"28 April 2020" Archive

Mechanism of Input Tax Credit under GST

Goods and Services Tax (GST) is considered as the biggest reforms in India. However, one thing that has become the talking point is – the mechanism of input credit under GST. In simple words, Input credit means that at the time of paying taxes on sales made, you can reduce the tax from the tax paid […]...

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Deemed Exports under GST Regime

Deemed Exports in GST is not like an export made out of India. According to the section 147 of CGST Act, goods supplied under deemed export shall not leave India and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India. In GST […]...

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GST Treatment on disposal of capital asset

Definition of Capital good under GST As per section 2(19) of CGST act, 2017  ‘capital goods’ means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business. GST treatment […]...

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What, when a Vehicle is intercepted at Check Post under GST?

Check Post Problems!!! What is the right and responsibility of Tax-Payer when a Vehicle is intercepted at the Check Post? Check Post problems are the toughest problems for a Tax Practitioner. May it be the old Sales Tax or the Value Added Tax or the Goods and Service Tax, check post problem has been trouble […]...

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Advisory issued by GSTN Portal on filing Form GST PMT-09

Rule 87(13) and Form GST PMT-09 made effective w.e.f 21st April 2017 Rule 87 (13) of CGST Rules, 2017: A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated […]...

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GST Vs. Earlier Indirect Taxation regime from Business & Law point

Since the inception of the Indian Constitution the earlier In-direct taxation system has faced a jolt most because of the imposition of multiple taxes before the GST reform. The old multilayer taxation scheme imposed a scenario of double taxation along with its cascading effect which ultimately led to in equal distribution of revenues bet...

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Refund on Exports under GST: Some overlooked conditions & restrictions

It is a well know policy of government that goods or services can be exported but taxes should not be exported. Under GST law exports of goods and services are treated as Zero rated supply which entitles an exporter to claim refund in terms of Section 16(3) of IGST Act, 2017. He may either claim […]...

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Is GST applicable on ‘salary’ paid to all directors?

Recently, the Rajasthan Authority of Advance Ruling (‘AAR’) has issued a ruling in the matter of Clay Craft India whereby AAR has interpreted the definition of ‘supply’ and provisions of reserves charge very differently. The AAR has levied GST under reverse charge mechanism (‘RCM’) on salary payments made to directors and has...

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Taxability of director remuneration under GST

Recently in an application filed by the Company M/s Clay Crafts India Pvt Ltd before the Rajasthan bench of Authority for Advance ruling , AAR held that salary/remuneration paid to the Directors working as employee of the company will attract GST and the company is liable to pay GST on reverse charge mechanism as per […]...

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Transitional Credit under GST – The Never Ending controversy

First major litigation before various courts across the country in GST era was pertaining to the transitional credit where the assessees were not able to file TRAN-1/ TRAN-2 within the requisite time. Whereas Government being already short of revenue was adamant on recovering some undue amount from the dealers, the assessees could not let...

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Input Service Distributor under GST: Plenty of Compliance

Article explains about Concept of Input Service Distributor  (ISD) under GST, Manner of distribution of credits by ISD to recipient unit(s), Conditions of distribution of ITC, Recovery of excess distribution of ITC by Credit Notes or otherwise, Registration of ISD, GST return for Input Service Distributor, Particulars of documents to be ...

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Every Customer entitled to tax rate reduction benefit by way of Reduced Prices

Every Recipient/Customer is Entitled to the Benefit of tax Rate Reduction by way of Reduced Prices: National Anti-Profiteering Authority [Ref: State Tax Officer Versus Cilantro Diners Private Limited (Case No. 18 Of 2020)] (A) BRIEF FACTS Application was filed under Rule 128 of the Central Goods and Services Rules, 2017 [“CGST Rules”]...

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No Separate GST registration required for execution of Work Contract in other State

Normally we feel that where the work contract is obtained we should get registration to do purchase in the State . If the contractor is got three work contract in three  different State, we assume that separate registration in required each and every State. Fact is not the same, we can take registration in one […]...

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CBIC notifies effective date for Rule 87(13) & Form GST PMT09

Notification No. 37/2020–Central Tax [G.S.R. 266(E)] (28/04/2020)

CBIC notifies 21st day of April, 2020 asthe date from which Rule 87(13) of CGST Rules  & Form GST PMT-09  will comes into effect.  After this rule comes into effect a registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash […]...

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Reverse Charge Mechanism (RCM) Under GST Regime

In the GST regime, An Entity or Supplier is required to be registered either mandatorily under cretin circumstances (say, crossing threshold limit – 40L/20L; involved in specified business’s) or on voluntary basis. However there are certain suppliers,not registered due to illiteracy (say, local good transporters) or they are situated ...

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Returns Under GST (New as well as Existing)

Here I tried to discuss about all the GST Returns, New (ANX-1/2/3) etc as well as existing GSTR-1/3B/4/5/6/7/8/9/9A/9B/9C/10 etc. Existing Return Regime: Section 37 : Furnishing Details of Outward Supplies Section 38 : Furnishing Details of Inward Supplies-GSTR-2 (Suspended) Section 39 : Furnishing of Returns(GSTR-3B,4,5,6,7,8) Section...

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Tax FAQs for Non-resident Indian

Each family in India has at least one family which is resident outside India. Previously, the number of transactions between a resident and non-resident were limited but with growing number of family members now settling outside India, there is a tremendous increase in inflow and outflow of money between the two. This has made the tax dep...

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Agriculture Income under Income Tax

Income Tax have various contentious issues despite being one of the oldest Law of the Land. On these issues assesse and revenue used to loggerhead each other on various form of Authorities. Taxation of AGRICULTURAL INOCME is also one of such contentious issue. One of the main reason for various dispute on Agriculture Income is attribute ...

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Gold Rate Chart alongwith its taxability under Income Tax

Rates of Gold and Silver for Wealth Tax valuation Purpose - Valuation of Jewellery- Jewelry Includes: Ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stones, and whether or not worked or sewn into any ...

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Section 148: Reason for issue of notice can be claimed before Return Filing

Assessee Can Claim Reasons For Issue Of Notice under section 148 Before Filing Of Return under section 148 of Income Tax Act, 1961. We all are aware that notice under section 148 for reassessment can be issued by income tax department upto sixteen years from the end of the relevant assessment years, if there is […]...

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Section 51: Monies Forfeited Characterized with Income from Other Sources

Many times we observed in property transaction that buyer enter into the transaction paid advance money against the consideration and then after some time if something went wrong he cancelled the transaction. In such cases, generally seller of that property forfeit the advance money received by buyer. So if such situation occur how tax wi...

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Exemption under Section 54 and Section 54F

There is always a doubt and confusion in the industry among professionals as well as tax payers regarding availment of exemption under section 54 and 54F against capital gains. Whether investment is allowed to be made only in one residential property or more than one residential property can be allowed? Therefore, today I am covering [&he...

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Exemption towards income for administration of Charitable or Religious Institution

Exemption towards income for administration of the Charitable or Religious Institution Any income of the specified body or authority which is established for the administration of the specified institution is exempted under section 10(23BBA) of the Income Tax Act. The provisions of the said exemption section 10(23BBA) are explained in the...

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Equilisation Levy – Desperate Approach to tax Digitalisation

Neutrality, efficiency, certainty & simplicity, effectiveness & fairness, flexibility and equity are basic fundamental principle which must reflect in any tax policy.  The Committee while recommending Equilisation Levy lay much emphasis on Neutrality which is so noted in the Committee’s Observation in para 38 of the Report:...

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Equalisation Levy: Rough Sea or Smooth sailing?

After the amendment legal position related to equalisation levy has changed drastically. Now, the non-resident e-commerce operators are required to withhold at the rate of 2% of the gross amount received/receivable in lieu of e-commerce supply and service....

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TDS under Section 194O of Income Tax Act, 1961

TDS Obligation on e-commerce operator under Section 194O of Income Tax Act, 1961 Expansion of WHT obligation to cover e-commerce transactions where e-commerce operator facilitates the transaction on e-commerce platform. Introduced by Finance Act, 2020 and applicable from 1 October 2020. Purpose In order to widen and deepen the tax net by ...

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Tax Audit Report- Applicability of Clause 30C & Clause 44 deferred

Circular No. 10/2020 - CBDT - Income Tax

Tax Audit Report (Form 3CD- Applicability of Clause 30C & Clause 44 deferred till March 31, 2021 Central Board of Direct Taxes (CBDT) has issued Circular No. 10/2020 dated April 24, 2020 by which the CBDT has deferred the applicability of certain Clause of Form 3CD (Tax Audit Report) till March 31, 2021. Order under […]...

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TDS on Salary for F.Y.2020-21- New Vs. Old Tax Regime

Union Budget 2020 introduced an alternative taxation regime for individuals, allowing an option for lower tax rates u/s 115BAC, provided they don’t avail of certain exemptions/deductions otherwise available under the Income tax Act. Some of such exemptions/deductions are house rent allowance, interest on home loans, and investments ma...

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A Road Map to NRI Taxation

The income tax rules and perks allowed to a Non-Residential Indian is drastically different from those applicable to resident Indians. NRI taxation in India is a constant matter of concern for the vast number of Indians living all over the world who have to send money to home and make investment planning for themselves and […]...

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Taxability of Foreign Shipping Business in India

Taxability of Foreign Shipping Business in India : Governed by the provisions of Section 172 and Section 44B of Income Tax Act, 1961. The provisions relating to taxability of Foreign Shipping Business have been introduced in the Income Tax Act, 1961 to govern and regulate the manner in which Foreign Shipping Businesses will be taxed [&hel...

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Section 115BBE- Validity of retrospective amendment

This article aims at highlighting the retrospective amendment in provisions of section 115BBE of the Income Tax Act, 1961 and its applicability....

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How Tax Haven Countries are used for Tax Evasion

There was a great need and importance to stop malicious practices of tax evasion. To combat the same, government of various countries have come forward to act accordingly and has formed and amended their treaties and agreements with other countries in order to protect the economy and revenue interest of their country. In the year [&hellip...

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Promissory Estoppel against area based exemptions and other investment based incentives after GST

Present article in Part A examines the controversy over continuation/ grandfathering of investment based incentives upon implementation of Goods and Services Tax (GST) and the corners of promissory estoppel as possible recourse to re-gain lost incentives. Part B encapsulates some other aspects that are relevant in the context on investmen...

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Draft Procedure for Submission of Audit Files to NFRA

Notification No. NF-20011/3/2020 (28/04/2020)

NFRA proposes to prescribe the procedures to be followed by all entities regulated by NFRA for submission of Audit Files to NFRA. NFRA invites comments from regulated entities on the procedure described in this draft document in Annexure A....

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Covid-19 Package RBI

Why RBI COVID-19 Package is needed: 1. Some sectors which are badly impacted by Covid-19, such as hospitality and airlines need a lifeline. 2. Majority of companies in the country are also sitting on huge debts that need to be serviced. The slowdown will also impact business plans of the coming fiscal year. If any […]...

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UIDAI allows Aadhaar updation facility through CSCs

UIDAI allows Aadhaar updation facility through Common Service Centre (CSC) Ministry of Electronics & IT, vide press release 1618913 dated 28th April, 2020 has Announced major relief to Aadhaar holders, UIDAI allows Aadhaar updation facility through and 20,000 CSCs to offer this service to citizens. In view of the situation arising due...

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ROC Compliance List

List of Due Dates of F.Y 2019-20 to be complied: There are numerous compliance which the Companies and LLP’s have to do during and after COVID-19 pandemic with the Registrar of Companies for the period F.Y 2019-20. Following is the List of Forms which the Companies need to comply for the F.Y 2019-20 Sr. No […]...

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20 FAQ’s on EPF Advance to Fight Covid-19 Pandemic

Employees’ Provident Fund Organization, India, Ministry of Labour & Employment, Government of India has issued FREQUENTLY ASKED QUESTIONS ON EPF ADVANCE TO FIGHT COVID-19 PANDEMIC Dated 26/04/2020. FAQ’s ON EPF ADVANCE TO FIGHT COVID-19 PANDEMIC Q1: What is the process for change in name on marriage of a woman member against UAN w...

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BSE relaxations granted in relation to compliance with SEBI provisions on account of COVID-19 pandemic

BSE issued relaxations granted in relation to compliance with various provisions on account of COVID-19 pandemic Considering the hardships faced by the listed entities due to the lockdown pursuant to the COVID-19 Pandemic, SEBI has issued various circulars notifying relaxations in the timelines by which the compliance filing required unde...

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Things Professional can do at Home……….

Now, here are some suggestions for OFFICE WORK to do at home before actually you start office in next week.  Mainly it will help to those who are into GST and Income Tax practise. On GST side- 1. You can select Monthly / Quarterly category for each client FOR 20-21. This can save your lot […]...

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NI Act: No mandatory requirement of notice to directors of Company

Krishna Texport & Capital Markets Ltd. Vs ILA A. Agrawal & Ors. (Supreme Court)

According to Section 138, where any cheque drawn by a person on an account maintained by him is returned by the Bank unpaid for reasons mentioned u/s-138, such person shall be deemed to have committed an offence....

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Unlocking the Lockdown

Many situations come and go in life and leave memories and sometimes scars which keep getting disturbed when the invisible fingers of thought passes over them. Life has to be lived in the most contended manner come what may that’s what we are told to do however tough the going is but sometimes situations go […]...

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Investing in the Precious Yellow Metal

THE WHY Gold has been a perfect hedge against major events affecting capital markets, currencies, economies globally. In the financial crisis of 1970, 2000, 2008 and now the 2020 Covid-19 crisis, gold has demonstrated solidity. It has preserved the value during the crisis and this quality validates the stability of gold and its attractive...

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Employees Provident Fund withdrawal during COVID -19

We will take you through the withdrawal process for Provident Fund which is an online process and all such claims are processed on a priority basis by the EPFO. So far 3.31 lac PF withdrawal claims have been processed by the EPFO in 15 days....

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Government quarantined Insolvency and Bankruptcy Code amid Covid 19!

In the Press Release held on 24th of March, 2020 the Finance Minister, Nirmala Sitharaman announced many relaxations in the wake of surging outbreak of Covid-19 and considering the extended situation of lockdown in the Country....

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What RBI’s Rs 50,000 crores boost means for mutual funds?

Mutual funds were facing a lot of redemption requests after Franklin Templeton Mutual Fund suddenly shut six of its debt mutual fund schemes on Friday. They are unable to sell some of their investments in the debt market due to poor liquidity. In other words, there are no buyers for lower rated instruments. If mutual funds have to sell th...

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Re-introduction of inheritance tax !! Appropriate tool in testing time?

Objective The Author in this article, discusses inheritance tax being the tool to tide over the covid-19 phenomenon Background a) In view of the outbreak of Covid-19, various state Governments are struggling to even pay salaries of their staff. Central Government is no exception for the same. It is a consequence of multiple things which [...

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All about dormant company (section 455)

Dormant companies The companies Act, 2013 has recognized a new set of companies called as dormant companies. As per Section 455(1) Where a company is formed and registered under this act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive […]...

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Transfer of Unclaimed shares to IEPF

Transfer of Unclaimed shares to Investor Education and protection fund (IEPF) (if condition fulfilled) (A) Manner of Dealing with Unclaimed Shares (Regulation 39(4) read with Schedule VI of SEBI (LODR) Regulations, 2015) The listed entity shall comply with the following procedure while dealing with securities which remain unclaimed and/or...

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Accounting for Decommissioning Provision under Ind AS

In most cases when a company acquires certain types of long-term assets, it has an obligation to remove these assets after the end of their useful lives and restore the site. Most of these long term assets are constructed on leased land or premises, thus obligating the user to return it in the original condition at the end of the agreed t...

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What are different categories of NBFC Registration in India?

The NBFC sector is recognized as a methodically important component of the financial system. The growth of NBFC is entirely constant year-on-year. NBFCs are regulated by the RBI. Reserve Bank of India has the power to keep a check on different categories of NBFCs registered in India. In this topic, we will discuss the necessary […]...

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Form SPICe+ (SPICe Plus) for Company Incorporation

MCA Filing Form SPICe+ (SPICe Plus) for Company Registration-Complete Overview 1. Introduction The government has rolled out a new simple application to make it further easier for incorporating a business in India. The new web form, Simplified Proforma for Incorporating Company Electronically Plus (SPICe+), which integrates various servic...

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Samsonite India Guilty of Profiteering – Not reduced Suitcase price despite GST Rate reduction

Rahul Sharma Vs Samsonite India (NAA)

Rahul Sharma Vs Samsonite India (NAA) The present Report dated 24.09.2019 has been received from the Applicant No. 2 i.e. the Director General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the case are that an application dated 30.0...

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DGFT clarifies on application for Free Sale & Commerce certificate

Trade Notice No. 7/2020-2021 (28/04/2020)

Trade and Industry is advised to send their applications for grant of Free Sale and Commerce Certificate at the official email ID of the concerned RA as per the format given in ANF 21-I. The fee payment needs to be done through the e-MPS system....

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Existing grandfathered unlisted NCDs

Circular No. SEBI/HO/IMD/DF2/CIR/P/2020/75 (28/04/2020)

Timeline for compliance with the maximum limits for investment in unlisted NCDs (as issued vide SEBI Circulars dated October 01, 2019 and March 23, 2020) as 15% and 10% of the debt portfolio of the scheme is extended to September 30, 2020 and December 31, 2020 respectively....

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E-way bill – Common Issues and Solutions with Judicial decisions

One of the major objectives of GST implementation in India was to ensure the seamless movement of goods and no-check posts in between the states. Further, it was expected that it would put an end to the prolonged road permit system and inspector raj in India.  In order to facilitate the same E-way bill mechanism […]...

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Relief for Compliance Related to GST in Tax Audit Report

The Government vide CBDT circular No. 10/2020 Dated 24 April 2020 deferred reporting of Compliance related to Goods and Service Tax (GST)  in the income tax audit reports by a year. The move is a major relief to businesses struggling to cope with the challenges of the Covid -19 pandemic. The tax audit report form […]...

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The Task ‘FORCE’ which was Never Constituted….

A crisis like this calls for bigger tax measures which can form part of larger economic stimulus which the government provides to bring economy back on track. Therefore, the following measures have been proposed for the short-term basis, i.e. for 3-6 months, to enable the taxpayer to withstand the uncertainty in the economy:...

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Kerala Flood Cess Return filing dates extended for Feb 20 to May 20

Notification No. 7/2020-State Tax (28/04/2020)

But various trade bodies/organizations have raised certain practical difficulties with regards to the filing of Kerala Flood Cess returns along with GSTR 3B returns due to the unprecedented spread of pandemic COVID-19. The matter have been examined and found that the issues raised need to be redressed....

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Issues surrounding section 197 lower withholding tax application

With the advent of time, all the processes ranging from our day to day life to corporate models (work from home as observed recently), everything is becoming digital. There were the days when the process of applying Nil/lower withholding certificate (or order) under section 197 of the Income-tax Act, 1961 (‘the Act’) was manual. The [...

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Charitable trust/institutions- No more never ending exemption benefits

Presently, the charitable trusts/Institution are enjoying the perpetual benefit of zero taxation on income earned out of property held by such trust/Institution. Interestingly, once the registration under section 10(23C)/12AA/35/80G/ is notified/granted, will remain in force till the CG/Commissioner of Income tax basis the documents calle...

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Corporate Tax Rates & Deduction for donation to PM Care Funds

The Government of India specified Corporate Tax Rates in Income Tax Act, 1961 and Finance Act through schedules thereto. Income Tax Act, 1961 cover section i.e. Section 115BA, 115BAA & 115BAB though which corporate tax rate has been specified and further tax rates also specified in finance act through first schedules thereto....

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Analysis of Jharkhand HC Judgement on demand of Interest under GST

Analysis of the Hon’ble Jharkhand High Court’s Judgement on Demand of Interest under GST [Mahadeo Construction Co. Vs. Union of India-W.P(T) No. 3517 of 2019 dated 21.04.2020] In recent days, many Taxpayers has received communications from the GST Department in respect to payment of interest due to delay in payment of taxes. In some c...

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