"30 May 2020" Archive

Official Guideline for Phased Re-opening (Unlock 1)

No. 40-3/2020-DM-I(A) (30/05/2020)

1. Phased re-opening of areas outside the Containment Zones- In areas outside Containment Zones, all activities will be permitted, except the following, which will be allowed, with the stipulation of following Standard Operating Procedures (SOPs) to be prescribed by the Ministry of Health and Family Welfare (MoHFW), in a phased manner:...

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Import of Goods under GST- Brief Analysis

Article explains Definition of Import of Goods, Import of Goods- Scope of Supply under GST, Levy of GST on Import of Goods, Input tax Credit of GST paid on Import of Goods, Inter-state or Intra State supply, Place of Supply of import of Goods and Import of goods for personal use. Definition of Import of […]...

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Posted Under: Corporate Law |

Capital Gain Tax on Dissolution/Reconstitution of Partnership Firms in the Hands of Partners & Firms

Taxability in the event dissolution/reconstitution of Partnership Firms have always been point of contentions before various Judicial Forums and the provisions of Income Tax has been amended from time to time to address the ambiguity in taxing the same. Our article is limited to Taxation in following situations 1. Dissolution of Firms 2. ...

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Posted Under: Corporate Law |

BCAS Representation on Goods and Services Tax Act

As our country is passing through an unexpected difficult period where almost all kind of commercial activities have become stand still. The entire country is in the lock down condition, and, either partial or full lock down may continue for some time...

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Posted Under: Corporate Law |

Audit Committee- Section 177 | Companies Act, 2013 & Rules

Article explains about Audit Committee under Section 177, Rule 6 and 7 of Companies (Meetings of Board and its Powers) Rules, 2014, Composition of Audit Committee, Functions of Audit Committee, Powers of Audit Committee, Vigil Mechanism and Penalty for Violation of Audit Committee Provisions. Introduction: Audit Committee is of the major ...

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Posted Under: Corporate Law |

Taxation of Gifts under Section 28(iv) qua Shah Rukh Khan’s case

Preface `Gifts` received are specifically dealt with by the provisions embedded in section 56(2)(vii)/(x) inserted with effect from 01st October, 2009 &  01st April, 2017 falling under Part F of Chapter IV of the Income Tax Act, 1961. In the course of professional pursuits, any benefit or perquisite whether convertible in monetary ...

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Posted Under: Corporate Law |

No Section 69 addition merely for cash deposit in Saving Bank Account

Sarita Tyagi Vs ITO (ITAT Delhi)

The issue under consideration is whether the addition made by the A.O. for cash deposited into saving bank account by the assessee is justified in law?...

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Section 12AA registration cannot be rejected merely on suspicion

Lady Floreance Education Society Vs CIT (Exemptions) (ITAT Delhi)

The issue under consideration is that whether the CIT(Exemptions) is correct in rejecting the application seeking grant of registration u/s 12AA of the Act?...

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All about filing of Form GST ITC-02A with FAQs

FAQs on Filing of Form GST ITC-02A Q.1 What is Form GST ITC-02A? A person having multiple places of business in a State or Union territory may be granted separate registration for each place of business. If a registered person, who has obtained separate registration for multiple places of business in a State/UT and intends […]...

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Posted Under: Corporate Law |

Launching of Form 26AS Version 2.0

Brief About Form 26AS Any person whoever files Income Tax Return must have encountered with Form 26AS. It is a Tax Credit Statement showing the amount of Tax deducted at source (TDS), Tax Collected at Source (TCS) during the year as well Tax Deducted from the Sale of Immovable Property. At time of Filing Income […]...

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Posted Under: Corporate Law |

Understanding ‘Limitation of Benefit’ Clause in DTAA

1. Introduction to the ‘Limitation of Benefit’ Clause in Double Taxation Avoidance Agreement (DTAA): Double Taxation Avoidance Agreements (DTAAs) were developed to address the problem that arose due to international double taxation. Double taxation occurs when a certain income is taxed in two different countries resulting in the incom...

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Posted Under: Corporate Law |

Renting of motor vehicle service under GST

The introduction of the Goods and Services Tax (GST) in India was held as one of the most significant tax reforms in the country. It has ensured rationalization of the economy and reinforced mop-up, producing consistent convergence under the “One nation one tax” idea. Supply under GST has been defined under Section 7 of CGST [...

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Posted Under: Corporate Law |

GST: Prohibition Order passed by DC without authorization is invalid

Mahendra Kumar Indermal Vs Deputy Assistant Commissioner (ST) (Andhra Pradesh High Court)

Mahendra Kumar Indermal Vs Deputy Assistant Commissioner (Andhra Pradesh High Court) As per the provisions of Section 67(1) of the Act, power of inspection is specified to an officer not below the rank of joint commissioner. The said officer for the purpose of search as specified in Section 67(1) (a) and (b) may authorize in […]...

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No section 147 notice based on material already presented during section 143(3) assessment

Audhut Timblo Vs ACIT (Bombay to Goa High Court)

The issue under consideration is whether A.O. is correct in issuing Notice under section 147 for re-opening of assessment irrespective of the fact that the material on which he relied is already present in front of him at the time of assessment u/s 143(3)?...

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Classification of Alcohol Based Hand Sanitizer

Issues in classification – Pharma Products 1. Chapter 30 of the Customs Tariff Act covers classification of pharmaceutical products. The most essential characteristic of any medicine is its curative effect i.e. therapeutic use. Curative effect means its ability to cure the disease or mitigate the disease. Another important characteristi...

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Posted Under: Corporate Law |

POA holder is authorised to sign appeal form of Foreign Company

South Staffordshire PLC, Vs DCIT (International Taxation) (ITAT Delhi)

The form of appeal shall be verified by the person who is authorised to verify the return of income under section 140 of the act as applicable to the assessee. According to the provisions of section 140(c) of the act, the first proviso says that where company is not a resident in India, the return may be verified by a person who holds a v...

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Entrenchment of Articles of Association

1. Meaning of the Entrenchment: – The Companies Act, 2013 not defined the Entrenchment term but it introduced in it. The Companies Act, 1956 not contain the Entrenchment in it. In the Companies Act, 1956 there was nothing specific provision like entrenchment, the act mostly depends on the judicial decisions. As the term is not [&hel...

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Posted Under: Corporate Law |

Process for Appointment of additional director & Key Managerial Personnel

In this article we will discuss about appointment of additional director and key managerial personnel under companies act and rules. Additional director (As per Section 161 and  Chapter XI The Companies (Appointment and Qualifications of Directors) Rules, 2014 ]...

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Posted Under: Corporate Law |

Section 43B Not Applicable on RTO Registration Fees collected from Customers 

THAR Automobiles Pvt. Ltd. Vs ITO (ITAT Delhi)

The issue under consideration is regarding applicability of provision of section 43B on the registration fees collected from the customers on sale of the vehicles?...

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Applicability of GST on Hospitality Industries

As per sub-clause (a) of Entry no 5 of Schedule II of CGST Act, 2017, 'renting of immovable property' hotel accommodation Supply is considered as supply of service. Supply of food is treated as composite supply of service, as per sub Para (b) of Entry No 6 of Schedule II of CGST Act, 2017, 'supply, by way of or as part of any service or i...

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Posted Under: Corporate Law |

Pioneers in taxation of digitally growing economy

With the expansion of information and communication technology influencing the modes and scales of supply and procurement of goods and services exponentially, the digital economy has enabled conducting of businesses without regard to national boundaries and physical presence.  The same has also resulted in novel issues in the tax regime ...

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Posted Under: Corporate Law |

TDS under GST is applicable only for taxable supply contracts

In re Mahalakshmi Mahila Sangha (GST AAR Karnataka)

In re Mahalakshmi Mahila Sangha (GST AAR Karnataka) The supply of services made by the applicant in the form of supply of food and drinks to the educational institutions is covered under entry no. 66 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 and entry 66 of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017 a...

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GST not applicable on transaction occurring outside India

In re Dolphine Die Cast (P) Ltd (GST AAR Karnataka)

In re Dolphine Die Cast (P) Ltd (GST AAR Karnataka) In the case of manufacture of Die by the applicant and invoiced to the recipient, without moving the goods, the applicant has to raise the tax invoice addressed to the foreign buyer. Since it is an intra-State supply, he has to collect the CGST and SGST […]...

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18% GST payable on service provided to NCBS

In re Hombale Constructions And Estates Private Limited (GST AAR Karnataka)

The works contract service provided by the applicant to NCBS, is liable to tax at: 18% (CGST+SGST) as it is covered under item no. (xii) of Serial No.3 of Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017 as amended from time to time...

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Kraft paper/ paper honeycomb board classifiable under heading 48089000

In re LSquare Eco Products Pvt Ltd (GST AAR Karnataka)

In re LSquare Eco Products Pvt Ltd (GST AAR Karnataka) Whether the HSN code applicable for kraft paper made honeycomb boards be 48081000 or 48089000? On verification of the structure and purpose for which kraft paper honeycomb board or paper honeycomb board used are similar to the corrugated paper board (listed under 48081000), only diffe...

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Retrofitted vehicle merits classification under heading 87112019

In re Sai Motors (GST AAR Karnataka)

In re Sai Motors (GST AAR Karnataka) The retrofitted vehicle merits classification under heading 8711 20 19 and hence attracts GST @ 28% and applicant is entitled for input tax credit of tax paid on purchase of vehicle i.e. scooter. FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA ORDER UNDER SECTION 98(4) OF […]...

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Measures for MSMEs under PMs ‘Atmanirbhar Bharat Abhiyaan’

Measures for MSMEs under Prime Ministers (PMs) ‘Atmanirbhar Bharat Abhiyaan’ (Self- Reliant India Movement) A. Background On 13th May 2020, the Prime Minister Shri Narendra Modi announced his Vision calling for ‘Atmanirbhar Bharat Abhiyaan’ (Self- Reliant India Movement). He proposed Five pillars of Atmanirbhar Bha...

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Posted Under: Corporate Law |

Appointment & Rotation of Directors & Concept of First Directors

DIRECTOR: As per section 2(34) ‘director’ means a director appointed to the Board of a company. There are various category of directors given under the Companies Act, 2013 for example: Managing Director, Whole Time Director, Part time Director etc. Types of Directors on the basis of time of Appointment: 1) First Director 2) Su...

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Posted Under: Corporate Law |

Disclosure of Impact of COVID-19 on operation of Listed Entities

SEBI circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/84 Dated MAY 20, 2020 read with SEBI/ CIR/CFD/CMD/4/2015 Dated September 09, 2015: ‘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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Posted Under: Corporate Law |

Is apprehension of bias a valid ground to substitute IRP

State Bank of India Vs. Metenere Ltd. (NCLAT)

NCLAT concluded that the apprehension of bias expressed by the ‘Corporate Debtor’ qua the appointment of Verma as proposed IRP is valid and cannot be dismissed. Further, it contended that the NCLT order was justified in seeking substitution of Verma to ensure that CIRP is conducted in a fair and impartial manner....

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Posted Under: Corporate Law | |

New Form 26AS -Annual Information Statement

CBDT Notifies New Annual Information Statement (AIS) to replace Form 26AS to report TDS, Foreign Tax Credit, and more CBDT Notifies New Annual Information Statement (AIS) to replace Form 26AS to report TDS, Foreign Tax Credit, and more: CBDT has notified vide Notification No. 30/2020 dated 28.05.2020 the new Annual Information Statement (...

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Posted Under: Corporate Law |

Section 68: Issue of shares in lieu of shares was not unexplained credit

ITO Vs Bhagwat Marcom Pvt. Ltd. (ITAT Kolkata)

The issue under consideration is whether the addition u/s 68 on account of share capital and share premium by treating the same as unexplained cash credit is justified in law?...

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MSME Status Verification By Buyer

Micro, Small and Medium Enterprises (MSME) is the most dynamic and vibrant topic of Indian economy. Now days, government has introduced a lot of schemes and provided a lot of packages to MSMEs to uplift them vis a vis economy. For detailed knowledge about MSME, MSMED Act, 2006 and related other provisions, kindly refer to […]...

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Posted Under: Corporate Law |

Incorporation of Company Under Spice+

One of the major decisions for any businessman is to incorporate their company and running business as company. All the big business run in the form of Company. In India, companies are incorporated under The Companies Act, 2013 and its related rules. Recently, there has been major change in way of incorporating a company by […]...

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Posted Under: Corporate Law |

Major Income Tax changes for the month of May, 2020

There are changes /updated by Ministry of finance in certain provision and rule of income tax due to consideration  of COVID-19 which is being shared for the benefits of everyone at all in one place. 1.  The CBDT  has modified the norms for Mutual Agreement Procedures (MAP) by prescribing two years as the average time-frame for res...

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Posted Under: Corporate Law |

Lockdown 5.0: New MHA guidelines on Phased re-opening

Release ID: 1627965 (30/05/2020)

Ministry of Home Affairs New Guidelines to fight COVID-19 to be effective from 1st June 2020 Strict enforcement of lockdown in Containment Zones, which are to be demarcated by State/ UT Governments based on Health Ministry guidelines Phased re-opening of all activities outside Containment Zones; Unlock 1 to have an Economic focus Night Cu...

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Stamp Duty & Registration charges for execution of Lease Deed allowable

R. Systems International Ltd Vs ACIT (ITAT Delhi)

The issue under consideration is whether A.O. is correct in disallowing claim of stamp duty and registration charges by considering it as capital expenditure?...

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Employee Share Based Payments and Its Taxation Aspects

ESOPs is one of the best ways to incentivise employees, and to retain them for a long period of time. It works as a catalyst for the employees’s growth as well as for the growth of the company. There are other options such as ESPP and SARs which are similar to ESOP.  This article also […]...

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Posted Under: Corporate Law |

Surrender of DIN- Procedure and Relevant Formats

Article explains Procedure for SURRENDER OF DIRECTOR IDENTIFICATION NUMBER (DIN) alongwith relevant Rules and Provisions of COmpanies Act, 2013. Article also explains How a person can surrender his extra DIN, if he have multiple of DIN, Procedure for Filling of Compounding Application with the Regional Director in Form GNL-1, Procedure fo...

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Posted Under: Corporate Law |

Stock Market Philosophy – For Beginners

It is a common sight of small investors, who are new to the stock market, trying their so-called luck, squandering money, getting dejected and forever staying out of the market. For those who are interested in the stock market, but have not been able to make their way through it due to inexperience or misinformation, […]...

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Posted Under: Corporate Law |

Work from home is good #WFH

Virus from China has changed work environment everywhere. Epidemic nature of this virus had forced business community to allow its employees to have Work from Home (WFH). Earlier this was seen as facility offered for Work life Balance, now it is Business Continuity Plan (BCP). However effective use of WFH is need of hour. Giving […...

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Posted Under: Corporate Law |

Step by Step Procedure to file LLP Annual Return (Form-11)

In this article, I am going to explain about how to file LLP annual return i.e. Form-11 of LLP. WHAT IS LLP FORM -11? Form-11 is an annual return of LLP, it is mandatory annual compliance for all LLPs, irrespective of turnover or profit or business activity. Annual return or Form-11 includes the details of […]...

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Posted Under: Corporate Law |

IBBI imposes penalty of ₹ 34 Lakh on IP for non-Adherence to provisions of IBC code

Notification No. IBBI/DC/24/2020 (30/05/2020)

Adherence to provisions of the code is the first and foremost duty of an IP. It is incumbent upon IPs to build and safeguard the reputation of the profession which should enjoy the trust of the society and inspire confidence of all the stakeholders....

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Canteen Recovery: A ‘paraplegia’ under GST

Provision of canteen facility to employees, as a part of their pay package, is not a supply per se and accordingly no GST needs to be charged on such perquisites....

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Posted Under: Corporate Law |

HC allows bail to accused director since trial not possible due to lockdown

Aditya Kumar Bhandari Vs Serious Fraud Investigation Officer (Delhi High Court)

Bail was allowable to accused director of fraud on the reason that he was not the signatory to the alleged False Statement in the balance sheet of the Company and there was no loss caused either to any financial institution or Central/State Government and moreover, the trial proceedings is not possible within the reasonable time because o...

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Taxability of Indirect Transfer of Indian Assets

1. Background When a foreign Company holds shares of foreign companies which having substantial interest in Indian entities and derive their value from Indian assets. In this article we are addressing  if a company transfers its stake of Foreign entity outside India whether capital gains will be applicable on the said transaction. This A...

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Posted Under: Corporate Law |

A Quick Overview on 5 Recent Judicial Rulings in GST

Article summarises 5 recent Judicial ruling in which it was held that 1. Order of Prohibition passed by DC without authorization is invalid 2. Best Judgement assessment cannot be invoked on failure to file GSTR-3B 3. The ex-parte assessment order passed during lockdown period needs to be Quashed 4. No GST on Whole Time Director’s [&hell...

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Posted Under: Corporate Law |

Grounds before ITAT can be raised even if no cross objection filed before CIT(A)

Sanjay Sawhney Vs PCIT (Delhi High Court)

Rule 27 embodies a fundamental principal that a Respondent who may not have been aggrieved by the final order of the Lower Authority or the Court, and therefore, has not filed an appeal against the same, is entitled to defend such an order before the Appellate forum on all grounds, including the ground which has been held against him by t...

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Government securities Market in India – RBI ‘s recent guidelines

History repeats itself with the second article of mine, updated with latest instructions on government securities, particularly after the first one published in 2018 on the same subject. Introduction of an electronic screen-based trading system, dematerialized holding, straight through processing, establishment of the Clearing Corporation...

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Posted Under: Corporate Law |

GSTR9 Form FY 2018-19 Related Some Illustrations & Solutions

OUTPUT LIABILITY OF POINT 4, 10 & 11 of GST ANNUAL RETURN FY 2018-19 Sales Part Illustration Illustration -1 Illustration -2 Illustration -3 Particulars IGST CGST SGST IGST CGST SGST IGST CGST SGST Sales as per Books FY 18-19 42000 30000 30000 42000 30000 30000 42000 30000 30000 Sales Returns as per Books FY 18-19 […]...

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Posted Under: Corporate Law |

Meetings via VC Or OAVM | Practical Aspects, Requirements & Step wise Process

Practical Aspects - How To Undertake Meetings Through Video Conferencing (VC) Or Other Audio Video Means (OAVM), Known As Electronic Mode, Its Requirements With Step By Step Process...

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Posted Under: Corporate Law |

Section 194K TDS on Dividend Income in Respect of Units of Mutual Funds

INSERTION OF NEW SECTION 194K FOR TDS ON DIVIDEND INCOME IN RESPECT OF UNITS OF MUTUAL FUNDS Background 1. Existing Tax Regime: How STT came into picture? a. When some taxpayers started evading tax on capital gains by not showing the details of gain on the sale of stocks b. The Finance Act, in 2004, […]...

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Posted Under: Corporate Law |

How to view Inward Supplies Return GSTR-2A

When the supplier uploads the B2B transaction details in GSTR-1& 5/ & ISD details will be auto-populated on submission of GSTR-6 by the counterparty / & TDS & TCS details will be auto-populated on filing of GSTR-7 & 8 respectively by the counter party....

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Posted Under: Corporate Law |

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