Delhi High Court in the case of Concentrix Services Netherlands B.V. vs Income Tax Officer (TDS), W.P. (C) 9051/ 2020 and in Optum Global Solutions International B.V. vs Deputy Commissioner of Income Tax, W.P. (C) 882/ 2021, had held that the lower tax rate of 5% on dividends as envisioned in the tax treaty concluded between India and Slovenia, the said beneficial (provision) treatment be read and applied in the India-Netherlands Tax Treaty.
Income Tax Department almost 80 per cent of the posts of chief commissioners were lying vacant for several months. Some of the vacancies had not been filled for as long as about a year. What this essentially meant was that against 91 approved positions of chief commissioners, only 18 had been filled.
GST: Cost of diesel incurred as part of a composite service will attract GST even though the fuel itself has not been included under the new indirect tax system, it has been held.
In a significant order, the Karnataka bench of Authority for Advance Ruling (AAR) has ruled that the cost of the diesel incurred for running diesel generator (DG) sets in the course of providing DG rental service is nothing but additional consideration for the supply of DG sets on rent as per section 15 of the CGST/KGST Act and hence attracts 18 percent GST (CGST @9 percent and KGST @ 9 per cent).
Foreign banks have been forced to unwind billions of dollars worth of profitable currency trades at the behest of India’s central bank. The issue in focus is a flurry of currency swap trades that involved the banks converting rupee-denominated deposits into dollars that were then used to buy foreign sovereign debt including U.S. Treasuries, which are unlisted in India.
RBI has provided that Cash-out at any ATM of more than ten hours in a month will attract a flat penalty of ₹ 10,000/- per ATM with effect from 1st October 2021.
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⚫Retail inflation fell to a three-month low of 5.59% in July from 6.26% in the previous month as the rate of price rise in food items, particularly vegetables, declined.
⚫India's industrial production grows 13.6% in June on low base effect.
⚫The FMCG market in India grew 36.9% yoy in the April-June quarter despite lockdowns in various parts of the country.
⚫Govt's retro tax settlement with Cairn Energy may hinge on Vedanta case. India lost the international arbitration with Cairn Energy at The Hague in December and the former was given an award of $1.2 billion.
⚫India recorded 40,078 new Covid-19 cases.
⚫Over 100,000 coronavirus cases reported in the United States for the fourth consecutive day.
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Respected Members
SLP dismissed against High Court ruling that deduction under section 80-IB was to be allowed where completion certificate was issued by registered architect as per State Municipal Corporation Act and; deduction could not be denied merely because completion certificate was not issued by local authority
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Profits and gains from industrial undertaking other than infrastructure development undertakings (Housing project) - Assessee-developer claimed deduction under section 80-IB. Assessing Officer disallowed same on ground that completion certificate was issued by a registered architect. Earlier letters were written by assessee to Commissioner of City Municipal Corporation to issue occupancy certificate. Copies of these letters were made available to Assessing Officer which were ignored. High Court by impugned order held that completion certificate referred to in section 310 of Karnataka Municipal Corporation Act, 1976 refers to completion certificate issued by architect, engineer or supervisor; thus, revenue’s contention that completion certificate was required to be issued by local authority as prescribed under second Explanation to section 80-IB(10) could not be accepted. It further held that since assessee had furnished certificate of registered architect before Assessing Officer and established that project had been completed within stipulated period, deduction under section 80-IB was to be allowed. Special leave petition filed against impugned order of High Court was to be dismissed. [In favour of assessee] (Related Assessment year : 2008-09) - [PCIT v. Majestic Developers (2021) 278 Taxman 187 : 125 taxmann.com 82 (SC)]
Where assessment order clearly records satisfaction for imposing penalty on one or other, or both grounds mentioned in section 271(1)(c), a mere defect in notice, not striking off irrelevant matter would vitiate penalty proceedings
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For concealment of income (Recording of satisfaction) - Where assessment order clearly records satisfaction for imposing penalty on one or other, or both grounds mentioned in section 271(1)(c), a mere defect in notice-not striking off irrelevant matter would vitiate penalty proceedings. Since penalty proceedings culminate under a different statutory scheme that remains distinct from assessment proceedings, therefore, assessee must be informed of grounds of penalty proceedings only through statutory notice. Even if notice contains no caveat that inapplicable portion be deleted, it is in interest of fairness and justice that notice must be precise, it should give no room for ambiguity. [In favour of assessee] - [Mohd. Farhan A. Shaikh v. DCIT(C), Belgaum (2021) 434 ITR 1 : 125 taxmann.com 253 (Bom.)]
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⚫PM formally launched the National Automobile Scrappage Policy, which would attract investments of about Rs 10,000 crore. The policy would also help in getting rid of unfit and polluting vehicles in a scientific manner.
⚫The Centre may set up an independent regulatory authority for the e-commerce sector.
⚫India exported goods worth $35.43 billion in July, the highest first time ever in a month, due to recovery in key global markets and robust demand.
⚫Faceless' authority proposes restructuring in I-Tax dept. Calls for merger of supervisory officers at CIT level and above.
⚫66 Delta plus patients found in Maharashtra so far, some of them fully vaccinated.
⚫Students caught in a logjam in the run-up to Fall semester. With Canada, Australia extending restrictions, admission seekers are deferring their studies or looking elsewhere.
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Ministry of Corporate Affairs
MCA amends Schedule III of Companies Act on disclosure norms in financial statements
๐In order to bring in greater transparency in reporting of financial statements, the Ministry of Corporate Affairs (MCA) vide notification dated 24.03.2021 has amended the Schedule III to the Companies Act, 2013 effective from 01st April, 2021 to mandate various disclosures by companies in their financial statements.
๐The new disclosures with respect to the virtual currency/crypto currency transactions and CSR spending undertaken by companies during a financial year are:-
1. Details of Crypto Currency or Virtual Currency
Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the following shall be disclosed:-
a. profit or loss on transactions involving Crypto currency or Virtual Currency
b. amount of currency held as at the reporting date,
c. deposits or advances from any person for the purpose of trading or investing in Crypto Currency/virtual currency.
2. Details of Corporate Social Responsibility (CSR)
Where the company covered under section 135 of the companies act, the following shall be disclosed with regard to CSR activities:-
A. amount required to be spent by the company during the year,
B. amount of expenditure incurred,
C. shortfall at the end of the year,
D. total of previous years shortfall,
E. reason for shortfall,
F. nature of CSR activities,
G. details of related party transactions, e., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard,
H. where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately.
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⚫The Indian Railways has entrusted the Rail Land Development Authority to redevelop additional 49 railway stations across the country.
⚫The RBI notified the enhancement of collateral free loans to self-help groups to Rs 20 lakh under Deendayal Antyodaya Yojana - National Rural Livelihoods Mission.
⚫About 58.2 million accounts under PM Jan Dhan Yojana are inoperative as on July 28, 2021.
⚫Sebi examines Ant Group and Alibaba holdings in IPO-bound Paytm. To become a professionally managed company, no single entity can own more than 25% in Paytm
⚫The RBI has asked banks and ATM operators to put in place a robust system that will allow them to monitor the availability of cash in ATMs and ensure timely replenishment to avoid cash-out situations.
⚫65% of the tuberculosis cases in India are in the 15-45 age group, which is the most economically productive population segment.
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✅ Important Announcement - Schedule of ICAI Chartered Accountancy Examinations - December 2021
https://resource.cdn.icai.org/65998exam100821.pdf
✅ MCA amen(. ds Schedule III of Companies Act on disclosure norms in financial statements* effective from 01st April, 2021 to mandate various disclosures by companies in their financial statements. https://pib.gov.in/PressReleasePage.aspx?PRID=1744542
✅The last date for mandatory Updation of IEC is extended till 31.08.2021.
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๐ฎ Ethics of the Day๐ต๐ป
๐ต️ FAQ: Can a Chartered Accountant in practice pay to any person any share, commission or brokerage in the fees or profits of his professional business*?
๐ Ans : No, Clause (2) of Part-I of the First Schedule to the Act prohibits a Chartered Accountant in practice from paying or allowing any share,
commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of the deceased partner or a member of any other professional body or with such other persons having such qualifications as may be prescribed, for the purpose of rendering such professional services from time to time in or outside India.
๐ต️ FAQ : Can a Chartered Accountant in practice share his fees with the Government in respect of Government Audit?
๐ Ans : The Institute came across certain Circulars/Orders issued by the
Registrar of various State Co-operative Societies wherein it has been
mentioned that certain amount of audit fee is payable to the concerned
State Govt. and the auditor has to deposit a percentage of his audit fee in the State Treasury by a prescribed challan within a prescribed time of the receipt of Audit fee.
In view of the above, the Council considered the issue and while noting that the Government is asking auditors to deposit such percentage of their audit fee for recovering the administrative and other expenses incurred in the process, the Council decided that as such there is no bar in the Code of Ethics to accept such assignment wherein a percentage of professional fees is deducted by the Government to meet the administrative and other expenditure.
๐ต️ FAQ Can a member share profits with the widow of his deceased partner?
๐ Ans : Yes, when there are two or more partners and one of them dies, the widow of the deceased partner can continue to receive a share of the profit of the firm. A legal representative, say widow of a deceased partner, would be entitled to share the profits only where the partnership agreement contains a provision that on the death of the partner his widow or legal representative would be entitled to such payment by way of sharing of fees or otherwise for the specified period.
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⚫PM said his Govt had taken a host of bold economic decisions such as scrapping retro tax and initiating farm and labour reforms, and called upon India Inc to enhance its risk-taking appetite to take advantage of them.
⚫Hailing the passage of a bill that restores states' rights to identify Other Backward Classes, PM said that it underscores his Govt's commitment to ensuring dignity, opportunity and justice to the marginalised sections.
⚫RBI buys record gold this year. The central bank's gold reserves stood at 705.6 tonnes as on June 30.
⚫A bill to allow privatisation of state-run general insurance co's got parliamentary assent
⚫Over 100,000 coronavirus cases reported in the United States for the third consecutive day.
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