"04 June 2020" Archive

Tackling the Ambiguities of Intermediary Service under GST

Among the many contentious tax levy, the dilemma if a service is classifiable as an Intermediary Service shall perhaps never lose limelight. There has been various discussions and opinions put forth regard this, but the decisions in recent Advance Rulings is opening up a pandora box of unanswered questions for companies to ponder upon. Th...

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Covid-2019, Economy and GST

We are now in June, 2020 and India moves into the orbit of Lockdown 5.0 or Unlock 1.0 as most of the restrictions get lifted and businesses and life being allowed to move on, of course with Covid -19 on board. The economy has been announced to be opened up to a large extent, though […]...

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Dealing with reassessment under Income Tax Act, 1961

As per section 2(8) of the Income Tax Act, 1961, the term assessment includes re-assessment. Meaning of income escaping assessment: As per the provisions contained in section 147 of the Income Tax Act, 1961, if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, [&h...

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GST Compliance for Resolution Professional (RP) during CIRP

As per IBC, once an entity defaults certain threshold amount, Corporate Insolvency Resolution Process(CIRP) gets triggered and the management of such entity (Corporate Debtor) and its assets vest with an interim resolution professional (IRP) or resolution professional (RP). It continues to run the business and operations of the said entit...

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ITC on expenses incurred on account of Covid-19 under GST Act

Companies need to examine all the expenditures specially related to employee welfare and safety and should evaluate eligibility of input tax credit considering obligations imposed by MHA. It may happen that department has different point of view on some credits. Hence, once need to examine all related aspects and facts of the businesses b...

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Safe Harbour – The Income Tax Rules

Safe Harbour – What is means Safe harbour refers to a legal provision to reduce or eliminate liability in certain situations as long as certain conditions are met. In other words, it refers to the circumstances under which the Income Tax authorities shall accept the transfer price declared by the assessee and the same shall […]...

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GST Activities – June 2020 – Crammed with compliances

Owing to the difficulties faced by taxpayers due to Covid-19, the Indian Govt. has earlier undertaken various relief measures in April 2020 by way of providing relaxations in the last dates for undertaking various GST compliances. In view thereof, this month i.e. June 2020 is very crucial, since almost all the compliances for which relief...

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Multilateral Instruments : A beginning

The Multilateral Convention / Multilateral Instrument to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, sometime abbreviated BEPS multilateral instrument, is a multilateral convention of the Organisation for Economic Co-operation and Development to combat tax avoidance by multinational enterprises throu...

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No Section 194H TDS on discounts on prepaid SIM Cards or Talktime 

ACIT Vs Vodafone South Ltd (ITAT Chennai)

The issue under consideration is whether TDS u/s 194H is applicable on discounts allowed for prepaid SIM Cards/ Talktime as distributor margin?...

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Last minute checklist for filing of ITR 1 of Financial Year 2019-20

ITR-1 form for A.Y. 2020-21 released for e-filing by Income Tax Department. What is Income Tax Filing Process? Income Tax Filing is the process of declaring your taxable income, deductions and tax payments for the applicable financial year. What is the due date for ITR Filing for A/Y 2020-21? The last date for filing tax […]...

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New personal concessional tax regime – is it a smart option?

Finance Act 2020, has recently introduced new concessional personal tax regime, (New tax regime), by inserting Section 115BAC with effect from Financial year 2019-20....

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Intricacies in Benami Law

In recent times, the most complex question which has been pondered upon is in relation to the implications of Benami Law and Income Tax Act on the issues of share capital, loans, gift, gold/ jewellery, cash, immovable property or any investment/expenditure....

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Selection of comparable can be challenged even if same clears filters

PCIT Vs Open Solutions Software Services Pvt. Ltd. (Delhi High Court)

Since none of the comparables had been excluded on the ground of high turnover alone, the test of functional similarity applied by the Tribunal was in consonance with the legal position and moreover, assessee could not be denied a chance to challenge the inclusion of a comparable merely for the reason that the selected comparable cleared ...

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CFSS-2020: Now or Never opportunity for Non-Compliant Company

Companies Fresh Start Scheme, 2020 is applicable on all active companies which is a ‘defaulting company’, i.e. the companies which have any documents which are pending for filing on any given date, as per the provisions of Scheme....

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5 SOPs on preventive measures to contain spread of COVID-19

No 128015/19/2020-EMR (Pt.) (04/06/2020)

Govt has released SOP on preventive measures to contain spread of COVID-19 in offices, SOP on preventive measures to contain spread of COVID-19 in religious places, SOP on preventive measures to contain spread of COVID-19 in hotels and other hospitality services, SOP on preventive measures to contain spread of OVD-19 in restaurants and SO...

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Apprehension of bias is valid ground to substitute IRP: NCLAT

State Bank of India Vs Metenere Ltd. (NCLAT)

State Bank of India Vs Metenere Ltd. (NCLAT) The fact that the proposed ‘Resolution Professional’ Mr. Shailesh Verma had a long association of around four decades with the ‘Financial Creditor’ serving under it and currently drawing pension coupled with the fact that the ‘Interim Resolution Professional’ is supposed to collate ...

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TNVAT: No Purchase Tax if yearly turnover was less than Rs. 300 crores

Sunrise Foods Private Limited Vs Assistant Commissioner (CT) (FAC) (Madras High Court)

Liability of Purchase Tax under Section 12 of the Tamil Nadu Value-added Tax Act, 2006 was not attracted in case assessee's turnover was also below Rs. 300 Crores during the year....

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Checklist for Due Diligence of a Company

Due Diligence of a Company is performed usually before any business sale, private equity investment. It is process of research and analysis that is initiated before an investment, acquisition, business partnership, joint venture or bank loan, in order to determine the value of the subject of the due diligence and to see whether there are ...

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Amendment of pleadings under order VI of rule 17 of CPC,1908

Amendment of Pleading ⇓ As per Order VI of Rule 17 of CPC, 1908 What is pleading? 1. Pleadings have been defined under Order 6 Rule 1 of CPC which states that Pleading shall be Plaint or Written Statements. 2. Plaint is the statements filed by the Plaintiff in a Civil Court to prove his […]...

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DGFT cannot Restriction Advance Authorisation through Public Notice

M. D. Overseas Limited Vs Union of India And Ors. (Delhi High Court)

The issue under consideration is whether the Public notice issued by DGFT for restricting the issuance of Advance Authorisation is justified in law?...

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Conversion of Section 8 company into Private Company

FIRST, WE UNDERSTAND THE MEANING OF SEC 8 COMPANY AND PRIVATE COMPANY SEC 8 COMPANY:  section 8 company is formed to encourage and nourish certain acts of art, education, science, sports , religion, charity, social welfare, research, protection of environment or any other related objective. The sec 8 company does not pay any bonus or [&h...

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FAQs on Old v/s New Income Tax Regime

The Union Budget 2020 has simplified taxation for taxpayers by proposing a brand new, “simplified” tax regime. The new tax regime lowers the tax rates for individual taxpayers. However, there’s a condition: they need to forego tax deductions and exemptions to avail the enticing lower rates. Several queries arises  during making...

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Penalty on petitioner for violation of COVID-19 measures by HC

Introduction As we all are aware, the corona virus (COVID-19) is spreading all over the world rapidly and to break the chain of COVID-19, several precautionary measures suggested by Government like home quarantine, maintain social distancing, wear masks etc. In a recent judgment, the High Court of Punjab & Haryana, has taken up the ma...

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Provisional Attachment Order to safeguard from creation of third party interest was justified

Tulsiram Vs ACIT (Chhattisgarh High Court)

The issue under consideration is whether the Provisional Order of Attachment for Pending Adjudication is justified in law?...

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Section 10 of CGST Act (Composition Scheme)

For the easiness of small entrepreneurs, section 10 is introduced in the CGST ACT 2017. In this section the assessee can get the registration as composition taxpayer in GST rather than normal taxpayer and pay lump sum of tax amount as per the prescribed rates. SECTION 10 (1) Notwithstanding anything to the contrary contained in […]...

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Declaration and Payment of Dividend

A company which fails to comply with the provisions of Section 73 ( Prohibition on acceptance of deposits from Public) and 74 (Repayment of Deposits, etc. accepted before commencement of this Act) shall not, so long as such failure continues, declare any dividend on its equity shares....

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TCS on Sale of Goods Section 206C(1H) explained in simple words

1. Applicable to those sellers whose total sales/revenue or gross collection exceeds 10 cr in preceding financial year. 2. Seller will collect TCS from his customers from whom collection exceeds 50 Lacs in current year. 3. TCS will be collected on amount collected over and above 50 Lacs. 4. TCS will be collected at the […]...

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Amendment in Equalisation Levy 2020

Equalisation Levy on E Commerce Operator (Applicable from 01.04.2020) Recently Finance Act has been passed on 27th March 2020 in which Section 165A has been added. In this, E Commerce Operators will pay equalisation levy @ 2% on the consideration received or receivable from the sale or provisioning of goods/services or facilitating the sa...

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General Financial Rules (GFR Rules)

The General Financial Rules (GFRs) are the general rules of Government of India (GOI) which are applicable to all Government Ministries/Departments. Exceptions are provided in the Rules. These rules are applicable in matters relating to Public Finance, that is, Matters relating to Revenue and Expenditure of Government. These rules were fi...

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36 Existing Schemes of MSME with Objectives & Benefits

Govt Introduce new Platform CHAMPIONS for MSMEs Know 36 Subsidy & Financial Assistance Scheme for MSMEs and Process to apply Online CHAMPIONS stand here for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. Accordingly, the name of the system is CHAMPIONS. As the name suggests...

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GST on ex-factory inter-State supplies

In re M/s. Penna Cement Industries Limited (GST AAR Telangana)

In re M/s. Penna Cement Industries Limited (GST AAR Telangana) In case of ex-factory inter-State sales affected by the applicant, the goods are made available by the supplier to the recipient at the factory gate, but this is not the point where movement terminates since the recipient subsequently assumes the charge for transportation of t...

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GST on Ice cream, allied products & milk shakes served in parlour

In re Sri Venkateshwara Agencies (GST AAR Telangana)

In re Sri Venkateshwara Agencies (GST AAR Telangana) Q1. Ice cream and ice cream allied products, milk shakes served in the parlour with or without adding ingredients like fruits or topping sauces according to the customer taste or requirements. Ans. For the period from 15.11.2017 to 30.09.2019 the supply falls under Sl.No. 7(i) of Not. [...

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GST on Cold Storage Leased on rent for storage of agriculture produce

In re Gubba Cold Storage Private Ltd. (GST AAR Telangana)

In re Gubba Cold Storage Private Ltd. (GST AAR Telangana) Q1. What are tax implications in GST regime using leased premises for Cold Storage purpose of agriculture produce on Leasing Charges. Ans: Taxable @ 18%. Q2. What are tax implications in GST regime on Cold Storage Leased  on rent for storage  with or without preservation [&hellip...

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All about CFSS-2020

Companies Fresh Start Scheme, 2020 Relevant Date ⇒ MCA Circular dated 30.03.2020 Enforceability ⇒ w.e.f 01.04.2020 till 30.09.2020 Purpose of the Circular Relevant Section ⇒ Section 403 & 460 of CA, 2013 1. To give opportunity to the defaulting Companies and to enable them to file the belated documents in the MCA-2 1 registry, 2...

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New way for getting Online IEC Application (New/Modification)

Earlier, we have to file physical application and documents for getting IEC. Lot of times consumed by physical mode and also it was cumbersome procedure. But, today is the era of Digitisation. Now, all the information’s and facilities are available online in easy way. It saves both the time and money and increases the chances […]...

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Section 7 of CGST Act 2017 -Scope of supply

Section 7 of CGST ACT 2017–  There are so many articles related to concept supply already available to all of us so I have tried to sum-up important points to kept in mind related to ‘supply’ –milestone of GST ACT. Section 7 (1)- (a)- Three points to remember- For purpose of this Act- √ Supply […]...

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All about Order 1 Rule 10 of Code of Civil Procedure ,1908

Order 1 Rule 10 of Civil Procedure Code, 1908 Suit in the Name of wrong plaintiff The general rule in regard to prosecution of parties is that the plaintiff in a suit, be dominus litis, may choose the persons against whom he wishes to litigate and cannot be compelled to sue a person against whom […]...

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Suggestions invited for amending Motor Vehicle Rules regarding registration of new vehicles, driving licences, and recall of old vehicles

Ministry of Road Transport and Highways has re-invited suggestions and comments from all stake holders including general public on the proposed amendment in the Motor Vehicle Rules regarding registration of new vehicles, driving licences, and recall of old vehicles....

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EPFO updates KYC for 52.62 lakh subscribers since 1st April, 2020

To extend the availability and reach of online services, which have become crucial in the wake of the COVID-19 pandemic, EPFO updated Know your Customer (KYC) data for its 52.62 lakh subscribers in the month of April and May 2020....

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CBIC notifies Rate of Exchange of Foreign Currencies wef 05.06.2020

Notification No. 49/2020-Customs (N.T.) (04/06/2020)

CBIC notifies Rate of Exchange of Foreign Currencies against India Rupees wef 05.06.2020 vide Notification No. 49/2020-Customs (N.T.), Dated: 4th June, 2020. Government of India Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) ***** Notification No. 49/2020-Customs (N.T.) New Delhi, dated the 4th J...

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IRDAI warns ‘IFFCO Tokio’ for furnishing wrong information

Ref. No: IRDAI/HLT/MISC/ORD/131/06/2020 (04/06/2020)

IRDAI warned IFFCO Tokio General Insurance Company Limited for furnishing wrong information under different lines of health insurance business and for delayed submission of health returns for FY 2018-19....

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IRDA extends time limit for Public Disclosures on websites

Ref. No: IRDA/F&A/CIR/MISC/132/06/2020 (04/06/2020)

IRDA clarified that time limit for ensuring compliance with directions regarding Public Disclosures on websites by insurers for the period ending 31st March 2020 is also extended by 30 days....

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SEBI relaxes compliance requirements pertaining to AIFs & VCFs

Circular No. SEBI/HO/IMD/DF6/CIR/P/2020/92 (04/06/2020)

AIFs and VCFs may submit the regulatory filings for the months ending March, April, May and June 2020, as applicable, on or before August 07, 2020....

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RBI extends timeline for compliance with various payment system requirements

RBI/2019-20/251 DPSS.CO.PD.No.1897/02.14.003/2019-20 (04/06/2020)

Keeping in view the present COVID 19 situation RBI extends the timeline for compliance in respect of a few areas under Section 10(2) read with Section 18 of Payment and Settlement Systems Act, 2007....

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Centre Releases ₹ 36400 Crore as GST Compensation to States

Central Government has released the GST Compensation of Rs.36,400 crore to the States/UTs with Legislature for the period from December, 2019 to February, 2020 today....

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Suspension of IBC: A Slick Move or an Impetuous Hindrance?

Mandatory procedures under Corporate Insolvency Resolution Process such as interim financing for insolvent assets, time-bound resolution process, and a creditor in control model may not be easily met under the present COVID-19-induced conditions. Another concern can be an over-burdened NCLT besides everything. These could be the probable ...

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NCLAT Rules on Pre-Admission Enquiries: Underpins that time is of the Essence

In the year 2016, the Indian Parliament completely overhauled the then existing framework governing insolvency and bankruptcy in India. The novel Insolvency and Bankruptcy Code, 2016 (Code) sets out a comprehensive and consolidated set of provisions, which seeks to provide a new trajectory to the sick industry regime in India. With a dire...

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December 2020