"02 May 2020" Archive

Binding value of Circular issued under GST law

In this article, we will have an in-depth analysis on purpose of circular issued under GST law and their binding value on Assessee, department and courts....

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Unearthing the concept of Composite Supply under GST

Now, since GST Law is applicable on both goods and services, the concept of composite supply covers all the aspects related to supply of bundled goods or services or both under a transaction. So, the utmost determinant factor is the scope of the concept of composite supply under the GST regime....

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Refund Under GST – Clarifications & Amendments

In case the supplier has paid GST on advances received for a future event which got cancelled subsequently and for which invoice is issued before supply of service. He is required to issue a “credit note” in terms of section 34 of the CGST Act. The tax liability shall be adjusted in the return subject to conditions of section 34 of th...

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Comprehensive analysis of composition scheme under GST

1) Introduction : In view of the spread of pandemic COVID-19 across many countries of the world including India, The GOI has increased the due date for filling intimation to opt for payment of tax under composition scheme for FY:2020-21 to 30.06.2020 vide Notification No. 35/2020 – Central Tax dated 03.04.2020. So before advising client...

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Input Tax Credit (ITC) available when goods received – When do we receive?

Input Tax Credit (ITC) is the base of GST Law and its success or failure depends entirely on the manner ITC provisions are implemented in letter and spirit. Section 16 of the CGST Act, 2017 gives detailed conditions regarding entitlement of ITC and one shall have to religiously comply with them to become eligible to entitle the same....

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GST registration for work contract to be executed in another state

Issue: Whether separate registration is required for work contract to be executed in another state other than principal place of business. Applicant: M/s T & D Electricals  – Advance Ruiling No: KAR ADRG 18/2020 dated 31.03.2020 Provision referred: Section 2(71), 2(89) & 22 of CGST Act 2017 Section 7, 8 ,10 & 12  of IG...

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Interesting issues under Section 44AD, 44ADA and 44AE

To provide relief to small taxpayers from this tedious work, lawmakers framed Special provisions for computing profit and gains on presumptive basis under sections 44AD, 44ADA and 44AE. The taxpayer can declare his income at prescribed rates or higher than that....

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Exemption for dividend income received from Indian Company | Section 10(34)

In simple terms, a dividend is the distribution of the profit of the company among its shareholders. The dividend income referred to in section 115-O of the Income Tax Act is exempt under section 10(34) of the Income Tax Act. The exemption provisions of said section 10(34) are taken up and explained in the present […]...

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No quantum Section 68 addition in case concealment penalty was deleted

Basir Ahmed Sisodiya Vs ITO (Supreme Court of India)

Even though assessee failed to prove the genuineness of the purchases during the assessment proceedings, he filed affidavits and statements of the dealers in penalty proceedings and appellate authority had not only accepted the explanation offered by assessee but also recorded a clear finding of fact that there was no concealment of incom...

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Penalties imposable in Income Tax Search Cases

Default in complying with provisions of or with conditions prescribed under the Income-tax Act would attract certain penalty and in critical cases prosecutions as well. There are three modes built in the fiscal legislation for encouraging tax compliance: (a) Charge of Interest; (b) Imposition of penalty; (c) launching of prosecution agai...

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