Income Tax Department has urged taxpayers to "quickly" send an online response so that their pending refunds for assessment year 2020-21 can be processed expeditiously., it said that till date, 93 per cent of the refund claims in ITRs (Income Tax Returns) filed for assessment year (AY) 20-21 have "already" been processed.
Income Tax Department released draft of rules to drop retro Tax demands provided companies concerned give an “irrevocable” undertaking to withdraw all legal cases against the government as well as undertake not to pursue any in future. Earlier this month, the government enacted the Taxation Laws (Amendment) Act 2021 to scrap a tax rule that gave the tax department power to go 50 years back and slap capital gains levies wherever ownership had changed hands overseas but business assets were in India.
Goods and service tax network had issued News and Update dated August 26, 2021 regarding Implementation of Rule-59(6) on GST Portal. Rule-59(6) will be implemented on GST Portal from 1 September, 2021. GSTN system will now check before the filing of GSTR-1 whether the following conditions have been met or not:
GSTN has asked taxpayers who have not filed their pending GSTR-3B, especially from period November 2020 and afterwards, to do so at the earliest Taxpayers who have not filed GSTR-3B return for the past two months will not be allowed to file GSTR-1 return from next month,
Definition of PMLA is given under section 3 of the PMLA, 2002 where any activity of Money Laundering is involved for the purpose of converting ‘Non legitimise’ money into ‘legitimise’ money which is earned through committing a ‘schedule offence’ by a person.Read more:- http://femainindia.com/Image/PMLA_28.8.pdf
RBI announced the launch of the next round of households surveys to capture inflation expectations and consumer confidence, which provide useful inputs for its monetary policy.
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🌺 In case there is a misuse of the status conferred upon it by Section 12AA of the Act, registration under sections 12AA and 80G to be cancelled: Hon’ble Supreme Court held in the case of CIT (Exemptions), Kolkata vs. Batanagar Education Research Trust [Civil Appeal No. 4451 of 2021]
🌴 Observation of the Supreme Court: Where answers given to questionnaire by Managing Trustee of the Assessee- Trust showed that donations were received by way of cheques out of which substantial money was ploughed back or returned to donors in cash and thus registration conferred upon it under sections 12AA and 80G was completely being misused by Trust. In such a case, Income-tax authorities were right and justified in cancelling registration under sections 12AA and 80G to Trust.
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HC: Invoking doctrine of conditional legislation, upholds reassessment notices issued under old regime
[TS-816-HC-2021(CHAT)]
Chhattisgarh HC dismisses writ petitions against reassessment notices issued under the old regime and holds that by extension notification issued by CBDT, “the individual identity of Section 148, which was prevailing prior to amendment and insertion of section 148A was insulated and saved uptill 30.06.2021.”; Assessees-Individuals preferred writ petitions challenging the notices issued u/s 148 for AY 2015-16 on Jun 30, 2021 issued without adhering to the procedure u/s 148A; Assessees also submitted that the extension notifications would not over ride even to extend the period of operation of provisions of the old regime; Revenue submitted that because of pandemic and lock down lot of people could not file their return and submit the necessary papers, thus, the CBDT issued the notification for extending the application of old reassessment provisions initially upto Apr 30, 2021 which was further extended upto Jun 30, 2021 and therefore, the impugned notice was within the ambit of Revenue’s power and thus, completely valid and legal;
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🏵️ FAQ : Can a member put up his photograph on the website?
👉 Ans :Yes, Paragraph 3.3.7 of Council Guidelines for Advertisement, 2008, appearing in Volume-II of Code of Ethics provides that display of passport style photograph is permitted.
🏵️ FAQ: Whether the names of clients or fees charged be mentioned on the website of a Chartered Accountant or Chartered Accountants Firm*?
👉 Ans : Names of clients and fee charged cannot be given. However, disclosure of names of clients and/or fees charged may be made on the website where it is required by a regulator, whether or not constituted under a statute, in India or outside India, provided that such disclosure is only to the extent of requirement of the regulator and is made only till such period that the member works under the purview of such regulator/ such requirements of the regulator are in force. The fact that the disclosure is being made due to requirement of regulator has to be made below the disclosure itself.
🏵️ FAQ: Whether a Firm of Chartered Accountants can use catchwords / catchphrases on its website, Letter heads and visiting cards?
👉 Ans :The mention of catchwords / catchphrases (for e.g., excellence in a particular area, Firm having professionals of integrity etc.) on Firm’s website, Letter heads and visiting cards is not permissible in view of the provisions of Clauses (6) and (7) of Part-I of the First Schedule to Act. It may be noted that the above catch words are only indicative and not exhaustive.
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: HC: Invoking doctrine of conditional legislation, upholds reassessment notices issued under old regime
[TS-816-HC-2021(CHAT)]
Chhattisgarh HC dismisses writ petitions against reassessment notices issued under the old regime and holds that by extension notification issued by CBDT, “the individual identity of Section 148, which was prevailing prior to amendment and insertion of section 148A was insulated and saved uptill 30.06.2021.”; Assessees-Individuals preferred writ petitions challenging the notices issued u/s 148 for AY 2015-16 on Jun 30, 2021 issued without adhering to the procedure u/s 148A; Assessees also submitted that the extension notifications would not over ride even to extend the period of operation of provisions of the old regime; Revenue submitted that because of pandemic and lock down lot of people could not file their return and submit the necessary papers, thus, the CBDT issued the notification for extending the application of old reassessment provisions initially upto Apr 30, 2021 which was further extended upto Jun 30, 2021 and therefore, the impugned notice was within the ambit of Revenue’s power and thus, completely valid and legal;
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GST UPDATE NO. 57th ON LIABILITY ON SUPPLY OF NON-AC BUSES TO COMPANY FOR TRANSPORTATION OF STAFF
The tax liability on renting/hiring of motor vehicles has been point of dispute since Service Tax Laws and the legacy is continued in the GST regime also. Recently, the issue regarding leviability of GST on supply of non AC buses for transportation of staff under contract carriage was raised before the Maharashtra Authority for Advance Ruling in the case of M/s SHAILESH RAMSUNDER PANDE. The outcome of this decision is the subject matter of discussion of our present update.
The AAR held that the applicant has agreement with RIPL for supplying non-AC buses to transport staff of RIPL and the buses are owned by the applicant. Further, the applicant also incurs expenses on fuel and maintenance of the buses and for all these services provided by the applicant, they are paid fixed hire cost plus fixed fuel cost at predetermined rates of fuel plus mileage. Moreover, it is RIPL which controls the deployment of the buses. Thus, the applicant cannot run the buses on their own because the overall control of the buses is with the RIPL. Further, as per the agreement, insurance charges etc. will be paid by the applicant whereas the toll tax etc. will be paid by RIPL. Thus, while the ownership of buses lies with the applicant, the buses shall be strictly operated as per the instructions of the RIPL. Hence, there is clear transfer of right to use the buses by way of effective control as is seen from the fact that the buses are plying strictly as per RIPL’s instructions.
The serial no. 15 of the exemption notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 reads as follows:-
S. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of services Rate (%) Condition
15 Heading 9964 Transport of passengers, with or without accompanied belongings, by-
(b) non-air conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or Nil Nil
The AAR held that in the case of transportation of passengers, the recipient of service would be the passenger whereas in the case of renting of any motor vehicle, like buses in the subject case, the recipient would not be a passenger. In the present case, the consideration for supply of service is charged from RIPL and not the passenger. Therefore, in the subject case, recipient is RIPL. Consequently, it was held that the subject activity is “renting of motor vehicle” and shall qualify as a taxable activity under the provisions of GST law. As the activity is not transportation of passengers, the provision of above referred notification are not appliable in the present case.
The AAR placed reliance on the definition of ‘contract carriage’ as given under section 2(7) of the Motor Vehicles Act, 1988 which reads as follows:-
“contract carriage” means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum-
(a) on a time basis, whether or not with reference to any route or distance; or
(b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey , and includes-
(i) a maxicab; and
(ii) a motorcab notwithstanding the separate fares are charged for its passengers’
Thus, the essential ingredient of contract carriage is that it plies under a contract for a fixed set of passengers, and does not allow any other passenger to board or alight from the carriage at will. A ‘contract carriage’ carries passengers as a group and cannot pick up passengers en-route. The AAR also ruled that even if it is assumed that contract is of “non air-conditioned contract carriage”, serial no. 15 excludes hiring of such carriages. Hence, AAR rules that the service provided by the applicant falls under renting of motor vehicles under serial no. 10 of the notification no. 11/2017-CT (Rate) dated 28.06.2017 attracting 5% GST without ITC under reverse charge mechanism or 12% GST with ITC facility under forward charge mechanism.
In our opinion, the contention of the learned AAR that the terms of the contract do not indicate that the transaction is of “non air conditioned contract carriage” appears to be misplaced on two points. If the definition of contract carriage is studied, it is found that the only requirement is that the use of carriage is for carriage of passengers either on time basis without reference to any route or it is for carriage of passengers from one point to another, without stopping to pick up or set down passengers not included in the contract anywhere during the journey. It nowhere states that contract carriage carries passengers as group and cannot pick up passengers en-route but the same contention is taken by AAR. This example will further elaborate it. Suppose, a company employs a bus for picking up of their employees by contact carriage starting from point A and ending at point C. As per definition of contact carriage, it can stop at point B and pick up employees of company mentioned in the contract. But it cannot pick up any other person not mentioned in contract. Moreover, as per definition of contact carriage, it cannot stop at point E which is not mentioned in the contract. But the interpretation taken by AAR is that it cannot stop at any point and cannot pick up anyone including employees mentioned in contract. This analogy is wrong. As such, they said restriction has been added by Authority of Advance Rulings by themselves. Hence, in our view, the transaction can be very well considered as that of “non air conditioner contract carriage”.
Now, the next important question is who is the recipient of service? It is contended by AAR that since consideration is paid by the company, the company is the receiver and as it is not passenger, the benefit of exemption is not available. In this regard, it is submitted that although consideration is paid by the company but practically, at times, the person paying the consideration is different than the actual beneficiary of the service received. In such a situation, merely because the recipient does not actually get benefit of the service cannot be reason to deny the provision of service in that category. To illustrate- if consideration of a flight ticket for director is paid by a company to the airlines, in such a case, it cannot be denied that the director is the passenger and the services are correctly classifiable under transportation of passengers by air by the airlines company. Accordingly, the justification for non-applicability of exemption notification does not appear to be convincing.
This is solely for educational purpose.
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📍FinMin prescribes rules for calculation of taxable interest on contribution to EPF/GPF
New norms to come into effect prospectively
The Finance Ministry said that tax on interest pertaining to contribution towards Employees’ Provident Fund (EPF) or General Provident Fund (GPF) exceeding ₹2.5 lakh will not be retrospective.
The rules released by the Ministry prescribes calculation of taxable interest relating to contribution towards EPF or GPF with prospective effect and that the threshold for contribution to avail non-taxable interest could go to ₹5 lakh, in case of government employee.
The rules further say that the income earned through interest on contribution of over and above ₹2.5 lakh (₹5 lakh in case of no contribution from the employer) will be taxable. For the purpose of calculation of taxable interest, separate accounts within the provident fund account will be maintained during the current fiscal year (2021-22) and onwards for taxable contribution and non-taxable contribution made by a person.
Read full at https://www.thehindubusinessline.com/economy/policy/finmin-prescribes-rules-for-calculation-of-taxable-interest-on-contribution-to-epfgpf/article36225537.ece
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📌📍No GST On Papad, Whatever Its Shape": Tax Body Corrects Harsh Goenka
The Central Board of Indirect Taxes and Customs said the exemption of papad is not affected by its shape or name.
Papad, whatever its shape or name, is exempted from GST, the government's indirect taxation agency clarified today after a social media post claimed that a round papad is exempted from the tax while a square variant attracts it.
The social media post had pictures of round and flat papads placed next to each other. Sharing the post, Harsh Goenka, chairman of RPG Enterprises, tweeted, "Did you know that a round papad is exempt from GST and a square papad attracts GST ? Can anyone suggest a good chartered accountant who can make me understand the logic?"
Responding to the post, the Central Board of Indirect Taxes and Customs, which is responsible for indirect taxation in the country, clarified through its official handle, "Papad, by whatever name known, is exempt from GST vide Entry No. 96 of GST notification No.2/2017-CT(R). This entry does not distinguish based on the shape of papad. This notification is available at http ://cbic.gov.in"
https://www.ndtv.com/india-news/no-gst-on-papad-whatever-its-shape-tax-body-corrects-harsh-goenka-2525483
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🏵️ FAQ : Whether a Chartered Accountant in practice can give public interviews and also whether he can furnish details about himself or his firm in such interviews?
👉 Ans :As per paragraph 2.14.1.6(iv)O under Clause (6) of Part I of the First Schedule to the Act, appearing in Volume-II of Code of Ethics, a Chartered Accountant in practice can give public interviews. While doing so, due care should be taken to ensure that such interviews or details about the members or their firms are not given in a manner highlighting their professional attainments, Any detail which is given must, in addition to meeting above requirements, be given only as a response to specific question , and of factual nature only.
🏵️ FAQ: Whether a member can appear on television, films, internet and broadcast in the Radio or give lectures at forums?
👉 Ans : Yes, Council direction under Paragraph 2.14.1.7(x) under Clause (7) of Part I of the First Schedule to the Act, as appearing in Volume-II of Code of Ethics prescribes that a member may appear on television, films and internet and agree to broadcast in the Radio or give lectures at forums and may give his name and describe himself as chartered accountant. Special qualifications or specialized knowledge directly relevant to the subject matter of the programme may also be given. Firm name may also be mentioned, however, any exaggerated claim or any kind of comparison is not permissible.. What he may say or write must not be promotional of him or his firm but must be an objective professional view of the topic under consideration.
🏵️ FAQ: A Chartered Accountant in practice during a TV interview, handed over a bio-data of his firm to the Chairperson. Such bio-data detailed the standing of the international firm with which the firm was associated. It also detailed the achievements of the concerned partner and his recognition as an expert in the field of taxation in the country. The chairperson read out the said bio-data during the interview. Is it a professional misconduct?
👉 Ans: Yes, Clause (6) of Part I of the First Schedule to the Act prohibits solicitation of client or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means since it shall constitute professional misconduct. The member would be held guilty of professional misconduct under Clause (6) of Part I of the First Schedule to the Act under the given circumstances.
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👉🏻Canada's PNP issued over 3400 invitation for PR in the month of August
(Canada’s Provincial Nominee Programs (PNP) issued over 3,400 invitations to apply for provincial nomination during the month of August 2021. Major Provinces are..)
👇🏻 👇🏻 👇🏻
https://bit.ly/3gULyaY
👉🏻Govt appoints J B Mohapatra as CBDT Chairman
(Appointments Committee of the Cabinet has confirmed the appointment of IRS officer Jagannath Bidyadhar Mohapatra as the Chairman of the Central Board of Direct Taxes (CBDT)
👇🏻 👇🏻 👇🏻
https://bit.ly/3jCNsyx
👉🏻Master Direction on Financial Statements - Presentation and Disclosures - RBI
(Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 (Like Format of the Balance Sheet and Profit and Loss Account, Notes and instructions for compilation, Disclosure in financial statements – notes to accounts, Consolidated Financial Statements, Other instructions etc)
👇🏻 👇🏻 👇🏻
https://bit.ly/38FyLV3
👉🏻ICAI Election 2021 - Know Your Pooling Booth Details
(Know your polling booth details for ICAI Elections to be held on 3rd and 4th December 2021)
👇🏻 👇🏻 👇🏻
https://bit.ly/3zFhyHt
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