"20 May 2020" Archive

GST refunds a need for a pandemic situation- Issues & Solutions

Let us now understand some of the issues under GST refund where the authority has gone beyond the delegated powers to provide the restriction to claim the GST refund....

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Adamancy of Government in Granting Transitional Credits

After lots of efforts, the Goods and Service Tax Act was introduced in India with effect from 1st July 2017. GST- Being a major indirect tax reform GST replaced many indirect tax laws that were prevalent and under which tax was levied by both the Centre Government and the State Government. Indirect Taxes that existed […]...

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Three year time-limit for filing TRAN-1 – Delhi HC Judgment

Rule 117 as being 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. This however, does not mean that the availing of CENVAT credit can be in perpetuity....

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Credit and Debit note under GST

Credit and Debit note under GST Introduction of credit note A supplier of goods or services or both is mandatorily required to issue a tax invoice.However, during the course of trade or commerce, after the invoice has been issued there could be situations like: Original tax invoice has been issued and taxable value in the […]...

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Refund on Compensation Cess under GST regime

What is Compensation Cess :For the purpose of providing compensation to the States for any loss of revenue post GST regime, compensation cess (CC) provisions were introduced for a period of 5 years (till 30.6.2022). Following goods are covered [Schedule u/s 8(2) of GST (compensation) Act or CESS Act] on which CC would be levied […]...

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GST series Part 4 | Charging section 9 Levy & collection of GST

1. The charging section (Section 9 of CGST Act, 2017, Levy and collection of GST) is the most important section in any law for levy (impose) and collection (payment) of taxes. The very basic for the charge of tax in any taxing statute is taxable event. i. e. the point of time when tax will […]...

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Transitional Credits- Retrospective amendment & its Implications

1. While transitioning from the previous taxation regime to the new GST regime, eligible taxes paid in the previous regime were allowed as transitional credits under GST. It was intended to lower the cascading effect and preserve the vested credits. Sec. 140 of the CGST Act, 2017 along with Rule 117 contains the provisions related [&helli...

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Input Tax Credit under GST | Section 16 to 18 | CGST Act 2017

Input Tax Credit (ITC) means the amount of tax paid on purchase of Input Goods, Input Services and Capital Goods and includes tax paid under Reverse charge. Then at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. This mechanism is […]...

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HC accepts plea challenging validity of provisions related to Constitution of AAR/AAAR

Chambal Fertilisers And Chemicals Limited Vs Union Of India (Rajasthan High Court)

Chambal Fertilisers And Chemicals Limited Vs Union Of India (Rajasthan High Court) The petitioner has challenged the constitutional validity of Section 96(2) of the Rajasthan Goods and Service Tax Act, 2017 for short, ‘the RGST Act’) and Section 96 of the Central Goods and Services Tax Act, 2017 (for short, ‘the CGST Act’) to the ...

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Benefits of filing Belated Income Tax Return for F.Y -2018-19 | Section 139(4)

This time CBDT has extended the Last date to File Income-tax Return for the F.Y -2018-19 from 31.03.2020 to 30.06.2020. After the lockdown, now the Government of India is granting permission to start business activities in a phased manner so that the Economy can move forward but now MSME Sector is starting facing cash flow issues to reviv...

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How To Draft Appeal Before CIT (Appeals)

The Commissioner of Income-tax (Appeals) is the first appellate authority. Section 246A specifies the orders against which an appeal can be filed before the Commissioner of Income-tax (Appeals). Appeal can be filed before Commissioner (Appeals), when a tax payer is adversely affected by Orders as under passed by various Income tax authori...

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Section 269SU not applicable to specified person having only B2B transactions

Circular No. 12/2020-Income Tax (20/05/2020)

It is hereby clarified that the provisions of section 269SU of the Act shall not he applicable to a specified person having only B2B transactions (i.e. no transaction with retail customer/consumer) if at least 95% of aggregate of all amounts received during the previous year, including amount received for sales, turnover or gross receipts...

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Nature of transaction depend upon facts & circumstances of case & not merely on rules or principle 

Haresh Khiamal Nanwani Vs ACIT (ITAT Mumbai)

Haresh Khiamal Nanwani Vs ACIT (ITAT Mumbai) The issue under consideration is whether ACIT is correct in treating the sale of investments in immovable properties as a business activity rather than considering it as capital gains, in spite of the appellant holding the flats for more than 36 months. Assessee state that, he had shown [&helli...

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Key takeaways on determination of residential status of an individual as per finance act, 2020

The author has made an attempt to discuss each amendment made under section 6 of the Act in a tabular format, so that it is easy for the readers to understand the difference between the provisions as per the erstwhile law, the provisions proposed by the Finance Bill, 2020 and the amended law as mentioned in Finance Act, 2020:...

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Suit can’t be rejected outrightly u/s 4(3) of unamended Benami Act

Neeru Dhir and Ors. Vs Kamal Kishore Dhir and Ors. (Delhi High Court)

Suit ought not to have been rejected outright under Order VII Rule 11 CPC on the ground that the pleas taken by the appellants/plaintiffs were barred under Section 4(3) of the unamended Benami Act. It would therefore be imperative to weigh the evidence in the instant case for the court to conclusively decide as to whether the appellants/p...

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Principle governing identification of comparable transactions would be same, irrespective of TP method

Infogain India Pvt Ltd Vs DCIT (ITAT Delhi)

Comparison of activities undertaken /functions performed was important for determining the comparability between controlled and uncontrolled transactions/entity....

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Passing ex-parte order without discussing merit of case is not justified in law

Bimla Devi D/o. Shri Phool Chand Vs ITO (ITAT Delhi)

Bimla Devi D/o. Shri Phool Chand Vs ITO (ITAT Delhi) The issue under consideration is whether the ex-parte order passed by CIT(A) without discussing merit of the case is justified in law? ITAT studied the matter and state that it is pertinent to note that the CIT(A) has passed ex-parte order and dismissed the appeal […]...

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Section 234D- Interest on Excess Refund of Income Tax

Article discusses Interest under section 234D of Income TAx Act, 1961 on Excess refund granted to taxpayer which includes Manner of computation of interest U/s. 234D , Basic provisions related to Refund, Amount liable for interest and Adjustment under Section 234D(2). ...

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All about Interest Payable U/s. 234A, 234B & 234C

Under the Income-tax Act, different types of interests are levied for various kinds of delays/defaults. In this part, you can gain knowledge about the provisions of section 234A, 234B and 234C dealing with interest levied for (i) delay in filing the return of income...

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CBDT issues important directives on Safe Harbour Rules

Notification No. 25/2020-Income Tax [G.S.R. 304(E)] (20/05/2020)

The CBDT has issued Notification No. 25 of 2020 dated 20 May 2020, wherein it has notified the year of applicability of the ‘Safe Harbour Rules for International Transactions’ (SHR) for Assessment Year (AY) 2020-21, as the existing rules were applicable only up to AY 2019-20. The said notification are applicable from 1 April 2...

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All about Online payment of Direct Taxes

There are two modes of payment of direct taxes (i) physical mode i.e. payment by furnishing the hard copy of the challan at the designated bank; and (ii) e-payment mode i.e. making payment by using the electronic mode. In this part, you can gain knowledge about various provisions relating to e-payment of various direct taxes....

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Minimum Alternate Tax (MAT) & Alternate Minimum Tax (AMT)

MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT. In this part you can gain knowledge about various provisions relating to MAT and AMT. First of all we will underst...

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Tax Treatment of Cash Credit U/s. 68, 69, 69A, 69B, 69C and 69D

This Article discusses Tax Treatment of Cash Credit, Unexplained investments, Unexplained money, Amount of investments not fully disclosed in books of account, Unexplained expenditure and Amount borrowed or repaid on hundi in cash under section 68,Section 69, Section 69A, Section 69B, Section 69C and Section 69D respectively of Income Tax...

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Nomination & Remuneration Committee | Companies Act 2013

This Nomination and Remuneration Policy is being formulated in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto as amended from time to time. This policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management has been formulated by the Nomination and R...

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All about Managing Director under Companies Act, 2013

Managing Director Section 2(54) of the Companies Act, 2013, defines Managing Director. ‘managing director’ means a director who by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management ...

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Buyback of Shares under Section 68 of Companies Act, 2013

-Section 68 of the Companies Act, 2013 empowers a company to purchase its own shares or other securities in certain cases. -Sections 68 to 70 of the Companies Act, 2013 and Rule 17 of the Companies (Share Capital and Debentures) Rules, 2014 deal with buy-back of shares. 1. Sources of Buy-Back: A company may purchase […]...

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Arbitration agreement not become null & void if allegations of fraud have to be inquired into by court

Spentex Industries Ltd. Vs Quinn Emanuel Urquhart & Sullivan LLP (Delhi High Court)

Spentex Industries Ltd. Vs Quinn Emanuel Urquhart & Sullivan LLP (Delhi High Court) In the given case, the plaintiff is seeking the main relief to pass a decree of declaration, declaring that the Letter of Engagement as well as arbitration clause being Article 16 of the Letter of Engagement is null and void, inoperative and […]...

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13 Mandatory Compliances for a Private Limited Company in India

Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated. Recently, Government strike off more than 2 Lakh companies and disqualified more than 3 Lakh directors for non-compliance of various provisions of Companies A...

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If Goods Component in Photography Service can be separated then No Service Tax levied on Goods Component

Agrawal Colour Advance Photo System Vs Commissioner of Central Excise and Another (Madhya Pradesh High Court at Jabalpur)

Agrawal Colour Advance Photo System Vs Commissioner of Central Excise and Another (Madhya Pradesh High Court at Jabalpur) The issue under consideration is whether while providing photography service whether the use of the paper upon which an image is printed using certain consumables and chemicals, being incidental to the provision of ser...

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ESI Rules Amended To Allow Maternity Benefits For Commissioning & Adoptive Mother

Notification No. N-12/13/1/2016-P&D (20/05/2020)

ESIC has issued a notification by which it notified Employees’ State Insurance (General) (First) Amendment Regulations, 2020 and inserted Regulation 87A : Notice of Commissioning Mother, Regulation 88A: Declaration by Insured Women of her surviving child or children, Regulation 89C : Claim for Maternity Benefit by Commissioning Mother,...

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Employees’ State Insurance (General) (Second) Amendment Regulations, 2020

Notification No. N-12/13/01-2019-P&D (20/05/2020)

Employees’ State Insurance (General) (Second) Amendment Regulations, 2020 A member of local committee shall cease to be a member of the committee if he fails to attend three consecutive meetings thereof provided that his membership may be restored by the Regional Director, on being satisfied as to the unavoidable nature of the circumsta...

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Inventory Verification by Use of Technology In Lockdown Scenario

The Institute of Chartered Accountant of India (Institute of Chartered Accountant of India) has issued many advisory on various matters of Audit and Accounting. Institute of Chartered Accountant of India has also issued one advisory on important matter i.e. Physical Verification of Inventory for Auditing complied with SAs, Companies Act a...

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Reduction in statutory rate of EPF contribution from 12% to 10% – FAQs

FREQUENTLY ASKED QUESTIONS Reduction in statutory rate of EPF contribution from 12% to 10% Q 1. What is revised rate of EPF contribution announced by the Central Govt. under Atmanirbhar Bharat package? Ans. Under this package the statutory rate of EPF contribution of both employer and employee has been reduced to 10 percent of basic [&hel...

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Regulatory, Certifying And Licensing Authority In India

A Regulatory agency is a public authority or government agency responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity. Regulatory Agencies are either set up under a statute or derive their powers from a statute and the rules laid thereunder. For instance, Reserve Bank of In...

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SEBI Advisory on disclosure of material impact of Covid–19 pandemic

Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/84 (20/05/2020)

Advisory on disclosure of material impact of CoVID–19 pandemic on listed entities under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR Regulations’/‘LODR’)...

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COVID-19 : Bank loan schemes

With the announcement of Relief Packages of Rs. 20 Lacs crores to revive the Economy by the Finance Minister, large number of entrepreneurs are puzzled as how to avail the benefits from these schemes? Where to apply for loans? What could be the interest benefit & so on. This article is an attempt to clarify […]...

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How to excel in tough time

How to excel in

How do we, who are in legal and compliance services can not just Survive but Excel in tough Time during this Pandemic of COVID-19 A lot is being said and heard about finding Opportunities from Adversity for CS and Lawyers who are in practice. We all have attended number of webinars and sessions about the […]...

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Arbitration Clause-Condition to furnish Pre-Deposit for invoking Arbitration

It is the speedy and effective settlements of dispute which are the two most important attributes for the proper functioning of the justice delivery system and also important with respect to the faith of the business entities upon such system. Considering such a scenario, arbitration has emerged as an efficient alternative to the public j...

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Nothing is Permanent- Except Change- Corona Virus will also go

Nothing is permanent. Yes and therefore this COVID -19 is also has to be passed in near future. History shows that everything on this planet whatever it may be, changed after some period of time. Just like there is birth and death in case of all living being, same is the case with any other […]...

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Measures for Relief & Credit Support to Businesses especially MSMES

FINANCE MINISTER ANNOUNCE MEASURES FOR RELIEF AND CREDIT SUPPORT RELATED TO BUSINESSES, ESPECIALLY MSMES TO SUPPORT INDIAN ECONOMY’S FIGHT AGAINST COVID-19 Yesterday Hon’ble Prime Minister Shree Narendra Modi Jee announced a Special economic and comprehensive package of Rs 20 lakh crores – equivalent to 10% of India’s GDP. He ...

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Financial Frauds in India in recent times

In this article, we will discuss in detail about three financial frauds that have happened in India in recent times – 1. The PMC Bank Scam, 2019 2. The Karvy Stock Broking Scandal, 2019 3. The Rotomac Pens Scam, 2018 CASE I – THE PMC BANK SCAM, 2019 HISTORY AND BACKGROUND: The Punjab and Maharashtra […]...

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ITC benefit passing requirement is outside the purview of AAR

In re Shriram EPC Limited (GST AAR Kerala)

In Re Shriram EPC Limited (GST AAR Kerala) The issues raised in the instant application is regarding the requirement of the passing over of the benefit of ITC on goods lying in stock as on the appointed date i.e; 01.07.2017 and in respect of the goods procured after the appointed date, which is outside the […]...

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GST on works contracts awarded by Government authorities

In re Ray Constructions Ltd. (GST AAR Kerala)

In re Ray Constructions Ltd. (GST AAR Kerala) Applicant is carrying on business in the housing and construction sector. They are engaged in providing services of construction including materials and labour as per the tender requirements. They have received a work order from Vikram Sarabhai Space Centre for the construction of a building f...

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GST on Manufacture of PVC Tufted Coir Mats / Mattings / Floor coverings by the process of embedding coir yarn into PVC

In re Eco Wood Private Limited (GST AAR Kerala)

In re Eco Wood Private Limited (GST AAR Kerala) Manufacture of PVC Tufted Coir Mats / Mattings / Floor coverings by the process of embedding coir yarn into PVC  is liable to GST @ 12%. i. Whether the process of manufacture (embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling) is “Tufting” […]...

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Requirement of Veterinary Certificate for Import of Milk and Milk Products into India

Instruction No. 06/2020-Customs (20/05/2020)

Compulsory veterinary certificate issued by Competent Authority of exporting country is not being insisted upon by field formations in consignments of dairy products (including edible lactose)....

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Listing of Mutual Fund schemes that are in the process of winding up

Circular No. SEBI/HO/IMD/DF3/CIR/P/2020/086 (20/05/2020)

As per MF Regulations, there are several steps envisaged with respect to winding up of Mutual Fund schemes before the scheme ceases to exist. During this process, such units can be listed and traded on a recognized stock exchange, which may provide an exit to investors....

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