"19 June 2020" Archive

Companies allowed to file Form GSTR-3B/GSTR-1 using EVC

Notification No. 48/2020 – Central Tax/G.S.R. 394(E) (19/06/2020)

GST Registered person who are also registered under the provisions of the Companies Act, 2013 are allowed to file Form GSTR-3B/GSTR-1 using EVC, vide Notification No. 48/2020 – Central Tax dated 19.06.2020 as follows:- Form GSTR-3B-during the period from the 21st day of April, 2020 to the 30th day of September, 2020 Form GSTR-GSTR-1 ...

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Composition Levy under GST- A Comprehensive Study

The Composition levy scheme is a very simple, hassle free compliance scheme and an alternative method of levy of tax designed for small taxpayers. It is a voluntary and optional scheme. The objective of composition scheme is to bring easy and reduced compliances; simple quarterly return, quarterly payment of taxes and no requirement of ma...

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Is tax treatment of advocate services under GST discriminatory?

Under the Goods & Services Tax, a taxable event is the supply. A transaction must fall within the four walls of the term ‘supply’ for applying the levy and collection provisions envisaged in the GST laws. Liability to pay tax ensues at the time of supply of goods or services. The term supply is not […]...

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Cancellation & Revocation of cancellation of registration under GST

GST Came in 1st July 2017. After the GST arrival, many person took the GST number without knowing the applicability of GST. Many taxpayers did not even know that the returns of Nil GST had to be filed. As a result of this, taxpayers started getting to know GST registration cancellation. In this article, we will […]...

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Refund Under GST – Status of Application

With the Covid 19 situation changing the dynamics of business huge reliance is placed by the taxpayers on the refunds available under the various laws. GST being no exception is also flooded with applications for refunds specially as for many MSMEs working capital tied up in refund is a huge challenge. However as the entire […]...

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Permit Petitioner to upload TRAN-I on or before 30.06.2020: HC

Amba Industrial Corporation Vs Union of India & Anr. (Punjab and Haryana HC)

The Respondents are directed to permit Petitioner to upload TRAN-I on or before 30.06.2020 and in case Respondent fails to do so, the Petitioner would be at liberty to avail ITC in question in GSTR-3B of July 2020. ...

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Ruling on Benefit of India–Mauritius Treaty on Capital Gains (POEM/PPT/GAAR)

AAR – Ruling on Benefit of India–Mauritius Treaty on Capital Gains taken by Tiger Global International Group in respect of Shares of Flipkart (Singapore Co) sold by Mauritius based Co to a Company in Luxembourg (which is controlled by Walmart) and the value of shares is derived from assets located in India Summary of Case […]...

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Section 16- Input Tax Credit simplified

GST Series Simplified -Section 16- Eligibility and conditions for taking input tax credit –  Input tax credit is backbone of GST ACT so it is very broad concept, I will try to discuss it in a very simplified manner.  Section 16(1)-  Every registered person shall, subject to such conditions and restrictions as may be prescribed [&hell...

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TDS Rates With Surcharge Applicability

TDS: Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc. So every person ...

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SEBI relaxes regulatory compliance timelines

Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/101 (19/06/2020)

ZIt has been decided to further extend the timelines for compliance with the regulatory requirements by the Trading Members / Clearing Members / Depository Participants, mentioned in the SEBI circulars,...

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MCA extends time for Creation of deposit repayment reserve & to deposit 15% of amount of debentures

General Circular No. 24/2020 (19/06/2020)

Further Extension of time till 30th September 2020 to creation of deposit repayment reserve of 20% u/s. 73(2)(C) of the Companies Act 2013 and to invest or deposit 15% of amount of debentures u/r.18 of Companies (Share capital and Debentures) Rules 2014 vide General Circular No. 24/2020 Dated: 19th June, 2020. Requirement under section 73...

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EGM with Draft Notice | COVID-19 | Video conferencing / OAVM

EGM refers to Extra – Ordinary General Meetings, called by a company other than scheduled annual meeting (AGM) to deal with urgent matters (Special Businesses). As per Clause 2.2. of Revised SS-2, Items of business other than Ordinary Business may be considered at an Extra-Ordinary General Meeting or by means of a postal ballot, if [&he...

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Key Managerial Personnel | Section 2(51) | Companies Act 2013

Extract of Definition of Key Managerial Personnels (KMPs) under Section 2 of Companies Act 2013 Section 2(51) ‘key managerial personnel’, in relation to a company, means— (i) the Chief Executive Officer or the managing director or the manager; (ii) the company secretary; (iii) the whole-time director; (iv) the Chief Financia...

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One Person Company (OPC) Incorporation through SPICe+

One Person Company (OPC) The One Person Company signifies the form of a Company that can be formed with just one Director and a Member as against a Private Limited Company, which requires at least two directors and two members and a Public Company that requires at least three directors and seven members. The compliance […]...

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DGTR recommends Anti-dumping on imports of Aniline from China

Case No. ADD (OI) 33/2019/F. No. 6/42/2019-DGTR. (19/06/2020)

DGTR recommends imposition of anti- dumping duty on imports of Aniline from China PR, equal to the lesser of margin of dumping and the margin of injury, so as to remove the injury to the Domestic Industry...

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Why to Appoint a Company Secretary- CS

All banks whether listed or otherwise, shall have a Company Secretary who is bound by the professional standards of a Company secretary and The secretary shall report to the Chair of the board. Appointment of a Company Secretary has been one of the most talked topics in the recent times as Companies not just appoint […]...

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Anti-Circumvention investigation on imports of Polytetrafluoroethylene

Case No. ADD-AC - 03/2020 / F. No. 07/22/2020-DGTR. (19/06/2020)

MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF TRADE REMEDIES) New Delhi, the 19th June, 2020 INITIATION NOTIFICATION Case No. ADD-AC – 03/2020 Subject: Initiation of Anti-Circumvention investigation concerning alleged circumvention of (i) anti-dumping duty imposed on imports of “Polytetrafluoro...

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Anatomy – Private Limited company under Companies Act, 2013

In India, there are around 1250 Laws applicable in different terms in different manner. Some laws use word Prohibition and some use Restriction. But, these both terms are being used in different sense at different locations. To interpret the meaning of these words to be applied at specific provision in Law, it is necessary to […]...

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Disclosures by Listed Entities under ‘LODR Regulations’ & Circular dated 20.05.2020

A listed entity needs to ensure that all available information about the impact of major events such as the spread of Covid–19, on the company and its operations is communicated in a timely and cogent manner to its investors and shareholders....

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IBC Ordinance-FAQ’s- Why, What, When & Whether?

The Pandemic outburst of Covid-19 has not left India untouched in any manner. This Pandemic has not only affected the human beings but has also led the economy to doldrums. The journey of stalling of businesses in India prominently started with the onset of lockdowns in India. The lockdown was justified in the sense that […]...

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Startup India-Definition, Recognition, Benefits and FAQs

1. What is a Startup? Startup India is an initiative of the Government of India. Startup India program was launched on 16th January, 2016.  Intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Governmen...

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Relationship between a Client & Foreign Law Firm- ‘Commercial’

The Respondent initiated arbitration proceedings for the outstanding fees and the Plaintiff had failed to pay such charges. As the proceedings are substantially for recovery of money, it leads to a commercial relationship between the parties under Section 45 of the Act;...

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‘Works Contract’ for fitting out any movable property into patient’s body in course of medical procedure was liable for VAT

MIOT Hospitals Ltd Vs State of Tamil Nadu (Madras High Court)

Works contract for fitting out or implanting of prosthetics into the physiology or the body of the patient for alleviation of pain or for improvement of the life of the patient in the course of medical/surgical procedure could be construed as 'works contract'  liable for VAT under the provisions of the Tamil Nadu Value Added Tax  Act, 2...

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Transfer of Shares | Case Analysis | Dove Investments v. Gujarat Industrial Investment Corp.

M/s. Dove Investments Private Ltd. Vs. Gujarat Industrial Investment Corporation Ltd. (Madras High Court)

Whether the obligation to register a transfer of shares within a particular period of time was mandatory or directory? Whether the company can cancel or reject the transfer where stamps on transfer form were not defaced or canceled?...

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Changes In ITR Form-1 (Sahaj) Notified For AY 2020-21

Central Board of Direct Taxes (CBDT) has notified the Income-tax Return Form-1 applicable for the Assessment Year (AY) 2020-21 vide Notification No. 31/2020 dated- 29th May, 2020. The applicability and Changes in the ITR Form is as under: Applicable For individuals being a resident (other than not ordinarily resident) having total income ...

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Allotment of shares to Foreign Investor under FDI Regime

Article contains Checklist For Allotment of Shares With Respect To Companies Act,2013 and Checklist for Post Allotment Compliance With Respect To Reserve Bank Of India Act, 1934. This is a checklist of documents and procedure required to allot foreign shares to an Indian company after receiving FDI in India. Checklist For Allotment of Sha...

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MCA extends time to file forms for Creation or modification of charges

Relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013. As per the MCA Circular No. General Circular No. 23/2020 dated 17th June, 2020, the Central Government in exercise of its powers under Section 460 read with Section 403 of the Act and the Companies (Registration Offices [&hell...

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Procedure of establishment of Branch/Liaison Office in India

Registration of Branch of a Foreign Company A. Overview of Branch of a Foreign Company: Any Foreign Body Corporate (incorporated outside India) /Firm/AOI (Association of Individuals) who wants to expand their business in India and wants to reach the Indian Customers, then it may be done by establishing a Liaison Office (LO)/ Branch Office...

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Relaxation on Filing of Form CHG-1- Creation/ modification of Charge

Note on Relaxation on Filing of forms for creation/ modification of Charge (Form CHG-1) SCHEME FOR RELAXATION OF TIME FOR FILING FORMS RELATED TO CREATION OR MODIFICATION OF CHARGES UNDER THE COMPANIES ACT, 2013 Every Company which creates/modifies the charges needs to file the form CHG-1 (Creation and modification) within 30 days from th...

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HC permits uploading of form TRAN-I to avail ITC on or before 30.06.2020

Haryana Mill Store Vs Union of India and others (Punjab and Haryana HC)

The issue under consideration is to seeking permission to electronically upload form TRAN-I in order to avail credit of excess VAT reflected in Returns, as due to technical glitches on the GST Portal, the petitioner could not file Form TRAN-I....

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Open GST Portal by 19.06.2020 for filing of Form GST Trans-1: HC

Mangla Hoist P. Ltd. Vs Union of India (Delhi High Court)

Mangla Hoist P. Ltd. Vs Union of India (Delhi High Court) Admittedly, the judgment in Brand Equity Treaties Limited (supra), has not been stayed so far and therefore, the respondents are under an obligation to abide by the directions issued therein by adequately publicising the said decision and uploading it on their website as also [&hel...

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Commissioner only can extend time to file revised Form GST TRAN-1: HC

Ganpati Advisory Limited Vs UOI (Allahabad High Court)

As per Rule 120A of the CGST Rules, 2017 application for extending the time period for submitting the revised FORM GST TRAN-1 electronically has to be extended by the Commissioner and not by any other subordinate authority....

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Enable filing of rectified TRAN-1 electronically or accept it manually: HC

Arora & Co. Vs Union of India & Ors. (Delhi High Court)

Arora & Co. Vs Union of India & Ors. (Delhi High Court) Senior Standing counsel for GST submits that petitioner was given an opportunity to submit evidence to demonstrate technical glitch for re-considering his request, however, he failed to do so and thus his representation was rejected. He submits that as per GST system logs, [&...

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Assessee cannot be deprived of Transitional Credit : HC

Soni Traders Vs Union of India & Ors. (Delhi High Court)

Soni Traders Vs Union of India & Ors. (Delhi High Court) it emanates that the Respondents have no cogent ground to deny the benefit of the Notification No. 49/2019 dated 09.10.2019 issued specifically to grant relief to taxpayers who faced difficulty in filing Form GST TRAN-1 due to technical glitches. Credit standing in favour of an...

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Allotment of Share at High Premium for Cash | Gift | Lifting of corporate veil | Section 56(2)(viia)

Vaani Estates Pvt. Ltd. Vs The ITO (ITAT Chennai)

Vaani Estates Pvt. Ltd. Vs ITO (ITAT Chennai) Provisions of Section 56(2)(viib) of the Act, cannot be invoked in the case of the assessee company because by virtue of cash being brought into the assessee company by Mrs. Sasikala Raghupathy for allotment of equity shares with unrealistic premium the benefit has only passed on to […]...

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HC dismisses of ED’s plea to revoke Rajiv Saxena’s approver status

Directorate of Enforcement Vs Rajiv Saxena (Delhi High Court)

Once the accused was granted pardon by the Court and was made approver, the status of the accused changed from accused to witness/approver.  However, if the approver, failed to comply with the conditions of order granting him pardon, he made him liable to be tried as accused subject to the conditions as laid down in Section 308 Cr PC. ...

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Introduction of Digital Services Tax in Brazil – CIDE-digital

Taxation on income of companies which are engaged in technological goods & services have always been a niche and debatable issue among the countries since inception due to the disruptive businesses models which allow companies to operate in a country without having any physical presence, or having its permanent office. These companies...

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Dishonour of cheque

In the day to day life, many of us might have acquainted with the issue of dishonor of cheque or cheque bounce, due to the insufficiency of funds or signature mismatch or overwriting or any other reasons. This article is a hand to know the provisions of the Negotiable Instrument Act 1881 dealing with the […]...

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Interest on Delayed Payment of Tax under GST

Interest On Delayed Payment Of Tax- Whether Payable Under The GST Act?  According to sec 50(1) of the CGST Act 2017, every person who is liable to pay tax in accordance with the provisions of the Act or in accordance with the Rules made there under but fails to pay the tax or any part […]...

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Medical Negligence- Can it be pardoned?

Medical profession is considered to be the most pious and responsible profession among others. It is one of the most respected sections of the society and there is no denial of the fact that doctors have been given designation equivalent to that of the God. In the current times also, everyone is looking up to […]...

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Key Managerial personnel | Section 203, Companies Act, 2013

Key Managerial Personnel (KMP) refers to the employees of a company who are vested with the most important roles and responsibilities. They are in-charge of maintaining the operations of the company. Section 203 of The Companies Act, 2013 deals with provisions relating to appointment of key managerial personnel (KMP). Applicability: Secti...

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Caste system an impediment to choose suitable life partners: Gujarat HC

The origin of caste system in India was based on the vocation of the persons or group of persons. But gradually it embedded deep into the roots of our social system and values in as much the marriages were performed strictly within the caste and sometimes strictly amongst the sub castes. Times have changed and […]...

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GST on CSR activities

As the world is reeling under the impact of Covid-19, most donations made in India would qualify as a Corporate Social Responsibility (CSR) activity. These donations may be in the form of cash or in-kind such as PPE kits, sanitizers, etc. This article aims at analyzing the impact of GST on CSR activities/expenditure. What is […]...

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Cryptocurrency in COVID-19 times

Cryptocurrency, is a digital asset meant to be used as digital money. This means there is no physical coin or bill. Instead, it is all virtual and online. Bitcoin is a front runner and the most popular cryptocurrency currently. While cryptocurrencies are not likely to substitute traditional currency, they have transformed the way virtuall...

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Transfer Pricing: Identification of Tested Party, whether assessee or associated enterprise

Transfer pricing is the concept where a controlled transaction between two associated enterprises (AEs) is compared with an uncontrolled transaction under the similar circumstances in respect of price or margin. The process of transfer pricing is consist of two analysis i.e. Financial analysis and Economic analysis....

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Taxation of Business Trust in India

In this article I am going to discuss Taxation of Business Trust in India. Concept of Business Trust was introduced vide Finance Act, 2014. The Finance Act, 2014 has put in place special taxation regime in respect of Business Trust....

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Process of Online TDS or TCS or Outstanding Demand Payment

Many users get confused regarding online payment of TDS/TCS and same way if there is any outstanding demand against our TAN then how to resolve it. Hence today I come up with this article which wil give you the clarity regarding online payment of TDS and outstanding demand payment. 1. Online TDS/TCS or Demand Payment […]...

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Section 194C TDS on printed articles as per customer specification

Accordingly, TDS under section 194C is not applicable on printing material as per customer specification, wherein customer has not supplied any material to contractor and contractor has supplied the final product for a price, which is in the nature of contract for sale....

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GST on works contract, composite contracts & Turnkey projects

Taxation of works contract in erstwhile indirect taxes including VAT, CST and Service Tax involved complexities. Since both the element of service and transfer of property in goods is involved in a works contract transaction, there was always a dispute as to the ratio in which it has to be taxed under Service tax and […]...

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Interpretation of Section 14A & Exception to Rule 34(5)- Covid-19

The present case has again established a clear picture on the interpretation of Section 14A of the Act, with detailed explanation of various cases. It clearly explains that Section 14 of the Act will not apply if no exempt income is received or receivable during the relevant previous year....

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Reconciliation of ITC & Reporting in GSTR 9 for FY 2018-19

The process of preparing and filing of annual return in GSTR 9 for FY 2018-19 under GST has started and there have been a number of doubts arising as to how to reconcile the Input Tax Credit (ITC) under various tables pertaining to the FY 2018-19, because the GSTR 3B filed for 2018-19 contains rectifications […]...

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22 common mistakes in preparation & filing of GSTR-3B & GSTR-1

Despite passing of almost 3 years since the enactment of GST laws, many mistakes are still being committed by GST tax payers  while filing GST returns particularly GSTR3B and GSTR1. These mistakes are generally committed either due to negligence, oversight or due to lack of conceptual clarity on various provisions of the GST Acts and [&h...

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November 2020