"09 May 2020" Archive

Aspects of Valuation Under GST

Every  taxable person is liable to pay GST on supply of goods or services or both  on the value to be determined as per section 15 of the CGST Act, 2017. GST Law has adopted the concept of Transaction Value on which tax is payable by the taxable person....

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GST Due Dates Extended – Summarized

The spread of Novel Corona Virus (COVID- 19) has caused immense loss to the lives of people and resultantly impacted the trade and industry. In view of the emergent situation and challenges faced by taxpayers in meeting the compliance requirements under various provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referr...

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Demystifying the Subject of ITC on Construction and Works Contract Services

The Article below summarizes the subject of admissibility of input tax credit in respect of works contract and construction services in the light of the provisions of the CGST Act and the related judicial pronouncements....

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Whether Block credit provision applicable on Free Samples?

The negative list of items on which Input tax credit (ITC) is not available, have been coded under Section 17(5) of the CGST Act. Section 17(5) deals with blocked credit in GST. It enlists various circumstances under which the Input Tax Credit shall not be allowed to the Recipient irrespective of provisions mentioned in Section 16(1) & 18...

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Concept of TCS under GST | Section 52 of CGST Act, 2017

TCS [TAX COLLECTION AT SOURCE] {Section 52 of CGST Act, 2017} Objective behind introduction of TCS: – refers to the Tax which is collected by the Electronic Commerce Operator when a supplier supplies some goods or services through its portal and the payment for that supply is collected by the Electronic Commerce Operator (ECO). Sect...

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Formation and Role of GST Council

The article focused on Formation of GST Council and its Role. It is summarized in such a way that a lay man can also easily understand it. Formation of GST Council:- ♦ Article 279A talks about GST Council ♦ GST Council came into force on 12th September, 2016 ♦ President constituted the GST Council on […]...

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Attachment of bank account by GST Authorities- Important Judgments

RCI Industries & Technologies Ltd. Vs Directorate General of GST Intelligence (Punjab & Haryana High Court)

Extract of Section 82 and 83 of CGST Act, 2017 Tax to be First Charge on Property  82. Notwithstanding anything to the contrary contained in any law for the time being in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, any amount payable by a taxable person or any other person […]...

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Overview of 25 amendments to Income Tax Act, 1961 Vide Finance Act, 2020

To give effect to the financial proposals for the FY 2020-2021, the Government of India has amended inter alia the Income-tax Act, 1961 (Act) vide the Finance Act, 2020 published in the Gazette of India on 27 March 2020. In this edition, we hereby bring to you certain specific amendments to the Act, together with […]...

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Tax Planning: Buy-back or Dividend

Finance Act 2020 has made significant changes in the way dividend was taxed in India, up to the Financial year 2019-20 dividend was liable to be taxed at the time of distribution by the company u/s 115-O @ 20.56% (effective rate). Dividend income in the hands of the shareholders was exempt, except for resident individual […]...

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Decoding the End of Perpetuity Regime for NGOs, Charitable Trusts etc.

The Finance Act 2020 has brought in some dynamic changes in respect of the exempted Trusts, Societies, NGOs, Charitable Trusts, Section 8 Companies including educational, medical and/or religious institutions complying with the certain rules of registration under the Income Tax Act, 1961 (the Act). The registrations were perpetuity in nat...

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Taxability of PF paid by government, due to COVID-19

As we are all aware that in this hard times of COVID-19 pandemic, government of India has provided various relief to the people and one such benefit includes paying 24% (12% of employer and 12% of employee) share of PF. This benefit is not extended to every establishment, but to the ones having the count […]...

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Accounting and Tax Treatment of ESOP

♦ Basic & Accounting Treatment of ESOP : What is ESOP: ESOPs, ‘Employees Stock Ownership Plans’ or “Employees Stock Options Plans” is the generic term for a basket of instruments and incentive schemes provided to the employees of the company. A Stock Option is a right but not an obligation granted to an emplo...

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Income Distributed to Unit Holders – Now Taxable!

Article explains about Income Tax on Income distributed to Unit Holders by Mutual Funds (Detailed analysis with amendments made by Finance Act, 2020 and with illustrations on pre and post budget 2020 changes). India has plethora of investment instruments which are available, for an investor, to park his idle funds. At times, it becomes re...

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Unraveling the Complexities of Unabsorbed Depreciation in a World of Mergers

Unabsorbed depreciation is the excess amount of unaccounted depreciation that cannot be adjusted in the current year due to lack of profits in the profit and loss account. This unabsorbed amount can be set-off against other heads of income and is carried forward for adjustments in the forthcoming years. It can be carried forward perpetual...

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Taxability of Income of Professionals under Income Tax Law

According to section 29, the profits and gains of a profession are to be computed in accordance with the provisions contained in sections 30 to 43 D. It must, however, be remembered that in addition to the specific allowances and deductions stated in sections 30 to 36, the Act further permits allowance of items of […]...

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Carry forward & set off of Business Losses other than Speculation Loss

Having profit and loss in the business are two sides of a coin. Of course, losses are hard to digest. However, the Income Tax law in India does provide taxpayers with some sort of benefits of incurring losses too. Under the Income-tax Act, the Income is taxable under the five different heads: -Income from salaries […]...

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Summary of Direct Tax Vivad Se Vishwas Act, 2020

Article summarises Provisions of Direct Tax Vivad Se Vishwas Act, 2020 and contains/Explains  Introduction to Direct Tax Vivad Se Vishwas Scheme, Who Are Eligible To Avail Direct Tax Vivad Se Vishwas Scheme, Quantification Of The Disputed Tax,  Computation Of The Amount Payable Under Direct Tax Vivad Se Vishwas Scheme, Procedure For Fil...

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Confusion on section 194J TDS for Technical Service- Finance Act 2020

Finance Act 2020 – TDS under section 194J FA 2020 has introduced lower rate of deduction @ 2% instead of 10%, under section 194J, if the service is in the nature of: 1. Technical service; or 2. Royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films For the part of […]...

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Defect Free Filing of Return – Things to keep in mind while filing ITR

If you want to file your ITR defect-free then you need to avoid following Common mistakes which many users do. 1. Selection of the wrong ITR: While filing ITR, if you select ITR form which is not appropriate in your case, you may miss reporting entire/partial information to the Income-tax department. In such a case […]...

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Covid-19 Impact On Taxation, Relaxations By Government

Covid-19 Impact On Taxation, Relaxations By Government And Some Measures Which Need To Be Taken! The outbreak of COVID-19 across the globe has been unprecedented, with major economies announcing regulatory relaxations amidst lockdowns. Following the suit, Finance Minister (FM), Ms. Nirmala Sitharaman announced certain relief measures on 2...

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CBDT clarification on Residential Status & open issues of International Taxation

In India, the status of tax residency of an individual is determined based on his number of days of stay in India during a financial year. Every year, various Non-Resident Individuals (‘NRI’) visit India to manage their family affairs/investment in India. Such individuals plan their stay in India in a manner that they remain non-resid...

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Advance Tax & Interest under section 234A, 234B & 234C

Payment of advance tax is governed by sec. 207,208,209,210 and 211 of the Income Tax Act 1961. f the Income Tax Liability of any assessee is more than Rs. 10,000 in a financial year, then he is liable to pay such tax in installments during the year itself rather than paying this tax at the end of the year....

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Capital Gain on Sale of Agricultural Land – Case Studies

1. What is the test that determines land is agricultural land? The Gujrat HC in CIT v Siddhartha J. Desai 139 ITR 628 (Guj)(1983) has laid down the following tests for determining whether the land is agricultural or not: a) Whether, the land was classified in the revenue records as agricultural and whether it was subjected […]...

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NRI – NRO NRE Account difference, Filing Income Tax Return Investment and Currency Risk

A person of Indian origin (PIO) is a person of Indian origin or ancestry who was or whose ancestors were born in India or nations with Indian ancestry but is not a citizen of India and is the citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country. ...

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Late Fees under Section 234E – Different Point of View

Of late this month we must have received lot of demands from CPC seeking demand for non remittance of 234E FEES (not Tax). 234E will not apply to cases where TDS payment is made beyond the time limit prescribed for payment of TDS u/s 200(3) ...

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POSH ACT- Intent – Impact – Assessment With FAQ’s

The protection against sexual harassment and right to work with dignity are universally recognised human rights by international convention i.e Convention on Elimination of all forms of Discrimination against Women (CEDAW)....

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Types of Companies under Companies Act, 2013

The article aims to elaborate each type of Company as governed under Companies Act, 2013 (CA, 2013). The Act provides for types of companies that can be promoted and registered under the Act....

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Independent Director under Companies Act, 2013 in India

As per Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014, the following classes of companies shall have at least 2 directors as independent directors:- (i) the Public Companies having paid up share capital of ten crore rupees or more; or (ii) the Public Companies having turnover of one hundred crore ru...

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Conduct of EGM during Lockdown

Extra-Ordinary General Meeting(s) (EGM’S) wherever unavoidable may be held through Video Conferencing (VC) or other Audio Visual Means (OAVM)- MCA Circular No. 14/2020 dated 08.04.2020 and Circular No. 17/2020 dated 13.04.2020 Vide this circular Companies are allowed to take all decisions of urgent nature requiring approval of members, ...

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AGM of Company & Related Temporary relaxations during Global Pandemic

Annual General Meeting of the Company & Related Temporary relaxations during the Global Pandemic On 05.05.2020, the Ministry of Corporate Affairs (MCA) has given a clarification vide circular n0. 18/2020 giving relaxation for holding through Video Conferencing or other Audio Visual Means (OAVM). The article below provides a detai...

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CARO 2020 – A Student’s Exam Wise Approach

This article is specifically written for the students who have to appear for the professional examinations in the coming years. Immediately, after the announcement of inclusion of this topic by professional bodies i.e. ICAI/ICSI/ICMAI in their syllabus, a particular section of students (those who prefer self-study) will start searching fo...

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Independent Directors- Applicability, Meeting, Disclosures

Section 149 of Companies Act 2013 deals with Appointment and Qualification of Directors. Same Section also contains Provisions related to Appointment of Independent Directors. 1. Applicability of Independent Directors (“IDs”): All Listed Companies All Public Companies having a. Turnover is Rs. 100 cr or more b. Aggregate Outstanding l...

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Appointment and Resignation of Director under Companies Act, 2013

Appointment (Section 152) and Resignation of Director (168) under Companies Act, 2013 Appointment of Director: Section 152, Companies Act, 2013 Directors in a Company are responsible for the management of their companies, and board play an important role in governance, setting strategic direction of the companies. A director is a person w...

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Guideline on restarting manufacturing industries after lockdown period

No. 1-137/2020-Mit II (09/05/2020)

Union Ministry of Home Affairs (MHA), has issued detailed guidelines under the Disaster Management Act, 2005, on restarting manufacturing industries after the lockdown period....

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The Code on Social Security, 2019

Currently there are over 40 Labour Law Legislations that are in force in our country. The Government of India has embarked on a herculean task to amalgamate all of these labour law legislations into four Labour Codes. These Codes aims to simplify the labour law compliances which will in turn help these businesses to target their resources...

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Digital Health vis-à-vis Intellectual Property Rights

Digital Health may be said to include the apparatuses and services that use information and communication technologies (ICT) for the purposes related to health. These purposes widely include improving accuracy in diagnosis, monitoring chronic diseases meticulously and improving treatment processes for the patients....

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COVID-19-Boon or Curse !

The Covid-19 pandemic is going to change many things and create a new normal. Lifestyles will change, people will become more health conscious, masks and hand sanitizers will become part of routine life. What more is in store? As a citizen, one must evaluate the upcoming opportunities and challenges. It is said that that industry [&hellip...

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Compliance – Income tax Return Filing- Why and how to reply ?

The Mission of Our Income Tax Department is To promote Compliance with our direct tax laws, through caring taxpayer service and strict enforcement, and thus realize maximum resources for the Nation....

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Challenges and Drawbacks of Pre-Packaged deals in IBC

A pre-packaged scheme is an arrangement under which stressed company and the purchaser negotiate the sale of all or part of a company’s business or assets prior to the appointment of an insolvency professional as administrator. The completion of such a transaction is conditional on the scrutiny of details by the Insolvency professional ...

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Labour Laws Compliance and Audit in India

Over a period of time, the government has taken various legislative, administrative and e-governance initiatives in the field of labour laws to generate employment and to facilitate ease of doing business. Labour Law is the body of law which focuses on ensuring the protection of the rights of workers in India....

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Clarification on Regularization of Absence during COVID-19 Lockdown Period

Notification No. A.11014/1/2020-I (09/05/2020)

No.A.11014/1/2020-I Government of India Department of Space Bengaluru- 560094. May 09, 2020 Sr. Head P&GA, ISRO Headquarters, Bengaluru Sir, Subject: Clarification on regularization of absence during COVID-19 lockdown period- reg. Please refer ISRO HQ Note/letter No. HQ:ADMN:COVID:20 dated 20.04.2020 seeking clarification with regard ...

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Relaxations Under Various Laws Due To COVID 19

Under Income Tax 1. Last date for Income Tax returns for F.Y. 18-19 extended to 30th June, 2020 from 31st March 2020. 2. Aadhaar- PAN Linking date to be extended from 31st March 2020 to 30th June 2020. 3. Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing […]...

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Margin Trading – A Guide

Investors normally trade in securities using their own funds. Sometimes, based on the market conditions in stock exchange, they wish to trade beyond their owned resources. This type of trading in the securities is supported by the borrowing facility for funds and securities, in the system....

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Export of goods by a SEZ unit through merchant exporter – should be subjected to levy of GST? – An analysis

Export of goods by a SEZ unit through merchant exporter – should be subjected to levy of GST? – An analysis Supply of goods or services by a SEZ unit in the GST regime and determining whether the transaction is subject to levy of GST is always a complicated and tricky issue, which needs thorough […]...

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IBC 2016: Jurisdiction of NCLT While Adjudicating Resolution Plan

Shrawan Kumar Agrawal Consortium Vs. Rituraj Steel Private Limited (NCLAT Delhi)

In this article we will be discussing the aforesaid Question, as well as whether NCLT can intervene the commercial wisdom and decision of CoC. We will be discussing various judgments of NCLAT and Supreme Court of India which would be relevant for shedding some light on the aforesaid questions....

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Circular in Respect of Residential Status for AY 2020-21

Circular No.11 2020 - Income Tax

Income Tax Circular No. 11 of 2020 Dated  May 8, 2020 in Respect of Residential Status for Assessment Year (AY) 2020-21 Section 6 of the Income Tax Act deals with the Residential Status. An individual is said to be resident in India in any previous year, if he (a) is in India in previous year […]...

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How to Identify that Contract Contains Lease Element as per Ind As 116

At the inception of a contract, an entity shall assess whether the contract is, or contain lease element. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration along with other conditions to be satisfied. […]...

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Deferment for Approval/ Registration of Charitable Trusts & Exempt Institutions

Deferrement of Procedure for Approval/ Registration/Notifications of certain entities U/s 10(23C), 12AA, 35 & 80G of Income Tax Act, 1961 till 01st October,2020 The Finance Act, 2020 has introduced certain new compliance burdens on Charitable Trusts and Exempt Institutions. The Budget 2020 has amended certain provisions of the Inc...

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Private Security Agencies Regulation Act (PSARA) License

Private Security Agencies Regulation Act, 2005 (PSARA) regulates the Private Security Industry in India. This Act regulates functioning of the private security agencies through Controlling Authorities which are appointed by State Governments. The Ministry of Home Affairs administers this Act. Separate Rules are made by respective States u...

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Impact of Corona on World Economy

The corona virus , which was first detected in China, has infected people all around the world. Its spread has left effect on businesses around the world counting the costs. In this article we understand the corona effect on the world economy. 1. Globally Hit Share Market Shifts in stock markets, where shares in companies […]...

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Note on Doctrine of Promissory Estoppel against Government

The true principle of promissory estoppel is where one party (Promisor) has by his words or conduct made to the other a clear and unequivocal promise which is intended to create legal relations or a legal relationship would arise in the future, knowing or intending that it would be acted upon by the other party (Promise) to whom the promi...

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Additional Grace Period For Life Insurance Policies Up to 31.05.2020

Ref: IRDAI/Life/Grace Period (09/05/2020)

As the lockdown has been further extended up to 17th May 2020, keeping in view the difficulty faced by some policyholders to renew the policies in time, the Authority has now allowed extended grace period up to 31st May 2020 for all policies where premium was due in the month of March 2020....

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HC limits Bank Account attachment to amount lying to the credit on the date of attachment

RCI Industries & Technologies Ltd. Vs Directorate General of GST Intelligence (Punjab & Haryana High Court)

The bank attachment would be limited to the amounts which were lying to the credit of the petitioner in CC A/c, at the time of freezing and any further credit which may come would not be under attachment....

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Opening of Liquor Shops over Temples- A Right Step

Today, when the fight with Corona Virus is getting intensified with every day, people are forced to be indoor amidst shutting of the shops, offices, manufacturing units and other place of working, the Government’s announcement permitting opening of Liquor Shop is a right step?...

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Cloud kitchens are future of eating-out industry?

Amidst Covid 19, Globally all the restaurants are shut, hotels are making home delivery of their patented and benchmark recipes. Food & Beverage Industry is forced to shift itself to another mode for survival and keeping pace in the current scenario. The pioneer hotels like The Taj Group of Hotels, Oberoi and The Park are constraint to de...

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Email mechanism to obtain e-Sign for easing Process of EPF Compliance

EPFO introduces email mechanism to obtain e-Sign for easing the Process of EPF Compliance by Employers during Lockdown Period as employers were finding difficult to use digital or Aadhaar based e-Sign...

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Gift is no exception to specific prohibition |Transfer of Property Act, 1882

The gift is no exception to specific prohibition provided under section 10 of the Act, Condition restraining alienation the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void,...

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Covid-19 situation & difficulties faced by CA fraternity- Appeal cum Suggestions to ICAI

I pen down this with very deep pain and sense of agony in my mind after receiving calls and hearing from various practicing CAs that, day by day the situation of the Corona virus pandemic is taking serious shape and this is making the economic condition of the small and medium practicing CAs more critical day by day....

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Secretarial Standard 1 – An Insight

Q 1. Why Secretarial Standard – 1 along with other Standards are formulated? Ans: This was to ensure that uniform practices are followed by the companies throughout the country and to bring more clarity and recommend good governance practices....

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A Precedent on Doctrine of Frustration, Force Majeure or Contingency appended to Contract

The Supreme Court of India in the matter of National Agricultural Co-opeartive Marketing Federation of India(NAFED) vs Alimenta SA Ci, put forth the grounds on which Section 32 (Contingent contract”) and Section 56 (Agreement to do impossible act) of the Indian Contract Act, 1872 may be invoked in the scenario of non-performance of obli...

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Section 80IB(10) deduction not eligible on Income not having Business Connection

Satern Griha Nirman Pvt. Limited Vs ITO (ITAT Kolkata)

Satern Griha Nirman Pvt. Limited Vs ITO (ITAT Kolkata) Facts of the Case: The assessee in the present case is a Company, which is engaged in the business of Builders and Property Developers. The return of income for the year under consideration was filed by it on 17.09.2011 declaring total income at ‘NIL’. During the […]...

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Concept of TDS under GST- Section 51

Section 51 of the CGST Act provides for deduction of tax at source under certain circumstances. This section also lists out the deductor’s who are mandated by the central Govt to deduct tax at source, the rate of tax deduction and the procedure for remittance of tax deducted....

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New Procedure for registration, approval U/s.10(23C), 12AA, 35 & 80G deferred

Release ID: 1622387 (09/05/2020)

CBDT has decided that the implementation of new procedure for approval/ registration/notification of certain entities shall be deferred to 1st October, 2020. Accordingly, the entities approved/ registered/ notified under section 10(23C), 12AA, 35 and 80G of the Income-tax Act, 1961 (the Act) would be required to file intimation within thr...

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