🔰 Lassi is Exempted under GST
✅ In M/s. Sampoorna Dairy and Agrotech LLP. [Advance Ruling No. GUJ/GAAR/R/30/2021 dated July 19, 2021], M/s. Sampoorna Dairy and Agrotech LLP. ( “the Applicant”) has sought an Advance Ruling on whether the product “Lassi” but named as “Laban” is to be classified as Lassi itself and whether the same is exempted under the Central Goods and Services Act, 2017 ( “CGST Act” ).
Read More at: http://www.a2ztaxcorp.com/lassi-is-exempted-under-gst/
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📚 Incentive paid to Director in recognition of his services is allowable under section 36(1)(ii) of the Income-tax Act: ITAT Bench of Mumbai in the case of DCIT vs. VVF Limited [ITA/6908/2019].
🌴 Facts and finding: The Assessee Company paid an incentive of Rs.2.50 Crores to a Director who was holding 68% shareholding and claimed it as deduction under section 36(1)(ii). Assessee submitted that the Director played a significant role in exceling the Assessee's business and growth without drawing any remuneration for 3 years, therefore, in recognition of his contribution, such amount was paid which was approved by a board resolution and a special resolution in the EGM. The Revenue contended that transaction is done to be a device to extend benefits to the Director and avoid dividend distribution tax.
🫐 The ITAT bench of Mumbai deleted the disallowance appreciating the Assessee’s contention and observed that the Revenue’s allegation of violation of corporate law provisions not supported by concrete material on record; and accordingly given the remarks that if it was a dividend which was paid in the name of incentive, similar payments would have been made to the other shareholders of the company.
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⚫The Govt is considering allowing FDI in LIC of India.
⚫Infosys becomes 4th Indian company to touch $100 bn market capitalisation.
⚫Real estate investment trusts and infrastructure investment trusts will now be included in the Nifty indices after the NSE revised the criteria for their inclusion.
⚫Indian co's have likely spent over Rs 1 trillion on CSR projects since a mandatory law came into effect.The amount for the FY21 is likely to cross Rs 22,000 crore.
⚫India recorded a massive spike of 51,016 new Covid-19 cases. Coronavirus in India may be entering some kind of stage of endemicity where there is low or moderate level of transmission going on.
⚫IPO bets of wealthy investors turn sour in August. Overall, HNIs have profited in 16 out of 27 IPOs in 2021.
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🏵️ ICAI Election Update
Voting is now easier for a member who is not residing at his registered professional address. Now, if you are residing in the *same Region* where your professional address is registered, you can exercise your voting rights at the polling station of your place of availability on the day of voting by giving information to ICAI 14 days in advance.
👉 If you reside in any other Region, you can exercise your right to vote at the polling station of your place of availability on the polling day by giving information to ICAI 21 days in advance.
👉 Form/link for change in polling booth will be published soon
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Income tax return filing for FY 2020-21 for individuals has already been extended to September 30, 2021, from the usual deadline of July 31, 2021. However, the new income tax e-filing portal has been marred by glitches and other problems from inception. The finance minister has given Infosys time till September 15 to fix all the problems. Chartered accountant society representatives are also saying that the deadline should be extended in view of the state of the e-filing portal.
Finance Minister in a meeting with Infosys CEO Salil Parekh expressed "deep disappointment" plaguing the new income tax portal for more than two months after launch and gave him till September 15 to resolve all issues. In response, Parekh said over 750 people are working on the project and Infosys COO Pravin Rao is personally overseeing this project.
MCA in its revised norm has exempted practising #Chartered accountant with 10+ years’ experience from taking the online proficiency test conducted by the IICA, which was previously mandatory for independent directors getting into or retaining their board positions.
Supreme Court on Monday refused to stay the National Company Law Appellate Tribunal’s (NCLAT’s) decision that ruled that power distribution companies cannot terminate their power purchase agreement (PPA) with insolvent generating companies during the corporate insolvency resolution process (CIRP).
Large urban cooperative banks (UCBs) should be allowed to function along the lines of small finance banks (SFBs) and universal banks, a Reserve Bank of India (RBI)-appointed expert panel said in a report. The committee under the chairmanship of former RBI deputy governor N.S. Vishwanathan proposed a four-tier structure for urban cooperative banks or UCBs based on the size of deposits and capital availability,
The recent banking regulation amendment has empowered RBI to declare certain securities issued by urban cooperative banks under the Securities Contract Regulation Act to facilitate listing and trading in recognised stock exchanges. The committee has recommended that until such time, RBI may consider allowing banks in tier-3 and tier-4 cities with the necessary technology and wherewithal to issue shares at a premium to people residing in their areas of operation, subject to certain conditions.
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ICAI Election Update
Voting is now easier for a member who is not residing at his registered professional address. Now, if you are residing in the *same Region* where your professional address is registered, you can exercise your voting rights at the polling station of your place of availability on the day of voting by giving information to ICAI 14 days in advance.
👉 If you reside in any other Region, you can exercise your right to vote at the polling station of your place of availability on the polling day by giving information to ICAI 21 days in advance.
👉 Form/link for change in polling booth will be published soon
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🏵️ Amendment in relation to disallowance on late deposit of PF/ESI is prospective in nature, hence not applicable to the assessment years prior to the assessment year 2021-22: ITAT Bench of Delhi in the case of Insta Exhibitions Pvt. Ltd Vs ACIT [ITA No. 6941/Del/2017]
🌴 Facts and Findings: During the course of the assessment proceeding, the AO noted that Assessee deposited employees’ contribution towards ESI of Rs.2.31 lacs and PF of Rs.9.84 lacs beyond the due date under respective statutes and accordingly, disallowed the amounts under section 36(1)(va). The ITAT bench referred its co-ordinate bench ruling in the case of Dee Development Engineers [ITA No. 4959/Del/2016] wherein it was held that legislative intent and objective was not to treat belated payments under ESI & PF as deemed income under section 2(24). ITAT refers to ‘Notes on Clauses’ introducing Finance Bill 2021, and holds that amendment is *effective from AY 2021-22, and thus not applicable to the year under consideration i.e. the assessment year 2014-15. Accordingly, the ITAT bench of Delhi has deleted the addition.
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✅ MCA Update on CSR - FAQs dated 25th August 2021 vide General Circular no. 14/2021. - MCA issued a set of FAQs along with response of the Ministry is provided herewith for better understanding and facilitating effective implementation of CSR.
https://www.mca.gov.in/bin/dms/getdocument?mds=uCTTViAfc1KSszKI91LQvA%253D%253D&type=open
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Where assessee entered into an agreement for sale of flats with customer prior to 1-4-2013, however, sale deeds were executed after 1-4-2013*, then the provisions of section 43CA will be applicable – ITAT Banch of Jaipur in the case of Spytech Buildcon v. ACIT [2021] 129 taxmann.com 175
🌴 Facts and Findings: The case is related to the Assessment year 2014-15. The assessee-firm was engaged in business of real estate development and during relevant previous years sold three flats at value less than Fair Market Value as on date of registration of sale deed*. The Assessing Officer proposed to make addition under section 43CA on differential amount of consideration shown in document and Stamp Duty Valuation. The Assessee contended before Assessing Officer that at point of time agreement for sale of flats in question were entered into with customer, section 43CA was not in Statute Book and, thus, provisions of section 43CA were not applicable.
🫐 However, the Assessing Officer did not accept this contention of assessee and made addition of differential amount under section 43CA. The question under consideration of ITAT bench was whether transfer under provisions of section 43CA is recognized only when a registered document is executed and since in instant case, booking was claimed to have been made prior to 1-4-2013 whereas sale deeds were executed after 1-4-2013 which fell in previous year relevant to assessment year under consideration, provisions of section 43CA would be applicable for assessment year under consideration. The ITAT Bench decided the matter in the favour of the revenue and *held that merely because an agreement had taken place prior to 1-4-2013 would not take away transaction from ambit of provisions of section 43CA.
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