The draft circular addresses issues in managing unpaid client securities and proposes changes to the existing pledge framework. It introduces timelines, flexibility, and clarity while maintaining investor protection safeguards.
The Tribunal held that the AO exceeded the scope of limited scrutiny by invoking Section 68 without prior approval. The assessment was quashed as legally unsustainable, and the addition was deleted.
The updated framework doubles turnover limits and expands eligibility to cooperatives. At the same time, it introduces strict rules on fund usage and governance. The key takeaway is that benefits now come with higher accountability and compliance expectations.
Explains why liquidated damages are generally not subject to GST unless linked to a supply. Highlights the importance of distinguishing compensation from consideration.
