Hello Readers,
Greetings of the Day ! 🙏
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Today's Word of Wisdom -
We can become matured & truly educated only when we develop the ability to listen our own negative comments, and digest it without losing temper & confidence.
सबसे अधिक समझदार वह है जो अपनी कमियो को जानकर उनका सुधार कर सकता हो।
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22 January 2018 Updates 📄📄📄
No Service Tax on Documentation Services provided by Automobile Dealers: CESTAT [Read Order]
Read more at: http://www.taxscan.in/no-service-tax-documentation-services-provided-automobile-dealers-cestat/16565/
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SC stays High Court proceedings on Petitions relating to GST on Sanitary Napkins: To Examine If Cases fit for Apex Court
Read more at: http://www.taxscan.in/sc-stays-high-court-proceedings-petitions-relating-sanitary-napkins-examine-cases-fit-apex-court/16556/
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Govt Notifies Amendment to Tax Return Preparer Scheme: Person Qualifying CA/CS/CMA Inter-level Exam is Now Eligible to act as TRP [Read Notification]
Read more at: http://www.taxscan.in/govt-notifies-amendment-tax-return-preparer-scheme-2006/16545/
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A person qualifying CA/CS/CMA inter-level exam shall be eligible to act as TRP; CBDT amends TRP scheme, 2006
CBDT has widen the definition of person who is eligible to act as a Tax Return Preparer (TRP). Now not only an individual, who holds a bachelor degree from a recognised Indian university but also an individual who has passed the intermediate level examination conducted by the ICAI or ICSI or CMA shall be eligible to act as a TRP under Tax Return Preparer Scheme, 2006.
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Tax Arrears of deceased Assessee can’t be Recovered out of Personal Properties of Wife: Gujarat HC [Read Judgment]
Read more at: http://www.taxscan.in/tax-arrears-deceased-assessee-recovered-personal-properties-wife-gujarat-hc/16570/
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# *IBBI* has notified the Insolvency and Bankruptcy Code (Amendment) Act, 2018 after it has received the assent of the President on the 18 JAN 2018 and shall be deemed to have come into force on the 23rd day of November, 2017.
# *GST Council* has recommended Policy Changes in GST Laws – Press Release, dt.18.01.2018, which includes,
1. The late fee payable by any registered person for failure to furnish Form GSTR-1 (supply details), Form GSTR-5 (Non-resident taxable person) or Form GSTR-5A (OIDAR) is being reduced to fifty rupees per day and shall be twenty rupees per day for NIL filers. The late fee payable for failure to furnish Form GSTR-6 (Input Service Distributor) shall be fifty rupees per day.
2. Cancellation of voluntary registration will now be permitted even before the expiry of one year from the effective date of registration;
3. For migrated taxpayers, the last date for filing Form GST REG-29 for cancellation of registration is being extended till 31.03.2018;
4. The facility for generation, modification and cancellation of e-way bills is being provided on trial basis on the portal ewaybill.nic.in.
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No Addition since Assessee Refunded the Advances received from Property Buyers for Breach of Contract: ITAT [Read Order]
Read more at: http://www.taxscan.in/no-addition-since-assessee-refund-advances-received-property-buyers-breach-contract-itat/16514/
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✳Direct Tax:
▶Delhi ITAT upholds revision u/s 263 in order to tax gift received by assessee-HUF from mother of Karta (not member of HUF) u/s 56(2)(vii) for AY 2013-14; During relevant AY, assessee received 75000 equity shares from mother of the Karta of assessee-HUF, rejects assessee’s stand that the said gift was not covered by 56(2)(vii) taxability as it would qualify as gift from ‘relative’;
[TS-10-ITAT-2018(DEL)]
▶Rajasthan HC upholds ITAT order, allows capital gains relief u/s. 54B and Sec. 54F to assessee-individual for AY 2010-11 for depositing the un-utilized net sale consideration in the capital gain account scheme (CGAS) within the due date of filing belated tax return u/s. 139(4);
[TS-627-HC-2017(RAJ)]
✳Indirect Tax:
▶CBEC exempts the goods, when imported into India, from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the integrated tax leviable thereon under sub-section (7) of section 3 of the said Customs Tariff Act, subject to the conditions. Vide notification no 4/2018, dated 18th January 2018.
✳Key Dates:
▶Payment of ESI of December: 21/01/2018
▶Payment of TDS on purchase of Property for December: 30/01/2018
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Income Tax Dept sends Notice to 10000 Bit coin Holders. As a nationwide survey revealed that more than $3.5 billion worth of transactions have been conducted over last one and a half year.
Extension for Today 22.01.2018 of last date to pay GST & file GSTR-3B for Dec 2017. Source- GST Portal.
W.e.f 25.1.2018, late filing fee of 20 per day for Nil returns & 50 for others for GSTR-1, 5 & 5A. For GSTR-6, late filing of 50 even for Nil returns.
No GST on Retention Fee charged by Hospitals: Council clarifies Exemptions available to Medical Sector under GST.
SEBI has clarified that NBFCs can invest 25% in REITs: To make real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
The Institute of Chartered Accountants in India (ICAI) has recently signed a memorandum of Understanding with the Jet Airways for providing concessional fare to its members and students.
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📊 *_[ Excel Tips For You ]_* 📈
📍
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🌾 *Topic : Format data by using shortcut keys*
*👉👉 To 👉👉Press*
👉 Display the Style command (Format menu) : *ALT+' (APOSTROPHE)*
👉 Display the Cells command (Format menu): *CTRL+1*
👉 Apply the General number format : *CTRL+SHIFT+~*
👉 Apply the Currency format with two decimal places (negative numbers appear in parentheses): *CTRL+SHIFT+$*
👉 Apply the Percentage format with no decimal places : *CTRL+SHIFT+%*
👉 Apply the Exponential number format with two decimal places : *CTRL+SHIFT+^*
👉 Apply the Date format with the day, month, and year : *CTRL+SHIFT+#*
👉 Apply the Time format with the hour and minute, and indicate A.M. or P.M.: *CTRL+SHIFT+@*
👉 Apply the Number format with two decimal places, 1000 separator, and – for negative values : *CTRL+SHIFT+!*
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*E way Bill*: Nationwide E-Way Bill system for Inter-State movement of goods. The URL for the e-way bill system for the whole nation is http://ewaybill.nic.in
*CASA Budget Talk* on 2nd Feb (10am to1.30pm) at Scope Minar Auditorium, Laxmi Nagar Dist. Center. No Fee
*E-Way Bill* Penalty cannot be imposed for mere delay in producing E-Way Bill: Allahabad High Court - M/S Raj Iron & Building Materials Vs. Union Of India (Allahabad High Court)
*HC allows disqualified director* in a Strike off Company to avail CODS 2018 - Raman Nanda Vs. Union of India And Ors. (Delhi High Court)
*GST*: Form for application of cancellation of registration by (new) taxpayer, is now available on GST portal.
Mobile number and E-mail address of Authorised signatory can be updated.
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👉Exp. incurred on seminar to create awareness amongst doctors on new medical research couldn’t be disallowed.Mumbai(Trib.)
👉Where assessee was not an agriculturist and land sold by him was never put to any agricultural use, mere categorization of land as 'Nilam' in revenue records was not suffice to raise a presumption that it was a case of sale of agricultural land.Kerala HC.
👉NPO : In the case of Anjuman-E-Himayath-E-Islam v. Assistant Director of Income-tax (Exemption)-IV,Chennai [2015] 59 taxmann.com 379 (Chennai - Trib.) it was held that excess application of funds over and above income of trust can arise only when funds are applied from the corpus of the trust, accumulated funds, loans or goods and services received from the creditors. When funds are applied from borrowed funds or by way of sundry creditors the same can be treated as application of funds in the year in which such loan/sundry creditors are re-paid from the income of the trust. However, when amount is applied from the corpus fund or accumulated fund the same cannot be treated as application of funds under section 11, because such funds have already been exempted from the income of trust in the year in which they are received or such amount is set aside. Thus, trust cannot carry forward excess application of funds.
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#Economy:India will overtake China to be the fastest growing large economy in 2018 and the country's equity market will become the fifth largest in the world. According to a report, when the rest of the world offers low growth and insufficient structural change, India, by contrast, is seen as a reforming economy with the prospect of strong long-term growth. At a time when developed economies are cheering 2-3% growth, India is focused on breaching 7.5%. Prospective returns for equities are much higher than the 6-8% that one can expect from fixed income.
#Finance:With barely 10 days for the presentation of the fifth and final Budget of the BJP Govt, PM has indicated it might not be populist. PM said he was open to more changes in the GST. The PM rejected criticism of providing jobless growth, saying "lies" were being spread about employment generation and furnished data from a recent study to say seven million jobs have been created. However, he acknowledged farm distress. He said it was the responsibility of central and state Govts to identify and address farmer issues.
#The richest 1% in India cornered 73% of the wealth generated in the country last year, a survey showed, presenting a worrying picture of rising income inequality. Besides, 67 crore Indians comprising the population's poorest half saw their wealth rise by just 1%, as per the survey released by the international rights group Oxfam hours before the start of the annual congregation of the rich and powerful from across the world in this resort town. The situation appears even more grim globally, where 82% of the wealth generated last year worldwide went to the 1%, while 3.7 billion people that account for the poorest half of population saw no increase in their wealth.
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Insolvency and Bankruptcy Code applies to Personal Guarantors of Corporate Debtors [Read Notification]
Read more at: http://www.taxscan.in/insolvency-bankruptcy-code-personal-guarantors-corporate-debtors/16501/
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ICAI releases Revised Standard on Auditor’s Responsibilities Relating to Other Information
Read more at: http://www.taxscan.in/icai-releases-revised-standard-auditors-responsibilities-relating-information/16496/
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Input Tax Credit is a Substantive Right which can’t be denied merely by Invoking Some Machinery Provisions: Karnataka HC [Read Judgment]
Read more at: http://www.taxscan.in/input-tax-credit-substantive-right-cant-denied-merely-invoking-machinery-provisions-karnataka-hc/16485/
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Big Trouble for Income Tax TDS defaulters, Tis Hazari Court orders IMPRISONMENT for non – compliance*
On 19 January 2018, Tis Hazari Court (‘Court’) orders judicial custody for not paying Income Tax TDS against Directors of Real Estate and IT Solutions based in Delhi. The Court observes that the respective companies violated statutory obligation of the Income Tax Act by deducting TDS but not depositing it in the Government account. The assess company did not file TDS return statements from 3 financial year, (i.e. FY 2013-14, FY 2014-15 and FY 2015-16), amounting to Rs. 45,68,990/-, Rs. 35,45,290/- and Rs. 33,36,970/- respectively.
In December 2017, the Court had issued non- bailed warrant against the Director after serving a show cause notice. In the show cause notice the Court had given the opportunity to the Directors to explain why sanction for prosecution should not be granted under section 278B read with 276B of Income Tax Act for not complying with the provisions of the law in respect of non -deposition of the Income Tax deducted at source. However, after observing the non- serious behaviour of the assess by seeking repeated adjournments, instead of giving reasonable explanations for the defaults during the proceedings. Finally, on 19thJanuary, 2018 Tis Hazari Court the Director of the Real Estate and IT Solutions based in Delhi was taken into custody and was remanded to judicial custody. The accused has been sent to Tihar Jail for the same.
Shri. S. S. Rathore, Principle Chief Commissioner of Income Tax – Delhi, mentions that “the Department is very serious about timely depositing of the TDS deducted by the employers. It is reiterated that the TDS is Government money which has to be deposited in Treasury on timely basis. Failure to deposit the tax deducted will lead to criminal prosecution with imprisonment from 3 months to 7 years.” In addition, The Principal Chief Commissionerate, New Delhi states that the department has sanctioned the prosecution in approximately 240 cases which clearly shows the strict attitude of Income Tax Department towards the defaulters.
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The NCLAT has held that NCLT while considering company petition under Sec 10 of Insolvency and Bankruptcy Code by the company itself, NCLT cannot consider any other facts as may be raised by Financial or Operational Creditor. Once requirement of Section 10 is satisfied and Company is not disqualified under Sec 11 i.e.(1) corporate debtor is not undergoing corporate insolvency resolution process (2) corporate debtor having completed corporate insolvency resolution process more than 12 months from the date of making an application before NCLT (3) corporate debtor has not violated terms of insolvency resolution plan which was approved more than 12 months before the date of making application (4) no liquidation order has been passed against corporate debtor. However mere pendancy of winding petition before High Court shall not disqualify ( winding up order hss been passed) the corporate debtor to make an application under Sec.10 of IBC code and such application shall be admitted by the NCLT
Antrix Diamond Exports P. Ltd MANU/NL/0003/2018.
(This is extremely good judgement laying down yardstick of admission of a petition by the company itself under Section 10 of IBC Code.
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Forwarded as Received
How to deal Stay for Income-tax Demands ?
Every Tax practitioner has to face in case of stay of income tax demands in each case where he is not able to meet the AO's expectations (pun intended)!!
On a serious note , it is important to have the figures of returned income and assessed income to really make out a better case.
1. An application must be moved within 30 days of the service of the order to remain compliant with section 221.
2.The application should be in complete detail with the following:
(1) returned income
(2) assessed income
(3) the disputed additions
(4) how your case is covered by the judgments
(5) and how payment will jeopardize the business due to financial constraints etc.
3.The AO's generally pass a short order rejecting the stay application which is unjustified, and then move on to the Addl. CIT and then CIT. In case not accepted you can take it up with CIT(A) who has the powers to grant stay as an appellate authority.
4. In case the assessment has been framed at more than twice the income you take cover of the Delhi HC orders in the Valvoline and Soul which have confirmed the CBDT Circular that no recovery shall be made in such cases till the disposal of the 1st appeal. This can also be mentioned in the stay application. Some other judgments may also helpful these are given below:
(1) Instruction no. 1914 of 1993 dt. 02.12.1993
(2) Circular No. 589 - Imp
(3) 220 CTR 211 (Del) - Soul – V Important. Also discusses Valvoline
(4) Valvoline
(5) 216 CTR 139 – Subhash Chander
(6) 258 ITR 291 – JCT Ltd.
(7) 222 CTR 521 Taneja
(8) 256 ITR 698 – Bongaigaon
(9) RPG Mumbai
(10) NO RECOVERY till 154 Application not disposed off – 191 ITR 179
(11) Order of the AO should be speaking order – B R Balakrishnan 119 Taxman 974 Bom
(12) Maruti Udyog Ltd.
5. Also it is suggested:
(1) move an application for early fixation of appeal with copy to CCIT and CIT
(2) keep your bank balance low and keep an alternate bank account ready and operational
(3) keep bank manager in good humor as (a) he should inform you of attachment and permit you to withdraw the available amounts before attachment (b) In case of OD limits he can write back to the AO that attachment is not possible as the limits have been granted to conduct business and not payment of taxes – this will give you a couple of days to make adjustments.
6.If possible apply for a rectification for as long as the rectification application is pending no recovery can be made (see 191 ITR 179)
7. I also bring to your notice the following directions of the CBDT:
CBDT Inst. 987. Prevention of unrealistic over-assessments
1. Reference is invited to the Board's Instruction No.376 [F.No.277/2/70-IT(J)], dated the 1st February , 1972 and the earlier instruction cited therein.
2. Instances continue to come to the notice of the board about unrealistic over-assessments made by assessing officer under various direct tax Acts. This causes unnecessary hardship to the assessees and tarnishes the image of the Department; there is avoidable litigation and recovery problems arise in respect of the consequential insupportable and exaggerated tax demands.
3.The board would like therefore to impress once again upon the commissioners that they should advise the assessing officers in their charge to eschew unjustified over-assessments. The assessments have to be made in the reasonable and fair manner after considering all the relevant circumstances of the case. Even where an assessment has to be made ex parte, the information available should be reasonably weighed and a proper estimate made in the exercise of best judgments in the circumstances. There should be no tendency to frame assessments even in such cases mechanically on past basis, if there is evidence to the contrary e.g., the business of the concern has become defunct or is in clearly adverse circumstance.
4. If unjustified over-assessments are avoided, this will inter alia curtail the feature of exaggerated demands which unnecessarily inflate our arrears figures.
These instructions may be brought to the notice of all officers in the charge and very careful watch kept over their compliances. The erring officials should be properly advised and where necessary pulled up.[ F.No.246/27/73-A & PAC, dated the 27th July, 1973 from C.B.D.T].
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Govt Launches New Self Help Portal for GST Queries
Read more at: http://www.taxscan.in/govt-launches-self-help-portal-gst-queries/16469/
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Bitcoins: IT Dept sends Notice to 10000 Cryptocurrency Holders
Read more at: http://www.taxscan.in/bitcoins-dept-sends-notice-10000-cryptocurrency-holders/16425/
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📺 *Updates*
➡1. Withdrawal of registration was valid if trust didn't prove that donation was given to society registered u/s 12A
Winsome Foundation v. Commissioner of Income-tax-I, Chandigarh*
➡2. Exp. incurred on seminar to create awareness amongst doctors on new medical research couldn’t be disallowed
Solvay Pharma India Ltd. v. Principal Commissioner of Income-tax.
➡3. No further extension of time for repayment of deposit could be allowed when CLB had already given relief to co.
NATIONAL COMPANY LAW TRIBUNAL, CHANDIGARH BENCH. Ind-Swift Ltd.,
🙏Thank you🙏
Have a nice day