"30 April 2020" Archive

Persons Liable to obtain GST Registration & Compulsory Registration

Provisions relating to persons liable for obtaining GST registration and provisions relating to compulsory GST registration are contained under section 22 and section 24, respectively, of the Central Goods and Service Tax (CGST) Act, 2017. The current article explains both the aforesaid provisions. Person Liable For Obtaining GST Registra...

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Reversal of ITC attributable exempt supplies under Rule 42/43 of CGST Rules, 2017

Sec 17(2) of the CGST Act, 2017 provides that where the goods or services are used partly for effecting taxable supplies (including zero rated) and partly for exempt/ non-business use then the amount of credit as attributable to exempt supplies or non-business use shall be reversed as per Rule 42/43 of the CGST Rules, 2017....

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Interview With GST Personality CA Sushil Goyal

On 28th April Today I have with me one of the renowned GST Personality CA SUSHIL GOYAL B.Com (H), FCA, DISA (ICAI). He is a Chartered Accountant from 1996; He is author of a Book on Service Tax and has immense contributions on GST to his credit. CA Sushil Goyal has developed a system of […]...

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How to convert the lapsed ITC in to Genuine ITC

Meaning of Input Tax Credit (ITC); Section 2(63) of CGST Act, ITC means the credit of input tax and Section 2(62) of CGST Act, Input Tax means, in relation to registered person, tax charged on any supply of goods or services or both made to him and specifically includes, IGST paid on imports, RCM paid […]...

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GST implications on CSR & Donations

Many taxpayers are coming forward to help and support the nation during this lockdown caused due to COVID-19. Since they want to contribute for this noble cause but they might be afraid of GST implications on the same. To give them a clear picture, here is discussion on GST implications on various contributions made. Since […]...

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GSTR 3B and GSTR 1 Due Dates March 20 onwards | Covid 19 Disruptions

Government has implemented following relief measures provided by the press releases due to the spread of Novel Corona Virus (COVID-19): 1)  GSTR1 Return of Outward supplies (Notification No.- 33/2020-CT; Dated: 3 April 2020) The due dates of furnishing GSTR1 has not been extended however late fees have been waived, if the return is fi...

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Extending Limitation for filing Apepal before GST Tribunal under GST Law

That a time of about 34 months have been completed after implementation of Goods & Service Tax. After its implementation always there remain a plethora of litigation in between of tax payer and revenue authorities. That being new law and it is always inevitable to have difference of opinion and having lot of flaws in the law and which are...

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Due dates Chart under Income Tax And GST Amid COVID-19

Extensions and relaxations announced in the due dates of Income Tax and Goods and Services Tax Act by the Government of India in the wake of COVID-19 For the ease in compliance in the filing of returns and payment of taxes under the Income tax Act and the Goods And Services Tax Act, a Summary […]...

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The Equalisation levy – Tapping the untapped

New equalisation levy may be applicable on your business and be a cost for your business.  When it comes to services, the extended scope will cover entities providing online services such as:...

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Complexities in newly introduced TCS on sale of any goods

A seller of goods is liable to collect TCS @ 0.1% on consideration received from a buyer in a previous year in excess of Rs. 50 lakhs. However, in non-PAN/ Aadhaar cases the rate shall be 1%....

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NIL TDS intimation to Department

This article is applicable to all persons having the TAN No. (for TDS deduction purposes) Currently, if there is no TDS to be deducted, no action is taken in terms of filing TDS return for the particular quarter. Due to this practice of non-intimation, the Income Tax department has been finding it diificult to differentiate […]...

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Tax Free Bonds V/S Tax Saving Bonds

The basic difference between Tax Free Bonds and Tax Saving Bonds is Tax free Bonds yields Interest which is not taxable in the hands of Investor whereas in case of Tax Saving bonds it is chargeable to Tax in hands of Investor. Investor gets Deduction under Section 80CCF if he invests in Infrastructure Tax Saving Bonds up to Rs. 20,00...

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Online facility for Response to Outstanding Income Tax Demand

Many a times there are Mis match between TDS shown in Form 16 / Form 16A and actually deposited by Employer / Other party. However at the time of filing Income Tax Return the assessee claims full TDS as per TDS certificate received. Due to this at the time assessment CPC / AO send intimation of Demand. Further there are various reason and...

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Income Tax RAID – understanding Survey Vs. Search

Often termed as Raid by laymen, income tax survey and search are becoming increasingly common as businesses continue to grow. Apparently, there is no word called raid in the Income Tax Act. The two important tools which the department uses are survey and search and when one or both of these two operations get initiated, people term it as ...

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TDS on Purchase of Immovable Property | FAQ | Payment Procedure

As we all are aware that TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be […]...

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Section 43B(f) deduction allowable only on actual payments : SC

Hon;ble SC has recently in Union of India vs. Exide Industries Ltd. upheld the constitutionality of section 43B(f) and has propounded that the deduction would be allowable only on actual payments....

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CA Final Direct Tax | What is Direct Tax & Advantages

What is Direct Tax A Direct Tax wherever the impact and therefore the incidence been equivalent class is outlined as a right away Tax. The direct tax is paid directly by the organization or a person to the entity that has obligatory the payment. The tax should be paid on to the govt and can’t […]...

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E-Form MGT 7 : A total Compliance

The Ministry of Corporate Affairs has introduced E-Form MGT 7 (Pursuant to sub-Section(1) of section 92 of the Companies Act, 2013 and sub-rule (1) of rule 11 of the Companies (Management and Administration) Rules, 2014]. Earlier the said form was known as Form 20B. Both Forms are meant for Annual Return to be filed by […]...

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Issue of Shares Through Right Issue under Companies Act, 2013

‘Right Issue’ means offering shares to existing members in proportion to their existing shareholding. The object is, of course, to ensure equitable distribution of Shares and the proportion of voting rights is not affected by issue of Fresh shares. A rights issue is an invitation to existing shareholders to purchase additional new ...

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MOA Main Objects clauses for different types of Companies

I. IT SERVICES, TECHNOLOGY, TRAINING AND CONSULTANCY: 1. To carry on the business of Software designing, development, customisation, implementation, maintenance, testing and benchmarking, designing, developing and dealing in computer software and solutions, and to import, export, sell, purchase, distribute, host (in data centers or over t...

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LLP- Taxation and other aspects

Today while we are in lockdown period, let us understand the structure of Limited Liability Partnership firm which is most favoured by the businesses in recent times. Limited Liability Partnerships (LLP) came into effect through The Limited Liability Partnership Act, 2008 (the LLP Act). The Rules made under the LLP Act have been notified ...

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Process to Enter into Related Party Transaction (RPT) and Reporting’s

As per Companies Act, 2013, Section 188 states about Process and Provisions of Related Party Transactions. We have already published our article no 568 on Related Party Transaction provisions. In this editorial author shall discuss process of Related Party Transaction and their reporting’s: Checks – Related Party Transaction I. Tr...

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Special measures by MCA to address COVID-19 threat to Companies & LLP

Special Measures by MCA to support and enable Companies and Limited Liability Partnerships (LLPs) in India to focus on taking necessary measures to address the COVID-19 threat SPECIAL MEASURES TAKEN BY MINISTRY OF CORPORATE AFFAIRS UNDER COMPANIES ACT, 2013 (CA-13) AND LIMITED LIABILITY PARTNERSHIP ACT, 2008 We all are getting economicall...

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Section 180 of Companies Act, 2013

Section 180 of Chapter XII of Companies Act,2013 imposes certain restrictions on the powers of the board. As per this Section Board can exercise certain powers only with the consent of the company by a special resolution:- (a) Sell, lease or otherwise dispose of the whole, or substantially the whole, of one or more undertaking […]...

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Tariff Notification No. 40/2020-Customs (N.T.), Dated: 30.04.2020

Notification No. 40/2020-Customs (N.T.) [S.O. 1406(E)] (30/04/2020)

Tariff Notification No. 40/2020-Customs (N.T.), Dated: 30.04.2020 in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) Notification No. 40/2020-CUSTOMS (N.T.) New Delhi, the 30th April, 2020 S.O...

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Extension of timeline for review and updation of stewardship policy

No: IRDA/F&A/CIR/MISC/102/04/2020 (30/04/2020)

All the insurers were advised to review and update their existing stewardship policy based on the revised guidelines within three months from the date of issue of the circular, i.e., by 7th May, 2020....

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Advisory To Policyholders And Insurers Related To COVID 19

Ref. No:-- (30/04/2020)

Policyholders are requested to read the terms and conditions of their insurance policies carefully and be aware of the policy requirements in case they or their insured properties are located in areas where there could be prolonged restriction of movement....

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Unhindered movement of trucks carrying good- Guidelines

D.O. No. 40-3/2020-DM-1 (A) (30/04/2020)

Movement of all trucks and other goods/carrier vehicles with two drivers and one helper subject to the driver carrying a valid driving licence, an empty truck/vehicle will be allowed to ply after the delivery of goods, or for pick up of goods....

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Section 80IAB deduction allowed against rental income from SEZ development

Cessna Garden Developers Pvt. Ltd. Vs ACIT (ITAT Bangalore)

The issue under consideration is whether deduction under section 80IAB will be allowed against the income of lease/ rental income from development of SEZ irrespective of wrong classification of head of income....

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FAQs on Compliance Audit for Investment Advisers

We have been receiving multiple questions related to Compliance audit requirement by SEBI Registered Investment Adviser. Based on that we have attempted to capture some of the common questions. Q 1. What is Compliance Audit? Ans: Basically Compliance Audit is checking of the compliances followed by the Investment Advisers as stated under ...

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Discussion Paper Business Combinations—Disclosures, Goodwill & Impairment

Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment issued by the IASB for comments The implementation of high quality Indian Accounting Standards (Ind ASs) by Indian Companies is a monumental step in the accounting history of India. The Institute of Chartered Accountants of India (ICAI) believes that Ind AS Fr...

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AAR Ruling on Applicability of GST Composition Scheme & Applicable Tax Rate

In re Empathic Trading Centre (GST AAR Karnataka)

In re Empathic Trading Centre (GST AAR Karnataka) 1. The applicant is eligible to be in the composition scheme under section 10 of the CGST Act, 2017 if the turnover of services of the applicant does not exceed ten per cent of turnover in a State or Union territory in the preceding financial year or […]...

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GST on parched / puffed gram Hurigadale / Putani

In re Sri Bhagyalakshmi Trading Corporation (GST AAR Karnataka)

In re Sri Bhagyalakshmi Trading Corporation (GST AAR Karnataka) What is the applicable rate of tax (GST) on parched / puffed gram (Hurigadale / Putani)? The puffed gram, commonly called as “Fried Gram” and as “Hurigadale” or “Putani” in Kannada are a. Exempt from tax under the CGST Act and Karnataka GS...

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No GST on Selling of printed religious books

In re Ideal Industrial Synergy Solutions Private Limited (GST AAR Karnataka)

In re Ideal Industrial Synergy Solutions Private Limited (GST AAR Karnataka) Whether selling of religious books attracts GST?  If taxable, what would be the rate of GST and HSN Code & If exempted, the category of exempted goods and HSN Code? The supply of books by the applicant to the religious schools are supply of […]...

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Supply of software not designed specifically for any customer is Supply of goods

In re Solize India Technologies Private Limited (GST AAR Karnataka)

In re Solize India Technologies Private Limited (GST AAR Karnataka) 1. Whether software supplied by the applicant qualifies to be treated as Computer software resulting in Supply of goods? The supply of software supplied by the applicant which is not designed and developed specific to any customer and sold without any customisation, quali...

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HLA Typing received from overseas laboratory is health care services & Exempt from IGST

In re DKMS BMST Foundation India (GST AAR Karnataka)

In re DKMS BMST Foundation India (GST AAR Karnataka) 1. The services of HLA Typing received by DKMS BMST Foundation India from the overseas laboratory is covered under the definition of “health care services by a clinical establishment” and thereby is exempted from IGST leviable thereon and accordingly not taxable in the hands...

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Covid-19: List of Zone Wise Classification in Red, Orange & Green

Notification No. D.O.No.Z.28015/19/2020-EMR (30/04/2020)

The districts were earlier designated as hotspots / red-zones, orange zones and green zones primarily based on the cumulative cases reported and the doubling rate. Since recovery rates have gone up, the districts are now being designated across various zones duly broad-basing the criteria....

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Poha bran classifiable under HSN 23024090- 5% GST Payable

In re Sri Basaveshwara Corporation (GST AAR Karnataka)

In re Sri Basaveshwara Corporation (GST AAR Karnataka) Rate of tax on sale of Poha Bran or Avalakki Bran or Bran of beaten rice which supplied to cattle feed manufacturing unit? Poha bran is nothing but rice bran and is by product of Poha or Avalakki manufacturing process from paddy. Both rice bran and poha […]...

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GST Advance ruling cannot be given on matter pending before SC

In re Chamundeshwari Electricity Supply Corporation Limited (GST AAR Karnataka)

In re Chamundeshwari Electricity Supply Corporation Limited (GST AAR Karnataka) The issue of the exemption activities carried out by the applicant with reference to administration and Pre and Post connection charges towards supply of electricity is pending before Honorable Supreme Court of India vide SLP Diary No.s 24733/2019 dated 09-08...

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Freight & insurance charges forms part of value of supply of power packs

In re San Engineering & Locomotive Company Ltd. (GST AAR Karnataka)

In re San Engineering & Locomotive Company Ltd. (GST AAR Karnataka) Whether the supply of powerpacks, freight and insurance service and commissioning/ installation services as per the Purchase Order 08/16/2730/1838/f dated 05.11.2016 has to be treated as “Composite Supply” as defined in section 2(30) of CGST Act, 2017 read with se...

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ICSI Postpones CS Examinations, June-2020 session

ICSI vide a press release postponed CS Examinations, June-2020 session, which were suppose to commence on from 1st June,2020.  CS examinations of the June-2020 session will now commence from 6th July, 2020. The Revised schedule will be announced later by ICSI. Full Text of the Press Release by ICSI is as follows:- THE INSTITUTE OF [&hell...

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Principles of natural justice must be complied with before demanding GST interest

Union of India Vs LC Infra Projects (P.) Ltd. (Karnataka High Court)

Before penalizing the assessee by making him pay interest, the principles of natural justice ought to be complied with before making a demand for interest under sub section (1) of Section 50 of the GST Act. Consequence of demanding interest and non-payment thereof is very drastic....

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Whether Approval of Resolution Plan extinguishes Guarantor’s Liability & His Subrogation Right?

In this article we will be discussing aforesaid Moot Question, and consciously examine the impact of approval of the Resolution Plan on guarantor’s subrogation right i.e. right of indemnification from principal debtor as well....

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Mere suspicion cannot be the reason for detention of goods under GST

Synergy Fertichem Pvt. Ltd. Vs State of Gujarat (Gujarat High Court)

In any circumstances, the authorities concerned cannot invoke Section 130 of the Act at the threshold, i.e., at the stage of detention and seizure. For the purpose of invoking Section 130 of the Act at the very threshold, the authorities need to make out a very strong case....

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Recent reliefs in Bank Branch Audit due to COVID-19

1. What reliefs are being provided by Reserve Bank of India (RBI) for easing out bank branch audit during these times of coronavirus? The Reserve Bank of India has brought 3 major circulars in form of COVID-19 regulatory package. i) COVID 19 Regulatory package- (RBI circular dated 27.03.2020)- This circular relates to relaxation in repaym...

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Maharashtra PT: Waiver from Late Return Filing Fees

Trade Circular No. 6T of 2020 (30/04/2020)

Maharashtra Profession Tax -Whole of the late fee payable by the registered employer in respect of monthly or annual returns pertaining to any periods up to March 2020 and monthly period of April 2020, is exempted...

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NSE extends annual listing fees payment due date

Circular Ref. No: 09/2020 (30/04/2020)

NSE has decided to extend the due date of payment for the Annual Listing Fees for FY 2020-21 from 30th April 2020 to 30th June 2020....

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Sunset Review Investigation of imports of Sodium Citrate from China

Case No. (SSR) 09/2019 (30/04/2020)

The scope of the present review covers all aspects of the final findings No. 14/23/2013-DGAD dated 26th February, 2015 concerning imports of Sodium Citrate, originating in or exported from the People's Republic of China....

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Last date of filing of Form NFRA-2 extended to 210 days from deployment date

General Circular No. 19/2020 (30/04/2020)

It has been decided that the time limit for filing of Form NFRA-2, for the reporting period Financial Year 2018-19, will be 210 days from the date of deployment of this form on the website of National Financial Reporting Authority (NFRA)....

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SC upheld constitutional validity of Section 43B(f) of Income Tax Act, 1961

Union of India & Ors. Vs Exide Industries Limited & Anr. (Supreme Court)

Union of India & Ors. Vs Exide Industries Limited & Anr. (Supreme Court) Before the judgment in Bharat Earth Movers (supra), various tribunals and High Courts across the country were treating the liability in lieu of leave encashment as a contingent liability. This did not go down well with the assessees following the mercantile a...

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Importance of end date / completion date under RERA

Importance of end date / completion date under the Real Estate (Regulation and Development) Act, 2016 The Real Estate (Regulation and Development) Act, 2016 (Act) came into effect on 25th of March, 2016 after which till date 07 union territories and 19 states have framed and notified the Rules governing the real estate projects. The [&hel...

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AS-1, Ind AS-1 along with impact of COVID-19

Accounting Standard –1 (Disclosure of Accounting Policies) and Indian Accounting Standard -1 (Presentation of Financial Statements) Along with Impact of COVID-19 Over the same. Accounting Standard –1 (Disclosure of Accounting Policies) 1. Purpose: Purpose of this standard is to promote better understanding of financial statements by e...

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Conceptual Approach to Board Reporting Framework A Post COVID-19 Corporate Governance Perspective

The objective of this paper is to provide a conceptual Corporate Governance perspective to the Board Reporting Framework – Post COVID 19 which will serve as an internal document from the managements mirroring the renaissance of the related entity....

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SEBI relaxes Mutual Fund related compliance

Circulars No. SEBI/HO/IMD/DF3/CIR/P/2020/76 (30/04/2020)

Based on the representations received from AMFI, it has been decided to grant the following relaxations specified in SEBI (Mutual Funds) Regulations,1996 and circulars issued thereunder:...

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Interest from shipping bill date allowed in case of serious delay in effecting refunds

Akay Flavours & Aromatics Pvt. Ltd. Vs CBIC (Kerala High Court)

In case of serious delay in effecting the refunds under GST Act, GST Authority to pay IGST refund alongwith interest from date of shipping bill after following due procedure....

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Law of Recording Satisfaction when AO of Searched & Other Person is Same

Analysis of the Judgment Delivered In The Case Of Super Malls Private Limited Vs PCIT (Supreme Court) related to explaining Law Of Recording Of Satisfaction When AO Of Searched Person And Other Person Is Same In Connection With Validity Of Notice under Section 153C Of The Income Tax Act, 1961. A. Facts of the Case: […]...

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Bonus Issue of Shares under Companies Act, 2013

Article explains The source out of which Bonus Shares shall be issued, Source which company shall not utilise for the purpose of issue of Bonus Shares, Secretarial formalities to be complied with for Bonus Share Issue, Company not eligible for issuing bonus shares and Provisions and procedures relating to issue of shares through bonus iss...

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Reversal of Input Tax Credit (ITC) in respect of Capital Goods

1. The CBIC vide Notification No. 16/2020- Central Tax dated March 23, 2020 has amended CGST Rules 43. This rule applies for ITC reversal in respect of capital goods if the said capital goods used for producing supplies partly for exempted/ non business purpose and partly for taxable / business purpose supplies. 2. Before we […]...

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Section 10(32) Exemption | Income of minor clubbed with parent

Exemption under section 10(32) of the Income Tax Act comes into play only when the income of a minor child is clubbed (i.e., added) into the income of his parent in terms of section 64(1A). The exemption provisions of section 10(32) are covered under the present article....

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ED on Revenue with & without Performance Obligations & Transfer Expenses of IPSAS

ICAI releases Exposure Draft (ED) 70, ‘Revenue with Performance Obligations’, ED 71, ‘Revenue without Performance Obligations’ and ED 72, ‘Transfer Expenses’ of International Public Sector Accounting Standards (IPSAS) Board for public comments At the outset, we would like to inform you that ICAI through its Committee on Publ...

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New Composition Scheme under GST regime -Quick Analysis

New GST composition scheme which came not as an addition to the earlier existing section 10 of the CGST Act, 2017, but through a notification dated 7th March, 2019 [Notification No. 2/2019 - Central Tax (Rate)]....

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Clubbing of Income from assets transferred to a person for benefit of spouse

Provisions under section 64(1)(vii): Where an Individual is assessable for the Income derived from the assets transferred to a person for the benefit of spouse As per section 64(1)(vii) of the Income Tax Act, if an individual (assessee) transfers his/her asset (directly or indirectly) otherwise than for adequate consideration to a person ...

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December 2020