"09 December 2019" Archive

GST शास्त्र : Joint Development Agreement ‐ Taxability & other aspects

After 1st April, 2019, real estate sector has undergone massive changes as far as GST implications are concerned. Hence, it is important to revisit law, understand taxability impacts and other aspects in respect of joint development agreement. Joint development agreements are normally entered into either on revenue sharing basis or area s...

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GST Seva Kendras resolve complaints related to GST

CBECMITRA, a pan-India helpdesk, a national toll-free number and GST Seva Kendras have been established to resolve taxpayer grievances relating to Goods & Service Tax (GST)....

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Search Assessment under Section 153A & Section 153C

This article covers some of the basic but important issues faced by the Assessing Officer in Search assessment. It also covers the judicial history of the issue and stand taken by the Department. After completion of search by the Investigation Wing, correct application of the provision of the Income Tax Act and assessment of true income o...

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A Bird’s Eye View of HUF Taxation in India

Considering the unique social, cultural and economic dynamics of Indian joint family, the Income Tax Act has given the status of separate legal entity to Hindu Undivided Family(HUF) under section of 2(31) of the IT Act. This article discusses various aspects of HUF taxation, touching upon recent judicial decisions which help to understand...

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Principles of Cross Examination in Context of Income Tax Proceedings

The issue of cross examination of witnesses in Income Tax proceedings has seen substantial litigation before various appellate fora. Many a time, income tax assessments, otherwise sound on facts and merits, suffer adverse consequences due to opportunity of cross examination not being provided to the assessees....

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Taxability of Capital Gain in Case of Joint Development Agreement (JDA)

Individuals/ HUF who enters Joint Development Agreement with the builder are liable to capital gains in the year in which the certificate of completion is issued by the competent authority....

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Draft of Accounting Standards for Local Bodies (ASLBs) 4, ‘Effects of Changes in Foreign Exchange Rates’

While formulating the ASLBs, due consideration is given  to the International Public Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting Standards Board (IPSASB) of IFAC for  integrating the same to the extent possible, in the light of the conditions and practices prevailing in India. The Committee ...

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Understanding Applicability of Section 115BBE

Post-demonetization in FY 2016–17, there has been large scale cash deposits in bank accounts, out of which a substantial portion could be unexplained u/s 69A. Such income in nature of Ss. 68 to 69D has been made liable for being taxed at higher rate @ 60% u/s 115BBE from AY 2017–18, irrespective of whether such unexplained income is s...

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Fine vis-a-vis Penalty imposed under Companies Act, 2013

Fine imposed when any application/ petition filed with any court (like: NCLT, High Courts) and penalty imposed when company made any non compliance and adjudicating authority directly can impose penalty on such companies....

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Chairman of a Company or Board- A prospective

Introduction Unless otherwise provided in the Articles of Association of the Company, the Companies Act, 2013 (‘CA, 2013’) and Listing Regulations, 2015 do not explicitly lay down provisions mandating the appointment/election of a permanent Chairperson of the Board. However, section 104 of the CA, 2013 provides that either the Chairpe...

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The Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 came into force w.e.f 25th July, 2019 to amend the provisions related to KYC of directors. Following are the detail procedure :-   1. For those who had filed DIR-3-KYC once. Those directors  who holds DIN and had filed DIR-3KYC only needs to file [&he...

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‘Ease of Doing Business’ Really Fructifying at Grass Root Level?

The ensuing journey of this ‘start-up’ company through the regulatory framework of our country encompassing within its fold the compliances with the respective Legislative Acts concerning the Environment Clearances (air & water pollution), Income Tax, GST and Provident Fund, to name a few, will help us to reflect upon us the harsh rea...

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The Citizenship (Amendment) Bill, 2019 as Introduced in lok Sabha

Bill No. 370 of 2019 (09/12/2019)

Clause 5 of the Bill seeks to insert a new clause (eei) in sub-section (2) of section 18 of the Citizenship Act, 1955 so as to empower the Central Government to make rules to provide the conditions, restrictions and manner for granting certificate of registration or certificate of naturalisation under sub-section (1) of section 6B of the ...

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How Modi Tighten disclosure norms for CSR under Companies Law

How Modi Tighten disclosure norms for Corporate Social Responsibility (CSR Policy) spending to its new India under Companies (Amendment Act),2019 A high-level panel on CSR is likely to propose increased disclosures to bring transparency in spending on these activities. India Inc may soon have to make higher disclosures on their corporate ...

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Anti-Dumping Investigation on imports of “Mono Ethylene Glycol”

Case No. (O.I.) 21/2019 (09/12/2019)

Case No. (O.I.) 21/2019 Initiation of Anti-Dumping Investigation concerning imports of Mono Ethylene Glycol originating in or exported from Kuwait, Oman, Saudi Arabia, UAE and Singapore....

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Taxing multinationals: ICRICT calls for an ambitious global minimum tax to stop the harmful race to the bottom

Since its creation in 2015, ICRICT calls to stop the harmful race to the bottom in both corporate tax rates and the artificial shifting of corporate profits to low-tax jurisdictions by putting a floor to tax rates and attributing taxable profits to the jurisdictions where real economic activity takes place. We therefore welcome the ongoin...

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Appointment of Small Shareholders’ Director- An analysis

Who is a small shareholder: Small shareholder means a shareholder holding shares of nominal value of not more than Rs. 20,000/- (Rupees Twenty Thousand Only) or such other sum as may be prescribed. Objective: In order to protect interest of small shareholders. Provisions: Section 151 of the Companies Act, 2013 (hereinafter refer as “the...

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Resignation/ Withdrawal from an Engagement to Perform Audit of Financial Statements

Announcement on Applicability of Implementation Guide on Resignation/ Withdrawal from an Engagement to Perform Audit of Financial Statements” to Statutory Auditors of Listed Entities and their Material Subsidiaries...

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How to confirm validity of communications received from CBIC Officials

The CBIC has clarified that every notice issued by its officer shall stand invalid and assumed never issued unless it carries Document Identification Number (DIN). Therefore no search authorisation , summon, arrest memo, inspection notices or letters issued in the course of any inquiry shall be issued by the officer under the board to tax...

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Changes in procedure of issuance of Show cause notice under GST

This Article discusses the changes made by  Notification No. 49/2019- Central tax  dated 9th October 2019 in Rule 142 related the ‘notice of demand’ under GST. There has been a appreciable change made regarding the procedure of issuance of show cause notice which has been incorporated below, changes have been highlighted. As...

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SFIO’s prepares 55 reports on fraud & misappropriation by Companies

During the last 3 years, 55 number of research reports prepared by Market Research and Analysis Unit (MRAU) have been submitted to the Ministry of Corporate Affairs (MCA). 12 number of investigations have been assigned to Serious Fraud Investigation Office (SFIO)....

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Advance Authorisation Scheme under FTP

Article discusses Benefit for Advance Authorisation License holder, Who can Avail the Benefit of Advance Authorisation, Maximum limit for the License value, How to Avail the Benefit under Advance Authorisation, Conditions for Advance Authorisation scheme, Currency for the realization of Export Proceeds, Validity period of the License, Tim...

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Bharat Bond Exchange Traded Fund (ETF)

The Cabinet Committee on Economic Affairs has given its approval for creation and launch of Bharat Bond Exchange Traded Fund (ETF) to create an additional source of funding for Central Public Sector Undertakings (CPSUs) Central Public Sector Enterprises (CPSEs), Central Public Financial Institutions (CPFIs) and other Government organizati...

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Supply of print on flex material is supply of goods

In re Sree & Co (GST AAR Andhra Pradesh)

In re Sree & Co (GST AAR Andhra Pradesh) Question 1: Whether supply of print on flex is classifiable as supply of goods or service? Answer 1 : The supply of print on flex is classified under Goods only as per Section 7 of CGST Act, 2017 read with Schedule -II SI.No.1 (a) of CGST […]...

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Expense on installation of software with No enduring benefit qualify as revenue expense

CIT Vs M/s. Chona Financial Services Pvt. Ltd. (Madras High Court)

Since assessee acquired only a right to use the software and there was no enduring benefit acquired by the assessee on account of the license promoted by it on payment of annual fee, the expenditure incurred towards installation of such software would qualify as revenue expenditure....

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Section 80 IB/IC deduction allowable on manufacturing of boxes intrinsically connected with manufacturing of electric meters

Pr. CIT Vs M/s Secure Meters Ltd. (Rajasthan High Court at Jodhpur)

Pr. CIT Vs M/s Secure Meters Ltd. (Rajasthan High Court) As far as the question relating to trading profit is concerned, the record shows that the assessee derived this income from the sale of boxes manufactured by it to house electric meters. It is not disputed that the deduction under section 80 IB/IC was for […]...

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ITAT explains Law on taxation under DTAAs of transparent entities & Representative Assesseess

ING Bewaar Maatschappij I BV Vs DCIT (ITAT Mumbai)

The principle emerging out of this analysis of legal position is that when an assessee is a representative assessee of a tax transparent entity, it is the status of beneficiaries or constituents of tax transparent entities which is relevant for the purpose of determining treaty protection. Viewed thus, this is beyond doubt that the income...

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Section 10AA Deduction allowable on disallowance proposed in assessment

DIC Fine Chemicals Pvt. Ltd. Vs DCIT (ITAT Kolkata)

DIC Fine Chemicals Pvt. Ltd. Vs DCIT (ITAT Kolkata) It was a case where on account of the disallowance made by the AO, the loss returned by the assessee stood converted into positive sum and made the appellant eligible to claim deduction u/s 10AA of the Act. We thus find that as per the position […]...

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Special Audit Report commissioned subsequent to search cannot be treated as incriminating evidence

PCIT Vs Abhisar Buildwell P. Ltd (Delhi High Court)

PCIT Vs Abhisar Buildwell P. Ltd (Delhi High Court) Learned counsel for the Revenue repeated the submission made before the ITAT viz., that the report of Special Audit should be treated as incriminating evidence. Clearly the report of the Special Auditor, having been commissioned subsequent to the search, and during the assessment proceed...

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December 2020