"27 February 2020" Archive

Limited scrutiny cannot be converted into complete scrutiny without seeking permission from competent authority

Shri Sita Ram Swami Vs ITO (ITAT Jaipur)

Addition made u/s 69 was liable to be quashed as the order passed by AO would be nullity as he couldn’t convert limited scrutiny into complete scrutiny in absence of requisite approval from the competent authority....

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CARO, 2020- Auditor’s Are You Vigilant?

very report made by the auditor under section 143 of the Companies Act on the accounts of every company audited by him, to which this Order applies, for the financial years commencing on or after the 1st April, 2019, shall in addition, contain the matters specified in paragraphs 3 and 4, as may be applicable: -...

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Posted Under: Income Tax |

HC: No Interest if IGST wrongly paid inadvertently as CGST

The Hon’ble HC, Jharkhand in the matter of Shree Nanak Ferro Alloys Pvt. Ltd.  vs. Union of India [W.P.(T) No. 2246 of 2019 dated December 18, 2019] directed the Petitioner to deposit the amount of Rs. 41,98,642/-, under the Integrated Goods and Service Tax (“IGST”) head, towards the liability of September, 2017 and quashed the [&h...

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Posted Under: Income Tax |

Representation on issues related to GST Act, GST portal, network

All India Federation of Tax Practitioners has made a Representation on issues being faced by taxpayers and tax professionals related to GST Act, GST portal, network and glitches thereof. Text of the same is as follows-...

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Posted Under: Income Tax |

Rajasthan HC stays Recovery of Interest on Gross GST Liability

M/s Perfect Turners Vs Union of India (Rajasthan High Court)

Perfect Turners Vs Union of India (Rajasthan High Court) In this case on the issue of Interest Payment under Section 50 of Central Goods and Services Tax Act, 2017 that whether it should be on Gross GST Liability or on Net GST Liability in the case of delayed Submission of form GSTR-3B, High Court has […]...

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DGGI Kolkata Zonal Unit unearths 500 Crore fraud of Fake GST Invoices

On 25th February, 2020, the Directorate General of GST Intelligence (DGGI), Kolkata Zonal Unit (KZU), arrested 02 (two) persons in a case of GST fraud involving Rs. 500 crores of bogus transaction with involvement of GST credit of more than Rs. 96 crores....

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Posted Under: Income Tax |

If Designated Committee not issues SVLDRS 3 within 30 days it is a case of deemed discharge

Exotica Housing Pvt. Ltd. Vs Commissioner, Central Excise, Customs, Goods and Service Tax (CESTAT Delhi)

Exotica Housing Pvt. Ltd. Vs Commissioner, Central Excise, Customs, Goods and Service Tax (CESTAT Delhi) if Designated Committee has not issued SVLDRS 3 within 30 days it is a case of deemed discharge under SVLDRS- In that circumstances, SVLDRS-3 form has not been issued to the appellant, therefore, the designated authority was duty bound...

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Application for Compounding of Offence can’t be rejected on Technical Grounds

M C Punjwani Vs Commissioner of Custom (CESTAT Mumbai)

The purpose of compounding of offences against payment of compounding amount is to prevent litigation and encourage early settlement of dispute. In the guidelines issued vide Circular No. 15/10/2009 no prohibition has been imposed against deciding the application for compounding...

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Service Tax payable on Contribution to Secure Depositors Interest

Kerala Co Operative Deposit Guarantee Fund Board Vs Commissioner of Central Tax And Central Excise (CESTAT Bangalore)

Deposit Insurance Contract is also a general insurance contract as defined in law and merely because they are statutorily prescribed, they do not cease to be contract of insurance. The insurer is the Corporation, the insured are the banks and the beneficiary is the depositor(s)...

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No requirement to prove source for receipts which is a case of repayment of loan

ITO Vs Vijay Dwellers Pvt. Ltd. (ITAT Mumbai)

In the given case, the appeal is filed by revenue against the order of Commissioner of Income Tax (Appeals). The issue here is that as per assessing officer there is requirement for assesse to prove the source of funds in the hands of the receipts received by assessee. ...

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Matters to be included in auditor’s report as per CARO, 2020

Matters to be included in auditor’s report as per Order called the Companies (Auditor’s Report) Order, 2020 (CARO, 2020) The Central Government, after consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013, hereby issued the Order called the Companies (Auditor̵...

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Posted Under: Income Tax |

Most Important Exemption Under Total Income

INCOME WHICH DOES NOT PART OF TOTAL INCOME UNDER INCOME TAX ACT SECTION-10. INTRODUCTION: Various categories of income are exempt from income tax under section 10. however, the ones of showing the class of income is exempt from taxation lies on the assessee. To learn the assessee has to establish that his case clearly and […]...

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Posted Under: Income Tax |

Changes in Companies (Auditor’s Report) Order, 2020 (CARO 2020)

MCA Notified the Companies (Auditor’s Report) Order, 2020 (CARO 2020) Applicability: The The CARO, 2020 is applicable for audit of financial statements of eligible companies for the financial years commencing on or after the 1st April, 2019. Changes in the CARO 2020. 1. There are no changes in the applicability of CARO, 2020. 2. There [...

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Posted Under: Income Tax |

Analysis on New GST Return (GST RET-1)

Introduction of New GST Return- The GST department introduced new GST return system w.e.f. 01st April, 2020 i.e. F.Y. 2020-2021. Overview- In the proposed system of new GST Return filing, a normal taxpayer would have to file FORM GST RET-1 (Normal) or FORM GST RET-2 (Sahaj) or FORM GST RET-3 (Sugam), on either monthly (GST […]...

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Posted Under: Income Tax |

Penal Provisions under Sections 84 to 86 of ESI Act, 1948

Penal Provisions Under Sections 84 To 86 of Employee State Insurance Act, 1948 INTRODUCTION: The employee state insurance act, 1948 is the first major legislation on social security for the employees in India. It is devised to provide social protection to employee in contingencies such as illness, long term sickness or any other health ri...

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Posted Under: Income Tax |

Compulsory Registration For GST In Certain Cases

Sec. 24: the following categories of persons shall be required to be registered under GST: i. Person making any inter-state taxable supply; If a person makes a single inter-state supply, he will be liable to obtain registration and pay GST ii. Causal taxable persons making taxable supply; Causal taxable person meansa person who occasional...

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Posted Under: Income Tax |

GST Liability on Intellectual Property Right (IPR) Related Services

In this article, An attempt has been made to simplify GST liability on services related to Intellectual Property rights. What is Intellectual Property Right:- The term ‘Intellectual Property Right’ (IPR) has not been defined in GST Law. MF(DR) circular No. B2/8/2004-TRU dated 10-9-2004 states as follows – Intellectual pr...

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Posted Under: Income Tax |

Comparative analysis of CARO, 2020 and CARO, 2016

Dear Professional Colleagues and Friends, well in advance of preparing Audit Plan and Audit Programme for Statutory Audit for the F.Y. 2019-20, MCA has come up CARO, 2020. Thus, Auditors and respective stakeholders, take a note of changes brought in by MCA in CARO Reporting and also the Management and those charged with Governance, be [&h...

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Posted Under: Income Tax |

Tax Deduction for Contribution or Donation to Political Parties

Article explains What is the Political Party, What is the Electoral Trust, Who eligible to contribute or donate to the Electoral Trust or Political Parties, What is the Donation to Political Parties, What is Section 80GGC of Income Tax Act, 1961, What is the Eligibility Criteria for Claiming Tax Benefits under Section 80GGC, What is [&hel...

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Posted Under: Income Tax |

Conversion of LLP into Company limited by shares

Article explains Steps for Conversion of LLP into Company limited by shares, List of Documents required filing with ROC for conversion of LLP into Company in Form URC-1, Company required to file e-form for Conversion of LLP into Company limited by shares and FAQs on Conversion of LLP into Company limited by shares. List of […]...

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Posted Under: Income Tax |

Negetive List of Duty Drawback (Section-76) under Custom Act,1962

Section 76 of the Customs Act, 1962 contains the provisions in respect of prohibition and regulation of drawback and no drawback shall be allowed in the following circumstances: (a) In respect of any goods, the market price of which is less than the amount of drawback due thereon, (b) If the Central Government is of […]...

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Posted Under: Income Tax |

Interest on GST – Section 50 -A New Hurdle

Since GST has been Implemented Every Day a New hurdle is taking place in GST compliances Government is trying to do various experiment. As from several months the government Revenue from GST is constantly Decreasing the government changed the Rules & Conditions for claiming the Input Tax Credit (ITC) in GSTR-3B CBIC has inserted the...

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Posted Under: Income Tax |

E-Invoicing under GST – Brief Analysis

As another emerging issue under GST for a Taxpayer is Whether he need to Generate an E-Invoicing from 01-04-2020 & if Yes then –  What is an E- Invoicing? – Does E-Invoicing mean preparation or generation of tax payer’s invoice on Government portal? – Who shall generate IRN & QR Code? – What types of ...

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Posted Under: Income Tax |

Section 50- Interest to be Paid on GROSS or NET GST Liability?

Many of the registered persons are receiving notices to pay interest on GROSS liability for delay in filing of GSTR 3B returns in case of failure to pay so the department may initiate recovery proceedings under sec 79, because of which there is as huge confusion among the registered tax payers regarding calculation of interest. […]...

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Posted Under: Income Tax |

New CARO 2020-puts in place stringent disclosure norms

MCA has notified new CARO 2020 wherein all the existing clauses are there. Some new clauses are added and some are amended. There are various reporting requirements on the auditor now....

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Posted Under: Income Tax |

Conversion of OPC into Private/Public Limited Company

As per Section 2(62) of Companies Act, 2013 read with Rule 3 of Companies (Incorporation) Rules, 2014, “One Person Company” means a company which has only one person as a member, and that person should be a natural person who is an Indian citizen and resident in India*- (a) shall be eligible to incorporate a […]...

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Posted Under: Income Tax |

Tax Implications on Drop-shipping business in India

GST law do not require a business to get registered under GST if it is exclusively engaged in export of goods or services. so legally speaking, if you are exclusively engaged in international drop-shipping with no domestic business in India, you aren’t required to register under GST....

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Posted Under: Income Tax |

Companies Auditor Report Order (Caro) Rules, 2020 – Analysis

COMPANIES AUDITOR REPORT ORDER (CARO) RULES, 2020 – Analyses The MCA has issued the Companies (Auditor’s Report) Order, 2020 (CARO 2020), on 25th February 2020. This order has been issued in supersession of the Companies (Auditor’s Report) Order, 2016, and is applicable for reporting on financial statements of companies whose fi...

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Posted Under: Income Tax |

Direct Tax Vivad se Vishwas Act, 2020 (Amended)

THE DIRECT TAX VIVAD SE VISHWAS Scheme, 2020- An Analysis of the Scheme Article explains Salient Features Of The Direct Tax Vivad Se Vishwas Act, 2020 (‘Scheme’), Steps Involved In Payment Of Tax Arrears, Important Definitions Under The Direct Tax Vivad se Vishwas Scheme, Amount Payable By Declarant (As Per Section 3), Filing Of Decla...

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Posted Under: Income Tax |

Representation on Buring issue under GST

Nag Vidarbha Chamber of Commerce has made a Representation and suggestions on few provisions under GST which includes suggestions on provision of Sec. 16(4) of CGST Act 2017 which lays down the condition to take input tax credit by a dealer in books of accounts within a prescribed due time, Levy of Interest under Section […]...

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Posted Under: Income Tax |

Brief summary l MCA notification l CARO, 2020

The Ministry of Corporate Affairs (MCA) has on 25th February, 2020, after consultation with the National Financial Reporting Authority (NFRA), notified the Companies (Auditor’s Report) Order, 2020 (CARO, 2020) and thereby repealing CARO, 2016. Few important points pertaining to CARO, 2020, are given hereunder: CARO, 2020 shall apply to ...

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Posted Under: Income Tax |

SC transfer writ petition filed against decision of NAA to Delhi HC

NAA Vs Hardcastle Restaurants Pvt. Ltd. & Ors. (Supreme Court)

Supreme Court directs transfer of 3 writ petition filed against the decision of NAA to Delhi High Court. Supreme Court, observing that 20 writ petition filed against order of NAA is pending before Delhi High Court, 2 before Bombay High Court  and 1 before Punjab & Haryana High Court, held that in the interests of a uniform and consistent...

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Transfer of Shares Under Companies Act 2013

The article discusses what Share Transfer is and the procedure of Share Transfer. It is a process of share transfer of existing shares from one person to another. The procedure to transfer shares in a private limited company varies from that of a public company. You should know that the articles of a company govern […]...

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Posted Under: Income Tax |

Brief understanding of Corporate Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY CSR is a concept whereby companies not only consider their profitability and growth, but also the interest of society and the environment by taking responsibility for the impact of their activities on stakeholders, environment, consumers, employees, communities, and all other members in the public sphere. T...

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Posted Under: Income Tax |

Transfer of shares from Non-resident to Resident- Procedure

Procedure for transfer of shares from Non-resident to Resident 1. Valuation of shares: – Price of share shall be decided on the basis of valuation of Shares by a Chartered Accountant or/a SEBI registered Merchant Banker. 2. Sale consideration (net of taxes) must be remitted outside India through an authorized dealer (AD) bank. 3. Tr...

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Posted Under: Income Tax |

Major key changes between CARO 2016 and new CARO 2020

MCA in place of existing the Companies (Auditor Report) Order, 2016 has notified CARO 2020 after consultation with National Financial Reporting Authority (NFRA) constituted under section 132 of the Companies Act, 2013. Every report made by the auditor under section 143 of the Companies Act on the accounts of every company audited by him, ...

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Posted Under: Income Tax |

TCS provisions applicable from 01.04.2020- A practical analysis

TCS (Tax Collection at Source) provisions changes brought through Finance Bill 2020- A practical Analysis The provisions of TCS (Tax Collection at Source) was brought under Income tax act w.e.f 01.04.1988 with the intention of controlling tax evasion in the unorganised sector. Over a period of time several amendment has been made in TCS p...

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Section-8 Micro Finance Company – Features and benefits

Introduction of Section-8 Micro – Finance Company The Micro finance Company is basically the financial institutions that provide small-scale financial services in the form of loan, credit or savings. These companies are introduced to ease the credit system for small businesses as they don’t get a loan from banks due to their compl...

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Posted Under: Income Tax |

Procedure & Regulations for Appointment of Additional Directors

Procedure And Regulations For Appointment of Additional Directors (Under Companies Act-2013) Under the Companies Act 2013, Every directors appointed by the members of the company, but appointment of Additional Directors is the exceptions to this:  Under Section 161(1) BOD the power  to appoint any person other than a person who fails to...

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Posted Under: Income Tax |

Withdrawal of Provident Fund and Its Taxability – Synopsis

PF withdrawal is taxable if a person has worked in the company for less than 5 years. Tax cannot be saved even by investing in any govt schemes / bonds. It just gets added to income from salaries, and then the taxability will depend upon the Gross Income of the assessee. ...

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Posted Under: Income Tax |

SEBI amends SEBI (International Financial Services Centres) Guidelines, 2015

Circular No. SEBI/HO/MRD1/DSAP/CIR/P/2020/30 (27/02/2020)

Clause 8 (1) of SEBI (IFSC) Guidelines, 2015 is being amended to read as under: 8 (1) Any SEBI-registered intermediary (except trading member or clearing member) or its international associates in collaboration with such SEBI-registered intermediary may provide financial services relating to securities market, in IFSC, without forming a s...

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Download GST Invoice Wise Reconciliation Utility

Invoice wise Reconciliation – Although the purpose is fulfilled through Party wise utility but to be more precise this utility is developed. It works on the criteria of Invoice number + GST number and the respective tax amount. As an additional feature, the user may ignore the desired amount (i.e., rounding up) in the process […]...

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Posted Under: Income Tax |

HC: Powers of Commissioner can be delegated to Special & Additional Commissioner of State Tax under GST

Nathalal Maganlal Chauhan Vs State of Gujarat (Gujarat High Court)

Commissioner is empowered to delegate his powers to the Special Commissioner or the Additional Commissioners of State Tax  and once the powers are delegated for the purpose of Section 69 of the Central Goods and Services Tax Act, 2017, the subjective satisfaction, or rather, the reasonable belief should be that of the delegated authority...

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Builder found guilty of denying benefit of ITC to buyers of flats: NAA

Deepak Kumar Barnwal Vs Manas Vihar Sahakari Awas Samiti Ltd. (NAA)

Respondent shall reduce the prices to be realized from the customers/buyers commensurate with the benefit of ITC received by him as has been detailed above. The above amount of Rs. 35,98,596/- which includes 18% GST on the base profiteered amount of Rs. 30,49,658/- has been profiteered by the Respondent from the Applicant No. 1 and the ot...

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NAA not accepted argument of Increase in Cost on the day of Reduction in GST

Rahul Sharma Vs Samsung India Electronics Pvt. Ltd. (National Anti-Profiteering Authority)

Rahul Sharma Vs Samsung India Electronics Pvt. Ltd. (National Anti-Profiteering Authority) The Respondent has also claimed that the anti-profiteering provisions were in the nature of restricting the right to carry on trade freely in terms of Article 19(1) (g) of the Constitution of India and earn reasonable profit. In this connection it w...

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Divisions Codes of Industrial Activities For Company Incorporation

CATEGORY WISE LIST OF MAIN DIVISIONS OF INDUSTRIAL ACTIVITIES FOR INCORPORATION OF COMPANY VIA SPICE+ S No Categories Divisions (Codes) 1 Agriculture and Allied Activities Agriculture, Hunting and related Service activities (01); Forestry, logging and related Service activities(02); Fishing, Operation of fish hatcheries and fish farms; Se...

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Posted Under: Income Tax |

IP warned to be extremely careful, diligent & act strictly as per law

Order No. IBBI/DC/18/2020 (27/02/2020)

Keeping in view the circumstances of the CIRP of Corporate Debtor, the RP is hereby warned to be extremely careful, diligent, strictly act as per law and similar action should not be repeated....

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