"06 May 2020" Archive

Delhi HC allows Form GSTR-3B rectification- Dept. cannot take benefit of its own wrong

Bharti Airtel Limited Vs Union of India & Ors. (Delhi High Court)

Delhi High Court held that the failure of the Government to operationalise the statutory returns, GSTR 2, 2A and 3 prescribed under the CGST Act, cannot prejudice the assessee. The GSTR 3B which was merely a summary return as an alternative did not have the statutory features of the returns prescribed under the Act....

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Allow all assessees to claim ITC in GST TRAN-1 by 30.6.2020: Delhi HC

Brand Equity Treaties Limited Vs Union Of India (Delhi High Court)

Rule 117 of CGST Rules is directory in nature, insofar as it prescribes the time-limit for transitioning of credit and therefore, the same would not result in the forfeiture of the rights, in case the credit is not availed within the period prescribed....

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24 Suggestive Reliefs-Indirect Tax & Direct Tax-During Covid 19

The world has been caught in a tornado named Covid 19 Corona Virus which has taken everyone by surprise…!! In my humble submission, I want to highlight few measures / reliefs which would be demanded and required to run the businesses smoothly in future. I am enlisting a quick reference points without going into detailed […]...

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Delhi HC allows GSTR 3B rectification

A landmark judgement pronounced in the Delhi High Court on 05th May 2020 in the case of  Bharti Airtel Ltd Vs. Union of India & Ors in Appeal W.P.(C) 6345/2018, CM APPL. 45505/2019. High Court allowed petitioner to rectify Form GSTR 3B for the period July 2017 to September 2017. Issue Covered: Rule 61(5), Form […]...

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CBIC clarifies on Issues related to IBC, GST ITC-04 & Supply to merchant exporter

Circular No. 138/08/2020-GST (06/05/2020)

IRP/RP are facing difficulty in obtaining registrations during the period of the lockdown and have requested to increase the time for obtaining registration from the present 30 days limit....

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Extension of Annual GST Return, Filing of GSTR 3B by EVC & other changes

On 5th of May 2020, CBIC has issued notifications to give effect to relaxation for verification of GSTR 3B through Electronic Verification Code (EVC) as well as filing NIL GSTR 3B through SMS. It has also extended the date for E-Way bills generated on or before 24th March and last date for filing of Annual […]...

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Implications of GST on Health Care Sector

Exempted Service:- Health Care Service (Entry No.74) Services by way of:- a. Health care services by a clinical establishment, an authorized medical practitioner or paramedics. b. Services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. Health Care Services (Sec.2 of CGST Act, 2017)...

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Section 45(5) – Compulsory Acquisition – Capital Gain

SECTION 45(5) – COMPULSORY ACQUISITION Compulsory Acquisition by the Central Government is always be a concern for many people as how it should be tax. Hence today I am writing this article to cover various aspects of this section in question answer form. 1. Do consideration received from Government against compulsory acquisition at...

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Place of Effective Management Establishments – Corporate Tax Residency

International Tax Perspective – Part II : Place of Effective Management (POEM) Establishments – Corporate Tax Residency Introduction Businesses are currently dealing with a multitude of issues as a result of the measures taken to stop the global spread of the COVID-19. One aspect that might not currently feature at the top of the list...

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Understanding basics of General Anti-Avoidance Rule (GAAR)

General Anti-Avoidance Rule (GAAR) is an anti-tax avoidance law in India to curb tax evasion and avoid tax leaks. It came into effect on 1st April 2017. The GAAR provisions come under the Income Tax Act, 1961. GAAR is a tool for checking aggressive tax planning especially that transaction or business arrangement which is/are entered into ...

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Section 50C provisions cannot be applied for section 69B addition

Gayatri Enterprise Vs ITO (Gujarat High Court)

Gayatri Enterprise Vs ITO (Gujarat High Court) Provisions of Section 50C of the Income Tax Act cannot be applied for the purpose of making addition under section 69B of the Act. We fail to understand why section 50C of the Act has been brought into play having regard to the facts of the present case. […]...

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Concept of HUF; Distinction between Co-parcener & member

Income Tax Act provides a special status to HUF under the Act and covers it in the definition of person u/s 2(31) of the Act. The Hindu Undivided Family (HUF) has not been defined under Income Tax Act, 1961, however, as per Hindu Law A Hindu Undivided Family (HUF) is ordinarily joint not only in estate but in food and worship. The members...

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Share Trading – Business income or Capital gain – Guiding principles

Most of the people in the industry got confused at the time of taxation of share trading. Whether to tax it under head of business income or as capital gains? Hence today I am covering this topic through my article hoping it will help you to clear your doubts. We faced some of the following […]...

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Reason for Mismatch of TDS & Correction Statement

Deductor related reasons : • Non filing of quarterly TDS statements • Omission to include details of challan in TDS statement • Quoting wrong CIN in challan details in the TDS statement • Entering wrong amount in challan details • Quoting of wrong TAN in the challan while remitting the TDS in the bank • Quoting of wrong minor ...

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Section 234E – Fees for Late filing of TDS Return

Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure co...

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FAQs on Vivad Se Vishwas – Questions Unanswered- Part II

PREAMBLE The Direct Tax Vivad se Vishwas Act, 2020 (DTVSV) received the assent of the Hon President of India on 17-3-2020. The CBDT had in Circular No 7/2020 dated 4-3-2020 clarified on 55 questions. The DTVSV Rules were announced on 18-3-2020 prescribing the forms and procedures and the website was developed and the portal was […]...

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Income Computation and Disclosure Standard (ICDS) and Relevance

TO INCOME TAX    Section 145(2), Central Govt. is empowered to notify ICDS for, applicable from A.Y 2017-18 – Class of Person – Class of Income Exception:- Individual or HUF who is not required to get his accounts audited under section 44AB are not required to comply this ICDS. Notified ICDS  AND Corresponding Accounting St...

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Deductions in respect of Profits and Gains from Housing Projects

Deductions in respect of Profits and Gains from Housing Projects (Section 80-IBA)- In order to provide impetus to affordable housing sector to achieve the larger objective of 'Housing for All', section 80-IBA has been inserted....

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Benami Transactions (Prohibition) Amendment Act, 2016- Brief Analysis

The Benami Transactions (Prohibition) Act, 1988 came into force on 19th day of May, 1988. It extends to the whole of India except the State of Jammu and Kashmir. The act was only in paper and was not implemented for the reason for which it was enacted. And due to operational difficulties, non-formation of rules and relation, the Act could...

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Why conversion of Public Limited Company should not be considered as Back Step

The following are the provisions of the Companies Act, 2013 which are either not applicable to Private Limited Companies or certain provisions of the Companies Act are applicable to such companies with exceptions, modification and adaptions....

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Due Dates of Forms under Companies Act, 2013, with effect to Lockdown

1. Form BEN-2: Form BEN-2 is the form where the beneficial owner who is required to declare a disclosure to the Registrar his interest in the shares of the company within thirty days of acquiring such beneficial interest in such a company. Section 90(4) of the Companies Act, 2013 mandates every company to file a declaration […]...

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Check out relaxation issued in conducting AGM of Shareholders

Relaxations in Conducting of Annual General Meeting (AGM) in the F.Y. 2020-2021. Circular No-20/2020 Dated- 5th May 2020 This Circular is passed for clarification of holding AGM through Video Conferencing (VC) or Other Audio Visual Means (OAVM). Link for the original Copy of the Circular is https://taxguru.in/company-law/mca-clarifies-ho...

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Post Company Incorporation/Annual Compliance Checklist

The Companies Act 2013 consolidates and amends the law relating to companies and leaves no room for any mistake. Every newly incorporated Company or a Company which has been incorporated in India need to ensure compliance with Companies Act, 2013. One who is unaware of law may not escape liability for violating the law. Thus […]...

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LLP Settlement Scheme, 2020 (Modified)

Good News for Defaulting LLPs by Central Government in the form of introduction of LLP Settlement Scheme, 2020 The Government of India through Ministry of Corporate Affairs (MCA) has taken several measures in the year 2020 to promote ease of doing business in India. One such measure is issuance of ‘LLP Settlement Scheme, 2020’...

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Key points in drafting Amalgamation Scheme | Companies Act 2013

Understanding the meaning of the term Amalgamation The term “Amalgamation” has not been defined under the Companies Act 2013. Basically, amalgamation is an external form of corporate reconstruction  where two or more companies combine with each other (Transferor Company) resulting into formation of a new entity (Transferee Company). ...

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FDI in E-commerce 

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It is not only a form of business but more a mode of earning of livelihood for tens of millions of people in the Country. India’s e-commerce market has witnessed a phenomenal growth […]...

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Classification under Central Excise Tariff needs to be made after perusing basic technical specifications of vehicles

Man Trucks India Pvt. Ltd. Vs CCE (CESTAT Delhi)

Man Trucks India Pvt. Ltd. Vs CCE (CESTAT Delhi) After perusing the catalogue of the vehicle, it is fairly obvious that such vehicles manufactured by the appellant are meant to carry loads and capable of off-loading but the same are not machines exclusively meant for off-road use. We have also perused the clarification obtained by [&helli...

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Dross and Skimming were nonferrous metal; Excise duty not payable

C.C.E. & S.T. Vs Hindalco Industries Limited (CESTAT Ahmedabad)

C.C.E. & S.T. Vs Hindalco Industries Limited (CESTAT Ahmedabad) Dross and Skimming were nonferrous metal for any such by-product or waste which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input or input service in terms [&h...

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Addendum to Guidance Note on Audit of Banks, 2020 Edition

Addendum to the Guidance Note on Audit of Banks, 2020 Edition with reference to RBI circular no.: RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 on COVID 19 – Regulatory Package The RBI issued a circular dated March 27, 2020 granting relief for borrowers as Covid-19 Regulatory package. The relief granted to b...

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Date of filing of bill of entry is not date of import

Radhe Exim Pvt. Ltd. Vs C.C. (CESTAT Ahmedabad)

Radhe Exim Pvt. Ltd. Vs C.C. (CESTAT Ahmedabad) From the plain reading of the definition of import it is clear that when the goods enter into territorial water of India that is the stage of completion of import into India and not the date of filling of Bill of Entry, therefore, if the appellant possess […]...

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Discount given for non-provision of certain service to foreign buyer not liable under BAS

MAN Trucks India Pvt. Ltd. Vs Commissioner, Central Excise, Customs & Service Tax (CESTAT Delhi)

MAN Trucks India Pvt. Ltd. Vs CCE (CESTAT Delhi) In a case where the assessee had exported goods to sister concern who in turn had sold them to buyers there, with the foreign importer being responsible for providing after sales services, CESTAT Delhi has held that the discount given in consideration for non-provision of warranty […...

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Startup India Scheme- Objectives, Benefits, Eligibility, Registration

We the youngest generation of India, always wants to do something new, something unique but due to lack of knowledge we don’t know how to get recognition of our work. Somewhere we heard about Start- UP India programme, but most of us do not know about it. So, I’ll let you help in understand about […]...

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Trademark Registration process in detail

TRADEMARK REGISTRATION A trademark is a non-identical symbol, word(s) used to represent a business or its products. It’s a type of intellectual property combination of recognizable sign, logo, word, or words which defines or expresses the business or products and legally differentiates from all other products of its kind. In accordance ...

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7 FAQ’s on EPF ECR Filing & Payment of Contributions

Employees' Provident Fund Organization, India Ministry of Labour & Employment, Government of India has issued 'Frequently Asked Questions: ECR Filing And Payment Of Contributions' dated 03rd May, 2020. ...

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Important Clarifications – MEIS & SEIS!!!

Wherein many clarifications raised by the stakeholders was clarified pertaining to the FTP Schemes such as MEIS & SEIS in the current Instruction issued. All the inputs received so far from DGFT are listed below in detail along with writer's view....

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Whether India is first choice of companies moving out of China?

We all are reading various media reports with catchy headlines like 'Companies are moving out china and India will be seizing this opportunity.'  Or '200+US companies are seeking to move manufacturing out of China'. And it makes us happy that India will be the ultimate beneficiary of this covid19 pandemic....

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Challenging The Impact of Covid 19 on Economy

Amidst the prevailing holocaust caused by the devastating effect of the Corona Virus spread globally, yet another impending threat of recession is looming large over the entire world affecting the world economy which if not treated effectively is going to impact the lives of the people. The world has faced the problems of recession from [...

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Covid 19 & Indian Economy – A Complicated Relationship

When I am writing this article India has approx. 38,000 cases out of which 10,000 recovered. India has also conducted 9.76 Lakhs test as of now i.e. 708 per 1 million population. Migrant workers are moving to their hometowns and some of them have tested positive for Covid-19 in various states....

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Revised FAQs on UDIN for Statutory Bank / Tax Audit | LFAR | Certificates

Q.1 While conducting Bank Audit, whether separate UDINs are required to be generated for LFAR, Tax Audit, Statutory Audit Report etc.? Ans: No, since UDIN has to be generated per Assignment per Signatory on a given date, so one UDIN will suffice for the Bank Audit Report including LFAR and Certificates. However, separate UDIN will [&helli...

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Clarification with respect to submission of PSIC

Trade Notices No. 09/2020-2021

Customs Authorities may take scanned copy of the PSIC document submitted by the importers for clearance without asking for the physical copy. The original physical copy of the PSIC needs to be submitted to Customs within 60 days of the clearance....

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Amendment in Export Policy of Sanitizers

Notification No. 04/2015-2020-DGFT (06/05/2020)

The Notification No. 53 dated 24.03.2020 is amended to the extent that only Alcohol based Hand Sanitizers falling under any ITCHS Code including the HS Codes mentioned above, are prohibited for export. All other items falling under the above HS Codes are freely exportable....

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COVID19 Regulatory Package – Asset Classification & Provisioning Clarification

VV.BP.No. 8124/21.04.048/2019-20 (06/05/2020)

We advise that as per the circular dated April 17, 2020 on asset classification and provisioning, in respect of all accounts classified as standard as on February 29, 2020, even if overdue, the moratorium period, wherever granted, shall be excluded by the lending institutions from the number of days past-due for the purpose of asset class...

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Sale in transit – No concept of constructive delivery

There is no concept of constructive delivery either express or implied in section 3 of Central Sales Tax Act”. Hence, benefit cannot be denied under section 6(2) of the Central Sales Tax basis departmental circulars...

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COVID-19 Impact on Insolvency Laws in India

Introduction The spread of Pandemic COVID-19 all around the globe has created a situation of hue and cry in different parts of the globe. The Pandemic COVID-19 has affected almost 22 Lakhs people and has caused death of almost 1.5 Lakhs of people all over the globe. In order to contain the pandemic COVID-19 in […]...

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Covid 19- SC extends limitation prescribed under Arbitration & NI Act

In re Cognizance for Extension of Limitation (Supreme Court)

It  is hereby ordered that all periods of limitation  prescribed  under  the  Arbitration  and  Conciliation  Act, 1996 and under section 138 of the Negotiable Instruments Act 1881 shall  be  extended  with  effect  from  15.03.2020  till  further  orders to be passed by this Court in the present proceedings....

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Psyllium Husk Powder falls under HSN 12119032: AAR

In re Sarda Bio Polymers Pvt. Ltd. (GST AAR Rajasthan)

In re Sarda Bio Polymers Pvt. Ltd. (GST AAR Rajasthan) The applicant is engaged in manufacture of Psyllium Husk Powder in Pali having GST registration number 08AARCS9529A1ZZ. The applicant intends to seek clarification on the classification and rate of GST applicable on the Psyllium Husk Powder. AAR held that Psyllium Husk Powder, a prepa...

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Mehendi /Henna powder falls under Chapter 33; Attracts 18% GST

In re Sunil Kumar Gehlot (Sunil Kumar & Co.) (GST AAR Rajasthan)

In re Sunil Kumar Gehlot (Sunil Kumar & Co.) (GST AAR Rajasthan) The applicant is engaged in manufacture of hair dye powder in Sojat city. The applicant intends to manufacture mehandi/henna powder in future and so wish to seek clarification on the classification and rate of GST applicable on the mehandi/henna powder. AAR held that [&h...

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CBIC notifies Rate of Exchange of Foreign Currencies wef 07.05.2020

Notification No. 41/2020-Customs (N.T.) (06/05/2020)

CBIC notifies Rate of Exchange of Foreign Currencies against India Rupees wef 07.05.2020 vide Notification No. 41/2020-Customs (N.T.), Dated: 6th May, 2020. GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No. 41/2020-Customs (N.T.) New Delhi, dated the 6th Ma...

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Real Estate Services – ITC Reversal

GST  structure on Real Estate Services relating to residential  and commercial apartments has drastically changed w.e.f. 01.04.2019. The nature of Real Estate services is different from normal supply of services . For example , A builder intend to construct a complex or building and sale it to a buyer. It  is a supply  as per [&hellip...

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SEBI Relaxations relating to Rights Issue procedural matters

SEBI/HO/CFD/DIL2/CIR/P/2020/78 (06/05/2020)

Securities and Exchange Broad of India CIRCULAR SEBI/HO/CFD/DIL2/CIR/P/2020/78 May 06, 2020 To All Registered Merchant Bankers All Recognized Stock Exchanges All Registered Registrars to an Issue All Self Certified Syndicate Banks All listed entities All entities who propose to list specified securities Dear Sir/Madam, Sub: Relaxations re...

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Procedure for Amendment of Mutual Agreement Procedure notified

Notification No. 23/20020-Income Tax [G.S.R. 282(E)] (06/05/2020)

​Amendment of Mutual Agreement Procedure (MAP) procedure laid down in the Income-tax Rules, 1962 CBDT amends Rule 44G and Form 34F- Application to give effect to DTAA MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 23/20020-Income Tax New Delhi, the 6th May, 2020 G.S.R. 282(E).—In exercise ...

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November 2020