Blog

Apr 18, 2019

Where assessee-hospital made payments for services rendered towards maintenance of its medical equipments for proper and long functioning, it was required to deduction TDS under section 194C, and not under section 194J

Vide Decision of High Court Of Bombay in Commissioner of Income-tax (TDS)-2 v. Saifee Hospital Facts of the Case: The supplier of medical equipments to the assessee hospital had also rendered services of maintenance of these equipments. The assessee deducted TDS under section 194C while making payment for maintenance services. However, the revenue authorities sought deduction of TDS under section 194J.Further, The Commissioner (Appeals) and Tribunal held that the services which were rendered for maintenance of equipment would not be in the nature of technical services. These services be.....

May 16, 2019

Clarification regarding filing of application for revocation of cancellation of registration

Section 29 of CGST Act, 2017 empowers a proper officer to cancel the registration, including from a retrospective date, of a registered person on account of non-furnishing of returns in FORM GSTR-3B or FORM GSTR-4. Section 30 of the said Act provides an option for such persons to apply for revocation of cancellation of registration within 30 days of cancellation of registration. The Central Board of Indirect Taxes and Customs vide Circular No. 99/18/2019-GST dated 23/04/2019 has clarified the provisions regarding the filing of application for revocation of cancellation ofregistration.Rule 23 .....

May 16, 2019

Provisions of rule 138E of the CGST Rules notified – Restriction on generation of e-way bill

As per Rule 138E, if an assessee, who is a composition dealer has not filed GST returns for two consecutive tax periods, e-way bill cannot be generated for making supply to him. In case of assessees other than composition dealers, if they do not file their GST returns for a consecutive period of two months, e-way bill cannot be generated for making supply to him.The Central Board of Indirect Taxes and Customs vide Notification No. 22 /2019 – Central Tax dated 23/04/2019 has notified 21-06-2019 as the date from which Rule 138E shall come into force. http://www.cbic.gov.in/resources//htdoc.....

May 16, 2019

Extension of due date for furnishing GSTR 1 and GTSR 3B for registered persons in specified districts in Odisha till 10th June and 20th June respectively

GSTR 1 and GSTR 3B for the month of April 2019 has to be filed by 10th May 2019 and 20th May 2019 respectively. The Central Board Of Indirect Taxes and Customs vide Notification No. 23/2019 – CT dated 11th May 2019 has extended the due date for furninshingGSTR 1 for April 2019 till 10th June 2019 for registered persons in specified districts in Odisha. Similarly, due date for furnishing GSTR 3B of April 2019 has been extended till 20th June 2019 forregistered persons in specified districts in Odisha. http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-23-central-tax-english-2019.pd.....

May 16, 2019

Permitting Foreign Portfolio Investors (FPI) to invest in Municipal Bonds

RBI  vide  A.P. Circular  No.  33  dated25-04-2019 has permitted FPIsto invest in municipal bonds. SEBI vide Circular No. IMD/FPIC/CIR/P/2019/62 dated 08-05-2019 has decided to permit FPIs to invest in municipal bonds in  accordance  with  the  provisions  of  Regulation  21(1)(p)  of  SEBI (Foreign  Portfolio  Investors)  Regulations,  2014. https://www.sebi.gov.in/legal/circulars/may-2019/permitting-foreign-portfolio-investors-fpi-to-invest-in-municipal-bonds_42927.html .....

May 16, 2019

Networth Requirements for Clearing Corporations inInternationalFinancial Services Centre(IFSC)

SEBI vide Circular No. SEBI/HO/MRD/DRMNP/CIR/P/2019/60 dated 26-04-2019 has specified the net worth requirements for Clearing Corporations operating in IFSC. The requirements are as follows – Applicant seeking recognition as Clearing Corporation Rs. 50 Crores Recognized Clearing Corporation on commencement of operations, at all times Rs. 50 Crores       (or) Capital as determined under regulation 14(3)(a) and 14(3)(b) of SEBI regulations, 2018 Recognized Clearing Corporation over a period of three yearsfrom commencement of oper.....

May 16, 2019

Legal Entity Identifier: Extension of deadline

Earlier, Reserve Bank Of India hasissued CircularNo.FMRD.FMID.No.10/11.01.007/2018-19dated 29-11-2018on requirement of Legal Entity Identifier (LEI) for participation in non-derivative markets.LEI is a 20-character unique code assigned to entities who are parties to a financial transaction. All participants, other than individuals, undertaking transactions in the markets regulated by RBI and non-derivative forex markets shall obtain LEI codes by the due date specified in that circular. RBIvide Notification No.RBI/2018-19/177dated 26-04-2019 extended the due dates to apply for LEI code as foll.....

May 16, 2019

Reporting requirements in Form 3CD

Section 44AB of the Income-tax Act, 1961 requires specified persons to furnish Tax AuditReport in Form No. 3CD. Form No.3CD was amended vide notification no. GSR 666(E) dated 20th July, 2018 w.e.f. 20th August, 2018. However, the reporting under clause 30C (Reporting on impermissible avoidance arrangements)and clause 44 (Break-up of total expenditure of entities registered or not registered under the GST) of the Tax Audit Report was kept in abeyance till 31st March, 2019 vide Circular dated 17-08-2018. The Central Board of Direct Taxes vide Circular No. 9/2019 dated 14-05-2019, has further de.....

May 16, 2019

Tribunal being last Court of appeal on facts, its finding on question of fact is of significance, thus, where Tribunal did not correctly appreciate as to what Assessing Officer and Commissioner (Appeals) held and what was their reasoning which led to their respective conclusion, matter was to be remanded back for adjudication afresh

Vide Decision of Supreme Court Of India in Principal Commissioner of Income-tax v.Ballarpur Industries Ltd. Facts of the case: The assessee is a Limited Company, which is engaged in the business of manufacturing of various kinds of papers. Case relates to AY 1993-94.According to the assessee, Mr. G.R. Hada and the assessee were the joint promoters of one Company called M/s Andhra Pradesh Rayons Limited.Since a dispute arose amongst the promoter shareholders, Mr. G.R. Hada filed a civil suit against the assessee and other promoter shareholders on the basis of an agreement, which was ente.....

May 16, 2019

Reimbursement of service tax, by ONGC to assessee not a part of aggregate amount specified in sub-section (2) of section 44BB

Vide Decision of High Court Of Uttarakhand in Director of Income-tax International Taxation v.Schlumberger Asia Services Ltd. Facts of the case: Section 44BB of Income Tax Act, 1961 provides that in case of an assessee engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to 10% of the aggregate of (a) the amount paid or payable the assessee or to any person on his behalf on account of the provision of services,.....

May 16, 2019

Interest for late payment of GST payable on gross tax liability and not after set-off of Input Tax Credit

Vide Decision Of High Court Of Telangana in Megha Engineering and Infrastructures Ltd. v. Commissioner of Central Tax Facts of the case: Case of the petitioner is that the GST portal is designed in such a manner that unless the entire tax liability is discharged, the system will not accept the return in Form GSTR-3B. For example, even if an assessee was entitled to set off to the extent of 95% by utilizing ITC, the return cannot be filed unless the remaining 5% is also paid.There was an delay on the part of the petitioner in filing the return for the period October 2017 to May 2018 and.....

Jun 06, 2019

Article by our Partner M Siva Ram Prasad in ICAI Journal

Dear Sir/Madam, We take immense pleasure in informing you that the article by our Partner Sri. M Siva Ram Prasad on "Loan Frauds and Forensic Audit" is published in Institute of Chartered Accountants of India Journal - June 2019.We are attaching a copy for your perusal. Below is the link to the article. https://resource.cdn.icai.org/51943bosfinal-19-p7-cp7.pdf .....

Jun 20, 2019

Amendment for Para 6 in Guidelines for launching of Prosecution in relation to offences punishable under the Customs Act, 1962-reg

Customs vide circular No. 12/2019-Customs dated 24-05-2019 amends para 6 of Circular no. 27/2015 which consists launching Prosecution immediately on completion of adjudication proceedings. But for some cases involving offences relating to items i.e. FCIN, arms, ammunitions and explosives, antiques, art treasures, wild life items and endangered species of flora and fauna may be preferably launched immediately after Issuance of Show Cause Notice (SCN). This Circular Includes that in case of involvement of Foreign National(s), Prosecution may be launched at the earliest, even before issuance of .....

Jun 21, 2019

Press Release on MoU between SEBI &MCA for Data Exchange

SEBI vide Press Release No. 15/2019 dated June 07, 2019prMou was signed between SEBI and Ministry of Corporate Affairs (MCA) on June 7, 2019 for data exchange. MoU facilitate sharing of data and information on Automatic and regular basis which helps in Monitoring the happening corporate frauds.MoU enables sharing of specific information like details of suspended companies, delisted companies, shareholding pattern from SEBI and Financial Statements filed with ROC, Return of Allotment of Shares and Audit Reports relating to corporates from MCA. MoU comes into force from the date itwas signed.....

Jun 21, 2019

Clarification on Transfer of Securities held in Physical form

SEBI vide Press Release No. 12/2019 declares that Transfer of shares held in physical form from April 01, 2019 shall be in Dematerialized form with a Depository. Investor can still hold shares in physical form even after April 01, 2019. The Regulation is only on transfer of Share. https://www.sebi.gov.in/media/press-releases/mar-2019/transfer-of-securities-held-in-physical-mode-clarification_42503.html .....

Jun 21, 2019

Appointment of Chief Risk Officer (CRO) for NBFCs

RBI vide Notification No. RBI/2018-19/184 dated 16th May, 2019 has decided that NBFCs with Asset Size of more than Rs.50 Billion shall appoint a CRO with clearly specified Roles and Responsibilities with adequate Independence to ensure high levels of Risk Management. Instructions for NBFCs in appointing a CRO and Roles of CRO are detailed in the circular. https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT18493A8BC3E04424A89A29ED4D18C0B67FC.PDF .....

Jun 21, 2019

Waiver of Charges on National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) Systems

RBI vide Notification No. RBI/2018-2019/2018 dated June 11, 2019, RBI has decided that with effect from 1st July, 2019 processing charges and Time Varying charges levied by RBI on banks for NEFT and RTGS transactions   will be waived. Banks are advised to pass on the benefits to their customers for NEFT and RTGS transactions with effect from 1st July, 2019. https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT2081AAF195DF07B44E1A103FF512204578D.PDF .....

Jun 21, 2019

Extension of Due date for filing TDS Returns in the State of Odisha

CBDT vide Order under section 119 of Income-Tax Act,1961, CBDT extended, Due date for depositing Tax Deducted at Source (TDS) for the month of April,2019 from 7th May,2019 to 20th May,2019.Due date for Filing of Quarterly statement of TDS for the Last Quarter of FY 2018-19 from 31st may, 2019 to 30th June, 2019, and Due date for Issue of TDS Certificates in form 16 and 16A from 15th of June, 2019 to 15th of July, 2019. https://www.incometaxindia.gov.in/news/odisha_extension_due_date_tds_misccomm_24_5_19.pdf .....

Jun 21, 2019

Extension of Due Date for filing of TDS statement in Form 24Q

CBDT Vide Order under Section 119 of Income Tax Act, 1961, CBDT Extended due date for filing of TDS statement in Form 24Q for FY 2018-19 from 31st May, 2019 to 30th June, 2019 andTDS Certificate in Form 16 for FY 2018-19 from 15th June, 2019 to 10th of July, 2019. It’s because of Revision of Form 24Q’s format and Consequent updating of the File Validation Utility for its online filing. https://www.incometaxindia.gov.in/Lists/Latest%20News/Attachments/317/Order_extension_due_date_Form_24Q_MiscComm_4_6_19.pdf .....

Jun 21, 2019

Belated Claim of Refund during the course of Assessment Proceedings which resulted into delay in granting of refund could not be a reason attributable to the assessee and couldn’t dismiss the payment of interest for the amount of refund delayed

Vide decision of High Court of Bombay in Commissioner of Income Tax V. Melstar Information Technologies Limited. Facts of the Case: The Assessee (Melstar) had not claimed certain expenditure before the assessing officer but eventually raised that claim before the Tribunal.Where the Tribunal remanded back the proceedings to CIT(A) and the additional benefit claimed by the assessee was granted. This result Refund and also question of payment of Interest on refund.The interest on refunds would be payable under section 244A(1) of Income Tax Act, 1961 with the prescribed rates in it.It also .....

Jun 21, 2019

Appeal on Income Tax Appellate Tribunal (ITAT) on remanding back to Commissioner (Exemptions) regarding rejection of Application under section 80G (5)

Vide Decision of High Court of Allahabad in People Cause Foundation v. Income Tax Appellate Tribunal. Facts of the Case: The Appellant is a company registered under section 8 of Companies Act, 2013 and had obtained a certificate under section 12A of Income Tax act,1961 (the Act, 1961).It also applied for Certificate Under Section 80G of the Act, 1961. The Application was dismissed, against which the Appellant preferred an appeal before ITAT, Lucknow.The ITAT redirected the matter back before the commissioner of income tax to be decided afresh after verifying the facts of the case with t.....

Sep 23, 2019

Waiving of to file FORM ITC-04 for Financial years 2017-18 & 2018-19

GST wide Notification no. 38/2019 dated 31st August, 2019 Waives to file FORM ITC-04 for period  from July,2017 to march,2019. Inputs, Semi finished goods or capital goods shall be sent to the job worker under the cover of a challan issued by the principal(Registered Person) including where such goods are sent directly to job worker. The Principal (Registered Person) is required to file FORM ITC-04 every quarter stating the said details. Now, by this notification it is waived to file FORM ITC-04 for period from July,2017 to march,2019, Further it is required to include details o.....

Sep 23, 2019

Section 103 of Finance (No. 2) Act, 2019 coming into Force

GST Wide Notification No.39/2019 dated 31st August, 2019 appoints 1st September, 2019 as the date from which Section 103 of Finance Act (NO.2), 2019 will come into force. Section 103 inserts Section 54(8A) in CGST Act which states that the government may disburse the refund of the state tax in such a manner as may be prescribed. .http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-39-central-tax-english-2019.pdf;jsessionid=E8B5417A96760713EDF3D0C82C3388C2 .....

Sep 23, 2019

Parking of funds in Short Term Deposits of Scheduled Commercial Banks by Mutual Funds – Pending Deployment.

SEBI vide Circular no. SEBI/HO/IMD/ DF4/CIR/P/2019/093 dated August 16th, 2019 it is clarified that Trustees/Asset  Management Companies  (AMCs)shall  ensure  that  no funds of a scheme is parked in Short Term deposit (STD) of a bank which has invested in that scheme. Trustees/AMCsshall  also  ensure  that  the  bank  in  which a scheme  has STD do  not  invest in  the  said  scheme  until  the  scheme  has STDwith such Bank. https://www.sebi.gov.in/legal/circulars/aug-2019/parking.....

Sep 23, 2019

Cash withdrawl at Point of Sale (PoS) Devices

RBI vide notification no. RBI/2019-20/50 dated August 29, 2019 reiterates the details regarding Cash withdrawl at PoSdeivces as the thing notified has not being implemented. Cash can be withdrawn from PoS devices through all Debit Cards/Open loop prepaid Cards issued by banks which is limited to Rs.1,000 per day in Tier I and II centres and Rs.2000 per day in Tier III to VI Centres. It can be charged to customers not more than 1% on the transaction amount. It also adds, banks are also advised to submit data on cash withdrawls at PoS  Devices to The Chief general manager, Departm.....

Sep 23, 2019

real Time Gross Settlement (RTGS) System – Increase in operating hours

RBI vide notification no. RBI/2019-20/46 dated August 21, 2019 decides to increase in operating hours of RTGS system. At present, the RTGS system is available for customer transactions from 8:00 am to 6:00 pm and for inter-bank transactions from 8:00 am to 7:45 pm. In order to increase the availability of the RTGS system, it has been decided to extend the operating hours of RTGS and commence operations for customers and banks from 7:00 am. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11667&Mode=0 .....

Sep 23, 2019

Exception to monetary limits for filing appeals specified in any circular issued under section 268A of the Income tax Act, 1961-reg (Specially on the basis of merit incases involved in organized Tax Evasion)

Income Tax vide Circular no. 23/2019 dated 6th September,2019 gives exception to monetary limits for filing of departmental appeals before Income Tax Appellate Tribunal(ITAT), High Courts and SLPs/appeals before Supreme Court. Board has decided not withstanding anything contained in any circular issued under section 268A specifying monetary limits for filing of departmental appeals before ITAT/HC/SLPs/SC, appeals may be filed on merits as an exception to said circular, where board, by way of special order direct filing of appeal on merit in cases involved in organized tax evasion activity......

Sep 23, 2019

Consolidated circular for assessment of start-ups

Income Tax vide circular no.22/2019 dated 30thAugust, 2019 consolidates all circulars regarding Assessment of startups. Assessment of Start-ups: Case-1: Companies recognized by  Department for promotion of  industry and  international trade(DPIIT) which have filed  FORM No.2 and  whose cases are under “Limited Scrutiny” on the  single issue of applicability of section56(2)(viib) of income tax Act, 1961(the act), the contention of the assesse will summarily be accepted. Case-2: companies recognized by DPIIT which havefiled Form No. 2 and whose .....

Sep 23, 2019

Rectification of mistakes/errors in GSTR-3B manually

-           Vide Decision of High court of Andhra Pradesh in Panduranga Stone Crushers Vs. Union of India. Facts of the case: Applicant (panduranga stone crushers)for the months of July, 2017 to march, 2018 the petitioner submitted GSTR-3B returns through GST portal as required under law.The Petitioner while claiming IGST Input, the petitioner is inadvertently and by mistake reported IGST inputtax credit in a column relating to import of goods and services instead of placing that particular amount  viz., IGST input tax credit in all.....

Sep 23, 2019

Determination of location of State bench of tribunal is in domain of central government; role of state government is confined to determine place of area benches

-           Vide Decision of High court of Allahabad in Torque Pharmaceuticals (P.) Ltd. Vs Union of India. Facts of the case: The assessee filed a writ petition in respect of constitution of a Bench of Appellate Tribunal in Uttar Pradesh and had drawn the attention of the Court to the provisions of section 109(6) of Central Goods and Service Tax Act, 2017. Judgement: The Honourable high court of Allahabad held the case as follows: From a reading of the provisions of section 109(6) itself, it is clear that it is not in the domai.....

Oct 16, 2019

Filing of Annual return is made optional for businesses having turnover less than Rs. 2 crores

GST wide notification No. 47/2019 dated 09th October 2019 on the recommendations of the council notifies that registered persons whose aggregate turnover in a financial year does not exceed two crore rupees in respect of financial years 2017-18 and 2018-19, are having the option to furnish the annual return. http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-47-central-tax-english-2019.pdf;jsessionid=351C29506073E73E96266EFB7E2DB4A9 .....

Oct 16, 2019

Prescribing the due date for filing return in FORM-GSTR-3B for the months from October 2019 to March 2020

GST wide Notification no. 44/2019 dated 09th October, 2019 prescribes the due date for furnishing FORM-GSTR-3B for the months from October, 2019 to March, 2020 shall be furnished electronically through common portal, on or before the 20th day of the month succeeding such month. http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-44-central-tax-english-2019.pdf;jsessionid=92DCCE2341F99AB6331DC2C3BFF237D3 .....

Oct 16, 2019

Prescribing the due date for filing return in FORM-GSTR-1 for the registered persons (aggregate turnover upto 1.5 crores) for months from October, 2019 to March,2020

GST Wide Notification  No. 45/2019 dated 09th October, 2019 prescribes the due date for furnishing FORM-GSTR-1 (details of outward supply of goods and/or services)  for the registered person having turnover upto 1.5 croresfor the months from October, 2019 to December 2019 shall be furnished with in 31st January,2020 and for the months from January, 2020 to march, 2020 shall be furnished with in 30th April, 2020. http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-45-central-tax-english-2019.pdf;jsessionid=D7DB01104AD08E11CE86DF43ADABF21E .....

Oct 16, 2019

Prescribing the due date for filing return in FORM-GSTR-1 for the registered persons (aggregate turnover more than 1.5 crores) for months from October, 2019 to March,2020

GST Wide Notification  No. 46/2019 dated 09th OCtober, 2019 prescribes the due date for furnishing FORM-GSTR-1 (deails of outward supply of goods and/or services)  for registered persons having Turnover more than 1.5 crores for the months from October, 2019 to March, 2020 shall be furnished electronically through common portal till the eleventh day of the month succeeding such month. http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-46-central-tax-english-2019.pdf;jsessionid=188FA703E5BDB7F27E6B152FB5273828 .....

Oct 16, 2019

Change in Bank rate

RBI vide notification no. RBI/2019-20/77 dated October 04, 2019 it was announced as per the fourth Bi-monthly Monetary policy statement 2019-20 of October 04,2019 the bank rate is revised downwards by 25 basic points from 5.65% to 5.40%. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11705&Mode=0 .....

Oct 16, 2019

Changes in Liquidty Adjustment Facillity – Repo and Reverse Repo rates

RBI vide notification no. RBI/2019-20/75 dated October 04, 2019 it was announced as per the fourth Bi-monthly Monetary policy statement 2019-20 of October 04,2019. It has been decided by the Monetary Policy Committee (MPC) to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.40% to 5.15%. Consequently the Reverse Repo rate under the LAF stands adjusted to 4.90%. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11703&Mode=0 .....

Oct 16, 2019

Bharat Bill Payment system– Expansion of biller categories

RBI vide notification no. RBI/2019-20/61 dated September 16, 2019 it was announced as per Statement on Developmental and regulatory policies released with third Bi-monthly monetary policy statement 2019-20 of August 07, 2019 it has been decided to expand the scope and coverage of BBPS to include all categories of billers who raise recurring bills (except prepaid recharges) as eligible participants, on a voluntary basis. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11686&Mode=0 .....

Oct 16, 2019

Clarification in respect of option exercised under section 115BAA of the income tax Act, 1961 inserted through the taxation laws (Amendment) Ordinance, 2019.

Income tax vide circular no. 29.2019 dated 2nd October, 2019. Section 115BAA provides that, A domestic company shall at its option to pay tax at a lower rale of 22 percent for any previous year relevant to the Assessment Year beginning on or after 1st April 2020, subject to certain conditions, including that the total income should be computed without claiming any deduction or exemption.The option is required to be exercised by the company before the due date of furnishing return of income: andThe option once exercised cannot be subsequently withdrawn and shall apply to all subsequent a.....

Oct 16, 2019

Faceless Assessment for Income taxpayers launched

Income tax of India launched Faceless Assessment for taxpayers. Centre Government had recently notified e-Assessment scheme to facilitate faceless assessment of income tax returns through completely electronic communication between tax officials and tax payers. e-Assessment procedure: Under the new system of faceless e-Assessment, tax payers will receive notices on their registered emails as well as on registered accounts on the web portal www.incometaxindiaefiling.gov.in with real time alert by way of SMS on their registered mobile number, specifying the issues for which their cases.....

Oct 16, 2019

Higher depreciation on certain motor cars, motor buses, motor lorries and motor taxies

Income Tax vide Notification no. 69/2019 dated 20th September, 2019 the Central Board of Direct Taxes, makes the following rules to further amend the Income-tax Rules, 1962 by changing Depreciation rates for  motor cars, motor buses, motor lorries and motor taxies. Changed depreciation rates are as follows: Block of assets Depreciation allowed as per %tage of WDV (i) Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990 except those covered under entry (ii); 15 (ii) Motor cars.....

Oct 16, 2019

Amendment in Rule 2F [infrastructure debt fund for the purpose of exemption under section 10(47)

Income tax vide Notification no. 66/2019 Central Board of Direct Taxes(CBDT) omitted Rule 2F(5) of Income tax Rules, 1962. Section 10(47) of Income tax Act, 1961 exempts income of an Infrastructure debt fund, set-up in accordance with rules prescribed in Rule 2F of Income tax Rules, 1962. Rule 2F(5) in which it says “ an investor in the bond issued by Infrastructure debt fund being a non-resident, the original or initial maturity of bond, at time of first investment by such non-resident investor, shall not be less than a period of five years.” is omitted. By omitting such provisi.....

Oct 16, 2019

Extension of due date for linking of pan with aadhar

Income Tax vide Notification no. 75/2019 dated 28th September, 2019 extends due date for linking PAN with aadhar from 30th September, 2019 to 31st December,2019. https://www.incometaxindia.gov.in/communications/notification/notification_75_2019.pdf .....

Oct 16, 2019

Extension of due date for filling of Income tax returns and tax audit reports for assesses covered under explanation(2) clause(a) to section 139(1) [companies and other than companies (firms)] Income tax vide order no. F.No. 225/157/2019/ITA.II Central Board of Direct Taxes extended due date for filing Income Tax Return and Tax audit report for Assessment Year 2019-20 for assesses covered under Explanation (2) (a) to section 139(1) [companies and other than companies (firms)] from 30th September, 2019 to 31st October, 2019.

Income tax vide order no. F.No. 225/157/2019/ITA.II Central Board of Direct Taxes extended due date for filing Income Tax Return and Tax audit report for Assessment Year 2019-20 for assesses covered under Explanation (2) (a) to section 139(1) [companies and other than companies (firms)] from 30th September, 2019 to 31st October, 2019. However there is no extension of due date for purpose of Explanation 1 to section 234A (interest for defaults in furnishing return) of the Act and the assesse shall remain liable for payments of interest as per provisions of section 234A of the Act. ht.....

Oct 16, 2019

Show-cause notice issued under section 26(1) of Prohibition of Benami Property Transactions Act, 1988 is not appealable under the court of law.

-         Vide Decision of High court of Delhi in Initiating officer Vs. Appellate tribunal under ther prohibition of Benami Property transactions. Facts of the case: Instant writ petition was filed challenging the order of the Appellate Tribunal.The challenge raised was that no appeal could have been filed before the Appellate Tribunal against show-cause notice issued by the Adjudicating Authority under section 26 of the Prohibition of Benami Property Transactions Act, 1988 as the said provision does not permit such an appeal challenging a show-c.....

Oct 16, 2019

Not releasing the refund of income tax for the reason of technical glitch in the system is not tenable.

Vide Decision of High Court of Bombay in Vodafone Idea Limited Vs. Commissioner of Income-tax Facts of the Case: This petition is filed for a direction to the respondents-the Income Tax authorities to refund an amount of Rs.149,98,21,407/- with statutory interest.The petitioner is a public limited company and is engaged in providing telecommunication services. For the period relevant to assessment year 2014-15, the petitioner had suffered sizable deduction of tax at source, at the hands of payees, which was in excess of Rs.204/- crores. The return filed by the assessee for the said asse.....

Oct 16, 2019

Clubs cannot be treated as distinct from their members and there is no sale transaction between a club and its members. Hence, there can be no sales tax or service tax on supplies by club to its members

Vide decision of Supreme Court of India in State of West Bengal  vs. Calcutta club Limited. Facts of the case: The Assistant Commissioner of Commercial Taxes issued a notice to the respondent Club assessee apprising it that it had failed to make payment of sales tax on sale of food and drinks to the permanent members during the quarter ending 30-6-2002.After the receipt of the notice, the respondent Club submitted a representation and the assessing authority required the respondent Club to appear before it on 18-10-2002.The notice and the communication sent for personal hearing was.....

Jan 21, 2020

Reverse charge mechanism (RCM) on renting motor vehicles

GST vide Circular No. 130/2019 dated 31st December, 2019 Clarifies RCM on renting of motor vehicles. GST applicability on renting of motor vehicles: Suppliers of service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient have an option to pay GST either at 5% with limited ITC (of input services in the same line of business) or 12% with full ITC. By 37th GST council meeting, Sl.No. 15 was inserted in  the RCM notification as below, Sl. No. 15 Category of Supply of Se.....

Jan 21, 2020

Standard Operating Procedure to be followed in case of non-filers of returns

GST vide Circular No. 129/48/2019 dated 24th December 2019 clarifies the issue and to ensure uniformity in the implementation of the provisions of the law across field formations with respect to appropriate procedure to be followed in case of non-furnishing of return under section 39 (monthly returns) or 44 (annual return) or 45 (final return) of the CGST Act, 2017. The clarification is as follows, As per section 46 of the CGST Act, 2017, It is required to issue a notice in FORM GSTR-3A to a registered person who fails to furnish return under section 39 or section 44 or section 45 (here.....

Jan 21, 2020

Enhancing security of Card Transactions

RBI vide notification no. RBI/2019-20/142 dated January 15, 2020, Reserve Bank of India has issued a regulation that, The issuers of the card shall provide the following to all cardholders, Facility to switch on/off and set/modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions - domestic and international, at PoS/ATMs/online transactions/ contactless transactions, etc.The above facility on a 24x7 basis through multiple channels - mobile application/internet banking / ATMs / Interactive Voice Response (IVR); this may also be of.....

Jan 21, 2020

Reporting of Large Exposures to Central Repository of Information on Large Credits (CRILC) – Urban Co-operative Banks(UCBs)

RBI vide notification no. RBI/2019-20/125 dated December 27, 2019, it has been decided that Primary (Urban) Co-operative Banks (UCBs) having total assets of ₹500 crore and above as on 31st March of the previous financial year shall report credit information, including classification of an account as Special Mention Account (SMA), on all borrowers having aggregate exposures of ₹5 crores and above with them to Central Repository of Information on Large Credits (CRILC) maintained by the Reserve Bank. Aggregate exposure shall include all fund-based and non-fund based exposure, including inves.....

Jan 21, 2020

Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961

Income tax vide Circular no. 32/2019 dated 30th December, 2019. A new provision namely Section 269SU was inserted in the Income-tax Act, 1961, vide the Finance (No. 2) Act 2019, which provides that every person having a business turnover of more than Rs 50 Crore shall mandatorily provide facilities for accepting payments through prescribed electronic modes. Prescribed modes are as mentioned below which is in addition to the facility for other electronic modes of payment, Debit Card powered by RuPayUnified Payments Interface (UPI) (BHIM-UPI)Unified Payments Interface Quick Response Co.....

Jan 21, 2020

Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of Timeline up to 31.03.2020.

Income tax vide Circular No. 1/2020 dated 03rd January, 2020. The CBDT has received references from the field formation, including requests made by the ICAI chapters, wherein, it has been brought to the notice of CBDT that the taxpayers could not avail the benefit of the one-time relaxation window due to genuine hardships. With a view to give a final opportunity to such taxpayers, and to reduce the pendency of existing prosecution cases before the courts, CBDT extends the due date for filing of the application before the competent authority to on or before 31.01.2020. https://www.in.....

Jan 21, 2020

Annual System audit for Market Infrastructure Institutions (MIIs)

SEBI vide Notification No. SEBI/HO/MRD1/ICC1/CIR/P/2020/03 dated 07thJanuary, 2020 it provided, Framework to conduct Annual System Audit of Market Infrastructure Institutions  and Terms of Reference (TOR) for System Audit ProgramMIIs  are  also  advised  to  maintain  a  list  of  all  the  relevant  SEBI circulars/  directions/ advice,  etc.  pertaining  to  technology  and  compliance thereof,  as  per  format  enclosed in  the Circular,MIIs are advised to submit information with regard to exceptional major  Non-Compliances  (NCs)/  minor  NCs observed in th.....

Jan 21, 2020

Regulation of management and advisory services by Asset Management Companies to Foreign Portfolio Investors

SEBI vide circular No. SEBI/HO/IMD/DF2/CIR/P/2019/155 dated 16thDecember, 2019 it has been decided that, AMCs  may  provide  management  and  advisory  services  in  terms  of Regulation  24(b)  of MF  Regulations to FPIs  falling  under the  following categories of FPIs as specified in FPI Regulations: Government  and  Government  related  investors  such  as  central banks,    sovereign    wealth    funds, international or multilate.....

Jan 21, 2020

Stewardship Code with effect from 01.04.2020 for all Mutual Funds and all categories of AIFs, in relation to their investment in listed equities

SEBI vide circular No. CIR/CFD/CMD1/168/2019 dated 24th December 2019. Previously, SEBI has already implemented principles on voting for Mutual  Funds,  which prescribed detailed mandatory requirements for Mutual Funds in  India to disclose their voting policies and actual voting by Mutual Funds on different resolutions of investee companies. SEBI along with the Insurance Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA) had subsequently examined a proposal for introducing stewardship principles in India, which was app.....

Jan 21, 2020

SEBI signs Memorandum of Understanding on bilateral co-operation with the Astana Financial Services Authority, Kazakhstan

SEBI vide Press Release No. 30/2019 dated 23rd December 2019 it is published that the SEBI and the Astana Financial Services Authority (AFSA) have entered into a bilateral Memorandum of Understanding (MoU) for mutual co-operation and technical assistance. The objective of the bilateral MoU is to strengthen cross border co-operation in the area of securities regulation. This will facilitate mutual assistance, contribute towards the efficient performance of the supervisory functions, and enable effective enforcement of laws and regulations governing the securities markets. https://www.seb.....

Jan 21, 2020

Revised Return of Income of companies to be accepted by the authorities which are in case of scheme of arrangement for amalgamation etc.

It is incumbent upon Department to assess total income of successor in respect of previous assessment year after date of succession. Thus, where predecessor companies/transferor companies had been succeeded by appellants / transferee companies who had taken over their business along with all assets, liabilities, profits and losses etc. in the scheme of amalgamation, in view of provisions of section 170(1), Department was required to assess income of appellants after taking into account revised Returns filed after amalgamation of companies. -         .....

Jan 21, 2020

Composite supply of goods and services and regular supply are differentiated.

A finding as regards composite supply must take into account supplies as effected at a given point in time on 'as is where is' basis. In particular instances where same taxable person effects a continuous supply of services coupled with periodic supplies of goods/services to be used in conjunction therewith, one could possibly view periodic supply of goods/services as composite supplies along with service that is continuously supplied over a period of time. These, however, are matters that will have to be decided based on facts in a given case and not in abstract. Vide decision of High Cou.....

Feb 11, 2020

Budget Highlights 2020-21 - Direct Taxes

New and simplified personal income tax regime proposed wherein tax rates are as follows: Taxable Income (in Rs.) Existing Tax Rates New Tax Rates 0 - 2,50,000 Exempt Exempt 2,50,000 – 5,00,000 5% 5% 5,00,000 – 7,50,000 20% 10% 7,50,000 – 10,00,000 20% 15% 10,00,000 – 12,50,000 30% 20% 12,50,000 – 15,00,000 30% 25% Above 15,00,000 30% 30% Around 70 of the existing exemptions and deductions (more than 100) to be removed in the new simplified regime. New tax r.....

Feb 12, 2020

Budget Highlights 2020-21 - Indirect Taxes

Simplified GST returns with features like SMS based filing for nil return and improved input tax credit flow to be implemented from 1st April 2020 as a pilot run.Customs duty raised on footwear to 35% from 25% and on furniture goods to 25% from 20%.5% health cess to be imposed on the imports of medical devices, except those exempts from Basic Customs Duty.Excise duty proposed to be raised on Cigarettes and other tobacco products. No change made in the duty rates of bidis. .....

Feb 12, 2020

Budget Highlights 2020-21 - Fiscal Management

For the FY 2019-20:Revised Estimates of Expenditure: at Rs.26.99 lakh Crores.Revised Estimates of Receipts: estimated at Rs.19.32 lakh Crores.For the year 2020-21:Nominal growth of GDP estimated at 10%.Receipts: estimated at Rs.22.46 lakh Crores. Expenditure: at Rs.30.42 lakh Crores. Fiscal deficit of 3.8% estimated in Revised Estimate 2019-20 and 3.5% for Budget Estimate 2020-21. .....

Feb 12, 2020

Budget Highlights 2020-21 - Agriculture and Rural Economy

The government proposed an action plan to boost agriculture and farmers' welfare.Kisan Rail to be set up by Indian Railways through PPP: To build a seamless national cold supply chain for perishables (milk, meat, fish, etc.).Express and Freight trains to have refrigerated coaches.Krishi Udaan to be launched by the Ministry of Civil Aviation: Both international and national routes to be covered. North-East and tribal districts to realize the Improved value of Agri-products.Artificial insemination to be increased to 70% from the present 30%.Foot and Mouth Disease, Brucellosis in cattle and P.....

Feb 12, 2020

Budget Highlights 2020-21 - Education and skills

National Police University and National Forensic Science University proposed for policing science, forensic science, and cyber-forensics.Degree level full-fledged online education program by Top-100 institutions in the National Institutional Ranking Framework.Up to 1-year internship to fresh engineers to be provided by Urban Local Bodies. The budget proposes to attach a medical college to an existing district hospital in Public-Private Partnership mode. .Special bridge courses to be designed by the Ministries of Health and Skill Development to fulfill the demand for teachers, nurses, para-med.....

Feb 12, 2020

Budget Highlights 2020-21 - Industry, Commerce and Investment

National Technical Textiles Mission: With four-year implementation period from 2020-21 to 2023-24.At an estimated outlay of Rs 1480 crore. To position India as a global leader in Technical Textiles. NIRVIKscheme for exporters to achieve higher export credit disbursement, which provides for: Higher insurance coverage. Reduction in premium for small exporters. Simplified procedure for claim settlements. This scheme is expected to support the export of around Rs. 30 Lakh Crores in 5 years. It is also proposed to launch a scheme to encourage the manufacture of mobile phones, electronic equipm.....

Feb 12, 2020

Budget Highlights 2020-21 -Health

PM Jan Arogya Yojana (PMJAY): Viability Gap Funding (VGF) window (incentive scheme in which a certain percentage of the total capital cost is paid by the government) proposed for setting up hospitals in the Public-Private Partnership mode. Aspirational Districts with no Ayushman empaneled hospitals to be covered in the first phase.Jan Aushadhi Kendra Scheme to offer 2000 medicines and 300 surgical in all districts by 2024. TB Harega Desh Jeetega campaign launched with a commitment to end Tuberculosis by 2025. Jal Jeevan Mission: Augmenting local water sources, recharging existing sources, a.....

Feb 12, 2020

Budget Highlights 2020-21 - Women Empowerment

Allocation of Rs. 35,600 crore for nutrition-related programs proposed for the FY 2020-21.Rs. 28,600 crores proposed for women-specific programs.The issue about the age of a girl entering motherhood – It is proposed to appoint a task force to present its recommendations in six months’ time. .....

Feb 12, 2020

Budget highlights 2020-21 - Financial Sector

Deposit Insurance and Credit Guarantee Corporation (DICGC) permitted to increase Deposit Insurance Coverage to Rs. 5 lakh from Rs.1 lakh per depositor.NBFCs eligibility limit for debt recovery reduced from:Rs. 500 crore to Rs 100 crore asset size. Rs 1 crore to Rs 50 lakh loan size. Government to sell its balance holding in IDBI Bank to private, retail and institutional investors through the stock exchange.The window for MSME’s debt restructuring by RBI to be extended by one year till March 31, 2021.An app-based invoice financing loan product for MSMEs to be launched. .....

Feb 12, 2020

Budget Highlights 2020-21 - Infrastructure

A National Logistics Policy to be released soon to clarify roles of the Union Government, State Governments and key regulators.Single window e-logistics market to be created.Rs.1.7 lakh crore proposed for transport infrastructure in 2020-21.Delhi-Mumbai Expressway and two other packages to be completed by 2023. Chennai-Bengaluru Expressway to be started.Large solar power capacity to be set up alongside rail tracks, on land owned by railways. Four station re-development projects and operation of 150 passenger trains through PPP. More Tejas type trains to connect iconic tourist destinations.1.....

Feb 12, 2020

Budget Highlights 2020-21 - Culture and Tourism

An Indian Institute of Heritage and Conservation under Ministry of Culture proposed with the status of a deemed University.5 archaeological sites to be developed as iconic sites with on-site Museums: Rakhigarhi (Haryana) Hastinapur (Uttar Pradesh) Shivsagar (Assam) Dholavira (Gujarat) Adichanallur (Tamil Nadu)Museum on Numismatics and Trade to be located in the historic Old Mint building in Kolkata. Government to provide support for setting up of a Tribal Museum in Ranchi (Jharkhand). Maritime Museum to be set up at Lothal- the Harrapan age maritime site near Ahmedabad, by the Ministry of S.....

Feb 12, 2020

Budget Highlights 2020-21 - Others

Government to sell a part of its holding in LIC by way of Initial Public Offer (IPO).Fiber to the Home (FTTH) connections through Bharatnet to link 100,000-gram panchayats this year. Rs.6000 crore proposed for the Bharatnet program in 2020-21. For recruitment to Non-Gazetted posts in Government and Public sector banks, an independent, professional and specialist National Recruitment Agency (NRA) for conducting a computer-based online Common Eligibility Test for recruitment.New National Policy on Official Statistics to promote the use of the latest technologies including Artificial Intelligenc.....

Feb 21, 2020

Introduction of Standard Operating Procedure (SOP) to be followed by exporters

GST vide Circular No. 131/2020 dated 23rd January 2020 directs a Standard Operating Procedure (SOP) to be followed by exporters to mitigate the risk of monetization of credit fraudulently obtained or ineligible credit through a refund of Integrated Goods & Service Tax (IGST) on exports by creating fake invoices. http://cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-131-new.pdf .....

Feb 21, 2020

Guidelines on Merchant Acquiring Business – Regional Rural Banks

RBI vide notification no. RBI/2019-20/156 dated February 06, 2020, Reserve Bank of India has been decided to allow RRBs to provide mobile banking services and to act as merchant acquiring banks using Aadhaar Pay – BHIM app and POS terminals. In this connection, the guidelines are as under: The RRB should have permission for mobile banking from the Reserve Bank of India. Additional conditions: The bank's IT systems & CBS should have been subjected to an IS Audit not earlier than six months from the date of application to confirm that the system is adequately secure.The bank m.....

Feb 21, 2020

Guidelines for Restructuring of Advances in Micro, Small and Medium Enterprises (MSME) sector

RBI vide notification no. RBI/2019-20/160 dated February 11, 2020, it has been decided to extend the one-time restructuring of MSME advances. Accordingly, a one-time restructuring of existing loans to MSMEs classified as 'standard' without a downgrade in the asset classification is permitted, subject to the following conditions: The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower does not exceed ₹25 crores as on January 1, 2020.The borrower’s account was in default but was a ‘standard asset’ as on January 1, 2020 and continues to be cl.....

Feb 21, 2020

Modification of Guidelines of Interest Subvention Scheme for MSMEs and exempting Udhyog aadhar number (UAN)

RBI vide notification no. RBI/2019-20/155 it has been decided by the Government of India to bring modifications in the operational guidelines which are as follows: Submission of statutory auditor certificate by June 30, 2020, and in the meantime, settle claims based on internal/concurrent auditor certificate.Acceptance of claims in multiple lots for a given half-year by eligible institutions.Requirement of Udyog Aadhar Number (UAN) may be dispensed with for units eligible for GST. For the Unit not required to obtain GST, may either submit Income Tax Permanent Account Number (PAN) or their .....

Feb 21, 2020

The procedure of PAN allotment through Common Application Form (CAF) along with registration of Foreign Portfolio Investors (FPls) with SEBl under the Department of Economic Affairs and KYC for opening Bank and Demat Account.

Income tax vide Notification No. 11/2020 dated 7th February 2020 directed a procedure for allotment of PAN by Foreign portfolio Investors. A Common Application Form (CAF) for the purpose of registration, opening of bank and Demat accounts and application for Permanent Account Number (PAN) has been notified for the Foreign Portfolio Investors (FPls). Application for allotment of Permanent Account Number (PAN) will be uploaded in CAF as specified by the SEBI. After due examination and generation of FPI Registration certificate, SEBI will forward data in form 49AA to prescribed Income Tax .....

Feb 21, 2020

Exemption from clubbing of investment limit for foreign Government agencies and its related entities regarding Foreign portfolio investors

SEBI vide Circular No. IMD/FPI&C/CIR/P/2020/07 dated 16thJanuary, 2020 it amended the that regarding “Foreign Portfolio Investors”, certain foreign Government agencies and its related entities are exempt from clubbing of investment limit requirements and other investment conditions either by way of an agreement or treaty with other sovereign governments or by an order of the Central Government. https://www.sebi.gov.in/legal/circulars/jan-2020/exemption-from-clubbing-of-investment-limit-for-foreign-government-agencies-and-its-related-entities_45697.html .....

Feb 21, 2020

Performance review of the commodity derivatives contracts by Recognised Stock Exchange

SEBI vide circular No. SEBI/HO/CDMRD/DNPMP/CIR/P/2020/21 dated 04thFebruary, 2020 it has been decided to have a  framework to evaluate the performance of Derivative contracts based not merely on statistics regarding delivery and trade volumes but also on the strength of a  comprehensive empirical assessment after considering all relevant information,   pertaining   to the performance of a derivative contract during the relevant period of time. Framework for performance review is as follows: All recognized stock exchanges shall review the performance of all contracts traded on thei.....

Feb 21, 2020

Currency Future and Options Contracts (involving Indian Rupee) on Exchanges in International Financial Services Centres (IFSC)

SEBI vide circular No. SEBI/HO/MRD2/DCAP/CIR/P/2020/17 dated 03rd February 2020, it has been decided that   for  currency futures  and options contracts involving Indian Rupee (with settlement in foreign currency), the position limits for eligible market participants, per currency pair per stock exchange, shall be as follows: Trading Members (positions on proprietary basis as well as clients’ position) - Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher.Institutional Investors - Gross open position a.....

Feb 21, 2020

SEBI develops an online system for detecting misuse of clients’ securities by brokers

SEBI vide Press Release No. 05/2020 dated 13th February 2020 it is published that the SEBI has developed an in – house online system by which it would be able to prepare client level securities holding register of the brokers. SEBI collects the details of the clients’ securities submitted in weekly report filed by brokers with the Exchanges and updates the same with trades conducted in the accounts of said clients using the data available with SEBI in Data Warehousing and Business Intelligence System (DWBIS) as well as data provided by Exchanges, Clearing Corporations and Depositories .....

Feb 21, 2020

Changes in Forms to be filed with MCA for Incorporation of company, Registration with EPFO and others

MCA vide Notification dated 6th February 2020 issued Companies incorporation and amendment rules, 2020. MCA has introduced a new web service for Reservation of Name called SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) available at www.mca.gov.in for further simplification of incorporation of companies. There is an existing form called AGILE for registration at Employees’ Provident Fund Organisation (EPFO) is replaced with AGILE-PRO which additionally registers the company for Professional tax and Opening of Bank Account. These forms will come into for.....

Feb 21, 2020

Changes in requirements to appoint a Whole-time Company Secretary for certain companies and applicability of Secretarial Audit.

From the Companies  (Appointment and Remuneration) Rules, 2014: Rule 8A which specifies the requirement of a whole-time company secretary for certain companies has been amended. Private companies having paid-up share capital of >/= Rs. 10 Crores shall have a Whole-time Company secretary. This amendment is applicable in respect of Financial years commencing on or after 1st April 2020. Rule – 9: Secretarial Audit shall be applicable for companies when they satisfy the following: Every public company having a paid-up share capital of >/= Rs. 50 Crores; orEvery Public Company.....

Feb 21, 2020

Applicability of Section 460 of Companies Act, 2013 to Limited liability Partnerships

From The Gazette of India it has been notified that Section 460 of Companies Act, 2013 shall be applicable to Limited Liability partnerships (LLPs). Section 460 is about the condonation of delay in certain cases can be accepted by the Department if the reasons for such delay are provided in writing to the adjudicating Authority which does not lead to the payment of penalty (can be called as a waiver of such penalties for genuine delays in Filing of required forms). http://www.mca.gov.in/Ministry/pdf/NotificationLLP_31012020.pdf .....

Feb 21, 2020

Unutilized credit under MODVAT scheme does not qualify for deductions under section 43B

Vide Decision of Supreme court of India in Maruthi Suzuki India Limited Vs. Commissioner of Income Tax Facts of the case: The  Assessee, a Company, has been engaged in the manufacturing and sale of various Maruti Cars and also trades in spares and components of the vehicles. It acquires exiceable raw materials and inputs which are used in the manufacturing of the vehicles.The assessee had also been taking benefit of MODVAT credit on the raw material and inputs used in the manufacturing.At the end of the Assessment Year, 1999-2000 was left as unutilized MODVAT credit.In the return, it w.....

Feb 21, 2020

Section 129 is a complete code for the purpose of addressing all violations committed in transit leading to detention, seizure, and release of goods and brings within its sweep all such contraventions, irrespective of the gravity of the violation itself.

Vide decision of High Court of Madras in Ideal Movers (P.) limited vs. State tax Officer. Facts of the case: The Petitioner is a transporter and had been engaged to transport a consignment.The consignment was accompanied by invoices and an E-way bill.E- way bill was generated on 12-01-2020 and valid till 16-01-2020. As the lorry had broke-down and parked in a garage with damage in the gearbox. There was a delay in the repair due to Pongal holidays and the generated e-way bill got expired.The lorry proceeded to deliver the goods to the destination with an expired e-way bill which was det.....

Oct 17, 2020

Valuation of Supply in case of lottery run by the state government

GST vide Notification No. 08/2020 dated 2nd March 2020 determines the value of supply of a lottery shall be deemed to be 100/128 of the face value of the ticket or of the price as notified in the Official Gazette by the Organising State, whichever is higher. http://cbic.gov.in/resources//htdocs-cbec/gst/notfctn-08-central-tax-english-2020.pdf .....

Oct 17, 2020

Implementation of Indian Accounting Standards to Non-Banking Financial Companies(NBFCs)

RBI vide notification no. RBI/2019-20/170 dated March 12, 2020, it has been issued that NBFCs are required to comply with Indian Accounting Standards (Ind AS) for the preparation of their financial statements. To promote high quality and consistent implementation as well as facilitate comparison and better supervision, the RBI has framed regulatory guidance on Ind AS given in the Annexure to the Notification which will be applicable on Ind AS implementing NBFCs and Asset Reconstruction Companies (ARCs) for preparation of their financial statements from the financial year 2019-20 onwards. .....

Oct 17, 2020

Limits on exposure to single and group borrowers/parties and large exposures and Revision in the target for priority sector lending – Urban Co-operative Banks (UCBs)

RBI vide notification no. RBI/2019-20/171 dated March 13, 2020, it has been decided to reduce concentration risk in the exposures of primary UCBs, and to further strengthen the role of UCBs in promoting financial inclusion, it is proposed to amend certain regulatory guidelines relating to UCBs. Prudential exposure limits: In the Previous Circular, Primary UCBs were permitted to have exposures up to 15 percent and 40 percent of their capital funds to a single borrower and a group of borrowers, respectively.Now, the prudential Exposure limits for UCBs for a single borrower/party and a gro.....

Oct 17, 2020

Income Tax deduction from salaries during FY 2019-20

Income tax vide Circular No. 04/2020 dated 16th January 2020 directed that there is no requirement of deduction of tax for employees who are having an estimated salary income after considering the value of perquisites of Rs. 2,50,000/-(<60 years) or Rs. 3,00,000/-(60 to 80 years) or Rs.5,00,000/-(>80 years). This corrigendum to the above circular clarifies it as the estimated salary income including the value of perquisites is taxable after giving effect to the exemptions, deductions, and relief as applicable. https://www.incometaxindia.gov.in/communications/circular/corrignedum_cir4.....

Oct 17, 2020

Clarifications on provisions of the Direct tax Vivad Se Viswas Bill, 2020

Income tax vide Circular No. 7/2020 dated 4th March 2020 provides a FAQ(Frequently Asked Questions) list for a simple understanding of the applicability of vivad se viswas scheme for the existing appeals of taxpayers under several authorities and also many other questions regarding the scheme. Follow the link for the whole circular. https://www.incometaxindia.gov.in/communications/circular/circular_no_7_2020.pdf .....

Oct 17, 2020

Condonation of delay in filing Return of Income by the Charitable Institutions

Income tax vide Circular No. 06/2020 the CBDT has decided that the Commissioners of income tax are authorized to accept the condonation of delay in filing Return of Income for the A.Ys 2016-17, 2017-18 and 2018-19 by the Charitable Institutions. https://www.incometaxindia.gov.in/communications/circular/circular_no_6_2020.pdf .....

Oct 17, 2020

SEBI launches mobile application for lodging investor grievances

SEBI vide Press Release No. 14/2020 dated 05th March 2020 announces that it launches a mobile application for the convenience of investors to lodge their grievances in  SEBI Complaints Redress System (SCORES). This is to reduce the sending letters to SEBI in physical mode. It states, The  Mobile Application has all the features of  SCORES  which is presently available electronically where investors have to lodge their complaints by using the internet mediums. After mandatory registration on the mobile application,  for each  grievance lodged,  investors  will  get  an acknowledge.....

Oct 17, 2020

Amendments to guidelines for the rights issue, preferential issue and institutional placement of units by an InvIT ( infrastructure Investment Trus) & Real Estate Investment Trust (REIT)

SEBI vide circular No’s. SEBI/HO/DDHS/DDHS/CIR/P/2020/35 & 36 dated 13th March,2020 it has issued amendments to guidelines for the rights issue and Preferential issue and Institutional placement of units by a listed InvIT/REIT https://www.sebi.gov.in/legal/circulars/mar-2020/amendments-to-guidelines-for-rights-issue-preferential-issue-and-institutional-placement-of-units-by-a-listed-invit_46311.html .....

Oct 17, 2020

Clarification to Operating Guidelines for Investment Advisers in International Financial Services Centre (IFSC)

SEBI vide circular No. SEBI/HO/IMD/DF1/CIR/P/2020/31 dated 28th February 2020, it has been decided that   for  currency futures  and options contracts involving Indian Rupee (with settlement in foreign currency), the position limits for eligible market participants, per currency pair per stock exchange, shall be as follows: Trading Members (positions on a proprietary basis as well as clients’ position) - Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher.Institutional Investors - Gross.....

Oct 17, 2020

Filing of forms to the registrar by the Insolvency Professional (Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator appointed under Insolvency Bankruptcy Code, 2016 (IBC, 2016).

MCA vide General Circular No. dated 6th Marche 2020 issued clarifications for statutory compliances in respect of companies under corporate Insolvency Resolution Process (CIRP) which are as below, The IRP/RP/Liquidator would have to first file the NCLT order approving him as the IRP/ RP/ Liquidator in Form INC-28.The Master Data for change in the status of the company from "Active"/ "inactive" to CIRP/ Liquidation or CIRP/Liquidation to "Active" shall be effected on the basis of Formal Change Request Form submitted by IBBI to e-governance Cell, MCA(HQ).The IRP/ RP/ Liquidator shall be resp.....

Oct 17, 2020

Where assessee's application as to whether it was liable to pay tax on buy-back of shares under section 115-O was pending before AAR, impugned communication addressed by department treating assessee to be 'assessee-in-default' on account of non-payment of tax was to be treated as show-cause notice and, thus, the matter was to be remanded back for disposal on merits

Vide Decision of Supreme court of India in Cognizant Technology Solutions India (P.) Ltd. Vs. Deputy Commissioner of Income Tax Facts of the case: The department addressed a communication to assessee that payments made to shareholders, under the purchase of shares through a scheme of 'arrangement and compromise' was dividend within the meaning of section 2(22)(d)/2(22)(a), requiring it to remit tax to the Government account under section 115-O.Since the company failed to remit the taxes within the stipulated period, the company was 'deemed to be an assessee-in-default', under section 11.....

Oct 17, 2020

Where charge over the property was created much prior to the issuance of the recovery notice under Rule 2 of Schedule II to the Income-tax Act, it would remain valid through the sale of the property was conducted after issuance of attachment order by tax recovery officer.

Vide decision of Supreme court of India in Connectwell Industries (P.) Ltd. Vs Union of India Facts of the case: The Appellant filed the Writ Petition in the High Court of Judicature at Bombay seeking a restraint order against the Tax Recovery Officer for enforcing the attachment made under the Income Tax Act, 1961 for recovery of the dues. The Writ Petition was dismissed by the High court, aggrieved by which the Appeal has been filed.Biowin Pharma India Ltd. (BPIL) - herein obtained a loan from the Union Bank of India. Property (land along with Plant and Machinery, building) was mortga.....

Oct 17, 2020

Exempting Foreign Airlines from furnishing reconciliation statement in FORM GSTR – 9C

GST vide Notification No. 09/2020 dated 17th March 2020 determines that the foreign companies in the airline business shall not be required to furnish GSTR-9C. Provided that a statement of receipts and payments for the financial year in respect of its Indian Business operations, duly authenticated by a practicing Chartered Accountant in India or a firm or a Limited Liability Partnership of practicing Chartered Accountants in India is submitted for each GSTIN by the 30th September of the year succeeding the financial year. https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-09-centr.....

Oct 17, 2020

special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016

GST vide Notification Nos. 11/2020 & 39/2020 dated 21st March 2020 & 5th May respectively notifies that those registered persons, who are corporate debtors under the provisions of the insolvency bankruptcy code, 2016 undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by interim resolution professionals (IRP) or resolution professionals (RP), as the class of persons who shall follow the following special procedure from the date of the appointment of IRP/RP till the period they undergo the corporate insolvency resolution proce.....

Oct 17, 2020

Covid-19 regulatory package

RBI vide notification Nos. RBI/2019-20/186 dated 27 March 2020 regulatory measures were announced to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses. The details Instructions were given regarding (i) Reschedulement of payments – Term Loans and Working Capital limits, (ii) Easing of working capital financing, (iii) Classification as Special Mention Account (SMA) and Non-performing Asset (NPA) and (iv) other conditions. Complete details relief packages can be read through the below link. .....

Oct 17, 2020

Investment by Foreign portfolio investors (FPI): Investment limits

RBI vide notification Nos. RBI/2019-20/199 & RBI/2019-20/214 dated March 30, 2020 & April 15 respectively, issues directions to the Authorised Directory category-1 banks regarding investment limits for FY 2020-21 by FPIs in debt instruments. Investment Limits for FY 2020-21: The limit for FPI investment in corporate bonds is increased to 15% of outstanding stock for FY 2020-21. Accordingly the revised limits for FPI investment in corporate bonds are as follows: Particulars Rs. in Crores Current FPI Limit 3,17,000 Revised for HY Apr 2020 – sep 202.....

Oct 17, 2020

Doorstep banking services for senior citizens and differently-abled persons

RBI vide notification no. RBI/2019-20/203 dated March 31, 2020, it has been advised to incorporate the following aspects in their board-approved policy for doorstep banking services for senior citizens and differently-abled persons, Banks shall offer the doorstep banking services on a pan India basis. Banks should develop a Board approved framework for determining the nature of branches/centers where these services will be provided mandatorily and those where it will be provided on a best effort basis and make the policy public. The list of branches offering such doorstep banking services .....

Oct 17, 2020

Export of goods and services – Realisation and repatriation of Export proceeds- relaxation.

RBI vide notification no. RBI/2019-20/206 dated April 01, 2020, it has been decided that to increase the present period of realization and repatriation to India of the amount representing the full export value of goods or software or services exported, from nine months to fifteen months from the date of export, for the exports made up to or on July 31, 2020. Provisions in regard to the period of realization and repatriation to India of the full export value of goods exported to warehouses established outside India remain unchanged. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=1.....

Oct 17, 2020

Declaration of Dividend by banks

RBI vide notification no. RBI/2019-20/218 dated April 17, 2020, considering the uncertainty caused by COVID-19 which requires banks to conserve capital to retain their capacity to support the economy and absorb losses, it has been decided that all banks shall not make any further dividend payouts from the profits pertaining to the financial year ended March 31, 2020, until further instructions. This restriction shall be reassessed by the Reserve Bank based on the financial results of banks for the quarter ending September 30, 2020. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11.....

Oct 17, 2020

Import of goods and services – Extension of time limits for settlement of Import payment.

RBI vide notification no. RBI/2019-20/242 dated May 22, 2020, it has been decided to extend the time period for completion of remittances against such normal imports (except in cases where amounts are withheld towards the guarantee of performance, etc.) from six months to twelve months from the date of shipment for such imports made on or before July 31, 2020. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11900&Mode=0 .....

Oct 17, 2020

Electronic Cards for Overdraft Accounts

RBI vide notification no. RBI/2019-20/225 dated April 23, 2020, it has been decided to permit banks to issue electronic cards to natural persons having Overdraft Accounts that are only in the nature of personal loan without any specific end-use restrictions. The card shall be issued for a period not exceeding the validity of the facility and shall also be subject to the usual rights of the banks as lenders. The electronic card for Overdraft Accounts in the nature of personal loans shall be allowed to be used for domestic transactions only. Further, adequate checks and balances shall be put.....

Oct 17, 2020

Clarification of option under section 115BAC of the income tax act, 1961

Income tax vide Circular No. C1/2020 dated 13th April 2020 issues clarifications raised regarding exercising of Section 115BAC of the income tax act, 1961. Section 115BAC of the income tax act, 1961 provides that a person, being an individual or a Hindu undivided family having income other than income from business or profession, may exercise an option in respect of a previous year to be taxed under the said section 115BAC for each year at the concessional rate provided under section 115BAC of the Act is subject to the condition that the total income shall be computed without specified.....

Oct 17, 2020

Abeyance of certain clauses in Form-3CD (tax audit report).

Income tax vide Circular No. 10/2020 dated 24th April 2020 it has been decided that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till 31st March 2021. Clause 30C of Tax Audit Report deals with the impermissible avoidance arrangements entered by the assessee during the previous year. Clause 44 of the Tax Audit Report deals with the Break-up of the total expenditure of entities registered or not registered under the GST. https://www.incometaxindia.gov.in/communications/circular/circular_no_10_2020.pdf .....

Oct 17, 2020

Clarification in respect of residency under section 6 of the Income-tax Act, 1961.

Income tax vide Circular No. 11/2020 dated 8th May 2020 the CBDT has decided that the for the purpose of determining the residential status under section 6 of the Act during the previous year 2019-20 in respect of an individual who has come to India on a visit before 22nd March 2020 and: has been unable to leave India on or before 31st March 2020, his period of stay in India from 22nd March 2020 to 31st March, 2020 shall not be taken into account, orhas been quarantined in India on account of Novel Corona Virus (Covid-19) on or after 1st March 2020 and has departed on an evacuation flight .....

Oct 17, 2020

Clarification in respect of prescribed electronic modes under section 269SU of the income tax act, 1961.

Income tax vide Circular No. 12/2020 dated 20th May 2020 it is hereby clarified that the provisions of section 269SU of the Act shall not be applicable to a specified person having only B2B transactions (i.e. no transaction with retail customer/consumer) if at least 95% of the aggregate of all amounts received during the previous year, including the amount received for sales, turnover or gross receipts, are by any mode other than cash. Section 269SU section requires every person carrying on business and having sales/turnover/gross receipts from the business of more than Rs 50 Crores ("specifi.....

Oct 17, 2020

Relaxation from compliance to REITS and InvITs due to the CoVID-19 virus Pandemic

SEBI vide circular No’s. SEBI/HO/DDHS/DDHS/CIR/P/2020/42 dated 23rd March 2020 it has been decided to extend the due date for regulatory filings and compliances for REIT and InvIT for the period ending March 31, 2020, by one month over and above the timelines. https://www.sebi.gov.in/legal/circulars/mar-2020/relaxation-from-compliance-to-reits-and-invits-due-to-the-covid-19-virus-pandemic_46398.html .....

Oct 17, 2020

Investment by the sponsor or Asset Management company in the scheme

SEBI vide circular No. SEBI/HO/IMD/DF4/CIR/P/2020/100 dated 12th June 2020, it has been decided that the sponsor or asset management company is required to invest not less than one percent of the amount which would be raised in the new fund offer or fifty lakh rupees, whichever is less in such option of the scheme, as may be specified by the Board. It has also been decided that the above-referred investment shall be made in the growth option of the scheme.  For such schemes where the growth option is not available the investment shall be made in the dividend reinvestment option of the scheme.....

Oct 17, 2020

Participation of mutual Funds in commodity derivatives market in India

SEBI vide circular No. SEBI/HO/IMD/DF2/CIR/P/2020/96 dated 05th June, 2020, it has been decided that No Mutual fund schemes shall invest in physical goods except in ‘gold’ through Gold Exchange Traded Funds (ETFs). However, as mutual fund schemes participating in Exchange Traded Commodity Derivatives (ETCDs) may hold the underlying goods in case of physical settlement of contracts, in that case, mutual funds shall dispose of such goods from the books of the scheme, at the earliest, not exceeding the timeline prescribed below, For Gold and Silver: -  180 days from the date of holdi.....

Oct 17, 2020

Framework for Regulatory Sandbox

SEBI vide circular No. SEBI/HO/MRD-1/CIR/P/2020/95 dated 05th June 2020 it has been decided to introduce a  framework for  “Regulatory  Sandbox”. Through previous circulars dated may 20, 2019 stipulated a framework for an industry-wide Innovation  Sandbox, whereby FinTech startups and entities not regulated by SEBI  were permitted to use the  Innovation Sandbox for offline testing of their proposed solution. Further, this circular SEBI  now has decided to introduce a  framework for  “Regulatory  Sandbox”. Under this sandbox framework,  entities regulated by  SEBI  s.....

Oct 17, 2020

Clarification on the spending of Corporate Social Responsibility (CSR) Funds for COVID-19

MCA vide General Circular No. 10/2020 dated 23rd March 2020 is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR Activity. Funds may be spent on various activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII relating to the promotion of health care, including preventive health care and sanitation, and, disaster management. https://companylaw.taxmann.com/circulars-notifications.aspx?t=qs .....

Oct 17, 2020

Special measure under Companies Act, 2013 and Limited Liability Partnership Act, 2008 in view of COVID-19 breakout

MCA vide General Circular No. 11/2020 dated 24th March 2020, it has been decided to reduce their compliance burden and other risks. Reliefs given were as follows: No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement, etc., required to be filed in the MCA-21 Registry, irrespective of its due date.The mandatory requirement of Board meetings of the companies within the intervals provided in the Companies Act, 2013 (120 days) stands extended by a period of 60 days till the next tw.....

Oct 17, 2020

Clarification on contribution to PM-CARES Funds as eligible CSR Activity

MCA vide office memorandum F No. CSR-05/1/2020-CSR-MCA dated 28th March 2020, has been clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013. https://companylaw.taxmann.com/circulars-notifications.aspx?t=qs .....

Oct 17, 2020

Where State Government undertaking is engaged in wholesale and retail trade of beverages within State, levy of Gallonage Fee, Licence Fee and Shop Rental (kist) with respect to FL-9 licences granted with respect to wholesale of foreign liquor will clearly fall within purview of Section 40(a)(iib) and, hence, amount paid in this regard is liable to be disallowed while similar amounts paid with respect to FL-1 licences granted with respect to retail business in foreign liquor is not an exclusive levy on appellant and, hence, not liable to be disallowed; Surcharge on sales tax and turnover tax is not a 'fee or charge' coming within scope of Section 40(a)(iib) and is not an amount which can be disallowed under said provision

Vide Decision of High court of Kerala in Kerala State Beverages (Manufacturing and Marketing) Corporation Limited Vs. Assistant Commissioner of Income Tax. Facts of the case: Appellant is a company registered under the Companies Act, engaged in wholesale and retail trade of beaverages within the State of Kerala, and is a 'State Government Undertaking' falling within the 'Explanation' provided under section 40(a)(iib) of the Income Tax Act, 1961.It is engaged in wholesale and retail trade of beverages within State of Kerala - Assessee is holding FL-1 Licence with respect to sale of forei.....

Oct 17, 2020

The assessing officer or the appellate authority while exercising the power of appeal or stay of the assessment proceedings under section 226 of the Income Act 1961 are enjoined obligation to give regard and respect to the directions of the Hon’ble High Court. In other words, it would not be necessary that the payment of 20% can be dispensed with only if there is an order of the high court.

Vide decision of High Court of Kerala in Aranattukara Oriental Service Co-Operative Bank Ltd. Vs Commissioner of Income Tax Facts of the case: Petitioner is a primary Co-operative Agricultural Credit Society registered under the Kerala Co-operative Societies Act. Petitioner is an assessee on the file of the Commissioner of Income tax. While so, the Commissioner issued a notice under Section 156 of the Income tax Act pertaining to the assessment year 2017-18.Aggrieved by the assessment order petitioner preferred appeal before the Income tax Officer along with a stay application. It is su.....

Oct 17, 2020

Where during Income-tax search and seizure proceedings, Assessing Officer stumbled upon contraband substance, it did not amount to seizure under Narcotic Drugs and Psychotropic Substances Act, 1985 and thus it could not be that search and seizure operation by officer was not empowered or authorized under NDPS Act and was without mandate of law

Vide decision of High Court of Bombay in Ananth Vardhan Pathak Vs Union of India Facts of the case:  On 7-1-2014, a search and seizure operation was conducted by Income Tax Department at a particular room in Taj Palace Hotel, Mumbai in connection with affairs of Yash Birla Group Companies. Applicant, who was President of Corporate Affairs of said group was found in said room along with co-accused.In course of said search and seizure operation, the co-accused was found in possession of eight small self-knotted transparent polythene pouches containing white powdery substance kept in .....

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