"27 April 2020" Archive

Reverse Charge Mechanism (RCM) List under GST

Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. There are two type of reverse charge scenarios provided in law. First is dependent on the nature of supply and/or nature […]...

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Recent controversies in claiming GST refund & probable solution

In the wake of COVID-19, recently CBIC has come with various notifications and circulars. However, one important aspect in respect of GST refund has remained un-noticed. Here, I have tried to explain the difficulties arise due to amendments and probable solution as well as precautions to be taken: 1. Restriction of “NET ITC” for the [...

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Amendment in Time clause for refund of inverted duty structure

Whether amendment made in section 54 regarding the time clause for refund of inverted duty structure has retrospective effect or not. Summary: An attempt has been made to analyze the impact of change made in clause pertaining to time period prescribed for filling refund application of unutilised input tax credit on account of inverted dut...

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GST & Income Tax Implication on Non-Resident Sportsmen Coming to India

When a non-resident sportsman comes to India for participating in any game or sport then a question arises which country has right to charge tax on such income earned by sportsmen by participating in game or sport and what are the tax implications on such income earned. Non-Resident Sportsmen means he is not the Citizen […]...

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Registration under GST- CGST ACT, 2017

THE FILE ENCLOSED DESCRIBES THE FULL DETAILS OF REGISTRATION (SECTION 22 TO 30)  AS WELL AS COMPOSITION SCHEME (SECTION 10). REGISTRATION UNDER GST CGST ACT, 2017 Section 22 : Person liable for Registration Section 23: Person not liable for Registration Section 24 : Compulsory Registration Section 25 : Procedure for Registration Section ...

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Customs Guidelines for conduct of personal hearings in virtual mode

F.No. 390/Misc/3/2019-JC (27/04/2020)

Broad guidelines to conduct such virtual hearing are being provided so that ongoing Customs work of appeals and adjudications are completed expeditiously for quick delivery of justice - through quasi-judicial proceedings and in compliance of overall directions given by Hon'ble Supreme Court under Article 142 of the Constitution of India (...

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Fake Invoicing – Penalty under Income Tax & GST

In the recent past, GST Department has caught various fraudulent cases of Input Tax Credit. Fake invoice are issued without any actual supply of goods or services with an aim of claiming ITC and reduce GST output liability. To curb this, Finance Act,2020 has brought amendment to penalty provisions of Sec 122 & Sec 132 […]...

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Analysis of Composition Scheme under GST

Introduction: Indirect tax is a tax where the incidence of tax is in the hands of the supplier whereas the burden to pay the tax is in the hands of the recipient. Goods and Service Tax (GST), is a destination based consumption tax that is levied on both Supply of Goods and Supply of Services. […]...

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COVID-19 GST Impact

The outbreak of Coronavirus has caused a significant impact on day to day living of the common man, government coffers, and business operations. Though lockdown remains the only way to slow the spread, it will also continue to push economic operations to the brink. We have outlined the GST impact due to the Coronavirus pandemic […]...

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Supply of Car for Demonstration- Its Classification, taxability, applicable rate & ITC Provision

Goods & Service Tax (GST) introduced in year 2017 enacted the law with similar provisions for sale of old or new car. Thereby implementing heavy tax burden on the same with applying Cess over and above the highest slab rate of 28%. Later in beginning of year 2018 statue were relaxed in regards to used car....

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Paying Guest Accommodation Services cannot be treated as renting of Residential dwelling

It is held  in Re Sri. Taghar Vasudeva Ambrish (GST AAR Karnataka),  that leasing of immovable property for Paying Guest Accommodation cannot be treated as renting of residential dwelling and is not exempted from GST. In this article , an attempt has been made to simplify the contents of Advance Ruling and explain  the term […]...

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Some GST Aspects & Transactions Explained thru Q & A – Series III

When you supply goods on High Seas Sale basis, it will remain an exempt supply – also a non-taxable supply.  Once this is so, you will get no input tax credit for inputs, input services and common input services and if you have claimed, it will have to be reversed u/s 17 of CGST Act. ...

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Supply To SEZ Under GST Regime

By following the above principle of destination based taxation exports continue to remain zero rated and a similar benefit continues to be given to Special Economic Zones (SEZs) under GST law. While this benefit is extended to processing zones of the SEZs, sales from SEZ to Domestic Tariff Area (DTA) continue to remain taxed under GST sys...

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Interview with GST expert CA Sudhir Halakhadi

Interview of GST expert 'CA Sudhir Halakhadi' by 'CA Ajay Sharma' -Today I have with me GST Personality, Professional, author and writer SUDHIR HALAKHANDI. Sudhir Halakhandi has More 500 Taxation articles to his credit and a very popular GST writer in Hindi....

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Clubbing of Income from Self-acquired Property converted to Joint Family Property & subsequent Partition

Applicability of clubbing provisions where Income is derived from the separate property converted into Joint Family Property and subsequent Partition- Section 64(2). Transactions covered by Section 64(2) by an Individual, who is a member of HUF — In a case where an individual (who is a member of the HUF),— 1. Converts his separate pro...

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Tax Planning For Financial Year 2020-21

2 OPTION FOR TAX PLANNING-F.Y.-20-21 -Option-I–Old Regime i.e old tax rates with all investment benefits, allowances -Option-II-New tax regime with new rates without investment benefits ,allowance AGENDA- OPTION I (OLD RATE) What is Tax Planning Tax Planning For Retirement Plans Calculation of Gross Total Income Tax Saving Deduction...

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Consequences of Non Filing of ITR

CBDT has vide its order dated 20.08.2014 extended the due date for e-filing of Tax Audit Report to 30.11.2014 for A.Y. 2014-15. The order has nowhere mentioned about the due date for e-filing of Income tax Return (ITR). It seems due date for filing of ITR are been kept same. If the Assessee who are covered under tax audit provisions but n...

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Format of Proposed Savings Declaration for Salaried Staff for FY 2020-21

Proposed Savings Declaration Format for Salaried Staff for Financial Year 2020-21 relevant to Assessment Year 2021-22 Article compiles format of Deceleration to be taken by HR Department of the Company from its Employees for Proper deduction of TDS on Salary for Financial Year 2020-21 related to Saving to be made by Employees and which In...

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Startup in India Eligibility and Benefits & Angel Tax Exemption (After Union Budget 2020)

Ever since the Government of India launched the Startup India program, there has been an incredible surge in the number of startups coming up. The Startup India campaign was launched in 2016 in order to increase entrepreneurship and build a strong and inclusive ecosystem for innovation in India. Through this campaign, various aspects of ...

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Employee Stock Option Plan – An Overview- As amended by Finance Act, 2020

An Overview of Employee Stock Option Plan (As amended by Finance Act, 2020) Introduction ESOPs are a significant component in the compensation of the employees of start-ups as it allows the founders and start-ups to employ highly talented employees at a relatively low salary amount with balance being made up via ESOPs. ESOPs are taxed [&h...

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New Income Tax Regime under section 115BAC

New Income Tax Regime To bring a revolutionary change in Direct Tax Rates or to bring down the burden of taxes on small taxpayers, Hon’ble Finance Minister has proposed a new tax regime by insertion of Sec. 115BAC in which New Slabs are introduced with some restriction. Sec. 115BAC is proposed in Finance Budget, 2020 […]...

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Corrigenda to Income Tax Circular No. 09 of 2020, Dated: 22.04.2020

Corrigenda to Circular No. 09 of 2020 (27/04/2020)

CORRIGENDA TO CIRCULAR NO.9 OF 2020 DATED 22.04.2020 In the Circular No. 9/2020 of the Government of India, Ministry of Finance, Department of Revenue (Central Board of Direct taxes), issued on the 22nd April, 2020,---...

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Key Highlights of RBI Liquidity Support to Mutual Funds

RESERVE BANK OF INDIA, vide press release 2019-2020/2276  dated 27th April, 2020 has Announces Rs. 50,000 crore Special Liquidity Facility for Mutual Funds (SLF-MF) In view of the situation arising due to COVID-19 pandemic and extended lockdown period. Why RBI Announces such Measure: Heightened volatility in capital markets liquidity str...

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File FORM GST PMT 09, to transfer/shift money in Electronic Cash ledger

File FORM GST PMT 09, to transfer/shift the money available in Electronic Cash ledger, between various major and minor heads of GST Taxpayers deposit money using challan and the paid amount gets credited in the particular head in the Electronic Cash ledger and the same can be utilized in settling liabilities of that head only. […]...

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Learning From Movies- Lessons for Life

Now that we are in the lockdown and struck at home, what’s the one thing we all are doing?? Don’t tell me its doing the dishes and mopping the floor!!! Anyways, atleast as per Google, its Binge Watching! There is a significant increase in the viewership of content streaming services like Netflix and Amazon Prime. […]...

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Guidelines for home quarantine during COVID-19

Detection of a travel related/unrelated suspect case of novel Coronavirus Disease (COVID-19) will be followed by rapid isolation of such cases in designated health facilities and line listing of all contacts of such cases.Home quarantine is applicable to all such contacts of a suspect or confirmed case of COVID-19....

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Guidelines for Home Isolation of very mild/pre-symptomatic COVID-19 cases

The present guidelines are in addition to guidelines on appropriate management of suspect/confirmed case of COVID-19 issued by MoHFW on 7th April, 2020. All suspected (awaiting test results) and confirmed cases of COVID-19 disease are currently being isolated and managed in a hospital setting with the intent to break the chain of transmis...

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Companies Fresh Start Scheme- Applicability, Effect, Application & Immunity

In order to facilitate the Companies registered in India to make a fresh start on a clean slate and to give such an opportunity to defaulting Companies by enabling them to file the belated documents in MCA-21 registry, the Central Government has introduced a scheme namely Companies Fresh Start Scheme, 2020 (CFSS – 2020) condoning the de...

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Tax Calculator for Salaried – Old vs New Tax Regime

Old Tax Regime vs New Tax Regime which one is beneficial to you (should you opt) with Excel Automatic Tax Calculator – Salaried Employee The Central Board of Direct Taxes (CBDT) via a circular dated April 13, has clarified that employers will have to deduct TDS from salary for financial year 2020-21 as per the tax […]...

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Name Application/Reservation for Company via Spice+Part A

Name Application for the Company / Spice+ Part A / Name Application of Company Through Spice + Part A/ Reservation of Name Name Application for a Company could be made through SPICe+ Part A under New Application. From 23rd February, 2020 filing of WEB Based Form RUN for Name Application has been discontinued for Name […]...

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Possible wealth creation through “Disruption-Proof” Businesses

Lockdown due to Coronavirus has provided me the much needed time to pursue my passion of reading the Annual Reports of the Companies and analyze the Profit & Loss Accounts, Balance Sheets, Cash Flow Statements etc.Equity markets in India over the last four decades have created tremendous amount of wealth for investors....

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Highlights of SEBI’s temporary relaxations for Rights Issue

Article highlights SEBI relaxation related to Eligibility conditions related to Fast Track Rights Issues, Relaxation with respect to Minimum Subscription, Minimum threshold for not filing draft letter of offer and One-time Relaxation on opening of issue....

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Statutory Branch Audit of Banks – Guidelines Revised- COVID-19

DOS.ARG.No.6605 /08.91.001/2019-20 (27/04/2020)

In view of the difficulties expressed by certain banks in the matter of conducting Statutory Branch Audit in PSBs on account of lockdown situation prevailing due to the spread of COVID-19 in the country, the matter was examined by RBI....

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COVID-19 and its Impact on Indian Economy & Business

Besides the impact on human lives and global supply chain, the pandemic is a severe demand shock which has offset the green shoots of recovery of the Indian economy that were visible towards the end of 2019 and early 2020.The International Monetary Fund (IMF) has projected the Indian economy to grow at 1.9% in 2020-21. […]...

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Enforceability of Arbitration Clause in an Unstamped Arbitration Agreement

Enforceability of Arbitration Clause in an Unstamped Arbitration Agreement Vis-À-Vis Section 9 and Section 11 of the Arbitration and Conciliation Act, 1996; A Conundrum...

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COVID-19: Guidelines on rational use of Personal Protective Equipment

Novel Coronavirus Disease 2019 (COVID-19): Guidelines on rational use of Personal Protective Equipment Personal Protective Equipment (PPE): Components of PPE are goggles, face-shield, mask, gloves, coverall/gowns (with or without aprons), head cover and shoe cover. Face shield and goggles: Contamination of mucous membranes of the eyes, no...

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Relief for conducting EGM through video conference or other audio visual means

Ministry of Corporate Affairs ('MCA') vide its general circular no. 14/2020 dated April 8, 2020 has clarified that in case of holding of Extra-ordinary General Meetings ('EGMs') is considered as un-avoidable by any company, then the company can hold EGM for transacting the urgent business through Video Conference ('VC') or other audio vis...

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Covid 19 – RBI Regulatory Package- FAQs on Benefit- NPA classifications

Benefits from Covid 19 – RBI Regulatory Package Moratorium Given : 1. Terms loans– All term loans such as agricultural term loans, retail, and crop loans will be given Moratorium of 3 months for payment of all installments(Principle and Interest) falling in b/w 01.March.2020 to 31.May.2020. So after three months, the repayment schedul...

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MCA Relaxation on holding of AGM amidst Covid-19

In a massive relief to the companies, the Ministry of Corporate Affairs (MCA) vide general circular No. 18/2020 eased rules on holding Annual General Meeting (AGM) on 21st April 2020. The relaxation was made owing to request made by several companies seeking leniency in the AGM rules due to the social distancing and lockdown rules foll...

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Effect on Financial Reporting Standards Due to Covid 19

Brief Overview of advisory on Financial Reporting issued by ICAI for the Current FY in the wake of businesses being impacted by coronavirus outbreak. Areas to be considered 1. Inventory Mgt (Ind AS 2) It might be necessary to write down inventories to net realizable value due to reduced movement in inventory, decline in selling […]...

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Relaxation by MCA from March 19 till April 25 during Lock out which is continued

List of Relaxation in compliance of the Companies Act 2013 granted by the Ministry of Corporate Affairs during Pandemic of COVID-19  World Health Organization (WHO) Director-General declared the COVID-19 outbreak as a Pandemic on March 11, 2020.  Italy, witnessed a huge surge in COVID-19 cases, with a steep rise in the number of deaths ...

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Fiscal Options & Response to Covid-19 epidemic- (Suggestions by IRS Officers)

Ref: 007/2020 (23/04/2020)

INDIAN REVENUE SERVICE ASSOCIATION ALL INDIA BODY Ref: 007/2020 Date: 23.04.2020 To, The Chairman & the Members CBDT, North Block New Delhi Sir/Madam, The CBDT has sought feedback from our field formations across India on the ideas for revival across various sectors of the economy. While the combined feedback would certainly assist in...

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E-Book | Vivad Se Viswas Scheme! April Edition

Please find5th edition of our e-book on ‘Vivad Se Vishwas Scheme’ which contain: – Brief about Vivad Se Vishwas Scheme – Analysis of Vivad Se Vishwas Scheme – Emerging issues – Key cases from IDS – The Direct Tax Vivad Se Vishwas Act, 2020 – The Direct Tax Vivad Se Vishwas Rules, 2020 –...

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No reduction in retirement age of Central Government employees

Ministry of Information & Broadcasting No reduction in retirement age of Central Government employees, PIB Fact Check busts fake news Posted On: 26 APR 2020 Fact Check Unit of Press Information Bureau has today clarified in a tweet that Central Government is not mulling a reduction in retirement age of Central Government employees. Th...

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Never asked for a report from IRS officers on tackling Covid-19: CBDT

There is some report circulating on social media regarding suggestions by a few IRS officers on tackling Covid-19 situation. It is unequivocally stated that CBDT never asked IRS Association or these officers to prepare such a report. No permission was sought by the officers before going public with their personal views & suggestions, ...

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RBI Announces ₹ 50,000 crore Special Liquidity Facility for Mutual Funds (SLF-MF)

In view of liquidity strains imposed on Mutual Funds by Covid-19 global pandemic, RBI has announced Rs 50000 crore Special Liquidity Facility for Mutual Funds (SLF- MF)....

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SEBI reduces Broker turnover fees and filing fees for issuers

PR No.: 24/2020 (27/04/2020)

In a view to combat challenges of COVID-19 Pandemic , SEBI on 27th April,2020 Vide PR No.:24/2020  notified to reduce Broker Turnover Fees and filing fees on offer documents for Public issue, Rights issue and Buyback of shares. The broker turnover fee will be reduced to 50% of the existing fee structure for the period […]...

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AARs on GST under RCM basis on Remuneration paid to Directors

A brief idea about the present practice in Industry: Normally the company pays remuneration to its director for managing day to day affairs of the company and treat the directors as employees for all statutory and legal purposes. The Schedule III Clause (1) of CGST ACT, 2017 treats supply of service in relation to the […]...

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Franklin Templeton clarifies on media reports about funds

(Excerpt from the Email sent by Sanjay Sapre, President, Franklin Templeton Asset Management (India) Pvt. Ltd. to investors) Dear Investor, I am personally writing to you today, to address some immediate concerns created by some well-intentioned but factually incorrect reporting across various media channels. Let me provide some clarifica...

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India tweaks FDI policy to curtail opportunistic acquisition of firms in midst of COVID-19

In a press note gave on April 17, the Department for Promotion of Industry and Internal Trade (DPIIT) has said the modification of the FDI strategy is intended to control ‘artful takeovers/acquisitions of Indian organizations because of the current COVID-19 pandemic’. The way that the amendment is explicitly intended to hav...

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A Knight in Shining Armor against Opportunist Takeover OR Capitulation for Growth

The Government of India revised the Foreign Investment Policy foreseeing the threat of opportunistic takeovers due to the COVID-19. Knight Shield against Opportunist Takeover, 'a non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited....

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Repo Operations by Reserve Bank of India

Due to COVID-19 Pandemic world is facing unprecedented crisis both in terms of health & financially. India is also not immune to the crisis around globe. Recently, Reserve Bank of India (RBI) & Government of India have taken various steps for financial stability, among all steps one such step is Long Term Repo Operation and [&hell...

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Membership & Subscription charges deductible as preliminary expenditure

Phillip (India) Pvt. Ltd. Vs ACIT (ITAT Mumbai)

Service fees and membership & subscription fees were incurred for the purpose of business and to set up a transaction meant for overseas capital market, therefore, this expenditure could be treated preliminary expenditure for the purpose of business. ...

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SC: Doctrine of Promissory Estoppel not applicable on subsequent industrial policies

Union of India & Another Vs V.V.F Limited & Another (Supreme Court)

Subsequent notifications/industrial policies  were issued in public interest and in the interest of the Revenue and they seek to achieve the original object and purpose of giving incentive/exemption while inviting the persons to make investment on establishing the new undertakings and they did not take away any vested rights conferred un...

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Use of & downloading of C Forms allowed to purchase PNG & Liquor Products

Commissioner of Commercial Taxes Vs Ramco Cements Ltd. (Madras High Court)

Use of and online facility for downloading C Forms for inter-state purchase of petroleum crude, diesel, petrol, aviation turbine fuel, natural gas and liquor should not be restricted as if sale of the goods was the only criteria of registration under the CST Act, the consequent amendments would not have allowed concessional rate of tax fo...

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Revised Differential rate of assistance under TMA WEF 28.03.2020

Notification No. 17/3/2018-EP (Agri.IV) (27/04/2020)

Central Government had introduced a Scheme titled Transport and Marketing Assistance (TMA) for Specified Agriculture Products. In this scheme it is now provided that Assistance for products exported by air would be based on per kilogram freight charges on net weight of the export cargo, calculated on full kilogram basis, ignoring any frac...

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IP suspended for 6 Moths by IBBI for negligence in Professional Duties

Order No. IBBI/DC/23/2020 (27/04/2020)

It has been observed that unreasonable CIRP costs has been incurred by the IP in appointment of following law firms and advocates when AZB & Associates were already appointed for legal assistance during CIRP at exorbitant costs (Rs. 11 Lakh for upto 100 hours and after that Rs.12,000 per hour)....

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DGGI founds case of Non-payment of IGST on free-of-cost import of software

D.O.No.12/CH(IC)/2020 (27/04/2020)

The DGGI Delhi Zonal unit has booked an important case involving non-payment of IGST on free-of-cost import of software by a major software company whose sister company is based abroad and recovered the entire duty amount of Rs 22.68 crore for the period July, 2017 to March, 2020....

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Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2020

Notification No. S.O. 1374(E) (27/04/2020)

Acquisition after renunciation of rights.- A person resident outside India who has acquired a right  from a person resident in India who has renounced it may acquire equity instruments (other than share warrants) against the said rights as per pricing guidelines specified under rule 21 of these rules...

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Implementation of Margin framework for cash & derivatives segments extended to 01.06.2020

Circulars No. SEBI/HO/MRD2/DCAP/CIR/P/2020/74 (27/04/2020)

In view of the challenges arising out of COVID-19 pandemic and various other surveillance measures in place, it has been decided to extend the implementation date of the provisions of the aforesaid Circular to June 01, 2020....

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