"08 July 2019" Archive

Highlights of GST in Union Budget 2019-20

Union Finance Minister Nirmala Sitaraman has presented Union Budget for the year 2019-20. This budget is the modest budget with more of sense than sensation. Let’s study the major proposals of GST and Amnesty Schemes under old indirect taxes....

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Union Budget 2019-2020 -Key Highlights

1. DIRECT TAX No change in income tax slab rates for this year. Deduction exceeded from ₹2,00,000/- to ₹3,50,000/- for the home loan upto ₹45,00,000/-. Surcharge in case of individual: – Assessee Surcharge rate when income is >=₹2Cr but <₹5Cr. Surcharge rate when income is >=₹5Cr. Individual 3% 7% Tax rates in c...

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Details required for Form BEN-2

1. Purpose of the filling form- For declaration of holding Company- In case there is a holding company of the company which is filing this form and such holding company is also required to file the form BEN-2, then the radio button ‘Declaration of holding reporting company’ needs to be selected and the CIN of […]...

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Exemption from deeming of fair market value of shares for certain transactions

The existing provisions of the section 56(2)(x) of the Income-tax Act, inter alia, provide for chargeability of income in case of receipt of money or specified property for no or inadequate consideration. For determining the amount of income for receipt of certain shares, the fair market value of the shares is taken into account. Similarl...

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Budget 2019: Measures for resolution of distressed companies

The existing provisions of section 79 are not applicable to a company where any change in shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC) subject to the condition that jurisdictional Principal Commissioner or Commissioner is provided a reasonable oppor...

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Section 56: Exemption to Category II AIF under Budget 2019

The existing provisions of the said section 56 of the Income-tax Act, inter alia, provide that where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, […]...

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Incentives for start-ups under section 54GB & Section 79: Budget 2019

(1) Section 79 of the Income Tax Act provides conditions for carry forward and set off of losses in case of a company not being a company in which the public are substantially interested. Clause (a) of this section applies to all such companies, except an eligible start-up as referred to in section 80-IAC, while […]...

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Section 80EEA & 80IBA Tax incentive for affordable housing

In order to provide an impetus to the ‘Housing for all’ objective of the Government and to enable the home buyer to have low-cost funds at his disposal, it is proposed to insert a new section 80EEA in the Act so as to provide a deduction in respect of interest up to one lakh fifty […]...

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Exemption of interest income of non-resident on Section 194LC Bonds

Budget 2019- Exemption of interest income of a non-resident arising from borrowings by way of issue of Rupee Denominated Bonds referred to under section 194LC The existing provisions of section 194LC of the Act provide that the interest income payable to a non-resident by a specified company on borrowings made by it in foreign currency [&...

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Contributions to unapproved and unrecognized funds allowable as deduction if genuine in nature

Pr. Commissioner of Income Tax Vs M/s State Bank of India (Bombay High Court)

Where employer had incurred genuine expenditure for the welfare and the benefit of the employees, contributions to unapproved and unrecognized funds had to be allowed as a deduction....

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Entering into Registered JDA is transfer under section 2(47)

Shri. Damodar Reddy Vs ITO (ITAT Bangalore)

Since assessee along with his mother and siblings entered into a JDA with M/s. S, which was a registered document, therefore, on entering into JDA, there was a 'transfer' as per section 2(47) and consequently capital gain was attracted....

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Section 194M: TDS on payments to contractors and professionals

Section 194M – Deduction of TDS by Individual and HUF from payments to contractors and professionals Budget 2019 has proposed a new Section 194M, which requires an individual or an HUF , to deduct TDS @ 5%, where they make payment exceeding Rs. 50 Lac in a year to a contractor (referred to in Section […]...

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Which company or body corporate to file NFRA 1 Form

The most important clarification whether NFRA Form -1  is  required to be filed by any company or not by 31st July 2019 July 1 is Chartered Accountants’ Day marking the date on which the Chartered Accountants Act came into effect in 1949. On the same day after 70 years, NFRA is constituted with the main […]...

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Summary of June 2019 GST Notifications, Circulars & Orders

Article contains summary of Notifications, Circulars and Orders issued by CBIC in the Month of June 2019 in simple language. I. Due date for furnishing Annual return for the period July 2017-March 2018 was extended up to 31st August 2019 Considering the various representations made by the trade and the commerce forum and also the [&hellip...

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Sale of software cannot be taxed as Royalty

M/s. Cast Software Inc. Vs DDIT (ITAT Delhi)

Payment received by assessee for supply of software products to IBM India Pvt. Limited without giving right to reproduction and commercial exploitation did not fall within the ambit of' royalty'....

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Non Banking Financial Company

Definition: A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 earlier(Companies Act, 1956) of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance business or chit-fund business but does not include any institution whose principal busi...

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GST on Services of arranging transport facility for customers

In re Balasubramanyam Saravana Perumal, Prop: Chitra Transport (GST AAR Andhra Pradesh)

In re Balasubramanyam Saravana Perumal, Prop: Chitra Transport (GST AAR Andhra Pradesh) Does the applicant bound to pay GST on the actual amount of commission retained by him for arranging transport facility to their customers or he has to pay GST on the entire amount received from his customers without deducting the commission; What is [...

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GST on Services rendered apart from transmission or distribution of electricity

In re Southern Power Distribution Company of AP Ltd. (GST AAR Andhra Pradesh)

In re Southern Power Distribution Company of AP Ltd. (GST AAR Andhra Pradesh) (a) Whether the supply of services such as connection, re-connection, supervision of the works, erection of poles, sub-stations, transmission lines etc., and supply of meters etc., to the consumers for the purpose and during the course of supply of electricity t...

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No deduction u/s 36(1)(va) if payment made after due date prescribed in respective statute

CIT Vs M/s. Harrisons Malayalam Ltd. (Kerala High Court)

Deduction under Section 36(1)(va) with regard to Employees' Provident Fund, Labour Welfare Fund and Employees' State Insurance was not  allowable where contribution had been made after the due date prescribed in the respective enactments....

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All About INC-20A

E-form INC-20A (Declaration For Commencement Of Business) Is Required To Be Filed Pursuant To Pursuant To Section 10a(1)(A) Of The Companies Act, 2013 And Rule 23A Of The Companies (Incorporation) Rules, 2014. According To Section 10A Company Incorporated On Or After 02/11/2018, Shall Not Commence Its Business Or Exercise Any Borrowin...

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Treatment of secondary or post-sales discounts under GST

Circular No. 105/24/2019-GST (08/07/2019)

Treatment of secondary or post-sales discounts under GST  vide Circular No. 105/24/2019-GST dated 28-06-2019 > CBIC has clarified the treatment of post sales discount citing three situations based on -the nature of the discounts. The situations has been cited here-in-below: Situation – 1 Additional discount is offered in lieu of add...

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Amendment in black money Act- A nightmare for few

The budget 2019 was announced on 5th July 2019 and finally the wait was over for various tax payers who had lot of expectations to get some tax relief after Modi 2.0 came into action. Where this budget proved to be favorable for corporates and start-ups while in other hand it hit the upper rich […]...

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Registration of Real Estate Agent as Per Uttar Pradesh Rera Rules

IF YOU ARE REAL ESTAE AGENT IN UTTAR PREDESH THEN YOU NEED TO KNOW ABOUT REGISTRATION UNDER UP RERA AUTHORITY APPLICATION TO AUTHORITY AND DOCUMENT REQUIREMENT Every real estate agent required to register as per sub-section (2) of section 9 of the UTTAR PRADESH REAL ESTATE (R & D) Rules, 2016 (the “Act1”) shall make […]...

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Services by business Correspondent and Business Facilitator to Banks 

As per the Guidelines issued by the RBI, Banks may pay a reasonable commission/Fees to the Business correspondent( BC) or Business Facilitator (BF) the rate and the quantum of the same shall be periodically reviewed.The agreement of the banks with BC/BF prohibits them specifically from charging anything from the customer. However the bank...

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All about filing of NFRA Form 1 with FAQs

Filing of One time Form NFRA-1: Every Company or Body Corporate falling under the applicability rules shall file e-Form NFRA-1 concerning the particulars of the auditor within 30 days of deployment of Form NFRA-1 i.e. by 31st July, 2019....

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An Analysis of Direct Tax Proposals and GST 2019-2020

 UNION BUDGET 2019-2020- HIGHLIGHTS OF THE FINANCE (NO. 2) BILL, 2019 The Union Budget presented, in the Second Innings of Government led by the Prime Minister Shri Narendra Modi, by the Finance Minister Smt. Nirmala Sitharaman on the 5th July 2019; took most by surprise when they did not find the radical financial and fiscal […]...

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Decoding Lesser Talked Nuances of Union Budget 2019-20!!

In this write-up, I am trying to decode these lesser talked about ‘Nuances and Deeper Implications’ of the proposed amendments in Finance (No. 2) Bill, 2019, in continuation to my earlier write-up titled ‘Decoding Union Budget 2019-20’, published on 6.7.2019, as under:...

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Budget 2019 –M&A impact

Budget 2019 has brought in amendments to the rules governing M&A transactions from a tax perspective - this article provides highlights of proposed changes....

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7 Major Points related to GST amendments: Budget 2019

Following key amendments are being proposed in Goods and Service Tax Act, 2017 under Finance (No. 2) Act, 2019 i.e. Union Budget 2019:- 1. A Proviso has been inserted to clarify that interest for late payment of tax shall be levied only on that portion of tax which has been paid by debiting the electronic […]...

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26 Major Points related to Income Tax amendments: Budget 2019

Budget announced, now time to update…..Brief Highlighted Points related to Income Tax amendments proposed in Income Tax Act, 1961 under Finance (No. 2) Act, 2019:- 1. The threshold limit for reduced tax rate of 25% in case of domestic companies has been increased from Rs. 250 crores to Rs. 400 crores. Thus, a domestic company whose...

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Budget 2019- A Common Need, House, Car & Money

This budget presented on 5th July 2019 gives a gift, a basic need to all middle class through various ways. Today a common person needs his own house, his own car and money to fuel the life earning. Budget 2019 targets a common person with basic need and target also common people life in a […]...

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Overview of ITR Forms for filing Income Tax Return for AY 2019-20

ITR-1 – General guidelines for filing ITR-1 for AY 2019-20 For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50     lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income up to Rs.5 thousand(Not for an Individual who is either...

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Pre-GST disputes: Relief under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

Relief available under Pre-GST Dispute Resolution Scheme [Indirect Tax Enactment such as Service Tax and Excise, Legacy Dispute resolution cum amnesty scheme, 2019 Relief proposed under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 introduced vide Union Budget 2019-20. 1. Where the tax dues are relatable to a show cause notice or...

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Impact of Budget 2019 on Start Ups

The Start-ups were having high expectations from the first budget of Modi Govt. 2.0 and the Finance Minister, Smt. Nirmala Sitharaman hasn’t let down their expectations. She proposed to start a television programme within the DD bouquet of channels exclusively for start-ups. Further, tax proposals made by Finance Minister were aimed...

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Newly Introduced Section of TDS- 194M- An Analysis

As per the existing provisions of Section 194C and Section 194J, an individual or HUF, who are not liable to tax audit under Section 44AB(a)/44AB(b), shall not be required to deduct tax under these provisions. Thus, no tax is required to be deducted by an individual or HUF from payment made to contractor or professional […]...

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AAAR ruling on Rates of GST on various services provided by club

In re Bengal Rowing Club (GST AAAR West Bangal)

In re Bengal Rowing Club (GST AAAR West Bangal) AAAR ruling on Rate of GST on Supply of food from restaurant, Other services provided in restaurant like booking of personal dining area, Supply of food at events organised in the club premises like get-togethers and parties hosted by members of the Club,Supply of other services […]...

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