"26 August 2020" Archive

Jurisprudence on levying interest under GST – Gross or Net

In the light of above discussion, it is clear that, interest in taxation matters has to be levied as a compensation for deprival of entitled funds to revenue within due date. Whereas with respect to input tax credit, such amounts are already being collected by the revenue from the supplier of the taxpayer and levying of interest from the ...

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Furnishing of GSTR 7 – Section 39(3) of CGST Act 2017

FURNISHING OF GSTR 7 – SECTION 39(3) OF CGST ACT 2017- GST SERIES – PART 27 1. The GSTR-7 form is a monthly return form required to be furnished by all the taxable persons who are required to deduct TDS (Tax Deducted at Source) under 2. Statutory Provisions : Section 39(3) – Every registered person […]...

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Notification no. 63/2020-CT under GST law- nothing to be worried for

Section 100 of the Finance Act (No. 2), 2019 has been notified on 25/08/2020 vide Notification no. 63/2020-Central Tax Dated 25.08.2020. Strong reactions have been witnessed in last few hours after the aforesaid notification made public. Let us recall the total issue before making any bold reaction....

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Do the sarkar (CBIC) win over section 50 breaching what finance minister promised in 39th GST council meeting

Central Board of Indirect Taxes and Customs i.e., CBIC issued Notification Number 63/2020 – Central Tax dated 25th August 2020 regarding effective date of notification from 01-Sep-2020 with respect to section 100 of the Finance (No.2) Act, 2019 (23 of 2019) which inter alia discusses about levy of interest under section 50 of CGST Act [...

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Interest on delayed payment of GST on net liability wef 01.07.2017: CBIC

Release ID: 1648751 (26/08/2020)

CBIC today clarified that Notification No. 63/2020-Central Tax dated 25th August 2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations....

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Kolkata Customs seize 25 antiques idols valued at Rs 35.3 crore

Release ID: 1648771 (26/08/2020)

On the night of 23rd August 2020, the Commissionerate of Customs (Preventive), West Bengal, seized 25 Antiques at South Dinajpur District of West Bengal which were being taken to Bangladesh, through Kaliyaganj border concealed in a Truck carrying Paddy....

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Faceless Tax Assessment System is designed for 21st century

Release ID: 1648814 (26/08/2020)

A National e-Assessment Centre (NeAC) and a network of Regional e-Assessment Centres will be set up to implement the Faceless Assessment Scheme of the Income Tax Department, launched nation-wide by Prime Minister Shri Narendra Modi on 13th August, 2020....

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Implications of AI on the Indian Economy

No.13/07/2020-2021/PDNASS/Misc./ (26/08/2020)

NASSCOM, a not-for-profit industry association, is the apex body for the 180 billion dollar IT BPM industry in India, an industry that had made a phenomenal contribution to India's GDP, exports, employment, infrastructure and global visibility. In India, this industry provides the highest employment in the private sector....

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Discussion Paper on Corporate Liquidation Process

NA (26/08/2020)

Resources are scarce and have competing requirements. Further, the market and organizational failures do happen in a dynamic market conditions, requiring the reallocation of capital from inefficient to efficient uses and redeployment from failing companies to the ones which have better ideas about the ways and means to enhance the efficie...

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Geographical Indications of Goods (Registration and Protection) (Amendment) Rules, 2020

Notification No. G.S.R. 528(E) (26/08/2020)

An application for registration of authorized user under section 17 may be made to the Registrar in Form GI-3 accompanied by a statement of case as to how the applicant claims to be the producer of the registered geographical indication....

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Reporting of violations under SEBI Insider Trading Regulations

Ref No: NSE/CML/2020/44 (26/08/2020)

SEBI vide Gazette Notification No. SEBI/LAD-NRO/GN/2020/23 dated July 17, 2020, has further amended the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations)....

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जीएसटी ब्याज का प्रावधान – एक गंभीर विषय

जीएसटी की एक और विवादास्पद अधिसूचना जारी  जीएसटी की एक और विवादास्पद अधिसूचना संख्या 63/2020 दिनांक 25 अगस्त 2020 जारी की है जिसके अनुसार ...

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GST rates on Real Estate

Types of Real Estate Transactions: These are the following types of transactions which can take place in Real Estate Sector: 1. Supply of immovable properties (Commercial/ Residential) before completion. 2. Supply of immovable properties (Commercial/ Residential) after completion. 3. Sale of Land (Agricultural/ Commercial/ Residential). 4...

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Job work related matters under GST with FAQs

Principal is registered person who sends inputs/capital goods to a job worker for carrying out the job work. The GST law makes special provisions with regard to removal of goods for job work and receiving back the goods after processing from the job worker without payment of GST. Section 2(68) of the CGST Act, 2017 […]...

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RBI: Framework for authorization of pan-India Umbrella Entity for Retail Payments

RBI informed us on 18th August 2020, that it has placed on its web site a framework for authorization of pan-India umbrella entity for retail payments which was released after due deliberations on the basis of comments/feedback received for its draft framework for authorization of pan-India umbrella entity for retail payments which was pl...

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Financial mistakes in financial planning

This article contains some commonly found mistakes while one does in his/her financial planning. Let us know some of them, evaluate ourselves & try not to repeat these mistakes in future so that we may save our money by not spending rather than earning. Some of them are listed below- ♦ MANAGING INCOME / EXPENSES […]...

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Whether Interest Payable on the Net Cash Liability is Prospective or Retrospective 

It is quite obvious that if the notification of CBIC i.e. Notification No. 63/2020 is to be considered as prospective only, the department or the union is accepting that the levy of interest on gross tax liability without deducing the input tax credit to taken from the electronic credit ledger available therein which is amenable to adjust...

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Internal Audit- Tool of Corporate Governance or Assurance to Public !!

The Internal Audit prescribed under Section 138 of Companies Act 2013 has become an apple of discord between the Chartered Accountants and Cost Accountants simply because of defective law governing it. However nobody is addressing the issue for correcting the law to the govt. and CAs are being accused of prevailing over the prerogative to...

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Punishment & Liabilities for certain offences under GST

Offences & Penalties- Punishment & Liabilities /Section 132-133- CGST Act 2017 Section 132- Punishment for certain offences- Section 132 talks about cases of tax evasion and penal actions applicable on specific events subject to amount of tax sought to be evaded.This provision provides for prosecution of offenders and the punishme...

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Taxability of Compensation & Interest awarded by Motor Accidents Claims

As per Income Tax Act, 1961, the definition of income do not specifically define compensation received as income. The question is whether the provisions of the Income Tax Act 1961, and more specifically, whether the compensation awarded by the Motor Accident Claims Tribunal to the victim can be classified as a  taxable income under the [...

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Depreciation for AY 2020-2021 under Income Tax Act, 1961

Depreciation is a way of measuring decline in the value of asset. The main causes of depreciation are the usage , wear and tear and obsolescence of the asset. Since assets are used in the business/profession therefore some amount of such asset can be logically debited to the Profit and Loss Account as a non […]...

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Narcotic Drugs and Psychotropic Substances (Regulation of Controlled Substances) Amendment Order, 2020

Notification No. G.S.R. 536(E) (26/08/2020)

This order may be called the Narcotic Drugs and Psychotropic Substances (Regulation of Controlled Substances) Amendment Order, 2020. (2) It shall come into force on the date of its publication in the Official Gazette....

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Debts Recovery Tribunal (Procedure) Amendment Rules, 2020

Notification No. G.S.R. 537(E) (26/08/2020)

(1) These rules may be called the Debts Recovery Tribunal (Procedure) Amendment Rules, 2020 (2) They shall come into force on the date of their publication in the Official Gazette....

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Breach of Trust by Government- Notification No 63/2020 Dated 25.08.2020

As per Sec 50 (1) of the CGST Act 2017 Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall, for the period for which the tax or any part thereof remains unpaid, pay, on his own, ...

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Financial Service Providers in Insolvency Law

INSOLVENCY FRAMEWORK FOR FINANCIAL SERVICE PROVIDERS (FSPs) In the Indian Insolvency scenario the insolvency and bankruptcy is governed by a uniform law of Insolvency and Bankruptcy Code, 2016 (Code) which came into force in 2016. In the almost 4 years of its inception, the Code has seen a lot of important judgments and orders being [&hel...

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Old tax regime vs. New tax regime- which one is beneficial

Under new tax regime tax has been significantly reduced by forgoing certain exemptions and deductions. The rates of tax, amount of tax and savings under new regime is as follows-...

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Definition of Supply – Section 7(1) of CGST Act, 2017

Section 7(1) of CGST Act, 2017 states that the expression ‘Supply’ includes: 1. all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; 2. import […]...

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Interest Payment on net GST Liability w.e.f. 1st September 2020

1. Notification No 63/2020 – Central Tax dated 25th August, 2020 – CBIC has issued Notification No 63/2020 – Central Tax dated 25th August, 2020 bringing into effect the provisions of Sec 100 of the Finance Act, 2019, which is reproduced below – Sec 100. In section 50 of the Central Goods and Services Tax […]...

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Judicial View – Withholding Refund u/s 241A of Income Tax Act, 1961

In this article we are going to discuss the judicial view to the provisions of section 241A inserted by Finance Act, 2017. However, prior to that, it would be prudent that due regards be given to the provisions prevailing prior to the Finance Act, 2017. 1. Legislative Background 2. Processing of Return prior to Finance […]...

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GST on Security Excise Adhesive Labels

In re Marketing Communication & Advertising Ltd. (GST AAR Karnatka)

In re Marketing Communication & Advertising Ltd. (GST AAR Karnatka) The applicant have sought advance ruling  in relation to supply by applicant to various distilleries and sought ruling on correct classification of Security Excise Adhesive Labels i.e., HSN Code applicable and The rate of tax applicable on supply of Security Excise A...

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Who is Service Recipient – Exporter’s Bank or Exporter himself

Service tax was first introduced in India in 1994 and was only levied on 3 services. Gradually, this net kept on widening and more and more services were added to the list of taxable services. In 2012, India moved from charging Service tax on specified services i.e. positive list regime to all services except for […]...

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Interest on Delayed Payment of Tax – on Gross or Net Tax Liability – Bone of Contention Remains

Interest on Delayed Payment of Tax – on Gross or Net Tax Liability – Bone of Contention Remains There has been a big controversy that whether interest on delayed payment of tax has to be paid on gross tax liability or net tax liability paid through electronic cash ledger after adjustment of input tax credit? […]...

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Taxability on Sale of Agriculture Land under Income Tax Law

Any gain or loss arising from transfer of Capital Asset shall be considered as a Capital Gain or Loss as the case may be. Section 45(1) of the Income Tax, 1961, is charging section and provides that- ‘Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, […]...

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Place of supply for import & export of goods & services under IGST

Introduction The Constitution mandates that no tax shall be levied or collected by a taxing Statute except by authority of law. While no one can be taxed by implication, a person can be subject to tax in terms of the charging section only. This is the charging provision of the IGST Act. It provides that […]...

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Search & Seizure justified for Goods kept under Illegal Custody: HC

Suresh Kumar P.P. Vs Deputy Director (Kerala High Court)

The issue under consideration is whether the initiation of inspection, search and seizure under Section 67 of the CGST Act for goods kept under illegal custody is justified in law?...

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SEBI Regulatory measures to continue till September 24, 2020

Press Release No. 44/2020-SEBI (26/08/2020)

On review of the COVID-19 pandemic related situation, it has been decided that the regulatory measures introduced vide SEBI Press Release dated March 20, 2020' , shall continue to be in force till September 24, 2020....

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UCBs to submit returns under section with RBI by 30.09.2020

RBI/2020-21/28 DoR (PCB).BPD.Cir.No.2/12.05.001/2020-21 (26/08/2020)

Reserve Bank hereby extends the said period of three months for the furnishing of the returns under Section 31 of the Act for the financial year ended on March 31, 2020 by a further period of three months. Accordingly, all UCBs shall ensure submission of the aforesaid returns to Reserve Bank on or before September 30, 2020....

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Customs duty can be demanded only by officer having jurisdiction on import

Samudra Dredgers (UK) Ltd. Vs Commissioner of Customs (CESTAT Bangalore)

The issue under consideration is whether the dredger is covered as a foreign flag vessel and liable for payment of custom duty?...

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SC Refuses to transfer Money from PM CARES Fund to NDRF

Centre for Public Interest Litigation Vs Union of India (Supreme Court)

The issue under consideration is whether the Supreme court will grant permission for transferring the money collected in PM Cares fund to the National Disaster Relief Fund?...

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Chargeability of Rental & Interior Decoration Services under GST

Question: Mr. A is an interior decorator having registered office in Faridabad. He has been assigned with the interior work of a company located in Bhiwadi. Or Question: Mr. A is a landowner who is located in Faridabad and owns an immovable commercial property in Bhiwadi. Now there are two questions which comes in our […]...

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Marginal Scheme under GST

Purpose: 1. To avoid double taxation on the supply of goods which has already been taxed e. Second hand Goods. 2. GST is calculated on the difference between the value at which the goods are supplied and the price at which the goods are purchased e. profit margin unlike GST charged on the transaction value […]...

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Meaning of Aggregate Turnover under GST

As per section 2(6) of CGST Act, 2017 'aggregate turnover' means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Numbe...

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RCM on purchases made from Unregistered Dealer under GST

Reverse Charge Mechanism (RCM) on purchases made from Unregistered Dealer under GST As per Section 9(4) of CGST Act, 2017 and Section 5(4) of IGST Act, 2017 any Supply of goods or service from an Unregistered supplier to a Registered supplier will cast liability to Pay GST to the Government in the form of RCM i.e. […]...

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GST: Reversal of Common ITC related to Interest Income

There are many doubts comes in our mind whether we need to reverse the common ITC related to Interest Income because it represents the part of turnover. I wish to clarify that there is no such reversal at all for the registered person other than a banking company or a financial institution including a non-banking […]...

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Input services ITC also eligible for refund under Inverted duty structure- Impact of Gujarat HC decision

Input services ITC also eligible for refund under Inverted duty structure – Analysis of Gujarat High Court decision and its impact- Introduction: The fundamental principle of GST laws worldwide is that it is a multi-stage tax and tax on value addition, with final consumer alone ultimately bearing the tax. This is ensured by allowing the...

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Insurance claim cannot be denied for not holding valid PUC certificate

Ref. No:2020 (26/08/2020)

There are some misleading media reports to the effect that if there is no valid PUC certificate at the time of accident, claim under a motor insurance policy is not payable. It is hereby clarified that not holding a valid PUC certificate is not a valid reason for denying any claim under a motor insurance policy....

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Confusion on Definition of Financial Institution to avail ITC under section 17(4)

Definition of 'Financial Institution' plays a very key role in determining eligibility of ITC on inputs, capital goods, input services. However, GST act didn"t define the definition of 'Financial Instituion'....

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Upcoming GST Council Meetings- What to Expect?

On 20th August 2020, the GST Council has scheduled two GST Council meetings back to back starting on August 27 and September 19th as 41st and 42nd meetings for 2020 respectively. With a steady decline in the GST collection, the Central Government has expressed its inability to compensate States this time. This agenda is to be discusse...

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Annual Compliance for LLP

Annual Compliance for LLP Relevant provisions : Limited Liability Partnership Act, 2008 and Limited Liability Partnership Rules, 2009 Partnership has been the most desirable form of business since ages. Just by adding a prefix i.e ‘Limited Liability’, A new form of business is created which is LIMITED LIABILITY PARTNERSHIP. The ulteri...

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Changes in Form ITR -1 for AY 2020-21

Central Board for Direct Taxes CBDT has come up with some changes in ITR Forms for AY 2020-21 like every year. Now taxpayers are requested to answer some more questions of high value transactions like deposits in current accounts more than 1 crore, electricity bills aggregating of more than 2 lakhs, etc., Changes in Form […]...

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Claiming Input Tax Credit under GST Regime

1) Introduction:- ITC means reducing the taxes paid on inputs from taxes to be paid on output. When any supply of services or goods is supplied to a taxable person, the GST charged is termed as Input Tax. The concept isn’t entirely new because it already existed under the pre-GST indirect taxes regime (service tax, […]...

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Structural Reforms are a Key Priority of Government: FM

Addressing the captains of the Indian Industry, Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman stressed that structural reforms are a key priority of the government as has been reflected in the slew of measures & policies announced since outbreak of COVID-19. Every policy which was introduced had a structural com...

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Taxability of GST on Interest Income

As per the definition of Goods given u/s 2(52) and definition of services given u/s 2(102) of CGST Act, 2017 money is excluded. As per this if we provide loan to someone then this is not taxable since this is just a transaction in money. But the activities related to use of money is included […]...

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November 2020