25 January 2022 Updates

Issue of Shares at a Premium by assessee to its non-resident holding company does not give rise to any income from an admitted International transaction and, thus, there is no occasion to apply Chapter X in such a case. After this judgment CBDT also accepted and did not file an appeal to the supreme court. 

Maharashtra AAR: No GST on recovery of amount of separate top-up insurance and parental insurance by employer from employees.

No export under GST if place of supply is within India. Case Name : In re International Inspection Services Private Limited (GST AAR Telangana) Appeal Number : TSAAR Order No. 33/2021.

No GST on cash discount for early payments by dealer, rules M.P. AAR. This ruling is contrary to the verdict of Kerala AAR.

The Ministry of New & Renewable Energy on Friday said households are free to get rooftop solar panels installed by themselves or by any vendor of their choice and a photograph of the installed system for distribution utility is sufficient to avail benefits or subsidy under the government scheme. Earlier under the rooftop solar scheme, the households were required to get that from the listed vendors only to avail the benefits and subsidy under the scheme. 

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All Financial Statements under CA '13 from F.Y. 2021-22 onwards need to be prepared with a lot of additional disclosures like Trade Payable/ receivable aging, Bank Borrowing related, Benami Property disclosure etc in terms of MCA Notification dt. 24/03/2021. Accordingly, ICAI issued the following Guidance Notes (Jan 22 Edition). 

.📌ICAI- Guidance Notes

❗Guidance Note on Division I - Non Ind AS Schedule III to the Companies Act 2013.

_✍️Link to download:_ https://resource.cdn.icai.org/68981clcgc55147-gnd1.pdf

‼️Guidance Note on Division II - Ind AS Schedule III to the Companies Act 2013.

_✍️Link to download:_ https://resource.cdn.icai.org/68982clcgc55147-gnd2.pdf

‼️❗Guidance Note on Division III to Schedule III to the Companies Act 2013 for NBFC that is required to comply with Ind AS.

_✍️Link to download:_ https://resource.cdn.icai.org/68983clcgc55147-gnd3.pdf

All professionals, especially CA’s must go through the above and prepare financial statements accordingly.

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GST Updates

2️⃣ MP AAR- No GST on cash discount for early payments by dealer. (Mahavir Prasad Mohan Lal)

Contrary to Kerala AAR- Santhosh Distributor

3️⃣ Maha AAAR- ITC not available on GST paid on expenses incurred towards promotional schemes goods given as brand reminders.(Sanofi)

4️⃣ SC decided, No GST Evasion on Mere Non-Extension of Validity of E-Way Bill as Traffic blockage due to agitation responsible for not providing smooth passage of Traffic. (Satyam Shivam Papers)

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CBDT has set a record for search operations against 'undisclosed income' in FY22. With two months and a week left until the end of the fiscal year, the total 'undisclosed income' as per publicly available data is about Rs 32,000 crore (Rs 320 billion), far eclipsing the level set in FY19, when it was just under Rs 18,600 crore (Rs 186 billion).

Company to be treated as beneficial owner of  car purchased in the name of its Directors,  eligible for Depreciation held by  THE ITAT AHMEDABAD BENCH 'D' in the case of Income-tax Officer Vs. Anunay Fab (P.) Ltd. 

CBIC has recently enabled the new functionality on the GST portal for the taxpayer to find out contacts details of Tax Officials. This functionality will help to reduce the gap between the Tax Payer and Tax officers. Further, the said functionality shall be effective to use at the time of litigation, grievance, queries or concerns. etc.

Uttarakhand High Court has stayed the operation of a Circular issued by the Revenue Authorities, to the extent it inhibits refund claims for a period of two separate (not successive) financial years and requires filing of Refund in a chronological manner. The Bench has stayed para 8 of the Circular No. 125/44//2019-GST dated 18.11.2019. 

ICAI Convocation 2021-22 - Postponement of Convocation 2021-22 scheduled to be held at New Delhi till further orders.

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23 January 2022 Updates

Bombay High Court has quashed an order by the GST authorities that had rejected the refund claim of an assessee because it was filed after two years, a time limit set by the rules. This was done since the authorities have not taken into cognizance the earlier Supreme Court verdict that excluded the period from March 15, 2020 and October 02, 2021 from the time limit due to Covid. 

Appellate Authority for Advance Ruling (AAAR) says allocation of salary of a head office employee to a branch, and its recovery from there, will be "subject to GST." "Taxation of transactions between head office and branch office has been a contentious issue since inception of GST as the said transactions were not liable to any tax under the erstwhile regime. 

ICAI Draft Bank Branch Auditors’ Panel(MEF) of Chartered Accountants/firms for the year 2021-22 has been hosted at https://meficai.org/ The Draft Panel will be available up to Sunday, 23rd January, 2022. Complaints if any have to be lodged by then. After suitable address all of the queries, the final panel will be sent to RBI for their consideration.

last date for filing/ submission of online application form for Empanelment with O/o C&AG for the year 2022-23 for audit of PSUs is 15th February, 2022. Note that the last date for receipt of documents at O/o C&AG is 28th February, 2022.

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25.1.22 is the last date to file Statement of Financial Transactions (Form 61-A) for Q3 of 2021-22 for Capital gains on listed securities/units. 

Income Tax Reopening of Assessment not permissible to take another view on the same material. Case Law Details Case Name : Vodafone Idea Ltd. Vs ACIT (Bombay High Court) Appeal Number : Writ Petition No. 3560 of 2019 Date of Judgment/Order : 03/01/2022. 

Cryptocurrencies or digital assets issued to employees by crypto exchanges as incentives are set to come under the taxman's lens. The question is whether the coins - most of them issued by Indian exchanges - can be construed as income and what could be the income tax applicable on the digital assets.

No GST on Rent for locker provided in bus stand by Municipal Corporation. Case Law Details Case Name : In re Erode City Municipal Corporation (GST AAAR Tamilnadu) Appeal Number : Advance Ruling No. AAAR/20/2021. 

National Consumer Disputes Redressal Commission (NCDRC) in a recent verdict held that a homebuyer is entitled to compensation for delays up to the point they receive possession of a completed unit. Possession that is offered by a builder over an incomplete unit will have no bearing in arriving at compensation, the consumer court said. 

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CBDT has notified e-advance rulings Scheme, 2022 applicable with effect from 18.01.2022. The Scheme shall be applicable to the applications of advance rulings made to the Board for Advance Ruling or applications of advance rulings transferred to such Board.

The Income-Tax department has moved the Supreme Court challenging an order by the Allahabad High Court quashing income tax notices issued after March 31, 2021, under the old re-assessment regime. This is a setback for multiple taxpayers who had got favourable orders from various high courts on reassessment proceedings initiated by the tax authorities.

Gujarat High Court on January 18, 2022 sought assurance, by way of an affidavit, from the Central Board Of Direct Taxes (CBDT) that they would attend to the problems of the assessees who are unable to file Tax Audit Reports and Income Tax Returns due to the technical glitches in the IT Portal.

SEBI can now use special powers to relax compliance requirements for foreign funds. The capital markets regulator's board has been empowered to give overseas investors leeway in the event of inadvertent lapses while investing in the country.

ICAI Draft Bank Branch Auditors’ Panel(MEF) of Chartered Accountants/firms for the year 2021-22 has been hosted at www.meficai.org The Draft Panel will be available up to Sunday, 23rd January, 2022. Complaints if any have to be lodged by then.  After a suitable addressal of the queries, the final panel will be sent to RBI for their consideration. 

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The Board has issued Instructions/ Circulars relating to recovery of arrears under Central Excise, Service Tax and Customs from time to time. Considering the changes that have taken place, especially after the introduction of GST in July, 2017, it has become imperative to update and revamp the procedure for recovery of arrears of Indirect taxes and Customs. 

The Appellate Authority for Advance Ruling (AAAR) has denied input tax credit under the Goods and Services Tax (GST) framework on leasing of land and property. Most companies and hotels pay GST at 18% on lease rentals and claim credit to reduce their tax outgo.

Delhi High Court asks ICAI to obtain declaration from every member about any criminal case while adjudicating a writ filed by a member asking for quashing show cause notice issued for disciplinary proceedings on account of conviction of the member under section 354 of IPC on account of moral turpitude. The High Court dismissed the petition. Upholds ICAI power to remove names. In fact, the High Court observed that there is no need for any enquiry even in such a case.

Corporate India has renewed its demand that the Securities and Exchange Board of India (SEBI) stay the implementation of the provision that makes it mandatory for the chairman and managing director of a large listed company to not be related to each other. It has asked the capital markets regulator to either make this provision, which is due to come into force from April 1 this year, 'recommendatory' or defer its implementation by another two years.

ICAI next Chartered Accountants Foundation, Intermediate, Final Examinations, and Post Qualification Course Examination i.e. International Taxation – Assessment Test (INTT – AT) is to be held from May 14th to 30th May 2022 at 265 Indian Cities and 6 Overseas.

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ICAI Initiative for CA Members in Practice

The Institute of Chartered Accountants of India has entered into an arrangement with SPEQTA GST to provide GST Software free of Cost to ICAI Members in Practice for a period of 3 Years. 

To know more about Committee for Members in Practice Initiative pls click here

https://cmpbenefits.icai.org/

ICAI Members can use this Software upto 20 GSTIN without any cost. 

Please open below link from Your Laptop or PC to download software

https://icai.speqtalive.com/

Download Software and Activate your Free License in just 1 Minute.

Features of Software

1. GST Return Filing (GSTR-1, IFF, 3B, CMP-08, GSTR 4, 9 & 9C)

2. One Click 9C Json Signing without any manual setting

3. Intelligent Reporting based on Already filed GST Return 

4. GSTR-2A, GSTR-2B & GSTR-1 Reconciliation. 

5. One Click Data Download from GST Portal

6. Offline Software keep the data safe in your PC no threat of clients data compromise.

7. Many more useful features to increase efficiency and Productivity of time.

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18 January 2022 Updates

ITAT Delhi deletes addition on account of Client Code Modifications. Case Name : DCIT Vs Futurz Next Services Ltd. (ITAT Delhi) Appeal Number : ITA No.3556/Del/2016 Date of Judgment/Order : 04.01.2022

CBDT issues refunds of over Rs 1,54,302 crore to more than 1.59 crore taxpayers from 1st Apr 2021 to 10th January 2022,” the I-T department tweeted. This includes personal income tax refunds of Rs 53,689 crore to over 1.56 crore entities and corporate tax refunds of over Rs 1 lakh crore to more than 2.21 lakh businesses.

Insolvency and Bankruptcy Code (IBC) could soon see some strengthening, including a cross-border insolvency framework and measures to speed up resolution of cases, with the matter set to be taken up in the upcoming budget session of parliament, government insiders said.

The Supreme Court has said the award can be set aside under the Arbitration Act, if it is found to be contrary to the fundamental policy of Indian Law, interest of country, justice or morality or if it is patently illegal. The top court was hearing an appeal filed by Haryana Tourism Ltd against an order of the Punjab and Haryana High Court which set aside a 2005 award passed by the arbitrator as well as the order passed by the Additional District Judge, Chandigarh.

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Draft Panel - MEF 2021-22

👉Please visit at https://app.meficai.org/draftPanel to view the category and other information related to the said MEF Application.

 

👉In case you have any comments/ observations on the details and category displayed, please share the same at 

https://app.meficai.org/complaints

👉latest by 23rd January 2022 thereafter no submission for the MEF 2021-22 will be considered.

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Annual Information System is Government New Experience   introduction replacing in future Form 26 AS. Form 26 AS is Xray of Tax payers and ASI can be called MRI of Tax Payers. Many Pros and Cons are regularly being reported by the Tax Payers So Government of India in a Press Release declared that the AIS should be treated as informative now and will not be taken in Tax computation as the Data reported is by Third Party.

Reserve Bank of India has proposed a new investment category called Fair Value through Profit and Loss Account (FVTPL) for banks as part of a overhaul of classification, valuation and operations of banks' investment portfolios.

ICAI has extended the last date for compliance of CPE hours’ requirements for the Calendar Year 2021 from 31st December, 2021 to 28th February, 2022. 

Requirement of completion of 20 Structured CPE hours which is mandatory to be completed by Members below 60 years holding COP for Calendar Year 2021, can be fulfilled through online mode (either through Digital Learning Hub or through Virtual CPE meetings including mandatory CPE hours on “Code of ethics” and “Standard on auditing”) till 28th February, 2022.

The CPE hours requirements to be complied with by various categories of members for the block period of three years (1.1.2020 to 31.12.2022) are available on www.cpeicai.org  

ICAI Draft Bank Branch Auditors’ Panel(MEF) of Chartered Accountants/firms for the year 2021-22 has been hosted at https://meficai.org/

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GST Case Updates

1️⃣ Hon'ble Supreme Court Order Suspending Limitation Is Applicable For Refund Under GST Act – Bombay High Court (Saither Supply Chain).

2️⃣ Goa AAR - Sale of land with electricity poles, drainage line not to attract GST (Shantilal Real estate).

This is contrary to Gujarat AAR (Dipesh Anil kr Nayak).

3️⃣ Maha AAAR - Allocation, Recovery of HO employees salary cost from branches will attract GST. 

The ruling also said the head office is not entitled to avail of tax credit on tax paid on common services.

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👉🏻Bombay HC sets aside rejection of refund claims by GST authorities*

(The Bombay High Court has quashed an order by the GST authorities that had rejected the refund claim of an assessee because it was filed after two years, a time limit set by the rules)

👇🏻 👇🏻 👇🏻

https://bit.ly/3nvObmE

👉🏻Draft Bank Branch Auditors' Panel of Chartered Accountants/firms for the year 2021-22

(The Draft Panel will be available up to Sunday, 23rd January, 2022. Complaints if any have to be lodged by then.)

👇🏻 👇🏻 👇🏻

https://bit.ly/3KtIQ9F

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👉🏻Delhi Man Arrested For Issuing Fake GST Invoices Worth Rs. 4,521 Cr(Scrutiny of tally data has shown that there are 636 firms being operated by this syndicate and the mastermind of the syndicate has accepted that they have issued only invoices in these firms and not supplied any goods against them)

👉Claim for GST dues filed by Commissioner CGST after implementation of resolution plan couldn’t have been considered. (NCLAT- New Delhi) 

👉Banks pitch for reduction of tax-free fixed deposit tenure to 3 years. 

👉RBI wants digital currency included under definition of 'bank note': FinMin. 

👉Jurisdiction Of Authorities Under PMLA ( Prevention of Money Laundering Act, 2002) to Proceed Against Properties Of Corporate Debtor Ceases Once Liquidation Approved Under IBC: Delhi High Court. 

🙂To stay safe in the fight against COVID-19, wear a mask, 🙂

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15 January 2022 Updates

ITAT Delhi deletes addition on account of Client Code Modifications. Case Name : DCIT Vs Futurz Next Services Ltd. (ITAT Delhi) Appeal Number : ITA No.3556/Del/2016 Date of Judgment/Order : 04.01.2022

CBDT issues refunds of over Rs 1,54,302 crore to more than 1.59 crore taxpayers from 1st Apr 2021 to 10th January 2022,” the I-T department tweeted. This includes personal income tax refunds of Rs 53,689 crore to over 1.56 crore entities and corporate tax refunds of over Rs 1 lakh crore to more than 2.21 lakh businesses.

Today (15.1.22) is the last date to file TCS Return in Form 27EQ for Oct-Dec 2021. If applicable generally but NIL this time, update NIL in TRACES. 

Insolvency and Bankruptcy Code (IBC) could soon see some strengthening, including a cross-border insolvency framework and measures to speed up resolution of cases, with the matter set to be taken up in the upcoming budget session of parliament, government insiders said.

The Supreme Court has said the award can be set aside under the Arbitration Act, if it is found to be contrary to the fundamental policy of Indian Law, interest of country, justice or morality or if it is patently illegal. The top court was hearing an appeal filed by Haryana Tourism Ltd against an order of the Punjab and Haryana High Court which set aside a 2005 award passed by the arbitrator as well as the order passed by the Additional District Judge, Chandigarh.

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Ready-to-eat fryums papad to face 18% GST. Papads are telling us an important story under GST

AAAR Gujarat in Re Alisha Gruh Udyog.

1️⃣ A man who enjoys crunching a disc of spiced dough fried to a mass of crisp blisters oozing spicy flavours and oil is now left with a bitter taste in his mouth. That's the Papad.

2️⃣ HSN 2106 includes sweets and namkeens having GST rate 18%. The Petitioner had argued that its product should come under Entry 96 of HSN code 1905 (papad) which draws nil GST.

3️⃣ AAAR ruled that this entry is for those papad products that are in ready-to-cook condition and require roasting or frying before consumption.

4️⃣ Recent and Past Ruling clarified fryums are also flour mixed with spices and come in different shapes and sizes, these should also be classified as papad subject to nil rate. 

5️⃣ However Papad, by whatever name known, is exempt from GST vide Entry No. 96 of GST notification No.2/2017-CT(R). CBIC had tweeted.

Contradictory ruling by many advance ruling authorities need to the point of constitution of Central AAR to decide and look after matter of State decided rulings.

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✅ MCA- Increase in Additional fees in case of delay in filing

W.e.f July 1, 2022, additional fees on form will be increased to 18 times from existing 12 times of normal fees.

However, these excludes Annual Filings which are charged at Rs. 100 per day without any upper limit.

https://www.mca.gov.in/bin/dms/getdocument?mds=%252FwqhpSXC6%252BFxaMTdJJWnnA%253D%253D&type=open

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✅ ICAI has decided to increase the honorarium payable to the observers from Rs 1500/- to Rs 3000/- per duty . Same is to be implemented wef December 21 exams.

You are requested to submit the revised bill on or before 15th January 22.

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Delhi Disaster Management has restricted Private offices including  Chartered Accountants office to close / work from Home. Karnataka State  has allowed/ included CA office in essential services. Therefore we have requested Delhi Government to include CA office in essential services with 50% capacity working, they have assured for the same. 

CBDT has extended the due dates for filing tax audit reports and income tax return for certain category of taxpayers for FY 2020-21. This was announced by the income tax department via a press release issued on January 11, 2022.

Finance Minister  in Union Budget 2021-22, proposed changes vide the Finance Bill, 2021, that amends the Central Goods and Services Tax Act, 2017 with respect to recovery of self- assessed tax, which is now notified vide Notification No. 39/2021–Central Tax dated December 21, 2021, by insertion of Explanation to Section 75(12) of the CGST Act with effect from January 01, 2022.

Late Filing of Co forms to be Costlier. Wef July 1, 2022, additional fees on late filing of various forms will be increased to 18 times from existing 12 times of normal fees. However, these excludes Annual Filings which are charged at Rs. 100 per day without any upper limit. Exclusion also for forms for increase in Nominal capital or for filing charges.

National Financial Reporting Authority (NFRA) plans to carry out a fresh analysis of its proposal of exempting small rms from mandatory statutory audit and may oat a revised draft report on it. To avoid the conflict, the authority to start a fresh round of discussion with the Institute of Chartered Accountant (ICAI) on the contentious issues of the proposal, they say.

Supreme Court has revived its extension order dated March 2020 and further relaxed the limitation period from 15 March 2020 until 28 February 2022. The relaxation would be applicable to all judicial and quasi-judicial proceedings under the income-tax laws, including filing of appeals, rectification, revision and other applications. 

ICAI has decided to increase the *honorarium* payable to the observers from Rs 1500/- to Rs 3000/- per duty . Same is to be implemented wef December 21 exams.. You are requested to submit the revised bill on or before 15 th January 22. 

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CBDT has issued a clarification on Form 10CCB on 12th January 2022. The clarification reads as under: To avoid errors in form filing and verification, kindly ensure that following points are considered:

Please assign Form 10CCB to respective Chartered Accountant(CA) from “My CA” functionality

Once CA successfully submits the form, taxpayer can accept/reject the Form 10CCB under “Worklist” functionality.

 In case a CA needs to file multiple forms for the same Assessment Year, taxpayer must assign the form to same CA from “My CA” functionality again. The assignment can only happen when there are no forms which are active for action either by CA or taxpayer.

In case taxpayer needs to assign Form 10CCB to different CAs for same Assessment Year, taxpayer must assign the form to different CA from “My CA” functionality again. The assignment can only happen when there are no forms which are active for action either by CA or taxpayer. (Same approach as mentioned in point 3 must be followed).

Cryptocurrencies or digital assets issued to employees by crypto exchanges as incentives are set to come under the taxman’s lens. The question is whether the coins—most of them issued by Indian exchanges—can be construed as income and what could be the income tax applicable on the digital assets. 

Gujarat Authority for Advance Ruling (AAR) has held that healthcare services, where multi-super specialty hospitals take a lump-sum amount in form of membership to provide services to their family, would not attract GST.

Happy to announce that Delhi Government has included Chartered Accountants and Tax Practitioner in Exempted Category of Delhi Disaster Management Authority. Now CA can open their offices. Congratulations to all Delhi CA members. Courtesy CA N D Gupta ji. 

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Budget 2022 Scheduled on 1.2.22

https://twitter.com/CASumitGarg3/status/1482191046138535936?t=tpfS_NWm4tJYgCDHMkDOxw&s=08

✅ Annual General Meeting of company can be held 30.11.2021 as per AGM Extension provided by the MCA. Accordingly shorter notice agm can be done on 30.11.2021, so balance sheet can be signed lastly on 30.11.2021. UDIN is to be generated with 60 days of signing of balance sheet. Last date to generate UDIN is 28.01.2021 for signing the balance sheet.

✅15.01.2022 for TCS Payment December 2021 Quarterly Statement of TCS for the quarter ending December 31, 2021

✅15.01.2022 for December 2021 - Due Date for the payment of PF/ESI contribution

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👉🏻Delhi Man Arrested For Issuing Fake GST Invoices Worth Rs. 4,521 Cr

(Scrutiny of tally data has shown that there are 636 firms being operated by this syndicate and the mastermind of the syndicate has accepted that they have issued only invoices in these firms and not supplied any goods against them)

👇🏻 👇🏻 👇🏻

https://bit.ly/3tuszv1

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12 January 2022 Updates

 🗣️ Income Tax Update:

👉🏻 On consideration of difficulties reported by taxpayers / stakeholders due to Covid & in e-filing of Audit reports for AY 2021-22 under the IT Act, 1961, CBDT further extends due dates for filing of Audit reports & ITRs for AY 21-22. Circular No. 01/2022  dated 11.01.2022 issued.

💥 Due Date to file TAR (Tax Audit Report) is further extended to 15/02/22 (Currently 15/01/22)

💥 Due Date to file ITR in such cases further extended to 15/03/22 (Currently 15/02/22)

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ICAI  has asked the government to bring back the audit and certification provisions relating to Goods and Services Tax (GST) annual returns, saying that doing away with audit will disrupt compliance.

Functionalities for uploading appeal filed by Taxpayer for GST cases before High Court / Supreme Court and uploading Cross-objections filed by Taxpayer against appeal before Appellate Tribunal for GST cases are available in CBIC-GST application for the officers. Advisory No. 02/2022 dated 03.01.2022 and related user manuals are available in Antarang portal.

Press Information Bureau had issued an update dated January 5, 2021, regarding evasion of Customs duty of Rs. 653 crore by M/s Xiaomi Technology India Private Limited.

 

As per Section 203 of Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules: Following Companies are required to appoint Full Time Company Secretary:

Every Listed Company

Every public company having a paid share capital of 10 crore rupees

Every private company having a paid share capital of 10 crore rupees.

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 Upcoming functionality - Interest Calculator in GSTR-3B

08/01/2022

1.As a facilitation measure for taxpayers & for assisting the taxpayers in doing a correct self-assessment, a new functionality of interest calculator is being released in GSTR-3B. This functionality will arrive at the system computed interest on the basis of the tax liability values declared by the taxpayers. The interest appliable, if any, on the tax liability declared in the GSTR-3B of a particular tax-period will be computed after the filing of the said GSTR-3B. These system computed interest values will be auto-populated in the Table-5.1 of the GSTR-3B of the next tax-period. The facility would be similar to the collection of Late fees for GSTR-3B, filed after the Due date, posted in the next period’s GSTR-3B.

2.This functionality has a user-friendly interface, which informs the taxpayers regarding the manner of system computation of interest values for each tax-head. This functionality also assists the taxpayers in doing correct computation of interest for the liability of any past period declared in the GSTR-3B for the current tax period, based on the details furnished by them on the portal.

3.This functionality will further improve ease of filing return under GST and is, therefore, in the direction of further reducing the compliance burden for taxpayers.

-For the detailed advisory regarding the interest calculator in GSTR-3B, is provided

-For Annexure containing a sample computation with screenshots of the upcoming functionality, is provided

This functionality, as and when available on the GST Portal shortly, will be intimated to the taxpayers.

Thanking You,

Team GSTN

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✅The Apex Court restores it's general extension order in suo muyo cognizance 3 of 2029 dated 23.03.2020  in continuation of the subsequent orders dated 08.03.2021, 27.04.2021 and 23.09.2021, directing  that the period from 15.03.2020 till 28.02.2022 shall stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi­ judicial proceedings. The limitations saved shall be available from 1.3.2022.

This decision shall apply to all Income Tax, VAT, GST, Service Tax appeals/objection limitations falling between 15.3.2020 to 28.2.2022.

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✅ GST Due Dates

11th January 2022 –  GSTR–1 Whose Turnover is more than Rs 5 Crore or have opted to file monthly return for the month of December 2021.

13th January 2022 –  GSTR-1 Who has opted to file return under QRMP Scheme for the quarter October - December-2021.

13th January 2022 –  GSTR-6  for the month of December 2021.

14th January 2022 –  GSTR-2B Auto Generated ITC Statement for the month of  December 2021.

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The Government has clarified that GST Officer will Give "Reasonable Time" to businesses to explain the mismatch between GSTR 1 and GSTR 3B before initiating recovery action for short payment or non-payment of taxes.

However, if the said businessman either fails to respond within the allowed time or fails to explain the reasons for short payment or non-payment of tax to the satisfaction of the Officer., then the proceedings under section 79 of the CGST Act 2017 will be initiated.

We believe that this Instruction has been issued to the Officers in the light of fear in the business community as Section 75 has been amended with effect from 1st January, according to which GST officers have been allowed to initiate direct recovery action where the monthly payment of GSTR 1 Return shows more sales than GSTR-3B.

E-commerce Operators now being responsible for paying GST on all restaurant services. Speaking of which, whether a business can be considered as ‘Restaurant Service’ or not has been a point of discussion for advance rulings since GST implementation, few cases being Pioneer Bakers [TS(DB)-GST-AAAR(OD)-2021-441] & Sri Venkateshwara Agencies [TS(DB)-GST-AAR(TEL)-2020-209].

Ministry of Textiles, Government of India (‘MoT’) had notified the Production Linked Incentive Scheme for Textiles (‘the Scheme’) in September 2021. The Scheme offers an incentives of ` 10,683 crores to enable the textiles industry to achieve size and scale, to become competitive and create greater employment opportunities. 

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8 January 2022 Updates

✅ GSTR-2A removed from GST PORTAL from the month of JANUARY 2022 now only GSTR-2B available because of applicable notification w.e.f. 01.01.2022.

(GSTR-2A available only for the m/o DEC 2021).

⏺️ 15.01.2022

Due Dates for Tax Audit Report (3CA-3CD/3CB-3CD)

The due date for filing of Tax Audit Report for all categories of assessees whose account are required to be audited.

⏺️ 15.01.2022

12AA/10(23C) registered/approved Charitable Trust/Institutions need to file Audit Report in Form 10B/10BB. 

⏺️ For filling of ITR-7 of these Institutions Due date is 15.02.2022

⏺️ 15.02.2022

Filing Income Tax Return Due Date for AY 2021-22 (Audit Cases)

⏺️ 31.03.2022

The due date for filing a revised and belated income tax return for AY 2021-22 till 31st March 2022

✅Extension of last date for submitting applications for Scrips based FTP Schemes notified as 31.12.2021 earlier has been extended to 31.01.2022.  For details may please refer DGFT Notification No. 48 dated 31.12.2021 posted on our Telegram group

✅ Job work services w.r.t dyeing or printing of textile products falling under Chapter 50 to 63 provided to registered person taxable @ 5%

✅Futures and options (F&O) are the most common types of asset derivatives traded on a stock exchange.

The income/loss arising from trading in F&O transactions would be treated as a Business Income / Loss for the purpose of taxation and the normal provisions of the Income Tax Act will apply in this case

The rules as applicable to tax audit as stated in section 44AB will be applicable in the case of F&O trading also.

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👉 Advanced Integrated Course on Information Technology and Soft Skills (Advanced ICITSS) - Adv. Information Technology Test on 25 Feb 2022

https://resource.cdn.icai.org/68704exam54935.pdf

👉 Convocation 2021-22 -

https://www.icai.org/post/convocation-2021-22

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👉 RBI releases Framework for Facilitating Small Value Digital Payments in Offline Mode

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53038

👉 Implementation of Rule-59(6), as amended, on GST Portal

https://www.gst.gov.in/newsandupdates/read/515

🏵️ CAG Empanelment - 2022-23

🪴 Dear Professional Colleague,

🎯 The CAG Empanelment process for 2022-23 has started.

👉 Last Date for online submission is 15th February, 2022

👉 The firms/LLPs will be required to submit a print out of the acknowledgement letter generated online and also hard copies of the documents in support of their online application to the CAG Office by 28th February, 2022

🫐 Visit http://care.cag.gov.in/Authorised/Default.aspx

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👉Reporting of supplies notified under section 9(5) / 5(5) by E-commerce Operator in GSTR-3B

https://www.gst.gov.in/newsandupdates/read/516

👉RBI releases 2021 list of Domestic Systemically Important Banks (D-SIBs)

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53045

👉Exposure Draft of Revised Accounting Standard for Comments - (04-01-2022)

https://www.icai.org/post/ed-of-revised-accounting-standard-for-comments

👉RBI appoints Shri Ajay Kumar Choudhary as new Executive Director

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53049

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Allahabad HC imposes Penalty on GST Dept. for Unnecessary Harassment for Copy of Electricity Bill for granting GST Registration. 

Fresh trouble could be brewing for the cryptocurrency exchanges as the income tax department is now contemplating investigating them over the tax applicable to their total income. This comes after the GST department conducted searches in the past week on the crypto exchanges.

The gross GST revenue collected in the month of December 2021 is Rs 1,29,780 crore of which CGST is Rs 22,578 crore, SGST is Rs 28,658 crore, IGST is Rs 69,155 crore (including Rs 37,527 crore collected on import of goods) and cess is Rs 9,389 crore (including Rs 614 crore collected on import of goods).

CAG Empanelment process for 2022-23 has started. Last Date for online submission is 15th February, 2022. The firms/LLPs will be required to submit a print out of the acknowledgement letter generated online and also hard copies of the documents in support of their online application to the CAG Office by 28th February, 2022. Visit http://care.cag.gov.in/

SEBI / Board invites applications from eligible CA  candidates who are desirous of engagement with the Board under its Young Professional Program. The details of the program and the various terms and conditions thereof are available on their website. 

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Restore Your Membership, if removed

Those who could not pay the membership fees & name was removed from the register, can Submit form 9 and Activate the Membership on the SSP portal.

Payment Link : http://shorturl.at/buvCP

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⛔

Clarification on Form 3CA-3CD, 3CB-3CD

1. Use the latest version of the utility for generating JSON

2. Please re-enter data, if any, in clauses 11, 18, 20, 21, 26 and 34 and generate JSON for uploading on portal

3. Ensure that the below details are correctly entered in the utility and selected in portal for which form is being filed

  a. PAN of Taxpayer

  b. Assessment Year

  c. CA Membership Number

  d. Form Filing Type

4. Consider the below points for form verification by DSC:

  a. The latest Emsigner/Embridge application is installed in your system

  b. The token must be logged in by the user

  c. Profile and contact details are updated in taxpayer and CA login

  d. Local Host e-Mudhra is not blacklisted by the system Admin

  e. e-Mudhra token drivers is updated

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👉 Advisory on Revamped Search HSN Code Functionality

https://tutorial.gst.gov.in/downloads/news/advisory_on_search_hsn_code_functionality_final.pdfhttps://tutorial.gst.gov.in/downloads/news/advisory_on_search_hsn_code_functionality_final.pdf

👉 Announcement - Postponement of Convocation 2021-22 at Kanpur and Jaipur 

https://www.icai.org/post/postponement-of-convocation-2021-22-at-kanpur-and-jaipur

👉 Convocation 2021-22 - (14-12-2021) (Last updated on 06-01-2022)

https://www.icai.org/post/convocation-2021-22

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https://carohitjaiswal.blogspot.com/p/update-android-app.html?m=0

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1 January 2022 Updates

 The Income Tax Department has announced the roll-out of a new statement namely Annual Information Statement (AIS) which would provide you with almost all details about your financial transactions during the year.

A taxpayer can submit online feedback if the information is erroneous or refers to another person/year, or is duplicate Here’s the list of Top 50 Transactions to be reported in the New Annual Information Statement.

Salary : Employer submits detailed breakup of salary, perquisites, profits in lieu of salary etc paid to the employee in Annexure II of the TDS statement (24Q) of the last quarter.

Rent Received : Tenants responsible for paying rent are liable to deduct tax at source on payment of rent.

Dividends : Dividend paid/declared by all companies (reporting entity) is reported under Statement of Financial Transactions (SFT).

Interest from savings bank :

Interest from deposit

Interest from others

Interest from income tax refund

Rent on plant & machinery

Winnings from lottery or crossword puzzle

Winnings from horse race

Receipt of accumulated balance of PF from employer u/s 111

Interest from infrastructure debt fund

Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa)

Interest on bonds and government securities

Income in respect of units of non-resident u/s 115A(1)(a)(iiab)

Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b)

Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC.

Income of foreign institutional investors from securities u/s 115AD(1)(i)

Insurance commission.

Receipts from life insurance policy

Withdrawal of deposits under national savings scheme

Receipt of commission etc. on sale of lottery tickets

Income from investment in securitization trust

Income on account of repurchase of units by MF/UTI

Interest or dividend or other sums payable to government

Payment to non-resident sportsmen or sports association u/s 115BBA

Sale of land or building.

Receipts from transfer of immovable property

Sale of vehicle

Sale of securities and units of mutual fund

Off market debit transactions

Off market credit transactions

Business receipts

Business expenses

Rent payments

Miscellaneous payments

Cash deposits in Bank

Cash withdrawals from Bank C/A.

Cash payments : Information pertaining to Cash payments for goods and services is reported by the reporting entity in form 61A.

Outward foreign remittance/purchase of foreign currency

Receipt of foreign remittance

Foreign travel : Information is reported by deductor in TCS form 27EQ (quarterly statement).

Purchase of immovable property : Information relating to immovable property is reported by the Property 

Registrar through SFT.

Purchase of vehicle: Information is reported by deductor in TCS form 27EQ (quarterly statement).

Purchase of time deposits

Purchase of securities and units of mutual funds

Credit/Debit card

Balance in account : Details of bank account other than saving and time deposits opened during the year , as reported in Form 61.

Income distributed by business trust

Income distributed by investment fund

So now the income-tax department knows more about you & you have to be very careful in the next ITR filing plus proper records to be maintained by all for the above list of items as anytime the department will ask about it.

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MULTIPLE ADVERSE & SERIOUS CONSEQUENCES OF TDS DEFAULTS

1️⃣ Tax Deduction At Source (TDS) is one such thing on which Income tax law provisions are quite harsh.

2️⃣ Non deduction of TDS entails several consequences such as, assessee is liable to be held as “assessee in default” meaning thereby TDS can be recovered from him, Interest @ 12%p.a. is mandatorily leviable on such non- deducted TDS, penalty u/s 221 can be levied which can be any amount upto the amount of TDS default, another penalty u/s 271C can also be imposed which is equal to the amount of TDS default.

3️⃣ Further 30% of such amount on which TDS default has happened would be added to business or professional income if such amount is sought to be claimed as expense against business or professional income meaning that TDS defaulter assessee would have to pay tax also accordingly. 

4️⃣ In case, TDS though deducted but not paid or short paid or even not paid in time,  has got one very serious consequence in the form of prosecution u/ s 276B with minimum rigorous imprisonment of 3 months to 7 years with Fine.

5️⃣ One such case has been reported today in all leading newspapers where one Session Court at Mumbai has confirmed the conviction to TDS defaulter Assessees. Though restricted defence is available in law but our humble advice is that default should be avoided & proper care needs to be exercised in the matter of TDS in the face of severe consequences.

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✅ EXTENSION of ROC Filing*

Relaxation on levy of additional fees 

⏺️Filing of e-forms upto 15.02.2022

AOC-4, 

AOC-4 (CFS), 

AOC-4 XBRL 

AOC-4 Non-XBRL 

⏺️Filing of e-forms upto 28.02.2022

MGT-7/MGT-7A 

⏺️ No extension for

1) LLP FORMS

2) ADT -1

3) regularisation of Directors and AGM procedures

✅ GST Council finalised deferment of hike in GST rates on Textiles & footwear below Rs1000 on 31st December

✅ GST Extension:

The due date for furnishing annual return in FORM GSTR-9 & self-certified reconciliation statement in FORM GSTR-9C for the financial year 2020-21 has been extended from 31.12.2021 to 28.02.2022. Notification No.40/2021-Central Tax  dated 29.12.2021.

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 The CBDT after notifying revised faceless appeal scheme on 28th December, 2021, today ( 30th December,2021 ) issued guidelines for seeking out of turn/ early hearing of appeals before CIT (A) . As per these guidelines cases with demand of more than Rs 1 Cr , cases with original refund claim in excess of Rs 1 lakh, cases where direction of early hearing has been given by Courts, cases where request is made by Sr Citizens and also other genuine hardship can be considered and taken up for out of turn / early hearing. Application/ request to be made to PCIT on whose recommendation PCCIT will consider and give approval.

Regards 

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CHANGES IN HSN CODES AS PER HS-2022 w.e.f 01.01.2022

1️⃣ The WCO has announced the New (Seventh) edition of HSN - HS-2022 w.e.f 01.01.2022. 

2️⃣ India being party to HS Convention will also align its First Schedule of Customs Tariff Act with HS-2022. The necessary changes required were already in placed in the Finance Act, 2021.

3️⃣ The new HS-2022 have around 351 amendments at 6 Digit level. whereas India follows 8 digit classification. 

4️⃣ In order to ease the transition for Exporter and Import and making the co-relation between HS2021 and HS2022 at 8-digit level, Customs have provided a correlation document(at 8 digit level).

5️⃣ The Correlation document can be accessed on the CBIC Website at the link below:

https://www.cbic.gov.in/resources//htdocs-cbec/deptt_offcr/Guidance%20Document%20on%20Correlation%20of%20Customs%20Tariff%20between%202021%20and%202022.pdf

6️⃣ The Document provides - Annexure I which provides the coding and Annexure II which shows the HS code of both versions 2021 and 2022 along with the "correlation code".

The "Correlation code" is provided at each 8 digit entry to provide clear meaning and the change happened in HS-2022.

7️⃣ Exporter / Importers are requested to get their HS codes aligned with HS-2022 for their transactions w.e.f 01.01.2022.

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CBDT after notifying revised faceless appeal scheme on 28th December, 2021, yesterday ( 30th December,2021 ) issued guidelines for seeking out of turn/ early hearing of appeals before CIT (A) . As per these guidelines cases with demand of more than Rs 1 Cr , cases with original refund claim in excess of Rs 1 lakh, cases where direction of early hearing has been given by Courts, cases where request is made by Sr Citizens and also other genuine hardship can be considered and taken up for out of turn / early hearing. Application/ request to be made to PCIT on whose recommendation PCCIT will consider and give approval.

Revised faceless CIT Appeal Scheme notified . As per new scheme a personal hearing through Video Conference can be requested and when request is made the same shall be allowed . No discretion with the CIT (A ) to refuse such request of oral hearing through VC. The relevant part of scheme reads as under:-

No personal appearance in the Centers or Units.––(1) A person shall not be required to appear either personally or through an authorized representative in connection with any proceedings under this Scheme before the income-tax authority at the National Faceless Appeal Center or appeal unit set up under this Scheme.

The appellant or his authorized representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the Commissioner (Appeals), through the National Faceless Appeal Center, under this Scheme.

The concerned Commissioner (Appeals) shall allow the request for personal hearing and communicate the date and time of hearing to the appellant through the National Faceless Appeal Center.

Such hearing shall be conducted through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure.

Income Tax One-time relaxation for verification of all ITR e-filed for the Assessment Year 2020-21 Verification can be done till 28/02/2022.

Processing u/s 143(1) will be done till 30/06/2022.

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