"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....

Read More

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....

Read More

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...

Read More

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...

Read More

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....

Read More

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...

Read More

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....

Read More

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 […]...

Read More

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...

Read More

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...

Read More

Form 15CA, 15CB for remittance of payments to non-resident or foreign company

Form 15CA and Form 15CB to be filed in relation to remittances to non-residents under section 195(6) of the Income Tax Act, 1961 (“the Act”). This new rule is effective from July 1, 2009 and shall apply to all remittances being made after July 1, 2009. The process that will have to be followed, before any remittance can be made, is as...

Read More

Tax Treatment – Salary Income, allowances & perquisites

Salary is chargeable to tax on due or receipt basis whichever is earlier and includes wages, annuity or pension, gratuity, fees, commission, perquisites or profits in lieu of salary, advance salary, leave encashment, etc....

Read More

Analysis of Section 194J- Amendment for Financial Year 2020-21

As per Budget 2020,  TDS under section 194J at the rate of 10% is applicable on the professional Charges , royalty, remuneration or fees to director, fees for not carrying out any work , fees for not sharing any know how or patent or copyright and in case of Technical Charges,  TDS is applicable at the rate of 2% under section 194J of t...

Read More

Tax Rebate of Rs. 12,500 for Taxpayer having income upto Rs. 5 Lakh

Every Resident individuals with Total Income upto 5,00,000 is eligible for Rebate of Rs 12500. With a view to provide tax relief to the individual tax payers who are in lower income bracket, Government has increase the limit of rebate under section 87A of Income Tax Act, 1961. Since the rebate is very important to […]...

Read More

Section 194IA alongwith procedure for filing of Form 26QB

As we all aware that in India, before introduction of Section 194IA there is no tax on transfer of immovable property by a resident except in the case of compulsory acquisition of certain immovable properties. In order to have a reporting mechanism of transactions in the real estate sector and also to collect tax at […]...

Read More

Family Arrangements – Taxation & Legal Aspects

Family disputes and consequential family partition and family arrangements are not new in Indian history. Since ages, the human civilization has been exposed to disputes, settlement and arrangements within the family....

Read More

Download Lighter Form 16A Traces PDF Converter

New utility for generation of Form 16A in pdf format provided by https://www.tdscpc.gov.in is very light and is sized only 8.43 MB while earlier utility was sized 58.04 MB....

Read More

Procedure for Refund of Excess TDS Deducted/ Paid

If a deductor has deposited excess amount of TDS , the procedure for getting refund was given in Board Circular 285 dated 21-1-1980. Now CBDT has issued new circular in this respect....

Read More

Taxation of Charitable Institutions- Amendments Vide Finance Act 2020

Charitable Institutions supplement the efforts of the Government in providing social services. This fact is more visible during the COVID-19 whereby many such institutions have taken upon themselves the task of providing food to the needy and supporting other social activities. The Government, on their part realising the supplementary eff...

Read More

Short term capital gain under section 111A – Detailed Discussion

Under the provisions of section 111A tax on short-term capital gains, in the case of equity shares in a company or units of an equity oriented fund on which Securities Transaction Tax (STT) has been paid, is levied at the rate of 15%. This rate was increased from 10% to 15% vide Finance Act, 2008 with effect from 1.4.2009. However, in the...

Read More

Section 44AD – Is it really a palpable transformation?

Recently, the Section 44AD has been revised and now it is applicable to all businesses instead of only to civil construction business. On the other outset, limit of tax audit u/s 44AB is increased to Rs. 60 lakh from earlier limit of Rs. 40 lakh. Being an entrepreneur first, I had lot of disappointments on increase of limit as now there w...

Read More

Procedure for Correction of Income Tax Payment challan

Revised Procedure from 1st September 2011 to get Income Tax , TDS, Self Assessment Tax, Advance Tax, Wealth Tax and Other Direct tax Payment Challan corrected / Rectified which were paid at bank in Physical Mode and time period within which correction request can be made along with conditions , Procedures for the same and Format of the ...

Read More

Correction/ revision in TDS Return more than once

A correction TDS/TCS statement can be furnished multiple times to incorporate changes in the regular TDS/TCS statement whereas a regular TDS/TCS statement will be accepted at the TIN central system only once....

Read More

Section 192 TDS on Salary- Brief

What is section 192? Section 192 provides that any person responsible for paying any income chargeable under the head salaries is required to deduct tax on the amount payable. Download Format of Form 16 in Word Format Who deduct TDS? A payment can be categorised as ‘salary’ only if it arises out of ‘employer-employee’ re...

Read More

Private Placement procedure under Companies Act, 2013 with FAQs

PRIVATE PLACEMENT (PP) UNDER COMPANIES ACT, 2013 Introduction: We all know Companies Act, 2013 provides various options to issue Securities (Shares, Debentures or any other type of Securities). One of these options is Private Placement. The definition of Private Placement explains when the Companies have to follow the provisions. Let’s ...

Read More

Issue of Shares on Preferential Basis

A Company can raise reserves through three methods: (1) Deposits (2) Loans (3) Capital. Under Companies Amendment Act 2017, Company can bring funds or Capital up in three different ways: (1) Private Placement/Preferential Allotment (2) Right Issue (3) Bonus Issue. Let’s discuss  funds raising through preferential allotment under sectio...

Read More

Private Limited Company Incorporation process

PRIVATE LIMITED COMPANY Under section 2 (68) of company act, 2013 Private company mean company incorporated under company’s act 2013 having paid-up share capital as may be prescribed, and which by its articles, — 1. Restricts the right to transfer its shares: 2. Except in case of OPC, limits the number of its member to […]...

Read More

MCA extends timeline for companies following calendar year

Currently, only companies that follows calendar year as financial year have been granted a 3-months relaxation from holding their AGMs i.e. such companies are allowed to hold their AGMs till 30th September, 2020 instead of June, 2020. Further, the due dates of all other related compliances such as filing of annual returns or financial sta...

Read More

Checklist for Convening & Holding of General Meeting by VC Or OAVM

Checklist For Convening And Holding of General Meeting By VC Or OAVM (By Virtue of MCA Circular Dated: 08-04-2020 And 13-04-2020) INTRODUCTION In order to maintain the complete lockdown and keeping in view of maintaining the social distancing in the current extraordinary circumstances occurred due to pandemic caused by COVID 19, various c...

Read More

Independent Director -Time extended to apply for adding name in Data Bank

Independent Director— Time extended to apply with Institute adding name in Data Bank for ID – On or before  June 30, 2020 On April 29, 2020 , the Ministry of Corporate Affairs notified an amendment in the Companies (Appointment and Qualification of Directors) Rules, 2014 (the Rules)  as the Companies (Appointment and Qualificati...

Read More

IBC 2016 | Position of Sole Proprietorship is still up in the air

Section 5 (20) of IBC, 'an operational creditor' means a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred or transferred....

Read More

Ind AS 40 Investment Property: Basis & rationale for classification

Ind AS 40 – Investment Property: The basis and rationale for classification of property held by an entity as Investment Property, Inventories and Property, Plant and Equipment. Extract of Ind AS 40 Definition: Investment property – is property (land or a building – or part of a building – or both) held (by the owner [&...

Read More

Identification of COVID Related Abnormal Expenses/Losses & Inventory Valuations

Whole of the world is experiencing entirely unprecedented situation wherein almost all the businesses have been shut or were shut. The world practically has come to a standstill wherein Economic cycle has touched its bottom but to rise from the bottom, there has to be some stimulus from the governments. Various business organisations are ...

Read More

Is it risk-free to do business on Trust and no written contracts?

Majority of the SME business entities do not give any attention nor are intended keenly in executing any written contract forget about executing legal documents and most of the business is just done on Trust basis or you can say by keeping it simple by minimising documents at least. Well, trust was earlier had a great […]...

Read More

Successful Business Requirement = Terms & Conditions/Contract

1. Create Certainty: Two Parties entering into an document containing Terms and conditions gives a certainty of what product or service will be dealt with, how the payment will be taken care off, how to raise the invoices, other modalities of executing the business, raising of dispute, if any and so on. It is important […]...

Read More

Where do businesses’ lawful needs originate?

There are a number of businesses which are being carried out in the World and in fact, if one is aware of the Trademark Classification of Business one will find more than 1000+ types of business and hence having a good Trademark Lawyer always help to identify the relevant class for your brand registration. Some […]...

Read More

Covid 19 a New Deal for reviving Indian Economy

In a pre Covid-19, our economy was not reflecting any encouraging position.  The growth rate was around 4.3% and the government has little leeway to provide large stimulus.  Now, the Covid-19 pandemic and consequent lock down has totally changed economic equations and life style of the public.  Public health, personal hygiene and safet...

Read More

Refund- Export of Goods with payment of Tax (GST)

Sections 54 to 58 of GST Act’ 2017 deals with refund provisions. For the purposes of this section 'refund' includes refund of tax on goods and/or services exported out of India or on inputs or input services used in the goods and/or services which are exported out of India, or refund of tax on the supply of goods regarded as deemed expo...

Read More

ICAI members may communicate with Retiring Auditor vide E-mail

ICAI issued a press release on 01st May 2020 and decided that  Due to the existing constraint of communication,  members may communicate with the Retiring Auditor vide E-mail, provided an acknowledgement of such communication is received from the Retiring Auditor’s E-mail address registered with the Institute or his last known officia...

Read More

ICAI & ICAI RVO issues Concept Paper on All About Fair Value

Financial reporting in India has undergone a significant transformation owing to the adoption of Indian Accounting Standards (Ind AS) and fair value is the guiding principle in financial reporting across the globe. The Institute of Chartered Accountants of India (ICAI) converged accounting standards with IFRSs and accordingly, the financi...

Read More

24 Key Highlights of Extension of Lockdown in India dated 01.05.2020

1. Lockdown will continue in India’s metropolitan cities like Mumbai, Delhi, Chennai, Kolkata, Hyderabad, Bengaluru and Ahmedabad even after the government relaxes restrictions from May 4. The latest list released by the Union Health Ministry shows that all these cities fall under the red zone—areas with a large number of cases. 2. Th...

Read More

Draft Guidance Note on Applicability of AS 25 & Measurement of Income Tax Expense for Interim Financial Results

Draft Guidance Note on Applicability of AS 25 & Measurement of Income Tax Expense for Interim Financial Results deals with whether Accounting Standard (AS) 25, Interim Financial Reporting, is applicable to interim financial results presented by an enterprise pursuant to the requirements of a statute/ regulator, for example, quarterly fina...

Read More

5 Actions Industry should take to prepare for new changes in GST Refund

Refunds on Payment of Duty : Cir 22/2020 dt 21st April 2020 1. Numerous Shipping Bills having invoice mismatches between the GST returns data and the customs data are presented along with the Shipping Bills 2. Above mismatches have resulted in SB005 error. This error results in blocking of the IGST refund disbursal on payment […]...

Read More

ICAI postpones CA Examinations, May 2020

Chartered Accountant Examinations scheduled from 19th June 2020 to 4th July, 2020* stand rescheduled and the said examinations shall now be held from 29th July 2020 to 16th August, 2020 as per details given below....

Read More

Expert panel formed to address statutory bank branch audits queries

Auditing and Assurance Standards Board – Online Panel of Experts for Addressing Bank Branch Audit Related Queries for Financial Year 2019-20 – (02-05-2020) AUDITING AND ASSURANCE STANDARDS BOARD CONSTITUTES ONLINE PANEL OF EXPERTS FOR ADDRESSING BANK BRANCH AUDIT RELATED QUERIES FOR THE FINANCIAL YEAR 2019-20 Dear Members, The ban...

Read More

Dividends – No Longer Tax Exempt? under the Income Tax Act, 1961

Section 115-O of the Act, provides that, in addition to the income tax chargeable in respect of the total income of a domestic company, any amount declared, distributed or paid by way of dividends shall be charged to additional income tax @15%* (plus applicable surcharge and health & cess)...

Read More

Draft Guidance Note on Accounting by E-commerce & Cloud Computing Companies

This Guidance Note deals with accounting by e-commerce and cloud-computing companies in respect of certain issues relating to revenue and expense recognition. Some of the accounting issues in e-commerce and cloud-computing companies have arisen due to the new business models being used in such Some accounting issues, such as those relati...

Read More

GST on Individual Advocates including Senior Advocates and Firm of Advocates

Advocates has privilege of not to pay GST on their output supply, while the taxes on their supplies has to be paid by recipient under Reverse Charge Mechanism (RCM). In this write up, I made a try to answer the questions related to GST on Advocate Services. ...

Read More

Search Posts by Date

December 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031