Articles

Light!! Camera!! Action!! – Bad Debts Dichotomy

Happy to present before all of you, my article on Light!! Camera!! Action!! – Bad Debts Dichotomy correlated with Article 14 of Constitution of India to decipher the Principle of Equality before law and Equal protection to all within the territory of India. Suggestion to improve upon the article are welcomed with folded hands....

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Posted Under: Income Tax |

Importing Audio-Visual licenses from Japan: Understanding GATS & CEPA

This article attempts to clearly lay out the implications of the Comprehensive Economic Partnership Agreement (CEPA) for parties interested in bringing Japanese Animation titles to Indian markets. CEPA is a Free Trade Agreement (FTA) entered between India-Japan, which came into effect in August 2011....

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Posted Under: Income Tax |

Section 206CC – Mandatory Requirement of Furnishing PAN

Disallowance of Tax Deducted at Source 1. What is Section 40(a)(i)? Section 40(a)(i)- Non compliance of Provisions of TDS where payment is made to Non Resident Notwithstanding anything to the contrary in sections 30 to 38, the following amounts shall not be deducted in computing the income chargeable under the head “Profits and gain...

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Posted Under: Income Tax |

Section 206C Tax Collection at Source under Income Tax Act, 1961

a) Applicability and Rate [Section 206C(1)/(1C)/(1F)] Section 206 C(1) Sr. No. Nature of goods Rate of TCS (upto 13.05.2020) Rate of TCS (w.e.f 14.05.2020 to 31.03.2021) i. Alcoholic   Liquor for human consumption 1%   1% *(no change)  ii. Tendu Leaves 5% 3.75%  iii. Timber           obtained under a forest lease 2.5% &...

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Posted Under: Income Tax |

Section 206AA Mandatory Requirement of Furnishing PAN-TDS

1) What is Section 206AA? Section 206AA has been inserted to provide that any person whose receipts are subject to deduction of tax at source i.e. the deductee, shall mandatorily furnish his PAN to the deductor failing which the deductor shall deduct tax at source at higher of the following rates a. applicable rate of […]...

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Posted Under: Income Tax |

15 Important Points of GST in Income Tax Audit to be Taken Care off!

After the relief of Corona now tax audit season is approaching. 31st December 2020 is the due date of the audit of Income-tax audit for AY 2020-21. Further assesses  who are not under audit also need to file their Income tax returns before 31st Dec to avoid late fees.  Also, 31st December 2020 is the due date for filing of GST Audit and...

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Posted Under: Income Tax |

Implications of Unauthorised Collection of Tax & Non Payment of Tax Collected under Section 32 & 76 of CGST Act

Implications of Unauthorised Collection of Tax & Non Payment of Tax Collected under Section 32 & 76 of CGST Act Section 32 of CGST ACT prohibit to persons to collect unauthorised  collection of tax . Section 76 mandates  that every persons  should pay  any amount collected  by person as tax to the the Government forthwith [&h...

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Posted Under: Income Tax |

TDS on Purchase of Property from NRI

When there is a purchase of immovable property, the buyer needs to deduct tax (TDS) from the Sale value, pay the balance amount to the Seller and pay the TDS amount to the Government. As per Indian Income Tax Act, where a resident purchases any property from a Non Resident, he has to deduct tax […]...

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Posted Under: Income Tax |

Memorandum of Association (MOA) under Companies Act, 2013

The memorandum of association of a company is an important corporate document in India. It is often simply referred to as the memorandum. In the India, it has to be filed with the Registrar of Companies during the process of incorporating a company. It is the document that regulates the company’s external affairs, and comple...

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Posted Under: Income Tax |

Section 201 – Consequences of Non-Compliance to TDS

A. Provisions applicable to person deemed to be an “assessee in default” Levy of interest:- As per section 201 of the Income-tax Act, if a deductor fails to deduct tax at source or after the deducting the same fails to deposit it to the Government’s account then he shall be deemed to be an assessee-in-default […]...

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Posted Under: Income Tax |

FAQs on Indian Stamp Act, 1899 Amendments & Rules

Frequently Asked Questions (FAQs) on Indian Stamp Act, 1899 Amendments and Rules made thereunder Q.1 Why amendments in the Indian Stamp Act, 1899 have been made? Answer: The amendments have been carried out with respect to securities market transactions. The present system of collection of stamp duty on securities market transactions has ...

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Posted Under: Income Tax |

Impact of GST on Advances/Security Deposits/Retention Money etc.

Goods and Services Tax Act, 2017 (GST) has brought concept of “One Nation, One Tax”, and has simplified method of collecting and calculating Indirect taxes all over India. There is no cascading affects and ambiguities, while dealing with provisions of GST Act, 2017. We know that for Sale Goods or Supply of Services, the most […...

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Posted Under: Income Tax |

Can buyer claim ITC if supplier has not paid his tax under GST?

Can buyer claim ITC if supplier has not paid his tax ??? ⇓ As per Section 16(2)(c) of CGST Act, the recipient of goods and services can avail ITC only if supplier has deposited the tax with government either in cash or through utilisation of input tax credit. ⇓  After reading this section we can […]...

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Posted Under: Income Tax |

Summons, Inspections, Search, Seizure & Arrest provisions under GST

GST video series by CA Bimal Jain on ‘Summons, Inspections, Search, Seizure, and Arrest provisions’ under the GST law and its various nuances – 1. What is Summon and Who can issue and to whom under GST https://youtu.be/H34ABSUsd9o 2. Inspection, Search, and Seizure by GST Officials – When and How to Handle https://...

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Posted Under: Income Tax |

Incomes which are exempted under Section 11 of Income Tax Act,1961

Incomes which are exempted under Section 11 of the Income Tax Act,1961 Similar to Section 10, incomes mentioned in Section 11 also does not form part of the total income. There are various conditions to be fulfilled for claiming exemption under this Section. However in this article, an attempt is made to understand basically what [&hellip...

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Posted Under: Income Tax |

GST: Quarterly Return & Monthly Payment – QRMP effective from 1-1-2021

The topic itself is self-explanatory, a recent development when GST Council met in its 42nd meeting held on 05.10.2020 and decided to allow up to 5 crore turnover suppliers proceed with 'QRMP'. Why I came to understand that I should write on this topic - naturally peculiarity of this scheme and some extent it’s complex terminology which...

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Posted Under: Income Tax |

Incorporation / Steps / Procedure / Formation of Company via Spice+Part B

Incorporation / Steps / Procedure / Formation of Company via Spice+Part B as per Companies Act 2013 Name Application / Reservation for Company via SPICe+ Part A (Complete steps / procedure for Name Application, refer below Article Link) Link: https://taxguru.in/company-law/name-application-reservation-company-via-spicepart-a.html After Ap...

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Posted Under: Income Tax |

Whether GST Liability can be paid in Monthly Installments?

Petitioner is a private limited company and registered under GST Act, 2017 as a service provider and has admitted Tax arrears for Nov’2018 to March’19 of Rs. 4,00,000/- which it intendeds to pay in monthly installment along with the applicable interest and late fees. As the business of the petitioner has been severely affected by the ...

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Posted Under: Income Tax |

93% of Registered Persons in GST: Be alert of crucial date of 30.11.2020

93% of Registered Persons in GST: Be Alert of the Crucial Date of 30th November, 2020. In India, at present about 93% of the total Registered Persons under GST are having their annual turnover of up to Rs. 5 crores, and the tomorrow’s date of 30.11.2020 is very significant and crucial for all such registered […]...

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Posted Under: Income Tax |

Rotation of Directors-Section 152(6) – Companies Act, 2013

Applicability: Public companies( not applicable to Government companies and its subsidiaries) if the articles of association provided for retirement of all directors in the annual general meeting, then all the directors are liable to directors. According to sec 152(6) of the companies act,2013 2/3 of the total directors(*) are liable to r...

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Posted Under: Income Tax |

Best judgment assessment U/s. 62 not a substitute for recovery of GST

Section 62 of the Act is resorted only in the cases where return is not filed and assessment cannot be done without relying upon prudence of the assessing officer. Once the facts and figures of the liability is before the assessing officer then any assessment based upon his prudence will not only belie the express statutory provisions but...

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Posted Under: Income Tax | ,

Section 203 TDS Certificate

Issue of TDS Certificate Every person deducting tax at source is required as per Section 203 to furnish a certificate to the payee to the effect that tax has been deducted along with certain other particulars.This certificate is usually called the TDS certificate. Even the banks deducting tax at the time of payment of pension […]...

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Posted Under: Income Tax |

Section 200(3) Forms & Time Limit for Submitting Quarterly TDS Returns

Section 200(3) Forms & Time Limit For Submitting Quarterly Statement of Tax Deduction (TDS Returns) Forms for quarterly statement of tax deduction Any person deducting any sum in accordance with the foregoing provisions of this Chapter shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or...

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Posted Under: Income Tax |

Section 206C(1H) TCS on sale of goods W.E.F. 01-10-2020

Explanation of TCS u/s 206C(1H) of Income Tax Act on sale of goods with effect from 01-10-2020 The Government of India in the Finance Bill, 2020 introduced a new sub section (1H) to section 206C of the Income Tax Act, 1961 (IT Act) widening the scope of tax collection at source. Provision of the Income […]...

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Posted Under: Income Tax |

Applicability of TDS under GST: Section 51 of CGST Act, 2017

Section 51 r.w. Rule 66: Tax Deductible at Source (TDS) refers to certain percentage that is deducted by the receiver of Goods/services on the amount payable on account of Supply made if Transaction Value as per Section 15 of CGST act 2017 exceeds 2.5 Lakhs. ...

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Posted Under: Income Tax |

Summary of Fresh Start Process (Individual & Partnership Firm) under IBC 2016

Summary of Fresh Start Process (Individual and Partnership Firm) under the Insolvency and bankruptcy code 2016 (IBC, 2016) THE INSOLVENCY AND BANKRUPTCY CODE, 2016 Part III (Chapter II) Fresh Start Process 1.) Who may File Application for Fresh Start in I&B Code 2016? (Section 80) Any Debtor who fulfil following eligibility criteria m...

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Posted Under: Income Tax |

Compliance With Amended FCRA 2010 And FCRR 2011- Advisory

Advisory for Compliance by FCRA NGOs/Associations with the Amended Provisions in FCRA, 2010 and FCRR, 2011 Note: – This advisory is meant for any association that belongs to one of the following categories: (a) Those who have submitted application for registration/Prior Permission (b) Those who have submitted application for Renewal...

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Posted Under: Income Tax |

RBI: Governor’s recent speech – from foreign exchange/government bonds angle

Shri Shaktikanta Das, Governor, Reserve Bank of India, gave a lecture on ‘Accelerating Financial Market Reform in India’ at the 4th Annual Day of Foreign Exchange Dealers’ Association of India (FEDAI) on November 26, 2020, at Mumbai. Though the title involves an overhaul of total financial reforms in recent times in India, I...

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Posted Under: Income Tax |

No more fake certifications as tax department will validate UDIN

The income tax department has taken a good initiative to curb the fake certifications by non-CAs. Earlier they were misrepresenting themselves as CAs but now it is not possible as ICAI has made mandatory the generation of UDIN which is a Unique Document Identification Number if you are issuing tax audit reports or any kind […]...

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Posted Under: Income Tax |

Section 199 Credit For Tax Deducted at Source (TDS)

In pursuance of rules framed under section 199 of the Income Tax act, credit for tax deducted at source shall be given to the deductee for the assessment year for which such income is assessable. -Where tax has been deducted at source and paid to the Central Government, and the income is assessable over a […]...

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Posted Under: Income Tax |

Unblocking of E-Way Bill Generation Facility

In terms of Rule 138E (a) and (b) of the CGST Rules, 2017, the E-Way Bill (EWB) generation facility of a taxpayer is to be blocked, in case the taxpayer fails to file their returns in Form GSTR-3B or Statement in Form CMP-08, for two or more consecutive tax periods. For unblocking of this facility, […]...

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Posted Under: Income Tax |

Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC

Summary of Orders related to IBC 2016 passed by IBBI, NCLT, NCLAT, HC & SC during July to September 2020 Orders by Supreme Court M/s Marathe Hospitality Vs. Mahesh Surekha & Ors. [SLP (C) No. 8139/2020] The petitioner filed an appeal before the NCLAT. However, the NCLAT closed its functioning as one of its employees […]...

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Posted Under: Income Tax |

Intertwining of GST Refunds with Benefits under Advance Authorization

1. Recently a spate of notices have been issued by the DRI to the exporters who have availed the scheme of Advance Authorization under the FTP asking the exporters to pay the IGST on the imports made on or after 23.10.2017 in cases where the refund of the accumulated input tax credits (‘ITC’) have been […]...

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Posted Under: Income Tax | ,

Section 197A – No TDS Deduction – Form 15G & Form 15H

1. What is Form 15G and Form 15H? Form 15G and Form 15H are forms you can submit to prevent TDS deduction on your income, if you meet the conditions mentioned below. For this, PAN is compulsory. Some banks allow you to submit these forms online through the bank‘s website. Form 15H is for senior […]...

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Posted Under: Income Tax |

Section 197 Certificate For TDS Deduction at Lower Rate

1) What is Section 197? Section 197 of the Income Tax Act, 1961 allows the taxpayer the facility of NIL or Lower tax rate deduction of TDS (or TDS exemption). In order to apply for this you need to submit Form 13 to the assessing officer. Also, this section strikes a delicate balance between the […]...

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Posted Under: Income Tax |

CIVIL Contracts under Dakshin Haryana Bijli Vitran Nigam (DHBVN)

Civil Contractors needs prior registration under various government departments to grab contract under such department. One of such department is DHBVN (Dakshin Haryana Bijli Vitran Nigam. DHBVN is a state-owned power distribution utility company owned by the Government of Haryana having its headquarters in Hisar, Haryana. DHBVN has two o...

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Posted Under: Income Tax |

Section 196D TDS on Income of foreign institutional investors from securities

1) Who is responsible to deduct tax u/s 196D? Any person responsible for making payment to Foreign Institutional Investors 2) Nature of Payment Income in respect of securities referred to in section 115AD (not being interest referred to in section 194LD) 3) When to Deduct TDS under Section 196D? At the time of credit of […]...

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Posted Under: Income Tax |

Changes in Company Information under Companies Act, 2013- FAQs

Q.1 What is the process of intimating Ministry of Corporate Affairs about any change in Managing Director, Directors, Manager, CEO, CFO or Secretary of a company? A company can intimate changes among Managing Director, Directors, Manager and Secretary of a company by filing eForm DIR-12 with Registrar of Companies (ROC) within 30 days (Ev...

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Posted Under: Income Tax |

FAQs on Stamp Duty on Form INC-2/ INC-7/ INC-29, MoA, AoA, & SH-7

Q.1 Please specify the services for which Stamp Duty can be paid through MCA21 system? Ans. Stamp Duty applicable on filing of e-form SPICe (including MOA & AOA), SH-7 and FC-1 shall be electronically paid through MCA21 system. A person applying for certified true copy is also required to pay stamp duty through MCA21 portal. Q.2 [&he...

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Posted Under: Income Tax |

FAQs on Company Incorporation & Allied Matters

Q.1 What is e Form SPICe+? SPICe+ is a part of various initiatives undertaken by the Government of India towards Ease of Doing Business (EODB). SPICe+ form is an integrated web form and an advanced version of the previous SPICe form (i.e. e-form INC-32). SPICe+ web form offers 11 services by 3 Central Government Ministries […]...

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Posted Under: Income Tax |

Section 196B TDS on long term capital gains from units referred to in section 115AB

1) Who is responsible to deduct tax u/s 196B? Any person responsible for making payment to Offshore Fund. 2) Nature of Payment a) Income from units referred to in section 115AB b) Long-term capital gain arising from transfer of such units 3) When to Deduct TDS under Section 196B? At the time of credit of […]...

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Posted Under: Income Tax |

Stamp duty rates for Form INC-2/ INC-7/ INC-29, MoA, AoA, and SH-7

State wise stamp duty rules for eForm INC-2/ INC-7/ INC-29, Memorandum of Association (MoA), Articles of Association (AoA), eForm SH-7 and eForm FC-1) Also Read- FAQs on Stamp Duty on Form INC-2/ INC-7/ INC-29, MoA, AoA, & SH-7 Stamp duty rules for Form INC-2/ INC-7/ INC-29, MoA, AoA, and SH-7 Name of state/ union territory […]...

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Posted Under: Income Tax |

Blocking and Unblocking of EWB generation facility in EWB Portal

Blocking of e-waybill generation facility means disabling taxpayer from generating E Way Bill, in case of non-filing of 2 or more consecutive GSTR 3B Return on GST Portal, by such taxpayer (refer Rule 138E of CGST/SGST Rules, 2017). The GSTINs of such blocked taxpayers cannot be used to generate the e-way bills either as Consignor or Cons...

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Posted Under: Income Tax |

Faceless Assessment: Concerns & Recommendations for Seamless Digital Integration

On 13th of August, 2020, Hon’ble Prime Minister Shri. Narendra Modi rolled out the scheme of faceless assessment, faceless appeal and tax-payer charter. The scheme for ‘e-assessment’ was already notified in 2019, which has now been modified by amending the original scheme and renamed as ‘faceless assessment’....

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Posted Under: Income Tax |

IGST Refunds – Genuine Exporters-Rule of Law Missing?

Though GST department claims only a miniscule percentage of exporters have been selected for risky exporter verification, it appears many exporters even with a good reputation over couple of decades in exporting the goods have been also selected for this verification!!...

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Posted Under: Income Tax |

Mandatory Income Tax Return under Seventh Proviso to Section 139(1) of Income Tax Act, 1961

A new column is appearing in Part A-General Information which is “Are you ling return of income under Seventh proviso to section 139(1) but otherwise not required to furnish return of income?” for filing an Income tax return (‘ITR’) for Assessment Year 2020-21 (Financial Year 2019-20). Please note that Finance (No. 2) Act, 2019 ha...

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Posted Under: Income Tax |

Section 194H TDS on Commission and Brokerage with Case Laws

Section 194H is for income tax deducted on any income by way of commission or brokerage, by any person responsible for paying to a resident. (Section 194H does not include insurance commission referred to in section 194D.) Individuals/HUFs who were covered under section 44AB(a) and (b) in the preceding previous year i.e. whose gross turno...

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Posted Under: Income Tax |

Section 195A Income Payable “Net of Tax”

1) Who is responsible to deduct tax u/s 196B? Any person responsible for making payment to Offshore Fund. 2) Nature of Payment a) Income from units referred to in section 115AB b) Long-term capital gain arising from transfer of such units 3) When to Deduct TDS under Section 196B? At the time of credit of […]...

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Posted Under: Income Tax |

Section 195 TDS on Non-Resident Payments

1) Who is responsible to deduct tax u/s 195? Any person responsible for paying to a non-resident, not being a company, or to a foreign company, shall deduct income-tax thereon at the rates in force. 2) Nature of Payment a) Any interest (not being interest referred to in section 194LB, 194LC and 194LD) b) Any […]...

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Posted Under: Income Tax |

Section 194N TDS on cash withdrawal from banks/post offices

1. Who is responsible to deduct tax u/s 194N? Every person, being,— (i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) a co-operative society engaged in carrying on the business of banking; or (iii) […]...

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Posted Under: Income Tax |

Section 194M TDS on payments of certain Sums by Individual & HUF

Section 194LA a. This section is effective from 1-10-2004 which provides as follows; Any person responsible for paying any sum to a resident is required to deduct tax at source; b. The payment must be in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory [&he...

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Posted Under: Income Tax |

Section 194LBC TDS on Income in Respect of Investment in Securitization Trust

1) Who is responsible to deduct tax u/s 194LBC? Any person who gives income to an investor with respect to investment in securitization trust is required to deduct tax under this section. 2) When to Deduct TDS under Section 194LBC? The time of deduction is earlier of, the credit of income to the account of […]...

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Posted Under: Income Tax |

How to Close a Private Company in India

Since 2015, Indian Govt. has started various measures for ease of doing business by various means like Exemptions to Private Companies, Companies Amendment Act, 2017, 2019, Zero fees of incorporation for new companies having capital upto Rs. 15 Lacs etc. At the same time, it has also taken stringent actions against non-compliant companies...

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Posted Under: Income Tax |

Which is the Best Time to Invest in Mutual Funds?

Investors often wonder when to invest in mutual funds. Little do they know that there is no right or ideal time when it comes to investing in mutual funds. Although, an investor should try to invest in mutual funds at the earliest. An investor can choose to invest any day they like. Before choosing a […]...

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Posted Under: Income Tax |

Merger between two Private Limited Companies

Merger and amalgamation are restructuring tool which helps companies in expansion and diversification of their business and to achieve their underlying objectives. Merger means an arrangement whereby one or more existing companies merge their identity into another to form a new entity which may or may not be one of those existing entities...

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Posted Under: Income Tax |

Basics of Real Estate Regulatory Authority (RERA), Act, 2016

Today I’m going to discuss about the  ‘Real Estate Regulatory Authority (RERA) Act, 2016’. The Real Estate industry plays a key role in fulfilling the requirements of the Country’s housing and infrastructures. So, there is a necessity to know the basics of the REAL ESTATE REGULATORY AUTHORITY (RERA) Act as a Tax Professio...

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Posted Under: Income Tax |

Amendment under Section 194N with effect from 1st July, 2020  

Section 194N is pertaining to Tax Deducted At Source for withdrawal Cash by any person from, a banking company to which Banking Regulation Act 1949 applies, a cooperative society engaged in carrying on the business of banking; or a post office who is responsible for any sum, being the amount or the aggregate of amounts, […]...

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Posted Under: Income Tax |

Major Recent Updates in GST

It is expected by various agencies that GDP may fall in majority of major economies amid covid crisis. In Q2 of 2020-21, India may be one of the slowest growing economies. In Q1, India’s growth has fallen the steepest among G-20 nations. Although markets have responded positively to the vaccine news, rising cases of Covid […]...

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Posted Under: Income Tax | ,

All about Defamation

We are living in a democratic and republic state. Here our constitution has given us some fundamental rights, which cannot be taken by the government. We are free to live with grace and dignity. The right of reputation is recognised as personal right of every human being and should be protected same as protection of fundamental rights....

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Posted Under: Income Tax |

Moneyfy – Time to Get Your Money in Action

While we are raised to abide by the principle that investment is good, we are not always pointed in the right direction in terms of tools of investments. This is why picking the right tool becomes particularly tricky for first-time investors considering the many financial options there are in the market. Hence, Tata Capital launched [&hel...

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Posted Under: Income Tax |

Section 194LBB TDS on Income in Respect of Units of Investment Fund

1) Who is responsible to deduct tax u/s 194LBB? Any person who gives an income (as referred u/s 115UB) to a unit holder in respect of units held in an investment trust has to deduct tax under this section. 2) When to Deduct TDS under Section 194LBB? The time of deduction is earlier of, the […]...

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Posted Under: Income Tax |

Section 194LBA TDS on Certain Income from Units of a Business Trust

1) Who is responsible to deduct tax u/s 194LBA? Any person who makes payment of income [as per section 115UA] which is payable by a business trust to its unit holder is required to deduct tax at source. Such unit holder can be a resident, non-resident (but not a company). 2) When to Deduct TDS […]...

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Posted Under: Income Tax |

GST on Non-refundable Registration Fee (NRF)

This article intents to discuss the applicability of GST on Non-refundable Registration Fee (NRF) collected by the organiser at the time of e-auction What is E-auction? E-auctions means that requirement for procurement of goods or services will be done online. All the process related to tendering (application, payment of fees, submission ...

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Posted Under: Income Tax |

Section 194LB TDS on Income by way of Interest from Infrastructure Debt Fund 

1) Who is responsible to deduct tax u/s 194LB? Any person who makes payment of interest [which is payable by an infrastructure debt fund, as per section 10(47)] to non-resident (not a company/ foreign company) is required to deduct tax at source. 2) When to Deduct TDS under Section 194LB? It will be deducted at […]...

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Posted Under: Income Tax |

Directors and Officers liability in India

In the wake of recent corporate scams and initiation of legal proceedings against several company directors including independent director, it becomes very important for the directors to understand their duties and liabilities as a directors in Indian corporate regulatory environment. It is very important to understand that, a person is a...

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Posted Under: Income Tax |

Corporate Social Responsibility & Selection of Orgnisation For Partnership

We Indians have charity inherited in our heart, we have grown by seeing that our fathers’ and forefathers are donating in various temples, mosques, gurudwaras and churches.  We are donating or doing philanthropic works without knowing that, who is the true beneficiary of our donation or charity. The fact if also highlighted in Bain...

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Posted Under: Income Tax |

Companies Auditor’s Report Order (CARO) 2020

Introduction:- The Ministry of Corporate Affairs (MCA) has announced a new format for statutory Audits of Companies. MCA notified the Companies Order (Audit Report) 2020 on February 25, 2020 (CARO 2020). The order (CARO 2020) replaces the previous order under the Companies Order (Auditor’s Report), 2016. Under the Companies Act 2013...

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Posted Under: Income Tax |

Brief Executive Summary of SEBI (ILDS) Regulations, 2008

A business may require funds from time to time to expand and/or diversify its operations. It may resort to a variety of financial resources, initially broken into two broad categories, debt and equity. 'Debt' involves borrowing money to be repaid, plus interest, while "equity" involves raising money by selling interests in the company....

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Posted Under: Income Tax |

How is Input Tax Credit (ITC) utilized??

Input Tax Credit (hereinafter referred as ITC) is credit available to a person registered under GST on payment of Input Tax. This amount is available in his Electronic Credit Ledger which he can adjust against his output tax liability. Please note that in this article we are not concerned about Electronic Cash Ledger In this […]...

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Posted Under: Income Tax |

IBBI Guideline on Use of Caveats, Limitations, & Disclaimers in Valuation Reports

Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020 The Insolvency and Bankruptcy Board of India has notified guidelines regarding the use of Caveats, Limitations, and Disclaimers in Valuation Reports issued by Registered Valuers (RV).  These guidelines shall come ...

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Posted Under: Income Tax |

Section 194LA TDS on Payments of Compensation on Acquisition of certain Immovable Property

Section 194LA This section is effective from 1-10-2004 which provides as follows; a. Any person responsible for paying any sum to a resident is required to deduct tax at source; b. The payment must be in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory [&he...

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Posted Under: Income Tax |

Section 194J TDS on Professional or Technical Fees

1) Who is responsible to deduct tax u/s 194J? Any person, not being an individual or a HUF, who is responsible for paying to a resident any sum by way of:- 1. Fees for professional Services Professions are notified under section 44AA Accountancy Architectural Authorised Representative Company Secretary Engineering Film Artists/Actors, Cam...

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Posted Under: Income Tax |

Nidhi Company Compliance

“Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such [&...

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Posted Under: Income Tax |

Detailed Analysis of Section 194-IB

Section 194-IB is all about TDS applicability on rent income in the hand of Individual and HUF. Many people got confused between Section 194-I and Section 194-IB. Also many people are unaware about compliance part of this hence today I am writing this all inclusive article on Section 194-IB which will include everything from basic section...

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Posted Under: Income Tax |

SEZ unit/developers ineligible to claim refund of ITC involved in supplies received from non-SEZ suppliers

The Hon’ble Appellate Authority, GST, Andhra Pradesh, in Re: Vaachi International Pvt. Ltd.  [Order No. 4990 of 2020 dated February 10, 2020] held that the SEZ unit/developers shall not claim any refund against input tax credit (ITC) involved in supplies received by them from non-SEZ suppliers and GST Law facilitates eligibility for re...

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Posted Under: Income Tax |

Section 194IC TDS on Payment Made Under Specified Agreement

1) Who is responsible to deduct tax u/s 194IC? Any person responsible for paying to a resident any sum by way of consideration under the specified agreement under section 45(5A) i.e. under the Joint Development Agreement, shall deduct tax at source. 2) What is meant by the Joint Development Agreement? Joint Development Agreement is an [&h...

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Posted Under: Income Tax |

Section 194IB TDS on Rent of Property

1) Who is responsible to deduct tax u/s 194IB? Any person, being an individual or a Hindu undivided family (not covered under section 194I), responsible for paying to a resident any income by way of rent exceeding ₹ 50,000 for a month or part of a month during the previous year, shall deduct income-tax thereon […]...

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Posted Under: Income Tax |

Section 194IA TDS on Purchase of Immovable Property

Preamble and Rational behind inserting Section 194-IA: Under section 195, on transfer of immovable property by a non-resident, tax is required to be deducted at source by the transferee. However, prior to 01-06-2013 there being no such requirement on transfer of immovable property by a resident except in the case of compulsory acquisition...

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Section 194F TDS on Payments on account of repurchase of units by Mutual Fund or Unit Trust of India

1) Who is responsible to deduct tax u/s 194F? The person responsible for paying to any person any amount referred to in section 80CCB. 2) When to Deduct TDS under Section 194F? Tax is deductible at the time of payment.  3) Rate of TDS under Section 194F The rate of tax deduction u/s 194F is […]...

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Section 194E TDS on Payments to Non-Resident Sportsmen or Sports Association

1) Who is responsible to deduct tax u/s 194E? Any person responsible for making following payment shall deduct tax at source:- Payee Nature of income (a) Non – resident foreign citizen sportsman (including an athlete) Income is by way of- a. participation in India in any game (other than card game or gambling, etc.); or […]...

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Section 194DA TDS on Payment in respect of Life Insurance Policy

1) Who is responsible to deduct tax u/s 194DA? Any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under section 10(10D), shall deduct income-tax thereon.  2) When to […]...

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Detailed Analysis of TDS under Section 194-IA

Section 194-IA is very familiar but tricky section to implement in real life. Though it is effected from year 2013, so many people are still unaware about many different things related to 194-IA and hence today I am writing this all inclusive article on Section 194-IA which will include everything from basic section, its compliance, [&hel...

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Incorporation of Non Profit Company: Formation of Companies with Charitable Objects

INTRODUCTION To provide an option to the person or association of person with a legal entity to carry charitable objects the government of India came-up with the section 25 in the Companies Act, 1956 and subsequently replaced by the Section 8 of the Companies Act, 2013. Section 8 discusses the incorporation of the company with […]...

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Section 194BB – TDS on Winning from Horse Races

1) Who is responsible to deduct tax u/s 194BB? Any person, who is responsible for paying to any person any income by way of winnings from any horse race an amount exceeding ₹10,000 (₹5,000 upto 31.5.2016) shall deduct income-tax at the rates in force. Any person here means a book maker or a person to […]...

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Reversal of ITC after legal availment under GST

In the forth coming article we will discuss the issue that the right to avail the input tax credit is to be seen as on the date of the credit availment and not otherwise .The main intent of the this article is that whether ITC can be called upon to pay back by revenue officers […]...

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Section 194 – TDS on payment of dividend

1) Who is responsible to deduct tax u/s 194? The principal officer of an Indian company or a company which has made the prescribed arrangements for the declaration and payment of any dividend (including dividends on preference shares) to a shareholder, who is resident in India, is required to deduct tax at source.  2) What […]...

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Explanations of Recent GST Notification No. 81 to 88/2020-Central Tax

New Notifications in GST (Notification No. 81/2020 to Notification No. 88/2020-Central Taxes) TABLE OF CONTENTS: Notification No. Content 81/2020 Regarding Amendment in Sec. 39 82/2020 Regarding New Rules 83/2020 Due Dates of GSTR -1 84/2020 Options for GSTR – 1 85/2020 Procedure for GSTR – 3B 86/2020 Regarding an earlier notifica...

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Section 194A TDS on Interest (other than Interest on Securities)

1) Who is responsible for tax deduction (payer)? The person (other than an individual or a Hindu Undivided Family) who is responsible for paying to a resident any income by way of interests other than ‘interest on securities’ is required to deduct tax thereon at the rates in force. An individual or a HUF is […]...

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FAQ on refund of Excess /Incorrect ROC Fees paid

The user is required to make various payments to avail MCA21 services. A number of instances have been observed where the users make multiple payments or incorrect payment or excess payment while using these services. In order to allow the stakeholders to claim refund of such payments, refund process has been introduced by MCA. To claim r...

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How to Start a New Business in India– Necessary Steps to Take Care

In the current era of competitive market, every person wants to start its own business but due to inadequate knowledge and experience their business fails in starting 1-2 years. Either they fail due to cash crunch situation, wrong marketing strategies or due to non-compliance of law. During our day to day practice many youngsters contact ...

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Posted Under: Income Tax |

Section 194B TDS on winnings from Lottery, Game Shows, and Puzzle etc

1) Who is responsible to deduct tax u/s 194B? The person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle, card game and other game of any sort in an amount exceeding ₹ 10,000 shall, deduct income-tax thereon at the rates in force. Therefore, no tax […]...

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Benefits of Startup Registration

All you need to know about benefits of Startup Registration A startup is a new business setup that is small in nature and initiated by a single or a group of individuals. It makes the startup different from other businesses. A startup presents a new product or service that is not available at some other […]...

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Section 192A – TDS on Payment of Accumulated Balance Due to an Employee

1) Who is responsible to deduct tax u/s 192A? Tax is to be deducted by the trustees of Employees’ Provident Fund Scheme, 1952 or any other person authorized under the scheme to make payment of accumulated sum to employees. 2) When to Deduct TDS under Section 192A? Tax is deductible at the time of payment. […]...

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How NBFCs Can Venture into Insurance Business

Non-Banking Financial Companies (NBFCs) have been trying to enter the markets of insurance business for a long time. In 2000, the Central Bank of Indian Government, i.e. RBI gave a green light to them and the NBFCs since then are operating in the Insurance sector....

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Process of Conversion from LLP to Company under Companies Act, 2013

Many start up entity in India commenced their business as a Limited Liability Partnership (LLP) and they might be interested to switch the mode of their entity from LLP into Private Limited Company to diversify the business or for infusing more funds and for many several reasons. The Companies Act, 2013, has given the provision […]...

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Trademark Registration Compulsory For E-Commerce Companies

A unique symbol or word(s) used to signify a business or its products is known as Trademark. Once registered, that same symbol or series of words cannot be used by any other organization, continually, as long as it remains in use and proper paperwork and fees are paid. Consider of the apple shape with the […]...

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Income Tax Search and Seizure Assessments- No universal application of “extrapolation technique” in Search Assessments

During the course of a Search and Seizure action, it is seen in practice that incriminating material in the form of documents, diaries and other evidences are found which sometime reflects undisclosed income of an assessee only for a particular limited period of time and not for all the assessment years to be covered u/s 153A of the Incom...

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Section 194C – TDS on Payment to Contractor

 1) Who is responsible to deduct tax u/s 194C? Any person, other than an Individual or HUF, responsible for making payment to a resident contractor or sub-contractor for carrying out any work (including supply of labour) is liable to deduct tax at source under Section 194C. However, an Individual or HUF, AOP/BOI is liable to […]...

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Cash Transaction Restrictions on Charitable Trusts under Income Tax

A charitable or religious institution has substantial source of receipts in form of donations. Such donations may be corpus or voluntary. The Income Tax Law provides blanket exemption to corpus contributions (received for a particular purpose such as for construction of a building) whereas it requires application of voluntary contribution...

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