2010 dated May 3, 2010, the default rates shall be computed in the following manner:...

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Sec. 54 exemption cannot be denied for non-filing of Income Tax Return

Smt. Tupel Raja Iyengar Shakuntala Vs ITO (ITAT Bangalore)

Assessee was entitled to claim long term capital gain exemption under section 54 on sale of property and the same could not be denied on the ground that income tax return was not filed declaring such income....

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Brief note on Transition Plan to New GST Return

The GST Council in its 31st meeting decided that a new GST return system will be introduced. In order to ease transition to the new return system, a transition plan has been worked out. THREE MAIN COMPONENTS TO THE NEW GST RETURN: 1. FORM GST RET – 1 (Main Return) 2. FORM GST ANX – […]...

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Reassessment after 4 years where assessee made true and full disclosure in original assessment was not valid

DCIT Vs Visvas Promoters (P) Ltd. (Madras High Court)

Reassessment after period of four years on the ground that assessee had claimed excess deduction under Section 80IB(10) was not valid where assessee had made true and full disclosure and had consciously made only a proportionate claim under Section 80IB(10), which was rightly allowed by AO at the time of original assessment proceedings un...

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ESIC New Rates w.e.f 01.07.2019

Notification No. G.S.R. 423 (E). (13/06/2019)

In a historic decision, the Union government has cut the contributions made by employers and employees toward the health insurance scheme of Employees’ State Insurance Corporation (ESIC). The total contribution has been cut to 4 per cent from the current 6.5 per cent. The contribution rate cut is expected to help firms save around R...

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Need to Review Provision of Marginal Relief under Income Tax Act

I want The Hon. Finance Minister to consider my suggestion on the above subject.  Surcharge @10% of Income tax is levied when taxable income exceeds Rs. 50 lacs and upto 1 crore. Income tax for Rs.50 lacs works out to Rs. 1312500/-....

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Initiation of penalty not valid if AO fails to record satisfaction for the same

ACIT Vs M/s. International Cars & Motors Ltd (ITAT Delhi)

Where no satisfaction had been recorded by the AO for initiation of penalty in the assessment order the same cannot invite the assessee to penalty under section 271(1)(c)...

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Transition Plan to New GST Returns for Small & Large Taxpayers

The GST Council in its 31st meeting had decided to implement a new returns system in order to make the return compliance more easier. There are three components in the new returns system: 1.GST ANX-1 a). In GST ANX-1, the details of outward supplies and inward supplies on which tax is payable on the reverse […]...

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Not to count Voting % of absent Financial Creditors to count voting shares: NCLAT

IDBI Bank Limited Vs Mr. Anuj Jain (National Company Law Appellate Tribunal)

IDBI Bank Limited Vs Mr. Anuj Jain (National Company Law Appellate Tribunal) As the voting is on, which is likely to be completed today by 5.00 p.m., we are not inclined to pass any specific order in the present I.A. No. 1857 of 2019 filed by the ‘IDBI Bank Limited’. After voting the decision if […]...

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DGFT notifies ANF 4R – Application form for claiming rebate under RoSCTI

Public Notice No. 10/2015-2020-DGFT (13/06/2019)

The criteria for claiming RoSCTL under the scrip mechanism has been changed, under which applications arc now required to be filed within 1 year of the Let Export date as mentioned in the Shipping bills. Further, ANF 4R , the application form for claiming rebate under RoSCTI. is also notified. Government of India Ministry of Commerce [&h...

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GST Audit (GSTR-9C) – Practical Checklist alongwith Audit Process

Practical Checklist For Initiating GST Audit – FORM GSTR -9C DOCUMENTS LIST – 1. Signed Financial Statements 2. State wise financial statements, if required 3. GST User Id 4. GST Password 5. Monthly GSTR 3B 6. Monthly GSTR 1 7. Monthly GST Workings 8. Monthly ITC reversal workings along with final reversal 9. Transitional Credits ...

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Timeline and manner of transition to new GST return filing system

1. In the 31st GST Council meeting, recommendation was made for new GST Returns to facilitate tax payer. In order to effect such change, a transition plan has been introduced by CBIC. Under the new scheme, Form GST ANX – 1 shall replace Form GSTR-1 and Form GST RET -01 shall replace Form GSTR-3B. 2. […]...

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Overview of GST on Government works contract

Government allocates every year a major portion in its budget towards development of Roadways and other Infrastructure projects. Construction of Roads, bridges, dams, are the main constituents in Infrastructure development. As infrastructure is highly responsible for propelling growth of other sectors and India’s overall development, Go...

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FAQs on External Commercial Borrowing & Trade Credits

External Commercial Borrowings (ECB) and Trade Credits (Updated as on May 29, 2019) PART I – EXTERNAL COMMERCIAL BORROWINGS A. BASIC QUERIES 1. Where can one get the details of extant External Commercial Borrowings (ECB) and Trade Credits (TC) framework? Master Direction No. 5 on ‘External Commercial Borrowings, Trade Credits and Stru...

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Agreement/ Contract Drafting: Notable Exercise For Business

In the wake of India’s move towards achieving a status of Developed Nation by providing its people various initiative like “Make in India”, Startup India, Promoting MSME, Skill India to start their own business platforms, the founder of any business set up is essentially required to direct its business strategy in a legally sound ma...

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No E-way bill, If GST returns not furnished for last two months- w.e.f. 21-06-2019

No E-way bill, If GST returns not furnished for last two months- w.e.f. 21-06-2019 A new rule 138E, inserted by the Govt of India vide Notification no. 74/2018 – Central tax, dated 31st December, 2018, which are reproduced for your reference.  “138E. Restriction on furnishing of information in PART A of FORM GST EWB-01.-  Notwithsta...

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TDS on immovable property u/s 194-IA of Income Tax Act,1961

Before coming on the main article, let’s understand why there is a need of invoking such provisions of section 194-IA under income tax act, 1961. There is a great need and importance of invoking such provisions in income tax so as to curb the circulation and flow of black money in India. Many Real Estate […]...

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SEIS under FTP

The benefit under the SEIS is admissible on Mode 1 and Mode 2 services. Major services covered would include Legal, Accounting, Architectural, Engineering, Educational, Hospital services, Hotels and restaurants and other business services....

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December 2020