"23 July 2020" Archive

GST/Compensation Cess on Used Cars: FAQs

GST and Compensation Cess Applicability on Sale of Old/Used Motor Vehicle in different Scenario Take Away from this article: Whether GST and Compensation Cess is applicable at different rates and/or Concessional rates or not on sale of old/used motor vehicle GST applicability on sale of Old/Used car in the following scenario has always be...

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GST on Apparel Industry

Preface Indian textiles and apparel have global appeal. Cotton, silk, and denim from India are highly popular in foreign Countries, and with increasing Indian design talent, Indian apparel too has found success across fashion centres around the world. India is the world’s second-largest exporter of textiles and apparel with a massiv...

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New Tax Regime Versus Old Tax Regime – Tax Calculator

The Central Board of Direct Taxes (CBDT) vide Circular No. 8/2020 dated April 13,2020 has clarified that an employer will have to deduct TDS for FY 2020-21, from an employee’s salary on the basis of the tax regime chosen by the employee else by default TDS would be deducted as per Old Tax Regime Rates. The Union […]...

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Tax Implications on Sale of Immovable Property by NRI

Due to vast provisions of Income Tax Act, 1961 regarding taxation of non-residents, most of the time NRI’s gets confused by the provisions of law governing the taxability of their income in India. Most of the NRI’s have immovable properties in India and they get puzzled about taxation on sale of the immovable property. Apart […...

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New Form 26AS

1. CONCEPT OF FORM 26AS Form 26AS is the consolidated annual tax credit statement issued by income tax department. It  contain information about tax deducted by employer, banks and other persons, tax collected on sale made to buyer, refund given, self-assessment tax and advance tax taxes paid, details of high value transactions and TDS d...

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Analysis of Section 74 -CGST Act 2017

Simplified GST Series -Section 74- CGST ACT 2017 Section 74-Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts. (1) Where it appears to the proper officer that any tax has not been paid or short [&hellip...

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Reducing documentation for outward supplies under GST

An effort has been made in this article to analyse the possibility of converting the regular supplies into ‘continuous supply of goods’ in order to reduce the compliance burden for the person registered under GST. Concept of continuous supply In GST, the term “continuous supply of goods” has been defined to mean “supply of goods...

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Compliance (Complications) under Section 16(2)(D) (180 Days) of CGST Act, 2017

Input Tax Credit (ITC) under GST is the GST credit paid and subsequently availed by taxpayers to be set-off against their GST payable. However, not all ITC is available to a taxpayer. Some ITC is ineligible for claim from the time it’s incurred by the taxpayer while other ITC become ineligible after availment by way […]...

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Principle of Double Taxation: A Jurisprudential Approach

The lack of an express legislation has always embarked a debate surrounding the issue of double taxation. Taxes are a compulsory imposition but by virtue of the constitution of India, taxes can only be imposed by the force of law. The presence of Article 265 of the constitution gives a statutory recognition to taxability....

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How to file Form GSTR-4 (Annual Return) (For FY 2019-20 Onwards)

Manual on Filing Form GSTR-4 (Annual Return) (For FY 2019-20 Onwards) How can I create and file details in Form GSTR-4 (Annual Return) (For FY 2019-20 Onwards)? To create and file details in Form GSTR-4 (Annual Return) (For FY 2019-20 Onwards), perform following steps: (I) In case, you want to file NIL return in Form GSTR-4 (Annual Ret...

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Source of Source – Section 68- Income Tax Act 1961

Source of Source – Section 68 In the recent judgement of DCIT Vs M/S. Kejriwal Industries Ltd, I.T.A No.1509/AHD/2016 dated 4-5-2020, Hon’ble ITAT Surat held in favour of assessee. On the issue of section 68 of Income Tax Act 1961, Hon’ble ITAT held that assessee need not prove ‘source of source‘. The relevant part o...

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Interest on delayed payment of GST | Section 50 | CGST Act, 2017

1. Introduction: Interest is compensatory in character and is imposed on a registered person who has withheld payment of any tax as and when it is due and payable. It is a settled principle1 that interest is a mere accessory to the principal which has no independent existence of its own. Accordingly, interest is payable […]...

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Section 40A(2)(b) cannot be invoked merely for Unregistered agreement

DE Diamond Electric India Pvt Limited Vs ACIT (ITAT Delhi)

DE Diamond Electric India Pvt Limited Vs ACIT (ITAT Delhi) One of the ground taken by the AO for invoking section 40A(2)(b) is the agreement between the parties has not been registered. In our opinion, an unregistered agreement cannot be a ground for invoking provisions of section 40A(2)(b) of the Act in absence of requirement […]...

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Opportunity to serve society: Corporate Social Responsibility (CSR)

Corporate Social responsibility (CSR) is continuing commitment by businesses to integrate social and environmental concerns in their business operations. India became the first country to legislate the need to undertake CSR activities and mandatorily report CSR initiatives under the new Companies Act 2013. Prior to Companies Act 201...

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Jio – The Hotcake for Foreign Investors – 2020

Ever since the Facebook-Jio Platforms deal has been revealed, the later is witnessing an unending flow of foreign direct investments from various entities. The latest one being the Rs.33,737 crores investments by Alphabet Inc. aka Google. It is equivalent to 7.7% stake. This fresh inflow moved the investments tally up to Rs.1,52,056 crore...

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NFRA bans another auditor in IL&FS case for 5 Years & levied penalty

NFRA Order No. NF-20012/1/2020 (23/07/2020)

NFRA makes the following order in terms of Sec 132(4)(c) of the Companies Act, 2013. (i) A monetary penalty of Rs Five Lakhs is levied upon CA Rukshad Daruvala. (ii) In addition, CA Rukshad Daruvala is debarred for a period of five years from being appointed as an auditor or internal auditor or undertaking any […]...

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Govt establishes Central Consumer Protection Authority as body corporate

Notification No. S.O. 2422(E) (23/07/2020)

MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (Department of Consumer Affairs) NOTIFICATION New Delhi, the 23rd July, 2020 S.O. 2422(E).—In exercise of the powers conferred by section 10 of the Consumer Protection Act, 2019 (35 of 2019) and with effect from the 24th day of July, 2020, the Central Government hereby establish...

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Managing Director appointment | Companies Act, 2013

As per the Companies Act, 2013 Managing Director means a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the p...

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Filing of FC-TRS – Reporting to Reserve Bank of India

The literal meaning of Form FC-TRS is Foreign Currency Transfer of Shares. This form is filed in case of transfer of shares of an Indian Company from a resident to a Non-Resident/Non-Resident Indian and vice versa through its authorised dealer bank (AD Category-1 Bank)...

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Reduction of Share Capital | Section 66 | Companies Act, 2013

Reduction of Share Capital under Section 66 of Companies Act, 2013 1. Way of Reduction of Share Capital Section 66(1) 1. Extinguishment or reduce the liability on any shares in respect of share capital not paid up; 2. either with or without extinguishment or reducing liability on any shares- i. Cancel any paid-up share Capital […]...

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Top 7 Tips on Cracking CFA Exam

So, you have finally registered for the Chartered Financial Analyst (CFA) as a candidate, Welcome! In the beginning, facing the first challenge of your CFA journey can be overwhelming and exciting. A CFA exam is not only a test of aspirant’s intellect but also their creativity, patience, and will power. Like any other standardized exam,...

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Invest Your Money Now

It always been said that plan your today well and don’t think about tomorrow because of its uncertainty. And the current situation of the pandemic in the world was even impossible to anticipate. No one had ever visualized the current situation which the masses are going through. The adversity which everyone is experiencing was never...

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Analysis of Delhi Shops and Establishments Act,1954

ELIGIBILITY FOR REGISTRATION UNDER ACT: Any Shop or Commercial establishment shall apply for registration within 90 days of commencement of establishment. Some important interpretations: I. Establishment means any shop or a commercial establishment. (Section 2(9) of the act defines Establishment) II. Commercial establishment”: means...

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GST Anti-profiteering- Delhi HC stays NAA order asking Reckitt to deposit Rs 63 lakh

Reckitt Benckiser India Private Limited Vs Union of India And Ors (Delhi High Court)

In the latest anti profiteering case of pharma major Reckitt Benckiser over alleged profiteering of 63 lakh from the sale of Dettol handwash between 2017 to 2019, Hon’ble Delhi High court has stayed the order of National anti-profiteering authority for deposit of alleged profiteering amount in the consumer welfare fund. ...

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Consumer Protection (E-Commerce) Rules, 2020

Notification No. G.S.R. 462(E) (23/07/2020)

Any inventory e-commerce entity which explicitly or implicitly vouches for the authenticity of the goods or services sold by it, or guarantees that such goods or services are authentic, shall bear appropriate liability in any action related to the authenticity of such good or service....

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Food Safety and Standards (Food Products Standards and Food Additives) Fifth Amendment Regulations, 2020.

Notification No. F.No.A-1/Standards/Agmark/2012-FSSAI(p+1) (23/07/2020)

. (1) These regulations may be called the Food Safety and Standards (Food Products Standards and Food Additives) Fifth Amendment Regulations, 2020. (2) They shall come into force on the date of their publication in the Official Gazette and Food Business Operator shall comply with all the provisions of these regulations by 1st July, 202...

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Extension of MIS/SCSS/KVP/NSC/PPF schemes up to GDS Branch Post Office level through cheque

S.B. Order 27/2020 (23/07/2020)

The references have been received in this office from time to time to provide MIS/SCSS/ NSC/KVP/PPF schemes in GDS Branch Post Offices. The matter has been examined in detail in the light of Rule 3 (a) of "Government Savings Promotion General Rules-2018" and the competent authority has accordingly decided to allow account opening for MIS/...

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Do vision of 5 Trillion Dollars economy by 2024-25 still hold Good?

Outbreak of Covid Pandemic has put a lot of challenges in front of us. Apart from Millions of cases and Lacs of Deaths, it is pushing almost every nation towards Economic Slowdown. Economic Slowdown in simple terms be construed as that an economy will not grow the same way it was growing earlier (Will Grow […]...

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Draft Food Safety and Standards (Food Products Standards and Food Additives) Amendment Regulations, 2020

Notification No. F. No. Reg/Stds-Khesari dal/FSSAI-2020 (23/07/2020)

These regulations may be called the Food Safety and Standards (Food Products Standards and Food Additives) Amendment Regulations, 2020. They shall come into force with effective date for implementation to be either 1st January or 1st July subject to a minimum of 180 days from the date of their final publication in the official Gazette....

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AGM Resolutions – Ordinary & Special resolutions – Drafts

The concept of Annual General Meeting (AGM) has been defined under Section 96 of the Companies Act, 2013. It can be considered as an annual gathering of Directors and Shareholders / members of the Company to discuss the future of the Company and also company’s overall performance is analyzed. MCA CLARIFICATION ON HOLDING OF DIGITAL [&he...

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Format of Report for Code of Conduct violations under PIT Regulations

Circular No. SEBI/HO/ISD/ISD/CIR/P/2020/135 (23/07/2020)

Reporting to Stock Exchanges regarding violations under Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 relating to the Code of Conduct (CoC)....

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SEBI allows OFS & RE transactions during trading window closure period

Circular No. SEBI/HO/ISD/ISD/CIR/P/2020/133 (23/07/2020)

It has been decided that in addition to the transactions mentioned in Clause 4 (3) (b) of Schedule B read with Regulation 9 of PIT Regulations, trading window restrictions shall not apply in respect of OFS and RE transactions carried out in accordance with the framework specified by the Board from time to time....

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Process of Udyam Registration

New process of Classification and Registration of MSME is started from 1st July, 2020. An enterprise for this purpose will be known as Udyam and its Registration Process will be known as 'Udyam Registration'....

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Reconciliation of Share Capital Audit Report for Unlisted Public Company in E-Form Pas-6

Reconciliation of Share Capital Audit Report for Unlisted Public Company in E-Form Pas-6 ♦ MCA NOTIFICATION MCA has Substituted/amended Rule 9A(8) of Companies (Prospectus and Allotment of Securities) Rules, 2014 through Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2019 dated 22/05/2019. ♦ EFFECTIVE DATE O...

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Date of applicability of Consumer Protection Act 2019 provisions wef 24.07.2020

S.O. 2421(E) (23/07/2020)

Central Government hereby appoints the 24th day of July, 2020 as the date on which the following provisions of Consumer Protection Act, 2019 shall come into force ...

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Automated Accounting: For Business Growth & Development

Automated accounting helps accountants with the mundane tasks of accounting such as bill payments and invoices. As the tasks of accounting are getting automated, so the accountants can use the data from technology and execute it in real business at a much greater pace.  Over 50% of C-level executives expect that with the intelligent auto...

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Transfer of Shares of Listed Insurance Companies- IRDAI clarifies

Ref. No: IRDA/F&A/CIR/TRSH/195/07/2020 (23/07/2020)

With a view to bringing more clarity on certain issues relating to transfer of shares of insurance companies by promoters/shareholders, the Authority in exercise of the powers under sub-section (1) of Section 14 of IRDA Act, 1999 read with Regulation 10 of IRDAI (Transfer of Equity Shares of Insurance Companies) Regulations, 2015...

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Tariff Notification No. 60/2020-Customs (N.T.) Dated: 23.07.2020

Notification No. 60/2020-Customs (N.T.) [S.O. 2423 (E)] (23/07/2020)

Tariff Notification No. 60/2020-Customs (N.T.) in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver. Government of India Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) Notification No. 60/2020-CUSTOMS (N.T.) New Delhi, Dated: 23rd July, 2020 ...

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e-Form PAS-6- Purpose, Applicability, Due date, Provisions

Purpose of Form PAS-6: PAS-6 (Reconciliation of Share Capital Audit Report a half-yearly basis) which is used for reconciliation of the share capital audit report on the half –year basis. APPLICABILITY AND NON-APPLICABILITY OF E-FORM PAS-6 Applicability       Unlisted Public Companies Non-Applicability A Nidhi Company A Government...

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Food Safety and Standards (Food Products Standards and Food Additives) First Amendment Regulations, 2020

F. No. 1-110/SP (Biological Hazards)/Amendment-1/FSSAI/2018 (23/07/2020)

1. (1) These regulations may be called the Food Safety and Standards (Food Products Standards and Food Additives) First Amendment Regulations, 2020. (2) They shall come into force on the date of their publication in the Official Gazette and Food Business Operator shall comply with all the provisions of these regulations by 1st January,...

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Company Secretary- Definition, Appointment, Roles, Responsibilities, Opportunities 

COMPANY SECRETARY A Company Secretary is not just an employee of the Company, he can take a corporate to the highest level with his capabilities and expertise knowledge in the Corporate Laws. He is not just the master of Company Law but also he knows the Interpretation of Law. So, he can become the master […]...

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Supply of customized software was not “Royalty: ITAT Delhi

Aspect Software Vs DCIT (ITAT Delhi)

Aspect Software Inc Vs DCIT (ITAT Delhi) Consideration received by the Assessee for supply of product along with license of software to End user is not royalty under Article 12 of the Tax Treaty. Even where the software is separately licensed without supply of hardware to the end users (i.e. eight out of 63 customers), […]...

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Section 50C not applies if Market Value of Property reduced due to Defect in Property Title

Aruna Kommuri Vs ACIT (ITAT Hyderabad)

The issue under consideration is whether the provisions of section 50C of the Act can be applied in cases where the market value of the property is reduced due to the defect in the title of the property?...

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No Service Tax on Commission or Agency Fee remitted to entities for handling Vessels outside India

Bharat Petroleum Corporation Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai)

The issue under consideration is whether the commission or agency fee remitted to entities for handling vessels outside India are exempt from service tax as per Section 78 of Finance Act, 1994? ...

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composition scheme under GST & Recent due date extension

Extension of Date to file the GST Return under the Composite Dealers till August 31, 2020 The Central Board of Indirect Taxes and Customs have issued Notification No. 59/2020–Central Tax dated 13th July, 2020 extending the deadline for filing GSTR-4 annual returns for 2019-20 by composition dealers from July 15 to August 31. The Gover...

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New Tax Rate for individual & HUFs- Who Should Opt?

NEW TAX RATE WHO SHOULD OPT? In the Finance Bill 2020, Hon’ble FM Smt.Nirmala Sitharaman introduce a new ‘OPTIONAL PERSONAL INCOME TAX RATE/REGIME’ with reduced rate of tax for individual & HUFs. This new tax rate looks very attractive but it has its own pros & corns and need application of mind to choose between [&h...

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Minimum Alternate Tax (MAT) for Ind AS 115 complaint companies

1. The Finance Act, 2017 amended section 115JB of Income-tax Act, 1961 to provide the framework for computation of book profit for Ind AS complaint companies in the year of adoption and thereafter i.e. to rationalize the provisions of the section in line with Ind AS (Note: Ind AS and not Ind ASs) by inserting […]...

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Demands & Recovery under GST | Section 73 | CGST Act 2017

Simplified GST Series –Demands & recovery /Section 73/CGST ACT 2017 Section 73- Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful misstatement or suppression of facts. (1) Where it appears to the proper officer that any ...

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Agriculture Produce/Agriculturist | Advance Ruling | Section 2(7) | CGST Act 2017

Rara Udhyog (GST AAR Rajasthan); Advance Ruling No. RAJ/AAR/2018-19/06; Dqated- 23/06/2018 Over View- Agriculture Produce Definition ‘agricultural produce‘ in the GST regime The definition of ‘agricultural produce’ has not been provided in CGST Act; rather the term ‘agriculturist’ has been defined under...

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Corporate Compliance Management- Secretarial Audit

A Secretarial Audit is a mechanism to check the compliance of an organization to the laws, rules, regulations, notifications etc prevalent at the time of the audit. In this case, it is to check if a company has been complying with the provisions of the Companies Act 2013 and all of its rule therein....

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Common Mistakes While Filling TDS Returns

This article shall highlight common mistakes that are made while filing TDS returns which result in receiving intimation from TRACES and includes NON-UPDATION OF TAN...

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Casual Taxable Persona Under CGST Act

CASUAL TAXABLE PERSON DEFINITION OF CASUAL TAXABLE PERSON U/S 2(20) OF CGST ACT 2017 Casual Taxable person means:- (1) Undertakes transactions occasionally; (2) Involving supply of taxable goods or services or both; (3) In the course or furtherance of business; (4) Whether as principal, agent or in any other capacity; (5) In a state or [&...

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Income Tax Due dates falling on 31st July 2020

Every year July end due dates have one thing in common and that is ITR filing for the taxpayers whose accounts are not required to be audited. But this time around we are all locked up in our homes due to the COVID-19 pandemic and it’s implication being extension of compliance due dates. Thus, this […]...

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Disallowance of Employee Contribution to PF- Analysis of Case Laws

Article on Disallowance Of Employees’ Contribution To Provident Fund Or Superannuation Fund Or Gratuity Fund Or Any Other Fund For The Welfare Of Employees. Section 43B(b) r.w.s. 36(1)(va) of the Act....

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Consideration under GST | Advance Ruling | Section 2(31) | CGST Act 2017

Over View – ‘Consideration’ Consideration in GST is the basis for deciding upon the value of supply of goods or supply of services. Section 2(31) ‘consideration‘ in relation to the supply of goods or services or both includes–– (a) any payment made or to be made, whether in money or otherwise, in respect ...

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Steps taken for Micro Small and Medium Enterprises (MSMEs)

> New Definition of MSMEs: From a legal perspective, the definition of MSMEs as under Section 7 (1) of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) will be revised by raising the investment limit and while earlier, the Section 7(1) of the MSMED Act classified enterprises as micro, small and medium […...

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Changing Perspective of Sweat Equity Shares

Beyond the accounting sheet, employees are the asset of the organisation and like any asset, your people need to be invested in. Companies offers various benefits to the workers who offer their valuable expertise in the organisation. There is a way of EQUITY COMPENSATION for the employees who give their hard work and perspire for [&hellip...

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Word Format of Share Certificate

Shares As per Section 2(84) of Companies Act, 2013, Share means Share in the share capital of a Company and Include stocks. A share certificate is a certificate issued by a company certifying that on the date the certificate is issued a certain person is the registered owner of shares in the company i.e. A […]...

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Importance of FRM In The Present Industry

The world economy is evolving and quite complicated. With economies marching towards constant development through research, there are new opportunities along with unprecedented threats in the business environment. Banking failures and mortgage failures are few such examples of meltdowns. Stakeholders are concerned about strategies which m...

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PAS-6 Reconciliation of Share Capital Audit by A PCS

PAS-6 Reconciliation of Share Capital Audit Report (Half Yearly) 1. As per MCA notification dated 10th September, 2018 came into force on the 2nd day of October, 2018. In the Companies (Prospectus and Allotment of Securities) Rules, 2014, after rule 9, the following rule shall be inserted, namely: – (It is mandatory to for every [&h...

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32 Income Tax Amendments – Assessment Year 2020-21

32 Amendments relating to Assessment Year 2020-21 (Finance Act 2019) alongwith Section 111A, 112, 112A, 115JB, 115JC, 115BAA and 115BAB explained RATES OF TAXES APPLICABLE TO ASSESSMENT YEAR 2020-2021 (FINANCIAL YEAR 2019-2020) A. INDIVIDUAL AND HINDU UNDIVIDED FAMILY a) Individual Below 60 years /HUF Particulars of Taxable income Rate a ...

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Prior RBI approval on change in management/control of NBFC

Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of Non-Banking Financial Companies (NBFCs) As per the RBI Notification DNBS (PD) CC.No.376/03.10.001/2013-14 and Notification No. DNBS(PD) 275/GM(AM)-2014 dated May 26, 2014 Prior approval of RBI is to be taken when there is change in management/ ...

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Short Summary on Convertible Note

CONVERTIBLE NOTES In India, in the recent years, there has been a huge start up growth. More people especially the youngsters come up with innovative ideas to start a business. There are many young people who have the potential and capability to initiate their own startup. Everyone is aware of the fact that one of […]...

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