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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.....

Mar 18, 2019

Increase in threshold limit of aggregate turnover for availing Composition Scheme u/s 10 of the CGST Act, 2017

The Central Board of Indirect Taxes and Customs Vide Notification No 14/2019 – Central Tax dated 07th March 2019 has increased the threshold limit of aggregate turnover to opt for composition scheme from 1 Crore to 1.5 Crores.   <a href="http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-14-central-tax-english-2019.pdf;jsessionid=7A6BD4ADAEB327BC9D6401EBAFA17229">http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-14-central-tax-english-2019.pdf;jsessionid=7A6BD4ADAEB327BC9D6401EBAFA17229</a> <!-- /w.....

Mar 18, 2019

Nature of Supply of Priority Sector Lending Certificates (PSLC)

Earlier, Notification No. 11/2018-Central Tax (Rate) dated 28.05.2018 was issued to levy GST on trading of PSLC (Priority Sector Lending Certificates) on reverse charge basis from 28.05.2018 onwards to be paid by the buyer bank.The Central Board Of Indirect Taxes and Customs vide Circular No. 93/12/2019 - GST has clarified that nature of supply of PSLC between banks may be treated as an inter-state supply of goods. Accordingly, IGST shall be payable on the supply of PSLC traded over e-Kuber portal of RBI for both periods i.e 01.07.2017 to 27.05.2018 and from 28.05......

Mar 18, 2019

Discontinuation of printing of Advance Authorisations / Export Promotion Capital Goods (EPCG) Authorisations on security paper by DGFT for authorisations issued with EDI ports as port of registration

In order to enhance the ease of doing business for exporters, DGFT vide Circular No. 07/2019 dated 21st February 2019 has decided to discontinue the issuance of Advance/EPCG Authorisations on security paper as was the practice so far. This shall come into effect for authorisations issued from 01.03.2019 onwards for cases where the port of registration is an EDI port. Advance/EPCG Authorisations shall continue to be transmitted electronically by DGFT to the Customs server. The details of the said authorisations would be visible in ICES to all officers involved in import.....

Mar 18, 2019

Revision in Haircut on Central Government Securities accepted as Collateral

Based on the feedback received from the Clearing Corporations and the recommendations of the Risk Management Review Committee of SEBI, SEBI vide Circular No. SEBI/HO/MRD/DRMNP/CIR/P/2019/33 dated 21st February 2019 has decided to revise the minimum haircuts applicable to the Central Government securities deposited by clearing members. The revised haircuts are as follows:   The classification of the Government of India Dated Securities, as above, shall be reviewed on 15th of every month. The revision in classification, .....

Mar 18, 2019

Re-categorization of IDBI Bank Ltd. as a Private Sector Bank

Reserve Bank Of India vide its Presss Release dated 14th March 2019 has categorized IDBI Bank Limited as a ‘Private Sector Bank’ for regulatory purposes with effect from January 21, 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.   <a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=46552">https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=46552</a> .....

Mar 18, 2019

Interest Subvention Scheme for Short Term Crop Loans during the years 2018-19 and 2019-20

Reserve Bank of India vide Notification No RBI/2018-19/137 dated 07th March 2019 has announced that the Government of India has approved the implementation of the Interest Subvention Scheme with modifications for the years 2018-19 and 2019-20 for short term crop loans up to Rs. 3 lakh with the following stipulations:  To provide short-term crop loans upto Rs. 3 lakh to farmers at an interest rate of 7% p.a. during the years 2018-19 and 2019-20, interest subvention of 2% p.a. will be provided to Public Sector Banks (PSBs) and Private Sector Commercial Banks. .....

Mar 18, 2019

Notified provisions of 56(2)(viib)

Section 56(2)(viib) lays down that where a private limited company receives any consideration from any person being a resident, for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable to tax under the head Income from Other Sources. This clause shall not apply where the consideration for issue of shares is received - by a venture capital undertaking from a venture capital company or a venture capital fund; or by a company from a class or class.....

Mar 18, 2019

Where there was failure of assessee to establish credit worthiness of investor companies, Assessing Officer was justified in passing assessment order making additions under section 68 for share capital / premium received by assessee company - Vide decision of Supreme Court of India in Principal Commissioner of Income-tax v. NRA Iron & Steel (P.) Ltd.

Section 68 of the Income Tax Act, 1961: Where any sum is found credited in the books of an assessee and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer, the sum so credited may be charged to income-tax as the income of the assessee. Provided that where the assessee is private limited company and the sum so credited consists of share application money, share capital, share premium, any explanation offered by such assessee-company shall be deemed to.....

Mar 18, 2019

SLP dismissed against High Court ruling that where assessee educational society had utilised its income for purchase of land for further extension of school building, which was for educational purpose only, exemption under section 10(23C)(vi) could not be denied - Vide decision of Supreme Court Of India in Commissioner of Income-tax (Exemption) v. Managing Committee, Arya High School, Punjab

Facts of the case:   <ol><li>The Assessee educational society filed an application for grant of registration under section 10(23C)(vi).</li><li>Commissioner (Exemptions) denied same on ground that there was no evidence that assessee had utilised its income for educational purpose.</li><li>The assessee further appealed to the Income Tax Appellate Tribunal. The Tribunal after examining records found that during relevant assessment year, assessee had utilised its income for purchase of land for further extension .....

Mar 18, 2019

Only companies other than subsidiary companies, associate companies and joint ventures are eligible for purpose of registeration as valuer under rule 3(2) of Companies (Registered Valuers and Valuation) Rules, 2017 - Vide decision of High Court of Delhi in Cushman and Wakefield India (P.) Ltd. v. Union of India

Facts of the case:   <ol><li>The petitioners were engaged in the business of real estate consultancy services including provision of real estate valuation services.</li><li>The petitioner is a subsidiary of a reputed body corporate and is universally recognized as a lauded leader in providing valuation service.</li><li>The petitioner filed writ petition for declaring rule 3(2) of the Companies (Registered Valuers and Valuation) Rules, 2017 as unconstitutional.</li><li>According to petitioner, rule 3(2) of .....

Apr 18, 2019

Decisions taken in 34th GST Council Meeting held on 19th March 2019

34th GST Council Meeting was held on 19th March 2019 in which decisions relating to GST Rates for Real Estate Sector were taken. Summary of Rates effective from 01-04-19 are as follows: New Tax Rates and its Conditions New GST rate @ 1% on the construction of affordable houses is available for the following:   <ul><li>In the case of new projects, houses which meet the definition of affordable houses as decided by GST Council (i.e. non-metros – area of 90 sqm and metros – area of 60 sqm and value up to INR 45 L.....

Apr 18, 2019

Extension of due date for furnishing ITC 04 till 30th June, 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. 15/2019 – CT dated 28th March 2019 has extended the due date for furninshing ITC – 04 for the periods July 2017 to March 2019 till 30th June 2019.   <a href="http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-15-central-tax-english-2019.pdf;jsessio.....

Apr 18, 2019

Extension of due date for furnishing GSTR 1 of March 2019 till 13th April 2019

The Central Board of Indirect Taxes and Customs video Notification No. 17/2019 has extended the due date for filing GSTR 1 for the month of March 2019 from 10th April 2019 to 13th April 2019.   <a href="http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-17-central-tax-english-2019.pdf;jsessionid=D8AC075BF7E8C6CA3CFA1BC1E2529798">http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-17-central-tax-english-2019.pdf;jsessionid=D8AC075BF7E8C6CA3CFA1BC1E2529798</a> .....

Apr 18, 2019

Framework for Utilization of Regulatory fee foregone by SEBI

With a view to encourage the participation by Farmers / Farmer Producer Organizations(FPOs) in agricultural commodity derivatives markets, SEBI has reduced the regulatory fee on Stock Exchanges w.r.t turnover in agricultural commodity derivatives. In order to pass on the desired benefits from reduction of regulatory fees on agricultural commodity derivatives, SEBI vide Circular No. SEBI/HO/CDMRD/DMP/CIR/P/2019/40 dated 20th March 2019 has decided that the stock exchanges dealing with agricultural commodity derivatives shall create a separate fund earmarked for the bene.....

Apr 18, 2019

Revised Guidelines for System Audit for Mutual Funds / Asset Management Companies (AMCs)

Requirement of system audit for mutual funds was introduced vide SEBI Circular SEBI / IMD / CIR No.9 / 176988 / 2009 dated September 16, 2009. Considering the importance of systems audit in technology driven asset management activity and standardize the systems audit, SEBI vide Circular No. SEBI/HO/IMD/ DF2/CIR/P/2019/57 dated 11th April 2019 has issued revised guidelines which are detailed in the circular.   <a href="https://www.sebi.gov.in/legal/circulars/apr-2019/system-audit-framework-for-mutual-funds-asset-managem.....

Apr 18, 2019

Deferral of Implementation of Indian Accounting Standards (Ind AS) by Banks

Reserve Bank Of India vide its Notification No. RBI/2018-2019/146 dated 22nd March 2019 has decided to defer the implementation of Ind AS till further notice by RBI.   https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11506&Mode=0 .....

Apr 18, 2019

Establishment of Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or any other place of business in India by foreign entities

Reserve Bank of India vide Notification No RBI/2018-19/154 dated 28th March 2019 has issued guidelines regarding opening of BO/LO/PO in India by foreign entities. For opening of a BO/LO/PO or any other place of business in India, where the principal business of the applicant falls in the Defence, Telecom, Private Security and Information and Broadcasting sector, no prior approval of the RBI shall be required, if Govt. approval or license / permission by the concerned Ministry / Regulator has already been granted. Further, in the case of proposal for opening a PO relati.....

Apr 18, 2019

Extension of due date for linking of Aadhar and PAN

The Central Board of Direct Taxes vide Notification No. 31/2019 dated 31st March 2019 has extended the last date for linking of PAN and Aadhar till 30th September 2019. However, after 01st April 2019, it is mandatory to quote Aadhar Number while filing the income tax return.   https://www.incometaxindia.gov.in/communications/notification/notification_31_2019.pdf .....

Apr 18, 2019

Where assessee had developed shopping mall and let out same by providing a variety of services and facilities in mall, it could be found that primary intention of assessee was commercial exploitation of property which constituted its main business, income so derived would be assessed as income from business and not as income from house property

<ul><li>Vide Decision of High Court Of Kerala in Commissioner of Income-tax v. Oberon Edifices & Estates (P.) Ltd.</li><li></li></ul>   Facts of the case:   1. Assessee is a company engaged in the business of construction and promotion of residential and commercial complexes. The assessee constructed a shopping mall by name 'Oberon Mall' in Kochi in the property owned by its sister concern and let out the shop rooms. For the Assessment Year 2009-10, the assessee has shown t.....

Apr 18, 2019

SLP dismissed against High Court ruling that where objects in original trust deed were sufficiently wide and covered range of charitable activities relatable to education, medical aid and help to poor in times of calamities, registration of assessee-trust could not be denied for amended objects clarifying running of diagnostic centre on no profit basis

<ul><li>Vide Decision of Supreme Court Of India in Commissioner of Income-tax (Exemptions) v. Paramount Charity Trust</li></ul>   Facts of the case:   <ol><li>The assessee, a registered public trust, had applied for and was granted registration under Section 12A of the Income-tax Act, 1961. Initially, the object of the Trust had eleven clauses which inter alia included education purpose; research; relief to poor; medical aid in form of donations to the hospitals, dispen.....

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