"18 April 2020" Archive

Income Tax Amendments/New Provisions of Finance Act 2020

1. All Individuals & HUF can choose to pay tax as per new slab rates without availing exemptions & deductions Option has been given to all individuals/HUF to pay tax as per new slab rates (Optional tax regime) on total income computed without claiming any deductions/exemptions – As per Sec 115BAC inserted by Finance Act, [&helli...

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Posted Under: Income Tax | ,

Theory of telescoping in determining taxability of undisclosed income

This article deals with the theory of telescoping as applied in the Income-tax Law, the manner of its application and as to how and under what circumstances the benefit of telescoping could be claimed / availed by an assessee. Though the said theory has general applicability across the taxability of a wide range of items, […]...

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Posted Under: Income Tax |

Guidelines related to Charge under Companies Act, 2013

As per Section 2(16) of the Companies Act, 2013, ‘Charge is defined as an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage‘. Concept of charge is explained under Chapter VI of the Companies Act, 2013 ranging from Section […]...

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Posted Under: Income Tax |

Exemption for amount received from Statutory & Recognized PF

Exemption for amount received from Statutory and Recognized Provident Fund Provisions of section 10(11) of the Income Tax Act exempts any payment received from the ‘Statutory Provident Fund’, whereas, provisions of section 10(12) of the Income Tax Act exempts the accumulated balance payable to an employee participating in the ‘Recog...

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Posted Under: Income Tax |

Unabsorbed Depreciation & MAT Credit under Vivad Se Vishwas Scheme

The taxpayers will therefore have to weigh their options carefully before opting for settling their disputes pertaining to reduction in loss/unabsorbed depreciation or MAT credit. Every permutation and combination ought to be examined to determine whether it is advisable to avail the scheme or litigate the matter....

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Posted Under: Income Tax |

Know your supplier (KYS) under GST- A detailed analysis

Compliance rating system is one of the new ways of tax administration and as such “KYS” enables every registered person (recipient) to have information about the supplier, in term of compliance, with whom they intend to deal in. Introduction: The Government previously wanted to implement the compliance rating system that gives a ratin...

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Posted Under: Income Tax |

Tax on Sale of Property by Non Resident Indian (NRI)

There is lot of confusion about tax implications for NRIs who want to sell any property in India. Many questions come to the mind of both Buyer & Seller about taxation aspect. Doubts mainly arise related to TDS rates, filing of TDS Return, claiming Tax Refund, Capital Gain calculation, exemption from tax and remittance of […]...

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Posted Under: Income Tax |

Analysis of Section 271AAD introduced by Finance Act 2020

In the past we seen that, the GST department endeavours  several cases whereas fraudulent input tax credit has been availed and claimed. GST department stated that, in all cases bogus invoices are been obtained by the suppliers and fraudulently claim the ITC taken to reduce tax liability. The bogus invoices has been issued by the [&helli...

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Posted Under: Income Tax |

Promoter’s Liability under Reverse Charge Mechanism (RCM)

The Central Government vide Notification No. 07/2019 -CT( RATE) dated 29.03.2019 specified that the promoters are required to pay tax under Reverse Charge Mechanism ( RCM ) in respect of shortfall from the minimum value of goods or services or both required to be purchased for construction of project. Minimum value for the purpose is [&he...

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Posted Under: Income Tax |

When GST Composition Scheme is available for Goods & Services Both

The composition scheme is an alternative method of levy of tax designed for small tax payers whose turnover is up to prescribed limit. Small tax payers with an aggregate turnover of Rs 1.5 Cr shall be eligible for composition levy. Advantages of Composition Scheme  The biggest advantage of composition levy is suppliers need not worry [&h...

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Posted Under: Income Tax |

Whether assessee can claim TDS deducted by railways on Mobilization advance?

♦ When an assessee (contractor) is awarded a contract by railways/state government (contractee) for the construction or other related services, the contractor is eligible to receive mobilization/secured advance. The Mobilization advance is primarily received after furnishing of Bank Guarantees in favour of the Payee Customer for the exe...

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Posted Under: Income Tax |

Appeal Process Under GST Act

Article explains Appeal process under GST Act, How to avoid Appeal under GST, Facts about Appeals and Revisions under GST Act and ways to interpret different section of the act along with facts of your case to get the due justice at low cost and efforts and howto  avoid the appeals under GST act. Introduction; […]...

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Posted Under: Income Tax |

Payment of wages during lock-down to workmen- Legal Analysis

he Indian Government would need to come up with a scheme to subsidies employers towards the wages paid during the lockdown. The scheme can be linked to profits earned by the industrial establishment and the wage bill for a month. In the absence of such a scheme, private employer’s especially small and medium industries will be put throu...

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Posted Under: Income Tax |

Amendment in Rule 89(4)(C) & 96B of GST Rules

According to the provisions of Rule 89(4) sub-rule (C), after considering the Notification No. 16/2020 – Central Tax dated 23rd March, 2020, the definition of calculating turnover has been changed. Before 23rd March 2020, For calculating the amount of the refund of an Input Tax Credit, turnover was considered as per the amount mentioned...

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Posted Under: Income Tax |

Inspection, Search & Seizure under GST

Goods and Service Tax (GST) is incorporated with an intention to provide a simple and streamlined tax flow structure. The intention itself provides a legal backing to section 67 to 72 of the Act that allows the enforcement machinery i.e. tax officers to inspect, search and seize records for proper ascertainment of payment of tax […...

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Posted Under: Income Tax |

GST return of Lockdown (Covid-19) period

Due to COVID-19 pandemic and challenges faced by taxpayers, Government has extended dates for GST filings. These are notified in  Notifications 30/2020 to 36/2020 dated 03.04.2020. Circular No 136/06/2020-GST dated 3rd April, 2020 has been issued. The various due dates for normal taxpayers can be easily understood with the help below m...

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Posted Under: Income Tax |

Profession Tax Provisions in Maharashtra with PT Rate Chart

This article gives you basic information and practical aspects of the Maharashtra State Tax on Professions, Traders Callings and Employments Act 1975. This article will help to solve majority of the minor doubts which arise while complying under Maharashtra State Tax on Professions, Traders Callings and Employments Act 1975. The article c...

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Posted Under: Income Tax |

Companies (Auditor’s Report) Order, 2020 (CARO 2020)- Analysis

In order to enhance transparency and reporting, Ministry of Corporate Affairs has issued Companies (Auditor’s Report) Order, 2020 on Tuesday, 25th February, 2020 after consultation with the National Financial Reporting Authority (NFRA) and on the basis of powers conferred under Section 143(11) of Companies Act, 2013. The Companies (Audi...

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Posted Under: Income Tax |

Water Water Everywhere, Not a Drop to Drink: RBI’s Liquidity Infusion Initiatives Announced on 17.4.2020

Water Water Everywhere, Not a Drop to Drink… Well yes, the Indian Banking System’s current liquidity position, amidst the unfortunate COVID-19 outbreak in our Country, compares very well with that of an Ocean which has abundance of water in its kitty, but still this water is not drinkable, and so is of no use to […]...

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Posted Under: Income Tax |

Upcoming NSE Compliance Calendar with COVID 19 Relaxations

Compliance Calendar for relaxations in relation to compliance with various provisions due to COVID-19 pandemic National Stock Exchange (NSE) vide Circular NSE/CML/2020/12  dated 17th April, 2020 has issued and published Compliance Calendar for relaxations in relation to compliance with various provisions due to COVID-19 pandemic to: The ...

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Posted Under: Income Tax |

Equalisation Levy on e-commerce supply of goods/ services by non-residents

Equalisation Levy (‘EL’) on e-commerce supply of goods/ services by non-residents A. Background of Equalisation Levy provisions –Equalisation Levy is a charge in addition to the Income-tax, which was introduced vide Finance Act, 2016. -Under the erstwhile provisions, Indian residents were required to deduct EL at the rate of 6 p...

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Posted Under: Income Tax |

Inspection, Search, Seizure and Arrest under GST Law

Introduction: Taxation is one of the most important sources of government revenue. Our government has to perform various activities for the welfare of the people of India. The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Central and the State. An […]...

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Posted Under: Income Tax |

Food Hygiene and Safety guidelines for Food Businesses during Coronavirus Disease (COVID-19) Pandemic

This document describes the guidelines for employees/food handlers working in food establishments to prevent spread of COVID-19. These practices should be adopted in conjunction with. Schedule 4 requirements....

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Posted Under: Income Tax |

No Dividend Distribution Tax to be paid on Dividend declared pursuant to amalgamation of companies

Torrent Private Limited Vs. CIT (Gujarat High Court)

Whether the dividend declared by the company after the effective date of amalgamation but before the date of sanction by the High Court would cease to be dividend declared by the company?...

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Synopsis of ICAI Valuation Standars, 2018

Recently, since last 2-3 years, the profession of valuer is getting recognition and regulated by Insolvency and Bankruptcy Board of India (IBBI). Before this, the profession of valuers was not regulated by any body. There were no exam, no membership, no valuation standards to be followed, no formal recognition of valuers. But with the adv...

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Posted Under: Income Tax |

Lockdown 2.0 What allowed and what not allowed after April 20 

Lockdown 2.0 – #IndiaFightsCorona ♦ Industrial Establishments Allowed after April 20  Industries in rural areas, SEZs & Export Oriented  Units, industrial estates, industrial townships Manufacturing units of essential goods, IT hardware; Food processing units; Jute industries Coal and mineral production & O&G refiner...

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Posted Under: Income Tax |

RBI announces second set of measures to preserve financial stability

RBI announces second set of measures to preserve financial stability and help put money in the hands of the needy and disadvantaged States and UTs allowed to borrow more to manage COVID-19 Reverse Repo rate reduced from 4.0% to 3.75% Relief provided to NBFCs and Real Estate Sector We will cure and endure, India is […]...

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Posted Under: Income Tax |

CBDT issues I-T refunds worth Rs 5,204 Crore issued in last 10 days

As a relief to MSMEs, I-T refunds worth Rs 5,204 Crore issued in last 10 days: CBDT The Central Board of Direct Taxes (CBDT) today said that Income tax refunds to nearly 8.2 lakh small businesses (proprietors, firms, corporate and trusts) worth Rs 5,204 Crore have been issued since 8th April 2020. These income tax […]...

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Posted Under: Income Tax |

Committed to Help GST Taxpayers in COVID-19 Situations: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) said that it is fully committed to help the GST taxpayers in the present COVID-19 situation. Since 30th March 2020, CBIC has processed 12,923 refund applications involving claims worth Rs 5,575 Crore, while in the last week itself, CBIC has processed 7,873 claims worth Rs 3854 Crore....

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Posted Under: Income Tax |

Show Cause Notices

Does Demand or Coercive Action sustain without a notice and without the personal hearing  Show cause notice means a Court order that requires a party to appear before the court and explain why a certain course of action should not be taken against it. If the party cannot convince the court or fails to appear, that course of […]...

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Posted Under: Income Tax |

Compliance related Relaxations under Income Tax Act, 1961

Ministry of Law & Justice of Government of India, through The Gazette of India, has made available THE TAXATION AND OTHER LAWS (RELAXATION OF CERTAIN PROVISIONS) ORDINANCE, 2020 on 31.03.2020, wherein through ordinance Government of India has given relaxation in various due dates and interest rates under various Acts, including Income...

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Posted Under: Income Tax |

Procedure to obtain Full Fledged Money Changer Licence

Procedure and documentation for obtaining Licence of Full Fledged Money Changer (FFMC) FFMC i.e. Full Fledge Money Changer is a business under which a concern use to change the particular currency of one country into the currency of another country. This is mainly helpful in cases of tourism where the resident individuals when intend to [...

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Posted Under: Income Tax |

Useful strategies for surviving impact of COVID-19 for real estate sector

When working life gets resumed after COVID-19 lockdown, it is highly expected that the pricing and rates of real estate inventory will come down. To cope up with this situation, here are some of my recommendations:...

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Posted Under: Income Tax |

Employees Provident Fund & Miscellaneous Provisions Act 1952- Analysis

Provident fund & miscellaneous provisions act 1952 This article gives you basic information and practical aspects of the Act. This article will help to solve majority of the minor doubts which arise while complying under the Act. Labour Laws of India refers to laws regulating labour in India. The Constitution of India gives us series ...

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Posted Under: Income Tax |

Extension of Project registrations by RERA authorities | State-wise Analysis | COVID-19 Impact

The COVID-19 pandemic has halted industries and businesses throughout the world. The real estate industry which is one of the top contributors to GDP and creators of employment in India is also at a standstill. With the implementation of the RERA Act in 2017, all ongoing and new real estate projects across the country were […]...

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Posted Under: Income Tax |

Amendments in Companies Act 2013 & MCA relaxations- COVID-19

Amendments in the Companies Act, 2013 and MCA relaxations due to outbreak of COVID-19 1) General circular 10/2020 & 15/2020 – Regarding clarification on spending for CSR Funds for   COVID-19 & FAQs thereof : – The Ministry of Corporate Affairs via General circular number 10/2020, clarified that the amount spend on ac...

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Posted Under: Income Tax |

Detailed Analysis of Inspection, Search and Seizure under GST

Every Act in one way or the other provides the authorities the power to physically Search and Seize the belongings of a person if found to be unexplanatory or in variance with the submissions made by him, and such power is undoubtedly present in the GST Act also. In this article we shall be giving […]...

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Posted Under: Income Tax |

No GST on business transfer as a going concern consisting of under construction building

The Authority of Advance Ruling (AAR), Uttrakhand ruled that the transfer of under construction projects under the ‘Business Transfer Project’ is exempted under Goods Service Tax (GST)....

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Posted Under: Income Tax |

Compliance related Relaxations under GST

Ministry of Finance through Central Board of Indirect Taxes and Customs have notified, certain notifications vide number 30/2020 to 36/2020 dated 03rd April,2020 giving relaxation in lieu of upcoming GST Compliances. Same are summarized below for ease of reference: Notification 30/2020-CT: Relaxation to Composition Taxpayers & ITC u/r...

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Posted Under: Income Tax |

GST on Director’s Remuneration; Employee or Director or Both; 8 Issues

GST on Director’s Remuneration. Employee or Director or Both. Attempted to Frame 8 Issues. Resolve It Recently, the Ld. Rajasthan Authority for Advance Ruling in the matter of Clay Craft India Private Limited and Ld. Karnataka Authority for Advance Ruling in the matter of Alcon Consulting Engineers (India) Private Limited have given the...

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Posted Under: Income Tax |

Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959- Analysis

1) Year- 1959 2) IN YEAR 2012 A BILL IS APPROVED BY THE UNION CABINET IN PARLIAMENT KNOWN AS EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) AMENDMENT BILL, 2012 Because with The Passage of Time It Was Considered That the Act Which Was Passed In The Year 1959 Require Some Modification. 3) Modifications which are highlighted [&...

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Posted Under: Income Tax |

MCA Amends Provisions related to NIDHI Companies

Overview Central Government has recently amended the provisions related to NIDHI under the Companies Act and the Rules (effective from 15.08.2019). Why amended: √ to make regulatory regime for Nidhi Companies more effective and √ also to accomplish the objectives of transparency & √ investor friendliness in corporate environment...

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Posted Under: Income Tax |

Acceptance of Deposits under Companies Act, 2013

Deposit Section 2(31) of Companies Act, 2013 provides that Deposit includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include- 1. Any amount received from central or state government 2. Any amount received from Foreign Government/ Foreign Bank/ Foreign Company 3. Any […]...

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Posted Under: Income Tax |

Retailer drugs License in India

It is issued to Persons/offices engaged with Standalone/scientific expert drug store shops. The permit should be submitted to or conceded by a singular state permitting authority. A portion of the essential prerequisites for getting retail drugs license:  1. The carpet area of the drug store must be at least 10 square meters, 2. When you...

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Posted Under: Income Tax |

Wholesale drug license in india

What is the target of the drug control office?  The drugs control office directs assembling and offer of drugs, with the exception of Ayurveda and Unani medication under the arrangements of drugs and cosmetic act,1940. The office likewise grants and renews licenses to merchants and makers of medications including homoeopathic medication...

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Posted Under: Income Tax |

GST demand for old unpaid dues of Binani Cement against Ultra Tech was unsustainable

Ultra Tech Nathdwara Cement Ltd. Vs Union of India (Rajasthan High Court)

The courts are given an extremely limited power of judicial review into the resolution plan duly approved by the COC. Therefore, the issuing of notices by Goods and Service Tax (GST) Department of Rajasthan for all the old unpaid dues of Binani Cement  would be acting in a totally illegal and arbitrary manner and the demand notices were ...

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Section 10A/10B deductions should be made from Gross Total Income instead of Total Income

Comstar Automative Technologies Vs DCIT (Madras High Court)

Deductions either under Section 10A or 10B would be made while computing the gross total income of the eligible undertaking and not at the stage of computation of the total income....

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No transfer on conversion of firm into private limited company and no liability to pay capital gains tax on same

CADD Centre Vs ACIT (Madras High Court)

When partnership firm was transformed into private limited company, there was no distribution of assets and as such, there was no transfer and therefore, assessee was not liable to pay any tax on capital gains....

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Certain income tax developments from March 2020 amid COVID-19

Article explains about Belated & revised returns for FY 2018-19 (AY 2019-20), Tax saving measures for FY 2019-20 (AY 2020-21), Investments for Capital gains exemption, Payment of Advance tax and TDS for the FY 2019-20, Filing of TDS returns and statements  and other issues amid COVID-19. Belated & revised returns for FY 2018-19 (...

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Posted Under: Income Tax |

TDS deduction by Employer as per New Regime legally permissible or not

Recently, CBDT has issued Circular No C1 of 2020 dated 13.04.2020 clarifying deduction of tax by employer as per new regime at the option of the employee. Let’s discuss the legal provisions regarding deduction of tax by employers and answer the following questions: 1. Whether the Circular complies with the provisions of the Income-tax A...

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Posted Under: Income Tax |

How to use E-Nivaran Facility of Income Tax

As we aware that, lots of times we faced may difficulties regarding E-filing, refund, rectification, etc but we usually avoid to complaint against it thinking in a way that the process is very much lengthier or tedious and hence Income tax Department has been come up with solution to our this problem which is called […]...

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Posted Under: Income Tax |

Treatment of GST already paid on Advance amount which is refunded subsequently

Treatment of GST already paid on Advance amount which is refunded subsequently Recently the government has issued a circular no. 137/07/2020-GST dated 13 April 2020 vide which government has clarified various issues. One of issue clarified by the circular is reproduced below: – Sr. No. Issue Clarification 2 An advance is received by...

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Posted Under: Income Tax |

Realty Sector: Aftermath of Pandemic COVID-19

Tremendous increase in the spread of coronavirus created havoc on macro-economic and social factors as various governments declared lockdown for their country to limit the extent of the novel coronavirus. The COVID-19 has created a potential impact on almost all the businesses across the nation and amongst which one of the major stalled b...

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Posted Under: Income Tax |

Advisory for senior citizens & their caregivers – COVID-19

Advisory for senior citizens and their caregivers during lockdown period due to COVID-19 The Ministry of Social Justice and Empowerment along with the Ministry of Health and Family Welfare and the Department of Geriatric Medicine, AIIMS, New Delhi have prepared an Advisory to be followed by all the senior citizens and their care givers du...

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Posted Under: Income Tax |

How to use ZOOM Meeting Platform securely

MHA issues Advisory on Secure use of ZOOM Meeting Platform The Cyber Coordination Centre (CyCord), under the Union Ministry of Home Affairs (MHA), has issued an advisory on secure use of ZOOM Meeting Platform by private individuals. This advisory states that the platform is not for use by Government officers/officials for official purpose...

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Posted Under: Income Tax |

Norms on settlement of health insurance claims

Ref. No:IRDAI/HLT/MISC/CIR/95/04/2020 (18/04/2020)

Decision on authorization for cashless treatment shall be communicated to the network provider (hospital) within two hours from the time of receipt of authorization request and last necessary requirement from the hospital either to the insurer or to the TPA whichever is earlier....

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Bill to-Ship to Transactions and its Place of supply in GST regime (Updated)

In today’s business Bill to – ship transactions are often occurrence. The main benefit of any subsequent sale during the movement of goods is exempt from tax leads to do a proper tax planning’s in current regime....

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FAQ’s related to Viewing Orders of Unblocking of E-Way Bill Generation Facility

In this article we will read the FAQ’s related to Viewing Orders of Unblocking of E-Way Bill Generation Facility, where we will find find the status of order issued by Tax Official , steps to view Acceptance/Rejection Order and duration for which unblocking of an E-Way Bill generation facility. The detailed FAQ’s are:...

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Posted Under: Income Tax |

Suggestions for combating corona

Coronavirus can’t be controlled but it can be managed and that too dynamically. We truly appreciate the dynamic actions that Indian Government has taken starting from screening of flyers coming in from foreign countries to continuing the lockdown till 3rd May. Taking lessons from the mistakes of the countries like China, Italy, Iran, et...

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Posted Under: Income Tax |

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