Chartered Accountants in India, Financial Advisory Services, Tax Consultant| Raju and Prasad

Oct 16, 2018

Monthly report of FPI registration on SEBI’s website

The Securities Exchange Board of India(SEBI) Vide its Circular No SEBI/HO/FPIC/CIR/P/2018/135 dated 10th October 2018 has decided that – For the purpose of ensuring transparency in processing of applications for FPI(Foreign Portfolio Investors) registration, the average time taken by the DDP(Deisgnated Depository Participant) shall be disseminated on SEBI’s website on a monthly basis.   https://www.sebi.gov.in/legal/circulars/oct-2018/monthly-report-of-fpi-registration-on-sebi-s-website_40694.html <!-- /wp.....

Oct 16, 2018

Participation of Eligible Foreign Entities (EFEs)in the commodity derivatives market

Currently, foreign entities are not permitted to directly participate in the Indian commodity derivatives market, even if they import/export various commodities from/to India. It has been decided to permit foreign entities having actual exposure to Indian commodity markets, to participate in the commodity derivative segment of recognized stock exchanges for hedging their exposure. Such foreign entities shall be known as “Eligible Foreign Entities” (EFEs). Criteria for Eligible Foreign Entity:   <ol><li>.....

Oct 16, 2018

Extension of due date of furnishing ITRs and Tax Audit Reports of AY 2018-19

The Central Board of Direct Taxes vide its Order under Section 119 of the Act dated 24th September, 2018 has extended the due date for filing of Income Tax Returns & Tax Audit reports till 15th October 2018. However, liability to pay interest under Section 234A remains. Further, pursuant to the order of Bombay High Court in case of Rajasthan Tax Consultants Association v. Union Of India, the due date has been further extended till 30th October 2018 vide Order dated 8th October 2018. 1.https://www.incometaxindiaefilin.....

Oct 16, 2018

Amendments made in Schedule III(Preparation of Financial Statements) of Companies Act, 2013

The Ministry of Corporate affairs vide Notification dated 11/10/2018 has made amendments in Schedule III of the said Act. Key changes are as follows:   <ol><li>Loan receivables have been classified further. </li><li>Description of purpose of each reserve has been specified. </li><li>Names of headings of Fixed Assets and Securities Premium Reserve have been modified. </li><li>MSME Disclosures and further classification of Receivables & Payables in IND AS Compliant Financials. </li><li>Division III has been.....

Oct 16, 2018

Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and Aoc-4 (Financial statement) under the Companies Act, 2013- State of Kerala

The Ministry of Corporate affairs vide Circular No. 09/2018 dated 5th October 2018 has decided to relax the additional fees payable by companies having registered office in the State of Kerala on e-forms AOC-4, AOC (CFS) AOC-4 XBRL and e-Form MGT-7 upto 31.12.2018, wherever additional fee is applicable.   http://www.mca.gov.in/Ministry/pdf/GeneralCircularKerala_05102018.pdf .....

Oct 16, 2018

External Commercial Borrowings (ECB) Policy – Liberalisation

Reserve Bank Of India vide Cirulcar RBI/2018-2019/54 A.P. (DIR Series) Circular No.10 dated 3rd October 2018 has liberalized the norms relating to External Commercial Borrowings. As per the present norms, ECB up to USD 50 million or its equivalent can be raised by eligible borrowers with minimum average maturity period of 3 years. It has been decided to allow eligible ECB borrowers who are into manufacturing sector to raise ECB up to USD 50 million or its equivalent with minimum average maturity period of 1 year.   <br.....

Oct 16, 2018

Completed Assessment reopened on the ground that certain transactions were not disclosed during the original assessment - Vide Decision of High Court of Madras in Sun Direct TV Pvt. Ltd. V. Assistant Commissioner of Income-tax, Chennai

Facts of the case:   <ol><li>Completed assessments were sought to be reopened by the revenue after a lapse of six years on ground that there were some materials on record and informations that assessee had received money from company SAEHL in name of share subscription along with share premium of Rs.203.98 crores.</li><li>Assessee has also allotted shares to Kalanithi Maran and his wife only at Rs.10 per share without any premium.</li><li>Revenue contended that the Share premium invested by SA.....

Oct 16, 2018

Judgements relating to linking of Aadhar

The Honorable Supreme Court Of India vide Justice K.S. Puttaswamy (RETD.) V. Union of India has held the following – Aadhaar Constitutionally valid - The Aadhaar Act serves legitimate State interest and good governance to ensure fruits of welfare schemes reach to unprivileged and marginalized section of the society by preventing leakages, pilferages and corruption in the implementation of welfare schemes. It does not violate right to privacy, nor is it unconstitutional.   Aadhaar for students n.....

Oct 16, 2018

Where it was alleged that Rule 89(5) of CGST Rules, 2017, as amended vide Notification Nos. 21/2018-CT and 26/2018-CT, denies grant of refund of unutilized tax credit in respect of tax paid on input services which is ultra vires to Constitution as well as CGST Act, 2017 and demand notice was to be stayed - Decision of High Court Of Gujarat in Shree Rama Newsprint Ltd. V. Union of India

Facts of the case : The assessee has challenged the validity of Section 89(5) as amended by notifications issued later on the following grounds:   Section 54(3) of the CGST Act, 2017 – A registered person may claim refund of any unutilised input tax credit at the end of any tax period : Provided that no refund of unutilised input tax credit shall be allowed in cases other than –   i. zero-rated supplies made without payment of tax; ii.....

Oct 16, 2018

No levy of Service Tax/GST on the fee paid for award of license for sale of liquor - Vide Decision Of High Court Of Punjab And Haryana in Rajwinder Singh V. Commissioner, CGST Commissionerate, Jalandhar

Facts of the Case: The petitioner(Rajwinder Singh) has received notices dated 29.05.2017, 14.07.2017 and 11.01.2018 asking him to furnish certain information with reference to levy of service tax on the fee paid for award of license for sale of liquor.   The respondent(CGST Commissionerate,Jalandhar) fairly submitted that he has received instructions to the State that in 26th meeting of GST Council held on 10.03.2018 it has been decided that no GST/Service Tax is leviable on the fee paid for grant of l.....

Nov 17, 2018

Filing of Form GSTR 10 – Final Return

The Central Board of Indirect Taxes and Customs Vide Notification No 58/2018 – Central Tax dated 26th October 2018 has notified that the persons whose GST registration has been cancelled on the recommendation of the GST council by the proper officer on or before 30th September 2018 are required to file final return in Form GSTR 10 on or before 31st December 2018.   http://www.cbic.gov.in/resources//htdocscbec/gst/notfctn-58-central-tax-english2018.pdf;jsessionid=9F370905AB5904138E6C F6AADB241520 <!-- /wp:parag.....

Nov 17, 2018

Provisions relating to TDS not applicable to supply from PSU to PSU

The Central Board of Indirect Taxes and Customs Vide Notification No 61/2018 – Central Tax dated 5th November 2018 has notified seeks to exempt a supply from one PSU to another from the provisions of TDS under GST.   http://www.cbic.gov.in/resources//htdocscbec/gst/notfctn-61-central-tax-english2018.pdf;jsessionid=F7CDBFE56BBEEE1F69C5 F3BEC0999AF4 .....

Nov 17, 2018

Circular clarifying collection of tax at source by Tea Board of India

The Central Board of Indirect Taxes and Customs Vide Circular No 74/48/2018 –GST dated 5th November 2018 has clarified that TCS at the notified rate, shall be collected by Tea Board respectively from the –   (i) sellers (i.e. tea producers) on the net value of supply of goods i.e. tea; and (ii) auctioneers on the net value of supply of services (i.e. brokerage).   http://www.cbic.gov.in/resources//htdocscbec/gst/Circular-No74.pdf;jsessionid=7521F478BB2304FADE2AA.....

Nov 17, 2018

Streamlining the Process of Public Issue of Equity Shares and convertibles

The Securities Exchange Board of India(SEBI) Vide its Circular No SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated 1st November 2018 has decided to introduce the use of Unified Payments Interface (UPI) as a payment mechanism with Application Supported by Block Amount (ASBA) for applications in public issues by retail individual investors through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants). The proposed process would increase efficiency, eliminate the need for manual intervention at various stages, and wil.....

Nov 17, 2018

Online application for grant of lower deduction of TDS certificate

The Central Board of Direct Taxes vide Notification No. 74/2018 dated 25th October, 2018 has notified that the application for grant of lower deduction of TDS certificate can now be furnished online and The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be   - shall lay down procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents and   - shal.....

Nov 17, 2018

Payments Bank and Small Finance Banks – access to Call /Notice/Term Money Market

Reserve Bank Of India vide its Circular No. RBI/2018-19/68 has clarified that Payments Banks and Small Finance Banks are eligible to participate in the Call/Notice/Term money market both as borrowers and lenders. Such eligibility is valid even prior to the completion of the process to get themselves included in the Second Schedule of Reserve Bank of India Act, 1934. The prudential limits and other guidelines on Call money market for Payments Banks and Small Finance Banks will be the same as those applicable to Scheduled Commercial Banks in terms of the Master Directio.....

Nov 17, 2018

The encashed bank guarantee and the amount paid as penalty on account of assessee's failure to perform its part of the agreement are allowable as a deduction under Section 37(1) - Decision of High Court of Delhi in Principal Commissioner of Income Tax-4 v. Green Delhi BQS Ltd.

Facts of the case:   1. The assessee was engaged in the business of developing, maintaining and operating of Bus-Q-Shelters (BQS), metro stations etc. It entered into an agreement with the Delhi Transport Corporation (DTC) for setting up bus shelters on build, operate and transfer basis.   2. The assessee had also furnished bank guarantee of Rs. 2 crores to DTC as performance security. On DTC invoking bank guarantee, the assessee had approached the H.....

Nov 17, 2018

Where in order to determine admissibility of assessee's claim under section 10B, date of commencement of manufacture could be ascertained from certificate of registration by competent authority, mere wrong mentioning of said date in Form No. 56G filed in support of claim of deduction, could not be a ground to reopen assessment - Decision of High Court of Madras in MBI Kits International v. Income Tax Officer, Non-Corporate Word1(3), Chennai

Facts of the case:   1. The assessee was formed with an object to carry on the business of manufacturing and testing chemicals. The Madras Export Processing Zone and The Government of India, Ministry of Commerce granted permission to it to carry on the business of manufacturing of test kits used for checking iodized salt.   2. Later, the assessee filed its return of income for assessment year 2010-11, claiming deduction under section 10B. <!-- /.....

Nov 17, 2018

Where DRAT's (Debt Recovery Appellate Tribunal) direction to make pre-deposit was not complied with despite petitioner having sufficient economic activities in foreign country and he did neither disclose foreign assets nor appeared before Court, his writ petitions against order of pre-deposit or for extension of time were to be dismissed - Decision of High Court of Karnataka in Dr. Vijay Mallya v. State Bank of India

Facts of the case:   1. The respondent No. 13 - Kingfisher Airlines had availed Working Capital and Term Loan Facilities from the Consortium of banks in the year 2005. The said loans were later restructured. In relation to aforesaid loans, the respondent No. 14- United Breweries (Holdings) Ltd. provided a Corporate Guarantee and the petitioner-Vijay Mallya furnished his personal guarantee.   2. The borrower ‘Kingfisher’ committed default in repay.....

Dec 16, 2018

Extension of due date for filing Form GSTR-9, GSTR-9A, GSTR-9C

The Central Board of Indirect Taxes and Customs Vide Press Release dated 7th December 2018 has decided to extend the due date for filing FORM GSTR-9, FORM GSTR-9A (Annual Returns) and FORM GSTR-9C (Reconciliation statement) till 31st March, 2019.   http://cbic.gov.in/resources//htdocscbec/pressrelease/Press_Release_0712.pdf;jsessionid= 5BE64F15B1F45883BFA021486D1ED66E .....

Dec 16, 2018

Extension of due date for filing of FORM GSTR – 7 for the months of October, 2018 to December, 2018

The Central Board of Indirect Taxes and Customs Vide Notification No 66/2018 – Central Tax dated 29th November 2018 has extended the time limit for furnishing GSTR 7 (i.e. person who is required to deduct tax at source in accordance with the provisions of section 51 of CGST Act) till 31st January 2019.   http://cbic.gov.in/resources//htdocscbec/gst/notfctn-66-central-tax-english2018.pdf .....

Dec 16, 2018

Disclosure of reasons for delay in submission of financial results by listed entities

Regulation 33 of The SEBI Listing Regulations, 2015 specifies that, listed entities shall submit quarterly and annual financial results to stock exchanges within 45/60 days from the end of the quarter/financial year. Wherever there were delays in submission in the past, the fact of delay was intimated by the listed entity, the reasons for the same were not disclosed. Therefore, SEBI Vide its Circular No CIR/CFD/CMD-1/142/2018 dated 19th November 2018 has introduced a new requirement whereby the listed entity shall disclose detailed reasons for such delay to the stock e.....

Dec 16, 2018

Transfer of securities only in demat form- Deadline extended till 1st April, 2019

The SEBI on March 28, 2018 decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialized form with a depository. This measure was to come into effect from December 5, 2018. Subsequently, SEBI has received representations from shareholders for extension of the date of compliance. In view of the same, SEBI vide its Press Release No. 49/2018 dated 03rd December 2018 has extended the deadline for compliance of the aforesaid requirement til.....

Dec 16, 2018

TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens

It has been brought to the notice of CBDT that incase of Senior Citizens, some Banks are making TDS deductions eventhough the amount of income does not exceed fifty thousand rupees. In view of this, The Central Board of Direct Taxes vide Notification No. 06/2018 dated 06th December, 2018 has clarified that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. <!-- /wp.....

Dec 16, 2018

Relaxation on guidelines to NBFCs on securitisation transactions

In order to encourage NBFCs to securitise/assign their eligible assets, Reserve Bank Of India vide its Notification No. RBI/2018-19/82 dated 29th November 2018 has decided to relax the Minimum Holding Period (MHP) requirement for originating NBFCs. MHP in respect of loans of original maturity above 5 years shall be till the receipt of repayment of six monthly instalments or two quarterly instalments, subject to the following requirement:- Minimum Retention Requirement for such securitization / assignment transactions shall be 20% of the book value of loans being securi.....

Dec 16, 2018

Maintenance of Statutory Liquidity Ratio (SLR)

Reserve Bank Of India vide its Notification No. RBI/2018-19/86 dated 05th December 2018 has decided to reduce the Statutory Liquidity Ratio (SLR) requirement of banks by 25 basis points every calendar quarter from 19.50 per cent of their Net Demand and Time Liabilities (NDTL) to (i) 19.25 per cent from January 5, 2019 (ii) 19.00 per cent from April 13, 2019 (iii) 18.75 per cent from July 6, 2019 (iv) 18.50 per cent from October 12, 2019 (v) 18.25 per cent from January 4, 2020 (vi) 18.00 per cent from April 11, 2020.   <p.....

Dec 16, 2018

Where the assessee society was set up with object of imparting education and it had entered into franchise agreements with satellite schools and also used gains arising out of these agreements in form of franchisee fees for furtherance of educational purposes, it fulfilled requirements to qualify for exemption under section 10(23C)(vi) - Decision of Supreme Court of India in Director of Income-tax (Exemptions) v. Delhi Public Schools Society

Facts of the case:   1. Assessee society was set up with main object to establish educational institutions. It had been claiming exemption under section 10(22) since assessment year 1977-78.   2. Inview of substitution of section 10(22) with section 10(23C)(vi) with effect from 1-4-1999, assessee applied for approval of exemption under section 10(23C)(vi) for assessment year 2008-09 onwards.   3. Ad.....

Dec 16, 2018

SLP dismissed against High Court ruling that where, during scrutiny assessment, Assessing Officer raised several queries asking assessee to justify its claim of deduction under section 10B and after considering assessee's detailed reply allowed deduction, he could not reopen assessment to examine another facet of said claim - Decision of Supreme Court Of India in Deputy Commissioner of Income-tax v. Qx Kpo Services (P.) Ltd.

Facts of the case:   1. For Assessment year 2011-12, Assessee filed its return of income after claiming deduction under section 10B.   2. During scrutiny assessment, Assessing Officer had raised several queries asking assessee about its claim of deduction under section 10B.   3. Assessee replied to such queries in detail, upon which Assessing Officer (AO) passed an assessment order under section 143.....

Dec 16, 2018

Where Assistant Commissioner had cancelled registration of assessee on ground that it was not carrying any business and its business was lying closed, since assessee was not served with any show cause notice in proper mode as prescribed under Act and impugned order had been passed only on basis of prima facie opinion, said order was in violation of principles of natural justice and deserved to be set aside - Decision of High Court of Allahabad in Kashi Bartan Bhandar v. State of U.P.

Facts of the case:   1. The Assistant Commissioner by an order dated 27-1-2018 had cancelled the registration of the assessee on the ground that it was not carrying any business and its business was lying closed.   2. On writ petition, the assessee contended that (i) the impugned order was in violation of principles of natural justice as the show cause notice alleged to have been issued on 18-1-2018 was never sent in any proper mode as prescribed und.....

Jan 19, 2019

CAPITAL EXPENDITURE vs REVENUE EXPENDITURE -Ketan K Waghela, ACA(Mumbai Branch)

The line of demarcation between capital and revenue expenditure is very thin and the ultimate conclusion on the nature of the expenditure is always a question of law and fact. There are numerous case laws widening line between these expenses. As the Act does not define the terms, one has to depend on their natural meaning on case to case basis.   Recently, the case law of Flipkart has created strife in the e-commerce industry and investors. However, on appeal, it was decided in favour of Flipkart by Income Tax Appellat.....

Jan 19, 2019

Waiver of late fee payable for delayed filing of FORM GSTR-3B and GSTR 1 for the period July, 2017 to September, 2018 in specified cases

The Central Board of Indirect Taxes and  Customs Vide Notification No 75/2018 and 76/2018 – Central Tax dated 31st December 2018 has waived the late fees payable for delay in filing GSTR 1 and GSTR 3B for the periods July 2017 to September 2018 if the above stated returns are filed after 22nd December 2018 and before 31st March 2019.    <ul><li><a href="http://cbic.gov.in/resources/htdocs-cbec/gst/notfctn-75-central-tax-english-2018.pdf;jsessionid=E269D84579FCDB6E5872AB4721EDDECF">htt.....

Jan 19, 2019

Recommendations made during 31st GST Council Meeting

31st GST Council Meeting was held on 22nd December 2018. Major recommendations made were as follows:   <ol><li>The new return filing system to be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019. </li><li>The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 to be further extended till 30.06.2019. </li><li>The due date for furnishing FORM GSTR-8 by e-co.....

Jan 19, 2019

Extension of due date for furnishing ITC 04 till 31st March, 2019

ITC 04 is required to be filed by a tax payer by giving the details of goods dispatched to or received from job workers. Due date for filing the same is 25th of the month succeeding the quarter. The Central Board Of Indirect Taxes and Customs vide Notification No. 78/2018 – CT dated 31st December 2018 has extended the due date for furninshing ITC – 04 for the periods July 2017 to December 2018 till 31st March 2019.   <a href="http://cbic.gov.in/resources//htdocs-cbec/gst/notfctn-78-.....

Jan 19, 2019

Acceptance of Probate of Will or Will for Transmission of Securities held in dematerialized mode

In terms of SEBI (Listing  Obligations  and  Disclosure Requirements) 2018, probate of will or will has been prescribed as documentary requirement for transmission of securities held in physical mode. With   regard to transmission of securities held in dematerialized mode, the same is dealt in terms of bye laws of the Depositories. In order to harmonize the procedures for transmission of securities in dematerialized mode with that of transmission of securities in physical mode, SEBI vide its Circular No......

Jan 19, 2019

Procedure, format and standards for filing an application for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax under section 197(1)/collection of the tax at any lower rate under 206C(9) TRACES portal

Earlier, Vide Notification No. 74/2018 dated 25-10-2018, Rule 28/37G of the Income-tax Rules, 1962 has been amended to provide for filing an application electronically for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax. On 31-12-2018, The Central Board Of Direct Taxes vide Notification No. 8/2018 has laid down the procedures, formats and standards for grant of such certificate.   <a href="https://www.incometaxindia.gov.in/communications/notification/notification_8_2018_.....

Jan 19, 2019

Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances

With a view to facilitate meaningful restructuring of MSME accounts that have become stressed, Reserve Bank OfIndid vide its Circular No. RBI/2018-19/100 dated 01-01-2019 hasdecided to permit a one-time restructuring of   existing loans to MSMEs classified as ‘standard’ without a downgrade in the asset classification, subject to the following conditions:   <ol><li>The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrow.....

Jan 19, 2019

Where for relevant years scrutiny assessments were pending and likelihood of substantial demands upon assessee after completion of scrutiny cannot be ruled out and any demand that would arise from processing of said assessments would have to be adjusted against refund claims, there was no merit in writ petition claiming for direction to Assessing Officer to expeditiously process said returns and issue refund for these years - Decision of High Court of Delhi in Vodafone Mobile Services Ltd.v. Assistant Commissioner of Income-tax

Facts of the case:   <ol><li>The assessee-company (Vodafone) was engaged in providing telecommunication services.</li><li>Two amalgamations involving merger of certain Vodafone group companies were undertaken to re-structure business operations and increase operational efficiencies. The revised e-returns of income pertaining to assessment year 2014-15 and assessment year 2015-16, were filed claiming refunds of Rs. 1,532.09 crores and Rs. l,355.51 crores, respectively. The return of income pertaining to assessm.....

Jan 19, 2019

SLP dismissed against High Court ruling that where on examination of special audit report, filed after passing of original assessment order, it was found that claims made by under section 80G were prima facie bogus and issue of a reassessment notice on basis of said report was justified - Decision of Supreme Court Of India in Multi Commodity Exchange of India Ltd. v Deputy Commissioner of Income-tax

Facts of the case:   <ol><li>For the Assessment Year 2010-11, the Assessee company's income was assessed under section 143(3).</li><li>Later, in a report of Auditor (after completion of assessment) it was observed that claims made by assessee towards placement fees paid to its subsidiaries, advertisement expenses and donations paid to a charitable trust under section 80G were prima facie bogus.</li><li>The Assessee also could not substantiate their genuineness by providing relevant documents and evidences.</li.....

Jan 19, 2019

No GST exemption on goods and service supply to Duty Free Shops (DFSs) at international Airports in India - Decision of High Court of Madhya Pradesh in Vasu Clothing(P) Ltd. v. Union of India

Facts of the case:   <ol><li>The petitioner is a manufacturer and exporter of garments in India and specializes in manufacturing of highquality products for children with customer base in Middle East, South Africa and USA. He intends to supply goods to Duty Free Shops (DFSs) situated in the duty free area at international airports. The petitioner is aggrieved by the fact that the benefit available to him under the erstwhile central excise regime of removing goods from his factory to DFS located in the internat.....

Feb 01, 2019

Key Highlights of Interim Budget FY 2019-20

<a href="http://www.rajuandprasad.com/lo-admin/drive/Interim%20Budget%20Highlights%20FY%202019-20-Interim%20Budget%20Highlights%20FY%202019-20.pdf">http://www.rajuandprasad.com/lo-admin/drive/Interim%20Budget%20Highlights%20FY%202019-20-Interim%20Budget%20Highlights%20FY%202019-20.pdf</a> .....

Feb 26, 2019

Amendments to take effect under GST from 1st Feb 2019 - Mr. Harsh Vora (Manager, Indirect Taxation - Mumbai Branch)

<ol><li>Upper limit of turnover for opting of composition scheme shall be raised from Rs. 1 Cr to Rs. 1.5 Cr.</li><li>A Composite dealer (in goods) shall be allowed to supply services (other than restaurant services), for a value not exceeding - Higher of 10% of turnover in the preceding financial year, or Rs. 5 lakh.</li><li>The threshold limit of Turnover for exemption from registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand shall be increased to Rs. 20,00,000 from Rs. 10,00,000.</li><li>Tax.....

Feb 26, 2019

Extension of due date for filing Form GSTR 7 for the month of January 2019

GSTR 7 is required to be furnished by a registered person who deducts tax at source under the provisions of section 51 of the CGST Act, 2017. The Central Board of Indirect Taxes and Customs Vide Notification No 08/2019 – Central Tax dated 8th January 2019 has extended the due date for filing GSTR 7 for the periods October 2018 to January 2019 till 28th February 2019.   http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-08-central-tax-english-2019.pdf;jsessionid=233302F5B964CFD46C5D00A5DBF19A2E <!-- /wp.....

Feb 26, 2019

Advance Rulings – GST - Mr. Harsh Vora (Manager, Indirect Taxation - Mumbai Branch)

Introduction: “Advance ruling” means a decision provided by the Authority or, as the case may be, the Appellate Authority to an applicant on matters or on questions specified in section 97(2) or section 100(1), as the case may be, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant – section 95(a) of CGST Act. Application for advance ruling can be made in respect of supply ‘being undertaken’. Thus, a person can apply for advance ruling even in respect of an activity he is already.....

Feb 26, 2019

Relaxation from requirement to furnish a copy of PAN for transfer of equity shares of listed entities executed by non-resident

As per SEBI Regulations, 2015, transferee as well as transferor shall furnish a copy of their PAN card to the listed entity for registration of transfer of securities. In order to address the difficulties faced by non-resident investors who donot have PAN, SEBI vide Circular No. SEBI / HO / MIRSD / DOS3 / CIR / P / 2019 / 30 dated 11th February 2019 has decided to grant relaxation to non-residents from the requirement to furnish PAN and permit them to transfer equity shares held by them in listed entities to their immediate relatives subject to the following co.....

Feb 26, 2019

Monetary limits for filing/ withdrawal of Wealth Tax appeals by the Department before ITAT, HCs and SLPs/appeals before SC

Circular No. 3 of 2018 dated 11-07-2018 specifiies the monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/ appeals before Supreme Court. Para 11 of the Circular states that such monetary limits shall not apply to writ matters and Direct tax matters other than Income tax and filing of appeals in such cases shall continue to be governed by relevant provisions of statute and rules. As there is no charge under Wealth Tax Act, 1957 w.e.f 1 st April, 2016, Central Board of Direct Taxes vide Circular N.....

Feb 26, 2019

Credit Flow to Agriculture- Collateral free agricultural loans

Keeping in view the overall inflation and rise in agriculture input cost over the years since 2010, RBI vide Circular No RBI/2018-19/118 dated 07th February 2019 has decided to raise the limit for collateral free agricultural loans from the existing level of ₹1 lakh to ₹1.6 lakh. Accordingly, banks may waive margin requirements for agricultural loans upto ₹1.6 lakh   https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11469&Mode=0 .....

Feb 26, 2019

Harmonisation of different categories of NBFCs

Over a period of time, evolution of the NBFC sector has resulted in several categories of NBFCs intended to focus on specific sector. On a review, it has been decided by RBI vide Notification No. RBI/2018-19/130 dated 22nd February 2019 that for greater operational flexibility, harmonisation of different categories of NBFCs shall be carried out based on the principle of regulation by activity rather than regulation by entity. Accordingly, the three categories of NBFCs viz. Asset Finance Companies (AFC), Loan Companies (LCs) and Investment Companies (ICs) into a new cat.....

Feb 26, 2019

For computing capital gain tax, date of allotment of flat by DDA would be date on which purchaser of flat can be stated to have acquired property - Decision of High Court Of Bombay in Principal Commissioner Of Income Tax-3, Mumbai v. Vembu Vaidyanathan

Facts of the case:   <ol><li>The assessee filed its return of income for the AY 2009-10 and claimed long-term capital gain arising out of capital asset in the nature of a residential unit.</li><li>During the course of assessment, the Assessing Officer came to the conclusion that the gain was a short-term capital gain.</li><li>The assessee argued that the residential unit was acquired on the date on which the allotment letter was issued by the builder which was on 31-12-2004.</li><li>The Assessing Officer howev.....

Feb 26, 2019

Sections 10(34) and 115BBDA are constitutionally valid - Decision of High Court Of Delhi in Rajan Bhatia v. Central Board of Direct Taxes

Facts of the case: The assessee challenged the constitutional validity of proviso to section 10(34) along with provisions of section 115BBDA on grounds that section 115BBDA does not have any 'base', and that the provision makes discrimination between a resident assessee and a non-resident assessee, as the provision only applies to a resident assessee. It was also submitted that the provisions under challenge are arbitrary, ultra vires and violative of article 14.   Judgement:  <!-- wp:list {".....

Feb 26, 2019

Formation of opinion by another Assessing Officer on same set of documents and materials cannot give justifiable ground to Assessing Officer of present assessee to resort to reassessment - Decision of High Court of Bombay in Integra Garments & Textiles Ltd. v. Income Tax officer, Ward 6(3)(2), Mumbai

Facts of the case:   <ol><li>Assessee in its income tax return had shown a receipt of on transfer of leasehold rights in a property in favour of one Morarji Textiles and after claiming indexed cost and other related deductions, offered to tax the capital gain arising out of such transfer.</li><li>During scrutiny, the Assessing Officer did not disturb petitioner's treatment to said receipt.</li><li>Later, Assessing Officer of Morarjee Textiles had held that leasehold rights belong to Morarjee Textiles itself an.....

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Monthly report of FPI registration on SEBI’s website

Participation of Eligible Foreign Entities (EFEs)in the commodity derivatives market

Extension of due date of furnishing ITRs and Tax Audit Reports of AY 2018-19

Amendments made in Schedule III(Preparation of Financial Statements) of Companies Act, 2013

Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and Aoc-4 (Financial statement) under the Companies Act, 2013- State of Kerala

External Commercial Borrowings (ECB) Policy – Liberalisation

Completed Assessment reopened on the ground that certain transactions were not disclosed during the original assessment - Vide Decision of High Court of Madras in Sun Direct TV Pvt. Ltd. V. Assistant Commissioner of Income-tax, Chennai

Judgements relating to linking of Aadhar

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Filing of Form GSTR 10 – Final Return

Provisions relating to TDS not applicable to supply from PSU to PSU

Circular clarifying collection of tax at source by Tea Board of India

Streamlining the Process of Public Issue of Equity Shares and convertibles

Online application for grant of lower deduction of TDS certificate

Payments Bank and Small Finance Banks – access to Call /Notice/Term Money Market

The encashed bank guarantee and the amount paid as penalty on account of assessee's failure to perform its part of the agreement are allowable as a deduction under Section 37(1) - Decision of High Court of Delhi in Principal Commissioner of Income Tax-4 v. Green Delhi BQS Ltd.

Extension of due date for filing Form GSTR-9, GSTR-9A, GSTR-9C

Extension of due date for filing of FORM GSTR – 7 for the months of October, 2018 to December, 2018

Disclosure of reasons for delay in submission of financial results by listed entities

Transfer of securities only in demat form- Deadline extended till 1st April, 2019

TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens

Relaxation on guidelines to NBFCs on securitisation transactions

Maintenance of Statutory Liquidity Ratio (SLR)

CAPITAL EXPENDITURE vs REVENUE EXPENDITURE -Ketan K Waghela, ACA(Mumbai Branch)

Waiver of late fee payable for delayed filing of FORM GSTR-3B and GSTR 1 for the period July, 2017 to September, 2018 in specified cases

Recommendations made during 31st GST Council Meeting

Extension of due date for furnishing ITC 04 till 31st March, 2019

Acceptance of Probate of Will or Will for Transmission of Securities held in dematerialized mode

Procedure, format and standards for filing an application for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax under section 197(1)/collection of the tax at any lower rate under 206C(9) TRACES portal

Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances

No GST exemption on goods and service supply to Duty Free Shops (DFSs) at international Airports in India - Decision of High Court of Madhya Pradesh in Vasu Clothing(P) Ltd. v. Union of India

Key Highlights of Interim Budget FY 2019-20

Amendments to take effect under GST from 1st Feb 2019 - Mr. Harsh Vora (Manager, Indirect Taxation - Mumbai Branch)

Extension of due date for filing Form GSTR 7 for the month of January 2019

Advance Rulings – GST - Mr. Harsh Vora (Manager, Indirect Taxation - Mumbai Branch)

Relaxation from requirement to furnish a copy of PAN for transfer of equity shares of listed entities executed by non-resident

Monetary limits for filing/ withdrawal of Wealth Tax appeals by the Department before ITAT, HCs and SLPs/appeals before SC

Credit Flow to Agriculture- Collateral free agricultural loans

Harmonisation of different categories of NBFCs

For computing capital gain tax, date of allotment of flat by DDA would be date on which purchaser of flat can be stated to have acquired property - Decision of High Court Of Bombay in Principal Commissioner Of Income Tax-3, Mumbai v. Vembu Vaidyanathan

Sections 10(34) and 115BBDA are constitutionally valid - Decision of High Court Of Delhi in Rajan Bhatia v. Central Board of Direct Taxes