"04 November 2020" Archive

Form GST REG-22 Order for revocation of cancellation of GST registration

Order for revocation of cancellation of GST registration in Form GST REG-22 is issued by the proper officer. Order in Form GST REG-22 is issued when the proper officer is satisfied with the revocation application filed by the taxable person. Thus, when an order in Form GST REG-22 is issued, the cancelled GST registration of […]...

Read More

Contradiction between Dates in Form 3CD & dates for submission of Audit Reports

Clauses of Form 3CD which can’t be answered while submitting it by 30th November 2020 The Income Tax Act has been amended by the Finance Act 2020 and further amended by The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020 to provide certain restrictions and/or relaxations in the existing provisions and ...

Read More

Clarification on news of increase in service charges by banks

There have been several media reports alluding to steep increase in service charges by certain Public Sector Banks (PSBs).  In this context, the factual position is as follows:   ...

Read More

Tax on income of certain domestic companies: Section 115BAA with case scenario study

Tax on income of certain domestic companies: Section 115BAA with case scenario study 1) Section 115BAA has been inserted w.e.f. A Y 2020-21 to provide for an optional alternative tax regime for domestic companies. The eligible corporate assessees are given an option to opt for a concessional rate of tax @25.17% ((22%+10%+4%) instead of th...

Read More

Input Tax Credit under Section 16 (2) – Etymology of Double/Triple Jeopardy (??)

Informally, it is called the ‘Double Whammy’ or the ‘Triple Whammy’ – I write this article to put forth an instance of Double/Triple Jeopardy in connection with Input Tax Credit under Section 16(2). The term ‘jeopardy’ is defined as a “hazard, danger or peril.” With respect to criminal jeopardy it connote...

Read More

Income Tax on Dividends- FAQs

FOR RESIDENT SHAREHOLDERS: When valid PAN is available in the records of the Company: Tax deduction rate on Dividend – 7.5%# When valid PAN is not available in the records of the Company: Tax deduction rate on Deividend- 20% #The tax rate has been reduced from 10% to 7.5% with effect from 14 May 2020 […]...

Read More

Thoughts on Current Economic and GST Scenario

Indian economy has started picking up, if GST revenue for October, 2020 is any indication. Finance Minister has also signaled that economy has started growing and India may be among the fastest growing ones by text year. Government has already prioritized spending in infrastructure sector. Revival of demand and consumption; focus on secto...

Read More

Order passed without granting Personal Hearing violates principles of natural justice

Jansons Industries Limited Vs State Tax Officer (Madras High Court)

Jansons Industries Limited Vs State Tax Officer (Madras High Court) High Court of Madras held that orders are contrary to law insofar as they are non-speaking and have been issued in violation of principles of natural justice, despite the specific request of the petitioner for personal hearing. High Court held that The impugned orders as ...

Read More

E-way bill for a consignment of value < 50K for multiple invoices in the same conveyance

Bon Cargos Private Ltd. Vs Union of India (Kerala High Court)

Bon Cargos Private Ltd. Vs Union of India (Kerala High Court) The High Court held that it is the duty of the transporter or the consignor, consignee to generate e-way bill when the aggregate value of the consignment is more than Rs. 50,000/- and if otherwise ie., less than Rs.50,000/- there is no such requirement […]...

Read More

CESTAT set aside demand on Mobilization advance which was not consistent with law

Gammon India Ltd Vs CST (CESTAT Mumbai)

Gammon India Ltd Vs CST (CESTAT Mumbai) The Mumbai CESTAT, in Gammon India Ltd Vs. CST held that demand on Mobilization advance is not consistent with law and deserves to be set aside. Proviso to Section 2(31) of the CGST Act 2017 provides that deposits shall not be considered as payment made unless the supplier applies […]...

Read More

Interest for Delayed Service Tax refund – From the date of application or date of order?

Scribetech India Healthcare Pvt Ltd. Vs Commissioner of Central Tax (CESTAT Bangalore)

Scribetech India Healthcare Pvt Ltd. Vs Commissioner of Central Tax (CESTAT Bangalore) The Bangalore CESTAT ordered for the interest for a delayed refund on the expiry of period of three months from the date of receipt of application, following the decission Supreme Court in the case of Ranbaxy Laboratories Ltd. Section 56 of the CGST [&h...

Read More

No TP addition in respect of international transaction of payment of Regional Service Charges in case value within tolerance range

Goodyear South Asia Tyres Private Limited Vs ACIT (ITAT Pune)

No transfer pricing addition in respect of international transaction of payment of Regional Service Charges pertaining to five intra-group services could be made because even if presume that the comparable uncontrolled transaction was at zero mark-up, still the value of the international transaction was within the notified tolerance range...

Read More

Section 43B not applicable on electricity duty collected on behalf of Government

Paschimanchal Vidhyut Vitran Nigam Ltd. Vs DCIT (ITAT Delhi)

Paschimanchal Vidhyut Vitran Nigam Ltd. Vs DCIT (ITAT Delhi) AO noticed that assessee had made assessment of electricity duty of Rs. 5,52,98,00,000/- of which Rs. 3,44,22,00,000/- was adjusted from the subsidy and the balance amount of Rs.2,08,76,00,000/-was not paid by the assessee before filing the return of income. Assessee was asked t...

Read More

Rent Agreement of LLP

RENT AGREEMENT This Rent agreement is executed at Place, on this XX day of September XXXX between Mr./Mrs./Ms. Name of Landlord R/o Residential Address of landlord hereinafter called “THE LESSOR” AND Name of Designated Partner R/o Residential Address of Designated Partner hereinafter Called “THE LESSEE” The Expression of the Lesso...

Read More

HC allows Appeal under PVAT on deposit of 10% total demand instead of 25%

Kelmar (India) Exports Vs State of Punjab and others (Punjab and Haryana High Court)

Kelmar (India) Exports Vs State of Punjab and others (Punjab and Haryana High Court) Admittedly, the first appeal was filed by the petitioner along with an application for waiving off pre-deposit amount of 25%. The appeal was dismissed by the Deputy Excise and Taxation Commissioner (Admin), Ludhiana Division, Ludhiana on the ground that t...

Read More

No Section 14A disallowance without Recording Proper Satisfaction

Indica Industries Pvt. Ltd. Vs ITO (ITAT Delhi)

The issue under consideration is whether the disallowance made by AO u/s 14A is justified in law? In view of the fact that no proper satisfaction was recorded, in our considered opinion, the Assessing Officer did not acquire any valid jurisdiction for computing disallowance u/s 14A....

Read More

Press Tool- Punches (Quality Control) Order, 2020

Notification No. S.O. 3994(E). (04/11/2020)

Compulsory use of Standard Mark.- Goods or articles specified in the column (1) of the Table shall conform to the corresponding Indian Standard specified in column (2) of the said Table and shall bear the Standard Mark under a license from the Bureau as per Scheme-I of Schedule-II of Bureau of Indian Standards (Conformity Assessment) Regu...

Read More

Patents (2nd Amendment) Rules, 2020

Notification No. G.S.R. 689(E) (04/11/2020)

In case an application processed by a natural person or startup or small entity is fully or partly transferred to a person other than a natural person, startup or small entity, the difference, if any, in the scale of fees between the fees charged from the natural person, startup or small entity and the fees chargeable from the person othe...

Read More

Guidelines for rights issue of units by an unlisted InvIT

Notification No. SEBI/HO/DDHS/DDHS/CIR/P/2020/223 (04/11/2020)

Chapter VIA of the of SEBI (Infrastructure Investment Trusts) Regulations, 2014 (InvIT Regulations) provides the framework for private placement of units by InvITs which are not eligible to be listed. In order to enable unlisted InvITs to raise further funds, it has been decided to provide a mechanism for raising of funds by unlisted InvI...

Read More

Liaison Office & Land Earth Station not Constitute PE in India

Inmarsat Global Ltd. Vs DCIT (International Taxation) (ITAT Mumbai)

The issue under consideration is whether DRP is correct in considering the Liaison Office (LO) and Land Earth Station ('LES') constitutes a permanent establishment (PE) in India?...

Read More

Guidance Note on Accounting for Share-based Payments

Recognising the need for establishing uniform accounting principles and practices for all types of share-based payments for the companies following Accounting Standards under Companies (Accounting Standards) Rules, 2006, as amended under Section 133 of Companies Act, 2013, it is heartening to note that the Research Committee of the Instit...

Read More

Guidance Note on AS 25 & Measurement of Income Tax Expense for Interim Financial Reporting

‘Guidance Note on Applicability of AS 25 to Interim Financial Results’ which was issued in the year 2008 and ‘Guidance Note on Measurement of Income Tax Expense for Interim Financial Reporting in the context of AS 25’ which was issued in the year 2006 to issue as ‘Guidance Note on Applicability of AS 25 and Measurement of Income...

Read More

No section 36(1)(iii) disallowance unless Direct Nexus between Borrowed Funds & Capital Withdrawals

Lypsa Diamonds Vs ITO (ITAT Mumbai)

The issue under consideration is whether disallowance u/s 36(1)(iii) made by AO forming an opinion that interest bearing funds were withdrawn from the firm being capital withdrawn by the partners and interest free advances is justified in law?...

Read More

Consider Transitional Credit claim in Form GST Tran-1 afresh as per SOP: HC

Elements Homestead Products Pvt. Ltd. Vs Union of India (Kerala High Court)

High Court gave direction to the respondent to consider the case of the petitioner for carry forward of accumulated credit through the Form GST- Tran 1 afresh in the light of Standard Operating Procedure...

Read More

NRI expense for business purpose by non-resident bank allowable

Standard Chartered Grindlays Bank Vs ACIT (ITAT Delhi)

Standard Chartered Grindlays Bank Vs ACIT (ITAT Delhi) The assessee is a non-resident banking company which carries on the business of banking and other related activities through its branches in India in accordance with the provisions of Banking Regulation Act, 1949. During the year, Indian Permanent Establishment (in short PE) of the as...

Read More

Section 14A disallowance should be as per Rule 8D Calculation Method

National Aluminium Company Ltd. Vs ACIT (ITAT Cuttack)

National Aluminium Company Ltd. Vs ACIT (ITAT Cuttack) The issue under consideration is whether disallowance u/s 14A without following calculation method mentioned under rule 8D is justified in law?...

Read More

Types of Business Entities in USA & How to choose right one from it

Whenever a person starts to think to open a business entity in the United States, one and the foremost question arises in the mind that which type of business entities is useful for them. Hence to overcome this type of situation there is a brief explanation done below to understand well in brief about different […]...

Read More

No disallowance under Rule 8D(2)(ii) r.w. Section 14A if Investment were out of Interest Free Funds

Milind Pralhad Bhandarkar Vs DCIT (ITAT Pune)

The issue under consideration is whether CIT(A) is correct in confirming the disallowance made by the Assessing Officer u/s.14A read with Rule 8D(2) of the Income Tax Rules, 1962?...

Read More

Draft LLP Agreement

LLP AGREEMENT (As per Section 23(4) of LLP Act, 2008) This Agreement of LLP made at DELHI this 20th Day of September 2019 BETWEEN 1. Name of 1st Partner S/o Father’s Name , R/o Address which expression shall, unless it is repugnant to the subject or context thereof, include their legal heirs, successors, nominees and […]...

Read More

Arbitration and Conciliation (Amendment) Ordinance, 2020

No. 14 of 2020 (04/11/2020)

(1) This Ordinance may be called the Arbitration and Conciliation (Amendment) Ordinance, 2020. (2) Save as otherwise provided in this Ordinance, it shall come into force at once....

Read More

HC allows to pay GST (Inclusive of Interest & Late Fees) in instalments

Malayalam Motors Pvt. Ltd. Vs Assistant State Tax Officer (Kerala High Court)

Malayalam Motors Pvt. Ltd. Vs Assistant State Tax Officer (Kerala High Court) The High court of Kerala permitted the petitioner to discharge the tax liability, inclusive of any interest and late fee thereon, in equal successive monthly installments. Please note Section 80 of the CGST Act, 2017 allows payment of tax due (other than the [&h...

Read More

Time limit not applicable for Service Tax refund to SEZ

Lanco solar Pvt. Limited Vs Commissioner, Central Tax, Central Excise, Customs (CESTAT Delhi)

Lanco solar Pvt. Limited Vs Commissioner, Central Tax, Central Excise, Customs (CESTAT Delhi) Delhi CESTAT  held that the ab initio exemption provided under the SEZ provisions, having overriding effect on the service tax provision. Under such position of law, a notification under service tax cannot restrict or provide a time limit for gr...

Read More

Blocking of the e-credit ledger – Mismatch of GSTR-2A and 3B

Goyal Iron And Steel Traders Vs Assistant Commissioner Palam Division CGST Delhi South & Ors. (Delhi High Court)

Goyal Iron And Steel Traders Vs Assistant Commissioner Palam Division CGST Delhi South & Ors. (Delhi High Court) High Court directed to decide the matter by way of a reasoned order where the electronic credit ledger was blocked citing a mismatch in the Input Tax Credit claimed in GSTR-3B and that appearing in GSTR-2A. High COurt he...

Read More

Extract of Annual Return & Its Weblink : Companies Act, 2013

Section 92 of the Companies Act, 2013 (CA, 2013) obliges every company to prepare an annual return every year and file the same with the Registrar of Companies within 60 days of the date of Annual General Meeting (AGM) in E-form MGT-7 of Companies (Management and Administration) Rules, 2014 (MGT Rules). It was provided by […]...

Read More

Start-up Listing – Opportunity to Organic Growth

Bombay Stock Exchange Limited (BSE) has set up the BSE Start-up Platform according to the rules and regulations of the Securities and Exchange Board of India (SEBI). BSE Start-up Platform offers an entrepreneur, an Investor friendly environment which enables the listing of Small and Medium Enterprises (SMEs) from the unorganised sector sc...

Read More

Provisional attachment of Bank Account valid upto 1 year: Telangana HC

KMC Constructions Ltd. and Anr. vs. Principal Commissioner of Central Tax and 4 Ors. (Telangana High Court)

Telangana High Court directs the bank to allow petitioner to operate bank account provisionally attached by Revenue. Provisional attachment order cannot continue after the expiry of one year. Continuation as such would be violative of Articles 14, 19(1)(g) and 300A of the Constitution of India and would be wholly without jurisdiction....

Read More

Critical analysis & issues in Tax Audit Report & OI Schedule

Critical issues in the tax audit report and the interplay of the form OI with the Tax audit report. Of late many assesses are receiving the intimations from the tax department for the mismatches in the tax audit report and the income tax return filing, however when one looks into the matter it is quote […]...

Read More

Scrutinizer Report under Companies Act, 2013

A scrutinizer is a person who observes any process which requires rigorous oversight, either to prevent the occurrence of corruption or genuine mistakes. It is most commonly known as part of voting in an election, where the scrutineer observes the counting of ballot papers, in order to check that election rules are followed. Under t...

Read More

Reasons Why You Need a POS Solution for Your Business

As a medium and small-sized business owner, you have the option to increase the efficiency, profitability, and achievement of your commercial enterprise. You should make sure that you are capable of achieving this in a way that is stable whilst supplying clients with the comfort they deserve. A good Point of Sale solution works as [&helli...

Read More

GST- Section 83- HC Quashes Provisional Attachment of immovable property

Khushi Sarees Vs State of Gujarat (Gujarat High Court)

Khushi Sarees Vs State of Gujarat (Gujarat High Court) Section 83 talks about the opinion which is necessary to be formed for the purpose of protecting the interest of the government revenue. Any opinion of the authority to be formed is not subject to objective test. The language leaves no room for the relevance of an official examina...

Read More

Provision for Mobile Phone Warranty Cannot be disallowed for mere Technology Improvement

Nokia India Pvt. Ltd. Vs Add. CIT (ITAT Delhi)

The issue under consideration is whether the CIT(A) is correct in disallowing the provision for warranty of mobile phone merely on the basis of improvement in technology is justified in law?...

Read More

Construction Companies and Its various types

Construction Contractors are those Sole Proprietors, Partnership Firms, HUF’s, and Companies who build, construct what is designed by Architects or Civil Engineers on Paper. Construction Companies can mainly differentiate based on the type of work they perform and type of specialization they acquire. There are different tasks such as de...

Read More

Assessment Order u/s 143(3) Passed in Clear Breach of Mandatory Section 144C is Void ab Initio

Gigabyte Technology (India) Private Ltd. Vs CIT (Bombay High Court)

The issue under consideration is whether the assessment order u/s 143(3) made by the AO in clear breach of the mandatory provisions of Section 144C is merely erroneous or is void ab initio?...

Read More

In absence of agreement SDV on First Digital Payment date can be adopted for Section 50C & 56(2)(x)

Radha Kishan Kungwani Vs ITO (ITAT Jaipur)

The issue under consideration is whether the stamp duty valuation at the time of first digital payment can be adopted if the agreement to sale is lost or inaccessible for any reason whatsoever?...

Read More

Eligibility of ITC under RCM Even after expiry of Time Limit

Eligibility of Input Tax Credit (ITC) under RCM on supply received from unregistered persons Even after Expiry of Time Limit Specified in Section 16(4):- There is a lot of confusion around sec 16(4) and there are many taxpayers who are suffering from lapses of ITC due provision of Sec 16(4) especially in the case of […]...

Read More

Search Posts by Date

November 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30