"07 June 2020" Archive

GST Rates on Construction Industry- An Analysis

In case of transferable development rights and long term lease by a landowner to a developer shall be exempted subject to the condition that the constructed flat are sold as under construction property and applicable GST is paid to the government....

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Apportionment of Credit and Blocked Credit under GST

Article Explains Basic Definition related to Apportionment of Credit and Blocked Credit under GST, Section 17(1) & 17(3) of CGST Act,2017, Section 17 (2) of CGST Act,2017  Read With Rule 42 and 43 of CGST Rules,2017, Section 17(4) of CGST Act,2017 Read With Rule 38 of CGST Rules,2017 and Section 17(5) of CGST Act,2017 (Block Credit)...

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Apportionment of Credit & Blocked Credits | Section 17 | CGST ACT | GST Series Part 10

GST SERIES PART 10 –APPORTIONMENT OF CREDIT AND BLOCKED CREDITS UNDER SEC 17 OF CGST ACT 1. Sec 17 of CGST Act 2017 and CGST Rules made thereunder provide for detailed provisions on Apportioned of Credit and Blocked Credits. It deals with the different situations that may arise for making admissible partial credits, a list […...

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Details Analysis of GST on Health Care Industry/Hospital

Good health and good sense are two of life’s greatest blessings, In the pre-GST regime, the health care services were not under the scope of levy of Service Tax. In the GST regime the Government instead of giving full exemption to health care services but minimizes the burden of tax by exempting certain health care services as a welfare...

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Important clarifications on Extended GST due dates falling in June 2020

The spread of Novel Corona Virus (COVID-19) across many countries of the world, including India, has caused immense loss to the lives of people and resultantly impacted the trade and industry. In view of the emergent situation and challenges faced by taxpayers in meeting the compliance requirements under various provisions of the GST Law,...

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All about “INPUT TAX CREDIT (ITC)” under GST Regime

Article explains about Input tax Credit (ITC) unbder GST, Taxes under GST to claim ITC, Conditions to claim ITC, Eligible persons to claim ITC, Manner to claim ITC, Manner to utilise ITC, Tenure to avail ITC, Allowance of ITC, Diallowance of ITC, Allowance / Disallowance of ITC – special points, ITC under reverse charge mechanism [&hell...

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Reverse charge (RCM) on renting of Motor Vehicle

Introduction: RCM on rent of Motor Vehicle was notified w.e.f. 01/10/2019 through notification no. 22/2019 CGST(rate) dated 30-09-2019. Later due to some confusions amendments and clarifications are introduced on 31/12/2019 through Notification No. 29/2019- CGST(Rate) and Circular No. 130/2019. Detailed study of the topic is as follows: D...

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AAR’s rejects Applications of Mauritius Entities for selling Flipkart shares

Re Tiger Global International II Holdings, Mauritius & Ors (Authority for Advance Rulings New Delhi)

Re. Tiger Global International II Holdings, Mauritius & Ors (Authority for Advance Rulings New Delhi) Facts: ♠ Tiger Global International (II, III, IV) were the applicants, the Mauritius based companies which holds several shares in the Flipkart Private Limited, the Singapore based Company, the company which derive its substantial v...

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Direct and Indirect Tax updates May 2020

DIRECT TAXES UPDATES Recent circulars/ notifications/ rules/ clarifications/News ♦ CBDT notifies new form for 26AS which shall also include information relating to assessee’s specified financial transaction (Information of property and share transactions etc.), payment of taxes, demand/ refund and pending / completed proceedings (Noti...

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Traditional Assessment to E-Assessment- Income Tax dept. getting Digital

Finance Act, 2019, amended the provisions of the Income Tax Act, 1961, (Act) to empower the government to notify a new tax assessment scheme, whereby the proceedings will be conducted entirely in an electronic mode....

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Fall in collection of direct taxes is on expected lines: CBDT

NA (07/06/2020)

There are reports in a certain section of media that the growth of direct taxes collection for the FY 2019-20 has fallen drastically and buoyancy of the direct tax collection as compared to the GDP growth has reached negative. These reports do not portray the correct picture regarding the growth of direct taxes....

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Checklist for filing of ITR 4 of Assessment Year 2020-21

ITR-1 & ITR 4 forms for A.Y. 2020-21 released for e-filing by Income Tax Department. Who are eligible to file ITR-4? -An Individual, HUF or Firm (other than LLP) who is ordinarily resident in India -Income from salary/pension (for ordinarily resident person). -Income from one house property but excluding brought forward losses and los...

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Section 14A apply on investment made for acquiring controlling interest 

Puran Associates Pvt. Ltd. Vs ACIT (ITAT Delhi)

Hence, the contention of the assessee investment made for acquiring controlling interest in Dabur India Ltd should not be subject to disallowance under section 14A is rejected....

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Key Changes in Filing of ITR forms for FY 2019-20 (AY 2020-21)

Key Changes in Filing of ITR forms Considering the COVID-19 pandemic, various relaxations have been provided under the statutory compliances and one of them is with respect to Filing of Income Tax Returns (ITR). During the current year, while filing the ITR one has to keep in mind various relaxations provided by the government as [&hellip...

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Comparison of Deduction under section 80TTA & 80TTB

Extract of Section – 80TTA – Deduction in respect of interest on deposits in savings account 80TTA. (1) Where the gross total income of an assessee (other than the assessee referred to in section 80TTB), being an individual or a Hindu undivided family, includes any income by way of interest on deposits (not being time [&hellip...

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How to calculate & report income from house property in ITR

In the income tax there are five heads to calculate and report income to department. One of those heads is Income from house property. Owning a house is everyone’s dream but with this dream there comes a responsibility to calculate tax on it. Let’s discuss about it. Question:1  What falls  under the House property? Answer: […...

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Impact of Section 194O on E commerce operator & participants

Tax deduction at source or Tax collected at source are the most convenient mode of tax collection by the government thus it is a tool to collect tax to minimize the tax evasion by taxing the income at the time when income generated and instead of taxing on a later date. A large number of […]...

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Income Tax Scrutiny assessment and how to avoid it

What is Income Tax scrutiny assessment and how are cases selected for scrutiny? Once an assesse files its Income tax return, IT department examines the return filed and if there are reason to believe that information declared by the assessee are incomplete or false , the through a notice u/s 143(2) of the Income tax […]...

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Mens Rea in Penalty in the GST

Introduction: – One of the most controversial and debatable issues under taxation law is, perhaps the application of mens rea while imposing penalty for violation of statutory provisions. A penal liability can arise either from a criminal or civil wrong. There are three aspects in penal liability and those are conditions, incidenc...

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SC: No exclusion of Lockdown Period for Limitation Purposes of Bank Instruments

SC: No exclusion of Lockdown Period for Limitation Purposes of Bank Instruments- RBI should issue directions The Supreme Court on June 3, 2020 dismissed a PIL of Advocate Harsh Nitin Gokhle  to exclude the time period of lockdown for calculation of  limitation for presentation of cheques. It was petitioned  that during the nationwide l...

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GST on preparation of Whole Wheat parota & Malabar parota

In re ID Fresh Food (India) Pvt. Ltd. (GST AAR Karnataka)

In re ID Fresh Food (India) Pvt. Ltd. (GST AAR Karnataka) Whether the preparation of Whole Wheat parota and Malabar parota be classified under Chapter heading 1905, attracting GST at the rate of 5%? Chapter 21, covers Miscellaneous Edible Preparations and heading 21.06 covers food preparations not elsewhere specified or included. Further ...

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Online tests scored after human intervention are outside the purview of OIDAR

In re NCS Pearson INC (GST AAR Karnataka)

In re NCS Pearson INC (GST AAR Karnataka) he applicant is an intermediary located in non taxable territory and provides services of online exams/tests via electronic software to the non taxable online recipients in India which he has classified into three categories. For activities mentioned under Type l, the applicant is clear regardin...

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Should ICAI conduct Exams in July & What about the Safety of Students?

Today a very dangerous and a critical situation of COVID 19 is going on around the whole world and the number of deaths and cases are going on increasing day by day and this has thrown all the countries economies into a very much backward moving situation. In this timing there is a lot of […]...

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IBC 2016 | New mechanism for resolution of distressed assets

Insolvency and Bankruptcy Code, 2016– A new-fashioned mechanism for resolution of distressed assets. It’s been 4 years since the inception of the code and it has shown unfailing progress in addressing the intent behind its enactment. Being a new enactment, periodic amendments have been made to structure the code as per the current...

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Technological Advancements: A Threat To Our Jobs

ARTIFICIAL INTELLIGENCE REPLACING HUMANS The pace with which we are moving ahead in terms of artificial intelligence the day is not so far when we will be able to eat the food from its picture only. Once one of my Professor Dr. Vivek Singh Tomar, discussed about technology that anything we visualise today sounding impossible […]...

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Taxation of Digital Economy around the world

Taxation of Digital Economy As businesses adapt to an increasingly digitized environment, tax authorities are placing more focus on businesses tax processes and control. Unlike traditional businesses, companies that are part of digital economy are able to generate significant revenues in other countries without the need of physical presen...

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No addition for gifts if Assessee proves Identity, capacity & genuineness of donor

Dr. Vempala Bala Manohar Vs ITO (ITAT Visakhapatnam)

Gifts are normally made by relatives out of natural love and affection and do not necessarily require any particular occasion. Assessee had discharged his burden by furnishing necessary details before AO. In the absence of anything to show that the transactions were by way of money laundering, ...

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A.O. cannot refer the matter to DVO to reduce FMV

Shri Dinesh Khodidas Patel HUF Vs ITO (ITAT Ahmadabad)

Shri Dinesh Khodidas Patel Vs ITO (ITAT Ahmadabad) The issue under consideration is whether A.O. is correct in referring the matter to DVO to find FMV by rejecting valuation report submitted by assessee? In the present case, assessee sold a land along with others co-owners. It had submitted the valuation report as on 1-4-1981 of […...

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Section 55: AO cannot reject valuation report without proving lesser valuation

DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi)

DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi) The issue under consideration is whether the A.O. is correct in rejecting the valuation report obtained by the assessee? In the present case, assessee had sold its land and building. Assessee had taken the cost of acquisition for land as per valuation report as at 1-4-1981 as against […]...

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Reassessment merely on Investigation officer report is unsustainable

Ashapura Minichem Limited Vs DCIT (ITAT Mumbai)

Ashapura Minichem Limited Vs DCIT (ITAT Mumbai) The issue under consideration is whether the re-opening of assessment u/s 147 is justified in law? The assessee before us is a listed public limited company engaged in the business of mining bauxite and selling the same in domestic as well as international market. In the present case [&helli...

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Disclosures in Director’s Report under Companies Act, 2013

The Directors‘ Report arose out of a general move for greater transparency in corporate governance. It is useful for shareholders to find out issues such as whether the company has good finances, whether the market has potential, and whether the business has the structural capacity to expand into new opportunities. Section 134 of...

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Can CESTAT condone delay in filing Appeal before Commissioner (Appeals) beyond time permitted under statute

Can CESTAT condone delay for filing of Appeal before Commissioner (Appeals) beyond permissible time limit prescribed under the statute? There are plethoras of cases where appellant was failed to file an appeal before Commissioner (Appeals) within the statutory time limit prescribed in the Act due to various reasons. These reasons can be d...

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Covid’19 Gave Indian Share Market Many New Participants

Money is the epicentre around which whole economic science revolves .Money doesn’t grow own its own. It grows by investing it wisely and safely in various financial instruments known as Value Creation. That is why people wants to keep on adding the sources of generating money directly or indirectly.  Stock Market is a one of [&hell...

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Final assessment order U/s 144C without issuing draft order is Void-ab-Initio

Nikon India Pvt. Ltd. Vs DCIT (ITAT Delhi)

Nikon India Pvt. Ltd. Vs DCIT (ITAT Delhi) The issue under consideration is whether the assessment will sustain even if the Assessing Officer ignoring the statutory provisions of section 144C, passed the Final assessment order without issuing draft assessment order to the assessee? In the present case, the Tribunal vide order dated 31.03....

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Extended due date of Statutory compliances

Article contains Extended due date of Statutory compliances Under Income Tax Act, 1961, Central Goods & Services Tax Act, 2017, Companies Act, 2013, FEMA Law and under  GujRERA. 1. Income Tax- Extended due date of Statutory compliances Sr. No. Particulars Current due date Extended due date Remarks 1 Filing of Income Tax Return for FY...

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Revised MSME Criteria 2020

Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is highly impo...

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Issues to be faced while claiming ITC under GST laws- Part II

Article discusses ITC provisions contained u/s 17, 18, 19, 20 and 21 of the CGST Act, 2017. Sec. 17 provides for various restrictions in the form of apportionment of credits and blocked credits....

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