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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.....

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

<ul><li>Vide Decision of High Court Of Bombay in Commissioner of Income-tax (TDS)-2 v. Saifee Hospital</li></ul>   Facts of the Case:   <ol><li>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.</li><li>Further, The Commissioner (App.....

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.....

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. <!-- /wp:parag.....

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. <!-- /wp.....

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.   <a href="https://www.sebi.gov.in/legal/circulars/may-2019/permitting-foreign-portfolio-investors-fpi-to-invest-in-municipal-bonds_42927.html">https://www.sebi......

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 –   <table class="wp-block-table"><tbody><tr><td> Applicant seeking recognition as Clearing Corporation </td><td> Rs. 50 Crores </td></tr><tr><td> Recognized Clearing Corporation on commencement of operations, at all times </td><td> Rs. 50 Crores       (or) Capital as determined under reg.....

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 ap.....

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.....

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

<ul><li>Vide Decision of Supreme Court Of India in Principal Commissioner of Income-tax v.Ballarpur Industries Ltd.</li><li></li></ul>   Facts of the case:   <ol><li>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.</li><li>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.</li><li>Since a dispute ar.....

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

<ul><li>Vide Decision of High Court Of Uttarakhand in Director of Income-tax International Taxation v.Schlumberger Asia Services Ltd.</li></ul>   Facts of the case:   <ol><li>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 </li></ol>   machinery on hire used, or to be used, in the prospecting for, or extracti.....

May 16, 2019

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

<ul><li>Vide Decision Of High Court Of Telangana in Megha Engineering and Infrastructures Ltd. v. Commissioner of Central Tax</li></ul>   Facts of the case:   <ol><li>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 t.....

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.   <a href="https://resource.cdn.icai.org/51943bosfinal-19-p7-cp7.pdf">https://resource.cdn.icai.org/51943bosfinal-19-p7-cp7.pdf</a> <!-.....

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, .....

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.   <ul><li>MoU facilitate sharing of data and information on Automatic and regular basis which helps in Monitoring the happening corporate frauds.</li><li>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 Repor.....

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.   <a href="https://www.sebi.gov.in/media/press-releases/mar-2019/transfer-of-securities-held-in-physical-mode-clarification_42503.html">https://www.sebi.gov.in/media/press-releases/mar-201.....

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.   <a href="https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT18493A8BC3E04424A89A29ED4D18C0B67FC.PD.....

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.   <a href="https://rbidocs.....

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,   <ul><li>Due date for depositing Tax Deducted at Source (TDS) for the month of April,2019 from 7th May,2019 to 20th May,2019.</li><li>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 </li><li>Due date for Issue of TDS Certificates in form 16 and 16A from 15th of June, 2019 to 15th of July, 2019.</li></ul> <!-- /wp:list --.....

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   <ul><li>TDS statement in Form 24Q for FY 2018-19 from 31st May, 2019 to 30th June, 2019 and</li><li>TDS Certificate in Form 16 for FY 2018-19 from 15th June, 2019 to 10th of July, 2019.</li></ul>   It’s because of Revision of Form 24Q’s format and Consequent updating of the File Validation Utility for its online filing. <a href="https://www.incometaxindia.gov.in/Lists/Latest%20News/At.....

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

<ul><li>Vide decision of High Court of Bombay in Commissioner of Income Tax V. Melstar Information Technologies Limited.</li></ul>   Facts of the Case:   <ol><li>The Assessee (Melstar) had not claimed certain expenditure before the assessing officer but eventually raised that claim before the Tribunal.</li><li>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 q.....

Jun 21, 2019

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

<ul><li>Vide Decision of High Court of Allahabad in People Cause Foundation v. Income Tax Appellate Tribunal.</li></ul>   Facts of the Case:   <ol><li>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).</li><li>It also applied for Certificate Under Section 80G of the Act, 1961. The Application was dismissed, against which the Appellant preferred an appeal before IT.....

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. <!-- /wp:paragraph.....

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.   .<a href="http://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-39-central-tax-english-2019.pdf;jsessionid=E8B5417A96760713EDF3D0C82C3388C2">http://www.cbic.gov.in/resources//htdo.....

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. <!-- /wp:paragraph -.....

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. <!--.....

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.   <a hre.....

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 .....

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 section.....

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:   <ol><li>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.</li><li>The Petitioner while claiming IGST Input, the petitioner is inadvertently and by mistake reported IGST i.....

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:   <ol><li>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.</li></ol>  <!-- wp:parag.....

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.   <a href="http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-47-central-tax-english-2019.pdf;jsessionid=351C29506073E73E96266EFB7E2DB4A9">http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn.....

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.   <a href="http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-44-central-tax-english-2019.pdf;jsessionid=92DCCE2341F99AB6331DC2C3BFF237D3">http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-44-central-tax-english-2.....

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.   <a href="http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-45-c.....

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.   <a href="http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-46-central-tax-english-2019.pdf;jsessionid=188FA703E5BDB7F27E6.....

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%.   <a href="https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11705&Mode=0">https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11705&Mode=0</a> .....

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%.   <a href="https://www.rbi.org.in/Scripts.....

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.   <a href="https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11686&Mode=0">https://www.rbi.....

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,   <ul><li>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.</li><li>The option is required to be exercised by the company before the due d.....

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:   <ul><li>Under the new system of faceless e-Assessment, tax payers will receive notices on their registered emails as well.....

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:   <table class="wp-block-table"><tbody><tr><td> Block of assets </td><td> Depreciation allowed as per %tage of WDV </td></tr><tr><td> (i) Motor cars, other than.....

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