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Thursday, 30 September 2021

30 September 2021 Updates


⚫Laying emphasis on the importance of data privacy and on safeguarding client data, FM said India has the highest fintech adoption rate as compared to a much lower global average. The value of digital transactions has jumped to Rs 6 trillion in Jan-Aug 2021 from Rs 4 trillion last year.
⚫The defence ministry has dissolved Ordnance Factory Board with effect from October 1 and transferred its assets, employees and management to seven PSUs. 
⚫Infrastructure funds deliver 91% over the past year. Of the 21 schemes in the category, seven have given a return of more than 100% in an year.
⚫SEBI has given its approval for the launch of silver exchange-traded funds (ETFs) in the country. Sebi approved an amendment to mutual fund rules to enable the introduction of silver ETFs with certain safeguards in line with the existing regulatory mechanism for gold ETFs.
⚫SEBI eased the delisting framework, a move seen as boosting M&A activity in the country. It also cleared the framework to roll out social stock exchanges and gold spot exchanges.
⚫Serum Institute gets nod to start Covovax trials on children above 7 yrs.
⚫Pay your Annual  Membership/COP Fee for the Year 2021-22 latest by 30th Sept 2021. Pay on line through SSP Portal
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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether  a  member  in  practice  will  be  liable,  if  he  fails  to  disclose a  material  fact  known  to  him  which  is  not  disclosed  in  a  financial statement,  but  disclosure  of  which  is  necessary  to  make  the financial  statement  not  misleading? 
๐Ÿ‘‰ Ans : Yes,  as  per  Clause  (5) of  Part  I  of  Second  Schedule  to  the  Act  a member  in  practice  shall  be  deemed  to  be  guilty  of  professional misconduct,  if  he  fails  to  disclose  a  material  fact  known  to  him  which  is not  disclosed  in  a  financial  statement,  but  disclosure  of  which  is necessary to  make  the  financial  statement  not  misleading. 

๐Ÿต️ FAQ: Whether  a  member  in  practice  will  be  liable  if  he  fails  to  report  a material  mis statement  known  to  him  to  appear  in  a  financial statement  with  which  he  is  concerned  in  a  professional capacity?
๐Ÿ‘‰ Ans :Yes,  as per  Clause  (6)  of  Part  I  of  Second  Schedule  to  the  Act,  a member  in  practice  shall  be  deemed  to  be  guilty  of  professional misconduct,  if  he  fails  to  report  a  material  misstatement  known  to  him to  appear  in  a  financial  statement  with  which  he  is  concerned professional  capacity. 

๐Ÿต️ FAQ: Whether  a  member  in  practice  will  be  liable  if  he  is  grossly negligent  in  the  conduct  of  his  professional  duties.? 
๐Ÿ‘‰ Ans :Yes,as  per  Clause  (7)  of  Part  I  of  Second  Schedule  to  the  Act,  a member  in  practice  shall  be  deemed  to  be  guilty of  professional misconduct,  if  he does  not  exercise  due  diligence  or  is negligent  in  the  conduct  of  his  professional  duties. 

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Due Date of Filing DIR-3KYC for FY 2020-21

Please note that the Due Date of filing DIR-3 KYC for FY 2020-21 is 30th Sep 2021.
Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year.

 What will happen if you forgot to do DIR-3 KYC on the Due Date or DIR 3 KYC DUE DATE has Lapsed ?

After the expiry of the respective due dates, the system will mark all non-compliant DINs against which the DIR-3 KYC form has not been filed as ‘Deactivated due to non-filing of DIR-3 KYC’.

For Completing KYC after the due date, a fee of Rs.5000 shall be payable.

 Which details are required to be filled in the DIR-3KYC form ? 

Name (as per PAN database), 
Father’s Name (as per PAN database), 
“Date of Birth (DoB)” (as per PAN database), 
PAN Number (mandatory for citizens of India), 
Personal Mobile number, and 
Personal Email Address and Permanent/ Present address.
Further, Aadhaar is mandatory, if it is assigned. If not, then Voter ID or Passport or Driving License shall be attached. Accordingly, copy of any one of the above selected information is to be attached.                                                                                             .
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 ๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether  a  member in practice  will  be  liable  in  a  case  where  he  was alleged  to  have  signed  two  balance  sheets  on  two  differ ent  dates for  the  same  financial  year,  the  first  one  with  a  clean  report  and the  second  one  with  a  qualified  report? 
๐Ÿ‘‰ Ans : Yes, the  action  of  the  member  in  signing  two  balance  sheets  on  two different  dates  for  the  same  financial  year  will  constitute  professional misconduct  under  Clause  (7)  of  Part  I  of  Second  Schedule  to  the  Act, which  states  that  a  member  in  practice  shall  be  deemed  to  be  guilty  of professional  misconduct,  if  he  is  grossly  negligent  in  the  conduct  of  his professional  duties.

๐Ÿต️ FAQ: Whether  a  member  in practice  will  be  liable  if  he  fails  to  obtain sufficient  information  to  warrant  the  expression  of  an  opinion  or his  exceptions  are  sufficiently  material  to  negate  the  expression of  an  opinion?
๐Ÿ‘‰ Ans : Yes,  as  per  Clause  (8)  of  Part  I  of  Second  Schedule  to  the  Act ,  a member  in  practice  shall  be  deemed  to  be  guilty  of  professional misconduct,  if  he  fails  to  obtain  sufficient  information  to  warrant  the expression  of  an  opinion  or  his  exceptions  are  sufficiently  material  to negate  the  expression  of  an  opinion.

๐Ÿต️ FAQ: Whether a  member  in  practice  will  be  liable  if  he  fails  to  invite attention  to  any  material  departure  from  the  generally  accepted procedure  of  audit  applicable  to  the  circumstances? 
๐Ÿ‘‰ Ans :Yes,as  per  Clause  (9)  of  Part  I  of  Second  Schedule  to  the  Act,  a member  in  prac tice  shall  be  deemed  to  be  guilty  of professional misconduct,  if  he  fails  to  invite  attention  to  any  material  departure  from the  generally  accepted  procedure  of  audit  applicable  to  the circumstances.

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✅Today is the last date to pay ICAI annual membership/COP fees
Please note that the payment of fee shall be made online through Self-Service Portal (SSP) at the link https://eservices.icai.org/
Kindly ignore if already paid

✅The Due Date of filing DIR-3 KYC for the financial year 2020-21 is 30th September 2021. Otherwise department will mark the DIN of such director as ‘Deactivated due to Non-filing of DIR-3 KYC’ and Penalty for non compliance is INR 5,000.

✅Today 30-9-2021 is the last date for payment of Income Tax under Vivad se Viswas Scheme without additional payment.
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FROM THE NFRA CONSULTATION PAPER

Worrisome Statistics

The  data indicates the following key features of MSMCs:
(i) Payments to Auditors12 ((Refer Table 1.6 in Annexure 2 and Annexure 3) 
 There are a large number of Companies (1,81,392 Companies, nearly 30.26%) that have 
reported NIL Payments to Auditors. This perhaps could be data input error indicating lack 
of adequate accounting professionals with many of these companies. 
 A large majority of Companies (2,48,218 Companies accounting for 41.41%) have 
reported small amounts of Payments to Auditors i.e., below ₹25 Thousand. Of these 
Companies, 40,708 Companies have reported extremely small amounts of payments to 
Auditors i.e., below ₹5 Thousand. The estimated standard cost to perform a reasonably good quality audit, in compliance with the letter and spirit of the SAs, for an MSMC, with Turnover below 50 Crores, is in the range of ₹1.50 lakhs to ₹ 8.43 lakhs (Refer Annexure  3). This estimated audit cost is several multiples higher as compared to the presently reported audit fee ranges i.e., a very large percentage of MSMCs have reported Payment to Auditors of less than ₹ 25 thousand. (ii) Turnover (Refer Table 1.4 in Annexure 2):  Of the total number of 5,99,487 MSMCs considered in NFRA’s preliminary research, there are a large number of Companies (2,09,122 Companies accounting for 34.88%) that have reported Nil Turnover (in some cases, there could be data input errors in MCA21). 
 Among the MSMCs that have reported Turnover, a large number of Companies (3,67,019) 
i.e., nearly 61.22% have very low turnover i.e., below ₹ 50 Crores.
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NFRA consultation paper is out to abolish the Statutory audit of Small Companies. This is high time for Central leadership to act very fast and swift action is the need of hour Why so called Intelligent Cum Speakers had chosen by us failing again and again to convince the Government about the importance of Tax Audit, GST Audit and Now Statutory Audit.
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Wednesday, 29 September 2021

29 September 2021 Updates

 ☘️ Reopening of original assessment was justified – The High Court of Madras held in the case of Thirveni Earthmovers Pvt. Ltd. v. ACIT [W.A.Nos. 1911, 1922 and 1987 of 2021]

๐ŸŒด Facts and Findings: There was a huge mismatch in receipts appearing in Form 26AS vis-a-vis receipts credited in Profit and Loss account. The Assessee never disclosed and claimed TDS from certain parties during assessment proceedings also, though he had opportunity to do so. Therefore, the Assessee had deliberately concealed particulars during assessment proceedings, and Accordingly, reopening of assessment was justified. It could not be said that reopening was based on change of opinion but facts which emanated after rectification application had been filed by the Assessee. The High Court of Madras held that it was incorrect on part of Assessee to state that reopening of original assessment was on assumptions and presumptions.

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New NCLT ruling gives leeway to companies that want to restructure, give exit to some shareholders

๐ŸŒดNational Company Law Tribunal (NCLT) has ruled that  companies can reclassify their equity shares as preference shares, paving the way for more flexible capital reorganisation for private companies. 

๐ŸThis means companies can do this to give a structured exit to some of their shareholders going ahead, say industry trackers.

๐ŸƒThe ruling brings clarity that such *re-classification does not tantamount to reduction of 'equity share capital' per se*. 

๐Ÿ‚The NCLT said there is nothing in the existing law that says that such a conversion is disallowed

☘️Many companies could also look to convert equity into preference shares in situations where they wish to repay debt from group companies or give better terms to existing creditors who hold equity.

▶️https://www.google.com/amp/s/m.economictimes.com/news/company/corporate-trends/new-nclt-ruling-gives-leeway-to-companies-that-want-to-restructure-give-exit-to-some-shareholders/amp_articleshow/86500917.cms

๐ŸŽ—️Preference shares are also known as preferred stock that get dividends before other shareholders.

⭐In case a company files for bankruptcy, preference shareholders are entitled to be paid before other equity shareholders.

๐ŸฅEquity shareholders only get dividends after all the other liabilities are fulfilled by the company, as they are essentially the owners in the company.

☘️Even the dividend can be fixed for preference shareholders, which is not possible for equity shareholders.

๐ŸƒAccording to the details of the case some minority shareholders were seeking dividends from their investments, but at the same time they were not interested in holding any position or management control. The company then started the process of converting equity shares into optionally convertible redeemable preference shares.

๐Ÿฅ The Registrar of Companies (ROC) had objected to such a conversion claiming there was no provision in the law to do it.

๐ŸThe company had argued that the conversion of shares is not barred by any provision of the law, and that such conversion only amounts to reorganization of the share capital.
The NCLT allowed the conversion.
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⚫Economy shifting to different plane', India needs 4-5 big banks like SBI says FM, more bank mergers in coming times.
⚫India has emerged as Dubai's second biggest trading partner after China with the overall volume touching 38.5 billion dirham in the first half of 2021.
⚫Top property developers are looking to add millions of square feet of office properties in the next three to five years.The developers have set the ball rolling on big projects, as the demand for workspace is once again going up after the pandemic.
⚫Tata Steel, ONGC lead surge in advance tax; top 20 firms pay 47% more in Q2. Reliance Inds, Tata Motors, HDFC, and ITC skip payment.
⚫RBI green focus likely to change way of financing. As the world suffers from unseasonal rains and cyclones, sporadic wildfires lasting days, reducing assets worth billions to ashes, extreme weather events have become a crucial component. Rs 41369 cr transmission projects on offer soon to boost green corridors With these, RE connectivity and private participation will get a fillip.
⚫Farmers unions is organising a nationwide strike to mark the first anniversary of three controversial laws getting Presidential assent. 
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✅ Reminder to pay your Annual (2021-22 ) Membership / COP Fee latest by 30th September 2021. Non Payment within stipulated time may result in removal of Membership/COP and cessation of Practice. 
Please Login SSP Portal to Pay online Fee.
✅MCA has extended deadline for holding Annual General Meeting from September 30, 2021 to November 30, 2021.
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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether an auditor is required to provide to the client or to main auditor of the Head Office of the same enterprise access to his audit working papers? 
๐Ÿ‘‰ Ans :No, working papers are the property of an auditor. An auditor is not required to provide the client access to his audit working papers. The main auditors of an enterprise do not have right of access to the audit working papers of the branch auditors. The auditor, may at his discretion, in cases considered appropriate by him, make portions of, or extracts from his working papers available to the client.

๐Ÿต️ FAQ: Whether Joint Auditors can demand the working papers of one another?
๐Ÿ‘‰ Ans :No, the working papers are the property of an auditor. Therefore, no Joint Auditor can demand the working papers of the other auditor. 

๐Ÿต️ FAQ: Whether a joint auditor will be responsible for the work done by other joint auditor? 
๐Ÿ‘‰ Ans :The Council direction under Paragraph 2.15.1.2(ii) under Clause (2) of Part I of the Second Schedule to the Act, appearing in Volume II of the Code of Ethics, prescribes that in respect of audit work divided among the joint auditors, each joint auditor is responsible only for the work allocated to him including proper execution of the audit procedures. However, on the other hand, all the joint auditors are jointly and severally responsible for the work which is not inter-se divided among the auditors.

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๐Ÿ‘‰Exposure Draft of Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12, Income Taxes 
https://www.icai.org/post/ed-of-deferred-tax-related-to-assets-and-liabilities-arising-from-a-single-transaction

๐Ÿ‘‰Announcement by CL&CGC ICAI regarding Extension of time for holding of Annual General Meeting (AGM) for the Financial Year ended on 31.03.2021 by Two Months beyond the due date - (24-09-2021)
https://resource.cdn.icai.org/66663clcgc53814.pdf

๐Ÿ‘‰India needs 4-5 more 'SBI size' banks to meet changing requirements of economy: FM Sitharaman
https://economictimes.indiatimes.com/industry/banking/finance/banking/india-needs-4-5-more-sbi-size-banks-to-meet-changing-requirements-of-economy-fm-sitharaman/videoshow/86545954.cms

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Case Laws Updates

1️⃣ Rule 86A provides for Interim restriction of attachment, bi-parte hearing order should be passed to make it permanent. (M/s Sahil Enterprises. v. Union of India).

2️⃣ Section 83 of GST, Court quashed the Attachment on grounds of 'willfil misclassification of goods'. (Monopoly Innovation).

3️⃣ HC allows refund under Inverted Duty Structure in case of input and output supplies being same. (BMG Informatics Pvt Ltd)

4️⃣ Extended period of limitation can be invoked only when “suppression‟ or “collusion” is wilful with an intent to evade tax. (SOTC Travels Services Pvt Ltd.)

5️⃣ Maha AAR: GST applicable on Royalty paid on Tertiary Treated Water supplied to MAHAGENCO. (Nagpur Municipal Corporation).

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✅Please pay the annual ICAI Membership / CoP fees for FY 2021-22, on or before 30th September 2021 (if yet not paid), which shall be made online through Self Service Portal (SSP)* i.e., - https://eservices.icai.org/ after logging in from your account.

✅ Audit of Charitable Trusts - 30-11-2021 is Extended Due date for furnishing Audit Report for Public Charitable Trusts.

✅CBDT issues order u/s 119(2)(b) of Income-tax Act, 1961 in F. No. 299/22/2021-Dir(Inv.III)/174 dated 28.09.2021, for filing applications for settlement before Interim Board for Settlement by 30.09.2021, subject to certain conditions.
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Sunday, 26 September 2021

26 September 2021 Updates


⚫US President has reiterated America's support for india's permanent membership on a reformed UNSC and its entry into the Nuclear Suppliers Group during his first meeting with PM Modi.
⚫PM Modi said that when Indians make progress, it also gives an impetus to the development of the world as its growth is linked with the globe.When India grows, the world grows. When India reforms. The world transforms.
⚫CBIC extends re-export timeline for imported containers by 3 months. Currently, duty free imports of containers are allowed with the condition of re-export in the next six months. However, keeping containers beyond six months is considered as deemed import and thus import duty is levied, a policy aimed at ensuring faster turnaround of containers.
⚫ED said it has frozen shares worth Rs 700 crore after raids against Karvy Stock Broking Limited CMD and others as part of a money laundering investigation against them.
⚫India has developed the world's first DNA vaccine that can be given to everyone older than 12.
⚫India will export eight million coronavirus vaccine jabs by the end of October after ending its ban on sending doses abroad.

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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether a member, who is the statutory auditor of a company, can let out property owned by his Hindu Undivided Family (HUF) to the said Company? 
๐Ÿ‘‰ Ans :HUF is treated as separate entity for the purposes of assessment under the Income Tax Act,1961; however, since the individual member and the Karta of the HUF are practically the same person, such a transaction should be avoided from an independence perspective.

๐Ÿต️ FAQ: Whether a member in practice is generally permitted to write script/story for a movie?
๐Ÿ‘‰ Ans :A script/story for a movie may be based on a Book written by a member in practice. However, merely writing a script/story for a movie would not fall within the general permission provided under the Appendix (9) to CA Regulations. Such a member would require prior and specific permission of the Council in this regard. 

๐Ÿต️ FAQ: Whether a member in practice can also practice simultaneously as an Actuary? 
๐Ÿ‘‰ Ans :*No*,the members in practice have not been permitted by the Council to practice as Actuary simultaneously. .

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⚫Kharif foodgrain output likely to touch record 150.5 mt this year. In 2020-21, pulses production went down by 6.65% between the first and fourth advanced estimates.
⚫Bharti, Reliance Jio tooled up for indigenous 5G network trials. The move is significant because building indigenous network capabilities will go a long way in making India in a key player in the 5G Open RAN network arena.
⚫LIC agents to steer awareness campaign for retail investors ahead of IPO. Move comes ahead of India's largest IPO, expected later this year.
⚫No fresh equity to be infused in cash-strapped Voda Idea. The telecom package is expected to reduce its cash flow for the next four years of the moratorium by around Rs 1.1 trillion.
⚫Johnson & Johnson says Covid-19 booster shot is 94% effective
⚫India has called the UK Govt’s move to treat fully vaccinated Indians as unvaccinated a “discriminatory policy” and indicated that it has the right to take reciprocal action.

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⚫The Govt launched the much awaited national single window system for investors & businesses. The portal will integrate the existing clearance systems of the Centre and states.
⚫India and the UAE have formally launched negotiations on a Comprehensive Economic Partnership Agreement that aims at expanding bilateral trade and investment between the two nations.
⚫PM Modi, who is visiting the US for the 7th time after assuming office in 2014, said his visit would be an occasion to strengthen the Indo US Comprehensive Global Strategic Partnership and consolidate ties with Japan and Australia.
⚫FDI into the country more than doubled to $20.42 billion during the April-July period of the current fiscal.
⚫US stocks ended sharply higher as investors took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon.
⚫India may fully vaccinate all adults by April next year. At 5.6 mn daily doses, entire adult population can get one jab by November.

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⚫PM Modi described India and America as "natural partners" as he held the first in-person meeting with USA VP during which they decided to further cement the Indo-US strategic partnership and discussed global issues of common interest, including threats to democracy, Afghanistan and the Indo-Pacific.
⚫States are in consensus with the Centre on the Rs 3-trillion power distribution reforms scheme.The new 'Reforms-based and Results-linked, Revamped Distribution Sector Scheme' seeks to improve the operational efficiencies and financial sustainability of all discoms/power departments by providing conditional financial assistance to discoms for strengthening of supply infrastructure.
⚫The Ministry of Defence placed an order with the Ordnance Factory Board for 118 indigenous Arjun Mark 1A main battle tanks for the army.
⚫Acknowledging that some users continued to experience difficulties on the e-filing portal, Infosys said it was working “expeditiously” with the I-T dept to further streamline end user experience. 
⚫According to the health ministry, 2/3rd of India’s adult population has received the first dose of the Covid vaccine and nearly 23% is now fully vaccinated.

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DIRECT TAX CASE LAW

Sadruddin Tejani vs. ITO (Bombay High Court)

▶️The DTVSV Act, 2020 is an Act to provide for resolution of disputed tax and matters connected therewith or incidental thereto. The emphasis is on disputed tax and not on disputed income. From a plain reading of the provisions of the DTVSV Act, 2020 and the Rules set out above, it emerges that the Designated Authority would have to issue Form 3 as referred to in section 5(1) specifying the amount payable in accordance with section 3 of the DTVSV Act. In the case of the declarant who is an eligible appellant not falling under section 4(6) nor within the exceptions in section 9 of the DTVSV Act, 2020, which fact appears to be undisputed

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๐Ÿ‘‰๐ŸปAccounting regulator NFRA raps ‘EY arm’s’ Audit of IL&FS firm
(NFRA has rapped ‘EY group firm’ SRBC & Co. LLP for failing to detect several problems in the IL&FS group’s transport venture while undertaking its statutory audit in 2017-18. Understatement of losses runs up to more than ₹2,000 Cr)
๐Ÿ‘‡๐Ÿป ๐Ÿ‘‡๐Ÿป ๐Ÿ‘‡๐Ÿป
https://bit.ly/3ukPzep

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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether the Chartered Accountant who is appointed as a liquidator of a company can do the audit of that company? 
๐Ÿ‘‰ Ans :No, Clause (4) of Part I of the Second Schedule to the Act and Regulations framed there under may be referred. 

๐Ÿต️ FAQ: Whether a statutory auditor can accept the system audit of same entity?
๐Ÿ‘‰ Ans :Yes, the statutory auditor can accept the assignment of a system audit of the same entity, provided it did not involve any scrutiny/review of financial data and information. 

๐Ÿต️ FAQ: Whether a Chartered Accountant is qualified to be appointed as statutory auditor of one associate company when he is the internal auditor of another fellow associate company.? 
๐Ÿ‘‰ Ans :Yes, the statutory auditor of one associate company can accept internal audit of the fellow associate company, because there is no holding-subsidiary relation between such companies, and therefore there is no violation of provisions of Companies Act, 2013.

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⚫The advance tax mop up in the 2nd quarter stood at Rs 1.72 trillion, a growth rate of 52.2%.
⚫Modi will address the General Debate of the 76th Session of the United Nations General Assembly. The theme is Building Resilience through hope to recover from COVID, rebuild sustainably, respond to the needs of the planet, respect the rights of people, and revitalise the United Nations.
⚫FM said the Indian economy is on a sustained path of revival and cited rise in GST collections and direct taxes to support her assertion. She further said that the confidence in the Indian stock market is growing as retail and small investors are keenly investing money in the share market.
⚫China’s regulators intensified the country’s crackdown on cryptocurrency with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain related stocks.
⚫Daikin to set up Rs 1,000 crore AC mfg plant in Andhra Pradesh under the PLI scheme for white goods.
⚫Bharat Biotech's nasal vaccine may be used with Covaxin. The idea is to see which combination induces better and long lasting immune response.
⚫NHAI to put four more expressways on the fast track. They are the Ahmedabad-Dholera, Delhi-Amritsar-Katra, Bengaluru-Chennai and Kanpur-Lucknow stretches, which would be taken up next.

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๐Ÿ›ก️Ethical Case Law A Week๐Ÿ›ก️

๐Ÿ“ŒOpening of Branch Office without Member in Charge

๐ŸŽฏWhere a Chartered Accountant kept the Branch Office without putting a Member in charge thereof thereby committing a breach of clause (i) of Section 27 of the Act.

_✍️Held that the fault was only technical which had been made good and ordered the papers to be filed._

(Re:- Page 774 of Vol. IV of the Disciplinary Cases and pages 396-399 of February, 1969 issue of the Institute’s Journal - Judgement delivered on 12th November, 1968)

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Tuesday, 21 September 2021

21 September 2021 Updates


๐Ÿ‘‰Results of the Chartered Accountants Intermediate Examination (Old course & New Course) held in July 2021 declared. - (19-09-2021)
https://www.icai.org/post/results-caexam-inter-old-new-july2021

๐Ÿ‘‰RBI Bulletin – September 2021
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52238

๐Ÿ‘‰Master Direction – Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12163&Mode=0

๐Ÿ‘‰View: Dear RBI, don’t make digital payments difficult for consumers
https://economictimes.indiatimes.com/industry/banking/finance/banking/view-dear-rbi-dont-make-digital-payments-difficult-for-consumers/articleshow/86357889.cms
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Hon'ble Supreme Court has just now upheld the validity of Rule 89(5) and denied refund of input services in case of Inverted Duty Structure. 

The appex court has set aside the judgement of Gujarat High Court favouring assessee in case of VKC footwear and upheld the order of Madras High Court.

The ruling is a major setback for all those claiming refund of input services along with inputs in case of IDS.

Professional Information

๐Ÿ‘‰Results of the Chartered Accountants Intermediate Examination (Old cour se & New Course) held in July 2021 declared. - (19-09-2021)
https://www.icai.org/post/results-caexam-inter-old-new-july2021

๐Ÿ‘‰RBI Bulletin – September 2021
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52238

๐Ÿ‘‰Master Direction – Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12163&Mode=0

๐Ÿ‘‰View: Dear RBI, don’t make digital payments difficult for consumers
https://economictimes.indiatimes.com/industry/banking/finance/banking/view-dear-rbi-dont-make-digital-payments-difficult-for-consumers/articleshow/86357889.cms

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⚫India has climbed two spots to 46 in the Global Innovation Index 2021 prepared by the World Intellectual Property Organization. India has been portrayed as successful in developing sophisticated services that are technologically dynamic and can be traded internationally.
⚫A global rout in stock markets sparked by concerns over China Evergrande Group hit the world’s biggest fortunes, with the richest 500 people losing a combined $135 billion.
⚫SBI prepared to support Tata group's bid for Air India
⚫India recorded 24925 new Covid-19 cases in the past 24 hours.
๐ŸŒ‘Air India and Air Canada are resuming their flights from Delhi to Toronto and Vancouver with easing of entry restrictions by the North American country. While Air Canada's first departure from Delhi will be on Wednesday, Air India is yet to announce its schedule but has informed Delhi airport about its plan to start flights.
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 Clarification: 45th GST council Meeting and Circular No. 159/15/2021-GST Dt. 20.09.2021

Foreign Parent/ Subsidiary Co. be treated as separate legal entities

It is clarified that a company incorporated in India and a foreign company under Companies Act, are separate persons under CGST Act, and thus are separate legal entities. 

Accordingly, these two separate persons would not be considered as “merely establishments of a distinct person in accordance with Explanation 1 in section 8”.

The supply from a company incorporated in India to its related establishments outside India, which are incorporated under the laws outside India, would not be treated as supply to merely establishments of distinct person under Explanation 1 of section 8 of IGST Act 2017. 

Such supplies, therefore, would qualify as ‘*export of services*’, subject to fulfilment of other conditions.


Income Tax: On the basis of incriminating material found, once reassessment proceedings was initiated in the search of 3rd party then the provisions of section 153C of the I.T. Act were applicable which exclude the application of section 147 and 148 of the I.T. Act and notice u/s. 148 of the Act and proceeding u/s. 147 are illegal and void ab initio. (Favour of Assessee) City Life Projects Pvt Ltd Vs. ITO, 17/09/2021, ITAT- Delhi

GST Council had said a rule relating to input tax credits would be amended to align it with a new legal provision introduced in the CGST Act by way of Finance Act 2021, once it is notified. The amendment to the CGST Act says that a buyer can avail of tax credits due to him only when details of taxes collected by the vendor have been reported in his sales return and such details have been communicated to the buyer.

Businesses that default on filing summary return and paying monthly GST will not be able to file GSTR-1 sales return of the succeeding month from January 1 next year. The GST Council meeting. 

GST council 45th Meeting: Transfer of Cash Ledger Balance: It was decided as a measure of trade facilitation that the unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having the same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards.

ICAI Pursuant to change in UDIN Guidelines, it can be generated now within 60 days. The said change is a permanent change and not one time effect. For example if UDIN is to be generated on 20.09.2021, it can be generated for a report / certificate signed on 25.07.2021 too.
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Monday, 20 September 2021

20 September 2021 Updates

Government extends certain timelines to ease compliances

๐Ÿ‘‰The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act, 1961 (hereinafter referred to as “the Act”) in the following cases, as under:

๐Ÿ‘‰Time limit for intimation of Aadhaar number to the Income tax Department for linking of PAN with Aadhaar has been extended from 30th September, 2021 to 31st March, 2022.

๐Ÿ‘‰The due date for completion of penalty proceedings under the Act has also been extended from 30th September, 2021 to 31st March, 2022.

๐Ÿ‘‰Further, the time limit for issuance of notice and passing of order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988 has also been extended to 31st March, 2022.

๐Ÿ‘‰Notification no. 113 of 2021 dated 17th September, 2021 has been issued in this regard and can be accessed at www.incometaxindia.gov.in.

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⚫Direct tax mop-up crosses half of Budget Estimates at halfway point. Collection 28% higher over the same period in 2019-20, brightening economic recovery prospects.
⚫The Govt extended the deadline to link PAN with Aadhaar by six months till March 2022.
๐ŸŒ‘The due date for completion of penalty proceedings under the I-T Act has been extended from Sept 30, 2021 to March 31, 2022. Further the time limit for issuance of notice and passing of order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988 has been extended to March 2022.
⚫The GST Council decided to tax online food delivery operators such as Swiggy and Zomato on behalf of restaurants from January 2022. The Council also exempted expensive life saving drugs from indirect tax, extended concessional rates on Covid-related drugs for three more months, and addressed the issue of inverted duty structure in textiles, footwear, pens, specified renewable energy devices, and parts of locomotives, among other items.
⚫India gave more than 22 million Covid vaccine doses in a single day, setting a new record for daily vaccinations in the country.
๐ŸŒ‘UK govt eases rules for vaccinated travellers, India to benefit.

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Central Government relaxes provisions of TDS u/s 194A of the Income-tax Act, 1961 in view of section of 10(26) of the Act

๐Ÿ‘‰The Central Government in exercise of the powers conferred by sub-section(1F) of section 197A of the Income-tax Act, 1961(“the Act”) notified that no deduction of tax shall be made on the following payment under section 194A of the Act, namely payment in the nature of interest, other than interest on securities, made by a Scheduled Bank (hereinafter the ‘payer’) located in a specified area to a member of Scheduled Tribe  (hereinafter the ‘receiver’) residing in any specified area as referred to in s.10(26) of the Act, subject to the following conditions:

๐Ÿ‘‰1.the payer satisfies itself that the receiver is a member of Scheduled Tribe residing in any specified area, and the payment as referred above is accruing or arising to the receiver as referred to in section 10(26) of the Act, during the previous year relevant for the assessment year in which the payment is made, by obtaining necessary documentary evidences in support of the same;

๐Ÿ‘‰2.the payer reports the above payment in the statements of deduction of tax as referred to in sub-section (3) of section 200 of the Act;
๐Ÿ‘‰3. the payment made or aggregate of payments made during the previous year does not exceed twenty lakh rupees.
          
๐Ÿ‘‰ For the purposes of the said notification, ‘Scheduled Bank’ means a bank included in the Second Schedule of the Reserve Bank of India Act,1934.

๐Ÿ‘‰Notification no. 110/2021 dated 17th September, 2021 has been issued. It is available on www.incometaxindia.gov.in and also on www.egazette.nic.in .

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⚫Flipkart Wholesale, the digital B2B marketplace of the e-commerce firm, has formed a partnership with SME lending platform Davinta offering a ‘Buy Now Pay Later’ credit facility to all its retailers.
⚫Businesses that default on filing summary return and paying monthly GST will not be able to file GSTR-1 sales return of the succeeding month from January 1 next year.The GST Council has decided to streamline compliance, including mandatory Aadhaar authentication for businesses to file refund claims.
⚫India set a world record by administering 2.5 crore COVID vaccine doses in a single day on Friday. 
๐ŸŒ‘Domestic airlines will now be able to operate at 85% of their pre Covid capacity and set their own fares for tickets beyond fifteen days of the booking date.

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⚫The govt's newly minted PLI scheme for the automotive sector has left pure-play electric two-wheeler firms, including start-ups, disappointed. The policy structured for the big players leaves start-ups out of its ambit, making it “non-inclusive", rued executives at these co's.
๐ŸŒ‘Simplification, facilitation and ease of doing business has helped India create more startups. For promoting startups, the Govt is creating future global leaders and wants to become the innovation hub of the world, said Commerce and Industry Minister.
๐ŸŒ‘Big Tech under the scanner in India after South Korea slaps fine on Google. Regulators and startups in India are beginning to push back against what they see as monopolistic practices.
⚫CBDT chairman questions delay in time barred assessment proceedings. I-T dept to dispose of 35K cases by mth-end; Rs 10K-crore demand may be raised.
⚫Uttar Pradesh is in the grip of a mysterious dengue like fever that has killed at least 100 people, mostly children, in the past few weeks.
๐ŸŒ‘India recorded a spike of 30,809 new Covid-19 cases in the past 24 hours.

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Last date to link Aadhaar with PAN has been extended by the government. The last date for linking Aadhaar with PAN will now be March 31, 2022. Earlier, the last date to link PAN card with Aadhaar card was September 30, 2021.

 ITC-04 to be filed annually except where aggregate turnover in preceding financial year is above Rs 5 Cr, in which case it is to be filed half yearly. 

GST Council has decided to keep petroleum products out of the GST regime, while consumers will have to keep paying the Compensation Cess levied on products like automobiles till March 2026 instead of July 2022 as originally envisaged at the time of rolling out the indirect tax regime. 

Now CA Firms can generate UDIN within 60 days from date of signing of certificates /reports/ document instead of 15 days earlier.

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Friday, 17 September 2021

17 September 2021 Updates

Income Tax Interest @ 1% pm u/s 234A for late filing of ITR payable for ITRs of AY 21-22 filed after 31.7.21 if self assessment tax exceeds Rs. 1 lac.

Supreme Court urged the GST Council to reconsider the computation of input tax credit in value chains involving inverted tax structures formula and take a policy decision on the matter. However, the SC upheld the Madras HC judgment in favour of Central GST (CGST) rules that inverted duty refund is admissible only with respect to inputs for goods and not for input services.

GST Council meeting on Friday, the first physical meeting in more than 20 months, will deliberate on levying the Covid cess on pharmaceuticals and the power sector for intra-state supplies in Sikkim besides extending the states compensation period beyond 2022.

UCO Bank invites online application from practicing firms of Chartered Accountants in India for engagement as Concurrent Auditors to undertake Concurrent Audit assignment in designated branches/ offices through computerized application package and RLHs/AMBs/Service branches. No documents need to be submitted with online application. The online application portal will remain open from 13.09.2021 to 18.09.2021.
 
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⚫The Union Cabinet approved a production linked incentive scheme with a budgetary outlay of Rs 25,938 crore to boost domestic manufacturing capabilities of the automobile industry, including electric and hydrogen fuel cell vehicles.
⚫The Union Cabinet approved four year moratorium on spectrum related payments to telecom co's.The relief package is expected to give a boost to the current players, besides attracting international investment. 100% FDI under the automatic route has been permitted in the telecom sector, with all safeguards.
⚫The Union Cabinet cleared a production linked incentive scheme to make India a drone hub by 2030.
⚫The Govt will sell up to 10% stake in Hindustan Copper through an OFS in a move that would help the exchequer garner about Rs 1,120 crore in divestment receipts.  
⚫The new i-tax e-filing portal, is not completely glitch-free even as the deadline set for Infosys to fix the problems expired on Wednesday.
⚫Centre set to resume tourist visas after 1.5 yrs of suspension due to Covid.

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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether a Chartered Accountant who is appointed as tax auditor for conducting special audit under the Income-tax Act by the IT Authorities is required to communicate with statutory auditor? 
๐Ÿ‘‰ Ans :Yes, Council direction mentioned in Paragraph 2.14.1.8(xiii) under Clause (8) of Part I of First Schedule to the Act, appearing in Volume II of the Code of Ethics, prescribes that it would be a healthy practice if a tax auditor appointed for conducting special audit under the Income-tax Act, communicates with the members who has conducted the statutory/tax audit. 

๐Ÿต️ FAQ: Whether communication with previous auditor is necessary in case of appointment as statutory auditor by nationalized and other Banks?
๐Ÿ‘‰ Ans :Yes, Clause (8) of Part I of the First Schedule to the Act is equally applicable in case of nationalized and other Banks and also to Government agencies.

๐Ÿต️ FAQ: Whether communication by the Incoming auditor is mandatory with the previous auditor in respect of various audit assignments, like the concurrent audit, revenue audit, tax audit and special audits etc.? 
๐Ÿ‘‰ Ans :Yes, the requirement for communicating with the previous auditor would apply to all types of audits viz., statutory audit, tax audit, GST audit, internal audit, concurrent audit or any other kind of audit. The Council has laid down detailed guidelines in this regard and the same are appearing in Paragraph 2.14.1.8(xiv) to 2.14.1.8(xvii) under Clause (8) of Part I of First Schedule to the Act, appearing in Volume II of the Code of Ethics. 

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✳️DIRECT TAX CASE LA

Teleperformance Global Services Private Limited vs. ACIT (Bombay High Court)

WRIT PETITION No. 950 OF 2020

▶️Article 226/ s. 147: (i) A Writ Petition can be filed in the Bombay High Court against an order passed in Delhi if the assesse is based in Mumbai. The litigant has the right to go to ‘a Court’ where part of cause of action arises. (ii) A s. 148 notice & s. 147 reassessment order passed against an amalgamated (non-existing) company is without jurisdiction. The defect cannot be treated as procedural defect. Mere participation of the assesse in the assessment proceedings is of no effect as there is no estoppel against law. Such a defect cannot be cured by invoking section 292B (All imp judgments referred)

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๐Ÿ›ก️Ethics A Day๐Ÿ›ก️

๐ŸŽฏFAQ: What is an Administrative Services? What are the examples of Administrative Services?

✍️Ans: As per paragraph 602.3 A1 of Volume-I of Code of Ethics,
Administrative services involve assisting clients with their routine or mechanical tasks within the normal course of operations. Such services require little to no professional judgment and are clerical in nature.

๐Ÿ“ŒExamples of administrative services include:
• Word processing services.
• Preparing administrative or statutory forms for client approval.
• Submitting such forms as instructed by the client.
• Monitoring statutory filing dates, and advising an audit client of those dates.

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Goods and Services Tax

๐Ÿ‘‰ Advisory for Taxpayers regarding Generation of EWB where the principal supply is Supply of services.

Dated :16/09/2021

๐Ÿ‘‰1. Representations have been received from various trade bodies stating that they are not able to generate EWB bill for movement of those goods where their principle supply is classifiable as a service, since there is no provision for generating E-way Bill by entering SAC (Service Accounting Code-Chapter 99) alone on the E- way bill portal.

๐Ÿ‘‰2. To overcome this issue, the taxpayers are advised as below:

๐Ÿ‘‰a) Rule 138 of CGST Rules, 2017, inter alia, states “Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees….” Thus, E way bill is required to be generated for the movement of Goods.

๐Ÿ‘‰b) Therefore, in cases where the principal supply is purely a supply of service and involving no movement of goods, the e-way bill is not required to be generated.

๐Ÿ‘‰c) However, in cases where along with the principal supply of service, movement of some goods is also involved, e-way bill may be generated. Such situations may arise in cases of supply of services like printing services, works contract services, catering services, pandal or shamiana services, etc. In such cases, e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of services involved.
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✅ Advisory issued dated 16.09.2021 for taxpayers regarding generation of EWB where the principal supply is supply of services

✅SEIS applications for FY 18-19 and 19-20 can be filed by 31-12-2021

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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether public notice published in the newspaper by a Chartered Accountant individually or jointly with an Advocate in respect of acquisition of land by their client is permitted? 
๐Ÿ‘‰ Ans :Yes, in terms of the provisions of Paragraph 3.8.1 of Council Guidelines for Advertisement, 2008, appearing in Volume II of the Code of Ethics, the public notice published in the newspaper in respect of acquirement of land by their client is permissible.

๐Ÿต️ FAQ: Whether the members in practice can print their photograph on their visiting cards?
๐Ÿ‘‰ Ans :No, it is not permissible for the members in practice to print their photograph on their visiting cards. 

๐Ÿต️ FAQ: Whether it is permissible for a member in practice to publish an advertisement in the press for recruiting staff in the member’s own office?? 
๐Ÿ‘‰ Ans :Yes, in terms of the provisions of Paragraph 3.8.1 of Council Guidelines for Advertisement, 2008, appearing in Volume II of the Code of Ethics, it is permissible for a member in practice to publish an advertisement in the press for recruiting staff in the member’s own office provided that only the name and address of the member or that of his firm, with the description Chartered Accountant(s) is mentioned in such advertisement and the advertisement is not displayed more prominently than is usual for such advertisements or the name of the member or that of his firm with the designation Chartered Accountant(s) appears in type not bolder than the substance of the advertisement. 

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The Income Tax e-filing portal developed by Infosys continued to face glitches despite the September 15 deadline set by the government to iron out issues on the platform. The portal, which went live on June 7, has been plagued with technical problems, drawing the ire of the finance ministry as well as taxpayers who have voiced their concerns on social media networks. 



The GST fitment panel has specified the size of the container to distinguish between edible coconut oil and hair oil.

The fitment panel has suggested that coconut oil sold in a container of less than 1,000 milliliter may be classified as hair oil, attracting a GST rate of 18 per cent, irrespective of its actual end-use, said sources. Coconut oil sold in a container of 1,000 ml or above would be taxed as edible oil and attract 5 per cent GST.

The Union Cabinet allowed 100% foreign direct investment (FDI) in the country’s telecom sector via the automatic route, adding all safeguards will apply. Till now, only 49% of FDI was allowed through the automatic route and anything beyond this had to necessarily go through the government route.

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45th GST Council approves special composition scheme & capacity-based GST to be levied on certain items.

Council agrees to introduce special composition scheme for brick kiln sector from April 2022

Council prescribes GST rate of 6% without ITC, similar to services sector for brick kiln

Council agrees to raise GST on supply of bricks to 12% from 5% with ITC from April 2022

To bring in GST liability payment under reverse charge mechanism on mentha at 1st stage of supply

Council agrees to block IGST refund route on export of mentha

Council extends GoM’s time period by 3 mths to examine capacity-based levy on pan masala & tobacco products
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 CBIC extends 3 due dates- Amnesty Scheme Further Extended and Time Limit for Revocation of Cancelled GST Registrations and  GSTR-3B and FORM GSTR-1/ IFF  on 29th August 2021

The filing of FORM GSTR-3B and FORM GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature certificate (DSC) has already been enabled for the period from 27.04.2021 to 31.08.2021. This has been *further extended to 31st October, 202*. [Refer Notification No. 32/2021- Central Tax, dated 29.08.2021].

Notification No. 32/2021 – Central Tax New Delhi, Dated the 29 th August, 2021

G.S.R…(E).- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: —

Short title and commencement. –

These rules may be called the Central Goods and Services Tax (Seventh Amendment) Rules, 2021.

Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

In the Central Goods and Services Tax Rules, 2017, —

(i) in sub-rule (1) of rule 26, –
(a) in the fourth proviso, for the figures, letters and words “31st day of August, 2021”, the figures, letters and words “ *31st day of October, 2021” shall be substituted* ;
(b) *with effect from the 1 st day of November, 2021, all the provisos shall be omitted*;

(ii) with effect from the 1st day of May, 2021, in rule 138E, after the fourth proviso, the following proviso shall be inserted, namely: – “Provided also that the said restriction shall not apply during the period from the 1 st day of May, 2021 till the 18th day of August, 2021, in case where the return in FORM GSTR-3B or the statement of outward supplies in FORM GSTR-1 or the statement in FORM GST CMP-08, as the case may be, has not been furnished for the period March, 2021 to May, 2021.”;
(iii) in FORM GST ASMT-14, –

after the words, “with effect from ——”, the words, “vide Order Reference No. ——-, dated ——” shall be inserted;

the words, “for conducting business without registration despite being liable for registration” shall be omitted;

at the end after “Designation”, the word “Address” shall be inserted.

[F. No. CBIC-20006/24/2021-GST]
2. *The Government, vide Notification No. 19/2021- Central Tax, dated 01.06.2021, had provided relief to the taxpayers by reducing / waiving late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021, if the returns for these tax periods are furnished between 01.06.2021 to 31.08.2021, This has been further extended  (FORM GSTR-3B late fee GST Amnesty Scheme 2021) from 31.08.2021 up to 30.11.2021*. [Refer Not. No. 33/2021- Central Tax, dated 29.08.2021].
Read more for  GST Amnesty Scheme 2021 click below link

*COVID-19 Relief in 43rd GST Council meeting Dated 28.05.2021- With Press Release*

Click on Image for more (Magazine on GST Update)……..

Notification No. 33/2021 – Central Tax New Delhi, the 29 th August, 2021 G.S.R…..(E).—

In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 76/2018– Central Tax, dated the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1253(E), dated the 31st December, 2018,
namely:– In the said notification, in the ninth and tenth provisos, for the figures, letters and words ―31st day of August, 2021‖, where ever they occur, the figures, letters and words ―30th day of November, 2021‖ shall be substituted.
[F. No. CBIC-20006/24/2021-GST]
3. Extend timelines for filing of application for revocation of cancellation of GST registration to 30.09.2021, where due date for filing such application falls between 01.03.2020 to 31.08.2021, in cases where registration has been cancelled under clause (b) or clause (c) of section 29(2) of the CGST Act. [Refer Not. No. 34/2021- Central Tax, dated 29.08.2021].

Notification No. 34/2021 – Central Tax New Delhi, the 29 th August, 2021 G.S.R…..(E).–

In partial modification of the notifications of the Government of India in the Ministry of Finance (Department of Revenue), No. 35/2020-Central Tax, dated the 3 rd April, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 235(E), dated the 3 rd April, 2020 and No. 14/2021-Central Tax, dated the 1 st May, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 310(E), dated the 1 st May, 2021, in exercise of the powers conferred by section 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Government, on the recommendations of the Council, hereby notifies that where a registration has been cancelled under clause (b) or (c) of sub-section (2) of section 29 of the said Act and the time limit for making an application of revocation of cancellation of registration under sub-section (1) of section 30 of the said Act falls during the period from the 1 st day of March, 2020 to 31st day of August, 2021, the time limit for making such application shall be extended upto the 30th day of September, 2021.
 [F. No. CBIC-20006/24/2021-GST]
Click below link for View Procedure for Revocation of cancellation GST Registration

Revocation of cancellation of GST registration with Procedure for revocation of cancellation-With Fourth Amendment-2021 of CGST Rules
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UDIN - ICAI Council has decided UDIN can be generated within 60 days (in place of 15 days).

Formal Announcement at this link https://udin.icai.org/announcement/udin_2021-09-17

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Wednesday, 15 September 2021

15 September 2021 Updates

⚫India’s economic recovery, will be faster in the next three quarters even if a third wave hits the country. It is mainly due to the intensification of the vaccination drive and several economic parameters returning to pre-Covid levels.
⚫The Govt will clear all arrears under various export incentive schemes to help exporters address their liquidity concerns. In pursuit of this, it will release Rs 56,027 crore this fiscal year.
⚫Record SIP numbers bring cheer to mutual fund industry. Monthly SIP book nears Rs 10,000 cr, new SIP registration & AUM hit record highs.
⚫All eyes on Central Bank, IOB, after UCO exits PCA. Central Bank in its annual report for 2020-21 said it was complying with the PCA framework norms meticulously.
⚫India adds 43,263 cases inn 24 hours, Kerala contributes 30196.
๐ŸŒ‘China's app ban proves to be a jackpot for Indian mobile apps. Domestic publishers have filled the vacuum, increasing market share.
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๐Ÿ‘‰๐ŸปResponsibility of Govt to design convenient tax system so that individuals can budget & plan - SC
(SC said that in a taxation regime there is no room for presumption and it is the responsibility of the government to design a tax system which is convenient and simple so that an individual or a corporate can budget and plan)
๐Ÿ‘‡๐Ÿป ๐Ÿ‘‡๐Ÿป ๐Ÿ‘‡๐Ÿป
https://bit.ly/3l3ZJM4
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CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22.

The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31st July, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th September, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st December, 2021;

The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021, as extended to 31st October, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th January, 2022;

The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October, 2021, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st January, 2022;

The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th February, 2022;

The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 28th February, 2022;

The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, as extended to 31st January, 2022, vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st March, 2022;

It is also clarified that the extension of the dates as referred to in clauses (9), (12) and (13) of Circular No.9/2021 dated 20.05.2021 and in clauses (1), (4) and (5) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds rupees one lakh. Further, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021 dated 20.05.2021 and as above) provided in that Act, shall be deemed to be the advance tax

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๐ŸŽ‚1) Although due date of ITR extended but Interest U/s 234A shall apply if total tax payable is more than Rs. 1 lakhs

๐Ÿ’ 2) Due date of holding AGM by Companies for FY 2020-21 is still 30th Sept. 2021, so plan your schedule accordingly. Although option to do AGM with shorter notice with 95% members approval still available.

๐ŸŒด 3) Please keep in mind the requirements of Generating UDIN for signing Financial Statement of the Companies.

๐Ÿ‡ 4) Last date to pay Annual Membership/COP fees of ICAI is 30th September, 2021.

๐ŸŽ 5) Today Tax Audit utility for A Y. 2021-22 has been available at Income tax portal.
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⚫GST Council may take up proposal for cutting rate on steel scrap to 5%. The GST rate on other kinds of scrap has already been reduced from 18% to 5%.
⚫India may continue to face chip crunch for mobile devices for 6 more months. This will hit the affordable 4G segment phones particularly hard as they use a lot of low-priced high nanometer chips which are in even more short supply.
⚫A flood of IPOs has helped investment bankers pocket record fees in 2021. The fees earned from IPOs so far this year stand at Rs 1013 crore, the data from Refinitiv shows.
⚫13 auto firms have been in talks with govt for setting up business in India. Fresh investments may cross $4 bn.
๐ŸŒ‘To facilitate strategic disinvestment, the finance ministry has decided to allow the private sector company which takes over a public sector company to set off losses of previous years for the purpose of income tax subject to conditions.
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CBDT issues clarification regarding carry forward of losses in case of change in shareholding due to strategic disinvestment

๐Ÿ‘‰Finance Act, 2021 has amended section 72A of the Income-tax Act, 1961 (the Act) to inter alia provide that in case of an amalgamation of a public sector company (PSU) which ceases to be a PSU (erstwhile public sector company), as part of strategic disinvestment, with one or more company or companies, then, subject to the conditions laid therein, the accumulated loss and the unabsorbed depreciation of the amalgamating company shall be deemed to be the loss, or as the case may be, allowance for unabsorbed depreciation of the amalgamated company for the previous year in which the amalgamation was effected.

๐Ÿ‘‰In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector company which has become so as a result of strategic disinvestment. Accordingly, loss incurred in any previous year prior to, and including, the previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company. The above relaxation shall cease to apply from the previous year in which the company, that was the ultimate holding company of such erstwhile public sector company immediately after completion of the strategic disinvestment, ceases to hold, directly or through its subsidiary or subsidiaries, fifty-one per cent of the voting power of the erstwhile public sector company.

๐Ÿ‘‰The term “erstwhile public sector company” and “strategic disinvestment” shall have the meaning in Explanation to clause (d) of sub-section (1) of Section 72A of the Income-tax Act, 1961.

๐Ÿ‘‰Necessary legislative amendments for the above decision shall be proposed in due course of time.
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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether a Chartered Accountant will be deemed to be guilty of professional misconduct if he accepts his appointment as an auditor immediately after intimating his appointment over the phone to the previous auditor? 
๐Ÿ‘‰ Ans :Yes,the member would be held guilty of professional misconduct for the following reasons: (a) That he had failed to communicate with the retiring auditor in writing; and (b) That he did not wait for a reasonable length of time for a reply to be received from him.

๐Ÿต️ FAQ: Whether a Chartered Accountant can accept an appointment as auditor of a company without first ascertaining from it whether the requirements of the Companies Act, in respect of such appointment have been duly complied with?
๐Ÿ‘‰ Ans :No, as per Clause (9) of Part I of the First Schedule to the Act, a Chartered Accountant in practice shall be deemed to be guilty of professional misconduct if he accepts an appointment as auditor of a company without first ascertaining from it whether the requirements of Section 225 of the Companies Act, 1956 (sections 139 and 140 of Companies Act, 2013) in respect of such appointment have been duly complied with. In this regard, the Council has laid down detailed guidelines that are appearing in Paragraph 2.14.1.9(ii) to 2.14.1.9(xxxix) under Clause (9) of Part I of the First Schedule to the Act, appearing in Volume II of the Code of Ethics. 

๐Ÿต️ FAQ: Whether a statutory auditor of a company can be appointed in the adjourned meeting in place of existing statutory auditor where no special notice for removal or replacement of the retiring auditor is received at the time of the original meeting? 
๐Ÿ‘‰ Ans :No, if any annual general meeting is adjourned without appointing an auditor, no special notice for removal or replacement of the retiring auditor received after the adjournment can be taken note of and acted upon by the Company, since in terms of Section 115 of the Companies Act, 2013, special notice should be given to the Company at least fourteen clear days before the meeting in which the subject matter of the notice is to be considered. The meeting contemplated in Section 115 undoubtedly is the original meeting. Where at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company mentioned in Section 139. 
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Income tax department said a number of technical issues on the new ITR portal are being progressively addressed and 1.19 crore ITRs for 2020-21 fiscal year have been filed so far. the I-T department said over 8.83 crore unique taxpayers have logged into the portal till September 7, 2021 with a daily average of over 15.55 lakh in September. 

New taxpayers to update Bank Details in 45 days of the first login through Non-core amendment. Functionality to check status introduced on GST portal. 

Delhi High Court Ruling Set-aside Assessment Order in Violation of Section 144B of the Income Tax Act. Case Name : Pooja Singla Builders And Engineers Private Limited Vs National Faceless Assessment Centre & Ors (Delhi High Court). Appeal Number : W.P.(C) 9651/2021 & CM APPLs. 29810-11/2021. Date of Judgement/Order : 06/09/2021

GST compensation has turned out to be a significant portion of many states’ overall revenue receipts over the recent years. Such compensation was meant to be provided for a period of five years after the transition to the regime, and ends on June 30, 2022.

Reserve Bank Governor  said the stressed assets situation "looks manageable" as the stock of gross non-performing assets (NPAs) remained stable even after the second wave of pandemic. The banking system's gross NPAs were at 7.5 per cent while the same for non-bank lenders were even lower. 


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๐Ÿ‘‰๐ŸปHC stays order related to levy of GST on flat, villa maintenance charges
(Flat or villa owners paying more than ₹7,500 a month to their resident welfare associations towards maintenance charges will now have to pay Goods and Services Tax (GST) at the rate of 18% for the entire contribution since a Division Bench of the Madras High Court on Thursday stayed a single judge's order.)
๐Ÿ‘‡๐Ÿป๐Ÿ‘‡๐Ÿป ๐Ÿ‘‡๐Ÿป
https://bit.ly/3k1x4Ib
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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether a member in practice/ Firm of Chartered Accountants is permitted to use logo on letter-heads, stationery, etc.? 
๐Ÿ‘‰ Ans :No,the use of logo/monogram of any kind/form/style/design/colour etc. whatsoever on any display material or media e.g. paper stationery, documents, visiting cards, magnetic devices, internet, signboard by the members in practice and/or a firm of Chartered Accountants, is prohibited. Use/printing of member/firm name in any other manner tantamounting to logo/monogram is also prohibited. However, a common CA logo has been allowed to the members, provided it is used in the correct manner within terms of the Council guidelines.

๐Ÿต️ FAQ: Whether members of the Institute can use common CA logo?
๐Ÿ‘‰ Ans :Yes, the common CA logo can be used by all members, whether in practice or not. Encapsulating the current beliefs, attitudes and values of the profession, the CA logo seeks to enhance the identity of the members. The logo consists of the letters ‘CA’ with a tick mark (upside down) inside a rounded rectangle with white background.

๐Ÿต️ FAQ: Whether a member may put CA Logo on his website on the same background colour as that of the website? 
๐Ÿ‘‰ Ans :As per Logo Guidelines issued by ICAI, in the CA logo, the background colour of Logo has to be white. It is to be complied with accordingly, irrespective of the background colour of website.
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⚫India's retail inflation eases to four-month low of 5.3% in August from 5.59% in the previous month, led by subdued prices of food articles and a high base effect. 
⚫GST Council meet on Friday: Profiteering cases likely to go to CCI. The Council will also discuss bringing petroleum products within the GST ambit.
⚫IRDAI allowed insurers to continue selling and renewing short-term Covid specific health insurance policies till March 2022.
⚫India administered 75 million Covid-19 vaccine doses since the launch of a nationwide campaign.
๐ŸŒ‘SEBI penalises 2 Videocon promoter cos for violating insider trading norms.
๐ŸŒ‘About 700 buildings located in north Delhi were declared as dangerous structures in a pre-monsoon survey by the area's civic body.

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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Who is “previous auditor” for the purposes of communication to be made in terms of clause (8) of Part I of First Schedule to the Act? 
๐Ÿ‘‰ Ans :The term “previous auditor” as per Council guidelines mentioned in Paragraph 2.14.1.8(xvii) under Clause (8) of Part I of First Schedule to the Act, appearing in Volume II of the Code of Ethics, refers to the immediately preceding auditor who held the same or similar assignment comprising same/ similar scope of work. 

๐Ÿต️ FAQ: Whether a Chartered Accountant in practice can accept audit in case the audit fee of the previous auditor remains unpaid?
๐Ÿ‘‰ Ans :No, in case the undisputed audit fees for carrying out the statutory audit under the Companies Act, 2013 or various other statutes have not been paid, the incoming auditor should not accept the appointment unless such fees are paid. In respect of other dues, the incoming auditor should in appropriate circumstances use his influence in favour of his predecessor to have the dispute as regards the fees settled.The Council has taken the view that the provisions of audit fee made in accounts signed by both- the auditor and the auditee along with other expenses, if any, incurred by the auditor in connection with the audit, shall be considered as 'undisputed' audit fees. In this connection, attention of members is invited to the Council General Guidelines, 2008.

๐Ÿต️ FAQ: Whether posting of a letter under “Certificate of Posting” is sufficient to establish communication with retiring auditor? 
๐Ÿ‘‰ Ans :No, a mere posting of a letter “Under Certificate of Posting” is not sufficient to establish effective communication with the retiring auditor unless there is some evidence to show that the letter has in fact reached the person communicated with. Members should therefore communicate with a retiring auditor in such a manner as to retain in their hands positive evidence of the delivery of the communication to the addressee. In the opinion of the Council, the following would in the normal course provide such evidence:- (a) Communication by a letter sent through “Registered Acknowledgement due”, or (b) By hand against a written acknowledgement, or (c) Acknowledgement of the communication from retiring auditor’s vide email address registered with the Institute or his last known official email address , or (d) Unique Identification Number (UDIN) generated on UDIN portal (subject to separate guidelines to be issued by the Council in this regard) 
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 ๐ŸŽ To claim deduction of interest under section 24(b) of the Act, possession of property is not mandatory – ITAT bench of Mumbai held in the case of Abeezar Faizullabhoy v. CIT [ITA No.4831/MUM/2019]

๐ŸŒด Facts and findings: The Assessee claimed deduction of interest pertained to the funds which were borrowed by him for purchasing a residential property, however, the Assessee had not taken possession of the property. The AO disallowed the claim for deduction of interest. The CIT-A held that in the absence of any control/domain over the property, the Assessee would not be in receipt of any income from the same, therefore, allowing deduction under Sec. 24(b) qua the said property would be beyond comprehension.

๐Ÿ’ The ITAT bench of Mumbai held that the Assessee shall be entitled to claim deduction of any interest payable on capital borrowed by him for acquiring, constructing, repairing, renewing or reconstructing a property for claiming deduction of interest under section 24(b) of the Act and there is neither any precondition nor any eligibility criteria prescribed that the Assessee should have taken possession of property so purchased or acquired by him.

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⚫PM said the central Govt was working on a road map to transform India’s image from that of a defence hardware importer to an exporting country.
⚫Rolls-Royce and Hindustan Aeronautics Limited signed a “Make in India” agreement to manufacture parts for Rolls-Royce’s Adour engines that will support the UK co’s international defence customer base.
⚫India's annual wholesale price inflation rose to 11.39% in August from the previous month's 11.16%, mainly due to increases in the cost of fuel and manufactured items.
⚫GST Council may deliver blow to food delivery operators Swiggy, Zomato. Many restaurants are not depositing GST, while some are not even registered.
⚫Apple Inc unveiled a new iPhone 13 and 13 Mini with brighter screens to entice customers into 5G plans, while also announcing updates to its iPads and watches.
๐ŸŒ‘A study of 614 fully vaccinated health workers in India found a "significant" drop in their Covid-fighting antibodies within four months of the first shot. The findings could help the govt decide whether to provide booster doses as some Western countries have done.
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๐Ÿ‘‰NOTIFICATION 
New Delhi, the 13th September, 2021

๐Ÿ‘‰G.S.R. 627(E).—In exercise of the powers conferred by second proviso to clause (i) sub-section 
(1) of section 142 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of 
Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:-

1. Short title and commencement.- (1) These rules may be called the Income-tax (29th Amendment) 
Rules, 2021.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962, after rule 12E, the following rule shall be inserted, namely:-

“12F. Prescribed income- tax authority under second proviso to clause (i) of sub-section (1) of section 
142.- The prescribed income-tax authority under second proviso to clause (i) of sub-section (1) of section 
142 shall be an income-tax authority not below the rank of Income-tax Officer who has been authorised by 
the Central Board of Direct Taxes to act as such authority for the purposes of that clause.”.
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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : Whether a Chartered Accountant can accept appointment as an auditor after sending communication to the previous auditor through registered post without acknowledgment due? 
๐Ÿ‘‰ Ans :No, a Chartered Accountant cannot accept an appointment as an auditor after sending communication to the previous auditor through registered post without acknowledgment due, as this may tantamount to professional misconduct under clause (8) of Part I of First Schedule to the Act. 

๐Ÿต️ FAQ: Whether communication with the previous auditor, as contemplated under Clause (8) of Part-I of the First Schedule to the Act, is permissible vide messaging application/sms?
๐Ÿ‘‰ Ans : No, communication vide Messaging application/ sms is not permissible as an evidence of communication being sent , as required under Clause (8) of Part-I of the First Schedule to the Act.

๐Ÿต️ FAQ: What is the intention behind communicating with the retiring auditor? 
๐Ÿ‘‰ Ans :As per Council directions under Paragraph 2.14.1.8(i) under Clause (8) of Part-I of the First Schedule to the Act, appearing in Volume II of the Code of Ethics, professional courtesy alone is not the major reason for requiring a member to communicate with the existing accountant. The underlying objective is that the member may have an opportunity to know the reasons for the change in order to be able to safeguard his own interest, the legitimate interest of the public and the independence of the existing accountant. When making the enquiry from the retiring auditor, the one proposed to be appointed or already appointed should primarily find out whether there are any professional or other reasons why he should not accept the appointment. 
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CBDT allows taxpayers an opportunity to file application for settlement

๐Ÿ‘‰The Finance Act, 2021 has amended the provisions of the Income-tax Act, 1961 (“the Act”) to inter alia provide that the Income-tax Settlement Commission (“ITSC”) shall cease to operate with effect from 01.02.2021. Further, it has also been provided that no application for settlement can be filed on or after 01.02.2021, which was the date on which the Finance Bill, 2021 was laid before the Lok Sabha. In order to dispose off the pending settlement applications as on 31.01.2021, the Central Government has constituted Interim Board for Settlement (hereinafter referred to as the “Interim Board”), vide Notification no. 91 of 2021 dated 10.08.2021. The taxpayers, in the pending cases, have the option to withdraw their applications within the specified time and intimate the Assessing Officer about such withdrawal.

๐Ÿ‘‰It has been represented that a number of taxpayers were in advanced stages of filing their application for settlement before the ITSC as on 01.02.2021. Further, some taxpayers have approached High Courts requesting that their applications for settlement may be accepted. In some cases, the Hon’ble High Courts have given interim relief and directed acceptance of applications of settlement even after 01.02.2021. This has resulted in uncertainty and protracted litigation.

๐Ÿ‘‰In order to provide relief to the taxpayers who were eligible to file application as on 31.01.2021, but could not file the same due to cessation of ITSC vide Finance Act, 2021, it has been decided that applications for settlement can be filed by the taxpayers by 30th September, 2021 before the Interim Board if the following conditions are satisfied:-

๐Ÿ‘‰The assessee was eligible to file application for settlement on 31.01.2021 for the assessment years for which the application is sought to be filed (relevant assessment years); and
all the relevant assessment proceedings of the assessee are pending as on the date of filing the application for settlement.

๐Ÿ‘‰Such applications, subject to their validity, shall be deemed to be “pending applications” under clause (eb) of section 245A of the Act and shall be disposed of by the Interim Board as per the provisions of the Act.

๐Ÿ‘‰It is clarified that taxpayers who have filed such applications shall not have the option to withdraw such applications as per the provisions of section 245M of the Act. Further, the taxpayers who have already filed application for settlement on or after 01.02.2021 as per the direction of the various High Courts and who are otherwise eligible to file such application, as per para 3 above, on the date of filing of the said application shall not be required to file such application again.

๐Ÿ‘‰Legislative amendments in this regard shall be proposed in due course.
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Delhi High Court quashes asstt order passed without issuing show cause notice/ draft asstt order in faceless asstt scheme. 
Friends , High Courts are very particular on the principle of natural justice i.e giving fair opportunity to assessee to represent its case. Further AO is also duty bound to strictly follow the elaborate procedure prescribed for faceless scheme of Assessment under Section 144B. In view of the procedure prescribed under this section , please make sure to meticulously reply all the questions raised by AO with supporting evidences. The reply be detailed, self contained and like a spoon feeding to a child so that the reader is able to understand what you have written. If the AO is still not satisfied with your reply , he has to issue a show cause notice/ draft assessment order proposing the additions and reasoning for such additions. In response to such show cause notice / draft assessment order make sure to rebut each and every allegation stated in show cause/ draft assessment order with the reasoning why the proposed additions are incorrect. This reply should also be self contained with all documents / evidences attached, may be at the cost of repetition with suitably indexed and page numbered . The reply should give refrence to the page no of the relevant evidences/ documents . 
 Also & most importantly you must ask for a hearing through Video Conference (VC). AO will be duty bound to give VC hearing and hear you. Put your point and explain your issue which AO is not able to understand by reading your written submissions. If need be you can show (and later submit ) further evidences during VC hearing to support your case. 
In case AO doesn’t give you VC hearing after you have asked for in writing and on portal, the order will be liable to be quashed . On 30th September, 2021 assessment for A.Y. 2018-19 are getting time barred. So be alert and prompt in replying/ responding to any letter/ notice from AO as suggested above. 
Last but not the least please do read section 144B leisurely. This will help in handling faceless Assessments. 
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๐ŸŒบ Education cess incurred by assessee was an allowable deduction under section 37(1) – ITAT bench of Delhi held in the case of Metropolis Healthcare Ltd. Vs. DCIT [ITA No. 1546 & 1547/DEL/2018]

๐ŸŒด Findings: The ITAT Bench of Delhi recorded the findings that the issue of deduction of education cess as an allowable deduction which is covered in favour of the Assessee by the decision of the Hon’ble Bombay High Court in the case of Sesa Goa Ltd. Vs. JCIT [423 ITR 426] and therefore directed the learned assessing officer to grant the deduction of the same.
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 As September is the last chance to make compliance under various rules and regulations under the Goods and Service Tax Act in regard to FY 2020-21 so caution should be taken in relation to Inward supply and outward before the filing of GST Return for the month of Sept 2021 on following 7 Key Aspects.

Input Tax Credit (ITC) Related
1. Availment of Input Tax Credit for F.Y 2020-21: As per Section 16(4), a registered person shall not be entitled to take ITC in respect of any invoice or debit note for the supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier. Therefore, if any ITC in relation to any invoice/debit note pertaining to F.Y 2020-21 has not been claimed by the taxpayer then the same should be claimed in the month of Sept-2021.
2. Reconciliation of ITC appearing in GSTR-2A/ 2B with Inward Register: Input tax credit appearing in GSTR-2A/2B but not booked in purchase register should be identified and reconciled accordingly or in case the input tax credit has been availed in books of accounts but not reflected in GSTR-2A/2B should be reconciled and follow up for the same may be undertaken with the supplier so that it is reflected in GSTR-2A/2B. Also, the taxpayer shall ensure compliance with the limits specified under 36(4) for claiming ITC.
3. Apportionment of ITC as per Rule 42 & 43: In case the taxpayer is engaged in exempt supply and taxable supply, input tax credit availed is required to be reversed in a proportion of exempt supply to total turnover under rules 42 & 43 while filing GSTR-3B. Such reversal shall be calculated finally for the financial year before the due date for furnishing of the return for the month of September following the end of the financial year to which such credit relates. However, if reversal made in GSTR-3B is short/excess then the same shall be reversed/claimed respectively.
4. Reversal of ITC as per Rule 37 (Non Payment of Consideration within 180 days): A registered person, who has availed of an input tax credit on inward supply, but fails to pay to the supplier thereof, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in immediately following the period of 180 days from the date of the issue of the invoice needs to be reversed. Accordingly, the taxpayer should ensure whether the payment in respect of all the purchases made up to 31st March 2021 has been made to the supplier.
*Outward Supply Related*
5. Reconciliation of Outward Supply as per books of Accounts and GSTR-3B filed for the FY 2020-21: The taxpayer should reconcile the outward supply as per books of accounts and filed GSTR-3B so that any modification/rectification can be done till Sept-2021 i.e. if any sales have been short reported, not reported or excess reported as the case may be then the same shall be reported in the return for the month of Sept-21.
6. Amendment in GSTR-1: If any amendment is to be done in relation to outward supply then such amendment can be done in Sept-21. For e.g. In case any B2B supply has been reported as B2C then the same can be amended in the return of Sept-21.
7. Issuance of Credit Notes: As per Sec 34(2) of the CGST Act, Credit notes pertaining to invoices issued in F.Y.2020-21 cannot be issued after filing the return for the month of Sept-2021. Therefore, any credit note for FY 2020-21 should be issued by the month of Sept 2021.
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⚫The Union Cabinet approved the production linked incentive scheme for textiles for a budgetary outlay of Rs 10,683 crore to boost domestic manufacturing of man-made fibres, garments, and technical textiles.
⚫Equity mutual funds attracted a little over Rs 8,666 crore in August, making it the sixth consecutive monthly net inflow, on staggering investment in flexi-cap category.
⚫The Union Cabinet Committee on Security cleared the acquisition of 56 C-295MW medium transport aircraft from Airbus Defence and Space, Spain, in a deal worth $2.5-3 billion.
⚫Senior citizens above 75 years can avoid filing ITR from next year. Instead, they will just have to make a declaration in Form 12BBA to their bank, which will deduct TDS.
⚫Hit by GST recovery notices and summons, industry calls for help. GST authorities are issuing notices containing denial of input tax credit and in many cases they are blocking the entire input tax credit, even if only one vendor fails to deposit GST.
๐ŸŒ‘FPIs raise a storm over T+1 settlement cycle. Sebi introduced an optional T+1 settlement cycle for the markets, with effect from January 1.
⚫No visits to Ganesh pandals in Maharashtra, only online darshan allowed.
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๐Ÿ”ฎ Ethics of the Day๐Ÿ•ต๐Ÿป

๐Ÿต️ FAQ : What should be the sequence /order of designations, while a member also uses the designation ‘Dr.’ along with ‘CA’? 
๐Ÿ‘‰ Ans :The member is free to use the designation ‘Dr.’ along with ‘CA’ in whichever sequence/order he wants to. 

๐Ÿต️ FAQ: Which designation(s) can be mentioned by a member in practice empanelled as Insolvency Professional on his visiting cards, letter heads and other communication?
๐Ÿ‘‰ Ans :A member in practice empanelled as Insolvency Professional can mention “Insolvency Professional” on his visiting cards, letter heads and other communication, as this is recognized by the Central Government in terms of Clause (7) of Part –I of First Schedule to Act. Mention of any other nomenclatures/designations, including membership of any IPA is not allowed.

๐Ÿต️ FAQ: Whether a Chartered Accountant in practice can accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing? 
๐Ÿ‘‰ Ans :No, a Chartered Accountant in practice cannot accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing. It will be in violation of Clause (8) of Part I of First Schedule to the Act.
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๐Ÿ‘‰Students converted from earlier scheme to revised scheme from July 21, 2021 to August 20, 2021 allowed to appear in Old/ New scheme in November, 2021 examination - (08-09-2021)
https://www.icai.org/post/students-converted-from-earlier-scheme-to-revised-scheme

๐Ÿ‘‰Tokenisation – Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12159&Mode=0

๐Ÿ‘‰Tokenisation of Card Transactions – Enhancements
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52188

๐Ÿ‘‰CBI puts on hold probe into Rs 50,000 crore frauds related to public sector banks as states refuse consent
https://economictimes.indiatimes.com/industry/banking/finance/banking/cbi-puts-on-hold-probe-into-rs-50000-crore-psb-frauds-as-states-refuse-consent/articleshow/86026679.cms
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✅ Income Tax Settlement applications can be filed up to 30th September , 2021. This is a golden opportunity for those caught or likely to be caught for tax evasion. They can pay the tax and interest if any payable and get exemption from penalty and prosecution by filing the settlement applications.

✅ Individual/ HUF business assessees must e-file Form 10-IE by DUE DATE if they wish to opt for New IT regime. Non-business assessees can opt for it in ITR.

✅Students converted from earlier scheme to revised scheme from July 21, 2021 to August 20, 2021 allowed to appear in Old/ New scheme in November, 2021 examination - (08-09-2021)
https://www.icai.org/post/students-converted-from-earlier-scheme-to-revised-scheme

✅Now DSC not required while submitting reply in e-proceedings at Income tax portal.

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CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22 

Posted On: 09 SEP 2021 7:24PM by PIB Delhi
On consideration of difficulties reported by the taxpayers and other stakeholders in filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961(the “Act”), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22. The details are as under:

The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31st July, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th September, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st December, 2021;
The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021, as extended to 31st October, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th January, 2022;
The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October, 2021, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st January, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th February, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 28th February, 2022;
The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, as extended to 31st January, 2022, vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st March, 2022;
It is also clarified that the extension of the dates as referred to in clauses (9), (12) and (13) of Circular No.9/2021 dated 20.05.2021 and in clauses (1), (4) and (5) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds rupees one lakh. Further, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021 dated 20.05.2021 and as above) provided in that Act, shall be deemed to be the advance tax.

CBDT Circular No.17/2021 in F.No.225/49/2021/ITA-II dated 09.09.2021 issued. The said Circular is available on www.incometaxindia.gov.in.

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Following due dates have been extended which I believe in wake of the challenges put forward by the new Income Tax portal. 

a. Non-Audit tax returns - Extended to December 31, 2021
b. Tax Audit reports - Extended to January 15, 2022
c. TP Report - Extended to January 31, 2022
d. Audit tax returns - Extended to February 15, 2022
e. TP tax returns - Extended to February 28, 2022
f. Belated tax returns - Extended to March 31, 2022 from December 31, 2021. 

However, no extension has been announced under Companies Act, 2021 for holding AGM. Hence, Companies will still be required to compile their financial statements and present to their shareholders by Sept 30th, 2021. 
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๐Ÿ“ฒ Download my official Android app "Updates by CARJ" ๐Ÿ“š to stay connected with latest news and updates ๐Ÿ“


Thanks for reading