"16 March 2020" Archive

No late fee for GSTR 9

CBIC vide press release dated 14 March 2020 stated that No Late fees for delayed filing of the Annual Return for the financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores. Before this, filing of GSTR 9 was made optional for those with a turnover of less than Rs 2 crores […]...

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Legal Analysis of condition of payment of tax by seller for availing ITC by buyer [Section 16(2)(c)]

Legal Analysis of the condition of payment of tax by the seller for availing ITC by buyer [Section 16(2)(c)] Input Tax Credit is the soul of the GST Law. Ever since the enactment of the Goods and Services Tax Act, 2017 conditions for availment of input tax credit has been the subject matter of debate. […]...

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Mobilization Advance received prior to implementation of GST

In this article , an attempt has been made to simplify the content of Ruling by Tamilnadu AAR in response to question raised by M/S Shapporji Pallonji & Co Pvt Ltd.   Whether mobilization advance received prior to implementation of GST towards supply of Works Contract Service is subjected to GST? Facts & Figures: M/s. […]...

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Section 54F Capital Gain Tax Exemption

Article explains Circumstances to be fulfilled for availing exemption under section 54F,  What ‘Net Consideration’ means for Section 54F, Non-availability of exemption under section 54F, Amount of exemption available under section 54F, Circumstances under which Section 54F exemption would be withdrawn and Synopsis of the entire provi...

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Privatisation of Companies, Fake Currency & Bank Mergers

The Government has given ‘in-principle’ approval for Privatisation of 24 CPSEs including Subsidiaries, Units and Joint Ventures with sale of majority stake and transfer of management control....

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ITAT Advisory on functioning of Benches due to Coronavirus

F.No.233-Ad(AT)/2019-20 (16/03/2020)

(i) that the functioning of the Benches for a period from 17.3.2020 to 27.3.2020 shall be restricted to only urgent matters; (ii) that the Authorized Representatives or parties in person may mention their matters showing their urgency before the concerned Bench and upon the satisfaction of urgency, the Bench shall hear such matters;...

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Foreign Exchange Management (Debt) And (Non-Debt) Regulations, 2019

Foreign Exchange Management (Debt) And (Non-Debt) Regulations, 2019 Read With (Non-Debt) Amendment Regulations, 2019 A STEP TOWARDS STREAMLINING THE INVESTMENT PROCESS IN INDIA To bring in line the changes as proposed in the Finance Act, the Ministry of Finance vide its Notification (S.O. 3732(E)) dated October 17, 2019 notified the Forei...

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ESI contribution due date extended for February & March 2020

Notification No. P-11/14/Misc./1/2019-Rev (16/03/2020)

The ESI contribution for the month of February, 2020 & March 2020 can be filed & paid up to 15th April, 2020 & 15th May 2020 instead of 15th March, 2020 & 15th April, 2020 respectively....

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Note on Recommendations Made In 39th GST Council Meeting

Various recommendations have been made by the GST Council in its meeting held on 14.03.2020 which is likely to be notified soon. Relevant points are as follows: 1. Interest for delay in payment of GST to be charged on net cash tax liability w.e.f. 01.07.2017 instead of gross tax liability (Law to be amended retrospectively). 2. […...

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Legal Approvals Required to Run a Clinic or Hospital in India

That’s why if you start any business must considered Legal Compliance Management Company first. thay give proper guidance legal and compliance auditing services and same handle every thing through legal and regulatory compliance software. In today’s legal landscape, commencing a private practice as a health care service provider b...

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Bank Audit Excel Utility for SBI

This excel tool can convert the text files and perform workings for analysis of NPA, sample selections etc. This utility would work for SBI only....

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Visa and Travel restrictions related to COVID-19

No.1 /Comm/1301/2020-07 (16/03/2020)

Passengers travelling from / having visited Italy or Republic of Korea and desirous of entering India will need certificate of having tested negative from COVID-19 from the designated laboratories authorized by Health Authority of these countries. This is enforcement since 0000 hrs. of March 10, 2020 and is a temporary measure till cases ...

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39th GST Council Recommendations on changes in Law & Procedures

The 39th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 14th March 2020. Many long awaited issues are discussed and useful clarifications are recommended by Council. The GST Council has made the following recommendations on Law & Procedures changes. Press release iss...

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Proposed Amendments in Finance Bill, 2020 applicable on Charitable Organisations

Article explains Proposed Amendments in Finance Bill, 2020 applicable on Charitable Organisations and includes Cases Applicable On  Organisations Registered Under Section 12A As Well As Under Section 10(23C) Of Income Tax Act,1961 and Cases Applicable Only On Organisations Registered Under Section 12A. Cases Applicable On  Organisations...

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Disallowance of ITC by invoking Section 16(4) is bad in law

The sole objectives of bringing the GST law were to avoid the cascading effect and to have seamless flow of credit. It wanted to bring all the taxpayers into one system and to reduce error digitalization of the whole process. GST being e System filing, assessment system but a new born baby, everyone including assessee, […]...

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A Dream of 5 Trillion Dollar Economy, Role of MSME 

A Dream of 5 Trillion Dollar Economy, Role of MSME (Particularly Micro & Small Scale Enterprises) The Micro, Small and Medium Enterprises (MSMEs) contribute about 7-8 per cent of India’s GDP, 45 per cent of the manufacturing output and 40 per cent of the exports. They are recognised as the engine of growth for the […]...

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Business expense allowable against remuneration from partnership firm

Aman Tandon Vs ACIT (ITAT Delhi)

In the given case, the first issue raised by the assessee is relates to the disallowance of business expenses from the remuneration earned by the assessee from the partnership firm assessed as business income u/s. 28 (v) of the IT Act, 1961....

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Trust cannot claim Section 24(a) standard deduction against rental income

Improvement Trust Fatehabad Vs ITO (Exemptions) (ITAT Delhi)

ITAT do not find any merit in this ground of appeal of the assessee. Accordingly we hold that assessee trust is not eligible for standard deduction at the rate of 30% u/s 24 (a) of the act, out of the rental income chargeable to tax in the hands of the assessee....

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Assessment proceedings cannot be conducted against HUF after partition

Shri S. Krishnappa (HUF) Vs DCIT (ITAT Bangalore)

The issue raised by the assessee that the HUF was not in existence when the assessment proceedings have been conducted and the Assessment Order has been passed on HUF and therefore, the entire proceedings are rendered null and void and it should be held that the Assessment Order is bad in law on the facts and circumstances of the present ...

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Section 148 notice can be challenged before HC only after following procedure

S.M. Sarveswaran (HUF) Vs ITO (Madras High Court)

The writ petition is not maintainable challenging the notice issued under Section 148 of the Income Tax Act. The Hon'ble Supreme court in GKN Drive Shafts' case reported in 259 ITR 19 (SC), clarified the procedure to be followed, when notice is issued under Section 148. Therefore, the petitioner has to follow such procedure including by a...

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IT Support Services to Indian Entities by Foreign company cannot be taxed in India

Faurecia Systems D'echappement Vs ACIT (ITAT Pune)

The issue raised by the assessee challenging the action of AO in holding the income from providing IT support services as taxable for fees for technical services....

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Step By Step Guidance For Incorporating Company In New Regime i.e. Spice+

The Ministry of Corporate Affairs (MCA) under the directions of Ms. Nirmala Sitharaman, the Finance Minister has emerged with another step towards EASE OF DOING BUSINESS (EODB) and launched a new Form i.e SPICE+ for incorporating a New Company. Spice+ and the allied Forms have been introduced by Ministry of Corporate Affairs (MCA) as on [...

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No Section 54 Exemption denial for Purchase of new property in the name of son

Bhagwan Swroop Pathak Vs ITO (ITAT Delhi)

The issue under consideration is whether the exemption u/s 54 can be denied only with the reason that the new property has been purchased in the name of son and not in the name of that assessee....

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No Authority under Law to Levy Section 234E Penalty prior to 01.06.2015

Ajvin Infotech Pvt Ltd Vs DCIT (ITAT Delhi)

Therefore, according to the Finance Act, 2015, prior to 01.06.2015, your good self had no authority to levy fee, if any, under Section 234E of the Act and thus levy of fee under Section 234E of the Act while processing the statement is beyond the scope of Section 200A of the Act....

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Section 11(2) exemption cannot be denied for mere non submission of Form 10 electronically

Parle Hindu Devalaya Mandal Vs DCIT (ITAT Mumbai)

Parle Hindu Devalaya Mandal Vs DCIT (ITAT Mumbai) The dispute in the present appeal is confined to denial of assessee’s claim of exemption under section 11(2) of the Income Tax Act, 1961. The assessee is a charitable trust and has been granted registration under section 12AA of the Act. For the assessment year under dispute, […]...

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No section 69 addition in absence of evidence to prove that payment made beyond sale agreement

Rajendra Kumar Vs DCIT (ITAT Delhi)

Since there was no material available before AO that assessee had paid anything more than what was mentioned in the sale deed, therefore, no addition was warranted in the instant case by invoking the provisions of section 69. ...

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Section 41 addition cannot be made on basis of unsigned balance sheets

Rajshree Builder & Promoters Pvt. Ltd. Vs ITO (ITAT Delhi)

Addition by AO under section 41(1) as liability of ‘Trade Payables’ written off was not justified as the balance-sheets filed by assessee were neither signed by the Auditor nor by the Director and, therefore, the same were not reliable and assessee had failed to produce any confirmation to the effect that the assessee received payment...

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Decisions Taken In 39th GST Council Meeting

Article summarises Decisions Taken In 39th Meeting of GST Council on 14th March 2020. ANNUAL RETURN Relaxation of MSMEs from furnishing of Reconciliation Statement in FORM GSTR 9C for the F.Y. 2018-2019, for  taxpayers having aggregate turnover > Rs.5 crores. Due date for filling Annual Return and the Reconciliation Statement for the ...

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Direct Tax Vivad se Vishwas Scheme 2020- Detailed Analysis

Disputed tax in relation to an assessment year or financial year, as the case may be, means the income-tax, including surcharge and cess (hereafter in this clause referred to as the amount of tax) payable by the appellant under the provisions of the Income-tax Act, 1961, as computed under different circumstances...

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Gujarat HC directs Precautionary Measures against Pandemic of Corona Virus

SUO MOTU Vs State of Gujarat through Chief Secretary, Gandhinagar (Gujarat High Court)

SUO MOTU Vs State of Gujarat through Chief Secretary, Gandhinagar (Gujarat High Court) In the wake of the Pandemic of Corona Virus (COVID19), let suo motu Public Interest Litigation be registered giving title of Precautionary Measures In The Wake Of The Pandemic of Corona Virus (COVID-19). Let the following be impleaded as party-responden...

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HC allows Filing of GSTR 9 & GSTR 9C without late fees & penalty until further order

All India Federation of Tax Practitioners Vs Union of India (Andhra Pradesh High Court)

All India Federation of Tax Practitioners Vs Union of India (Andhra Pradesh High Court) Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction particularly in the nature of Writ of [&he...

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Customs Electronic Sealing implementation deferred till 30.04.2020

Circular No. 16/2020-Customs (16/03/2020)

CBIC has decided to defer the implementation of Circular-10/2020-Customs till 30th April, 2020 related to Electronic Sealing-Deposit in and removal of goods from Customs Bonded Warehouses.  The new date of implementation of the said Circular shall be 01st  May, 2020. Circular – 16/2020-Customs F. No. 484/03/2015-LC (Vol. II)  Gov...

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Consultation Paper on Amendment to SEBI (Delisting of Equity Shares) Regulations, 2009 for Schemes of Arrangement

The objective of Consultation Paper on Amendment to SEBI (Delisting of Equity Shares) Regulations, 2009 for Schemes of Arrangement is to seek comments / views from the public on proposal relating to a scheme of arrangement between a listed holding company and its listed subsidiary wherein the listed subsidiary is desirous of getting deli...

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39th GST council meeting- Key Recommendations

The 39th GST Council meeting held on 14th March 2020 took decisions on various important issues and came up with following stress busting recommendations: INTEREST 1. Interest on delay in payment of GST shall be collected on Net Cash payment only w.e.f 01.07.2017; REVOCATION OF CANCELLATION 2. One time measure for Revocation of cancellat...

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MahaRERA- Rescheduling of hearing due to Coronavirus epidemic

No. MahaRERA/ Adm. /232/2020 (16/03/2020)

The Hearing of all cases before MahaRERA & Adjudicating Officers shall be adjourned till 31st March, 2020. The cases which are scheduled from 16th March 2020 till 31st March 2020 are being rescheduled due to pandemic of Coronavirus except the very urgent matters....

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Transfer of land and its development rights under GST

A piece of land, carry various rights with it. An owner of a land has right to possess, right to easement, right to sale, right to rent, right to develop, right to sub-let, right to occupy and many. Right to develop a land if called ‘Developmental Rights’, in which owner of a land authorises a […]...

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Certain Relaxations Needed to Make More Vishwas In Vivad Se Vishwas Scheme

How much Vivad would be closed and how much Vishwas the Vivad se Vishwas scheme will be able to achieve that in coming months would be in front of all of us,but this scheme has proved the true integrity that we professionals have. It is the professionals who foregoing their professional opportunities and are educating […]...

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Implementation of UCC data for Disposal Process of Longstanding Containers

Public Notice No. 31/2020-JNCH (16/03/2020)

It is made mandatory for all the CFS’s to fill the Checklist as per Checklist II attached hitherto, before Out of Charge for the Successful Bid in Auction (Under Section 48 of Customs Act, 1962) and the Disposal officer should ensure it....

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Australian Dollar Rate for Customs with effect from 17.03.2020

Notification No. 25/2020-Customs (N.T.) (16/03/2020)

Central Board of Indirect Taxes notifies Rate of exchange of one unit of Australian Dollar equivalent to Indian rupees with effect from 17th March, 2020 vide Notification No. 25/2020-Customs (N.T.) dated the 16th March, 2020. GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ****...

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COVID-19- Operational and Business Continuity Measures

RBI/2019-20/172 DoS.CO.PPG.BC.01/11.01.005/2019-20 (16/03/2020)

While the Government of India, in co-ordination with the state machineries, is already taking steps for preventing and controlling the local transmission of disease, further steps, including the indicative list presented below, are required to be taken by the respective banks/financial institutions as a part of their existing operational ...

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Section Sec. 2(22)(e) not applicable to reimbursement of expenditure

Rajesh Rajkumar Nagpal Vs ACIT (ITAT Mumbai)

Rajesh Rajkumar Nagpal Vs ACIT (ITAT Mumbai) Provisions of 2(22)(e) were not applicable since the payment was mere reimbursement of expenditure. Ld. CIT(A) proceeded on wrong footing that the same would be personal expenditure and hence, disallowable completely overlooking the fact that the said expenditure has never been claimed by the a...

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New Section 80JJAA Deduction for Salaries paid to New Employees

The Government of India, to promote employment generation activities, had introduced Section 80JJAA under Chp. VIA of Income Tax Act, 1961 which allows for deduction in respect of employment of new employees. Section 80JJAA enables an employer to enjoy tax sops or you can say – cashback for payment of salaries to new employees employed ...

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Issue Polite reminders for filing of GSTR-3B- CBIC Chairman

D.O.No.06/CH(IC)/2020 (16/03/2020)

M. Ajit Kumar, Chairman Of  CBIC has said that With due dates for filing of GSTR-3B fast approaching, I am sure that those of you on the GST side, would be in touch with the tax payers. Polite reminders would help their timely contribution to nation building by enabling the government to achieve its fiscal […]...

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Draft Guidance Note on Companies (Auditor’s Report) Order, 2020

The Ministry of Corporate Affairs has issued the Companies (Auditor’s Report) Order, 2020 (CARO 2020) on 25th February 2020 which is applicable for audits of financial statements for the financial years beginning on or after 1st April, 2019. We hereby inform you that the Auditing and Assurance Standards Board of ICAI is in the process [...

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39th GST Council Meeting: E-invoicing, GSTR 9 & 9C, New Return

Recently, The GST Council in its 39th GST Council Meeting took the following decisions relating to changes in GST rates on supply of goods and services, law & procedures. Law & Procedure: 1. Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended […]...

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Set off and carry forward of Capital Gain under Income Tax

Amidst the current economic turmoil going on globally on account of the disruption in the supply chain and economic stillness for a period, there are certain inconspicuous benefits in terms of capital gains tax under the income tax provisions which if planned well may benefit to an extent depending on the income profile and the tax bracke...

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Govt exempts foreign airlines from furnishing Form GSTR-9C

Notification No. 09/2020– Central Tax [G.S.R. 179 (E)] (16/03/2020)

Govt exempts foreign airlines from furnishing reconciliation Statement in Form GSTR-9C if they  have complied with the sub-rule (2) of rule 4 of the Companies (Registration of Foreign Companies) Rules, 2014 vide Notification No. 09/2020– Central Tax dated-16th March, 2020. Exemption from furnishing GSTR-9C:– The said persons shal...

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GST impact on sale of old and used motor vehicle

Brief Background GST on sale of old /used vehicles were taxed at the same rate as applicable on new vehicles which was 28% + applicable cess levied vide notification No 1/2017-Central Tax (Rate) dated 28.06.2017 and due to this, effective tax on sale of old vehicles was upto 43%. This higher rate of tax was […]...

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Income Tax on Land or Building or both in certain cases

Taxation of land or building or both under income tax act, 1961 certain issues- 1) Normally, there are two types of transaction that prevailed in the transfer of land or building or both. One is transfer made for some consideration and other is without consideration which is generally termed as gift of assets. 2) Firstly, […]...

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Summary of 39th GST Council Meeting Decisions

Summary of 39th GST Council Meeting Decisions taken on 14th March 2020 1. Related to Interest Liability: – Interest to be charged on Net Cash Liability (retrospective amendment from 01.07.2017) Earlier the department had issued Lacs of Notices involving the Penal Interest running in thousands of crores demanding Interest on Gross Am...

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Are we ready to ‘Operate from Home’ in the wake of Coronavirus?

With the wake of Coronavirus, there has been a huge disruption in daily operations. From schools to workplaces, malls to weekend getaways, things have been impacted. This article is an attempt to address the operational challenges for business owners, board of directors, employers, IT Departments, auditors, employees, parents and millenni...

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Annual Compliances for Private Limited Company- Checklist

Article contains Checklist for  Annual Compliances of Private Limited Company which includes First Board Meeting, Subsequent Board Meeting, First Annual General Meeting, Subsequent Annual General Meeting, Disclosures of Interest by Directors/Declaration, Appointment of First Auditor, Appointment of Subsequent Auditor, Filing of form ADT-...

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Vivas se Vishwas Scheme – Perspective of CBDT & released FAQ

The Finance Bill 2020, presented the Vivaad se Vishwas scheme [VVS]. The government introduced this scheme because they are positive to receive Rs. 9 lacs crore’s sum, which is stuck into tax litigations. As per a recent conference of date, 6th March on ” VVS” between “The CBDT” officials and the multiple ind...

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Levy of interest under GST – complexities involved

Since its inception, GST Law has been a roller coaster ride for Government Departments, Practicing Professionals and various Tax Payers. GST Law has been amended number of times and in some cases with retrospective effect. Notifications and Circular are issued by the GST Department on almost daily basis for amendment and clarificatory pur...

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Settlement Scheme For Late Filing by Limited Liability Partnership (LLPs)

Central Government had decided to gift a Scheme LLP Settlement Scheme, 2020 to business owners who are operating the business in the form of Limited Liability Partnership structure. LLP Settlement Scheme, 2020 will remain open from 16th March, 2020 to 13thJune , 2020....

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Limitation period under IBC will not be extended by part payment: NCLAT

NCLAT in the recent judgment Bimalkumar Manubhai Savalia Vs. Bank of India held that part payment by guarantor will not extend limitation period of 3 Years under IBC...

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Direct Tax Vivad se Vishwas Bill, 2020- Brief Study

1. Direct Tax Vivad se Vishwas Scheme is Applicable for all pending income tax, TDS appeals pending before CIT , ITAT, HC, SC and also for orders passed for which time limit for further appeal is not expired and appeals which are not admitted by courts as on 31.01.2020. 2. Direct Tax Vivad se Vishwas […]...

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Top 13 Takeaways of 39th GST Council Meeting

Amid huge expectations from GST council from 39th meeting held on 14.03.2020, GST Council has recommended various changes in GST law to facilitate trade and industry at large. We present to you top 13 takeways from GST council meeting at New Delhi: 1. Interest on delayed payment to be calculated on net GST liability Council […]...

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Foreign Company in India and Registration

As India is developing country and that too one of the fastest developing country in world, it is normal that other countries wanted to invest in India. India is actually a hub doing business as the cost of production in India is low which ultimately increases the Demand curve of a product or service. With […]...

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5 General terminology used in Income Tax Assessment

Explaining the concepts of  following topics :- 1) Annulment of Assessment 2) Fresh Assessment/cancel set aside the order/remanding back to the Assessing officer 3) Appeals effect/ Revision Effects 4) Directions of Higher authorities. Let’s discuss one by one- 1) Annulment of Assessment To Annul means Simply to declare the Assessme...

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Procedure for Appointment of Management Director (Where MD is aged 70 Years or more)

What is Managing Director under Companies Act, 2013? Section 2(54) of the Companies Act, 2013 provides that ‘managing director’ means a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial...

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December 2020