"10 December 2019" Archive

GST- Provisional ITC capped at 20% & it’s practical challenges

Goods and service tax, being a tax on the value addition made by suppliers, is paid by netting off the tax receivable from customers (Output GST) with the tax payable to suppliers (Input GST). Pursuant to 37th GST council meeting, CBIC has released a new notification1 inserting sub-rule 36 (4) to the CGST Rules, 2017, (‘Rules’) which ...

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Changing Trends of ‘Service of Notice’ under e-Assessment Regime

Under the new system of faceless e-Assessment, tax payer will receive notice on his/her registered email and/or registered account on the web portal www.incometaxindiaefiling.gov.in with real time alert by way of SMS on his/her registered mobile number. The reply to the notice can be prepared at ease by the tax payer at own residence or o...

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List of CGST nodal officers for IT Grievance Redressal

IT Grievance Redressal mechanism inter alia envisages that taxpayers shall make an application to the field officers or the nodal officers where there was a demonstrable glitch on the Common Portal in relation to an identified issue, due to which the due process as envisaged in law could not be completed on the Common Portal. […]...

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Govt finalises 34.46 Lakh GST Refund Application till 02.12.2019

A number of companies applied for a Goods & Services Tax (GST) refund since the introduction of the tax regime. As on 02.12.2019, a total of 1,86,158 entities have filed 36,42,272 refund applications, out of which 34,46,010 refund applications have been finalised....

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Sanctioned for prosecution given to 366 cases in violation of CSR norms

Whenever any violation of Corporate Social Responsibility (CSR) provisions is reported, action against such non-compliant Companies are initiated as per provisions of Companies Act, 2013 after due examination of records. So far, sanction for prosecution has been accorded in 366 cases. All CSR related offences are compoundable. So far 118 ...

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Validity of Increased Rate of MEIS till 31 Dec​ember​ 2019 only?

Director General of Foreign Trade (DGFT) has recently issued a Public Notice ​​(PN) No. 47/2015-2020 dated 07 December 2019 in relation to change in MEIS rate. It has been notified that, except products listed in Annexure to this Public Notice, ​​​​Additional 2% MEIS (as provided in PN No. 44 dated 05 Dec 2017, PN No. [&hellip...

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Synopsis to New Rule 36(4) of CGST Rules, 2017

Only eligible ITC shall be considered for calculating the 20% restricted credit. Therefore, ineligible credits say under section 17(5) shall not be considered for calculating this 20% amount. The above eligible credit shall be in respect of invoices or debit notes the details of which have been uploaded by the suppliers under section 37(...

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5 Must-Know Reasons To Choose CA as A Career

If you will create a list of toughest professional courses in our country Chartered Accountancy (CA) will be on the list definitely. Most of the students who belong to the commerce field, once in their life, have dreams of becoming a Chartered Accountant. And why not? Chartered Accountancy is one of the most rewarding professions. [&helli...

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Checklist for Obtaining ISIN for Unlisted Public Companies

Pursuant to Companies (Prospectus and allotment of Securities) Rules, 2014, every unlisted public company is required to secure International Security Identification Number (ISIN) for each type of security and facilitate dematerialisation of all its existing securities. To obtain a fresh ISIN, a company has to approach a SEBI registered R...

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Dematerialisation of Securities by Unlisted Public Company

Ministry of Corporate affairs (MCA) has inserted a whole new compliance for Unlisted Public companies dated 10th September, 2018. The new compliance has been inserted under Rule 9A- ‘Issue of securities in dematerialised form by unlisted public companies’, after the existing rule 9 of The Companies (Prospectus and Allotment of...

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Intermediary and Export of Services under GST

Under GST, tax is levied on the taxable supply of goods/services. Tax is applicable on the taxable services supplied in India. In the GST regime, intermediary services by Indian suppliers to foreign principals are taxed to GST. In common parlance, any person who enables the supply of goods/services between two persons, is considered as in...

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1 E-Way Bill, 2 GST Returns, 3 Victims Blocking of E-Way Bill on Non Filing of GST Return

GST department has issued FAQ regarding Blocking and Unblocking of generation of E-Way Bill. W.e.f 1.12.2019 The department has taken the reference of Rule 138E of CGST Rules, 2017 and has started the process of Blocking the generation of E-Way Bill of Taxpayers who have not filed GSTR 3B for consecutive 2 or more periods. Near about 20.7...

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Trust But Verify

There are various provisions in the Act which give exemptions and deductions with the sole intention of promoting Social Development & Scientific Research which contributes in the overall growth of the Nation. Section 35(1)(ii) of the IT Act is one of such provision. This article is a small effort to explain how these provisions are being...

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GST Liability of Accommodation Services Provided To A SEZ Unit

Special Economic Zone (SEZ) unit a designated duty-free enclave and is treated as foreign territory for trade operations, duties and tariffs. Since introduction of SEZ scheme in India, the Government have been provided the beneficial provisions in SEZ Acts and SEZ Rules for duty free procurement of goods from the abroad as import as well ...

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Group & Faceless Assessment: The E-assessment Scheme, 2019

With a view to impart greater efficiency, transparency and accountability, the idea of group assessment of income has been proposed over the last few decades. In the course of the re-structuring of the department, in 2001, a system of group assessment was sought to be introduced by way of setting up of assessment range, where Joint Commis...

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GST: Classification ambiguity for parts of medical devices

The issues in GST do not seem to be paving way for solutions in near future. This article is regarding highlighting the problem in the latest circular issued by the CBIC vide Circular No. 113/32/2019-GST dated 11.10.2019 in respect of the classification of parts of medical equipments. The issue that has been dealt in point […]...

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Face of Faceless e-Assessments: Artificial Intelligence, Machine Learning & Team Based Scrutiny!!

The Regular Assessments u/s 143(3)/143(3A) being conducted under the New Scheme of e-Assessments 2019, are more popularly known as ‘Faceless Assessments’ & ‘Jurisdiction-less Assessments’....

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Quo Vadis-Retrospective or Prospective

The invoking by Assessing Officers of the recently promulgated Black Money Act has its first brushes with the Courts of Law with the Hon’ble Delhi High Court and later on The Apex Court rendering almost diametrically opposite judgements. The author attempts a critical analysis of the issue and the various facets of the judgements....

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Judgments in Favour of Revenue in Penny Stock Cases

The provision for exemption of long term capital gains from shares requiring payment of securities transaction tax has been taken advantage by unscrupulous tax evaders. An organised tax evasion involving the brokers of stock exchanges, taxpayers and their consultants, entry operators and exist operators was in action for quite some time....

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Anti-dumping duty on imports of Clear float glass

Notification No. 45/2019-Customs (ADD) [G.S.R. 905(E)] (10/12/2019)

Seeks to impose anti-dumping duty on imports of Clear float glass originating in or exported from Pakistan, Saudi Arabia and UAE in pursuance of Final findings of Designated Authority in sunset review of notification No. 48/2014-Customs (ADD) dated 11.12.2014 vide Notification No. 45/2019-Customs (ADD) dated 10th December, 2019. GOVERNMEN...

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Electronic Toll Collection (ETC) / FASTag- FAQs with SOP

Q.1 What is Electronic Toll Collection (ETC) / FASTag? Ans: NHAI has rolled out program for Electronic Toll Collection on Toll Plazas on National Highways to be called FASTag. FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid account linked to it. It is affi...

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Group Level Exposure Provisions for mutual funds for investment- Amended

Circular No. SEBI/HO/IMD/DF2/CIR/P/2019/152 (10/12/2019)

Securities and Exchange Board of India CIRCULAR SEBI/HO/IMD/DF2/CIR/P/2019/152 December 10, 2019 All Mutual Funds (MFs)/ Asset Management Companies (AMCs)/ Trustee Companies/ Board of Trustees of Mutual Funds/ Association of Mutual Funds in India (AMFI) Sir / Madam, Subject: Review of investment norms for mutual funds for investment in  ...

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Government amended IEPFA Rules, 2016 to simplify refund of claims

The Investor Education & Protection Fund (Accounting, Audit, Transfer and Refund) Rules 2016 have been amended vide GSR No.571 (E) dated 14.8.2019 to simplify the process of refund of claims filed with The Investor Education & Protection Fund Authority (the Authority). ...

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Interest eligibility on IGST refunds for risky exporters

In recent times IGST refund on exports is being suspended by the customs department to some of genuine exporters also on a ground that some exporters are claiming IGST refunds fraudulently by bogus ITC bills or fraudulent ITC claims. In this article we are analyzing the legality of such withholding of refunds & the implication of interest...

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Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019

Notification No. G.S.R. 901(E) (10/12/2019)

(1) These rules may be called the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019. (2) They shall come into force on the 9 day of January, 2020....

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Amendments to Indian Stamp Act, 1899 applicable from 09.01.2020

Notification No. S.O. 4419(E). (10/12/2019)

Central Government appoints 9 day of January, 2020, as the date on which the provisions of Part I of Chapter IV related to Amendments to Indian Stamp Act, 1899 which were notified by Finance Act, 2019 (7 of 2019). Also Read- Amendments to Indian Stamp Act, 1899 applicable from 09.01.2020 MINISTRY OF FINANCE (Department of […]...

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Cash Payment to farmers for agricultural produces allowable | Section 40A(3)

Krishnasa Bhute Vs ITO (ITAT Bangalore)

Krishnasa Bhute Vs ITO (ITAT Bangalore) ITAT held that when considering Rule 6DD(e)(i) of the Income Tax Rules, 1962, and when the payment was made by cash exceeding Rs. 20,000/-, it was permissible if the same was paid for purchase of agricultural produces. If there are entries in the books of accounts and payment is […]...

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HC explains Law of search & seizure of Goods under GST, Customs Act & CrPC

Md. Tajal Hussain Vs State of Assam (Guwahati High Court)

Md. Tajal Hussain Vs State of Assam (Guwahati High Court) The appellant took the stand that under Section 67 of the Assam Goods and Services Tax Act, 2017 (for short, AGST Act 2017), the search and seizure can be made only upon the proper officer, being not below the rank of Joint Commissioner, having reason […]...

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GST on printing of content provided by customer on poly Vinyl Chloride banners

In re Macro Media Digital Imaging Private Limited (GST AAR Andhra Pradesh)

In re Macro Media Digital Imaging Private Limited (GST AAR Andhra Pradesh) 1. Whether the transaction of printing of content provided by the customer, on poly Vinyl Chloride banners and supply of such printed trade advertisement material is supply of goods? The applicant in the instant case takes up the supply of trade advertising materia...

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Changes in First Schedule to Customs Tariff applicable from 01.01.2020

Notification No. 89/2019 – Customs (N.T.) [G.S.R. 904(E)] (10/12/2019)

Appointing the date for enforcing section 88 (b) of the Finance (No. 2) Act, 2019 to bring out the changes in the First Schedule to the Customs Tariff Act, 1975 vide Notification No. 89/2019 – Customs (N.T.) Dated 10th December, 2019. GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CENTRAL BORD OF INDIRECT TAXES […...

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Tamarind Seed falls under HSN Code 1207; 5% GST Applicable

In re Sri Venkata Vijaya Durga Traders (GST AAR Andhra Pradesh)

In re Sri Venkata Vijaya Durga Traders (GST AAR Andhra Pradesh) Whether Tamarind Seed attracts Nil Rate under HSN Code 1209 (Forest Trees Seed) or not? The Tamarind Seed as referred by the applicant is classified under schedule -I as per Sl-No. 70 of Chapter / Heading/ Sub – Heading/ Tariff Item of 1207 as […]...

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Baked food having more than 20% by weight meat is classifiable under HSN 1601

In re Switz Foods Pvt Ltd. (GST AAR West Bengal)

Chicken meat is used as a filling in most of the above products where bread or baked flour is used as the base. The baked product (sandwich, puff, patty, burger etc.) as distinct food preparations will survive even if the chicken meat is excluded from the filling. They are, therefore, not food preparations based on chicken meat. Such bake...

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29 Budget Glossary You must know

Union Budget is the most comprehensive report of the Government's finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government's accounts for the next fiscal year called Budgeted Estimates....

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Valuation For Inter-Branch Transactions Under GST

During the pre-GST era, for inter-State stock transfers the major concern of the Industry was with regard to additional cost of CST and the compliance burden of submission of statutory forms. However, there was no concept of deemed service between branches located in two different States and hence there was no requirement to pay Service T...

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December 2020