"03 June 2020" Archive

GST Compliances in Case of GTA

Background of levying tax on the services of Goods Transport Agency The levy of Service Tax on Road Transportation Service has always been a debatable issue. The Finance Act, 1997 and 2004 had levied Service Tax on Goods Transport Operators (Transport of Goods by road) w.e.f. 16-11-1997 and 10-09-2004 respectively, which was subsequentl...

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GST Series Part 9 – Eligibility & Conditions for taking ITC | Section 16 | CGST Act

GST Series Part 9 – Eligibility & Conditions for taking Input Tax Credit (ITC) under Section 16 of CGST Act, 2017 Section 16 is one of the most important sections for the Input Tax Credit (ITC) it provides the ITC eligibility and conditions for smooth sailing of business. It is the first test for moving […]...

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Mere bald assertions by AO in reasons for reopening would confer valid jurisdiction to AO to Reopen?

Each aspect of Section 147 has been a subject matter of careful scrutiny by the court of law. One such main issue is with respect to the validity of the assumption of jurisdiction by the AO to reopen the assessment beyond four years, merely by making a Bald Assertion in the reasons as to the failure of the Assessee to disclose fully and t...

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Salaried individuals to brace up for new questions from tax authorities in tax returns

Salaried individuals to brace up for new questions from tax authorities in their tax returns Are you salaried individual earning below INR 50 lakhs per annum filing the simple ITR-1? Still get ready to answer the new questions that the tax authorities would seek from you for this year onwards. The income tax department yesterday […...

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First Time Dual Income Tax Rates For Individuals in Income Tax

Every time the Finance Minister makes the changes in the Income Tax at the time of presentation of annual budget proposals. This year a historical change is announced by the Finance Minister along with the various provisions that keep changing in the Budget, 2020. A new section (Section 115BAC) is added in the Income Tax […]...

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Tax on Digital Companies in India & Scope of Equalisation Levy

Taxation On Digital Companies In India And Scope Of Equalisation Levy After the liberalisation, territorial boundaries were no longer a restriction for businesses and enterprises, so an international market for various kinds of products and services emerged. Businesses have come ahead in the economic sphere to carry out trade activities a...

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Corporate Regulatory Updates May 2020

Covid 19 cases in India are inching closer to 2 Lakh cases. The Hon’ble PM has made announcement on May 12, 2020 of the special economic package of Rs. 20 lakh Crores (~USD 267 billion) i.e. approximately 10% of India’s Gross Domestic Product (GDP) and the call for building a self-reliant (Atmanirbhar Bharat) India., with […]...

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Govt imposes anti-dumping duty on Electronic Calculators

Notification No. 12/2020–Customs (ADD) [G.S.R. 345 (E)] (03/06/2020)

Notification No. 12/2020–Customs (ADD)– Seeks to impose anti-dumping duty on ‘Electronic Calculators of all types [excluding calculators with attached printers, commonly referred to as printing calculators, calculators with ability to plot charts and graphs, commonly referred to as graphing calculators and programmable calcu...

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Govt extends anti-dumping duty on ‘Hot Rolled Flat Products of Stainless Steel of ASTM Grade 304

Notification No. 11/2020-Customs (ADD) (03/06/2020)

Notification No. 11/2020 -Customs (ADD)- Seeks to amend No. 28/2015-Customs (ADD), dated the 5th June, 2015 so as to extend anti-dumping duty on ‘Hot Rolled Flat Products of Stainless Steel of ASTM Grade 304 with all its variants as per the detailed description hereunder’ originating in or exported from People’s Republic of China, M...

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Guidance on applicability of SS-1 and SS-2

Clarification/ Guidance on applicability of Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2). As you are aware, Section 118(10) of the Companies Act, 2013 provides for mandatory observance of SS-1 and SS-2 by all companies....

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Change in criteria of unit under MSME Act

Earlier the MSMEs were defined on te basis of th investment made by them however now the revised definition has been brought by the Government of India while delivering the economic package as part of the AAtmnirbhar Bharat Abhiyan and further  change has been approved in the definition of the MSMSe to provide equity support […]...

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The Homeless plight of Income Tax Department Under IBC

The enactment of Insolvency and Bankruptcy Code, 2016 (IBC) is a remarkable and commendable step taken by the central government to provide a regulatory framework by consolidating all previous enactments and providing a time-bound resolution to the financial and operational creditors to recover their debts from corporate debtor effectivel...

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TNVAT: Excess ITC at year end has to be refunded, No adjustment against Future liability

Tvl. M. R. Motor Company Vs Assistant Commissioner (CT), (FAC) (Madras High Court)

The issue under consideration that whether the Department was justified in disallowing the refund of claim on the ground that the petitioner was still in business and was adjusting the amount regularly?...

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Guidance on Money Laundering & Terror Financing Risk Assessment by NBFCS

Guidance On Money Laundering (ML) And Terrorist Financing (TF) Risk Assessment By Non-Banking Financial Companies (NBFCS) LEGAL REQUIREMENTS ML/TF RISK ASSESSMENT: Reserve Bank of India has issued Notification w.r.t. Internal ML/TF Risk Assessment by Regulated Entities – Amendment to Master Direction (MD) on KYC, where Regulated Ent...

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Regulator’s Steps on disclosure of Impact of Covid-19 by Companies

INTRODUCTION  With the pandemic creating a turmoil worldover what is equally important now for Businesses is to plan their steps keeping in view the range of Risks that can walk across ones path. Challenges being faced by companies is quite known to the Regulators as they seek to bring more directions in Disclosures and Transparency. [&h...

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Proceedings cannot be quashed merely for delay in launching: SAT

Pooja Vinay Jain Vs SEBI (Securities Appellate Tribunal)

In the present case, the appellant neither put a plea of prejudice before the AO nor before us. It was simply stated that since the proceedings were launched by respondent SEBI after a period seven years, the same should be quashed on the ground of delay. The record would show that all the documents concerning the defense of the appellant...

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Candlestick Charts: An Insight Into Market Sentiments

We keep coming across trade analysts talking about candlestick charts to analyze the trends in stocks or broader stock market. The difference between the bar/line charts and the candlestick charts is that the former will show you the price whereas the latter will also show the force and the direction associated with the force of […...

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Exports not to be counted in turnover for MSME classification

Release ID: 1628925 (03/06/2020)

Ministry of MSME gears up to implement the New Norms of classification of MSMEs As stated earlier, the upper ceiling for classification of MSMEs now has been raised New definition and criterion notified; will come into effect from 1st July, 2020. As part of new definition, Exports will not be counted in turnover for any enterprises whethe...

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Ministry notifies New Norms of classification of MSME

Key Highlights: -Ministry of MSME gears up to implement the New Norms of classification of MSMEs -the upper ceiling for classification of MSMEs now has been raised –New definition and criterion notified; & will come into effect from 1st July, 2020 -Exports will not be counted in turnover for any enterprises whether micro, small ...

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ITAT allows set-off of Derivative losses against Business Income

Magic Share Traders Ltd Vs ITO (ITAT Ahmedabad)

Magic Share Traders Ltd Vs ITO (ITAT Ahmedabad) The issue under consideration is whether a company dealing in ‘derivatives’ could be considered as engaged in speculative business as per Section 73 or not? In the present case, the assessee seeks set off of losses arising from derivative losses as non-speculative business losses. The Re...

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Draft Guidance Note on Report U/s. 92E of Income Tax Act, 1961

Following is the Exposure Draft of the Guidance Note on Report under section 92E of the Income-tax Act, 1961 (Transfer Pricing), issued by the Committee on International Taxation of ICAI for comments. Changes have been made to the extent of amendments made by the Finance Act, 2017....

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Supply outside the territory of India not taxable in GST

Company is manufacture of die casting of Aluminum and Zinc in India and on the request of the Foreign buyer and as the drawing company manufacture die for certain years use it die for export of product to buyers. At last, foreign buyer asked to Scrap the die. Second, the die was made in Singapore […]...

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HC imposes Penalty for not following social distancing during Marriage

Renu Devi and another Vs State of Punjab and others (Punjab & Haryana High Court)

Renu Devi and another Vs State of Punjab and others (Punjab & Haryana High Court) Perusal of the photographs attached with the petition, shows that at the time of marriage ceremony, the petitioners and other attending persons were not wearing the masks, which is otherwise necessary in view of COVID-19 pandemic. Accordingly, the petiti...

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Hostel Facility by Charitable Educational Trust cannot be held as business

Harish Chand Ram Kali Charitable Trust Vs Add. CIT (ITAT Delhi)

Harish Chand Ram Kali Charitable Trust Vs ACIT (ITAT Delhi) The issue under consideration is whether the CIT(A) is correct in concluding that the hostel running activity is a business activity? The assessee society was established with the aim to impart education and other charitable activities covered under section 2(15) of The Income Ta...

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MSBTE is ‘State’ under Indian Constitution & Exempt from Income Tax

Maharashtra State Board of Technical Education Vs ITO (ITAT Mumbai)

The issue under consideration is whether CIT(A) is correct in holding that the appellant is not a state under Article 289 of the Constitution of India and therefore, liable to tax under the Income Tax Act?...

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Concept of Woman Director under Companies Act, 2013

Earlier under Companies Act, 1956 there was no such provision under which appointment of woman has been made compulsory for Companies but with the introduction of The Companies Act, 2013, a sub section and rule related to the mandatorily appointment of Woman Director in the Board of  Directors has been inserted. This not only empowers [&...

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Repercussion on Sale & Purchase of Dies under GST

The recent ruling pronounced by the Karnataka Authority for Advance Ruling (‘AAR’) in case of M/s. Dolphine Die Cast (P) Ltd, In the present case, the applicant is in the business of manufacturing and exporting of Aluminium and Zinc die castings. The applicant sought the advance ruling in respect of repercussions under GST on the [&he...

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Audit Committee | Companies Act, 2013 & SEBI (LODR) Regulations

The primary purpose of a company’s audit committee is to provide oversight of the financial reporting process, the audit process, the company’s system of internal controls and compliance with laws and regulations. This Committee is sometimes set up as the requirement of law and sometimes setting up as adoption of best prac...

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Ministry of Home Affairs Guidelines for Phased Re-opening (Unlock 1) 

As we were approaching nearer to the end of lockdown 4.0 , on 30th  May 2020 , Ministry of Home Affairs (MHA) released a new guideline for reopening the nation (Unlock 1) in a phased manner, starting with None- Containment Zones. The Lockdown in the Containment Zones will continue till June 30, 2020. The Lockdown […]...

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Update on Annual Financial Statement – Form 26AS

1. CBDT vide Notification No. 30/2020-Income Tax/G.S.R. 329(E) May 28, 2020 amended Form 26AS in Sec 285BB w.e.f. 01.06.2020. 2. Key takeaways are: 3. New form 26AS will also provide information in respect of ‘Specified financial transactions’ which include transactions of purchase/ sale of goods, property, services, works con...

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Right Issue of Shares Under Companies Act 2013 & Rules

Concept  of Right Issue of Shares Under Companies Act 2013, Applicable Rules & Sections for Right Issues under Company Law, Conditions for the offer of Right Share to existing equity shareholders, Forms to be filed with ROC for Issue of Right Shares, Step-wise Procedure for Right Issue of Shares, Penalty for failure to adhere with [&...

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E-form spice+ to incorporate a new company: Easy or Cumbersome?

The ministry of corporate affairs has introduced a new eform spice + to incorporate a company and claims it is very easy procedure. Whether it is really so, Let’s examine it from various points of views: submission of forms:  The form is divided into two parts:- Part A : for reservation of name. Part B: […]...

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FOSCOS (Food Safety Compliance System) Launched By FSSAI

FOOD SAFETY COMPLIANCE SYSTEM (FoSCos)- A new system launched by FSSAI –which is effective from 01.06.2020. This the best initiative taken by our Government for the best utilisation of the services provided by FSSAI in regulated manner. This new system has replaced the existing Food Licensing and Registration System (FLRS). FLRS has bee...

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Summary of Various Reliefs provided to Taxpayers in GST (Updated)

Summary of Various Reliefs provided to Taxpayers in GST Due to COVID-19 pandemic and challenges faced by taxpayers, Government has extended dates for GST filings. These are notified vide Notifications 51 to 54/2020 dated 24.06.2020 and Notification No 57/2020-CT dated 30.06.2020. A Circular No. 141/1/2020-GST dated 24th June, 2020 has als...

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Section 54F – No disallowance for non Compliance of procedural requirement

Shri Kasi Viswanathan Ramnathan Vs ITO (ITAT Chennai)

Shri Kasi Viswanathan Ramnathan Vs ITO (ITAT Chennai) The issue under consideration is whether the denial of exemption under section 54F by CIT(A) is justified in law? In the present case, assessee has claimed the exemption u/s 54F in the return including the amount which had not been utilized before 31.07.2012. But later the assessee...

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Master circular for Third Party Administrators (TPAs)

Circular Reference No. IRDAI/TPA/REG/CIR/130/06/2020, (03/06/2020)

Insurance Regulatory and Development Authority of India MASTER CIRCULAR Master Circular as per the provisions of IRDAI (Third Party Administrators — Health Services) Regulations, 2016 and subsequent amendments thereof, applicable to all applicant TPAs, registered TPAs and insurers carrying out health insurance business. Circular Referen...

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Which ITR applicable to whom for FY 2019-20/AY 2020-21

Brief on Applicability of Income tax return (ITR) form for Financial Year (FY 2019-20)/Assessment Year (AY) AY 2020-21 All the taxpayers are mandatorily required to file their ITRs electronically except individuals over the age of 80 years who have the option of filing the ITR in paper format as well. First step would be to […]...

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Res Judicata – Section 11 of Code of Civil Procedure, 1908

1. The principle of res judicata is based on the need of giving a finality to judicial decisions. 2. What it says is that once a res is judicata, it shall not be adjudged Primarily it applies as between past litigation and future litigation....

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Green IP – The way forward to sustainability

Going green is not an option but necessary for continuous survival of human existence. Building a way forward to a green future is a 21st century imperative. The impact of climate change and need to act to preserve the environment is felt across the globe. Companies, Bureaucrats and Governments have unitedly begin to take action […...

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Medical Devices- A Perspective & Medical Devices (Amendment) Rules, 2020

INTRODUCTION Before any rules  were notified for medical devices, they were being governed solely by the dated and redundant Drugs and Cosmetics Act, 1940 with no specific provisions or aspects pertaining to the regulation of medical devices in India. A need was felt to bring medical devcies under a specific rules with an important motiv...

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Analysis of Consumer Protection Act, 2019

PRELUDE The Consumer Protection Act, 2019 (the Act) was introduced in the Lok Sabha by Mr. Ram Vilas Paswan, the Minister of Consumer Affairs, Food and Public Distribution, on July 8, 2019. The Consumer Protection Bill, 2019 was passed by the Lok Sabha on July 30, 2019 and the Rajya Sabha on August 06, 2019. […]...

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Interplay between validity of Arbitration Agreements & stamping requirements

It is incumbent upon the Courts to see the validity of an arbitration agreement, that it passes the test of the requirement of Indian Stamp Act, 1899, before considering an application under Section 11 of the Arbitration & Conciliation Act, 1996....

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Atmanirbhar Bharat Abhiyaan – A Call to Nation for Self-Reliance

With the unabated COVID-19 virus that is spreading fast, the Country is in a serious Crisis – Internally as well as Externally. National tensions already at high levels not seen in a generation over various issues like Article 370 to CAA and related protests, escalated into political unrest, violence, and conflict and uproar by some ...

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Further revision in the definition of MSME

MSME definitions revised further to include firm with upto Rs. 250 Crore Turnover Highlights: 1. As per new definitions, a firm with up to Rs. 50 Cr. investments and upto Rs. 250 crore is classified as a medium enterprise. 2. Union cabinet has approved further changes to definitions of MICRO, SMALL & MEDIUM enterprises, a […]...

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Highlights of all changes in GST for the month of May, 2020

1. GST on Directors Salary has been put to rest by a recent decision of the Authority for Advance Rulings (AAR), Karnataka bench. AAR bench has clarified that if the director is an employee of the company, there will be no incidence of GST. However, if the director is a non-executive director (that is, a […]...

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Interplay between Patents and Tradesecrets

Claudio De Simone & Ors. Vs. Acital Farmaceutica SRL. & Ors. (Delhi High Court)

Claudio De Simone & Ors. Vs. Acital Farmaceutica SRL. & Ors. (Delhi High Court);  CS(OS) 576/2019, IA No.15741/2019, 17.03.2020 FACTS In the present case, Plaintiff No. 1 was an inventor of a US patent formulation namely; De Simone Formulation. The said formulation is highly concentrated bacterial formulation beneficial for phar...

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Supreme Court on Waiver of Right to Object in Arbitration

Quippo Construction Equipment Limited Vs Janardan Nirman Pvt. Limited (Supreme Court); Civil Appeal No. 2378 of 2020; Dated: 29/04/2020  FACTS The Respondent, a business of infrastructure development activities approached the Claimant who is engaged in a business of providing equipment for infrastructure activities. The Claimant gave cer...

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PM Modi launches the technology platform Champions

Prime Minister Shri Narendra Modi today launched the technology platform CHAMPIONS which stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength....

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CESTAT on Refund of CVD & SAD – Paid to regularize import under Advance Authorization

Servo Packaging Ltd. Vs. Commissioner of GST & CE, Puducherry (CESTAT Chennai)

In this case, the Hon’ble Tribunal decided in favour of the Appellant with respect to availability of the Cenvat Credit. Once it is admitted fact that the Appellant was eligible to avail Cenvat Credit of the duties i.e., CVD and SAD, the Appellant is eligible to claim refund of the said Cenvat Credit in terms of Section 142(6) of the CG...

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Annual Information Statement (Form 26AS)- More than just Tax Paid History

The government has introduced new section 285BB vide Finance Act, 2020 replacing the existing section 203AA of the Income Tax Act, 1961 (Act) which will now allow the income tax authority to produce additional information which is necessary and to the extent is in the interests of Revenue in Form 26AS. Old and New Provisions […]...

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GST on Revenue Sharing Development Agreement & AAR Rulings

In a revenue sharing agreement the developer is providing taxable service to land owner. The value of the service is equivalent to the share of Developer in the market value of developed plots sold in the project....

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Time limit for claiming credit of GST paid under reverse charge

Section 16(4) of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017), provides the time limit for claiming credit under GST. As per the said section, a registered person can claim credit pertaining to an invoice or a debit note for supply of goods and services earlier of: 1. Due Date of furnishing […]...

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EPF & ESI – Forms used and Legal Compliance

Basis EPF ESI 1.) Acts Applicable The Employees’ Provident Funds And Miscellaneous Provident Act, 1952. Employees’ State Insurance Act, 1948 Extends to Whole INDIA Whole India 2.) Name of Scheme Employees Provident Fund Scheme. 3.) Organisation Employees’ Provident Fund Organization (EPFO). Employee’s State Insurance Corporation (...

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TDS, TCS Compliances & Impact of Covid-19 Thereon

In this article we will discuss in detail about Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) along with updated TDS Rate Chart and TCS Rate rate chart amidst the outbreak of COVID-19 and lockdown: TDS Compliances And Impact of Covid-19 Thereon TDS Deductor and Deductee TDS is basically income tax deducted […]...

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