Category: MAGAZINES

Bombay High Court’s Judgement on Bogus Cash Credits: PCIT vs Alag Securities Pvt. Ltd

COURT: Bombay High Court
CORAM: Milind D. Jadhav J, Ujjal Bhuyan J
SECTION(S): 68
GENRE: Domestic Tax
CATCH WORDS: Bogus Accomodation Entries
COUNSEL: Suresh Kumar
DATE: June 12, 2020 (Date of pronouncement)
DATE: June 13, 2020 (Date of publication)
AY: 2003-04

CITATTION:

Section 68- Bogus Cash Credits: In the case of an assessee engaged in providing ‘accommodation entries’, the entire deposits cannot be assessed as unexplained cash credits. Only the commission (0.15%) earned in providing the accommodation entries can be assessed as income (PCIT vs. NRA Iron and Steel (2019) 103 Taxmann.com 48 (SC) distinguished).

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AAR Maharashtra’s Judgement on Entitlement of Input Tax Credit under the CGST/ SGST Act

Case: Sundharams Private Ltd. Dated: 18.03.2020

Query: Whether it is entitled to avail Input tax credit under CGST/SGST Act in respect of taxes to be paid on its purchase of Paver Blocks laid on the land?

To Download the Judgement, Please Click Here

Important GST Weekly Update

  1. GSTN portal has recently added an option to pre-fill an application form for the tax refund of the tax filed for the taxpayers:

The portal has included the columns for the information required by the taxpayer to file the tax refund.

The columns for the tax refund details require certain information such as:

  • Aadhar Number
  • Income tax paid in Financial Year 2018-2019
  • Capital Expenditure and investment made in Financial Year 2018-2019
  • Advance tax paid in Financial Year 2019-2020 (till date)

The pre-fill application is supposed to be assisting all the tax claim refund to be quicker and easier to process as per the applicant request. This means that the taxpayer will be able to screen the tax claim for a genuine request and therefore making it accessible for all the taxpayers to claim the tax refund as soon as possible.

For filling Navigate to Services > Refunds > Refund pre-application Form option to submit Refund Pre-Application Form.

On submitting the refund pre-application form, you will be shown an acknowledgement message on the screen. No separate e-mail or SMS will be sent to you for the same.Once submitted; the Refund Pre-Application Form cannot be edited, revised or re-submitted again.

2.  ICAI issues Practical FAQs on ITC under GST:

The ICAI has clarifying on eligibility and Conditions for taking ITC stated that-

  • Section 16(1): eligible as ITC, which is ‘it must be used or intended to be used in the course or furtherance of his business’. As long as this condition is satisfied along with other conditions in section 16, ITC is eligible for the company.
  • That the particular supplier would have crossed the threshold exemption limit for e-invoicing in the current year and hence, the invoicing portal would have enabled the e-invoicing for the supplier. However, if the supplier has already crossed the threshold and has become a qualified person to issue the e-invoice, it becomes mandatory for him to issue the e-invoice. If e-invoice is not issued, then as per rule 48(5), the said invoice shall be an invalid invoice. Therefore, if the recipient wants to claim ITC, he should have a valid invoice which is e-invoice with a valid IRN [as per section 16(2)(a)].
  • In the absence of e-way bill for any inputs, the credit of the same can be denied in case of refund or GST Audit said that Section 16(2)(b) of the CGST Act, 2017.
  • However, the deeming provision has been created in the Act by way of insertion of an explanation to section 16(2)(b) wherein the receipt of goods by ship-to party will also be considered as receipt of goods by bill-to party thus making them eligible for credit. There cannot be a denial of ITC to a taxpayer who does not have physical possession of the e-way bill if he is otherwise able to prove the receipt of goods. (detail FAQ on ICAI website).

3.Implementation of RMS for processing of Duty Drawback claims:

The CBIC issued Circular No. 15 /2021-Customs dated July 15, 2021 w.r.t. implementation of Risk Management System (“RMS”) for processing of Duty Drawback claims.

Custom has inform that the above-referred risk-based processing of shipping bills with claim of duty drawback is being initiated with effect from July 26, 2021. Shipping bills with claim for duty drawback will be routed on the basis of risk evaluation through appropriate selection criteria. For this purpose, after the filing of correct and complete EGM, shipping bills will be sent by ICES to RMS. Subsequent to RMS treatment, ICES will be informed for each shipping bill whether for the processing of the drawback claim, a particular shipping bill will be facilitated without intervention or will be routed to the proper officer. This process is expected to reduce the processing time taken for drawback claims, enable quick disbursal to exporters and rationalise the Customs’ workload.

4. RoSCTL on apparel export extended till March 31, 2024 at existing rates:

The Govt has given its approval for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated March 08, 2019 on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters. The scheme will continue till March 31, 2024.

5. Time limit for filing claims under TMA extended upto 30.09.2021 for quarter ending on 31.03.2020 and 30.06.2020:

The DGFT issued Public Notice No. 14/2015-2020 dated July 13, 2021 for extension of time limit for filing claims under Transport and Marketing Assistance (TMA) Scheme upto September 30, 2021 for quarter ending on March 31, 2020 and June 30, 2020.

DGFT hereby makes the following amendment in Chapter 7(A) of the Handbook of Procedures (2015-20) with immediate effect:

In para 7A 01(d), the following sentence is added at the end :

“Application for refund of such claims for the quarter ending March 31, 2020 and June 30, 2020 may be filed upto September 30, 2021”.

6. Recent AAR & Judicial Decisions:-

(i) AAR On ITC not allowable on Food and Beverages consumed in Industrial Canteen:

AAR ruled that availing of eligible Input Tax Credit on inputs & input services relating to the main business activity of manufacturing is not allowed against GST liability on renting of immovable property. The AAR said that Input Tax Credit is not allowable in respect of manpower services hired for industrial canteen and LPG cylinders refilled for use in industrial canteen. Lastly, the AAR ruled that Input Tax Credit is allowable in respect of medicines purchased in factory hospitals and other inputs and input services used in factory hospitals and it would be applicable with effect from 01.02.2019, and not for the prior period.

 

(ii) AAR On Housing Society to pay GST on Maintenance Charges if Members’ monthly contribution exceeds Rs.7,500:

(Applicant –Emerald Court Co-operative Housing Society Limited)

The AAR ruled that housing societies should pay Good and Service Tax (GST) on Maintenance Charges if Members’ monthly contribution exceeds Rs.7,500.

The Co-op Housing Society Ltd looks after the upkeep of the society and its members. The CHS provides services to its members in the form of facilities or benefits like security, cleaning, repairs, water, common electricity, etc. It also arranges to pay for the ancillary services like accounting, auditing, caretaker, etc. Presently, the CHS is raising monthly bills on its members which consist of 2 parts, one is the property tax on which GST is not being charged and another is ‘Maintenance charges’ on which GST is being charged. The applicant has sought the advance ruling on the issue of chargeability of GST on such transactions since there could be no sale by the Co-operative Housing Societies to their own permanent members, for the doctrine of mutuality would come into play.

To elaborate, CHS treated itself as the agent of the permanent members entirely and advanced the stand that no consideration passed for the services rendered by the society to its members and there was the only reimbursement of the amount by the members and therefore no GST could be levied.

AAR ruled that the applicant is liable to pay GST on maintenance charges (by whatever name called) collected from its members if the monthly subscription or contribution from the members is more than Rs.7,500/- per month. “In view of the amended Section 7 of the CGST Act, 2017, we find that the applicant society and its members are distinct persons and the amounts received by the applicant, against maintenance charges, from its members are nothing but consideration received for supply of goods/services as a separate entity.

The principles of mutuality which has been cited by the applicant to support its contention that GST is not leviable on the maintenance charges collected by them from its members, is not applicable in view of the amended Section 7 of the CGST Act. 2017 and therefore, the applicant has to pay GST on the said amounts received against maintenance charges, from its members,” the AAR ruled.

 

(iii) AAR On 12% GST payable on PVC tufted Coir Mats and Matting:

(Applicant –AlleppeyFibretuft Pvt Ltd)

The AAR ruled that 12% GST payable on PVC tufted Coir mats and matting. The applicant submits that the PVC Tufted Coir Mats and Matting are manufactured using technologically advanced machines. The machine is designed in such a way that coir yarn stacked in creel stand is automatically fed into cutting / tufting head where that yarn is cut into bits of required pile height and tufted over a uniform thickness PVC base in conveyor belt which is cured by passing over heated radiators (Heating Zone) and then chilled surface (chilling zone) of the continuous process machinery. The PVC base solidifies and results in formation of PVC matting in rolls which can also be cut into mat size by longitudinal and cross cutting. All the above process is done in this machine automatically and this requires minimum labour for operation.

 

(iv) AAR On 18% GST payable on Online, Offline Tendering:

(Applicant – Maharashtra State Dental Council)

AAR  ruled that Online tendering will be considered as Supply of Services and offline tendering in its entirety involving sale of form, payment of tender fees and submission of bids etc. will be considered as Supply of Services. The AAR ruled that Online and Offline tendering are covered under services heading 9997. The AAR ruled that  activities conducted by the Maharashtra State Dental Council are the “Registration Activities and their related activities laid down in the Act” are not exempted under the Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017.

(v) AAR On GST on Brush Holder Assembly, Lead Wires and parts for Railway:

(Applicant – Arco Electro Technologies Pvt. Ltd)

The products Brush Holder Assembly and parts, Lead Wires and Insulating Rods are to be classified under heading 86.07 only when they are manufactured as per the drawings and specifications given to the applicant by the Indian Railways and only when the said goods are used in traction motors meant for Railway locomotives.

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Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

Karnataka High Court’s Judgement on Section 54F of the Income Tax Act: Navin Jolly vs ITO

COURT: Karnataka High Court

CORAM: Alok Aradhe J, M. Nagaprasanna J

SECTION(S): 54F

GENRE: Domestic Tax

CATCH WORDS: Exemption, Residential House

COUNSEL: A. Shankar

DATE: June 18, 2020 (Date of pronouncement)

DATE: June 20, 2020 (Date of publication)

AY: 2006-07

CITATION:

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Section 54F: In determining whether the assessee owns more than one residential property, the usage of the property has to be considered. If an apartment is sanctioned for residential purposes but is in fact being used for commercial purposes as a serviced apartment, it has to be treated as commercial property. Alternatively, several independent residential units in the same building have to be treated as one residential unit and there is no impediment to allowance of exemption u/s 54F(1).

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AAR Maharashtra’s Judgement on Applicability of Notification and Admissibility of Input Tax Credit of Tax Paid or Deemed to be Paid

Case: M/s TATA Motors Limited. Dated: 25.08.2020.

Query: Applicability of Notification and Admissibility of input Tax Credit of tax paid or deemed to be paid.

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To Download the Judgement, Please Click Here

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Bombay High Court’s Judgement on Section 28(iv) of the Income Tax Act: Essar Shipping Limited vs CIT

COURT: Bombay High Court

CORAM: Milind D. Jadhav J, Ujjal Bhuyan J

SECTION(S): 28(iv)

GENRE: Domestic Tax

CATCH WORDS: subsidy, waiver of loan

COUNSEL: P. C. Chhotaray, P. C. Tripathi, Subhash S. Shetty

DATE: March 5, 2020 (Date of pronouncement)

DATE: June 26, 2020 (Date of publication)

AY: 1984-85

CITATION:

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Section 28(iv): The Dept’s argument that the waiver of a loan constitutes an operational subsidy which is taxable is not correct. There is a fundamental difference between “loan” and “subsidy” & the two concepts cannot be equated. While “loan” is a borrowing of money required to be repaid back with interest; “subsidy” is not required to be repaid back being a grant. Such grant is given as part of a public policy by the state in furtherance of public interest. Therefore, even if a “loan” is written off or waived, which can be for various reasons, it cannot partake the character of a “subsidy”. The waiver of a loan cannot be brought to tax u/s 28(iv) of the Act.

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Income Tax Quarterly Updates (April 2021 to June 2021)- Including Covid-19 relaxations / updates

Income Tax Quarterly Updates (April 2021 – June 2021)– Including Covid-19 relaxations / updates

Income Tax is the tax that is collected by the Central Government for each financial year levied on the total taxable income of an assessee during the previous year.The Income Tax Act is a comprehensive statute that focuses on the different rules and regulations that govern taxation in the country. It provides for levying, administering, collecting and recovering income tax for the Indian government. It was enacted in 1961.

Income Tax including surcharge (if any) & cess is charged for any person at the rate as prescribed by Central Act for that assessment year.  Income-tax Act has provided separate provisions with respect to levy of tax on income received in advance as well as the income with respect of which the amount has not yet been received. A person also has to keep track of his TDS deducted while calculating his final tax liability at the end of the year.

INCOME TAX Circulars in brief:

1. “Compliance Check for Section 206AB & 206CCA”:

The Central Board of Direct Taxes (‘CBDT’), in exercise of powers conferred under section 138 (1) (a) (i) of Income-tax Act, 1961, hereby directs that Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information to the ‘Tax Deductor / Tax Collector’, having registered in the reporting portal of the Project Insight through valid TAN, to identify the ‘Specified Persons’ for the purposes of section 206AB and 206CCA of the Act through the functionality “Compliance Check for Section 206AB &; 206CCA”.To read more: Click Here

2. Government extends tax deadlines, exempts funds received for COVID-19 treatment:

The CBDT has also granted relaxation for uploading Forms 15G/H – declarations to be submitted to banks to avoid deduction of tax on interest earned – for the quarter ended June 30, 2021.

The Central Board of Direct Taxes (CBDT) has extended several income tax-related timelines once again due to the disruptions caused by the pandemic. Individuals who received financial support from their employers, friends or relatives for their COVID-19 treatment will not have to pay tax on the amount received.

3. Breather for reinvestment of gains on property sale:

Those running out of time to reinvest long-term capital gains (LTCG) made on sale of property have got a breather too. If the last date for reinvesting in your case falls between April 1 and September 29, 2021, you now have time till September 30, 2021 to complete the process. As per section 54 of the Income Tax Act, such gains are exempt from tax if the amount is reinvested in another residential property within two years from the date of transfer. Alternatively, they have the option to construct a new property three years from the transaction date. Under section 54EC, they can also invest the gains in specified long-term bonds issued by entities such as National Highway Authority of India (NHAI) and Rural Electrification Corporation (REC) within six months of the transfer.

4. Cabinet gives ex-post facto approval for amendments to Finance Bill, 2021:

The Union Cabinet on Tuesday gave ex-post facto approval to the official amendments to the Finance Bill, 2021, which were aimed at clarifying and rationalising tax proposals for 2021-22. The Finance Bill became the Finance Act, 2021 on March 28, 2021 after receiving the President’s nod. An official release said that the government’s amendments to the Finance Bill, 2021 tried to address the concerns of the stakeholders with regard to the tax proposals for the fiscal.

5. New rules notified for determining deemed consideration for slump sale; key things to know:

Union Budget 2021 introduced significant amendments in the provisions relating to the taxation of slump sale transactions. One of the key amendments is in relation to computation of consideration value for slump sale taxation. Earlier, the consideration actually paid or received on the slump sale was considered for determining the capital gains tax on the sale. CBDT has now prescribed the rules containing the mechanism relating to computation of the FMV in slump sale transactions.

The Finance Act, 2021 has however provided that to compute the tax arising on account of such slump sale, the Fair Market Value (FMV) of the capital assets (being an undertaking or division transferred by way of slump sale) shall be deemed to be full value of the consideration. However, the methodology to compute FMV was not prescribed by the Finance Act, 2021.

Monthly Updates with official links

Monthly Updates / Circulars / Notification – April 2021

Sl.Particulars of the Notification(s)File No. / Circular No.Link(s)
1.Extension of time lines related to certain compliances by the Taxpayers underthe Income-tax Act 1961  Circular No. 08/2021LINK
  2.Format, Procedure and Guidelines for submission of Statement of Financial Transactions(SFT) for MF Transactions by Registrar and Share Transfer Agent    Notification No. 4 of 2021  LINK
  3.Format, Procedure and Guidelines for submission of Statement of Financial Transactions(SFT) for Depository TransactionsNotification No. 3 of 2021LINK
  4.the Income-tax (12th Amendment) Rules, 2021Notification No. 40/2021] [F.No. 370142/8/2021-TPL  LINK
  5.TheIncome-tax (11th Amendment) Rules, 2021.Notification No. 37/2021/ F. No. 370142/28/2020-TPL  LINK
  6.The Income-tax (7th Amendment) Rules, 2021Notification No. 21/ 2021LINK
  7Facilitation of the conduct of Faceless Assessment proceedings under section 144B of the said Act,Notification No. 22/2021/F. No. 187/3/2020-ITA-ILINK
8To facilitate the conduct of Faceless Assessment proceedings under section 144B of the said ActNotification No. 23/2021/F. No. 187/3/2020-ITA-ILINK
9Central Board of Direct TaxesNotification No. 24/2021/F. No. 187/3/2020-ITA-ILINK
10The Central Board of Direct Taxes hereby authorises the Assistant Commissioner of Income-tax/Deputy Commissioner of Income-tax (NaFAC)Notification No. 25/2021/F. No. 187/3/2020-ITA-ILINK
11TheIncome-tax (eighth Amendment) Rules, 2021.Notification No. 28 /2021/F. No 370142/9/2018-TPLLINK
12Agreement between the Government of the Republic of India and theGovernment of the Islamic Republic of Iran for the avoidance of double taxation and prevention of fiscalevasion with respect to taxes on incomeNotification No.29/2021/F.No.501/03/92-FTD-II  LINK
13CBDT  authorizes theDirector of Income Tax(Centralized Processing Centre), Bengaluru and Commissioner of Income-Tax (Exemption),Bengaluru for various mattersNotification No. 30 /2021/F.No. 370142/4/2021-TPL  LINK
14TheIncome-tax(9th Amendment) Rules, 2021Notification No. 31/2021 / F.No.370142/19/2019-TPLLINK
15The Income-tax (10th Amendment) Rules, 2021Notification No. 32 /2021  LINK
16Number of unique investors across Mutual Fund schemes also increased by 10% in FY 2020-21  Twitter UpdatesLINK
17TheCentralGovernment hereby specifies the sovereign wealth fundNotification No. 33/2021/ F. No. 370142/6/2021-TPL  LINK
18Format, Procedure and Guidelines for submission of Statement of Financial Transactions(SFT) for Dividend income  Notification No. 1 of 2021  LINK
19Format, Procedure and Guidelines for submission of Statement of Financial Transactions(SFT) for Interest incomeNotification No. 2 of 2021LINK
20TheCentralGovernment hereby specifies the pension fund, namely, the Canada Pension Plan Investment BoardNotification No. 34/2021/F. No. 370142/39/2020-TPL  LINK

Monthly Updates / Circulars / Notification – May, 2021

Sl.Particulars of the Notification(s)File No. / Circular No.Link(s)
1.The Income-tax (12th Amendment) Rules,2021.Notification No. 40/2021][F.No. 370142/8/2021-TPL  LINK
  2.Extension of time lines related to certain compliances by the Taxpayers underthe Income-tax Act 1961Circular No. 08/2021LINK
  3.Format, Procedure and Guidelines for submission of Statement of Financial Transactions(SFT) for MF Transactions by Registrar and Share Transfer AgentNotification No. 4 of 2021  LINK
  4.Format, Procedure and Guidelines for submission of Statement of Financial Transactions(SFT) for Depository TransactionsNotification No. 3 of 2021  LINK
  5.Amendments in the notification of theGovernment of India, Ministry of Finance, (Department of Revenue), number 85/2020, dated the 27th October, 2020,Notification No. 39/2021/ F.No. IT(A)/01/2020-TPL  LINK
  6.TheIncome-tax (11th Amendment) Rules, 2021.Notification No. 37/2021/ F. No. 370142/28/2020-TPL  LINK
  7TheIncome-tax (13th Amendment) Rules, 2021.Notification No. 41 /2021/ F. No. 370142/11/2018-TPL  LINK
8TheIncome-tax (14th Amendment) Rules, 2021[Notification No. 42/2021LINK
9TheCentralGovernment hereby specifies the pension fund, namely, the Caissede dépôt et placement du QuébecNotification No. 43/2021  LINK
10TheCentralGovernment hereby specifies the pension fund, namely, the CDPQ Infrastructures Asia III Inc.Notification No. 44/2021  LINK
11TheIncome tax (15th Amendment),Rules, 2021.Notification No. 50/2021  LINK
12Modificationof the Notification No. 14/2015 dated 16.02.2015Notification No. 47/2021  LINK
13Govt eases income tax norms for cash received by hospitals providing Covid treatmentNotification No. 56/2021  LINK
14Extension of time limits of certain compliances to provide relief totaxpayers in view of the severe pandemicCircular No. 9 of 2021  LINK
15Income Tax department to launch new e-filing portal for taxpayers on June 7Newspaper  LINK
16Procedure for exercise of option under sub-section (1) of section 245M and intimation thereof by furnishing and upload of Form No. 34BB under sub-rule (1) of Rule 44DA of Income-tax Rules, 1962.  Notification No. 05 of  2021      LINK
17Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemicCircular No. 9 of 2021  LINK
18TheIncome- tax (16th Amendment) Rules,2021Notification No.68 /2021/F. No.370142 /16 /2021-TPL  LINK
19Clarification regarding the limitation time for filing of appeals before the CIT(Appeals) under the Income-tax Act, 1961 (the Act)Circular No. 10/2021  LINK

Monthly Updates / Circulars / Notification – June, 2021

Sl.Particulars of the Notification(s)File No. / Circular No.Link(s)
1.Guidelines under section 1940 of the Income-tax Act, 1961 – reg.Notification No. 40/2021][F.No. 370142/8/2021-TPL  LINK
  2.The Central Government specifies the Nodal officersF. No. 225/53/2020-ITA.II/Notification No.69 /2021  LINK
  3.TheCentral Government hereby approves M/s Indian Institute of Technology, Bhilai (PAN: AABAI0415K) under thecategory of ‘University, College or other institution’Notification No. 70 /2021) F.No.203/ 06/ 2020/ ITA-II    LINK
  4.TheIncome-tax (17th Amendment) Rules, 2021Notification No. 71/2021/F. No. 370142/19/2021-TPL  LINK
  5.Amendments in thenotification of the Government of India, published in the Gazette of India, Extraordinary, vide number S.O. 1790(E), dt. 05.06.2017Notification No. 73/ 2021  LINK
  6.Compliance Check Functionality for Section 206AB & 206CCA of Income-tax Act 1961Circular No. 11 of 2021  LINK
  7Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic.  Circular No. 12/2021    LINK
8Partial modification – Taxationand Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020Notification No. 74/2021/ F. No. 370142/35/2020-TPL  LINK
9Amendments – Direct Tax Vivad seVishwas Act, 2020Notification No. 75/2021  LINK

Income Tax Due Date – Extensions

Sl.Nature of ExtensionProvisions of IT Act 1961Original Due DateExtended Due Date
1Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of the Income-tax Act, 1961Section 144C  01.06.2021  31.08.2021
2The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21Rule 31A of the Income-tax Rules,1962  31.05.2021on or before 15.07.2021
3The Certificate of Tax Deducted at Source in Form No.16Rule 31 of theIncome-tax Rules,1962  15.06.2021on or before 31.07.2021
4The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64Dfor the Previous Year 2020-21Rule 12CBof theIncome-tax Rules,1962  15.06.2021on or before 15.07.2021
5The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21Rule 12CBof theIncome-tax Rules,1962  30.06.2021on or before 31.07.2021
6The application in Form No.10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisionalapproval of Trusts/ Institutions/ Research Associations etc.,UnderSection 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act    30.06.2021  on or before 31.08.2021
7The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption  under  the  provisions  contained  in  Section  54  to  54GB  of the Act    Section  54  to  54GB  of the Act    Between 01.04.2021 to 29.09.2021    30.09.2021
8The Quarterly Statement in Form No. 15CC to be furnished by authorized dealer in respect ofremittances made for the quarter ending on 30th June, 2021Rule 37 BB of the Income-tax Rules, 1962  30.06.2021  31.07.2021
9The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21   30.06.2021  31.07.2021
10The Annual Statement required to be furnished bythe eligible investment fund in Form No. 3CEK for the Financial Year 2020-21  Section 9A (5) of the Act  29.06.2021  31.07.2021
11Uploading of the declarations received from recipients in Form No. 15G/15H during the quarterending 30th June, 2021  Form No. 15G/15H  15.07.2021  31.08.2021
12Exercising of option to withdraw pending application (filed before the erstwhile Income TaxSettlement Commission) in Form No. 34BB, wunder Section 245M (1) of the Act  27.06.2021  31.07.2021
13Last date of linkage of Aadhaar with PANSection 139AA of the Act  30.06.2021  30.09.2021
14Last date of payment of amount under Vivad se Vishwas(without additional amount)   30.06.2021  31.08.2021
15Last date of payment of amount under Vivad se Vishwas (with additional amount)    31.08.2021
16Time Limit for passing assessment order 30.06.202130.09.2021
17Time Limit for passing penalty order 30.06.202130.09.2021
18Time Limit for processing Equalisation Levy returns   30.06.2021  30.09.2021

Bio of Author: CS LALIT RAJPUT

Company Secretary having 6+ years of post qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms and LLP. He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.

Bio of Author: CA HEER GAJJAR

I Am A Chartered Accountant By Profession, Holding Specialization In Investment And Financial Analysis But Direct Taxation Continues To Be My Passion. Other Feathers In My Hat Include Consulting Businesses And Being A Visiting Faculty For Various Professional Courses.

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Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Feel free to share your suggestions / opinions atcslalitrajput@gmail.com&caheergajjar@gmail.com

Bombay High Court’s Judgement on Section 69C of the Income Tax Act: PCIT vs Vaman International Pvt Ltd

COURT: Bombay High Court

CORAM: Milind D. Jadhav J, Ujjal Bhuyan J

SECTION(S): 69C

GENRE: Domestic Tax

COUNSEL: Akhileshwar Sharma

DATE: January 29, 2020 (Date of pronouncement)

DATE: July 3, 2020 (Date of publication)

AY: 2010-11

CITATION:

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Section 69C- Bogus Purchases: (i) The onus is on the revenue to prove that the income really belongs to the assessee (ii) The assessee has filed copies of purchase/ sale invoices, challan cum tax invoices, stock ledger showing entry/exit of materials purchased, bank statements to show payment for purchases were made through banking channels, etc., to establish genuineness of purchases (iii) The AO has not brought on record any material evidence to show that the purchases were bogus (iv) Mere reliance by the AO on information obtained from Sales Tax Department or statements of persons made before the Sales Tax Department is not sufficient to treat the purchases as bogus (v) If the AO doubts the genuineness of the purchases, he has to do further enquiries and give an opportunity to the assessee to examine/cross-examine the parties vis-a-vis the statements made by them before the Sales Tax Department. Without causing such further enquiries in respect of the purchases, it is not open to the AO to make addition u/s 69C.

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AAR Gujarat’s Judgement on HSN Code and GST Tax Rate of ‘Geared Motor’

Case: M/s. Power Build Private Limited. Dated: 13.12.2017

Query: What is the HSN Code and GST Tax Rate of a product ‘Geared Motor’?

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To Download the Judgement, Please Click Here

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Bombay High Court’s Judgement on Reopening for Bogus Capital Gains from Penny Stocks

CASE: Gateway Leasing Pvt. Ltd vs. ACIT

COURT: Bombay High Court

CORAM: Milind D. Jadhav J, Ujjal Bhuyan J

SECTION(S): 10(38), 147, 148, 45

GENRE: Domestic Tax

COUNSEL: Jas Sanghvi, Madhur Agrawal, Suresh Kumar

DATE: March 11, 2020 (Date of pronouncement)

DATE: July 13, 2020 (Date of publication)

AY: 2012-13

CITATION:

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Section 147- Reopening for bogus capital gains from penny stocks: The Dept’s argument that though the assessee disclosed details of the transactions pertaining to purchase and sale of shares, it did not disclose the real colour / true character of the transactions and, therefore, did not make a full and true disclosure of all material facts which was also overlooked by the AO, is not correct. The assessee disclosed the primary facts to the AO & also explained the queries put by the AO. It cannot be said that the assessee did not disclose fully and truly all material facts necessary for the assessment.

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Bombay High Court’s Judgement on Section 68 of the Income Tax Act: CIT vs Sadiq Sheikh

COURT: Bombay High Court (Goa Bench)

CORAM: Dama Seshadri Naidu J, M. S. Sonak J

SECTION(S): 68

GENRE: Domestic Tax

COUNSEL: Nikhil Pai, S. S. Kantak, Susan Linhares

DATE: October 14, 2020 (Date of pronouncement)

DATE: October 31, 2020 (Date of publication)

AY: 2006-07

CITATION:

Section 68- Bogus Cash Credits: The Revenue can examine the source of the source. Merely pointing out to a source and the source admitting that it has made the payments is not sufficient to discharge the burden placed on the assessees by s. 68. Otherwise, it would be sufficient for assessees to simply persuade some credit-less person to own up having made such huge payments and thereby evade payment of tax on the specious plea that the Revenue can always recover the tax from such credit-less source. The explanation has to be plausible and backed by reliable evidence. ‘Fantastic or unacceptable’ explanations are not acceptable (All imp verdicts on s. 68 referred).

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GSTN’s Webinar on New Functionalities related to Returns, Ledgers and Payments deployed on GST Portal

Invite to Taxpayers for GSTN’s Webinar on New Functionalities related to Returns, Ledgers and Payments deployed on GST Portal

In Hindi on Wednesday, 14th July 2021 (4:00 PM) at

Link

MCA / ROC Updates / Circulars- Quarterly E-Newsletter [April 2021 – June 2021]

MCA / ROC Updates / Circulars

Quarterly E-Newsletter April 2021 – June 2021 (Including Covid-19 News)

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अपने पसंद की भाषा में नोटिफिकेशन/सर्कुलर पढ़े।
CLICK HERE TO DOWNLOAD APP

AAR Gujarat’s Judgement on Applicability of GST on Invoices Raised for Storage Charges for Storing Imported Agri Product in Godowns

Case: M/s. Rishi Shipping. Dated: 20.03.2018

Query: The applicability of GST for invoices raised to their clients for storage charges for storing their imported agri product in godowns at Gandhidham.

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To Download the Judgement, Please Click Here

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Karnataka High Court’s Judgement on Section 90 of the Income Tax Act: DIT vs Autodesk Asia Pvt Ltd

COURT: Karnataka High Court

CORAM: Alok Aradhe J, H. T. Narendra Prasad J

SECTION(S): 90, Article 12

GENRE: International Tax

COUNSEL: K. V. Aravind, T. Suryanarayana

DATE: September 15, 2020 (Date of pronouncement)

DATE: November 7, 2020 (Date of publication)

AY: 2006-07

CITATION:

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Interpretation of statutes & DTAAs: The substitution of a provision results in repeal of earlier provision and its replacement by new provision. When a new rule in place of an old rule is substituted, the old one is never intended to keep alive and the substitution has the effect of deleting the old rule and making the new rule operative. Though Notification dated 18.07.2005 (which substitutes paragraph 12 of Article 12 of the DTAA to provide for levy of tax on the royalties or fees for technical services at a rate not exceeding 10%) issued u/s 90 came into force with effect from 01.08.2005, it applies to the entire fiscal year.

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Bombay High Court’s Judgement on Vivad se Vishwas Scheme: Macrotech Developers Limited vs PCIT

COURT: Bombay High Court

CORAM: Milind N. Jadhav J, Ujjal Bhuyan J

SECTION(S): Vivad Se Vishwas Scheme

GENRE: Domestic Tax

COUNSEL: Jas Sanghavi, prakash Shah, V. Sridharan

DATE: March 25, 2021 (Date of pronouncement)

DATE: March 27, 2021 (Date of publication)

AY: 2015-16

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CITATION:

Vivad se Vishwas Act: The CBDT’s answer to question No.73 that the ineligibility u/s 9(a)(ii) relates to an assessment year and if for that assessment year a prosecution has been instituted, then the taxpayer would not be eligible to file declaration for the said assessment year even on issues not relating to prosecution would not only be illogical and irrational but would be in complete deviation from section 9(a)(ii). On a literal or purposive interpretation, the only exclusion visualized under the said provision is pendency of a prosecution in respect of tax arrear relatable to an assessment year as on the date of filing of declaration and not pendency of a prosecution in respect of an assessment year on any issue. To hold that an assessee would not be eligible to file a declaration because there is a pending prosecution for the assessment year in question on an issue unrelated to tax arrear would defeat the very purport and object of the Vivad se Vishwas Scheme.

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AAR Gujarat’s Judgement on Service Provided to SEZ by Hotel

Case: Sapthagiri Hospitality Pvt Ltd. Dated: 30.07.2018

Query: Determination of the liability to pay tax on any goods or services or both. (Service provided to SEZ by Hotel). 

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To Download the Judgement, Please Click Here

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Supreme Court’s Judgement on Section 254(2A) of the Income Tax Act: DCIT vs Pepsi Foods Ltd

COURT: Supreme Court

CORAM: B. R. Gavai J, Hrishikesh Roy J, Rohinton Fali Nariman J.

SECTION(S): 254(2A)

GENRE: Domestic Tax

COUNSEL: Ajay Vohra, Deepak Chopra, Himanshu S. Sinha, Sachit Jolly, Vikramjit Banerjee ASG

DATE: April 6, 2021 (Date of pronouncement)

DATE: April 7, 2021 (Date of publication)

 

CITATION:

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Section 254(2A) Stay by ITAT: Since the object of the 3rd proviso to s. 254(2A) is the automatic vacation of a stay that has been granted on the completion of 365 days, whether or not the assessee is responsible for the delay caused in hearing the appeal, such object being itself discriminatory, is liable to be struck down as violating Article 14 of the Constitution of India. Also, the said proviso would result in the automatic vacation of a stay upon the expiry of 365 days even if the Appellate Tribunal could not take up the appeal in time for no fault of the assessee. Further, vacation of stay in favour of the revenue would ensue even if the revenue is itself responsible for the delay in hearing the appeal. In this sense, the said proviso is also manifestly arbitrary being a provision which is capricious, irrational and disproportionate so far as the assessee is concerned. Consequently, the third proviso to s. 254(2A) will now be read without the word “even” and the words “is not” after the words “delay in disposing of the appeal”. Any order of stay shall stand vacated after the expiry of the period or periods mentioned in the Section only if the delay in disposing of the appeal is attributable to the assessee.

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38th Weekly Corporate Affairs Newsletter

We thought it would help to give you a sense of what’s available to you by subscribing to this 38th  WEEKLY CORPORATE AFFAIRS Newsletter-

·  SEBI Updates

·  MCA Updates

·  RBI Updates

·  IBC Law Updates

·  Labour Law Updates

·  PRESS Information

·  IPO & Investment Section

·  IRDAI (Insurance Sector) Updates

·  Department of Telecommunication 

·  MSME Updates

·  Competition Commission of India

·  Cabinet Decisions / New Laws

·  Current Affairs

We have been thrilled with the amazing response we received from our passionate community of readers and fellow professionals and are pleased to share our 38th Newsletter Editions – “Weekly Corporate Affairs  Newsletter, Vol-38” (from  01st July, 2021 to 09th July, 2021) with you all. We’re excited to help you get the most from this newsletter.

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Calcutta High Court’s Landmark Interim Order in Petition Challenging Constitutional Validity of Section 194N of the Income Tax Act

Calcutta High Court passes landmark interim order in petition challenging constitutional validity of Section 194N of the Income Tax Act, 1961 which mandates the deduction of tax at source at the rate of 2% on cash withdrawals from banking company. Petitioner submitted that Section 194N of the said Act is beyond the legislative competence of the Parliament

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and Entry 82 of List I of Schedule VII to the Constitution allows the Parliament to enact laws for and levy of tax on “income” and the Parliament cannot legislate a provision stipulating the deduction of tax at source from an amount which is admittedly not income and such legislation would be beyond the legislative competence of the Parliament under Entry 82 of List I of Schedule VII of the Constitution.

Petitioner has also relied on several unreported decisions of the Hon’ble Kerala High Court involving the same issue and one of which is order dated 13th August, 2020 passed in Kanan Devan Hills Plantations Company Pvt. Ltd. Versus Union of India in WP (C ) No. 1658 of 2020 where Hon’ble Court has admitted the writ petition on this issue and has granted interim stay of deduction of tax on source under Section 194N of the Income Tax Act, 1961. Hon’ble High Court has also noted that the interim order passed by Hon’ble High of Kerala has not been challenged by the respondents.

Considering the above, Hon’ble Calcutta High Court has passed an interim order restraining the respondent authorities concerned from deducting tax on source under Section 194N till 30th September, 2021.

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Quarterly MCA / ROC Updates, Including Covid-19 relaxations / updates (April 2021 – June 2021)

Quarterly MCA / ROC Updates (April 2021 – June 2021)

Including Covid-19 relaxations / updates

MCA21 is an e-Governance initiative of Ministry of Corporate Affairs (MCA), Government of India that enables an easy and secure access of the MCA services to the corporate entities, professionals and citizens of India.

Key MCA / ROC Circulars in brief:

1. New MCA E-form Introduced:  CSR related Compliance

CSR -1 : Filing of Form CSR-1 with the Registrar of Companies (MCA) for registration of entities for undertaking CSR Activities:

Form CSR-1 is required to be filed pursuant to Section 135 of the Companies Act, 2013 and Rule 4 (1) and (2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 as amended/substituted by the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021.

2. MCA issues clarification on spending CSR funds for setting up makeshift hospitals and temporary COVID care facilities:

The Ministry of Corporate Affairs vide its notification dated 22nd April 2021 has clarified that spending of CSR funds for setting up “makeshift hospitals and temporary Covid care facilities” would be treated as an eligible CSR activity.

The companies may undertake the activities of setting up makeshift hospitals and temporary Covid care facilities in consultations with the State governments. This will be allowed so long as companies comply with the Companies (CSR Policy) rules 2014.

3. Relaxation in Maximum Gap between Two Board Meetings:

MCA extended gap between two board meetings by 60 days for first two quarters of financial year 2021-22. According to this, the gap between two consecutive Board Meetings may extend to 180 days during the quarters, April to June and July to August.

4. Relaxation in additional fees for filing of form after due date:

  • In line with the extension provided in General Circular 11/2021 issued by the Ministry of Corporate Affairs, stakeholders shall be allowed to file various forms due for filing between 1st April 2021 to 31st July 2021 under the Companies Act 2013 or LLP Act, 2008 without payment of additional fees up to 31st August 2021. Please refer the list of forms under Latest News Section. List of Forms click here
  • In line with the extension provided in General Circular 12/2021 issued by the Ministry of Corporate Affairs, Additional Fee/Ad valorem fee in respect of Charge documents viz. CHG-1 and CHG-9 shall be calculated after excluding No. of days between 01st April 2021 to 31st July 2021 based on the event date entered in the form.
  • CFSS due date Extended: E-form CFSS-2020 may be filed till 31st August 2021.

5. MCA expands small firm definition, raises turnover and borrowing limits

The ministry of corporate affairs has expanded the definition of small and medium companies (SMC), raising their turnover and borrowing limits. This would enable a wider set of companies to avail of greater flexibility in the accounting standards.

The 388-page notification has defined small and medium companies as unlisted entities which are not banks, financial institutions or insurance firms and have a turnover of up to Rs 250 crore and borrowings up to Rs 50 crore in the immediately preceding accounting year. The threshold has been Rs 50 crore and Rs 10 crore for turnover and borrowings under the general accounting standards.

“SMC which is a holding company or subsidiary company of a non-SMC will not qualify as a small and medium company.” The notification also says that an existing company which was not a small and medium company previously but became so subsequently would not be able to avail of any exemptions in accounting standards. It can avail of these exemptions if it continues as a small and medium company for two consecutive accounting periods.

Monthly Updates with official links

Monthly Updates / Circulars / Notification – April 2021

  Sl.    Particulars of the Circulars  Link
1E-form INC-6 revised as per Companies (Incorporation) Second Amendment Rules, 2021 is now available for filing.  Click Here
2CSR-1 Form is now available for filing as e – Form.Click Here
3Companies (Audit and Auditors) Second Amendment Rules, 2021Click Here
4Company (Accounts) Second amendment Rules, 2021Click Here
5.MCA registers 1.55 lakh company incorporations in FY 2020-21, an increase of 27% year-on-year  Click Here
6.Fund raising for Public Issues and Rights Issues registered an increase of 115% and 15% respectively in FY 2020-21  Click Here
7TheCompanies (Audit and Auditors) Second Amendment Rules, 2021Click Here
8TheCompanies (Accounts) Second Amendment Rules, 2021.Click Here
9TheInsolvencyand Bankruptcy Code (Amendment) Ordinance, 2021Click Here
10TheInsolvency and Bankruptcy Code (Amendment) Ordinance,2021 – Provision notified  Click Here
11TheInsolvency and Bankruptcy (prepackaged insolvency resolution process) Rules, 2021  Click Here
12Publication of notice u/s 75 of the LLP Act, 2008 read with Rule 37 (2) of Limited Liability Partnership Rules, 2009  Click Here
13MCA AppealClick Here
14Clarification on spending of CSR funds for setting up temporary COVID Care facilities and makeshift hospitals-reg.  Click Here
15Publication of notice u/s 75 of the LLP Act, 2008 read with Rule 37 (2) of Limited Liability Partnership Rules, 2009  Click Here
16Cabinet approves Amendments to the Finance Bill, 2021Click Here

Monthly Updates / Circulars / Notification – May, 2021

  Sl.    Particulars of the Circulars  Link
1Relaxation of time for filing certain forms under the Companies Act, 2013Click Here
2Relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013  Click Here
3Gap between two board meetings under section 173 of the Companies Act, 2013 (CA-13) – Clarification – reg.  Click Here
  4The Ministry has issued General Circular No. 06/2021 and07/2021 on 3rd May, 2021 allowing stakeholders to file various forms due for filing during 01/4/2021 to 31/05/2021 under the Companies Act, 2013/LLP Act, 2008 by 31st July, 2021 without payment of additional fees.  Click Here
5.Clarification on spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’ etc.  Click Here
6.Extension in the last date of receipt of Application for Recruitment for the Post of Driver in NFRA on Deputation/ Re-employment  Click Here
7Please refer the attached file for the list of forms for which additional fee waiver is made available as per Circular no. 06/2021 and 07/2021. Stakeholders may please take note and plan accordingly.    Click Here
8Ministry of Corporate Affairs nudges Sebi on startup listing rulesClick Here
9Publication of provisional database for the companies under the regulatory ambit of National Financial Reporting Authority  Click Here
10Deemed approval given under Green Channel to Kyndryl Holdings LLC and Grand Ocean Managed Infrastructure Services Private Limited for internal restructuring of IBM Corporation    Click Here
11Clarification on spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’ etc.  Click Here
12Clarification on offsetting the excess CSR spent for FY2019-20 – reg.Click Here
13List of forms providing waiver of additional fee as per Circular no. 06/2021 and 07/2021 – Total 40 forms added to extension List Due date has been extended till 31st July, 2021  Click Here
14Minister of State for Finance and Corporate Affairs Shri Anurag Singh Thakur launches 1st Phase of MCA21 Version 3.0 Revamped website, e-Book, e-Consultation module and new email services deployed for better stakeholders’ experience introduced  Click Here

Monthly Updates / Circulars / Notification – June, 2021

  Sl.    Particulars of the Circulars  Link
1MCA New V3 Website OverviewClick Here
2Companies (Incorporation) 4th Amendment Rules 2021Click Here
3Companies (Meetings of Board and its Powers) Amendment Rules 2021Click Here
4Please refer the attached file for the list of forms for which additional fee waiver is made available as per Circular no. 06/2021 and 07/2021. Stakeholders may please take note and plan accordingly  Click Here
5.Publication of notice u/s 75 of the LLP Act, 2008 read with Rule 37 (2) of Limited Liability Partnership Rules, 2009  Click Here
6.Union Minister of State for Finance and Corporate Affairs Shri Anurag Singh Thakur launches IEPFA’s 6 modules of short films titled “Hisab Ki Kitaab”  Click Here
7National Financial Reporting Authority seeks comments/suggestions from public and stakeholders on consultation paper on NFRA’s engagement with its stakeholders  Click Here
8Companies (Indian Accounting Standards) Amendment Rules, 2021Click Here
9Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021Click Here
10The Companies (Accounting Standards) Rules, 2021.Click Here
11clarification on passing of ordinary and special resolutionsClick Here
12Relaxation on levy of additional fees in filing of certain Forms under the Companies Act, 2013 and LLP Act 2008 – Extension of time  Click Here
13Relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013-Extension of time – reg.  Click Here
  14Refer the attached file for the list of forms for which additional fee waiver shall be made available/ extended in line with the General Circulars 11/2021 and 12/2021. Stakeholders may please take note and plan accordingly. CFSS Due Date Extended    Click Here
    15.In line with the extension provided in General Circular 11/2021 issued by the Ministry of Corporate Affairs, stakeholders shall be allowed to file various forms due for filing between 1st April 2021 to 31st July 2021 under the Companies Act 2013 or LLP Act, 2008 without payment of additional fees up to 31st August 2021. Please refer the list of forms under Latest News Section.      Click Here
    16.In line with the extension provided in General Circular 12/2021 issued by the Ministry of Corporate Affairs, Additional Fee/Ad valorem fee in respect of Charge documents viz. CHG-1 and CHG-9 shall be calculated after excluding No. of days between 01st April 2021 to 31st July 2021 based on the event date entered in the form    Click Here
17.eform CFSS-2020 may be filed till 31st August 2021. Stakeholders may please note and plan accordingly.Click Here

Bio of Author: CS LALIT RAJPUT

Company Secretary having 6+ years of post qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms and LLP. He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Read more at: Update CS / CA / CMA – Multi Disciplinary Partnership Firms allowed from now on. CAs can have partnership with CMAs and CSs

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Bombay High Court’s Judgement on Section 245 of the Income Tax Act: Tata Communications Ltd vs UOI

Court: Bombay High Court

CORAM: Abhay Ahuja J, Sunil P. Deshmukh J

SECTION(S): 245 of the Income Tax Act

GENRE: Domestic Tax

COUNSEL: Atul Jasani, Harsh Kapadia, J.D. Mistri, Suresh Kumar

DATE: April 6, 2021 (Date of pronouncement)

DATE: April 24, 2021 (Date of publication)

A.Y.: 2019-20

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Section 245 Adjustment of Refund: The Dept has not complied with the requirements of s. 245 of the Act. It is difficult to appreciate the stand of the Dept that the order passed by the high court would not cover/operate over the matters and orders passed by the ITAT, Union of India being not a party to the matter. Such a justification from and the approach of, the authorities is difficult to be approved of which is not in fitness of stature, especially of the state department, which is supposed to act like a model litigant (All imp judgements on s. 245 referred).

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GST Webinars on recent functionalities related to Returns, Ledgers and Payments deployed on GST Portal

GSTN has recently implemented certain new functionalities on the GST Portal related to Returns, Ledgers and Payments.

For creating awareness amongst all the stakeholders, GSTN is holding webinars, as per details given below:

Webinar TopicNew functionalities related to Returns, Ledgers and Payments deployed on GST Portal
Language of webinarHindiTamilEnglishMarathi
Date14.07.2021Wednesday16.07.2021Friday20.07.2021Tuesday28.07.2021Wednesday
Time1600 Hrs to 1630 Hrs1600 Hrs to 1630 Hrs1600 Hrs to 1630 Hrs1200 Hrs to 1230 Hrs
SpeakerSh. Sanjay Kumar Sharma, SM, GSTNSh. Rafi Ahmed Kidwai, Manager, GSTNSh. Sanjay Kumar Sharma, SM, GSTNSh. Bhagwan Patil,VP, GSTN
You tube link to joinhttps://youtu.be/1GUqZ2uoctYhttps://youtu.be/c3vInoyv8Jshttps://youtu.be/QDtX-cnYi04https://youtu.be/Mx01B2KQ0cY

During these sessions, viewers can post their Queries in LiveChat / Comments section which will be responded to by our panel.


Recording of these sessions will also be available on GSTNs dedicated YouTube channel, at https://www.youtube.com/channel/UCFYpOk92qurlO5t-Z_y-bOQ for viewing later on.

You all are requested to join the session in the language of your choice to benefit from the same.

Read Regular GST, INCOME TAX, MCA/ROC NEWS? Install TaxConcept App

AAR Gujarat’s Judgement on ‘Financial Institution’ for the Purpose of Section 17(4) of the CGST Act and GGST Act

Case: National Dairy Development board. Dated: 20.2.2019

Query: Whether Applicant is considered as ‘Financial Institution’ for the purpose of section 17(4) of the CGSTAct and GGST Act.

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Ruling by AAR: M/s National Dairy Development Board (GSTIN 24AADCN2029C1Z5) is to be considered as “Financial Institution” for the purpose of section 17(4)of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017.

To Download Complete Facts and Judgement, Please Click Here

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Cabinet approves “India COVID 19 Emergency Response and Health Systems Preparedness Package: Phase II” at a cost of Rs 23,123 crore

The Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi today has approved a new scheme ‘India COVID-19 Emergency Response & Health System Preparedness Package: Phase-II’ amounting to Rs. 23,123 crore for FY 2021-22. This scheme aims to accelerate health system preparedness for immediate responsiveness for early prevention, detection and management, with the focus on health infrastructure development including for Paediatric Care and with measurable outcomes.

The Phase-II of the Package has Central Sector (CS) and Centrally Sponsored Schemes (CSS) components.

Under the Central Sector components,

  • Support would be provided to Central Hospitals, AIIMS, and other Institutions of National Importance under DoHFW (at VMMC & Safdarjung Hospital, Delhi, LHMC & SSKH, Delhi, RML, Delhi, RIMS, Imphal and NEIGRIMS, Shillong, PGIMER, Chandigarh, JIPMER, Puducherry and AIIMS Delhi (existing AIIMSs) and new AIIMSs under PMSSY) for repurposing 6,688 beds for COVID management. 
  • National Centre for Disease Control (NCDC) would be strengthened by providing Genome Sequencing machines, besides sanctioning Scientific Control room, Epidemic Intelligence Services (EIS) and INSACOG Secretariat support.  
  • Support would be provided for implementation of Hospital Management Information System (HMIS) in all the District Hospitals of the Country (presently, it is implemented only in 310 DHs). All district –hospitals would implement HMIS through NIC developed E-Hospital and CDAC developed E-Shushrutsoftwares. This will be the biggest impetus for implementation of the National Digital Health Mission (NDHM) at the DHs. This support includes the support provided to the District Hospitals towards augmentation of the hardware capacity.
  • Support would also be provided for expanding the National Architecture of eSanjeevani Tele-consultation platform to provide upto 5 lakhs tele-consultations per day from the present 50,000 Tele-consultations per day. This includes support to the States/UTs to enable tele-consultations with the COVID patients at the COVID Care Centres (CCCs) by strengthening Hubs for eSanjeevani Tele-consultation in all the districts of the country.
  • Support would also be provided for IT interventions, including strengthening the Central War room at DoHFW, strengthening Country’s COVID-19 Portal, 1075 COVID help lines and COWIN platform.   

Under the CSS components, the efforts are aimed at strengthening district and sub district capacity for an effective and rapid response to the pandemic.  States/UTs would be supported to:

  • Create Paediatric units in all 736 districts and also, to establish Paediatric Centre of Excellence (PaediatricCoE) in each State/UT, (either in Medical Colleges, State Govt. Hospitals or Central Hospitals such as AIIMS, INIs, etc) for providing Tele-ICU services, mentoring and technical hand-holding to the District Paediatric units.
  • Augment 20,000 ICU beds in public healthcare system out of which 20% will be Pediatric ICU beds.
  • Provide care closer to the community due to the ingress of COVID-19 in rural, peri-urban and tribal areas, by creating pre-fabricated structures for adding additional beds at the existing CHCs, PHCs and SHCs (6-20 bedded units) and support would also be provided to establish bigger field hospitals (50-100 bedded units) depending on the needs at tier-II or Tier-III cities and district HQs.
  • Install 1050 numbers of Liquid Medical Oxygen Storage Tanks with Medical Gas Pipeline System (MGPS), with an aim to support at least one such unit per district.
  • Augment the existing feet of ambulances – 8,800 ambulances will be added under the package.
  • Engage Undergraduate and post graduate medical interns and final year MMBS, BSc, & GNM nursing students for effective COVID management.
  • As “Test, Isolate and Treat” and following-up COVID Appropriate Behaviour at all the times, is the national strategy for effective COVID-19, support is provided to the States to maintain at least 21.5 lakhs per day.
  • Flexible support to the Districts for meeting the requirement of essential medicines for COVID-19 management, including creation of buffer stock.    

“India COVID-19 Emergency Response and Health Systems Preparedness Project: Phase-II” would be implemented at a total cost of ₹ 23,123 Crore, from 01″ July 2021 to 31″ March 2022 with central and state share as under:

  • Central Share of the ECRP-II –Rs.15,000 crore
  • State Share of the ECRP-II –Rs.8,123 crore

 With the focus on immediate needs for the next nine months of FY 21-22, to provide support to Central government hospitals / agencies and to State/UT Governments to augment their existing response to the second wave and the evolving pandemic, including at district and sub district levels in peripheral facilities.

Background:

In March 2020 last year, when the country was faced with the first wave of the COVID 19 pandemic, the PM announced a Central Sector Scheme of Rs. 15,000 crorefor the “India COVID 19 Emergency Response and Health Systems Preparedness Package”, providing a critical impetus to the efforts of MoHFW and States/UTs, and catalysing health systems activities for pandemic management.  Since mid-February 2021, the country is experiencing a second wave with spread into rural, peri-urban and tribal areas.  

Shri Pankaj Chaudhary takes charge as Minister of State in the Ministry of Finance

Shri Pankaj Chaudhary took charge as Minister of State in the Ministry of Finance, here today.

Shri Chaudhary is a Member of Parliament (MP) from Maharajganj in Uttar Pradesh in the 17th Lok Sabha. He is currently serving his sixth term as an MP. Active in public service for over three decades, Shri Chaudhary has also held the post of Deputy Mayor of Gorakhpur in the past.

Shri Chaudhary is a graduate from Gorakhpur University and is 56 years old.

Yesterday, Dr Bhagwat Kishanrao Karad had also joined as Minister of State in the Ministry of Finance.

Income Tax Department conducts searches in Hyderabad (real estate activities)

Income Tax Department carried out a search and seizure operation on 06.07.2021 on a group based in Hyderabad. The group is engaged in real estate, construction, waste management and infrastructure. The activities of waste management are spread across India while real estate activities are mainly concentrated in Hyderabad.

During the course of search and seizure operation many incriminating documents, loose sheets etc were seized indicating involvement of the group in unaccounted transactions. It was found that the group had sold majority stake, to a Non-resident entity based in Singapore, in one of its group concerns during FY 2018-19 and had earned huge capital gains. The group subsequently devised various colourable schemes by means of entering into a series of share purchase/sale/Non arm’s length valued subscription and subsequent bonus issuance etc with related parties, creating a loss which was set off against the capital gains earned. Incriminating evidence/documents have been recovered, which indicate that the loss was artificially created to set off the respective capital gains. The search operation led to detection of artificial loss of approximately Rs. 1,200 crore, which is to be taxed in the hands of the respective assessees.

Further, during the course of the search, it was found that the assessee had incorrectly claimed bad debts to the tune of Rs. 288 crore on account of related party transactions, which was set off against the aforementioned profits earned. During search proceedings, incriminating documents relating to this artificial/incorrect claim were found. Unaccounted cash transactions with the associates of the group have also been detected during the search, and the quantum and modus of the same is under examination.

As a result of the search & seizure operation, and on the basis of various incriminating documents found, the entities and associates have admitted to having unaccounted income of Rs. 300 crore and have also agreed to pay due taxes.

Further investigations are in progress.

RBI has issued a notification to bring retail and wholesale business under the category of Micro, Small and Medium Enterprises (MSME), Get many benefits

The Reserve Bank of India has issued a notification to bring retail and wholesale business under the category of Micro, Small and Medium Enterprises (MSMEs). With this, retail and wholesale business will get the benefit of priority sector loans as per the guidelines of the Reserve Bank. Earlier, on July 2, the Ministry of Micro, Small and Medium Enterprises (MSME) had decided to bring retail and wholesale trade under MSME for priority sector lending.

The revised guidelines will benefit 2.5 crore retail and wholesale traders. This will also allow them to get themselves registered on the Udyam Portal for MSMEs.

Like MSMEs, loans will be available from banks on priority basis under the guidelines of the Reserve Bank of India. Banks have to keep a part of their total debt for these sectors.

Now retailers and wholesalers will be able to register themselves on the enterprise portal. Only businessmen registered on the enterprise portal of the Ministry of MSME can take advantage of the government scheme related to MSME.

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