"25 August 2020" Archive

Interest on Net GST Liability wef 01.09.2020- Govt notifies New Battle for Taxpayer

Notification No. 63/2020–Central Tax (25/08/2020)

CBIC notified Proviso to Section 50(1) of CGST Act, 2017 – Interest in GST to be levied on Net Tax liability w.e.f September 1, 2020 and on Gross Liability till 31st August 2020. Section 50 of CGST Act 2017 was amended by Finance (No. 2) Act, 2019 (23 of 2019) by inserting a proviso to […]...

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GST Actionable for September 2020

September 2020 marks an important month for completion of major compliances under Goods & Services Tax. We present below the list of activities which should be executed by the registered person in September 2020. 1. Amendment in GSTR-1 for FY 2019-20 As per first proviso to Section 37(3) of the CGST Act, 2017, no rectification [&helli...

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Permissible Ambit of Delegated Legislation – Part II Judicial control under GST

The delegated legislation does not go beyond the reach of the judicial review of the Supreme Court and of the High Courts. Part I of the article is dealt with the manner in which delegated legislation is conceptualized under tax laws. This Article being an extension is aimed to analyse the issues populated under GST […]...

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Permissible Ambit of Delegated Legislation – Part I As conceptualised in tax laws

I. Concept of delegated legislation – Ramanatha Aiyar’s, The Law Lexicon, defines delegation as an act of making or commissioning a delegate. Subordinate/delegated legislation is a process by which the executive is given powers by primary legislation to make laws in order to implement and administer the requirements of that primar...

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GST -Section 50 CGST Act, 2017 – Interest liability for delayed payment of GST on net cash tax liability

Prasanna Kumar Bisoi Vs Union of India (Orissa High Court)

Prasanna Kumar Bisoi Vs  Union of India  (Orissa High Court) In a recent ruling passed by Hon’ble Orissa high court, held that w.r.t. interest liability for delayed payment of GST under Section 50(1) of the CGST Act, 2017, is required to be paid on net cash tax liability in view of the decision taken by […]...

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A Glimpse of recent Changes in GST Law and its Rates

The implementation of GST will go down in history as one of the most fundamental landmark reforms in Indian taxation. Before GST, the combination of VAT, Excise, Central Sales Tax and the cascading effect of tax on tax resulted in the standard rate of tax being as high as 31% in many cases. The multiple […]...

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Be-Aware of Transparent Taxation & Beware of Tax Scope

BE-AWARE OF TRANSPARENT TAXATION & BEWARE OF TAX SCOPE Honourable Prime Minister Narendra Modi, on 13th August 2020, launched a platform for ‘Transparent Taxation’ for honoring the honest taxpayers. The platform brings in a transparent, efficient and accountable tax administration. It uses technology, Data Analytics and Ar...

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TCS on Goods Sold: Applicability of New Section 206C(1H) w.e.f 1st October 2020

Introduction Finance Act 2020 introduced a new provision under Section 206C (1H) for the Tax Collected at Source (TCS) on Goods With effect from 1st of October 2020. As per the new provision if any seller of any goods whose turnover in the preceding FY exceeds Rs. 10 Crore then, from 1st of October 2020, […]...

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How to disclose transactions/adjustments of FY 17-18 in Annual return of FY 18-19?

Completed 3 years in operation but still struggling to rise-up to the average expectations of the stakeholders; GST has proved to be a loop of extension of compliance deadlines. One such compliance is the filing of Annual Return (Form GSTR 9) and GST Audit (Form GSTR 9C)....

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GAAR and PPT: Beginning of a new era of co-existence?

The global tax landscape is constantly evolving to keep pace with ever-changing business models and structures. Introduction of the Base Erosion and Profit Shifting (BEPS) project by OECD/G-20 in the year 2016 was one such significant international stepsince the advent of bilateral tax treaties, wherein more than 100 countries collaborate...

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MCA maiden success in recovery of $3.25 million in Nirav Modi case from USA

Release ID: 1648579 (25/08/2020)

PNB has informed MCA which spearheaded the corporate governance litigation in a foreign jurisdictional Court, that it has received $ 3.25 million (equivalent of Rs. 24.33 crore) as the first tranche of recoveries....

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Bank Account disclosed in ITR found in search cannot be treated as Incriminating Material

Sarva Priya Holdings Pvt. Ltd. Vs DCIT (ITAT Kolkata)

The issue under consideration is whether the addition made by AO u/s 68 by considering the share application money received by assessee as unexplained cash credit is justified in law?...

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Employee of PSU & Nationalised Banks Not Treated as Government Employee for Exemption u/s 10(10AA)

Kamal Kumar Kalia & Ors Vs Union Of India & Ors. (Delhi High Court)

The issue under consideration is whether the assessee being employee of Public Sector Undertaking (PSU) and Nationalised Banks treated as government employee for the purpose of exemption u/s (10AA)(i)?...

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Disallowance for plugging profit leakage cannot be supported: ITAT

Urban Infraprojects Pvt. Ltd. Vs ACIT (ITAT Kolkata)

ITAT states that, anyhow disallowing 10% of the expenditure on the ground that profit leakage has to be plugged cannot be supported. Keeping in view the facts and circumstances of the case, some disallowance of a random amount of 5 lakhs, in our view, would meet the end of justice. In the result, the balance disallowance is deleted and th...

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Ex Parte Order is Not Justified if Notice is Served on Wrong Address

Vibgyor Tech Solutions Pvt. Ltd Vs ITO (ITAT Kolkata)

The issue under consideration is whether ex parte order passed by CIT(A) because of non attendance of assessee on the date of hearing is justified in law?...

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Income from Foreign Asset Earned through Pension mentioned in FA Schedule is Not Taxable in India

Sankha Mukherjee Vs ACIT (ITAT Kolkata)

The issue under consideration is whether the addition on the income from foreign asset earned through the retirement plan mentioned in FA schedule is taxable in India or not?...

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Interest on Enhanced Compensation u/s 28 of Land Acquisition Act, 1894 is Exempt u/s 10(37)

ITO Vs Sh. Dhanender Kumar HUF (ITAT Chandigarh)

whether interest received u/s 28 of the Land Acquisition Act, 1894 on compulsory acquisition of agricultural land in the nature of compensation is exempt u/s 10(37) or chargeable to tax under head 'Income from Other Sources'?...

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HC Restrain CG to Appoint Lawyers as Technical members to GSTAT

Service Bar Association Vs Union of India (Madras High Court)

High Court restricted the Central Government from appointing technical members to the Goods and Services Tax Appellate Tribunals (GSTAT) until further orders....

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No Equalisation Levy Applicable in case of Mastercard Asia

Mastercard Asia Pacific Pte. Ltd. Vs Union of India & Ors. (Delhi High Court)

The issue under consideration is whether the equalisation levy will be applicable in case of Mastercard Asia or not?...

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Assessment Initiated on Non-Existing Entity Considered as Void ab Initio

Atos India Pvt. Ltd. Vs DCIT (ITAT Mumbai)

Atos India Pvt. Ltd. Vs DCIT (ITAT Mumbai) The issue under consideration is whether the assessment initiated in the name of a non-existing entity is justified in law? ITAT states that, even after the learned DRP taking into account the fact of merger and passing order by giving directions to the learned AO in the […]...

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Additional Court Fees of 1% of Amount involved in dispute leviable before filing of GST Appeal

Akay Flavours and Aromatics Pvt. Ltd. Vs Asst. Commissioner (Kerala High Court)

The issue under consideration is whether additional court fees of 1% of the amount involved in the dispute leviable before filing of the appeals under GST Act is justified in law?...

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HC direct GST authorities to decide on release of IGST & Duty Drawback

AAR Impex Vs Union of India (Delhi High Court)

High Court direct GST authorities to decide Question of IGST & Duty Drawback...

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Marketing Expense for Issuance of Handsets on Free of Cost is allowed as Business Expense

Nokia India Pvt. Ltd. Vs ACIT (ITAT Delhi)

The issue under consideration is whether the marketing expenditure incurred on account of issuance of handsets on free of cost basis is allowed as business expense or not?...

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Second Re-Assessment Notice Issued against Johnson & Johnson is Rejected by ITAT

Johnson & Johnson Private Limited Vs Add. CIT (ITAT Mumbai)

The issue under consideration is whether the re-opening of assessment u/s 147 of the Act is justified in law?...

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Depreciation under Block of Assets Allowed even for Non Used Assets during the Year

Bharat Mines And Mineral Vs ACIT (ITAT Bangalore)

The issue under consideration is whether under block of assets, the depreciation allowed even for those assets which have not been used during the year under consideration?...

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NCLAT rejected Resolution Plan submitted after Expiry of Deadline for Submission of Resolution Plan

Kotak Investment Advisors Limited Vs Krishna Chamadia (NCLAT Delhi)

whether Resolution Plans submitted after the expiry of deadline without obtaining any CoC resolution to extend the deadline and issuing notice for inviting EoI from other potential resolution applicants is justified in law?...

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Compounding of Offence under FEMA, 1999

1. Relevant Section- Section 15 of the FEMA 1999 2. Maximum time of application-Within 180 days from the date of contravention under section 13 of FEMA 1999 3. Adjudicating Authority-RBI 4. Section 13 of the FEMA- General penalties under FEMA- if any person contravenes any provisions of FEMA, Rules, Regulations, Notifications, Direction o...

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Importance of reviewing investment in different market scenarios

Our purpose of investment is to earn good returns with minimum risk to reach our desired goal, hence one need to continuously monitor their investments & re balance whenever required. We will discuss when one need to take steps towards the change in his portfolio. If our investment is subject to higher risk then there […]...

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Accounting for Corporate Social Responsibility (CSR) Expenditure

The Companies Act 2013 introduced provisions related to fulfillment of Corporate Social Responsibility by certain companies (net worth Rs. 500 crores or more; or Turnover Rs. 1000 crores or more; or Net Profit of Rs. 5 crores or more) by making certain eligible expenditures/ payments. Once companies cross the threshold limit for CSR, they...

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Regulatory framework for payment systems: India VS United Kingdom

Reserve Bank of India vides its communication dated 18th August 2020 has placed in its web site a draft framework for the grant of recognition to an industry association as a Self-Regulatory Organization (SRO) for Payment System Operators (PSOs). The SRO shall cover operators in all segments of payment systems and will be expected to [&he...

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New E-Commerce Rules for Consumer Protection in India 2020 | Complete Details

At its etymological core, ‘e-commerce’ means the process of buying and selling products and services through the use of the internet. The Organisation for Economic Cooperation and Development (OECD) very cogently defines an e-commerce transaction as the sale or purchase of goods or services, conducted over computer networks by methods...

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ITAT explains Transfer pricing implications for interest free loan

Motherson Sumi Infotech & Designs Ltd. Vs DCIT (ITAT Delhi)

Motherson Sumi Infotech & Designs Ltd. Vs DCIT (ITAT Delhi) We find that the next issue raised is against the transfer pricing adjustment made on account of interest due on receivables outstanding. The said issue stands covered in favour of the assessee by the decision of the Tribunal in M/s. Global Logic India Ltd. for […]...

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HC set aside order in Form GST DRC-01A passed without sufficient Opportunity

Formative Tex Fab Vs State of Gujarat (Gujarat High Court)

Formative Tex Fab Vs State of Gujarat (Gujarat High Court) Issue was without giving proper opportunity the officer had issued DRC-01A and attached the property. Hon’ble Court was pleased to Quash and set aside the Form DRC-01A. Full Text of the High Court Judgment 1. By this writ application under Article 226 of the Constitution [&helli...

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Benefits of Buying an Engine Protect Add-On Cover for Your Car This Monsoon

With monsoon touching almost all parts of the nation, it is bringing the much-needed relief from the summer heat. Monsoon is not only relief from the hot drenching summers but has its share of problems. One such issue that is common across all urban jungles is waterlogging. Clogging of waste and dirt that does not […]...

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Option to debit duty through Duty Scrip for Project Imports Bills of Entry

Public Notice No. 104-2020-JNCH (25/08/2020)

OFFICE OF THE COMMISSIONER OF CUSTOMS (NS-V), GR.VI, JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA, TALUKA URAN, DIST. RAIGAD, MAHARASHTRA-400 707. F. No. S/26-M isc-214/2020-21/Gr VI/JNCH Date: 25.08.2020 PUBLIC NOTICE No. 104-2020-JNCH DIN :20200878NX00008N0346 Subject: ICES Advisory 10/2020 (Project Imports) – Option to debit duty t...

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1. Relevant Provision  Schedule 1 to Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations. 2. When these provisions attract? In case if investee company receiving FDI for issue of shares 3. Timelines Within 180 days of receipt of foreign investment and requires filling of FCGPR with R...

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Anti-dumping investigation concerning imports of Choline Chloride

Case No. ADD-OI-12/2019 (25/08/2020)

Final Findings in anti-dumping investigation concerning imports of Choline Chloride in all forms originating in or exported from China PR, Malaysia and Vietnam....

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No Penalty for violation of Section 171(1) of CGST Act before 01.01.2020

Vasantbhai Bhikabhai Patel Vs Shree Infra (NAA)

Vasantbhai Bhikabhai Patel Vs Shree Infra (NAA) Central Government vide Notification No. 01/2020- Central Tax dated 01.01.2020 has implemented the provisions of the Finance (No. 2) Act, 2019 from 01.01.2020 vide which sub-section 171 (3A) was added in Section 171 of the CGST Act, 2017 and penalty was proposed to be imposed in the case [&h...

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Co-operative societies & Principle of mutuality – The never ending saga

Principles of mutuality will still prevail under the GST regime and hence the concept of applicability of GST on co-operative societies would remain to be a bigger challenge until finality is attained....

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Faceless Assessment Procedure

Hon’ble PM launched Transparent Taxation Scheme on 13th August 2020 in which Income-tax Assessments through electronic mode was made mandatory. The move was made to reduce interaction between Income-tax Officers and Assessee as a result of which corruption will be reduced to greater extent....

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MAP Guidance Issued By CBDT As Recommended By OECD

INTRODUCTION: > Any country suffering disputes with respect to Transfer Pricing adjustments, Existence of a Permanent Establishment, Attribution of profits to a Permanent Establishment, Characterisation or re-characterisation of an income or expense lead, on being result taken, by legal or administrative authorities as per domestic law...

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FAQs -CS Executive Entrance Test (CSEET) through Remote Proctored Mode

Q.1 How the CSEET will be conducted? Will it be conducted from Test Centres or from Home? CSEET shall be conducted through REMOTE Proctored mode instead of conducting the same from Test Centres. Candidates are allowed to appear for the test through laptop/desktop from home or such other convenient and isolated place. Candidates shall not ...

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Statutory Audit & eligibility for appointment as Internal Auditors in Public Companies

WEBINAR on the Opinion of the Council of Institute of Cost Accountants of India on Statutory Audit and eligibility for appointment as Internal Auditors in Public Companies under section 138 of the Companies Act, 2013 CMA B. B. GOYAL Former Addl. Chief Adviser Cost Ministry of Finance, Government of India What is Internal Audit? Internal [...

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14 suggestion for review of Customs Laws & Procedures

As per Instruction No. 14/2020-Customs dated 21st July 2020 we are submitting the suggestions for review of existing Customs Duty Exemption Notifications/Customs Laws & Procedures (Annexure attached), as per the feedback received from our members and stakeholders....

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Recalibration of threshold for Minimum Public Shareholding norms, enhanced disclosures in CIRP cases

.The objective of this discussion paper is to seek comments / views from the public and market intermediaries on Recalibration of threshold for Minimum Public Shareholding norms (MPS) in companies which undergo Corporate Insolvency Resolution Process (CIRP) and seek relisting of its shares pursuant to implementation of the approved resolu...

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FAQs on SEBI (Buy-Back of Securities) Regulations, 2018

What is the manner in which the company can buy back its own shares? Can a company buyback its shares without passing shareholders’ resolution? Where can one get details of companies proposing to buyback their shares?...

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Export Policy of Personal Protection Equipment/Masks relaxed

Notification No. 29/2015-2020-DGFT [S.O. 2860(E)] (25/08/2020)

Notification No. 21 dated 28.07.2020 is amended to the extent that the export policy of 2/3 Ply Surgical masks, medical coveralls of all classes and categories (including medical coveralls for COVID-19) is amended from ‘Restricted’ to ‘Free’ category and these coveralls ( including gowns and aprons of all types) ar...

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Meeting of Board of Directors

The Board of Directors of Company is primarily an oversight board. It oversees the management of the company to ensure that the interest of non-controlling shareholders are protected, it also functions as advisory board. Meetings of the Board: -Section 173 of the Act deals with Meetings of the Board and Section 174 deals with quorum. [&he...

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FAQs- Distressed Asset Fund – Subordinated Debt for Stressed MSMEs

Frequently Asked Questions (FAQs) – Distressed Asset Fund – Subordinated Debt for Stressed MSMEs (DAF-SDSM) / Credit Guarantee Scheme for Subordinate Debt (CGSSD) 1. What is Distressed Asset Fund – Subordinated Debt for Stressed MSMEs? The “Distressed Asset Fund – Subordinated Debt for Stressed MSMEs” is a sche...

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Surgical Strike on Cash Transactions

a) Legal Measure Applicable to Receipt of Money i. Section 13A : Exemption for certain income of political parties No donation exceeding Rs.2000 is received by such political party otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank […]...

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Taxability of Advances taken under GST Regime

There are many queries regarding whether all types of advances are exempt from payment of GST. I wish to clarify this doubt by taking the help of various provisions of the law. As per Sec 12 of the CGST Act, 2017 Time of supply of goods is earliest of: 1. Date of issue of invoice 2. […]...

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Utilization of Input Tax Credit under GST

Sub section 5 of Section 49 of CGST Act, 2017 states the manner of utilization of Input Tax Credit in the following manner: -integrated tax shall first be utilized towards payment of integrated tax and the amount remaining, if any, may be utilized towards the payment of central tax and State tax, or as the […]...

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GST on Goods Transport Agency (GTA)

GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. The GST Act does not provide the definition of GTA. The above definition of GTA is given as per para 2(ze) of notification 12/2017- Central Tax (Rate) dated 28-06-2017....

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RBI issued clarification on new definition of MSMEs

The Reserve Bank of India (RBI) in its recent circular (FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21 dated August 21, 2020) to all Commercial Banks including Small Finance Banks, Local Area Banks and Regional Rural Banks, all Primary (Urban) Co-operative Banks/State Co-operative Banks / District Central Co-operative Banks,  all-India Fin...

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Proposal for Companies to submit report on sustainability of their products

Ministry of Corporate Affairs has set up an expert panel that proposed a new policy for businesses which will require them to provide how their product or services are sustainable and responsible to the society and if they pose any risk to the environment in addition to being compliant with the law....

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Pensions Funds in India & Proposed Draft Rules 2020

On 18th August 2020, the Central Board of Direct Taxes has issued a list of guidelines that prescribe conditions for the pension funds in India to take the benefit of income tax exemptions vide Notification No. 67/2020-Income Tax/[G.S.R. 508(E)] dated-17/08/2020. The announcement comes after a July notification related to Draft Proposed...

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General Errors noticed in Reporting in Form 3CD

General Errors noticed in Reporting in Form 3CD -Section-44AB of Income Tax Act 1961 (TAX AUDIT U/S-44AB of Income Tax Act 1961) ♦ Legislation for A/Y 2020-21 U/s-44AB -Business:-Sales etc > Rs.1 Cr/5 Cr. -Profession:-Gross Receipt etc > Rs.50 Lacs -Business:- U/s-44AE/BB/BBB, Income<Deemed Profit -Profession:- U/s-44ADA, Incom...

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How can Small Businesses Pick the best POS Solution?

For a successful business, it is critical to choose the right point-of-sale (POS) system. POS solutions allow you to accept and process a wide variety of payment methods quickly and securely. Additionally, they can help you with other facets of your business, including inventory, invoicing, and reporting. With several POS options availabl...

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November 2020