Sunday, 4 December 2022

3 December 2022 Updates

Few amendments carried out in the GST Law vide Finance Act, 2022 have been notified wef October 1, 2022. The important amendment being 

πŸ‘‰ 1. The last date for claiming the input tax credit for any financial year has been extended from due date of returns for the month of September to November 30 following the end of the Financial Year.

πŸ‘‰ 2. The last date for reporting the credit note has also been extended from September to November 30 following the end of the Financial Year.

♻️ Please note that these changes will apply to FY 21-22 as well. However, it is important to note that the ITC and Credit Notes are required to be reported by November 30, 2022 which effectively means that these need to be reported in the GSTR 3B for the month of October 2022 which is due by November 20, 2022.

🌐 Effectively, due date has been extended by one month.
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πŸ‘‰πŸ»GST offences up to Rs 5 Cr may be decriminalised
(Govt is working on a proposal to decriminalise certain offences under GST by raising the threshold limit from Rs 2 Cr to Rs 5 Cr in tax evasion cases)
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https://bit.ly/3gJq7fN
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πŸ‘‰πŸ»NFRA warns Auditors against non-accrual of interest on NPA borrowings
(Mere classification of the company’s loans as NPAs by the lender banks does not relieve the borrowing firm from its liability towards payment of interest or the principal)
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https://bit.ly/3Widb0u

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✅The CBDT has condoned the delay up to 25.11.2022 in the filing of Form no. 10A which was required to be filed electronically on or before 31.03.2022.
The Form 10A is required to be filed for re-registration of existing trust registered u/s 12A/12AA, for re-approval of existing trust or institution approved under section 10(23C)/80G and for filing of intimation by a research association or institution under section 35.
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✅ Income Tax Department proposes to introduce Common ITR Form to replace ITR 1 to ITR 7.
For this, the ITD has issued. Draft dated 1.11.2022 seeing inputs from stakeholders.
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✅ W.e.f. 01.11.2022 : Axis Bank, Indian Bank, Central Bank of India & ICICI Bank have been migrated from OLTAS e-Payment of Taxes facility to e-Pay Tax facility of E-Filing portal

Bank of India, Canara Bank, Bank of Maharashtra and Indian Overseas Bank have been already migrated
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πŸ‘‰πŸ»Govt. plans to deregister over 40,000 dormant companies
(MCA plans to deregister over 40,000 dormant companies which did not start business activities even after six months since incorporation)
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https://bit.ly/3NFEcY6

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Income Tax Department releases FAQs on Challan Status Inquiry; Only TAN users can download CSI file using their TAN as the User ID by following the steps to download CSI file through screenshots of the e-filing portal; Clarifies that CSI file cannot be downloaded by filtering challans based on the Assessment Year or Type of Payment and it can be download only by filtering challans paid during a specific period not exceeding 24 months.

Also clarifies that CSI file for period prior to 01.07.2022 cannot be downloaded through e-filing portal but from the click here button at the bottom of the e-Pay Tax screen, will redirect to “Protean portal (NSDL)” for downloading CSI file for the prior period.

Taxpayers should check their annual information statement every quarter and flag any discrepancies to help curb instances of wrongful HRA deductions.

India is looking to further fire up its manufacturing and export-intensive sectors through more support measures in the upcoming budget, eyeing the space created by a slowing Chinese economy. 

In a major setback to the builders in Noida and Greater Noida, the Supreme Court recalled its 2020 order, capping the interest rate at 8 per cent, for delay in payment of land cost by builders to the authorities. 

MEF - 2022-23 Last Date to file Multipurpose Empanelment form (MEF Form) is 9th November 2022.
Information forwarded by the Investigation Wing to the AO after the search at the assessee's premises and some slips of papers referred to by AO do not exist in the assessment records and are not referred to in the assessment order. 

Assessments made by the AO u/s 153A in the absence of any incriminating material are bad in law and therefore no addition could be made u/s 68 by treating the share capital and share premium as unexplained credit. UMA Polymers Ltd Vs. DCIT, 05/01/2022 (ITAT-Mumbai). 

Education is not a business to earn profit and tuition fees shall always be affordable, the Supreme Court has said while upholding the Andhra Pradesh High Court order quashing the state government's decision to enhance the tuition fee in medical colleges to Rs 24 lakh per annum. 

A bench of Justices M R Shah and Sudhanshu Dhulia imposed a cost of Rs 5 lakh on the petitioner, Narayana Medical College, and Andhra Pradesh to be deposited with the court registry within a period of six weeks. "To enhance the fee to Rs 24 lakh per annum i.e., seven times more than the fee fixed earlier was not justifiable at all. Education is not the business to earn profit. The tuition fee shall always be affordable,

Stepping up its anti-evasion drive, the goods and services tax (GST) wing of the Central Board of Indirect Taxes and Customs (CBIC) has started a process of issuing show-cause notices to thousands of entities for alleged evasion or under-payment of tax. 

It has already issued notices in about 20,000 cases among 34,000 scrutinised for tax evasion in 2017-18, the year in which the comprehensive indirect tax was rolled out, sources said. The tax department reckons that evasion by the entities in the year were to the tune of Rs 2,000 crore. It is also sending out notices to another lot of 35,000 cases for the year 2018-19. 

MEF Last date for submission of Multipurpose Empanelment Form extended from 9th November 2022 to 15th November 2022.

The Supreme Court Constitution Bench has by 3:2 majority upheld the validity of the 103rd Constitutional Amendment which introduced 10% reservation for Economically Weaker Sections (EWS) in education and public employment.
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πŸ‘‰πŸ»CBIC started a process of issuing show-cause notices to thousands of entities
(GST Deptt already issued notices in about 20,000 cases among 34,000 scrutinised for tax evasion in 2017-18, It is also sending out notices to another lot of 35,000 cases for the year 2018-19)
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https://bit.ly/3UIaJyP


GST authorities have detected GST fraud of 55,575 crore over the last two years and arrested over 700 persons for causing loss to the exchequer. Over 22,300 fake GST identification numbers (GSTIN) were detected by the officers of the Directorate General of GST Intelligence (DGGI).

The SEBI Settlement Scheme, 2022, aims at providing settlement opportunities to entities that executed reversal trades in the illiquid stock options segment of the BSE between April 1, 2014 and September 30, 2015, and against whom proceedings were initiated and are pending before any forum or authority such as the Securities Appellate Tribunal.

A significant change in FTP- Export Incentives for Export realization in INR. DGFT Issues Notification for consideration of INR payments under new mechanism for Export Incentives.

The much-awaited update to recognize the INR Payments received for exports as per the new RBI Circular dated 11th July 2022 to be made eligible for various Export Incentives under the FTP.

DGFT vide Notification No. 43/2015-20 dated 09.11.2022 and Public Notice No. 35/2015-20 dated 09.11.2022 has announced the same.

Export proceeds realized in INR as per the new mechanism under para 2.52(d) (ii) would be eligible for fulfillment under Export Obligations under FTP (2015-20) [Para 2.53 has been modified]

Status Holder Certificate criteria would be considered on basis of FOB in free foreign exchange or INR under para 2.53 [Para 3.20 has been modified]

Currency of Realisation has been modified to state that Export Proceeds must be realized in freely convertible currency or INR as per Para 2.53 [Para 4.21 has been modified]

Realisation of Export proceeds under Chapter 5 (EPCG) has been allowed in FFE or INR as per para 2.53.

CMIB of ICAI is organising CEO/ CFO meetings on 23/11/2022 at Hotel Radisson Blu, Noida and on 24/11/2022 at Hotel Le Meridien, Gurgaon. for participation contact cmib@icai.in

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National Financial Reporting Authority

πŸ‘‰NFRA introduces audit quality inspections

πŸ‘‰The National Financial Reporting Authority (NFRA) has published its audit quality inspection guidelines as a step towards further improving the quality of audit profession.

πŸ‘‰ The inspection guidelines are on the lines of the best practices followed by International Audit Regulators. In fact, Audit quality inspections are integral to the functioning of independent audit regulators, world-wide. The International Forum for Independent Audit regulators (IFIAR), which comprises independent audit regulators from 54 countries, requires that audit regulators, should as a minimum, conduct recurring inspections of audit firms undertaking audits of public interest entities in order to assess compliance with applicable professional standards, independence requirements and other rules, laws and regulations.

πŸ‘‰Also, in response to a NFRA’s consultation paper “Enhancing Engagement with Stakeholders’ in 2021, many stakeholders had suggested onsite inspection of audit firms by NFRA to help inspection teams familiarize themselves with the systems and processes followed by audit firms and also to enable the audit firms to comply with auditing standards, guidance etc in its audits.

πŸ‘‰NFRA’s inspections are intended to identify areas and opportunities for improvement in the audit firm’s system of quality control. Inspections will consist of firm-wide review of audit quality (SQC 1) and individual file reviews on test-check basis to evaluate the level of compliance with applicable auditing standards and quality control policy and processes. NFRA has clarified that inspections by nature, are distinct from investigations. 

πŸ‘‰However, in certain cases, test-check by the inspection teams may provide basis for enforcement or investigation under applicable provisions of the Act and Rules.

πŸ‘‰Audit quality inspections will provide an opportunity for feedback and course correction to the audit firms and at the same time foster a greater mutual understanding of the policies and procedures that underlie audit quality management. The inspections are intended to bring about systemic improvements in overall financial reporting framework in the country. The inspection guidelines are available at:

https://nfra.gov.in/sites/default/files/Inspection%20guidelines%20Final.pdf

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NFRA Introduces Audit Quality Inspection Guidelines for Audit Firms
(National Financial Reporting Authority (NFRA) brought out a set of guidelines for monitoring the audit firms’ quality and compliance standards)
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http://surl.li/drbvb
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The National Financial Reporting Authority (NFRA) has published its audit quality inspection guidelines as a step towards further improving the quality of the audit profession. The inspection guidelines are on the lines of the best practices followed by International Audit Regulators. 

In fact, Audit quality inspections are integral to the functioning of independent audit regulators, world-wide. The International Forum for Independent Audit regulators (IFIAR), which comprises independent audit regulators from 54 countries, requires that audit regulators, should as a minimum, conduct recurring inspections of audit firms undertaking audits of public interest entities in order to assess compliance with applicable professional standards, independence requirements and other rules, laws and regulations.

Also, in response to a NFRA’s consultation paper “Enhancing Engagement with Stakeholders’ in 2021, many stakeholders had suggested onsite inspection of audit firms by NFRA to help inspection teams familiarize themselves with the systems and processes followed by audit firms and also to enable the audit firms to comply with auditing standards, guidance etc in its audits.

NFRA’s inspections are intended to identify areas and opportunities for improvement in the audit firm’s system of quality control. Inspections will consist of firm-wide review of audit quality (SQC 1) and individual file reviews on test-check basis to evaluate the level of compliance with applicable auditing standards and quality control policy and processes. NFRA has clarified that inspections by nature are distinct from investigations. However, in certain cases, test-check by the inspection teams may provide basis for enforcement or investigation under applicable provisions of the Act and Rules.

Audit quality inspections will provide an opportunity for feedback and course correction to the audit firms and at the same time foster a greater mutual understanding of the policies and procedures that underlie audit quality management. The inspections are intended to bring about systemic improvements in the overall financial reporting framework in the country.
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Government is considering tightening the TDS framework for the online gaming sector to ensure that a better audit trail can be established for the money spent and earned from such activities and check evasion.

Supreme Court ruling on Section 194H TDS on actual gross fare charged by travel agents. Case Name : Singapore Airlines Ltd. Vs C.I.T (Supreme Court of India)

MAT provisions are not applicable if Gross Total Income and total income of assessee are nil. [Nijhawan Travel Service (P) Ltd. v. ACIT (2022) 144 taxmann.com 113 (ITAT Delhi)]

Insurance Regulatory and Development Authority (IRDAI) and the Pension Fund Regulatory and Development Authority's (PFRDA) have agreed to streamline the procedure of issuing annuity to NPS subscribers by using a withdrawal form.

Recovery for creditors from the resolution of stressed assets under the Insolvency and Bankruptcy Code (IBC) improved in the three months through September and stood at 30.2% of their admitted claims, according to the data compiled by the insolvency regulator.
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Income tax department offers an option of Co-browsing, which is also referred to as collaborative browsing. This enables help desk representatives to work alongside the taxpayer's browser in real-time and agents can monitor the taxpayer's browser screen and lead them interactively.

Supreme Court dismisses Special Leave Petition against Madras High Court judgment dismissing writ petition challenging the appointment of two Vice Presidents of ITAT where the Petitioner’s grievance was that the procedure for selection was contrary to Supreme Court ruling in Roger Mathew v. South Indian Bank Ltd. and Others – [Aniruthan v. Union of India & Ors. 

Expenditure incurred to modify lease premises to run ‘Domino’s outlet’ is allowable as revenue expenditure. [PCIT v. Jubilant Foodworks Ltd. (2022) 144 taxmann.com 128 (All.)]

Long Term Capital Gain (LTCG) on land co-owned cannot be assessed in the hands of a single owner. Case Name : E. Murugan Vs ITO (ITAT Chennai)

India and the Gulf Cooperation Council (GCC) are expected to launch negotiations for a free trade agreement on November 24 with an aim to boost economic ties between the two regions. GCC is a union of six countries in the Gulf region - Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain. 

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Condonation of delay up to 25.11.2022 in the filing of Form no. 10A which was required to be filed electronically on or before 31.03.2022. 

The Form 10A is required to be filed for re-registration of existing trust registered u/s 12A/12AA, for re-approval of existing trust or institution approved under section 10(23C)/80G and for filing of intimation by a research association or institution under section 35.
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✅ GSTR-9
Requirement : Turnover exceeding 2 Crs
Due Date : 31st December 

✅ GSTR-9C
Requirement : Turnover exceeding 5 Crs
Due Date : 31st December
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Economic Times

πŸ“ Domestic air traffic crosses 4 lakh-mark for two straight days
πŸ“ Bharat Biotech’s intranasal vaccine gets CDSCO nod
πŸ“ Fusion MicroFinance Q2 Results: Net profit at Rs 95 crore on improved repayment collection efficiency
πŸ“ Dharmaj Crop Guard IPO subscribed 1.79 times on Day 1
πŸ“ Govt's paddy procurement up 9 pc at 306 lakh tonnes so far this year
πŸ“ Centre prepares monthly plan under Gati Shakti for awarding 235 critical road projects
πŸ“ Bank credit grows to 17.2 per cent in September, reveals RBI data
πŸ“ Ola Electric opens 14 new experience centres in India, plans 200 by year-end
πŸ“ NBCC gets Rs 271.62 crore order in stalled projects of erstwhile Amrapali Group
πŸ“ Startup Homesfy Realty raises $1.1 million from investors; files draft paper to launch IPO
πŸ“ Specialty chemicals startup Covvalent raises $4.3 million in seed funding from Nexus VP, others
πŸ“ Dhruva Space looking to raise $20-25 million in 2 years for satellite infra facilities
πŸ“ If delay in FTA talks, GCC nations can join India-UAE trade deal
πŸ“ Reise Moto introduces two-wheeler tyre for domestic market in joint-venture
πŸ“ Bird Group's Roseate Hotels to develop first hotel near Noida airport
πŸ“ Mankind Pharma acquires stake in Upakarma Ayurveda for undisclosed sum
πŸ“ Sebi gives nod to appointment of Ramamurthy as MD & CEO of BSE
πŸ“ NDTV promoter firm RRPR Holding transfers 99.5% shares to Adani's VCPL
πŸ“ Passenger vehicle makers to spend Rs 65,000 cr on capacity expansion: Icra
πŸ“ Bharat Biotech gets nasal vaccine nod for use as mix-match booster
πŸ“ HCLTech signs multi-year contract with Swiss MRO firm SR Technics
πŸ“ Welspun One Logistics Parks Fund 1 commits Rs 500 crore warehousing AIF
πŸ“ Shapoorji Pallonji Real Estate raises Rs 450 crore from Motilal Oswal
πŸ“ Centre gets huge dividend tranche of Rs 5,001 crore as dividend from ONGC
πŸ“ C4D Partners gets Sebi's nod to launch fund to invest in Indian startups
πŸ“ S&P Global Ratings lowers India's FY23 GDP growth forecast to 7%
πŸ“ Kotak Bank arm may raise up to $1 bn for data centre fund
πŸ“ Fintech lenders disburse Rs 14k-crore loans in second quarter of FY23
πŸ“ Expert panel to restructure MGNREGS
πŸ“ Pakistan, IMF begin online talks on $7 billion loan review
πŸ“ Power Ministry launches schemes to procure 4,500 MW electricity supply for five years
πŸ“ Rupee rises 5 paise to close at 81.66 against US dollar
πŸ“ US to auction almost 1 million acres off Alaska for oil drilling
πŸ“ Firms cautious of capex amid global uncertainties: BofA
πŸ“ TVS-backed Ultraviolette eyes exports to US, Europe
πŸ“ Aditya Birla’s TMRW invests Rs289 cr in eight D2C brands
πŸ“ Irish watchdog fines Meta $277 million in latest privacy case
πŸ“ Govt upgrades IT to check cyber threats
πŸ“ Fed's Williams says more rate rises needed, sees higher unemployment
πŸ“ Dhanlaxmi Bank to raise ₹200 Cr via Tier 2 bonds
πŸ“ Karnataka govt launches remote ICU services in 41 state-run hospitals
πŸ“ Jet Airways resolution plan totters due to disagreement with creditors: Report
πŸ“ FM Sitharaman concludes pre-Budget consultations.
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Thanks for reading

Wednesday, 26 October 2022

24 October 2022 Updates

CBDT said that OTS or loan waiver by a bank will not be treated as a benefit or a perquisite and not face Tax Deducted at Source as they would have to bear the additional cost of tax deduction besides the haircut. The exemption will be available to all public financial institutions, scheduled banks, cooperative banks, rural development banks, state financial corporations, and state industrial investment corporations.

Karnataka High Court admits Revenue’s appeal against ITAT ruling in Infosys BPM where ITAT allowed the grant of foreign tax credit against income eligible for Section 10AA exemption, by following Karnataka High Court ruling in Wipro Ltd. v. DCIT (2016) 382 ITR 179 (Karn.);

SLP admitted by the Supreme Court against Madras High Court's decision in Karti P. Chidambaram v. Deputy Director of Income Tax (Investigation), Chennai (2021) 431 ITR 261 : (2020) 122 taxmann.com 146 (Mad.) 

The Central Board of Indirect Taxes and Customs has issued a Circular No.180/12/2022-GST dated September 9, 2022 regarding Guidelines for filing/revising TRAN-1/TRAN-2.

Finance Minister Nirmala Sitharaman underscored the significance of micro, small and medium enterprises (MSMEs) in order to assess how India can benefit from its vast labour force.
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MCA Amendment in definition of Small Company, Section 2(85) of the Companies Act, 2013

With effect from today i.e. 15th September, 2022, MCA has amended the Companies (Specification of definition details) Rules amending the definition of _Small Company_, the limit of Paid up Capital and Turnover for the small company has been increased to Rupees Four Crores (Earlier 2 Crs.) and Rupees Forty Crores (Earlier 20 Crs.) respectively.

Notification Link: https://www.mca.gov.in/bin/dms/getdocument?mds=tiMs9IFJ8xuPm%252B%252Foxc6fUw%253D%253D&type=open

Nevertheless to mention, as the Amendment is effective from today i.e. 15th September, 2022, the earlier threshold limit of Rupees Two Crores and Twenty Crores for Paid Up Share Capital and Turnover respectively for the purpose of Preparation of Cash Flow Statement and Reporting under CARO, 2020 for the financial year ended 31st March, 2022
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✅ Amendment in definition of SMALL Company

MCA amended the Companies (Specification of definition details) Rules amending the definition of *small company w.e.f. 15.09.2022 the limit of paid up capital and turnover for the small company has been increased to rupees four crore (Earlier 2 Crs.) and rupees forty crore (Earlier 20 Crs.) respectively.

New limit:

Paid up Capital – Rs. 4 Crs.
Turnover – Rs. 40 Crs. 

Link: https://www.mca.gov.in/bin/dms/getdocument?mds=tiMs9IFJ8xuPm%252B%252Foxc6fUw%253D%253D&type=open

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CBDT has amended Rule 121A and Form 52A. Form 52A shall be filed electronically within 60 days from the end of the previous year. The Govt. has widened the scope of section 285B to include persons engaged in ‘specified activities i.e. event management, documentary production, etc. To incorporate this change in the existing Rule & Form. 

CBDT issued Circular no 18 dated 13.9.22 clarifying issues on section 194R : 

One-time loan settlement with borrowers or waiver of loan granted on reaching settlement with the borrowers by the following would not be subjected to tax deduction at source

Amount incurred by such "pure agent" for which he is reimbursed by the recipient would not be treated as benefit/perquisite for the purpose of section 194R of the Act.

If out of pocket expense is already included as part of professional fee, then there IS no further benefit/perquisite which requires tax deduction

If benefit/perquisite is provided in a group activity in a manner that it is difficult to match such benefit/perquisite to each participant using a reasonable allocation key, the benefit/perquisite provider may at his option not claim the expense, representing such benefit/perquisite, as deductible expenditure for calculating his total income. If he decides to opt so, he will not be required to deduct tax under section 194R. 

Dealer can get depreciation benefit on the gifted car when tds has already been deducted u/s 194R

Section 194R is not applicable on benefit/perquisite provided by, an organization in scope of The United Nations (Privileges and Immunity Act) 1947, an international organization whose income is exempt under specific Act of Parliament (such as the Asian Development Bank Act 1966), an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign state.

Section 194R of the Act is not required to be deducted on issuance of bonus or right shares by a company in which the public are substantially interested as defined in clause (18) of section 2 of the Act, where bonus shares are issued to all shareholders by such a company or right shares are offered to all shareholders by such a company. 

Revenue collection from GST has been trending at over Rs 1.4 lakh crore in the past six months consecutively but has not crossed the Rs 1.5-lakh-crore-mark yet on a consistent basis.

MCA Amendment With effect from 15th September, 2022, MCA has amended the Companies (Specification of definition details) Rules amending the definition of Small Company the limit of Paid up Capital and Turnover for the small company has been increased to Rupees Four Crores (Earlier 2 Crs.) and Rupees Forty Crores (Earlier 20 Crs.) respectively.

ICAI is privileged and delighted to host the 21st World Congress of Accountants 2022 - the Olympics of Accountants being held for the first time in India from 18th–21st November 2022 in Mumbai, India. The event is expected to be attended by more than 6000 delegates in physical mode and about 10000 delegates virtually from across the globe.

The upcoming World Congress would dwell upon the theme, Building Trust, Enabling Sustainability keeping in mind the important role the accountancy profession plays in protecting public interest and also ensuring sustainable economies for the future.

Kindly visit our website WCOA 2022 https://www.wcoa2022mumbai.org/ for registration. The details of the registration are mentioned on the registration form with fees applicable.Registration URL - https://www.wcoa2022mumbai.org/register
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CBDT has amended Rule 121A and Form 52A. Form 52A shall be filed electronically within 60 days from the end of the previous year. The Govt. has widened the scope of section 285B to include persons engaged in ‘specified activities i.e. event management, documentary production, etc. To incorporate this change in the existing Rule & Form. 

CBDT issued Circular no 18 dated 13.9.22 clarifying issues on section 194R : 

One-time loan settlement with borrowers or waiver of loan granted on reaching settlement with the borrowers by the following would not be subjected to tax deduction at source

Amount incurred by such "pure agent" for which he is reimbursed by the recipient would not be treated as benefit/perquisite for the purpose of section 194R of the Act.

If out of pocket expense is already included as part of professional fee, then there IS no further benefit/perquisite which requires tax deduction

If benefit/perquisite is provided in a group activity in a manner that it is difficult to match such benefit/perquisite to each participant using a reasonable allocation key, the benefit/perquisite provider may at his option not claim the expense, representing such benefit/perquisite, as deductible expenditure for calculating his total income. If he decides to opt so, he will not be required to deduct tax under section 194R. 

Dealer can get depreciation benefit on the gifted car when tds has already been deducted u/s 194R

Section 194R is not applicable on benefit/perquisite provided by, an organization in scope of The United Nations (Privileges and Immunity Act) 1947, an international organization whose income is exempt under specific Act of Parliament (such as the Asian Development Bank Act 1966), an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign state.

Section 194R of the Act is not required to be deducted on issuance of bonus or right shares by a company in which the public are substantially interested as defined in clause (18) of section 2 of the Act, where bonus shares are issued to all shareholders by such a company or right shares are offered to all shareholders by such a company. 

Revenue collection from GST has been trending at over Rs 1.4 lakh crore in the past six months consecutively but has not crossed the Rs 1.5-lakh-crore-mark yet on a consistent basis.

MCA Amendment With effect from 15th September, 2022, MCA has amended the Companies (Specification of definition details) Rules amending the definition of Small Company the limit of Paid up Capital and Turnover for the small company has been increased to Rupees Four Crores (Earlier 2 Crs.) and Rupees Forty Crores (Earlier 20 Crs.) respectively.

ICAI is privileged and delighted to host the 21st World Congress of Accountants 2022 - the Olympics of Accountants being held for the first time in India from 18th–21st November 2022 in Mumbai, India. The event is expected to be attended by more than 6000 delegates in physical mode and about 10000 delegates virtually from across the globe.

The upcoming World Congress would dwell upon the theme, Building Trust, Enabling Sustainability keeping in mind the important role the accountancy profession plays in protecting public interest and also ensuring sustainable economies for the future.

Kindly visit our website WCOA 2022 https://www.wcoa2022mumbai.org/ for registration. The details of the registration are mentioned on the registration form with fees applicable.Registration URL - https://www.wcoa2022mumbai.org/register

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√ Adani group pips Tata group in m - cap 
√ International trade can now be settled in rupee
√ Exporters rue 20% duty on rice as Thailand, Vietnam look to capitalise 
√ India faces WTO heat over rice export curbs 
√ Adani set to invest ₹ 20k Cr in Ambuja 
√ IDBI privatisation is a political threat for the government 
√ FairFax India to sell Fairchem organics stake 
√ Centre reduces windfall tax on Oil ₹ 10,500 A tonne 
√ US stocks record biggest weekly loss in month as Fed meetings loom 
√ Germnay seizes control of Rosneft oil refineries 
√ Chinas local government financing vehicle go on land buying spree 
√ Climate change intensified Pakistan rains up to 50% report indicates
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Delhi High Court dismisses the writ petition challenging reassessment proceedings under the new regime for AY 2013-14 where the original notice was issued under the old regime on 29.06.2021 and pursuant to Supreme Court ruling in Union of India and others v. Ashish Agarwal decided on 4.5.2022 and reported in 2022 SCC OnLine SC 543, notice under the new regime was issued on 20.07.2022. 

Government may finally increase interest rates on small savings schemes such as Public Provident Fund (PPF), Sukanya Samriddhi Savings Scheme, Senior Citizen Savings Scheme (SCSS), and National Savings Scheme (NCS) in the forthcoming rate review on September 30.

Insolvency and Bankruptcy Board of India (IBBI) has prescribed minimum fee slabs for resolution professionals representing bankrupt firms from October 1 onwards so that such professionals are adequately compensated.

SIDBI, the principal financial institution engaged in the promotion, financing and development of MSMEs, has brought out profiles of 16 states with respect to their enterprise/industrial policies and good practices adopted to promote MSMEs through Project Management Units (PMUs) set up by the bank.

Made in India semiconductors could drastically reduce the prices of finished products, Vedanta Chairman Anil Agarwal said. Today, a laptop costs Rs 1 lakh, and once the glass as well as the semiconductor chip are available, the same can be priced at Rs 40,000 or less. The glass that is currently being produced in Taiwan and Korea will very soon be manufactured in India too.
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CBDT has revised the instruction on the compounding of offences under various sections of the Income Tax Act 1961. The revised instructions are attached for your reference.

​Centre's advance direct tax collections grew by about 22% on year to Rs 1.81 trillion in the second quarter of the current financial year. 

​Starting 1st October 2022, all GST-registered businesses with a turnover of INR 10 crore or more will need to generate e-Invoices for all B2B transactions.

GST registration cannot be granted on disputed premises. Case Name : Parveez Ahmad Baba Vs Union Territory of J & K and others (Jammu & Kashmir High Court).

Kerala, in its pursuit to boost the Micro Small and Medium Enterprises (MSMEs) in the state, will take help of the Union Government's Open Network for Digital Commerce (ONDC) to ensure they get a level playing field with e-commerce majors like Amazon and Flipkart.

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✅ non-payment of Membership/COP fee within 30th September 2022* shall result in the Removal of Name from Register of Members and Cancellation of COP. Please note that the payment of fee shall be made online only through Self-Service Portal (SSP) at the link https://eservices.icai.org/. Kindly ignore if already paid.
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πŸ—ž️India's banking system liquidity slips into deficit: RBI
πŸ—ž️KKR, Hero to pump $450 million into Hero Future Energies, raise valuation to over $1 billion
πŸ—ž️Yes Bank okays sale of $6 billion stressed debt to JC Flowers
πŸ—ž️Adani pledges stake worth $13 billion in newly acquired Holcim cement unit 
πŸ—ž️Essar to invest USD 4 bn in steel plant in Saudi Arabia
πŸ—ž️Tourism sector to contribute USD 250 billion to GDP by 2030: Centre
πŸ—ž️India's GDP likely to grow 7.2-7.4% in FY23, says CEA Nageswaran
πŸ—ž️M&M to acquire Swaraj Engines' 17.41% stake from Kirloskar Industries
πŸ—ž️Japan's Kirin in talks to triple investment in beer maker Bira: Report
πŸ—ž️Ola Electric plans to hire 3K to focus on non-software engineering domains
πŸ—ž️India would be $25-trn economy in 25 years: NaBFID Chairman K V Kamath
πŸ—ž️Air India Express incurs net loss for the first time in seven years.
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The Finance ministry is planning to define the characteristics of cryptocurrencies, their use, and how they fit into the existing legal framework. 

The Finance Minister said Work is going on to implement a common KYC for all financial transactions. The common KYC can be used for undertaking various financial transactions across institutions. 

Right to Residence cannot be curtailed by State Reorganization Act: Case Name : State of Telangana Vs B. Subba Rayudu and Others (Supreme Court of India). 

DGFT has sought details of the rice stranded at ports for which Indian exporters had entered into agreements with global buyers before the government imposed a 20% export duty on September 9.

IBBI has notified the IBBI (Liquidation Process) (Second Amendment) Regulations 2022 (Amendment Liquidation Regulations), and IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations 2022 (Amendment Voluntary Liquidation Regulations).
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Delhi High Court held that alleged transaction not relating to the assessee in as much as in the information on Insight portal the name of the assessee was of some other person, no transaction done in unlisted shares through Asian Bulls , all mistakes were due to wrong posting in Insight portal, the AO had to apply his own mind and analyse the reply of the assessee. AO was personally called in the court. Notice U/S 148 with order U/S 148A(d) quashed.

High Court erred in entertaining writ petition against assessment order by-passing statutory remedies without any valid reasons, especially when there were serious disputes on facts as to date of assessment order. State of Maharashtra and others v. Greatship (India) Ltd. - Date of Judgement : 20.09.2022 -(SC)]

Karnataka bench of the GST-Authority for Advance Rulings (AAR) has held that goods and services tax (GST) is not applicable on sale of plots even if these are sold after completion of works related to basic necessities (such as land levelling, installation of sewage lines etc. 

Rajasthan Assembly on Thursday passed the Rajasthan Goods and Services Tax (Amendment) Bill, 2022, which proposes that the registration of companies would not be cancelled even if they fail to file the return for six months. Also, the system of issuing credit notes will also start. 

ICAI is proud to launch the Official Mobile App of the 21st World Congress of Accountants to be held in Mumbai. 
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✅Section 16(4) amendment will be effective from 1 October 2022 which prescribes that ITC can be availed and CN can be issued till November of the subsequent year. ITC Availment limit for FY 21-22 would be 30th November.

✅E-Invoice applicability from 01/10/22 for businesses with an annual turnover exceeding 10 crores in any previous financial year from FY 2017-18.
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Few amendments carried out in the GST Law vide Finance Act, 2022 have been notified wef October 1, 2022. The important amendment being 

πŸ‘‰ 1. *The last date for claiming the input tax credit for any financial year has been extended from due date of returns for the month of September to November 30 following the end of the Financial Year.

πŸ‘‰ 2. The last date for reporting the credit note has also been extended from September to November 30 following the end of the Financial Year.

♻️ Please note that these changes will apply to FY 21-22 as well. However, it is important to note that the ITC and Credit Notes are required to be reported by November 30, 2022 which effectively means that these need to be reported in the GSTR 3B for the month of October 2022 which is due by November 20, 2022.

🌐 Effectively, due date has been extended by one month.
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CBDT extends the due date for filing of various reports of audit for Assessment Year 2022-23 from 30th September, 2022 to 7th October, 2022 for certain categories of assessees. Circular No. 19/2022 dated 30.09.2022. 

Finance minister asked the Income-Tax department to quickly process tax returns, issue refunds and redress grievances. Sitharaman said pending cases need to be resolved expeditiously and that the department could run a campaign for this on the lines of public sector banks.

E-invoice limit in GST reduced from Rs. 20 Crores to Rs. 10 Crores wef 01/10/2022 i.e for any registered person with aggregate turnover exceeding Rs. 10 Crores in any FY 2017-18 onwards has to issue E-invoice w.e.f 1st October 2022.

CBIC has extended the last date for taking input tax credit (ITC) for FY22 from October 20 to November 30. The due date for issuance of credit notes and declaration in the returns for FY22 has also been extended to November 30.

RBI hikes repo rate by 50 bps to 5.9% as battle on inflation continues in full swing. Monetary Policy Committee voted with 5-1 majority to increase repo rate by 50 bps to 5.9%. 

Inflation continues to be at alarming high levels across jurisdictions, he added. Economic activity in India “remains stable.” It gives us confidence to deal with aggressive policies of other central banks.

SEBI is set to allow companies holding initial public offerings (IPOs) to submit confidential pre-filing of offer documents; relax open offer pricing norms for the disinvestment of public sector undertakings (PSUs); and seek enhanced disclosures from startups in offer documents on the IPO issue price.
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✅The CBIC, helpdesk has clarified that benefit of an extended time limit to avail Input Tax Credit till November 30, 2022 is applicable for the Financial Year 2021-2022 as well.

✅Extended due date for filing of various reports of audit under any provision of the Act for AY 2022-23 - is 7th October, 2022 for certain categories of assessees.

✅ E-Invoice applicability from 01/10/22 for businesses with an annual turnover exceeding 10 crores in any previous financial year from FY 2017-18.
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πŸ‘‰WMEC is organizing Sky High Symposium-25 Live Webinar on Investment Outside India- New Regulatory Framework & Introduction to Revised Code of Ethics on 12th October 2022 from 5:00 PM to 7:00 PM

https://www.icai.org/new_event.html?event=6508

πŸ‘‰Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 - Disclosure of Divergence in Asset Classification and Provisioning (11-10-22)

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI130D54317FD9BE84CEF95FE968AA883887E.PDF

πŸ‘‰CBIC notified the foreign currency exchange rates for Imports and Exports

https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2022/cs-nt2022/csnt87-2022.pdf

πŸ‘‰MFI loans up 18% on year in April-June: Report(12-10-22)

https://economictimes.indiatimes.com/industry/banking/finance/banking/mfi-loans-up-18-on-year-in-april-june-report/articleshow/94792648.cms

πŸ‘‰ Youtube channel
https://www.youtube.com/channel/UCwAq-U2ls2crYBoD4YSTPtA
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The Ministry of Finance has invited suggestions from the Industry and Trade Associations for formulating the proposals for the Union Budget of 2023-24. The stakeholders may send suggestions for changes in the duty structure, rates, and broadening of the tax base on both direct and indirect taxes giving economic justification.

Finance minister said that digital banking units (DBUs) would promote financial inclusion and digital literacy, which will boost the formalisation of the economy. DBUs are physical banking outlets that will provide services without requiring paper.

Goods and Service Tax Council has made it mandatory for businesses with an annual turnover of over ₹ 5 crore to move to e-invoicing from next year. Such businesses will have to generate electronic invoices for business-to-business (B2B) transactions starting January 1, 2023. 

Government is considering proposals to extend the Rs 35,000 crore PLI scheme to different sectors. These sectors include leather, bicycle, some vaccine materials, and certain telecom products. 

Technology for MSMEs: More than 6.33 billion businesses make up India's MSME sector, employing over 11 billion people. Nearly 30 percent of the nominal GDP of the nation is contributed by this industry, which has been expanding at a CAGR of 18.5 percent.

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▪️Kalyani Group to set up world’s largest artillery manufacturing facility in India
▪️GAIL (India) emerges as successful bidder for JBF Petrochemicals
▪️Lulu Group to invest Rs 3,000 cr to set up India’s biggest mall at Ahmedabad
▪️India has sufficient stocks of grains, could sell wheat in open market
▪️Global branding push for 400 items to boost exports
▪️Delhi: Over 50 lakh vehicles deregistered by transport department till 17 Oct
▪️Indian Railways running 211 special trains to meet festival season rush
▪️MSP hiked for wheat, pulses, mustard
▪️Senior ICAS officer Bharati Das takes charge as Controller General of Accounts
▪️India examining proposal to raise palm oil import tax
▪️SC: Citing period of custody and release of co-accused, grants bail to Applicant for an offence punishable u/s 132 of the CGST Act; Diposes appeal industry needs govt support for ethanol production: ISMA
▪️CCI slaps penalties totalling Rs 392 crore on MakeMyTrip, Goibibo, Oyo
▪️Pradeep Singh Kharola appointed CMD of India Trade Promotion Organization
▪️FCI to construct 111.125 LMT modern steel silos at 249 locations in 12 states
▪️Government to allow MSMEs to avail non-tax benefits for 3 years post re-classification
▪️High-risk foods to enter India only from 61 ports managed by FSSAI
▪️JSP signs MoU with Greenko for 1000 MW carbon-free energy
▪️Sugarcane production in India shifting from South to North: NSO report
▪️Irdai tells insurers to cover mental illness by month-end
▪️INOX Leisure loss halves as box office income picks up
▪️Mahindra & Mahindra partners with Indian start-up Statiq to make EV adoption accessible and affordable
▪️Blinkit launches its first 'silent store' in Delhi
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The Supreme Court, in the batch of appeals pertaining to educational institutions, overrules Division Bench rulings in Queen’s Education Society v CIT (2015) 8 SCC 47 (SC). and American Hotel and Lodging Association v Central Board of Direct Taxes, (2008) 10 SCC 509 (SC) on the interpretation of the word ‘solely’ occurring in Section 10(23C) where 'predominant object' test laid down by the Constitution Bench ruling in Addl. CIT v Surat Art Silk Cloth Manufacturers’ Association, (1980) 2 SCC 31 (SC) was followed;

Supreme Court holds that the education institutions shall 'solely’ engage in education or educational activities, and not engage in any activity of profit, means that such institutions ‘cannot’ have objects which are unrelated to education;

SC dismisses Assessees’ appeals against denial of registration under Section 10(23C) by Andhra Pradesh High Court and holds that their claim for approval or registration will have to be considered in the light of subsequent events, if any, disclosed in fresh applications made in that regard;

Supreme Court opines that since the present judgment has departed from the previous rulings regarding the meaning of the term ‘solely’, in order to avoid disruption, and to give time to make appropriate changes and adjustments, it would be in the larger interests of society that the present judgment operates prospectively;

Supreme Court lays down the following principles for the purpose of educational institution's registration under Section 10(23C):

The requirement of the charitable institution, society or trust etc., to ‘solely’ engage itself in education or educational activities, and not engage in any activity of profit, means that such institutions ‘cannot’ have objects which are unrelated to education,

Where the objective of the institution appears to be profit-oriented, such institutions would not be entitled to approval under Section 10(23C) whereas the surplus accrued in a given year or set of years per se, is not a bar, provided such surplus is generated in the course of providing education or educational activities,

Seventh provision to Section 10(23C), as well as Section 11(4A) refer to profits which may be ‘incidentally’ generated or earned by the charitable institution, thus, applicable only to those institutions which impart education or are engaged in activities connected to education.

‘Business’ and ‘Profits’ in the seventh proviso to Section 10(23C) and Section 11(4A) merely means that the profits of business which is ‘incidental’ to educational activity i.e., relating to education such as sale of textbooks, providing school bus facilities, hostel facilities, etc.

While considering applications for approval under Section 10(23C), the Revenue is not bound to examine only the objects of the institution but to ascertain the genuineness of the institution and the manner of its functioning, is free to call for the audited accounts or other such documents for recording satisfaction where the society, trust or institution genuinely seeks to achieve the objects which it professes,

Wherever registration of trust or charities is obligatory under state or local laws, the concerned trust, society, other institution etc. seeking approval under Section 10(23C) should also comply with provisions of such state laws which would enable the Revenue to ascertain the genuineness of the trust, society etc.,

This reasoning is reinforced by the recent insertion of another proviso of Section 10(23C) with effect from 01.04.2021; Supreme Court observes that the Constitution reflects a value which equates education with charity which is to be treated as neither business, trade, nor commerce, by relying on Supreme Court ruling in T.M.A Pai Foundation, thus, observes,

“The interpretation of education being the ‘sole’ object of every trust or organization which seeks to propagate it, through this decision, accords with the constitutional understanding and, what is more, maintains its pristine and unsullied nature. – [New Noble Educational Society v. Chief Commissioner of Income Tax [TS-809-SC-2022] – Date of Judgement : 19.10.2022 (SC)]

Failure to issue a Show Cause Notice /Draft Assessment Order (SCN/DAO) under section 144B, before passing a faceless assessment order, is only a procedural irregularity. [P. T. Lee Chengalvaraya Naicker Trust v. ITO (2022) 143 taxmann.com 252 (Mad.)]

Digital Transformation & Reengineering Committee of ICAI is proud to launch the Version 2.0 of ICAI Mobile App ICAI Now with a Contemporary Look & Feel & in Sync with the Latest Technology Trends. Download Android Version https://play.google.com/store/apps/details?id=com.app.icai

Ministry of MSME vide S.O. 4926 (E) dated 18.10.2022 has notified that in case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change.
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ADJUSTMENTS with RIGHT PEOPLE are always better than ARGUMENTS with WRONG PEOPLE. A MEANINGFUL SILENCE is always better than MEANINGLESS WORDS. PATIENCE is the key to SUCCESS.

The Supreme Court held that a general public utility (GPU) cannot engage in any trade or commercial activity if it wants to claim income tax exemptions available to organisations doing charitable work. However, statutory corporations, boards, authorities, commissions, etc, in the housing development, town planning, industrial development sectors with objects of GPU are entitled to be considered as charities. 

Anonymous donations received by a wholly religious trust registered under section 12AA can't be treated as unexplained cash credit under section 68 in view of exemption from tax under section 115BBC(2). [DCIT(C) viJayananad Religious Trust (2022) 143 taxmann.com 281 (ITAT Mumbai)]

Delhi ITAT allows Assessee’s appeal, holds that income from providing online auction services to its wholly owned subsidiary in India from its Global Market Operations Centres located outside India, cannot be taxed as royalty under Article 12 of India-USA DTAA; [Ariba Inc v. DDIT [TS-819-ITAT-2022(DEL)] – Date of Judgement : 17.10.2022 (ITAT Delhi)]

Global IT hardware players like HP, Lenovo, Apple, ASUS, Acer and others have sounded the government to defer the implementation of the revised production-linked incentive (PLI) scheme for the sector by a year. They have also urged the government to extend the tenure of the scheme by a year to six years. The government plans to implement the revised hardware PLI from April 1, 2023. 

Russia's Gazprombank opened a special rupee account with state-owned UCO Bank, paving the way for bilateral trades between Moscow and New Delhi. The move would help increase imports of cheaper oil from Russia. Earlier, the Reserve Bank of India (RBI) came out with a bespoke special rupee account for bilateral trades between rupee and any other currencies besides the US dollar.

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Use of designation "Chartered Accountant" or prefix "CA" by members while expressing views on professional/non-professional matters publicly including on social media - (22-10-2022)

https://www.icai.org/post/use-of-designation-chartered-accountant-or-prefix-ca-by-members
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πŸ“² Download my official Android app "Updates by CARJ" πŸ“š to stay connected with latest news and updates πŸ“


Thanks for reading

Saturday, 17 September 2022

11 September 2022 Updates

Supreme Court dismisses SLP of assessee challenging Section 148A(d) order. Case Name : Anshul Jain s PCIT (Supreme Court)

Bombay High Court directs the Govt to open a portal for 2 Months to allow TRAN-1 & TRAN-2 filing. Case Name : Colgate Palmolive (I) Limited Vs Union Of India & Ors. (Bombay High Court)

The Supreme Court has held that an insolvency resolution plan, approved by the financial creditors, by ignoring the statutory demands payable to state governments or other legal authorities, is liable to be rejected. The apex court said that lenders cannot secure their own dues at the cost of statutory dues owed to a government authority.

SEBI is considering a proposal to allow private equity funds to own local asset management companies (AMCs), a move that will boost competition and mergers and acquisition activity in the space. The regulator is also examining whether to allow loss-making sponsors to invest in mutual fund businesses provided they fulfil the fit-and-proper criteria.

Foreign banks and rating agencies are increasingly growing bullish on India's growth potential and as a key investment destination, while the global economy keeps brooding over deep pains brought about by the biggest economies be it in the form of frontloading of Federal Reserve rate hikes or China's worsening construction bubble.

The Union Cabinet approved an MoU signed between Ministries of Education in India and UAE on cooperation in the field of education. The objective of the MoU is to further strengthen our educational collaboration between India and UAE and widen the scope of engagements.
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CBDT declares direct tax collection and refund figures for current Financial year upto 08.09.2022; Direct Tax collections stand at Rs.6.48 Lac Cr. which is 35.46% higher than the gross collections for the corresponding period of last year. 

Calcutta High Court in this short judgement quashed the notice u/s 148 and order u/s 148A(d) in view of the proceedings being beyond the limitation prescribed under the new law where it is only when the amount involved is more than Rs 50 lacs that notice u/s 148 can be issued beyond three years .

CBIC has issued guidelines to file the revised TRAN-1/ TRAN-2 form in compliance with the order of the Hon'ble Apex Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd. The major takeaways from the Circular are as follows:

The applicant filing or revising the TRAN-1/ TRAN-2 shall also upload Annexure-A along with that form.

In respect of C/ F/ H/ I forms received after 27.12.2017, the transitional credit of the same cannot be claimed in table 5(b) or 5(c) of TRAN-1.

The Form once submitted cannot be revised. Therefore, utmost care should be taken before hitting the submit button.

In case of an already filed form and the credit has been disputed by the Department, the appropriate remedy is to file the appeal or pursue the alternate remedies available in law. In such cases, the taxpayer is not allowed to file the revised form GST TRAN-1/ TRAN-2.

The declaration submitted by the applicant will be verified by the proper officer and the applicant shall keep ready all the documents/ invoices on the basis of which credit has been claimed.

No order will be passed by the jurisdictional authority before giving an opportunity of a personal hearing. 

MCA carried out searches on 300 entities having chinese nationals on board after its preliminary found them to be engaged in dubious activities the searches were carried out at various location including in Delhi Hyderabad and Bengaluru after the MCA’s probe found that many of these were shell entities formed forging credentials and subsequently had chinese nationals on board who controlled the affairs of  the companies.

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πŸ‘‰Withdrawal functionality of 15CB forms at e-filing portal - (10-09-2022)

https://www.icai.org/post/udin-withdrawal-functionality-of-15cb-forms

πŸ‘‰Module wise new functionalities deployed on the GST Portal for taxpayers (12-09-2022) 

https://www.gst.gov.in/newsandupdates/read/555

πŸ‘‰CBIC issued Customs procedure for export of cargo in closed containers from ICDs to Bangladesh using Inland Waterways

https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2022/circular-No-17-2022-cgst.pdf

πŸ‘‰E-Way bill for Gold has been provisioned in e-Waybill system.
As per the notification issued by their respective states,taxpayers may generate e-Waybill for Gold (comprising items belonging to HSN Chapter 71 only) for intrastate & interstate transactions.

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Mumbai ITAT dismisses Revenue’s appeal, upholds deletion of addition under Section 68 on account of unexplained cash credits of share premium; Holds that question of huge premium charged by the Assessee cannot be challenged without any bar in the legislated law; Also holds that provision of Section 68 cannot be invoked where share subscription transaction are channeled through bank and wherein the identity and creditworthiness is established; [ITO v. Sejima Texyarn (P) Ltd. 

CBIC has issued a set of guidelines for businesses to claim credit for the taxes paid in the pre-GST era, which will be processed from 1 October. An official order from CBIC said taxpayers can file fresh forms or revised earlier forms for the GST transitional credit on the common portal. 

SEBI is taking a close look at how private equity houses (PE) and venture capital funds (VCF) value the startups and unicorns they bankroll. A propped-up valuation gives a rosy picture of the portfolio to a fund's investors and paves the way for the fund manager to attract more money from new as well as old investors when it goes for the next round of fund-raising.

Ease of Doing Business for MSMEs: Micro, Small and Medium Enterprise (MSME) sector has emerged as a substantial sector of the Indian economy, contributing immensely to employment generation, innovation, exports, and inclusive growth of the economy.

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CBDT today issued another circular No 18 dated 13th September , 2022 to further clarify issues arising on deduction of tax at source under newly inserted section 194-R in respect of benefits or perquisites provided to residents in cash or in kind in the course of business or profession.  Now bank and financial Institutions need not deduct tax at source in respect of benefits provided to its borrowers by waiver of loan or advance by way of one time settlement. Similarly a company in which public is substantially interested need not deduct tax at source while issuing bonus or right shares . The implication of this clarification will be that a company in which a public is not substantially interested will be required to deduct tax at source while issuing bonus/ right shares despite such receipt of bonus / right shares being not taxable in the hands of the shareholders. The reasoning given in this circular for exempting a company in which public is substantially interested from deduction of tax at source while issuing bonus / right shares equally applies to a private company in which public is not substantially interested .
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CBDT has clarified that one-time loan settlement with borrowers or waiver of loan granted on reaching settlement with the borrowers by the following would not be subjected to tax deduction at source under section 194R of the Act.

CBDT issues Circular No. 18 dt 13/09/2022 containing additional guidelines to remove difficulties wrt Section 194R, which came into effect from 1st July, 2022. This Circular is in continuation of Circular No. 12 issued earlier on 16/06/2022.

One-time loan settlement with borrowers or waiver of loan granted on reaching settlement with the borrowers by the following would not be subjected to tax deduction at source

Amount incurred by such "pure agent" for which he is reimbursed by the recipient would not be treated as benefit/perquisite for the purpose of section 194R of the Act.

If out of pocket expense is already included as part of professional fee, then there IS no further benefit/perquisite which requires tax deduction

If benefit/perquisite is provided in a group activity in a manner that it is difficult to match such benefit/perquisite to each participant using a reasonable allocation key, the benefit/perquisite provider may at his option not claim the expense, representing such benefit/perquisite, as deductible expenditure for calculating his total income. If he decides to opt so, he will not be required to deduct tax under section 194R.

Dealers can get depreciation benefit on the gifted car when tds has already been deducted u/s 194R

Section 194R is not applicable on benefit/perquisite provided by, an organization in scope of The United Nations (Privileges and Immunity Act) 1947, an international organization whose income is exempt under specific Act of Parliament (such as the Asian Development Bank Act 1966), an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign state.

Section 194R of the Act is not required to be deducted on issuance of bonus or right shares by a company in which the public are substantially interested as defined in clause (18) of section 2 of the Act, where bonus shares are issued to all shareholders by such a company or right shares are offered to all shareholders by such a company.

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Opportunity of being heard is one of the most important aspects of Procedure. Many a times this is ignored by the Department Officers. Justice demands real opportunity of being hear should be provided.

Cancellation of Registration, be it Provisional or Regular, cannot be done without first granting an Opportunity of being heard to the person. - Gujarat High Court
Mohammed Abbas vs State of Gujarat
(2014) 71 VST 167

Principles of Natural Justice are also mandatory to be followed in GST Laws.
Therefore, Notice for Personal Hearing is must before cancellation of GST Registration.

Registration cannot be cancelled on the Statement of the Third Party without providing opportunity of being heard* - Punjab and Haryana High Court
Anupam Agencies vs State of Punjab
(1995) 98 STC 338 (P&H HC)
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✅Penalty levied by the ROC, Ahmedabad for not mentioning the DIN of directors in the financial statements. This is a violation of Section 158 of Companies Act, 2013. Total penalty of ₹6,00,000/- on the company and the directors.

Everybody who is preparing Financial Statements for their company clients pls keep it in mind to mention DIN.

✅ Guidelines for launching of prosecution under the CGST Act, 2017.
Section 132 of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017) codifies the offences under the Act which warrant institution of criminal proceedings and prosecution. CBIC has released guidelines for launching prosecution.

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CBDT said that OTS or loan waiver by a bank will not be treated as a benefit or a perquisite and not face Tax Deducted at Source as they would have to bear the additional cost of tax deduction besides the haircut. The exemption will be available to all public financial institutions, scheduled banks, cooperative banks, rural development banks, state financial corporations, and state industrial investment corporations.

Karnataka High Court admits Revenue’s appeal against ITAT ruling in Infosys BPM where ITAT allowed the grant of foreign tax credit against income eligible for Section 10AA exemption, by following Karnataka High Court ruling in Wipro Ltd. v. DCIT (2016) 382 ITR 179 (Karn.);

SLP admitted by the Supreme Court against Madras High Court's decision in Karti P. Chidambaram v. Deputy Director of Income Tax (Investigation), Chennai (2021) 431 ITR 261 : (2020) 122 taxmann.com 146 (Mad.) 

The Central Board of Indirect Taxes and Customs has issued a Circular No.180/12/2022-GST dated September 9, 2022 regarding Guidelines for filing/revising TRAN-1/TRAN-2.

Finance Minister Nirmala Sitharaman underscored the significance of micro, small and medium enterprises (MSMEs) in order to assess how India can benefit from its vast labour force.

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MCA Amendment in definition of Small Company, Section 2(85) of the Companies Act, 2013

With effect from today i.e. 15th September, 2022, MCA has amended the Companies (Specification of definition details) Rules amending the definition of _Small Company_,  the limit of Paid up Capital and Turnover for the small company has been increased to Rupees Four Crores (Earlier 2 Crs.)  and Rupees Forty Crores (Earlier 20 Crs.) respectively.

Notification Link: https://www.mca.gov.in/bin/dms/getdocument?mds=tiMs9IFJ8xuPm%252B%252Foxc6fUw%253D%253D&type=open

Nevertheless to mention, as the Amendment is effective from today i.e. 15th September, 2022, the earlier threshold limit of Rupees Two Crores and Twenty Crores for Paid Up Share Capital and Turnover respectively for the purpose of Preparation of Cash Flow Statement and Reporting under CARO, 2020 for the financial year ended 31st March, 2022
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✅Keeping in view the problems faced by majority employers in depositing ESI Contributions, the Department has *relaxed the deadline for deposition of ESI Dues for the wage month of AUG-2022*.

Due date: ~15-09-2022~
Extended: 22-09-2022
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MCA Alert

✅ Amendment in definition of SMALL Company

MCA amended the Companies (Specification of definition details) Rules amending the definition of small company w.e.f. 15.09.2022 the limit of paid up capital and turnover for the small company has been increased to rupees four crore (Earlier 2 Crs.)  and rupees forty crore (Earlier 20 Crs.) respectively.

New limit:

Paid up Capital – Rs. 4 Crs.
Turnover – Rs. 40 Crs. 

Link: https://www.mca.gov.in/bin/dms/getdocument?mds=tiMs9IFJ8xuPm%252B%252Foxc6fUw%253D%253D&type=open

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CBDT has amended Rule 121A and Form 52A. Form 52A shall be filed electronically within 60 days from the end of the previous year. The Govt. has widened the scope of section 285B to include persons engaged in ‘specified activities i.e. event management, documentary production, etc. To incorporate this change in the existing Rule & Form. 

CBDT issued Circular no 18 dated 13.9.22 clarifying issues on section 194R : 

One-time loan settlement with borrowers or waiver of loan granted on reaching settlement with the borrowers by the following would not be subjected to tax deduction at source

Amount incurred by such "pure agent" for which he is reimbursed by the recipient would not be treated as benefit/perquisite for the purpose of section 194R of the Act.

If out of pocket expense is already included as part of professional fee, then there IS no further benefit/perquisite which requires tax deduction

If benefit/perquisite is provided in a group activity in a manner that it is difficult to match such benefit/perquisite to each participant using a reasonable allocation key, the benefit/perquisite provider may at his option not claim the expense, representing such benefit/perquisite, as deductible expenditure for calculating his total income. If he decides to opt so, he will not be required to deduct tax under section 194R. 

Dealer can get depreciation benefit on the gifted car when tds has already been deducted u/s 194R

Section 194R is not applicable on benefit/perquisite provided by, an organization in scope of The United Nations (Privileges and Immunity Act) 1947, an international organization whose income is exempt under specific Act of Parliament (such as the Asian Development Bank Act 1966), an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign state.

Section 194R of the Act is not required to be deducted on issuance of bonus or right shares by a company in which the public are substantially interested as defined in clause (18) of section 2 of the Act, where bonus shares are issued to all shareholders by such a company or right shares are offered to all shareholders by such a company. 

Revenue collection from GST has been trending at over Rs 1.4 lakh crore in the past six months consecutively but has not crossed the Rs 1.5-lakh-crore-mark yet on a consistent basis.

MCA Amendment With effect from 15th September, 2022, MCA has amended the Companies (Specification of definition details) Rules amending the definition of Small Company  the limit of Paid up Capital and Turnover for the small company has been increased to Rupees Four Crores (Earlier 2 Crs.)  and Rupees Forty Crores (Earlier 20 Crs.) respectively.

ICAI is privileged and delighted to host the 21st World Congress of Accountants 2022 - the Olympics of Accountants being held for the first time in India from 18th–21st November 2022 in Mumbai, India. The event is expected to be attended by more than 6000 delegates in physical mode and about 10000 delegates virtually from across the globe.

The upcoming World Congress would dwell upon the theme, Building Trust, Enabling Sustainability keeping in mind the important role the accountancy profession plays in protecting public interest and also ensuring sustainable economies for the future.

Kindly visit our website WCOA 2022 https://www.wcoa2022mumbai.org/  for registration. The details of the registration are mentioned on the registration form with fees applicable.Registration URL - https://www.wcoa2022mumbai.org/register

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Delhi High Court dismisses the writ petition challenging reassessment proceedings under the new regime for AY 2013-14 where the original notice was issued under the old regime on 29.06.2021 and pursuant to Supreme Court ruling in Union of India and others v. Ashish Agarwal decided on 4.5.2022 and reported in 2022 SCC OnLine SC 543, notice under the new regime was issued on 20.07.2022. 

Government may finally increase interest rates on small savings schemes such as Public Provident Fund (PPF), Sukanya Samriddhi Savings Scheme, Senior Citizen Savings Scheme (SCSS), and National Savings Scheme (NCS) in the forthcoming rate review on September 30.

Insolvency and Bankruptcy Board of India (IBBI) has prescribed minimum fee slabs for resolution professionals representing bankrupt firms from October 1 onwards so that such professionals are adequately compensated.

SIDBI, the principal financial institution engaged in the promotion, financing and development of MSMEs, has brought out profiles of 16 states with respect to their enterprise/industrial policies and good practices adopted to promote MSMEs through Project Management Units (PMUs) set up by the bank.

Made in India semiconductors could drastically reduce the prices of finished products, Vedanta Chairman Anil Agarwal said. Today, a laptop costs Rs 1 lakh, and once the glass as well as the semiconductor chip are available, the same can be priced at Rs 40,000 or less. The glass that is currently being produced in Taiwan and Korea will very soon be manufactured in India too.
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GST Updates

1. CBIC develops system for online monitoring of GST audits: CBIC held a meeting of commissionerates across the country in charge of audits earlier this month and a web-based tool for monitoring the progress of audits end-to-end has been developed along with a dashboard.

2. GST collection may top Rs 1.5 lakh cr from Oct: Revenue secretary.

3. Gadkari pitches lower GST, offers for scrapping old cars.

4. Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates
Uttar Pradesh manufacturers to cease production for a year; Coal rates doubled from last year, GST goes up to 12% from 5%.

5. Supply Of Services For Printing On Duplex Board Attracts 12% GST: WBAAR.

6. Tata Play ordered to pay ₹450 crore for alleged GST related profiteering.

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Aided by data from multiple sources and data analytics, the income tax department has started scrutinising newer areas such as asset reconstruction companies, gaming and betting to plug tax evasion. 

Punjab & Haryana High Court has issued notice issued under section 148 for asstt year 2013-14 and also stayed further proceedings, being barred by limitation and the Instruction No 1/2022 issued by CBDT being misleading in view of provision of section 149(1) and Supreme Court judgement in the case of Ashish Aggarwal .  

The Supreme Court granted open court hearing in the review petition filed by Congress lawmaker Karti Chidambaram challenging the top court's July 27 verdict upholding the validity of the Prevention of Money Laundering Act (PMLA) [Karti P Chidambaram v. The Directorate of Enforcement].

The Competition (Amendment) Bill, 2022 was introduced in Lok Sabha on August 5, 2022.   It seeks to amend the Competition Act, 2002.  The Act establishes the Competition Commission of India (CCI) for regulating market competition.  

Slump sale under IBC cannot be converted into the sale as a going concern – Jindal Power Ltd. Vs. Dushyant C. Dave Liquidator- Shirpur Power Pvt. Ltd. – NCLT Ahmedabad Bench. 

Sec. 10A of IBC - NO IBC proceedings can be initiated against the Corporate Debtor for the default which has occurred between the period from 25/03/2020 till 24/03/2021 – Sanyog Healthcare Ltd. Vs. Bison Biotec Pvt. Ltd. – NCLT New Delhi Bench Court-IV. 

Indian Bank Invites applications from Chartered Accountants and Cost Accountants for Empanelment of Concurrent Audit and Stock Audit of the Bank.

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Government may consider allowing some basic deductions and make the slabs more graded to make it more attractive to taxpayers under different brackets, analysts say. However, the dual regime tax regime may continue for another 2-3 years until the new regime finds acceptability through a mix of deductions and lower tax rates.

Karnataka High Court allows Assessees’ writ petitions challenging the post-search assessments under Section 153C where the Assessees were the ‘searched person’ and assessment was based on loose sheets and diary entries; [Sunil Kumar Sharma v. DCIT – Date of Judgement 12.08.2022 (Karn.)]

The GST Council, in its next meeting, is expected to take up a proposal to implement the Supreme Court ruling regarding IGST (Integrated Goods & Service Tax) on ocean freight. 

Notice u/s 148A(b) - ITR and GST Data did not reconcile.  The show cause notice primarily states that “it is seen that the Assessee has made purchases from certain non-filers”. However no details or any information of these entities was provided to the Assessee. It is not understood as to how the Assessee was to know which of the entities it dealt with were filers or non-filers. BEST BUILDWELL PRIVATE LIMITED  Vs. INCOME TAX OFFICER , 01/08/2022 , (Delhi High Court) (Favour of Assessee)

Empanelment of Members to act as Observers at The Examination Centres for The Chartered Accountants Examinations - November 2022. Online Application Link: http://observers.icaiexam.icai.org. Last Date: 15- Sep-2022 Link to Announcement:https://resource.cdn.icai.org/71268exam57307.pdf

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Opening of TRAN-1

1. Bombay High Court in the case of Siemens Ltd., Cummins India Limited and Procter & Gamble Health Limited V/s Union of India.

2. Issues Involved :- The present batch of Petitions has been filed in relation to the procedural difficulties / objections raised with regard to distribution and/or utilisation and/or eligibility of Input Service Distributor (ISD) credit of Service Tax/excise duty under Section 140 of the CGST Act 2017.

3. The court observed that Hon’ble Apex Court in order dated 22nd July, 2022 has directed the GST Network to open the common portal to file/rectify TRAN-1 and TRAN-2 for a period of two months, i.e., with effect from 1st September, 2022 to 31st October, 2022 to enable the different private parties to avail Transitional Credit.

4. GSTN has to ensure that there are no technical glitch during the said time.

5. The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned.

6. Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.

7. If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims.

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Peace of mind is a beautiful gift, which only we can give to ourselves just by expecting nothing from anyone.

CBDT has asked the taxpayers to file ITR-U if they have won money in online games in FY 2019-20 and Fy 2020-21. If the income tax department later traces such income, such taxpayers will face consequences of a penalty and other legal actions under income tax laws .

The Central Board of Direct Taxes (CBDT) has notified the new Form 29D for refund of tax deducted. The Board has notified the Income-tax (26th Amendment) Rules, 2022. The amendment added a new Rule 40G to the Income-tax Rules of 1962 relating to Refund Claim under Section 239A.

In the Income-tax Act, a new section 239A was added by the Finance Act of 2022. Section 239A states that if no tax deduction was required, a taxpayer may apply to the Assessing Officer for a refund of tax deducted under Section 195 on any income (except interest).

As per Rule 40G, a claim for refund under section 239A shall be made on Form No. 29D. The claim shall be accompanied by a copy of the agreement or other arrangement referred to in section 239A. The claim may be presented by the claimant himself or through a duly authorised agent.

Effective from September 01, 2022, the listed entities shall mandatory file announcements under various SEBI Regulations using digital signature certification (DSC) to the Stock Exchanges except certain disclosures/events like financial result, Newspaper advertisement, Auditors certificate, NCLT / other court’s order, Credit Rating, etc. NSE - Circular Ref No: NSE/CML/2022/39 Date: August 02, 2022.

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Central Board of Direct Taxes Chairman Nitin Gupta has revealed that the body undertook enforcement actions and search and seizure operations on 33 percent more groups till July 31, this year than last. And this has led to more cash seizures as well — to be precise a 525 percent jump.

Session from samvad on "Updated Return (lTR-U) u/s 139 (8A) of Income-tax Act. with Sh Kamlesh Chandra Varshney IS fTPLl-I, CBDT on 01-09-2022 at 11;00 AM. Details of Section 139(8A) of the Income Tax Act 1961.

The Finance Bill 2022 has inserted a new section, Section 139(8A) in Income Tax Act. This new section provides for facilitating filing of ‘Updated Return’ by the taxpayers. This section has effect from 1st April 2022. A taxpayer can file an updated return within two years from the end of the relevant Assessment Year. Thus, a taxpayer can now file an updated return for the period from AY 2020-21. 

Updated returns can be filed irrespective of the fact whether the original return was filed by the taxpayer or not. However, to file an updated return, the taxpayer has to meet the below-mentioned conditions: 

The updated return can be filed only if the taxpayer has to disclose any additional income, which was missed / omitted earlier, and pay the additional tax thereon. Updated returns cannot be filed to reduce any income and report loss or increase the loss thereby resulting in reduction of tax liability or increase in tax refund. 

The option of updated return can be opted only once for one assessment year. If the updated return is being filed within 12 months from the end of the relevant assessment year, then an additional income tax of 25% and interest thereon shall be payable.  

If the updated return is being filed within the period of 13 months to 24 months from the end of the relevant assessment year, then an additional income tax of 50% and interest thereon shall be payable. 6. While filing an updated return, the proof of payment of additional income tax & interest thereon shall have to be submitted by the taxpayer. 

A taxpayer cannot file an updated return in case of search & seizure or case where any prosecution proceedings have been initiated against the taxpayer. 

Although the additional income tax along with the interest thereon constitutes in higher tax liabilities and appears as a burden on a taxpayer, this facility of filing an updated return can also be viewed as an opportunity to disclose the earlier missed income and save oneself from any legal proceedings and prosecutions. 

If the Assessing Officer believes that the assessee has escaped any income to be reported in Income Tax Return or has under-reported the income, such Officer has a power to assess or re-assess such income. 

In case of under-reporting of income, a penalty as high as 50% of the tax payable could be levied & for misreporting of income could lead to a levy penalty as high as 200% of the tax payable on the misreported income. Thus, the provision of filing an Updated Return should act like an opportunity window to save oneself from paying an extra amount in the form of a penalty.

The last date of filling the CA exam form is now 7th Sept and with late fees it’s 10th Sept.

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1. GST collection in August was ₹1.43 lakh crore, 28% YoY increase.

2. Punjab registers 23 pc growth in GST revenue in first five months of FY23.

3. GST on Train Ticket Cancellation Applicable to AC Class Only: Railway Clarifies.

4. As much as Rs 50 lakh would be earned from processing 30,000 tonnes of Supertech demolition waste but it will be liable for a GST amount of at least Rs 2.5 lakh (5 percent).

5. ‘Don’t summon CEOs in first instance’: CBIC’s 10 commandments to GST officials.

6. GSTN: updating reporting of Table-4 "Eligible ITC in GSTR-3B is live on portal".
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CBDT, vide Notification No. 105/2022 dated 01.09.2022, amends Rule 114BB by inserting a proviso to exclude Central Government, State Governments and Consular Offices from the requirement of quoting PAN or Aadhaar Number for cash deposit(s) in or withdrawal(s) from a bank or a post office aggregating to Rs. 20 Lac or more in a financial year. 

Centre's direct tax collection as on August 30 stood at Rs 4.8 trillion, which is 33 per cent more than the Rs 3.6 trillion collected in the same period last year. 

Supreme Court dismissed Revenue’s SLP against Karnataka High Court ruling that upheld Single Judge’s order condoning the delay in filing of ITR by quashing CBDT’s order rejecting Assessee’s application for condonation of delay. CBDT v. Vasudev Adigas Fast Food (P) Ltd.

Central Board of Indirect Taxes and Customs (CBIC) said the existing concessional import duties on specified edible oils will be extended up to March 31, 2023.

ICAI requests its Members to remit Annual Membership/Certificate of Practice fees for the year 2022-2023, which became due for payment on 1st April, 2022 and needs to be paid on or before 30th September, 2022.  

SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) also apply to AIFs in International Financial Services Centers (IFSC) The post Alternate Investment Fund In Gift City.

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CBDT relaxes quoting of PAN-Aadhaar No. in certain transactions vide Notification No. 105/2022 -Income Tax | Dated: 1st September, 2022.

The Income Tax Department has said that it has issued refunds worth over Rs 1.14 lakh crore to more than 1.97 crore taxpayers in the first five months of this fiscal year that started April 1, 2022.

Supreme Court schedules hearing on 20.09.2022 whether section 153A mandates the existence of incriminating material in respect of the assessments that have concluded/are not pending on the date of search in order to assess or reassess them. 

The Supreme Court gave the finance ministry further extension of 30 days for opening of the GST common portal. It also directed the GSTN to open the portal for 60 days from October 1 till December 31so as to "give full effect" to its July 22 order that had allowed taxpayers to claim accumulated ITC accrued in the pre-GST indirect tax regime in 60 days ending October 31.

CBIC issued Circular No. 178/10/2022-GST 03rd of August, 2022 discussing taxability of few transactions in greater detail, the impact of which needs to be taken into consideration. 

GST on Cheque dishonour fine/ penalty / Charges, GST on Forfeiture of salary or payment of bond amount in the event of the employee leaving the employment before the minimum agreed period, GST on Late payment surcharge or fee and GST on payment cancellation fee or retention or forfeiture of the consideration or security deposit.

GST officers can now launch prosecution against offenders in cases where the amount of evasion or misuse of the input tax credit is more than Rs 5 crore. However, this monetary threshold will not be applicable in the case of habitual evaders or in cases where arrests have been made at the time of investigation.
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If you pay your income tax via the new income tax portal website, then be aware that you will be liable to pay for convenience charges and GST for using certain payment methods.

Bad Debts write off are not allowed as expenditure. amount  was given by the assessee to the developer for the purpose of purchasing constructed premises on his behalf . Developer did not purchase property as well as did not make a refund of such  amount. PR. COMMISSIONER OF INCOME TAX  Vs.  KHYATI REALTORS PVT. LTD., 25/08/2022 , (Supreme Court) 

Government vide Notification No. 14/2022 - Central Tax dated 05th July, 2022 has notified few changes in Table 4 of Form GSTR-3B for enabling taxpayers to correctly report information regarding ITC availed, ITC reversal and ineligible ITC in Table 4 of GSTR-3B.

Goods cannot be seized from godown by invoking section 129 of CGST Act. Case Name : Mahavir Polyplast Pvt. Ltd. Vs State of U.P. (Allahabad High Court)

The Supreme Court while hearing an application from GSTN, has allowed extension of 4 weeks time to comply with their order dated 22/07/2022 issued in the matter of UOI & Anr. V/s Filco Trade Centre Pvt. Ltd. & Anr. bearing SLP (C) nos. 32709-32710/2018. Accordingly, GSTN would open the common portal for filing transitional credit through Tran 1 and Tran 2 w.e.f 01/10/2022.

The Ministry of Finance had issued a Press release dated September 01, 2022 regarding ₹ 1,43,612 crore gross GST revenue collected in the month of August 2022.

Since GST was introduced, renting residential dwellings for residing was exempt. In a significant development, the government withdrew the GST exemption on such rentals where the lessee is registered under GST laws. Moreover, effective 18 July 2022, tax on such rentals is required to be paid by the lessee/tenant who receives the service on a 'reverse charge' basis.

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CBDT, vide Notification No. 106/2022 notifies that Commissioner of Income-tax (Appeals) Units across the country shall be subordinate to the jurisdictional Chief Commissioner of Income-tax; Also notifies that Chief Commissioners of Income-tax shall be subordinate to the respective Principal Chief Commissioner of Income-tax; The notification comes into effect from date of its publication i.e., September 2, 2022. 

Important changes in GSTR 3B to hit on portal from 01-09-2022.

ITC in GST 2B for a tax period not claimable due to receipt of goods in next period or goods not received at all or because supplier has failed to pay tax: 

To be claimed first in Table 4A(5) of GSTR 3B

To be reversed in Table 4B(2) of GSTR 3B

To be claimed again in Table 4A(5) in tax period in which goods are received or tax period  in which supplier makes payment of tax 

To be shown in Table 4D(1) in the tax period in which ITC is re-claimed. 

Reversal of ITC wrongly availed in previous tax periods because of inadvertent mistake may be done in 4B(2)

Ineligible ITC u/s 17(5) to be first claimed in 4A(5) and then reversed in 4B(1). Ineligible ITC u/s 17(5) shall no longer be reflected in table 4D as was being done in old format of GSTR 3B

ITC ineligible due to place of supply restrictions  or because of limitation period of claim of itc u/s 16(4) is shown in table 4 of GSTR 3B to be also shown in Table 4D(2) of GSTR 3B. This information shall not be entered in Table  4A or 4B of GSTR 3B

Reversal of ITC by banking companies u/s 17(4) read with R.38: First full amount of ITC shall be shown in Table 4A and then reversal shall be made in Table 4B(1)

ITC reversed under Rule 42 and 43 because of partial exempt supplies, if reversed by making entry in 4B(1)  in excess may require reclaim in Table 4A(5) because of Rule 42, however no row has been kept in table 4D for reclamation of such ITC. Advisory issued by GSTN says that ITC reversed in 4B(1) is not reclaimable, however Rule 42 perceives the restoration of excess reversal.

Similarly if ITC blocked in 17(5) and reversed in 4B(1) is subsequently found to be eligible*, though may be reclaimed in 4A(5) but there is no row in 4D to reflect such reclaim. Advisory of GSTN says that ITC reversed in 4B(1) is not reclaimable.

Reclaimable reversals for *failure to pay suppliers within 180 days* may be parked in 4B(2). Reclamation at the time of payment through 4A(5) shall be supplemented by disclosure in 4D(1)

Lapse of ITC on opting for composition scheme or when taxable goods become exempt* shall be parked in 4B(2).

Reversal of ITC on inputs and capital goods held in stock on the date of *cancellation of registration* may also be effected through 4B(2)

Supplies of restaurants, hotels, motorcabs etc., housekeeping through e-commerce operators to be shown in table 3.1.1(ii) of GSTR 3B. Earlier Point 11 of Circular 167/23/2021 dated 17-12-2021 had required to reflect such supplies in table 3.1 (c) of GSTR 3B for the time being So, treatment as per Circular 167 was only ad hoc treatment. 
 
Food Safety and Standards Authority (FSSAI) has sent notices to several leading eateries including some five – star hotels for not complying with its latest labelling and display norms which mandate them to mention calories count of dishes on their menus . The restaurants, which fail to comply, will have to shut shop, warned the FSSAI in its notices.

Audit allotment status has been hosted on CAG website for the audit of PSU for the FY 2022-23. Check status at http://www.care.cag.gov.in/policy/EmpStat.aspx.

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πŸ‘¨πŸ»‍πŸŽ“ No money will be accepted on or after 3rd September 2022, if any amount deposited post 3rd Sept, shall be duly refunded to the depositors.

πŸ§‘πŸ»‍πŸŽ“ This may have come as the central government has directed NHAI to keep borrowings to the minimum over the next three years to prevent its debt from reaching unsustainable levels.

πŸ‘¨πŸ»‍πŸŽ“ The 54 EC capital gain bonds are fixed income instruments that help provide investors capital gains tax exemption under section 54EC. Investing in such bonds can reduce tax liability on long-term capital gains from the sale of immovable property. 

πŸ§‘πŸ»‍πŸŽ“ What could be the other reasons in your opinion? Do let us know πŸ€“
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Delhi High Court set-aside Reassessment Order Passed without Considering Reply of Assessee. Case Name : Rithala Education Society Vs Union of India (Delhi High Court)

DGFT extends the last date for uploading of all such e-BRC's, where RoSCTL scripts have been issued for shipping bill up to December 31, 2020, till September 30, 2022. Trade Notice no. 16/2022-23 dated September 06, 2022. 

Japan is planning to bring its small and mid-sized companies and startups to India. The country is looking to invest in new opportunities in non-conventional areas such as processed foods, agro-tech, e-commerce, fresh fruits, retail, healthcare, electronics, space, co-research and R&D. According to the report, the number of Japanese companies in India has been stagnant. 

Supreme Court in its judgment dated 6th September, 2022 while considering as to whether the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC/Code) and, in particular, section 53 thereof, overrides section 48 of the Gujarat Value Added Tax Act 2003 (GVAT Act), held that financial creditors cannot secure their own dues at the cost of statutory ones owed to a government authority in approving a resolution plan to revive a sick company under the Code. 

Advocacy group CUTS welcomed the introduction of a framework for settlement and commitment in the law, improving the leniency framework, introduction of limitation, introduction of deal value threshold for M&A notification, and recognition of hub and spoke cartels etc in the Competition (Amendment) Bill, 2022.
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Supreme Court dismisses SLP of assessee challenging Section 148A(d) order. Case Name : Anshul Jain Vs PCIT (Supreme Court)

Bombay High Court directs the Govt to open a portal for 2 Months to allow TRAN-1 & TRAN-2 filing. Case Name : Colgate Palmolive (I) Limited Vs Union Of India & Ors. (Bombay High Court)

The Supreme Court has held that an insolvency resolution plan, approved by the financial creditors, by ignoring the statutory demands payable to state governments or other legal authorities, is liable to be rejected. The apex court said that lenders cannot secure their own dues at the cost of statutory dues owed to a government authority.

SEBI is considering a proposal to allow private equity funds to own local asset management companies (AMCs), a move that will boost competition and mergers and acquisition activity in the space. The regulator is also examining whether to allow loss-making sponsors to invest in mutual fund businesses provided they fulfil the fit-and-proper criteria.

Foreign banks and rating agencies are increasingly growing bullish on India's growth potential and as a key investment destination, while the global economy keeps brooding over deep pains brought about by the biggest economies be it in the form of frontloading of Federal Reserve rate hikes or China's worsening construction bubble.

The Union Cabinet approved an MoU signed between Ministries of Education in India and UAE on cooperation in the field of education. The objective of the MoU is to further strengthen our educational collaboration between India and UAE and widen the scope of engagements.
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Supreme court dismisses slp against notice u/s 148a(b) & p&h hc order in gian castings. Case name : gian castings private limited vs central board of direct taxes & ors. (supreme court of india)

Guidelines for filing/revising tran-1/tran-2 in terms of order dated 22.07.2022 & 02.09.2022 of hon’ble supreme court in the case of union of india vs. Filco trade centre pvt. Ltd. 

Flavoured milk is not milk; it is in fact a drink that has milk as an ingredient, the appellate authority of advance ruling (aaar) has said. Milk is outside the gamut of goods and services tax but flavoured milk attracts 12% tax. Vadilal, the ice cream major, had approached the apex appellate authority for clarity on the matter.

The company had approached the aaar after an authority for advance ruling (aar) had said that gst should be applicable on flavoured milk. Gujarat aaar affirmed the aar ruling on classification and said that flavoured milk is not milk but a beverage containing milk. The aaar ruled that the flavoured milk is not the natural form of milk but was obtained after application of specific processes on the milk.

Delhi high court, in a significant ruling, held that a complaint against a chartered accountant after seven years of alleged misconduct is liable to be quashed as time-barred as per rule rule 12 of the chartered accountants (procedure of investigations of professional and other misconduct and conduct of cases) rules, 2007. The said rules prescribes a time limit on entertaining complaints or information.

The European central bank raised its key interest rates by an unprecedented 75 basis points on Thursday and signalled further hikes, prioritising the fight against inflation even as the bloc's economy is heading for a likely winter recession.

The Msme ministry won't be extending the validity of the udyog aadhaar memorandum (uam) license for msmes in order to encourage them to register on the new udyam registration portal. Uam was the registration portal in place for businesses to register as msmes before the government launched the udyam portal in july 2020.

SEBI has made amendments vide its notification dated 25th july, 2022 made amendments in sebi (icdr) regulations, 2018, and sebi (lodr) regulations, 2015 due to introduction of social stock exchange.
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