"20 February 2020" Archive

11 Major GST problems faced by Trade and Industry

Learned GST Expert CA Sudhir Halakhandi has given a Memorandum for GST problems faced by Trade and Industry and made suggestions to solve them to give relief to Trade and Industry. He has made the suggestion to  Give one chance to remove technical mistakes and allow the revision of returns, Waive Interest on gross tax […]...

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Affordable house to low income group amount to ‘Relief to Poor’ & eligible for section 11 exemption

Surat Urban Development Authority (SUDA) Vs DCIT (ITAT Ahmedabad)

The issue under consideration is that whether the activities carried out by Surat Urban Development Authority are considered as Charitable Activities and hence entitled to the exemption under section 11 of the Income Tax Act or not?...

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Explained Jewellery cannot be included while giving benefit of CBDT Instruction related to Unexplained Jewellery

Shri Ram Prakash Mahawar Vs DCIT (ITAT Jaipur)

CBDT Instruction No. 1916 allowing the specific quantity as reasonable and need not to be explained, does not include the jewellery which is otherwise explained by proof of documents of acquisition as well as declared/ recorded in the books of account of the assessee....

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Certified Copies of Examination Answer Sheets under RTI by ICAI

Update on Certified Copies of Answer Sheets under the RTI by ICAI for Nov 2019 Examination Dear Friends, I’m receiving many messages and mails reporting certified copies under the RTI was not received even after 30 days from the date of filing RTI application and many are worried about the decrease of marks upon suo-motu […]...

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Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates

The penalty under section 271J of the Income Tax Act are levied on an accountant or a merchant banker or a registered valuer, in case the said professionals have provided incorrect information in any of the report or certificate. The provisions of the said section 271J is taken up and explained in the present article. […]...

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Representation for Amendments made in Section 254 of Income Tax Act, 1961

Finance Bill, 2020 has proposed certain amendments in section 254 of the Income Tax Act, 1961. These amendments need your separate attention; therefore, we are sending a representation describing the hardships to you for your kind consideration....

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Unit in Free Trade Warehousing zone exempt from service tax on export

M/s Broekman Logistics India) Pvt Ltd. Vs Commissioner of GST & CE  (CESTAT Chennai)

M/s Broekman Logistics India) Pvt Ltd. Vs Commissioner of GST & CE  (CESTAT Chennai) Appellant is authorized to carry out the operations by setting up a unit in the FTWZ zone. They have been rendering Storage and Warehousing services predominantly to foreign customers. On the charges collected for services rendered to Indian customer...

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Scholarships For CA Students

Board of Studies, ICAI invites applications for the award of Scholarships to the selected candidates to be paid from April 1, 2020 onwards under following categories: Sr. No. Scholarship Category No. of Scholarships Amount (p.m.) Eligibility Criteria 1. Merit-cum-Need As per eligibility criteria Rs.1500/- Rank holders (other than covered ...

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Bogus share capital/ premium- SC dismisses Review Petition of NRA Iron & Steel

NRA Iron & Steel Pvt. Ltd Vs PCIT (Supreme Court)

NRA Iron & Steel Pvt. Ltd Vs PCIT (Supreme Court) In this case earlier Hon’ble SC has upheld addition under Section of Share Capital and Share premium Considering the Same as Bogus as Appellant was  failed to prove the genuineness of the transaction of receiving share application money and to prove the creditworthiness. A petit...

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No Section 271(1)(c) penalty for genuine omissions in Income Tax Returns

Omega Corrugators Pvt. Ltd Vs ITO (ITAT Mumbai)

Omega Corrugators Pvt. Ltd Vs ITO (ITAT Mumbai) ITAT Mumbai bench has held that genuine omissions must be excluded from the levy of penalty under section 271 (1)(c) of the Income Tax Act, 1961. We find that assessee has debited a sum of Rs.3,57,541/- towards loss on sale of motor car in its profit and […]...

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Right of Member to Copies of Audited Financial Statement

Copy of Financial Statement (defined under section 2(40) of the Companies Act, 2013 (‘the Act’) shall be sent to persons as envisaged under Section 136 of the Act. Section 136 also tells about the mode, time limit and other additional compliance related to same. This articles briefly elaborates Section 136 of the Act. Section ...

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Bombay HC puts Income Tax Assessment of Deepak Kochhar on hold

Deepak Kochhar Vs DCIT (Bombay High Court)

In the well known case of Deepak Kochhar, the husband of ex-ICICI Bank CEO Chanda Kochhar Bombay High Court has passed an order that the Income Tax (IT) Assessment Order pertaining to the Assessment Year 2012-13 which was passed against Deepak Kochhar was put on hold and further, the High Court ordered to move to the First Appellate Autho...

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Ease of doing business- New SPICE+ Form for company incorporation

According to MCA as part of Government of India’s Ease of Doing Business (EODB) initiatives, the Ministry of Corporate Affairs has notified & deployed a new Web Form Christened ‘SPICe+’ (pronounced ‘SPICe Plus’) replacing the existing SPICe form. The Ministry of Corporate Affairs is replacing the existing SPICe (Simplified...

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All about SPICE and new SPICE+Form

The new SPICe+ form provides even more services in a single form than the previous SPICe form. This might result in increase in company formations and lesser difficulties along with better compliance. The Ministry has taken a prudent decision and this can result in even quicker company incorporations....

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Checklist For ESOP (Employee Stock Option Plan) by private company

Checklist for issue of ESOP by private company As per 2(37) ’employees stock option’ means the option given to the directors, officers or employees of a company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscr...

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Coverage of Government Companies under IBC

Whether a government company can be subjected to insolvency under IBC The NCLT Mumbai Bench has, in the case of Harsh Pinge Vs Hindustan Antibiotics Limited, dismissed the application by operational Creditor under Section 9 of the IBC, on the ground that the Corporate Debtor i.e. Hindustan Antiboitics Ltd being a Government Company, is a...

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Math of ESOP World

Union Budget 2020-21 has undoubtedly paved the way for start ups to retain and recruit the human talent by issuing ESOP in the initial years when most of them face liquidity crunch. The Union budget 2020-21 speech states in the words of honourable finance minister Nirmala Sitharaman, “I propose to ease the burden of taxation [&helli...

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Registration in Ladhak post Reorganisation of State-Amended after 1/1/2020

Opinion on Ladhak Registration Post Reorganisation of State The Central Board of Indirect Taxes and Customs (CBIC) has reallocated the New Goods and Services Tax Identification Number ( GSTIN ) to Taxpayers of Union Territory of Ladakh. In a Statement issued by CBIC said that, New GSTINs are reallocated to active existing taxpayers regist...

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Recovery of debts due to Banks & Financial institutions Act, 1993- Important facts

We are fifth largest developing economy in the world and just left behind UK and France few days back. We are second largest country in the world in case of population. We have largest young skilled workforce in the world. For sustainable development of a country a sound and perfect, protected system of banking is […]...

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Section 68 addition cannot be made when source of sources proved

ACIT Vs. Veritas (India) Ltd. (ITAT Mumbai)

Veritas (India) Ltd. Vs ACIT (ITAT Mumbai) Conclusion: Assessee had established identity of investors and submitted documents to establish creditworthiness and the certificate issued by the Firm of Accountants for proving the movement of funds from ultimate investors to the foreign companies which establish genuineness of transactions thu...

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Amended Direct Tax Vivad se Vishwas Bill, 2020

♠ Presently, a large number of Income-tax appeals are pending at various levels of adjudication namely, Commissioner (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts, and Supreme Court. These appeals have been filed by taxpayers as well the Department. ♠ Due to the fact that every year more appeals are filed than are dispo...

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Remuneration to director attracts GST under RCM

In re Clay Crafts India Pvt. Ltd. (GST AAR Rajasthan)

In re Clay Crafts India Pvt. Ltd. (GST AAR Rajasthan) Clay Craft India Pvt Ltd has filed an application before the Rajasthan bench of the AAR to sought clarification on  Whether GST is payable under Reverse Charge Mechanism (RCM) the salary paid to Director of the company who is paid salary as per contract and  […]...

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Practical issues in Presumptive Taxation – 44AD, 44ADA & 44AE

Under section 44AD from if the Turnover of an assessee being resident individual, HUF, Partnership Firm (not being a LLP) and who is not claiming deduction under section 10A, 10AA, 10B &10BA or deduction under Chapter VI A under the heading ‘C -Deductions in respect of certain Incomes and derives income from any business except...

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Cash Receipt!! Is it really a Receipt??

Central Government is putting all efforts to curb use of cash which is focused on un-accounted transactions. As we all know, not all transactions that are transacted in cash hold the colour of un-accounted money, the contrary is that all the un-accounted transactions takes place in cash....

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Supporting for claim of Leave Travel Concession (LTA) – Mandatory?

LEAVE TRAVEL CONCESSION UNDER SECTION 10(5) OF INCOME TAX ACT,  1961: The amount exempt under section 10(5) for LTA/LTC is the value of any travel concession or assistance received or due to the assessee from his employer for himself and his family in connection with his proceedings on leave to any place in India. Exemption […]...

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House Rent Allowance – Case Study and Provisions

Employees generally receive a House Rent Allowance (HRA) from their employers to meet the cost of a rented house taken by the employee for his stay. This allowance is generally a part of the salary package or as stated in the terms and conditions of the employment....

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Revival of Companies | Section 252 | Companies Act, 2013

Section 248 -Power of Registrar to remove name of company from register of companies A company struck-off under Section 248 of the Companies Act, 2013 can be restored in the Register of Companies by an order of the National Company Law Tribunal (NCLT). Who can file an Application and Where to file an Application for […]...

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Section 40(a)(ia) not gets attracted for lesser deduction of TDS

DCIT Vs Chandabhoy & Jassobhoy (ITAT Mumbai)

DCIT Vs Chandabhoy & Jassobhoy (ITAT Mumbai) Section 40(a)(ia) can be invoked only in the event of non deduction of tax (TDS) but not for lesser deduction of tax.  Hence, this will not be the reason to disallow the expense u/s 40(a)(ia) just because of less deduction since section 40(a)(ia) can be invoked only in […]...

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Inquire against officers liable for inordinate delay in Appeal Filing: SC

Administrator Jammu Municipality and Anr. Vs Swarn Theatre and Ors. (Supreme Court)

The applications for condonation of delay in filing and refiling will be dismissed and then direct the State administration to hold an inquiry into the aspect as to who is responsible for such inordinate delay and take suitable action against the officers concerned....

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How to Opt for Composition Levy under GST with FAQs

Article explains how to opt for the Composition Levy under GST, How to opt for Composition Levy if already registered as a regular taxpayer, How to go from regular to composition scheme in GST,  When one can opt for Composition Levy, Stock Intimation and How to  file Stock Intimation, returns to be filed by a […]...

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How to Withdraw from GST Composition Levy with FAQs

The application to withdraw from the Composition levy is required to be filed within 7 days from the date when taxpayer fails to satisfy any condition of Section 10 of CGST/ SGST Act or rules made thereunder or a taxpayer may also voluntarily opt out of the Composition levy by filing an application....

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How taxpayer opted for Composition Levy can intimate Stock Details?

In addition to filing the application to opt for Composition Levy, the Migrated taxpayers are also required to file a form for Stock Intimation to furnish the details of stock including inward supply of goods from unregistered persons, held by them on the day preceding the date from which they opt to pay the composition levy. ...

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All about Filing of Form GST CMP-08

FAQs > Filing Form GST CMP-08 General Q 1. What is Form GST CMP-08? Ans. Form GST CMP-08 is used to declare the details or summary of self-assessed tax which is payable for a given quarter by taxpayers who are registered as composition taxable person or taxpayer who have opted for composition levy. Q 2. […]...

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Conflict of Interest under Insolvency and Bankruptcy Code, 2016

Conflict of interest (COI) occurs when an entity is in a position to exploit its official or personal capacity in some way for personal or corporate benefit. Few instances in which Conflict of interest arises under Insolvency and Bankruptcy Code, 2016 : 1. A prime example where conflict of interest can arise is between the […]...

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Compulsory Withdrawal from GST Composition Levy: FAQs

Q 1. What is meant by Compulsory Withdrawal from Composition Levy? Ans. A taxpayer can opt out of Composition levy in any of the two ways: Voluntarily opt out of Composition levy by filing Form GST CMP-04 on the GST Portal or Compulsorily removed out of Composition levy by the Tax Official at any time […]...

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Empanelment of CA firm for concurrent audit of Andhra Bank

1 Andhra bank invites applications from practicing Firms of Chartered Accountants, who are willing to have their Firm empanelled as Concurrent auditor of the bank. Those Firms, who have already sent their profiles / bio data need not apply again....

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Alternative Dispute Resolution in commercial disputes

The importance of Alternate Dispute Resolution (ADR) is burgeoning day by day, in commercial disputes, both National and International level, because the Courtroom is flooded with cases. ADR means, the dispute resolution methods available for settling disputes without squandering time and money by going through the litigation process and ...

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Sec. 11 exemption cannot be denied for high salary to Doctors

DCIT Vs Birla Nagar Jan Sewa Trust (ITAT Agra)

AO was not justified in denying the exemption under section 11 on the ground of excessive payment of salary and professional fees to Doctors as the services rendered by doctors who had passed out with the same degree in Cardiology (DM) could not be compared with experience doctor working in the field for the last ten years....

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CBIC notifies Rate of Exchange of Foreign Currencies wef 21.02.2020

Notification No.15/2020-Customs (N.T.) (20/02/2020)

Exchange Rate Notification No. 15/2020-Customs (NT) dated 20th February, 2020 Notifying Customs Rate of Exchange of Foreign Currency Conversion w.e.f. 21st February, 2020. GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No. 15/2020 – Customs (N.T.) New ...

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Kerala GST department forms GST Grievance Redressal Committee

Notification No. 01/2020 - State Tax (20/02/2020)

The proposed GST Grievance Redressal Committee is to consist of the Chief Commissioner of Central Tax (Co-chair), Commissioner of State Tax (Co-chair), Representatives of Trade Associations upto 12 nos., Representatives of prominent Associations of Tax professionals upto 4 nos., Central and State Nodal officers of ITGRC (IT Grievance Red...

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AP RERA- Skill, Safety, Third Party Certification on all Projects

Circular No. A/1104/2019 (20/02/2020)

Circular No.: A/1104/2019, Dt:20-01-2020. General Direction to the Promoters as per the Section 37 of the RERA Act Andhra Pradesh Real Estate Regulatory Authority Circular No. A/1104/2019, Dt 20.01.2020. The Parliament has enacted ‘The Real Estate (Regulation and Development) Act 2016‘, to establish the Real Estate Regulatory ...

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Procedure for Selection of Best Officers in Income Tax department

F. No.275/33/2019-IT (B) (20/02/2020)

it is decided that every month commencing from January, 2020 and onwards, the best performing `Officers/Officials who have achieved excellence in the prime areas, namely investigation, collection, administration, audit or innovation in the organizational functioning shall be selected by a Committee of Commissioners formed in each region a...

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Guidelines for Selection of Cases for Scrutiny for FY 2019-2020

Circular No. MIRSD/DPS III//Cir-11/07-SEBI (06/08/2007)

CBDT has issued an Instruction by which it has laid down the procedure and criteria for compulsory manual selection of returns/cases requiring scrutiny during the financial-year 2019-20....

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How to open password protected files of Income Tax and TDS

Article explains the password combination for Opening ITR-V/Acknowledgement, Form 26AS, Any Intimation/Order and TDS Provisional Receipt/Acknowledgement and for extracting TDS Justification Report, Conso File, TDS Certificates ZIP File and 26AS ZIP File....

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Tax Benefit on Home Loan

Repayment of housing loan is through Equated Monthly Installments (EMI) which consists of principal and interest component. As the repayment comprises of 2 different components, the tax benefit on home loan is governed by different sections of the Income Tax Act and these are claimed as tax deductions under different sections while filing...

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Receiving HRA? Rent a house to save Income Tax

With the cascading cost of living, renting an accommodation is a major financial outflow for an individual. However, the same rented accommodation can help save some tax for salaried employees. In current salary packages, employees receive house rent allowance (HRA) to meet the cost of renting an accommodation. A salaried employee staying...

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Health Insurance Plans- Medical Coverage & Tax Benefits

Health is the greatest asset for a human being. Since inflation has made medical bills costlier than ever, having a health insurance policy has its own perks, whatsoever. Investing in health insurance offers amazing returns on investment. You get coverage against expensive hospital bills that can wipe up your savings in one go. It ensures...

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Advisory on Opting-in Composition Scheme for 2020-21

Advisory on Opting-in Composition Scheme for 2020-21 by filing FORM GST CMP-02 Article explains Who can opt in for GST Composition Scheme, How to opt in for Composition , taxpayers who can opt for Composition, taxpayers who cannot opt for the Composition, Submission of Stock Intimation Details by those opting for GST Composition Scheme an...

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Employees Pension (Amendment) Scheme, 2020

Notification No. G.S.R.132 (E). (20/02/2020)

Employees' Pension (Amendment) Scheme, 2020- 12B. Restoration to normal pension in cases of grant of commutation. – The normal pension in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of this Scheme, on or before the 25th day of September, 2008, shall be restored after compl...

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Due dates of filing Form GSTR 3B for the month of January 2020

Due dates of filing Form GSTR 3B, for the month of January, 2020 a.Government of India vide Notification No. 07/2020 – Central Tax dated 03rd February, 2020, has staggered filing of Form GSTR-3B, for period of January 2020, in the manner as given below: Sl. No. Taxpayers with aggregate turn over in the previous financial […]...

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CBIC Concept Paper on Faceless e-Assessment for imported goods

Notice calling for suggestions, views, comments etc. from stakeholders on Faceless e-Assessment for imported goods The general public and the trade at large are hereby informed that CBIC is planning to launch Faceless e-Assessment for imported goods. A detailed Concept Paper on Faceless e-Assessment is enclosed. All members of the trade/ ...

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Customs preparing for surge in Import/Export after ‘Coronavirus’ Control

Instruction No. 02/2020-Customs (20/02/2020)

Due to ongoing shutdown in China on account of Coronavirus outbreak, there is an apprehension of disruption in supply of raw materials/ inputs to our industrial units which were dependent on these raw materials. There could also be a dip in offtake in exports to China. On the contrary, there is a strong likelihood of an immediate surge in...

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Anti Evasion wing of CGST Delhi detects tax evasion of Rs. 38.05 crores

Anti Evasion wing of CGST Delhi has detected a case of Input Tax credit fraud through fake invoices issued by bogus firms. Investigations led to discovering the accused had also been generating bogus e-way bills to back the fake invoices....

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Lawyer fee on daily basis for business allowable as revenue expense

PCIT Vs Adani Properties Pvt. Ltd. (Gujarat High Court)

The Gujarat High Court has held that the lawyer fee/legal assistance expenditure taken by the assessee on day to day basis for the purpose of business can be treated as revenue expenditure and deductable from Taxable Income....

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December 2020