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.
๐Withdrawal functionality of 15CB forms at e-filing portal - (10-09-2022)
https://www.icai.org/post/udin-withdrawal-functionality-of-15cb-forms
๐Module wise new functionalities deployed on the GST Portal for taxpayers (12-09-2022)
https://www.gst.gov.in/newsandupdates/read/555
๐CBIC 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
๐E-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 .
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
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
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.
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.
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.
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".
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.
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.
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.
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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๐จ๐ป๐ 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.
๐ง๐ป๐ 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.
๐จ๐ป๐ 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.
๐ง๐ป๐ What could be the other reasons in your opinion? Do let us know ๐ค
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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.
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.
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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