"28 June 2020" Archive

FAQs on TDS on Contracts | Section 194C | Income Tax Act 1961

Q.1 Who is responsible to deduct tax u/s 194C? A.1. Any person responsible for paying any sum to any resident contractor for carrying out any work (including supply of labour for carrying out any work) under a contract in pursuance of a contract between contractor and person specified, shall deduct in context at the time […]...

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Posted Under: Income Tax |

All about Section 44AE of Income Tax Act, 1961

In this advance learning we will cover the provisions of the presumptive taxation scheme provided in section 44AE. The scheme of section 44AE is designed to give relief to small assessees engaged in the business of goods carriage....

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Posted Under: Income Tax | ,

Minimum Alternate Tax (MAT) | Section 115JB | Income Tax Act 1961

Law makers observed that there is many companies which are disclosing massive profit in the accounts as laid in the Annual General Meeting (AGM) before the shareholder but at the same time these companies also showing profit nil or bit above nil for the income tax purpose....

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Section 80CCD- Deduction for National Pension Scheme Contribution

Deduction under Section 80CCD for National Pension Scheme Contribution is one of the most popular deduction. Many users take advantages of this deduction at the time of filing of their Income tax Return....

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Capital Loss from Listed Shares and Equity Mutual Funds

In India, the income from long term capital gains on transfer of Shares and Mutual Funds on which security transaction tax (STT) has been paid, is exempt from levy of income tax under section 10(38) of the Income Tax Act, 1961 (‘the Act’). This is a well known exemption amongst the tax payers and investors in India. ...

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What is Domestic Transfer Pricing?

Applicability of transfer pricing provisions was earlier limited to International Transactions only. With effect from 01.04.2013, the scope of Transfer Pricing provisions is extended to 'Specified Domestic Transactions' and is accordingly applicable from A.Y. 2013-14....

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Posted Under: Income Tax |

Whether writing of bad debts in accounts sufficient to claim deduction U/s. 36(1)(Vii)?

The Delhi High Court, has held in CIT vs. Samara India(P) Ltd. (2013) 216 Taxman 93 , following the decision of Supreme Court in T.R.F. Ltd. Vs. CIT(2010) 323 ITR 397:190 Taxman 391(SC), that for an assessee to claim deduction in relation to bad debts it is, now, no longer necessary to establish that debt had become irrecoverable and it i...

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Posted Under: Income Tax |

Utility for computation of Deduction of Rent for Non-Salaried Individuals – 80GG

Rent Deduction U/s 80GG Utility Section 80GG, of Income Tax Act 1961-2020 An assessee  not being person claiming deduction of House Rent Allowance (HRA) or by whatever name its called u/s 10(13A) is eligible to claim deduction under this section. Conditions to be met for this deduction : Assessee or his spouse or minor child […]...

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Posted Under: Income Tax |

Passport Authorities cannot Impose Penalties : Kerala HC

Citizens Legal Right Association Vs Union of India (Kerala High Court)

Passport authorities under the Passports Act, 1967 are not vested with any power under Section 12 of the Act 1967, to impose any fine and it is a matter affecting the public....

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No TDS on Reimbursement of Relocation Expenses of Outbound Employees

Global E-Business Operations Vs The DDCIT (ITAT Bangalore)

Global E-Business Operations Vs DDCIT (ITAT Bangalore) When a claim was made by the assessee that there was no income of element embedded in the remittances, the AO has not examined the claim of the assessee in a proper perspective. They have merely said only few evidence have been filed. Another reason given was that […]...

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Summary of Notifications by CBIC on 24th June 2020

SUMMARY OF NOTIFICATIONS BY CBIC ON 24th June 2020 i. Waiver / Reduced rate of interest for delayed in filing of GSTR-3B for various months – (Notification No. 51/2020 – Central Tax dated 24th June 2020) ii. Wavier of Late Fees for delay in filing of GSTR-3B for the returns from Feb 2020 till June 2020 […]...

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Posted Under: Income Tax |

Moving objections in 7 days to provisional attachment- Rule 159(5) is directory

RR India Pvt. Ltd Vs Union Of India & Ors. (Delhi High Court)

The period of 7 days prescribed in rule 159(5) of the CGST Rules for moving the objections to the provisional attachment is merely directory and not mandatory....

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Advances for purchase of vehicles/plant/machinery allowable as bad debt

PCIT Vs Hybrid Financial Services Ltd (Bombay High Court)

PCIT Vs Hybrid Financial Services Ltd (Bombay High Court) Under Section 36(1)(vii) of the Act, the amount of any bad debt or any part thereof which is written off as irrecoverable in the accounts of the assessee for the previous year is to be allowed as deduction in computing income under Section 28 of the […]...

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Service by NSDL to depository participants liable to Service Tax

National Securities Depository Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai)

Services provided by NSDL to depository participants are aptly of 'provision and transfer of information and data processing', classifiable under (vii) of Banking and Financial Services as defined under Section 65(12) of Finance Act, 1994;...

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No Prosecution of Chairman/Director without Impleading Company as Accused – Section 138 NI Act

Bhupendra Suryawanshi Vs Sai Traders (Madhya Pradesh)

Bhupendra Suryawanshi Vs Sai Traders (Madhya Pradesh) The proviso to Section 138, however, is all important and stipulates three distinct conditions precedent, which must be satisfied before the dishonour of a cheque can constitute an offence and become punishable. The first condition is that the cheque ought to have been presented to the...

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Relaxation Scheme on Charges under Company Law during Covid-19

General Circular No. 23/2020 dated 17/06/2020 (17//0/6/20)

SECTION 77 OF THE COMPANIES ACT 2013 READ WITH THE RULES MADE THEREUNDER says that the charge created by the company on any of its assets whether tangible or intangible assets, located in India or outside India shall be registered by the company or the charge holder within 30 days of creation or modification in […]...

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Posted Under: Income Tax |

Requirements of Secretarial Audit

Secretarial Audit for bigger Companies Secretarial Audit is a process to check compliance with the provisions of various laws and rules/regulations/procedures, maintenance of books, records etc., by an independent practising Company Secretary to ensure that the company has complied with the legal and procedural requirements and also follo...

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Posted Under: Income Tax |

Revised Guidelines on Classification of MSMEs & Registration under Udyam

The Central Govt. has notified revised method of classification of micro, small and medium enterprises w.e.f. 1st July 2020. Those who could not find time to read entire notification or could not get any point clearly, may go through the following gist with examples for simple but clear understanding. 1. The classification of entities b...

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Posted Under: Income Tax |

Covid 19 Financial Impact on Industry in India

The Report Cover Impact of Covid -19 on Industry in India. From March 2020 to next 9 months are very unpredictable for all Companies. This was completely dominated by the COVID-19 Pandemic. It is seen in history never & first time that nearly everyone in the world has decided to stay at home, quarantined. We […]...

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Posted Under: Income Tax |

Free Perpetual Depreciation Calculator with FAR with Fixed Asset Schedule

Perpetual  Depreciation Calculator with Fixed Asset Register.  – Automated Fixed Schedule Preparation  – Depreciation for entire useful life of assets  – No need to copy paste data every year in different Excel files.  – Easy to under stand – Single Sheet for depreciation calculation. As per Schedule II ...

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Posted Under: Income Tax |

Equalisation Levy-Expanded Scope after Finance Act 2020

Equalisation levy was initially brought to impose tax on online advertisement including provision of digital advertising space on certain entities which did not have any physical presence in India but which earned revenue from Indian advertisers. The levy required every resident making payment for such services to deduct 6% equalization l...

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Posted Under: Income Tax |

Need for Institutional Framework for Valuation Professionals

Report of the Committee of Experts to Examine the Need for An Institutional Framework for Regulation and Development of Valuation Professionals- VOLUME I –  April 2020. Executive Summary A Profession is a disciplined group of individuals who adhere to ethical standards and who hold themselves out as, and are accepted by the public ...

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Posted Under: Income Tax |

GST on composite works contract supply for construction service to prospective lessee

In re Nagpur Integrated Township Pvt. Ltd. (GST AAAR Maharashtra)

In re Nagpur Integrated Township Pvt. Ltd. (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling agree with the findings and order of the Advance ruling authority in as much as the impugned transaction entered into by the parties is not in nature of lease. The same is rather in the nature of  construction of […]...

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GST on Services provided by Ordnance Factory Bhandara: AAAR

In re Ordnance Factory (GST AAAR Maharashtra)

In re Ordnance Factory (GST AAAR Maharashtra) Question: 1) Being a part of the Ministry of Defence, Government of India, whether our organization Ordnance Factory Bhandara is liable to pay GST on the following supply of services: – a) Liquidated damages deducted from the payments to be made to suppliers in case of delayed delivery [...

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Land Purchased for establishing a university – Section 11 Exemption Allowed

ITO(E) Vs Om Charitable Trust (ITAT Delhi)

Whether the AO was correct in denying the exemption u/s 11 to the assessee against Purchase of Land and FLAT in preparation to establishing a university and not in the nature of any 'real estate' operation ?...

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AAR cannot give ruling in absence of any specific description of products

In re Safset Agencies Pvt Ltd. (GST AAAR Maharashtra)

In re Safset Agencies Pvt Ltd. (GST AAAR Maharashtra) The AAR has not given any ruling on collectibles/memorabilia and collectible books; the reason being given is that no specific details of such goods are given. In the grounds of appeal presented before the AAR, the appellant has described such goods as only ‘collectibles’ a...

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Virtual Coaching Classes from 01.07.2020 for CA students- Nov 2020 exam

ICAI ‘Virtual Coaching Classes’ commencing from 1st July, 2020 for CA students of Foundation, Intermediate and Final appearing in November 2020 examination...

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Posted Under: Income Tax |

Rate of tax for GST composition taxpayer wef 01.04.2020

Notification No. 50/2020 – Central Tax, dated 24.06.2020-simple text  Vide Notification No.50/2020-Central Tax, dated 24.06.2020, substitute new table in rule 7 of CGST Rules, 2017 has been done retrospectively from 01.04.2020. For the taxpayers, simple text is as under in easy manner: Rate of tax for the composition taxpayer is as und...

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Posted Under: Income Tax |

Allahabad HC gives Respite to schools on payment of fee during lockdown but schools must show benevolence

Allahabad HC gives Respite to schools on payment of fee during lockdown but schools must show benevolence The Allahabad High Court on 24 June  dismissed the plea demanding full waiver on school and college fee in the state of Uttar Pradesh for the period they have been closed or will remain so due to the […]...

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Posted Under: Income Tax |

Benefits of MSME Registration Under MSME

In continuation with the earlier article where registration process under MSME Act was elaborated, this article covers the benefits of being an entity registered under MSME, Act.  Read-Registration under MSME Act ♦ Benefits of MSME registration Collateral Free Automated Loan A scheme for in principal approval for business loan up to 5 ...

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Posted Under: Income Tax |

Registration under MSME Act

What’s Udyog Aadhaar? - It is an identification system, similar to Aadhaar, but specifically for businesses. Earlier Udyog Aadhaar Registration was an online method by which an MSME can get a 12-digit Udyog Aadhaar Number and then go for MSME registration. Therefore, one can say that both are different, but now Udyog Aadhaar re...

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Posted Under: Income Tax |

GST Insights- Further Relief Measures- COVID-19

Notification No. 55/2020–Central Tax (27/06/2020)

GST Insights- Further Relief Measures- COVID-19 –Updated Compliance Chart for GSTR-3B and GSTR-1 -Reduction in Late fee in filing GSTR-3B -Change in calculation of Interest amount if filed after relief dates -Relief provided in filing GSTR-3B for May 2020 to August 2020 -Reduced rate of Interest @9% if GSTR-3B filed by Sept. 20 -One...

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Posted Under: Income Tax |

No Section 234B Interest for Advance Tax Shortfall due to Retrospective Amendment

DCIT Vs Reliance Industries Ltd. (ITAT Mumbai)

Whether the interest u/s 234B for less payment of advance tax will be levied on account of additions made to total income, consequent to retrospective amendment?...

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