"13 July 2020" Archive

GSTR-4 due date extended to 31st August 2020 for FY 2019-20

Notification No. 59/2020–Central Tax (13/07/2020)

CBIC has vide Notification No. 59/2020–Central Tax extended due date of GSTR-4 for Financial Year 2019-20 to 31st August 2020 which earlier was 15th July 2020. GSTR–4 is a GST Return which is required to be filed by a GST composition dealer. A dealer opting for the GST composition scheme is required to furnish only […]...

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Tax on Movable & Immovable Property in pre & post GST Regime

The following is the Article on taxability of Movable and Immovable property in pre GST Regime & Post GST Regime. In this article Hon’ble High Court categorly explain the meaning of movable and immovable property, also explain by the Hon’ble respective High Courts on this issue taxability of movable and immovable property remains burn...

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Show Cause Notice Under GST Regime

Demand and recovery can be initiated for short-levy, non-levy, short paid, non-paid, erroneous refund, wrong availment and incorrect utilisation of input tax credit. All demand and recovery proceedings under GST start with the issuance of a show cause notice. But what is a Show cause notice (SCN)?...

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Search, Seizure, Inspection and Arrest under GST

Taxation is the one of the most source of revenue to the government. Our government has performed various methods to stop tax evasion but tax evasion is the major problem in India. The authority to levy tax is derived under Article 265 of the Constitution of India which states that 'No tax shall be levied or collected except by the author...

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Service of Notice under GST Regime

'Service' means giving legally required notice to other parties that you have filed papers asking for a court order that may affect them. The court papers can only be delivered in a manner permitted by law, and proof of proper delivery must be filed with the court. But why it is necessary to serve a notice to other parties....

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Applicability of Notification on refund of late fees waived under GST

Notification No.57/2020 (30//0/6/20)

Practical applicability of Notification 57/2020, Dated 30th June 2020, regarding refund of late fees waived under GST Once again lock down is declared in the various regions of the state. Maharashtra is perhaps the most affected state amid this COVID-19 pandemic. Slowly streamlining businesses are now closed again & their operations a...

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Factors to consider for Payment of Rent during Lockdown

Ramanand & Others Vs Dr. Girish Soni and Another (Delhi High Court)

Temporary non-use of premises due to the lockdown which was announced due to the COVID-19 outbreak cannot be construed as rendering the lease void under Section 108(B)(e) of the TPA. The tenant cannot also avoid payment of rent in view of Section 108(B)(l)....

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No GST on payment of Membership/Admission Fee for entry in Club

No GST to be levied on payment of the Membership/Admission Fee for entry in the Club The recent ruling in the Maharashtra AAAR has successfully set aside the earlier provisions of the state AAR ruling that had termed membership fee as a supply of service liable to GST. The state appellate body had issued a similar order in […]...

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Hand Sanitizer- Its classification and GST there on

Nowadays, there has been a lot of chaos regarding the Goods and Service Tax (GST) rate on Hand Sanitizers. Different taxpayers are taking different positions. The dispute is between the three Tariff Headings (TH) 3401, 3808, 3004. Export data shows that exporters have classified either under TH 3808 or TH 3004. However, the Director Gener...

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GST applicability in Healthcare services

GST on Healthcare Services: An Overview In the 25th council meeting dated 18.01.2018, following clarifications relating to healthcare services were given: 1) Services provided by senior doctors/consultants/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt. 2) Hospitals also provide healt...

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Market Linked Debentures valuation by AMFI appointed valuation agency

Circular No. SEBI/HO/DDHS/CIR/P/2020/120 (13/07/2020)

valuation of MLDs shall be carried out by an agency appointed by AMFI for the purpose of carrying out valuation hereinafter referred as AMFI appointed valuation agency....

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Amendment in Export Policy of textile raw material for masks & coveralls

Notification No. 18/2015-2020-DGFT [S.O. 2311(E)] (13/07/2020)

The Notification No. 52 dated 19.03.2020 is amended to the extent that only non-woven fabric of 25 to 70 GSM and melt blown fabric of any GSM exported against the HS codes specified above is prohibited for export. All other non-woven fabrics with GSM other than 25-70 GSM are freely allowed for exports....

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Decoding of notification for extension in Due Dates of GSTR-3B

Decoding of Notification For Extention In Due Dates of GSTR-3B From February, 2020 To July, 2020 In the times of COVID-19 Pandemic, government has brought numerous notifications to provide relief to taxpayers. One of the most discussed and confusing notification is Notification 51/2020 dated 24 Jun 2020. The said notification deals with E...

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Old Vs New Tax Regime: What Should Salaried People Opt For?

The new tax regime introduced by Budget 2020 for individual taxpayers provide for concessional tax rates with reference to tax rates in the old regime. The new tax regime has lower income tax rates for income up to 15 lakh but what needs to be focused upon is that lower income tax rates are available only if a taxpayer is willing to give ...

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Stay on NCLT Order Initiating Insolvency Proceedings against MSME

Pankaj Aggarwal Vs Union of India & Ors. (Delhi High Court)

Whether the NCLT was correct in passing an order of initiation of the CIRP against a MSME without considering the fact that the minimum threshold limit of filing application in NCLT has been increased to Rs. 1 Crore?...

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Entry Strategies for Foreign Companies

INTRODUCTION Investment into India is booming. India has made its mark on the world map with the rapidly rising growth rate, notable human resources, technology advancement, government support and the ease of doing business. As a result of India’s focus on development, the Ministry of Finance has considerably relaxed various sectoral ca...

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Zero Rated Supply and Exempt Supply under GST

Zero Rated Supply Meaning: It means a supply made by way of export of goods or services or supply of goods or services to an SEZ unit or SEZ developers. Payment of tax: The entire supply chain will be tax free. Availment and utilisation of credit: A person making zero rated supply shall be allowed […]...

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Analysis of Section 55 to 58 of CGST ACT 2017

Simplified GST Series/ Section 55-58/CGST ACT 2017– Article analyses Section 55- GST Refund in certain cases, Section 56- Interest on delayed GST Refunds, Section 57-Consumer Welfare Fund and  Section 58- Utilization of the Fund of CGST ACT 2017. Section 55- Refund in certain cases- The Government may, on the recommendation of the ...

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CSR under Companies Act, 2013

Corporate Social Responsibility (CSR) 1. Company Liable for CSR Section 135(1) Company having – a. Net worth of Rs.- 500 Cr. or More, or b. Turnover of Rs. 1000 Cr. or More, or c. Net Profit of Rs. 5 Cr. or More during the immediately previous financial year 2. CSR Committee Section 135(1) and Rule […]...

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RBI Governor’s Speech: Viewing Indian Economy At Financial Stability Angle

Shaktikanta Das, Governor, Reserve Bank of India while inaugurating the SBI’s 7th conclave on Banking and economy gave his keynote address on July 11, 2020, and his historic address covered the glorious past few years of the banking crisis, the economic impact of COVID 19 and the future ahead of the Indian banking. But as […]...

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Whether we are moving the LIFE or our LIFE is just moving

“Main Samay Hoon” we all understand the meaning of this three words and the importance of this words and if not, then COVID19 has shown who is more powerful, “WE” or “Time (Samay)”. There is no doubt that hearing this “Main Samay Hoon” itself gives the whole meaning to what is Life, what is the […]...

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Impact of MLI on Indian Tax Treaties under International Taxation

Multilateral Instruments (MLI) is indeed the talk of the town in the world of International Taxation. Under the OECD*/G20 inclusive framework on Base Erosion and Profit Shifting (BEPS), more than 125 countries are collaborating to put an end to tax avoidance strategies that exploit the gap and mismatches in tax rules to avoid paying taxes...

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Extend due dates of VAT assessments in Jharkhand: JTCBA

1. Extend due dates of VAT assessments - Sir, vide our previous letter request was made to extend due date for assessment for the financial year till 31st July, 2020. Because of lockdown and pandemic ‘chorona’ it is practically not possible to appear and conclude the assessment proceeding till 31st July, 2020. Under such situation, we...

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Expenditure Related to Exempt Income

Every person whose total income of the previous year exceeds the maximum amount, which is not chargeable to income tax, is an assessee and chargeable to income tax in India at the rate or rates as may be prescribed in Finance Act and Income Tax for the relevant assessment year. We know that the in […]...

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MSME Classifications & Registration Requirements w.e.f. 01.07.2020

Ministry of Micro, Small and Medium Enterprises have come out with notification no. [F. No. 21(5)/2019-P&G/Policy (Pt-IV)] dated 26th June 2020, wherein following new criteria of classification of enterprises and new registration procedures under MSMED Act,2006:- Classification Micro Enterprises Investment in Plant & Machinery or ...

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Amendment of GST Registration | Section 28 | CGST Act 2017 | GST Series Part 18

1. Every person who is liable to be registered enters  the  prescribed details in the GST REG 01 (registration form ) on GST Portal. In case the person missed out on some details or entered incorrect details, he can amend the particulars in a manner prescribed in Rule 19 of CGST Rules 2017. Section 28 […]...

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Udyam Registration In India

A micro, small and medium enterprise (MSME) will now be known as Udyam as per the notification issued by the Ministry of MSME on 26 June 2020. The ministry has also come up with detailed criteria for the classification of MSMEs and the procedure for registration and the arrangements made by the ministry for facilitation in this [&hellip...

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Interpretation of Statute With Its Intention

It is to be regretted that the subject of interpretation of law has not in modern times received that decree of attention which it deserves. The rules of Interpretation may well rank as an important branch of what is called the adjective law. The part of that these rules play in the administration of justice […]...

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Procedure for Change in Name of Existing Company

For ease of reference, I have only covered 4 Step Procedure for Name Change in this article and nothing else. Step 1: Hold a meeting of Board of Directors of the company The company shall hold a meeting of board of directors to pass necessary resolution for the change of name. The board shall consider […]...

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Practical Aspects of Udyam Registration W.E.F. 01.07.2020

Following the Atmanirbhar scheme and for facilitating ease of doing business, Union Ministry of Micro, Small and Medium Enterprises (MSME), vide its Notification Dated 26.06.2020, notifies the new definition of MSME and new registration process known as – ‘Udyam Registration’ In that context, a new portal is introduced k...

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Losing Party cannot seek an Order under Section 34 of Arbitration Act

Tecnimont Private Limited & Anr. Vs ONGC Petro Additions Limited (Delhi High Court)

A petition under Section 34 of the Act is only for setting aside an Arbitral Award on the limited grounds provided under Section 34 of the Act. Therefore, the mere pendency of Section 34 proceedings cannot afford a ground for a party to assert that it has a dispute regarding contractual performance....

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Private Placement of Securities provisions | Companies Act, 2013

Private Placement of Securities Under Companies Act 1. Only to Identified Persons Private Place made only to identified person, Maximum no of identified Persons not more than 50 or such number of persons as may be prescribed i.e 200 as per Rule 14(2). Identified person excludes the QIB and employee of  the Company being offered […...

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Principle of Natural Justice

As we know that the basic motive of principle of natural justice is to ensure fairness in social and economic activities of the people and also shields individual liberty against the arbitrary action. But what exactly are these principles?...

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Trust Registration under section 10(23C), 12A, 12AA, 12AB, 80G

Key Notes on Direct Taxation (Income Tax) For UNION BUDGET 2020 FOR APPLICATION AND VALIDITY OF REGISTRATION FOR TRUST/INSTITUTION U/S 10(23C), SECTION 12A, 12AA, 12AB, 80G of the Income Tax Act, 1961. The process of approval and registration of trusts, institutions, funds, university, hospital etc. proposed to be rationalised with effect...

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DGGI detected GST evasion by grain-based distilleries

D.O. No. 23/CH(IC)/2020 (13/07/2020)

Based on specific intelligence, DGGI Hqrs has detected GST evasion by a large number of grain-based distilleries on 'wet distilled grains with solubles' (WDGS) / 'dried distilled grains with solubles' (DDGS). These are distillery waste and dregs arising as a by-product in the process of manufacturing ethanol....

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Amendment in notification relating to AIRs of Duty Drawback

Notification No. 56/2020- Customs (N.T.) [G.S.R. 442(E)] (13/07/2020)

Notification No. 56/2020- Customs (N.T.) – Regarding amendment in notification No. 07/2020-Cus. (N.T.) dated 28.01.2020 relating to AIRs of Duty Drawback. MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No. 56/2020- CUSTOMS (N.T.) New Delhi, the 13th July, 2020 G.S.R. 442(E).— In exercise of the powers conferred by sub-se...

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Inland Waterways Authority of India (Amendment) Rules, 2020

Notification No. G.S.R. 440(E) (13/07/2020)

1. (1) These rules may be called the Inland Waterways Authority of India (Amendment) Rules, 2020. (2) They shall come into force on the date of their publication in the Official Gazette....

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Assessment Order against non-existent Entity would be non-est in eyes of law

Satyam Computer Services limited Vs DCIT (ITAT Mumbai)

Assessment order passed by the A.O u/s 143(3) r.w.s 144C(3), in the hands of M/s Satyam Computers Services Ltd., i.e an entity that was non-existent on the date on which the assessment order was passed, had been held by the Tribunal in its aforesaid order as non-est in the eyes of law, therefore, the same does not survive and on the same ...

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CBIC increases duty on imports of Polybutadiene Rubber from Korea RP

Notification No. 31/2020-Customs [G.S.R. 444(E).] (13/07/2020)

Notification No. 31/2020-Customs- Seeks to further amend notification no. 152/2009 dated 31.12.2009, to increase the rate of duty of customs on imports of “Polybutadiene Rubber” originating in Korea RP and imported under the India-Korea Comprehensive Economic Partnership Agreement, on recommendation of preliminary findings of ...

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Benefit of SEZ unit can’t be denied merely because registered office is situated in DTA i.e. outside SEZ

M/s Adani Power Ltd. Vs Commissioner of Service Tax (CESTAT Ahmedabad)

whether the commissioner is correct in denying the benefit of SEZ unit on the basis that the registered office is situated in DTA i.e. outside the SEZ?...

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Excise Duty Recovery for Shortage of goods in Absence of Evidences not valid

N R Sponge Private Limited Vs Commissioner Customs (CESTAT Delhi)

whether the Central Excise Officers are correct in levying duty on account of discrepancies in the records of the appellant and shortages in the stock of raw-material as well as finished goods?...

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Transactions not Bogus, if All Ingredients necessary for Genuine Business Transaction Exist

Dhandhia Gems Vs ITO (ITAT Kolkata)

The issue under consideration is whether the addition made by AO by considering the transaction entered by the assessee as bogus transactions are justified in law?...

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Section 10(46) exemption to RERA Authorities of Goa & Telangana

Notification No. 47/2020-Income Tax [S.O. 2327(E)] (13/07/2020)

Notification No. 47/2020- Central Government notifies Goa Real Estate Regulatory Authority and Telangana State Real Estate Regulatory Authority in respect of the specified income arising to that board under section 10(46) of Income Tax Act, 1961. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. ...

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Section 10(46) exemption to National Aviation Security Fee Trust

Notification No. 46/2020-Income Tax [S.O. 2326(E)] (13/07/2020)

Notification No. 46/2020- Central Government notifies ‘National Aviation Security Fee Trust’  in respect of the specified income arising to that board under section 10(46) of Income Tax Act, 1961. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 46/2020-Income Tax New Delhi, the 13th July, ...

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Basics of Stock Market – Part 4

I hope you have read the previous parts of this series, if not then click here to read. We were discussing about Long term Debt Asset class under which we had discussed completely about the Securities which further includes Bonds. Don’t get confused. Let me remind you this hierarchy again. The parent is Long Term […]...

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Amendment in Section 40(a)(ia) vide Finance Act, 2010 are retrospective

A.Y. Garment International Private Ltd. Vs DCIT (Karnatka High Court)

A.Y. Garment International Private Ltd. Vs DCIT (Karnatka High Court) Whether the Tribunal was justified in law in holding that the amendment made by Finance Act, 2010 in the provisions of Section 40(a)(ia) of the Income-tax Act, 1961 is not retrospective in operation on the facts and circumstances of the case? The issue whether the [&hel...

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Issue of Share at a premium: AO cannot change valuation method

Signure Technologies Pvt. Ltd. Vs ACIT (ITAT Bangalore)

ITAT held that AO can scrutinize the valuation report and he can determine a fresh valuation either by himself or by calling a determination from an independent valuer to confront the assessee but the basis has to be DCF method and he cannot change the method of valuation which has been opted by the assessee....

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Release Vehicle & Goods on Furnishing of Indemnity Bond: HC

Sri Gopikrishna Infrastructure Pvt. Ltd Vs. The State of Tripura and ors (High Court of Tripura)

Sri Gopikrishna Infrastructure Pvt. Ltd Vs. The State of Tripura and ors (High Court of Tripura) Mr. Majumder, learned counsel appearing for the petitioner has submitted that for the countrywide lockdown when the vehicle, name of which has been printed in the EWay bill, got stuck in Raipur and it suffered a mechanical failure. Consequent ...

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Trademark- Meaning, Examples, Application, procedure, Cancellation

TRADEMARK ACT,1999 CONTENTS 1. Introduction of intellectual property 2. Meaning of trademark 3. Examples of trade marks 4.Who may apply for trademark ? 5. Documents required for trademark in india 6. Trademark procedures in india 7. Grounds for rectification of registration 8. Cancellation of registration of trademark 9. Precautions of tr...

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Section 2(22)(e) Deeming fiction cannot be applied on mere suspicion

ACIT Vs Shri Gurdeep Singh (ITAT Chandigarh)

ACIT Vs Shri Gurdeep Singh (ITAT Chandigarh) The intention behind enacting provisions of section 2(22) (e) are that closely held companies (i.e. companies in which public are not substantially interested), which are controlled by a group of members, even though the company has accumulated profits would not distribute such profit as divide...

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Dispute of Inheritance of Shares cannot be decided under Companies Law: SC

Aruna Oswal Vs Pankaj Oswal & Ors. (Supreme Court)

Aruna Oswal Vs Pankaj Oswal & Ors. (Supreme Court) Hon’ble Supreme Court held that the basis of the petition is the claim by way of inheritance of 1/4th shareholding so as to constitute 10% of the holding, which right cannot be decided in proceedings under section 241/242 of the Act. Thus, filing of the petition […]...

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Provisions of section 153C on search date will be applied to proceedings

DCIT Vs Late Shri Pravinsinh N Zala (ITAT Rajkot)

DCIT Vs Late Shri Pravinsinh N Zala (ITAT Rajkot) Whether the amendment brought under the provisions of section 153C of the Act, where the word ‘belong’ was replaced with the word ‘pertain’ is applicable for the year under consideration. It was only on 1st June, 2015 when the amended provisions came into force that the […]...

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Assessee not liable to justify source of source of money received by him

Mahipal Ishwarlal Sottany Vs ITO (ITAT Ahmedabad)

Assessee is not expected to prove the genuineness of the cash deposited in the bank accounts of those creditors because under law the assessee can be asked to prove the source of the credits in its books of account but not the source of the source...

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No liability on assessee to deduct merely based on provisions

AT& T Communication Services India Pvt Ltd Vs DCIT (ITAT Delhi)

 The fact that provision made at the end was reversed in the beginning of next accounting year showed that there was no income accrued. Mere entries in books of account did not establish accrual of income in the hands of payee and hence there was no liability on assessee-company to deduct merely on the provisions made at year end....

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Peak Credit Computation- Both deposits & withdrawal needs to be considered

Shri B.A.Moideen Bava Vs DCIT (ITAT Bangalore)

Shri B.A.Moideen Bava Vs DCIT (ITAT Bangalore) The issue raised by assessee is on merits is regarding peak credits in unaccounted bank accounts of assessee’s. It has been submitted that peak credit has to be computed on the basis of actual deposits and withdrawal and not on the basis of cash deposit alone. Accordingly, we […]...

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18 Benefits Under MSME Registration

MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes, and incentives promote MSMEs through the MSMED Act. To avail of the benefits under the MSMED Act from the Centr...

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Blocked Credit under GST | Section 17(5) | CGST Act, 2017

Blocked Credit {Sec.17 (5) of CGST Act, 2017} Introduction:- Though the idea behind implementation of GST is free flow of tax credit, input tax credit is not available in respect of certain inward supply of goods or services as per Section 17(5) of the CGST Act, 2017. {Sec.17 (5)} Cases where ITC is not available:- […]...

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Checklist For Incorporation of Private Company

Applicable Provisions 1. Section 3(1)-Private company should have  two or more person as a subscriber. 2. Section 149(1)-Private Company should have minimum 2 directors and maximum 15 directors Proviso of 149(1)(b) a company can appoint more than 15 directors by passing special resolution. 3. Section 12(1)-Every company should have regis...

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SEBI Compliance Calendar of Listed Companies

Compliance Calendar of Listed Companies – Quarterly, Half Yearly, Annually & General Compliances The Companies which are listed on stock exchanges has to mandatorily comply with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2018 or SEBI (LODR). In this article, we shall...

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8 Steps for Conversion of Public Company Into Private Company

PROCEDURE FOR CONVERSION OF PUBLIC COMPANY INTO PRIVATE COMPANY (Section 13 and 14 of the Companies Act, 2013 Read with Rule 41 of Companies (Incorporation) Rules, 2014) Step-1 Hold a Board Meeting: > To obtain the approval for conversion of Public Company into Private Company. > To make amendments in MoA and AoA subject to [&hellip...

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How to float a company in Delaware, USA- Most business-friendly state

Almost any businessman wanting to start a business in the United States of America would invariably enquire the name of the state which would offer him the most business-friendly atmosphere. This aptly ensures the name of Delaware, U.S.A., like the one of legal home to one million businesses that hold its licenses. “What is so […...

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Prohibition of Insider Trading

SEBI (Prohibition of Insider Trading) Regulations, 2015 The listed entity has to ensure that they adhere to the policy of Insider Trading at all times.  In these days we witness no.of such cases pertaining to the involvement of Senior Management personnel itself. The defenses mechanism adopted by the violator is ignorance of policy in pl...

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Different Directors Under The Companies Act, 2013

When we talk about a company, Board of directors of company are important persons who are responsible for operating a business operation of company. Accordingly, there are different types of directors whose role differs from one to another. Let us go through different types of director with their other aspects. Before that we need to [&he...

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New GSTIN for merged Union Territory of Dadra & Nagar Haveli and Daman & Diu

Trade Notice No. 28/2020-21 (13/07/2020)

It is decided by the GST Council to give 26 as State Code 26 to the merged Union Territory of Dadra and Nagar Haveli and Daman and Diu w.e.f. 01-08-2020. Therefore, all the Registered Persons in the erstwhile Union Territory of Daman and Diu having GSTIN(Goods and Service Tax Identification Number) starting with State Code 25 will be swi...

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7.1% Interest on PF deposit WEF 01.07.2020 to 30.09.2020

F. No. 5(2)-B(PD)/2020 (13/07/2020)

It is announced for general information that during the year 2020-2021, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st July, 2020 to 30th September, 2020. This rate will be in force w.e.f. 1st July, 2020. The fun...

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One-time Relaxation for Verification of Last 5 years “E-filed” Income Tax Returns

Circular No. 13/2020-Income Tax (13/07/2020)

One-time relaxation for Verification of tax-returns for the Assessment years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which are pending due to non-filing of ITR-V form and processing of such returns...

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November 2020