"24 May 2020" Archive

All about GST on E-commerce

I have tried my level best to cover all the applicable provisions of GST on e-commerce transaction, today we are living in 21st century and day by day e-commerce transaction is increasing rapidly in the view of this even government introduced some new provisions through GST which was not there before the commencement of GST […]...

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Input Tax Credit taken on registration-cancelled-vendor’s invoices & its impact

1. Situation arises: 1.1 Assessee found; invoices given by some suppliers are not appearing in GSTR-2A during verification of GSTR-2A for filling GSTR-3B return as per notification No. 49/2019-CT, dated 9th October, 2019 and circular 123/42/2019-GST, dated 11th November, 2019. 1.2 Further Assessee verified GSTN of those suppliers in GST p...

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Registration Under Goods and Service Tax – Comprehensive analysis

Registration under GST : The registration requirements have undergone various changes since the inception of the Goods and Services Tax on 1st July, 2017. There are numerous amendments and also notifications and circulars issued in this regards Section Description 22 Persons liable for registration 23 Persons not liable for registration 2...

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Refund of Unutilized ITC on Zero Rated Outward Supply of Exempted Goods

Refund of Unutilized Input Tax Credit (ITC) on Zero Rated Outward Supply of Exempted Goods As per Section 17(2) of CGST Act, 2017– ’Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the IGST, and partly for effecting [&h...

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ITC of GST paid on works contract services | Significance of nature of property “permanent or movable” & related accounting treatment

ITC of GST paid on works contract services – Significance of nature of property ‘permanent or movable’ and related accounting treatment Pursuant to Covid-19, the business across the globe has undergone various changes which not only includes changes in the working methodologies and IT processes but also includes changes ...

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Taxability of Lump Sum or Monthly Alimony Money received at time of Divorce

The Income Tax Act, 1961 does not contain specific provisions relating to Alimony. Analogous provisions along with relevant case laws must be studied for taxation of alimony. Under circumstances where there is NO divorce; when an asset is transferred by one spouse to another, for inadequate consideration, the same shall be a gift exempt f...

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Direct Tax Benefits for Startup & Small Business In India

In the recent years, the Indian Startup ecosystem and Small Business Ecosystem has taken off and is on the verge to get mature. In a young country like India, with the population of around 1.3 Billion out of which around 30% are youth between the age of 15-24 years, these startups and small businesses emerged […]...

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Digital Taxation- Evolution of Equalisation Levy

Over the decade, use of technology has drastically changed the global business structure by creating immense transformations in the way companies globally conduct their businesses. Technology has expanded the outreach and connectivity of the businesses and with the use of digital space, companies located outside India are able to run thei...

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Assessments under Income-Tax Act, 1961

Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. ...

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Advance Tax Provisions, Challan, e-payment Utility & Examples

As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of advance tax. In this part you can gain knowledge on various provisions relating to payment of advance tax by a taxpayer....

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Income Tax Offences liable to prosecution

Apart from levy of penalty for various defaults by the taxpayer, the Income-tax Law also contains provisions for launching prosecution for offences committed by the taxpayer. In this part you can gain knowledge about offences in respect of which prosecutions can be launched under the Income-tax Law....

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Power of Commissioner to Reduce or Waive Income Tax Penalty

In the tutorial on Penalties Under the Income-tax Act, we discussed various penalties imposable under the Income-tax Act in respect of various defaults. Apart from enacting penalty provisions...

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Penalties under Income-Tax Act, 1961

Under the Income-tax Act, penalties are levied for various defaults committed by the taxpayer. Some of the penalties are mandatory and a few are at the discretion of the tax authorities. In this part, you can gain knowledge about the provisions relating to various penalties leviable under the Income-tax Act....

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Students Contribution for Building Development Fund is capital receipt

Vidya Bharati Society for Education & Scientific Advancement Vs ACIT (ITAT Kolkata)

Vidya Bharati Society for Education & Scientific Advancement Vs ACIT (ITAT Kolkata) Merely because the contributions from students were collected under the nomenclature of development fee cannot ipso facto lead to conclusion that it cannot be considered to be corpus contribution. It is true that in terms of section 12(1) read with sec...

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Auto Income Tax Calculator with Salary Statement for FY 2020-21

2 in 1 Auto Income Tax Calculator with Salary Statement for Financial Year (FY) 2020-21/ Assessment Year (AY) 2021-22 in Excel Govt. has introduced a new tax regime from F.Y.-2020-21 with a lower tax rate without any exemption/deduction. Also left an option for assesses to choose any one suitable regime between Old(existing) and New incom...

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Sexual Harassment at Workplace – Part 1

Covid 19, Extended Lockdown, Economic impact of the lockdown, recovery path, these are the current topics of on which we are being flooded with riveting discussions and articles . But ,  in spite of the grave pandemic scenario in the world, there is still coverage on the unpalatable topic of sexual harassment of women. The […]...

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Sweeping Changes in Charitable Trust & Institutions under Income Tax

However, registration process under section 80G has also been amended with similar effect as that of section 12AB & section 10(23C)...

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New special tax rates for individual & HUF for AY 2021-22 | Section 115BAC

In attempts to cope up increasing demand to reduce tax rates as well as current Government’s commitment to lower tax burden on not so-rich tax payers, various provisions are introduced during the recent years, to name a few – Sections 115BA, 115BAA, 115BAB, 115BAC and 115BAD. These sections intend to lower tax burden on taxpayers [&he...

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Brief Analysis of Section 206C(1H) – TCS collection by Seller of Goods

All of us are well aware of TDS (Tax Deduction at Source) , wherein Buyer of goods or service has an obligation to withhold the Tax and make the remaining amount to seller of Goods and service. In another way, TCS (Tax Collected at source) will operate. Here, Seller of goods shall collect the tax […]...

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Coercive steps shall be kept in abeyance until rectification orders are passed

Manambur Service Co-Operative Bank Limited Vs ITOr (Kerala High Court)

Manambur Service Co-Operative Bank Limited Vs ITO (Kerala High Court) HC states that the rectification applications will be taken up for consideration by respondent without much delay, and affording reasonable opportunity of being heard to the petitioner through authorised representative/counsel, if any, may pass orders thereon without mu...

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Section 44AD Special provision for calculating presumptive profit for small or mid size business

In such situation, persons carrying on business being individual, HUF or partnership firm (other than LLP) have option to opt for presumptive taxation under section 44AD of the Income Tax Act, 1961. Accordingly, it is expected that voluminous income tax returns will be filed under this section for FY 2019-20 (AY 2020-21)....

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Appointment of Managing Director under Company Law

Article explain Rules and Section under Company Law Applicable to Appointment of Managing Director, Definition of Managing Director under Section 2(54) of Companies Act, 2013, Important Pre- Requites for Appointment of Director as Managing Director under Companies Act, 2013, Procedure for Appointment of Director as Managing Director (MD) ...

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Specimen of Consent letter to be appointed as a Secretarial Auditor

Draft Specimen of Consent letter to be appointed as a Secretarial Auditor Date: ………… To, The Board of Directors, Company Name…………. Address…………………… Sub: Consent letter Dear Sir(s), We/I, ……………………., a firm of Company Secretary(ies) in whole time in practice, do hereby give(s) our/my consent to...

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Rate of Interest by Nidhi Companies

The banks and Non-Banking Financial Institutions form a strong backbone of our economy however, they are still not in reach of people requiring funds specially those of living in rural areas or are lack of requisite documentation like Income Tax return and the like. Therefore, the Government of India came up with the concept of […]...

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AGM through Video Conferencing under Companies Act 2013

RELAXATIONS IN HOLDING OF ANNUAL GENERAL MEETING THROUGH VIDEO CONFERENCING OR OTHER AUDIO-VISUAL MEANS: Ministry of Corporate Affairs has given relaxations to Companies to conduct the meeting through Video Conferencing or other audio-visual means vide General Circular No. 20/2020 dated May 05, 2020.: Governing provision for Annual Genera...

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Companies Act Related Relaxations under Atmanirbhar Bharat Abhiyan

Amid wide spread novel corona virus pandemic, the Government of India introduced a new phase of Ease of Doing Business Reforms relating to easy registration of property, fast disposal of commercial disputes and simpler tax regime for making India one of the easiest, speedy and reliable economy to do business under Atmanirbhar Bharat Abhiy...

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Short Study on Board Minutes under Companies Act 2013

BOARD MINUTES [Section 118 of the Companies Act, 2013 Read with Rule 3 of the Companies (Meetings of Board and its Power) Rules, 2014] A Company from incorporation to closing of business is guided by the provisions of the Companies Act, 2013 and related rules, hence evidently, minutes are also governed by the Companies Act, 2013. [&helli...

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Registration/Incorporation of LLP (Limited Liability Partnership)

Introduction With the emergence of ideas, more & more people are thinking to do something of their own like running a startup or business etc., for that having a separate legal entity is like “Cherry on the cake” these days. Many options are there to run a business like registering it as a Sole proprietorship, […]...

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Revival of Companies under Companies Act, 2013

In order to increase transparency and curb the operations of shell Companies, the Registrar of Companies, in accordance with its power as per Section 248(1)(c), struck off many Companies in 2017, 2018 and then again in the year 2019. Accordingly, there have been three tranches of striking off done by the various Registrar of Companies [&h...

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How to prepare Project Report for Getting MSME Loans/ NGO Grants

In the case of NGOs also, if they need Government Grants, CSR Funding from Companies then they also require Project report. There is no fixed format of the Project report; however, a project report must consist of a basic detail of all aspects which may impact the banker/ Donor funding decision. In below points, I am trying to describe th...

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COVID-19 and its impact on Financial Reporting

It doesn’t take more than a brief scan of the news to see the devastating impact of coronavirus (COVID-19). The fallout that the virus can and will take on human life is paramount. But beyond the toll this has taken on public health and safety, businesses around the world are also wrestling with how susceptible […]...

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Impact of Covid Shutdown on ICoFR for Statutory Audit of FY 2019-20

Uncertainty and it’s impact on the control environment Covid-19 brought in uncertainty. Working under the disruptively changed period of Uncertainty should drive you to review your Internal Controls. As we head into the Audit sessions for FY 19-20, Finance teams need to provide their Audit Committees, Boards and the Statutory Auditors c...

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Letter to President of ICAI on ‘Members Hope from ICAI in Covid-19 Pandemic’

There are many CAs known to me, who are struggling in this pandemic, but not wish to put their name here as there are others too, to whom I don’t know. Below are a few situations, members facing, which I have witnessed:...

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Recent Corporate Law measures to boost Measures for Ease of Doing Business

Ease of doing business for corporates and allocation of the package of 20 lakh crore for Atamnirbhar Bharat Recent Corporate Law measures to boost Measures for Ease of Doing Business > In the first phase of decriminalization of Company Law defaults in 2018, 16 compoundable offences were shifted to an in-house adjudication & penalty...

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No contravention of EXIM Policy in case finished goods after job work cleared to DTA

Commissioner of Central Excise Vs Universal Ferro & Allied Chemicals Ltd. (Supreme Court)

Commissioner of Central Excise Vs Universal Ferro & Allied Chemicals Ltd. (Supreme Court of India) Conclusion: Since in the transaction between the UFAC and TISCO, there was no transfer of property in goods to the UFAC and, as such, it could not be considered to be a sale under section 4 of the Sale of […]...

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Kerala Tax on Paper Lotteries Act, 2005 was declared as unconstitutional

State of Sikkim Vs State of Kerala (Kerala High Court)

State of Sikkim Vs State of Kerala (Kerala High Court) Conclusion: Levy of license fee on the draw of lotteries under Section 5BA of Kerala General Sales Tax (KGST) Act,  within the state of Kerala was prohibited by the virtue of law, so the Kerala Tax under Section 5BA of Kerala General Sales Tax (KGST) […]...

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Artificial intelligence (AI) & Machine learning (ML) – Imperative in finance

In today’s technology driven world where none of the activity of our day to day life is being untouched by technology, we finance people also need to realign our knowledge and experience with the trending technology to get a better pace and ease in surviving in this new era. We all must have heard about […]...

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Relaxations provided by SEBI from May 12 to May 20, 2020 amid covid 19

SEBI- Relaxation between May 12 to May 20– Advisory to disclose impact of COVID-19 Brief Note on relaxations provided by SEBI Recently  from May 12, 2020 to May 20, 2020 Securities and Exchange Board of India (“SEBI”) being the principal Security Market Regulator in India had announced following relaxations in the month...

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CCI closes complaint against West Bengal lotteries directorate, stockist

XYZ Vs Directorate of State Lotteries (Competition Commission of India)

XYZ Vs Directorate of State Lotteries (Competition Commission of India) Competition Commission has closed a complaint alleging unfair business practices by the Directorate of State Lotteries, West Bengal, and West Bengal Lottery Stockists Syndicate. Full Text of the order of Competition Commission of India 1. The present Information has b...

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Guidelines For Air Passengers amid COVID-19

FROM ORIGIN TO AIRPORT DO’S (0) FOLLOW THE NORMS ♠ Social distancing and minimum touch ♠ Agreeing to the self declaration form & ♠ Registering on Aarogya SEW App ♠ Digital payments & use of Authorized taxis ♠ Baggage limitations -only one check-in bag and one cabin bag allowed ♠ Vulnerable persons such as very e...

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CENVAT Credit Refund must be claimed within one year from date specified in Section 11-B

Suretex Prophylactics India Private Limited Vs Commissioner of Central Excise (Karnataka High Court)

In other words, time limit has to be computed from the last date of the last month of the quarter which would be the relevant date for the purposes of examining if the claim is filed within the limitation prescribed under Section 11-B or otherwise....

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Subsequent Events Key Audit Considerations amid COVID-19

Auditing and Assurance Standards Board (AASB) of ICAI Institute of Chartered Accountants of India This document has been prepared to highlight key areas of focus in the current environment when undertaking procedures relating to subsequent events in accordance with the Standards on Auditing (SAs). This document does not amend or override ...

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MSME- Definition, Benefits and Registration

What are Micro, Small and Medium Enterprises Under Micro, Small and Medium Enterprises Development(MSMED) Act, 2006, the Micro, Small and Medium Enterprises(MSME) are classified into two categories 1. Manufacturing Enterprises: These are those enterprises which are engaged in the manufacture or production of goods relating to industry spe...

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Ind As 105 Non-Current assets held for sale & Discontinuing Operations

Objectives of Ind As 105 A) Non-Current assets held for sale i) are presented separately from other assets in the Balance Sheet ii) as their classification will change and iii) the value will be principally recovered through sale transaction rather than through  continuous use in operations of the entity. B) Results of Discontinuing Oper...

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Section 34 of Arbitration & Conciliation Act 1996 | Practice & Procedure

Do I believe in arbitration? I do. But not in arbitration between the lion and the lamb, in which in the morning the lamb is found inside the lion. – Mr. Samuel Gompers Besides all the advantages and amenities available to refer the disputes to arbitration, it is one of the cornerstone drawbacks of the […]...

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Extension of cheque life span along with other suggestive measures

In recent times Coronavirus (COVID-19) outbreak has been declared as a pandemic by the World Health Organization. In this current pandemic scenario of the COVID-19, the almost whole world is going through this crucial time and facing a severe financial crisis. According to research, India’s GDP growth rate for the current year may be st...

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List of Trademark Status and Meaning of Such Status

Trademark application status can be easily tracked online using the governmental portal. But to have an exact idea of your trademark status it is important to know what exactly each status mean. Therefore, we The Consultant Guru have complied all the trademark status for easy understanding. The different Trademark Status are as follows: N...

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HC directs department to conduct CST Assessment after providing Opportunity of Cross-Examination to Dealer

Munesh Enterprises, Guna through its Proprietor Pratap Singh Dhakad Vs State of M.P. and another (Madhya Pradesh High Court)

The respondents are now directed to conduct reassessment proceedings by granting reasonable opportunity to the petitioner of cross-examination in respect of the documents pertaining to the Krishi Upaj Mandi Samiti, Guna (M.P.)....

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No section 14A disallowance if there is no exempt income in that year

DCIT Vs JSW Limited (ITAT Mumbai)

DCIT Vs JSW Limited (ITAT Mumbai) The issue under consideration is whether A.O. is correct in restricting the disallowance under section 14A of the Income Tax Act, 1961, without appreciating the fact that the appellant company has not earned any tax-exempt income during the relevant assessment year? As per Section 14A of the Act, the [&he...

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A court can set aside award only on the grounds provided in the Act: SC

South East Asia Marine Engineering and Construction Ltd. Vs Oil India Ltd. (Supreme Court)

South East Asia Marine Engineering and Construction Ltd. Vs Oil India Ltd. (Supreme Court) It is a settled position that a Court can set aside the award only on the grounds as provided in the Arbitration Act as interpreted by the Courts. Recently, this Court in Dyna Technologies Pvt. Ltd. v. Crompton Greaves Ltd. [2019 […]...

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Trust to accumulate 25% of income derived from property before application

Indian Medical Association Vs ITO (ITAT Ahmedabad)

Indian Medical Association Vs ITO (ITAT Ahmedabad) Having regard to the plain language of the above provision, it is clear that a charitable or religious trust is entitled to accumulate twenty-five per cent, of its income derived from property held under trust. For the present purposes, the donations the assessee received, would constitut...

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HC explains Law on Section 148 Reopening for the 2nd time

T. Krishnamurthy Vs ITO (Madras High Court)

T. Krishnamurthy Vs ITO (Madras High Court) This is a case where details of investment in shares and immovable property were not originally disclosed by the petitioner at the time of filing of the original returns under section 139 of the Income-tax Act, 1961 for the respective assessment years. Therefore, two notices under section 148 [&...

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Bonus allocated to Policyholders – Tax Treatment- ITAT Judgment

Max New York Life Insurance Company Ltd. Vs DCIT (ITAT Delhi)

Max New York Life Insurance Company Ltd. Vs DCIT (ITAT Delhi) 1. This is an appeal filed by the assessee against the order of the ld CIT (A)-22, New Delhi dated 15.11.2017 for the Assessment Year 2014-15. 2. The assessee has raised the following grounds of appeal:- “1. That on the facts and circumstances of […]...

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How to Maintain Financial Health During Covid-19

The whole world economy is expecting an uncertainty and hardship because due to unprecedented COVID 19 pandemic. There has been slump in stock markets, failures in reviving businesses, catastrophic impact on workings hours and earnings globally. With the right measures and the choices we make today can affect the way the pandemic unfolds ...

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AP High Court Allows option to revise GST Return

The Andhra Pradesh High Court has ruled that the GST Return (GSTR) Form — GSTR-3B — is a statement and a revision option should be provided. Once implemented at the national level, it will be a big relief for a large number of GST assessees — excluding those under composition scheme. All taxpayers, except those […]...

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Transitional Credit Battle under GST – Walk Through

The Government should come up with the mechanism for the taxpayers who could not or partially to avail the benefit of unused erstwhile credit. The taxpayers must submit TRAN-1 manually till government comes with the mechanism. Further, if government does not come up with mechanism, such notification (NN 43/2020) will add fuel to the burni...

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GST Needs A Robust Information Technology System

Goods and Service tax is about to complete 3 years of its implementation and after lots of notifications, circulars, and amendments, it is trying to bring stability and smoothness in its functionality. This journey would not be possible without the help of information technology. Information Technology plays a very important role in GST i...

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Top 7 tax saving investment mistakes you should opt-out of in this financial year

At the beginning of the financial year, many people look for investment avenues and getting their taxes and investments organized. Your investments are unlikely to align well with your financial goals. Hence you need to be aware of how to invest money and avoid making delays or hasty decisions in investments that may lead to […]...

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COVID-19 Specific Process to Claim Your PF Advance

1. Login to Member Interface of Unified Portal http://unifiedportal-mem.epfindia.gov.in 2. Go to online services and Click on Claim (Form-31,19,10C & 10D) Tab 3. Enter your Bank account number and Verify. 4. Click on ‘Proceed for Online Claim’ 5. Select PF Advance (Form 31) Form the Drop Down Menu 6. Select Purpose as R...

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