"16 April 2020" Archive

Taxability of Transfer of Developmen Right (TDR) Under GST

1. Transfer of Development Rights means the owner of land allows promoter ( builder ) to develop the land and construct apartments in his land. This is different from Transferable Development Rights. In case of Transferable Development Rights, Government (local authority) gives an instrument to land owner (for surrender of his right) to e...

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GST Year Ending Tasks

As all of us are aware that the nation is under lockdown due to Covid 19. The financial year ending tasks are still not done. It is advisable to to do the following tasks and keep the suitable documentary evidences ready as soon as the lockdown is lifted and the businesses get back to their […]...

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No TDS on export freight to shipping agent of non-resident

PCIT Vs  Summit India Water Treatment (Gujarat High Court)

In the given case, the respondent assessee has filed its return of income for the assessment year 2013-­14. The Principal Commissioner of Income Tax invoked power of revision under Section 263 of the Act, 1961 on the ground that without deducting TDS on the export freight, the assessee company had paid export freight to Inter Ocean Shipp...

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Denial of copies of seized documents was violation of natural justice: HC

Mozart Global Furniture Vs Sate Tax Officer (Kerala High Court)

The prayer in the Writ Petition is for a direction to the 1st respondent to supply copies of the documents relied upon by the 1st respondent while issuing the notices, and thereafter, to afford the petitioners an opportunity to submit their objections with regard to the reliance placed on the same, before proceedings to adjudicate the mat...

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Cenvat Credit cannot be denied on assumptions of fraudulent intention

Commissioner of Central Excise Vs Welspun Corporation Ltd. (Punjab and Haryana HC)

More-so, when clearance and supply of dutiable goods is accepted and there is no denial to the fact that a purchase order existed for supply of dutiable goods, on mere assumptions the intention cannot be determined or it can be concluded that the conduct was fraudulent....

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Demurrages for delay in project execution- HC remanded matter back to ITAT

The Estate Vs ACIT (Kearnataka High Court)

The Estate Vs ACIT (Karnataka High Court) In the given case the appellant is a partnership firm which is engaged in the business of real estate development, construction and sale of flats under the name and style of ‘The Estate’. The appellant filed its original return of income declaring its total income of Rs. 95,04,431/- […]...

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No classification as NPA for failure to pay Loan installment due to COVID-19

Anant Raj Ltd. Vs Yes Bank Ltd. (Delhi High Court)

Learned counsel for the respondent contends that RBI guidelines and package are not applicable to the case of the petitioner, in as much as, the petitioner was already in default as on 01.03.2020 and the package is applicable only to those instalments which fall due on 01.03.2020 and also only to those borrowers who were properly servicin...

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Extension of due date of SEBI compliance under Takeovers Regulations

Extension of Due Date of Compliance of Disclosures Under Regulation 30(1), 30(2) of SEBI (Substantial Acquisition of Shares And Takeovers) Regulations, 2011 SEBI vide its Circular No.: SEBI/HO/CFD/DCR1/CIR/P/2020/49 dated 27th March, 2020 has granted Relaxation   from   compliance   with   certain   provisions   of   the  ...

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Income Tax Provisions relating to Religious Trusts

The Income Tax Act makes a distinction between Trusts for charitable purposes and those for religious purposes, though both are entitled to exemption under section 11 of the Act. The creation of religious charitable trusts is governed by the personal laws of the religion. The administration of these religious trusts can either be left to ...

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Further clarification on extended GST return filing due dates

Further clarification on extended date as per Circular No.136/06/2020-GST, dated 03.04.2020 Circular No.136/06/2020-GST, dated 03.04.2020 had been issued to clarify doubts regarding relief measures taken by the Government for facilitating taxpayers in meeting the compliance requirements under various provisions of the Central Goods and Se...

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Effects of Financial Emergency on Economy – Covid 19

The Indian Constitution has given power to President of India to impose emergency in certain situations. The constitution also provided the situations in which emergency can be imposed. The Chapter XVIII (Article 360) of constitution deals with emergency situations and provides exceptional rights to central government/president to invoke ...

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Intellectual Property Rights vis-à-vis COVID-19

What does the economy need? For an economy to grow and its consumer society to prosper, intellectual property serves as an underpinning factor for the country. To fight the present Pandemic, it is even more quintessential as it is a fundamental instrument to help nations fight together. Globally, the pharmaceutical and biotechnological co...

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Section 24 of General Clause Act, 1897- Applicable even when Repeal is by Implication: SC

M/s. Fibre Boards (P) Ltd. Bangalore Vs. CIT (Supreme Court), Civil Appeal Nos. 5525-5526 of 2005,  Dated- 11th August 2015 BACKGROUND Prior to 01.04.1988 Section 280ZA of the Income Tax Act, 1961 (‘Act’) provided that any company owning an industrial undertaking situated in an urban area, is entitled for a tax credit certificate wit...

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Checklist for Appointment of Foreign Director

Following are the Steps to be followed for Appointment: 1. DSC (Digital Signature Certificate) of Appointing person to be obtained following documents required for the same: Proof of Identity: Copy of Passport, Passport issued by the country of residence. Proof of Address: a. latest Mobile Bill or b. Bank statement or c. Electricity Bill ...

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Payment to Director’s – GST Implications

1. William Shakespeare in Romeo and Juliet wrote in the famous balcony scene “what is in the name? That which we call a rose by any other name would smell as sweet.” The said view is equally applicable when it comes to analyzing the GST implications on various payments made to the directors. The word […]...

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Section 10(10D) Exemption towards amount received under a Life Insurance Policy

As we know, various benefits are attached to the life insurance policy, and tax benefit is one such key benefit. The tax benefit is available in terms of income tax deduction and income tax exemption. Provisions of section 80C offer the income tax deduction, whereas, provisions of section 10(10D) provides the income tax exemption. Under [...

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SEBI relaxes time lines for compliance by trading/clearing members

Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/61  (16/04/2020)

It has been decided to extend the due date for the following regulatory filings and compliance requirements by their trading members / clearing members:...

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GST on Director Remuneration in view of recent AAR Ruling

Analysis of applicability of GST on Director Remuneration in view of recent AAR Ruling in the case of Clay Craft India Pvt Ltd At the outset, I would like to draw attention to serial no. 6 of Notification No. 13/2017 ‐ Central Tax (R) dated 28.06.2017, services supplied by a Director of a company or […]...

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Due Diligence Reports For Banks

What is Due Diligence: Due diligence is a process of research and analysis that is initiated before an acquisition, investment, business partnership or bank loan, in order to determine the value of the subject of the due diligence or whether there are any major issues involved. Such findings are then summarized in a report which […...

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SEBI Further relaxes time periods due to Lockdown Extension

Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 (16/04/2020)

SEBI vide Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated 16th April, 2020, has provided Relaxation in time period for certain activities carried out by depository participants, RTAs / issuers, KRAs, stock brokers. Text of the Circular is as follows:- Securities and Exchange Board of India Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 D...

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Executive Summary of Draft Valuers Bill, 2020

Executive Summary of Draft Valuers Bill, 2020- Report of the Committee of Experts to Examine the Need for an Institutional Framework for Regulation and Development of Valuation Professional- VOLUME I - April, 2020...

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Covid-19: Financial Assistance by SIDBI to MSME’s

Financials Assistance by SIDBI Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing, and development of Micro, Small Enterprises and Medium Enterprises(MSMEs), has launched SAFE (SIDBI Assistance to Facilitate Emergency response against Corona Virus) scheme. It is a fi...

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Registration of Charitable Trust u/s 12AA which have not undertaken any activity prior to application for registration

The supreme court was of the view that section 12AA of Income Tax Act, 1961 mandates that the commissioner of Income tax or the principal commissioner, as the case may has to satisfy his/her conscious that the activities under taken by the Trust are genuine and are eligible charitable activities....

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Cash expenses not amenable for cross verification; ITAT disallows 5% expense

Kempsz Trading Pvt. Ltd. Vs DCIT (ITAT Bangalore)

The assessee is engaged in the business of quarrying, processing/selling exporting of a granite block and slabs....

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A New Light on Reassessment Under Income Tax Act, 1961

New Delhi Television Ltd. Vs DCIT (Supreme Court of India)

In our view this is not a fair or proper procedure. If not in the first notice, at least at the time of furnishing the reasons the assessee should have been informed that the revenue relied upon the second proviso. The assessee must be put to notice of all the provisions on which the revenue relies upon....

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Medical Oxygen IP and Nitrous Oxide IP are medicines: SC

State of Andhra Pradesh Vs Linde India Ltd. (Supreme Court)

There is no doubt that Medical Oxygen IP and Nitrous Oxide IP are medicines used for or in the diagnosis, treatment, mitigation or prevention of any disease or disorder in human beings falling within the ambit of Section 3(b)(i) of the 1940 Act. SC hold that Medical Oxygen IP and Nitrous Oxide IP fall within the ambit of Section 3(b)(i) o...

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Best Judgment Assessment cannot be passed on the ground of debatable issue

Audco India Limited Vs Commercial Tax Officer (Madras High Court)

On debatable issues, even if the addition in taxable turnover is made by the Assessing Officer, it does not amount to Best Judgment Assessment, which can be passed, only if the regular books of accounts and the return filed by the Assessee are rejected for given reasons...

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Conundrum of Taxability of Director’s remuneration under GST

The taxability of director’s remuneration under GST has caused a furore throughout the country due to a couple of Advance Ruling judgements in case of M/s Alcon Consulting Engineering Pvt Ltd by Karnataka Advance Ruling Authority and the more recent M/s Clay Craft India Pvt Ltd by Rajasthan Authority for Advance Ruling....

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Corona, Lockdown and Economy

Corona, lock down and economy along with the compulsion and strength of the Indian people & Government Corona ! An epidemic! Who thought a few months before today that life would become something like this, everything would stop and we would all be living life under a bond, maybe no one else can think like […]...

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Impact of COVID 19 (Coronavirus) on Indian Economy

REPORT OF WORLD BANK ON ECONOMIC CRISIS: The World Bank said the Coronavirus flare-up has seriously disturbed the Indian economy, amplifying prior dangers to its viewpoint. In its South Asia Economic Update: Impact of COVID-19,  the World Bank assessed the Indian economy to decelerate to 5 per cent in 2020 and anticipated a sharp dev...

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COVID 19 Contribution Qualified as CSR Expenditure

The FAQ explains that commitment made towards the PM Care funds qualify as CSR, reserves given to Chief Minister’s Relief Fund doesn’t qualify as CSR. The Ministry of Corporate Affairs has given a FAQ on what qualifies as a contribution towards CSR exercises of the corporate in their battle against COVID-19. The FAQ ex...

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GST Due dates for the period April to June’20

The World economy is extended to take a major step back with the advent of Coronavirus outbreak. The Indian Government has been taking practice steps to address the issues concerning the citizens and businesses.  On 24th March 2020, the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman announced important relief meas...

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CBIC notifies Rate of Exchange of Foreign Currencies wef 17.04.2020

Notification No. 39/2020-Customs (N.T.) (16/04/2020)

CBIC notifies Rate of Exchange of Foreign Currencies against India Rupees wef 17.04.2020 vide Notification No. 39/2020-Customs (N.T.), Dated: 16th April, 2020. GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No. 39/2020-Customs (N.T.) New Delhi, dated the 16t...

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50 FAQs on CFSS 2020 & LLP Modified Settlement Scheme 2020

50 FAQs issued by MCA on Companies Fresh Start Scheme (CFSS), 2020 and LLP Modified Settlement Scheme, 2020 Thus, Ministry has launched a scheme known as ‘Companies Fresh Start Scheme, 2020‘ and ‘LLP Modified Settlement Scheme, 2020′ condoning the delaying filing the above mentioned documents with Registrar, it rel...

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Composition Levy Under Goods and Services Tax Laws

Provisions relating to Composition Scheme under GST have been provided under Chapter III of CGST Act which provides for provisions in so far as those relate to levy and collection of tax under GST laws. ...

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GST Return Filing: A Herculean Job for Start-ups During Nationwide Lockdown

Due to the lockdown and COVID-19 effect, work from home is being followed in all companies and businesses. But the new norm of working from home is bringing a few challenges for start-ups and even for bigger corporations too. One of the challenges faced by businesses is that employees who are responsible for filing tax […]...

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Refund of Unutilized ITC on Capital Goods under Export of Goods or Services without Payment of Tax

Refund of Unutilized ITC On Capital Goods Under Export of Goods or Services Without Payment of Tax In order to understand that whether refund of unutilized ITC on Capital Goods is available or not under the case of export of goods or services (Zero-Rated Supplies) without payment of taxes, following provisions should be taken under [&hell...

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Acceptance, Rejection and Updating of E-Way Bill

Major Concepts in E-Way Bill Concepts of Acceptance , Rejection and Updating of E-Way Bill E Way Bill introduces a sense of urgency in the process of movement and promptly recording the transactions. (A) Acceptance & Rejection Rule 138(12) of CGST Rules 2017 as updated 9th October 2019 talks that Where the person to whom […]...

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Section 80CCD Deduction in current and New Tax Regime

Deduction u/s 80CCD in Current and New Tax Regime and Maximum Exemption Limit for Employer’s Contribution A new regime of Income Tax for individuals and HUFs was announced in Budget 2020 which is applicable from A.Y. 2021-22 (relevant to F.Y. 2020-21). The concessional slab rates were introduced by insertion of new section 115BAC. Howev...

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Import of additional quota of Urad for fiscal year 2019-20

Trade Notice No. 04/2020-2021 (16/04/2020)

Inter – Ministerial Committee to review the prices of Agricultural commodities to extend the deadline for import of additional 2.5 Lakh MT of Urad to 15th May, 2020 i..e imports should arrive at Indian Ports before 15th May, 2020....

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Nedical insurance for workers to be made mandatory – MHA

Ref: IRDAI/HLT/CIR/MISC/093/04/2020 (16/04/2020)

ii. As per clause no. 5 of Annexure – II of the said SOP for social distancing for offices, workplace, factories and establishments, medical insurance for the workers to be made mandatory....

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MHA exempt certain activities from Lockdown Restrictions to fight COVID-19

No. 40-3/2020-DM-I(A) (16/04/2020)

MHA issues order to exempt certain activities regarding Minor Forest Produce, Plantations, NBFCs, Cooperative Credit Societies and Construction in Rural Areas from Lockdown Restrictions to fight COVID-19. Ministry of Home Affairs (MHA) has issued an order to exempt certain activities under the consolidated revised guidelines to all Minist...

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DGFT notifies Import quantity of peas for fiscal year 2020-21

Notification No. S.O. 1260(E)-DGFT (16/04/2020)

DGFT  notifies the quantity of each category of peas, for fiscal year 2020-2021 vide notification no. S.O. 1260(E) dated 16th April, 2020. MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) NOTIFICATION New Delhi, the 16th April, 2020 S.O. 1260(E).—In  exercise  of  powers  conferred  by  section  3  of  the  Foreign...

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India’s foreign trade for March 2020 shows negative growth

India’s overall exports (Merchandise and Services combined) in April-March 2019-20* are estimated to be USD 528.45 billion, exhibiting a negative growth of (-) 1.36 per cent over the same period last year. Overall imports in April-March 2019-20* are estimated to be USD 598.61billion, exhibiting a negative growth of (-) 6.33 per cent ove...

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PML (Maintenance of Records) Third Amendment Rules, 2020

Notification No. G.S.R. 254(E). (16/04/2020)

1. (1) These rules may be called the Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2020. (2) They shall come into force on the date of their publication in the Official Gazette....

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Statewise Income Tax collection Target for FY 2020-21 allocated by CBDT

F.No. 380102/2020-IT(B) (16/04/2020)

The Budget target for each cadre-controlling Pr. CCIT has been fixed keeping in view the revenue potential of the Region, which is based on the weighted average growth rate of net collections of last three years, giving highest weight to the immediately preceding year...

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MCA Invites Public Comments on Draft Valuers Bill, 2020

MCA had constituted a Committee of Experts (CoE) under Chair personship of Shri M. S. Sahoo, Chairperson, IBBI on 30th August 2019 to examine need for an institutional framework for regulation and development of Valuation Profession....

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Tax Treatment of Trade/Cash Discounts under GST Regime

Offering trade and cash discounts is a built-in promotional scheme of almost every entity and Discounts and price reductions during negotiations after supply of goods and services is very common in business. Business generally offer trade discounts to increase sales, while cash discounts are given to recover payments speedily....

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CORONA की तोड़ो कड़ी

आज की तू सोच ले, कल की चिंता छोड़ दे, वर्क  फ्रॉम  होम  कर  लो  सभी, कोरोना  की  तोड़ो  कड़ी I वर्क  फ्रॉम  होम  कर  लो  सभी, कोरोना  की  तोड...

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How to choose between new & old Income tax regime for FY 2020-21

The Union budget 2020 has introduced new income tax slabs for Individual taxpayers with reduced rates (and increased twists). We will discuss about the following in this article: 1. What’s there in the new tax regime? 2. What are the conditions to avail it and who can opt it? 3. Is it better to opt […]...

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