"17 May 2020" Archive

Place of Supply of Goods under GST

The Place of supply of Goods is important to decide whether to charge CGST & SGST/UGST or IGST for a particular transaction. If a transaction falls under intra state supply then it attracts CGST & SGST/UGST and if a transaction falls under interstate supply it attracts IGST....

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Concession in Interest Cost -Whether Linked with Filing of GSTR-3B?

1. Notification No. 31/2020 – Central Tax dt. 03.04.2020 has been issued providing for relief in terms of interest due to COVID – 19 for the tax periods from February 2020 to April 2020. Relief in a nutshell is as under: Registered Person having Aggregate Turnover of the previous FY Period If the tax is […]...

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Section 115BBE- Bleak line between Righteousness & Injustice

Recent amendments in section 115BBE emerge from the seesaw battle between the government and the assessees who leaves no stone unturned to evade taxes and between these skirmishes the honest taxpayer is often overripen in this heat of revenge. The provisions of sec 115BBE of the Act are draconian at first glance and can give nightmares to...

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No addition for suppressed receipts in case AO failed to consider revised return of income

IDBI Capital Markets & Securities Ltd. Vs DCIT (ITAT Mumbai)

Since AO had not considered revised return of income which was filed within prescribed period of limitation for the difference between income disclosed in return and total receipts as per Form 26AS, therefore, the matter was remanded back to AO with direction to verify the fact and grant relief to assessee in accordance with law....

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Depreciation on golf course- Plant & Machinery or Land & Building

Landbase India Ltd. Vs. ACIT (ITAT Delhi)

Landbase India Ltd. Vs. ACIT (ITAT Delhi) Depreciation on the golf course – Whether depreciation should be allowed considering it as ‘plant and machinery or land or building. Matter: 1. Applicable Rate of Depreciation on Gulf course.  Facts of the case 2. The Assessee is a company engaged in the business of operation of golf [&he...

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Covid 19 office Rules and life lessons

Amid Coronavirus pandemic a big challenge is to start offices companies shops God has just given us new life and this life is full of opportunities and challenges. Everyone needs to positive and calm in these situation and search the good opportunities in this pandemic. This is a chance to change our lifestyle too and […]...

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26 key highlights of Press Conference of FM held on 17th May 2020

26 key highlights of Nirmala Sitharaman Press Conference held on 17 May 2020- Atmanirbhar Bharat As a nation, we stand at a very crucial juncture. Such a big disaster is a signal for India, it has brought a message and opportunity Debt due to COVID excluded from default On matters concerning the Insolvency and Bankruptcy […]...

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Analysis of Article 279A- Goods and Services Tax Council

Article 279A of the constitution empowers the president to constitute a joint forum of the central and states namely, Goods and Services Tax Council. Goods and Services Tax Council is a constitutional body for making recommendations to the union and state government on issues related to Goods and Service Tax. The provisions relating to GS...

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GST Series Part 3 | Composite Supply & Mixed Supply | Section 8 | CGST Act 2017

1. The taxable event under GST is supply of goods or services or both. The GST rates for goods and services are separately notified by GST Council. A supplier may engage in supplying combination of goods and services simultaneously. Each individual component in a given supply may attract different rate of tax. The rate of […]...

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Income Tax E-Proceedings | An Aurora of New Era (Part-II)

In this Article we would be discussing on the Applicability and Structure of Income Tax E-assessment; Key features of scheme and some key points to think upon....

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Key Highlights of FM Speech 17.05.2020

Key Highlights of FM Speech 17.05.2020 on major Law Reforms, EODB, Health, Public Sectors- (Self-Reliant India Movement -V)  Overview of last four Tranches: The first tranche included measures for small businesses, the second aimed at helping migrant workers and the third aimed at Agriculture, Farmers and Workers and the Fourth aimed at ...

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FM announces Govt Reforms & Enablers across Seven Sectors

Release ID: 1624661 (17/05/2020)

♦ Rs 40,000 crore  increase in allocation for MGNREGS to provide employment boost. ♦ Increased investments in Public Health and other health reforms to prepare India for future pandemics.♦ Technology Driven Education with Equity post-COVID. ♦ Further enhancement of Ease of Doing Business through IBC related measures....

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Bailing out of Discoms with liquidity infusion? Is it as simple as it looks?

On 13th April, the Centre as a part of providing stimulus to the ailing Indian economy had announced series of measures. One of them being infusion of Rs 90,000 crore in ailing Electricity Distribution companies to help them repay their dues to the Generation companies. The step seems in the right indirection indeed, but there […]...

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Impact of reduction in TDS/TCS Rate

As we all know that the government has recently decreased tax deduction at source (TDS) and tax collection at source (TCS) rates for interest, dividend, professionals, rent payments and other non-salaried payments by 25 per cent with effect from May 14, 2020 for the current financial year. The tax deduction at source (TDS) and tax [&helli...

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Internal Audit of Manpower Supply Contract

Manpower is the one of the most important factor to run any industry. Every sector whether it is manufacturing or servicing needs manpower for its smooth functioning. The Organisation hires contractual workers for its different functions like security services, construction work etc. In this article, we will discuss how an auditor should ...

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Interpretation of Statute- A Brief Analysis

General Clauses Act to be referred in case of Doubt in the Statutory Provision In all the Acts and Regulations, made either by the Parliament or Legislature, the words and phrases as defined in the General Clauses Act and the principles of interpretation laid down in General Clauses Act are to be necessarily kept in view....

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Provisional Attachment of Any Property/ Bank Account under GST

Legal Provisions SECTION 83. Provisional attachment to protect revenue in certain cases. (1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government […]...

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GST on sub-contract of landscape development & maintenance of garden work for Govt dept

In re Nurserymen Cooperative Society Ltd (GST AAAR Karnataka)

In re M/s. Nurserymen Cooperative Society Ltd (GST AAAR Karnataka) Appellant has received contract from Government departments like BBMP and KSRTC for undertaking gardening and landscaping activities. In order to execute the work, the Appellant has engaged sub-contractors. The sub-contractors bill the Appellant for the gardening and lands...

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GST on development of land and sale of plots

In re M/s Maarq Spaces Private Limited (GST AAAR Karnataka)

In the instant case there are two activities involved, viz: development of land and sale of plots. The transaction relating to the sale of land is not a supply of either goods or service under GST (entry 5 of Schedule III of the CGST Act refers)....

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Depositing timber with GTD for disposal amounts to supply: AAAR

In re Tata Coffee Limited (GST AAAR Karnataka)

In re Tata Coffee Limited (GST AAAR Karnataka) Wooden supply to Government Auction Department is supply as agent In this case the Depots are set up by the State Government in terms of Section 104-A(5) of the Karnataka Forest Act for the purchase and sale of timber since the Act mandates that timber can only […]...

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ITC under GST available on detachable wooden flooring & stackable glass partitions

In re WeWork India Management Private Limited (GST AAAR Karnataka)

Input tax credit can be availed by the Appellant on the detachable sliding and stackable glass partitions which is movable in nature. Procurement of detachable sliding and stackable glass partitions will be eligible for input tax credit and will not be hit by the provisions of Section 17(5)(d) of the CGST Act....

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GST on renting of 2 BHK unit and dormitory

In re Acharya Shree Mahashraman Chaturmas Pravas Vyvastha Samiti Trust (GST AAAR Karnataka)

In re Acharya Shree Mahashraman Chaturmas Pravas Vyvastha Samiti Trust (GST AAAR Karnataka) In the instant case, the Appellant had erected temporary accommodations at Kumbalagodu Village, Mysore Road, KengeriHobli, Bangalore North Taluk where the religious event was conducted. We find that the Appellant is not renting out ‘roomsR...

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Hotel & Restaurants allowed to pay Annual Licence Price by 01.06.2020

Hotel and Restaurant Association Western India and ors. Vs The Commissioner, State Excise, Maharashtra and ors. (Bombay High Court)

he members of the petitioner Association may not be an exception. Since the Government has graciously permitted the license holders to pay the license fees at pre-revised rate, on account of exigency of the situation, an extension of time till 1st June, 2020 to pay the license fees at pre-revised rates in terms of the Circular dated 13th ...

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Effective Implementation of RERA can Restore Trust Between Buyer & Seller

Primary Aim is to Address Concerns of Homebuyers to Ensure Completion of Projects: Durga Shanker Mishra More Than 52,000 Real Estate Projects &40,517 Real Estate Agents Registered Under RERA RERA Day Organized...

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Stroke of China In Corona

As the the whole world is scared of corona and its impact is also clear on the economies of all the countries. as all the countries and their economies are struggling with the COVID19. The stock market of all the countries almost in a worst situation crashing down and a downfall in the companies share […]...

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Lockdown 4.0 | Lockdown Extended till 31st May 2020

Orders No. No. 40-3/2020-DM-I(A) (17/05/2020)

No. 40-3/2020-DM-I(A) Government of India Ministry of Home Affairs North Block, New Delhi-110001 Dated 17th May, 2020 ORDER Whereas, the National Disaster Management Authority (NDMA) in exercise of their powers under section 6(2)(i) of the Disaster Management Act. 2005, vide their Orders dated 24.03.2020, 14.04.2020 and 01.05.2020 had dir...

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Traditional Business: Are we not personally responsible for decline in Business?

Kalipeeli Taxi, the most traditional and long-running Taxi service in Mumbai got all that they could have to ensure their business is not ruined and they also had Union formed. There was a time that these Taxis always took their customer granted and their meter cheating was almost a headache. There is no doubt that […]...

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No Section 40(a)(iib) disallowance for surcharge on Sales Tax & Turnover Tax

Kerala State Beverages (Manufactoring And Marketing) Corporation Limited Vs ACIT (Kerala High Court)

Kerala State Beverages (Manufactoring And Marketing) Corporation Limited Vs ACIT (Kerala High Court) Conclusion: Surcharge on sales tax and turnover tax was not a ‘fee or charge’ coming within the scope of Section 40 (a) (iib) and was not an amount which could be disallowed under the said provision. Therefore the disallowance ...

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Know Your Customers/Clients to Ensures Business Growth

The term KYC (Know Your Customer) was first coined in the United States. The importance of KYC today is very much well known but still the MSME/Business entities are not giving relevant importance to KYC. The importance of why having KYC in your business system was aptly said by Dr Subir Gokarn, Deputy Governor, Reserve […]...

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No section 68 addition as AO not disputed vortex of evidences furnished by assessee

Karuna Garg Vs ITO (ITAT Delhi)

Since neither AO conducted any enquiry nor had brought any clinching evidences to disprove the evidences produced by assessee and assessee had furnished all details including bank statement, share brokers note, ledger account copies, share certificates, in support of purchase and sale of shares and mode of payment and receipts of proceeds...

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Micro Small & Medium Enterprises in India

The term MSME is often used to abbreviate Micro Small & Medium Enterprises; these are small sized enterprises operating in Manufacturing and Service sector. The category of these enterprises are determined considering the amount of Investment made in plant, machinery or equipments (the criteria is now proposed to be revised considerin...

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Flow Chart of Disciplinary procedure followed by ICAI

Following is the Disciplinary procedure followed in respect of the members of the ICAI: The above flow chart is a representation of various situations for Disciplinary actions that may be taken by the board / committee....

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Key Consideration for Assessing Going Concern Assumption

Assessment of Going Concern is one of the key areas which require the attention of Auditors and Management for the audit of financial statements for the year ended 31st March 2020. However, it is the general assumption of people that assessment of going concern is only the responsibility of auditors and not that of management. […]...

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Opportunity In Chaos: The Era of Startups and Innovation

The COVID 19 pandemic persists to be a health and human crisis, but the impact on business organisations is sagacious. Amidst this crisis, the major focus of Government is on promotion of start-ups as they are much more flexible, easier to run and demand much lesser compliances which is a boon during COVID 19. Also, the start-ups can turn...

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Rs. 20 lakh crore Package to Boost Economy: How Much Effective

On 12th May The Prime Minister Shri Narendra Modi announced a package of Rs. 20 Lac Crore relief package which is nearly 10% of GDP to trigger economy growth. In the first part of this package focus is on small business (MSMEs), Liquidity, Labor, Land and Laws. For MSMEs following steps has been taken: 1. […]...

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श्री कृष्ण और श्री अर्जुन के बीच ITR फ़ाइल करने की तिथि बढ़ने पर वार्तालाप

श्री कृष्ण और श्री अर्जुन के बीच ITR फ़ाइल करने की तिथि बढ़ने पर वार्तालाप श्री कृष्ण: वत्स अर्जुन, किस चिंता में बैठे हो। जऱा हमें भी त...

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Circular on passing of Ordinary & Special Resolution

Clarification on passing of Ordinary Resolution & Special Resolution by the Companies Act and Rules made thereunder on account of threat posed by Covid 19 Relevant Circular:  General Circular No. 14/2020 dated 08.04.2020 Provision of the Circular: In view of the extraordinary circumstances due to pandemic caused by COVID -19 prevaili...

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Section 194C TDS not applicable on terminal handling charges

DCIT Vs Keshodwala Foods (ITAT Rajkot)

As per the circular no. 723 dated 19.09.1995 states that where the provisions of Section 172 are to apply, the provisions of Section 194C and 195 relating to tax deduction at source are not applicable....

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Ex parte order passed by VAT officer turned down by Hyderabad High Court

Walchandnagar Industries Limited Vs Commercial Tax Officer (Andhra Pradesh) The Hyderabad High Court observed that taxpayer could not appear for the hearing owing to prevalent pandemic situation and the department issued notices for penalty without hearing the petitioner. The High court opined that there is a failure of the rules of natur...

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KGST- Assessment cannot be reopened after 14 years unless fresh receipt of materials for tax evasion

K. Sasilal Vs Fast Track Assessment Team No. 2 (Kerala High Court)

Hence, the High Court of Kerala quashed the reassessment proceedings under section 17D of the Kerala General Sales Tax Act (KGST), 1961 since the provision does not prescribe any time limit and no additional material to undertake the fast track assessment was presented by the department....

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Why & How to register as MSME

MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions. Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry and Service Providers. For these small-scale...

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Holding of AGM through Video Conferencing or OAVM

Holding of Annual General Meeting through Video Conferencing (VC) or other Audio Video Means (OAVM) Purpose: To relax the some provisions of the Companies act 2013 or Rules made there under subject to the current situation due to the Covid 19. Relevant Circulars: General Circular No. 20/2020 dated dated 05.05.2020 As per this Circular Com...

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Why Investment in sovereign gold bond scheme is better than investment in Physical Gold

Why Investment in sovereign gold bond scheme (SGBs) is better option than to invest in Physical Gold. Now, when we talk about the investment in Physical Gold it is quite important to know the other options as available to invest in gold that is the SGBs. Investing in physical gold had been a traditional approach […]...

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Collateral free MSME loans under COVID relief package

The Finance Minister recently announced an economic relief package to MSME units in the form of collateral free loans. This facility is for standard MSMEs, that is, those MSMEs which were running fine until the Covid-19-induced lockdown disrupted their work. The total value of this relief package as declared by the Government was to the [...

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How to show in GSTR-9 of FY 18-19 Adjustments of FY 17-18

GSTR-9 (Annual Return) filing was very challenging for FY 2017-18 until CBIC released their press release dated 04-06-2019 and 03-07-2019 in connection with clarification on source of data to be provided in different tables of GSTR-9 together with clarification on some doubts for how data to be provided in annual return. Further press rel...

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Impact on Physical Inventory Verification due to Covid-19

Physical verification of inventory is the responsibility of management of the entity. Management is required to establish procedures under which inventory is physically counted at least once a year to ensure existence, condition, and support valuation of inventory....

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Study on Valuation & Valuer under Companies Act, SEBI & FEMA

In order to have a uniformity in the recognition of organisation of valuers and the process of valuation of various assets of the organisation, the MCA has introduced for the valuation of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities....

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Merger control for IRPs: Do acquisitions of distressed firms warrant competition scrutiny?

This paper examines the proposal to use green channelling to give automatic approval to Insolvency Resolution Plans (IRP) that meet merger thresholds of the Competition Commission of India (CCI)....

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Recent Legal Issues In GST Refunds

Refunds are the important part of any tax legislation. Refund is a drawback of the excess taxes paid to the Government subject to the conditions laid down in any law. Article 265 of our constitution provides a base behind legislation of refund provisions under any tax law, which provides that no tax shall be levied […]...

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Valid Return under GST and its Questionnaire

Legal Base of the Provision 1.0 As per the Section 2 and sub-section (117) of the CGST Act, 2017, ‘valid return’ means a return furnished under sub-section(1) of section 39 on which self-assessed tax has been paid in full; 1.1 As per legal definition of ‘valid’ means binding; possessing legal force or strength; leg...

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November 2020