14 May 2022 Updates

👉🏻Cost Accountants’ Institute asks Govt to allow members to conduct financial audits of MSMEs

(The cost accountants’ institute has requested the government to consider allowing cost and management accountants to conduct financial audit of MSMEs and private limited companies)

👇🏻 👇🏻 👇🏻

https://bit.ly/37rwrnV

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CBDT, vide Circular No. 9/2022 dated 09.05.2022, issues Guidelines for the purpose of removing difficulties in implementation and interpretation of Section 10(23FE); CBDT on 06.05.2022 notified compliance requirements, computation mechanism for minimum investment and exempt income under Section 10(23FE) for AIFs, domestic companies and NBFCs. 

GST Council is considering levying 28 percent tax on cryptocurrencies and related services. The proposal is likely to be tabled in the next GST Council meeting. According to the sources, the government’s view is to keep cryptos on par with lottery, casinos, betting and race courses.

Gujarat High Court ruling that actual value of land should be deducted before levying GST on under-construction flats would reduce the tax outgo for homebuyers, provided the contractual arrangement transparently denotes the land value, experts said. Currently, GST is levied on sale of under-construction flats/units wherein the entire value of flat or unit (including value of underlying land) is taxed. 

Wef FY 21-22, show in Balance sheet Investment in Shares in or by Struck off Compa  in MCA,  Debtors, Creditors & other balances in Struck off Companies. 

Cost accountants’ institute has requested the government to consider allowing cost and management accountants to conduct financial audit of MSMEs and private limited companies. The Institute of Cost Accountants of India, set up under an Act of Parliament, has around 90,000 members and about 5 lakh students.

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Income tax  Instruction to AO for how to handle 148 cases after SC Judgement. 

Exercised the power under section 119 of the Act

Notices issued for AY 13-14, 14-15 and 15-16 shall be deemed valid if income escaping is more than Rs. 50L

Notices can be issued for AY 2016-17 and 17-18 in all types of cases as time limit extended till 30 June by TOLA, however approval of specified authority required as per new section 151 of the Act

AO may drop the proceeding if he thinks that it is not fit case of 148.

Central Board of Direct Taxes (“CBDT”) has amended Income Tax Rules related to Quoting of Permanent Account Number (“PAN”) in relation to Certain Banking Transactions. This Amendment has been bought by Income-tax (Fifteenth Amendment) Rules, 2022.

C&AG - 2022-23 Empanelment Status available on www.care.cag.gov.in from 6/5 to 17/5/22. For rectification, email at sao2ca5@cag.gov.in by 17/5/22.

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👉 Call for Research Proposals under 'Funding for Research Studies on Corporate Governance' under Expert Committee (EC) | 187 KB

https://www.mca.gov.in/bin/dms/getdocument?mds=ecyiB7P%252FIcFfj2PI9qWbQw%253D%253D&type=open

👉 Declaration of Result of the online examination of the 'Certificate Course on Indian Accounting Standards (Ind AS)' held on 24th April 2022

https://resource.cdn.icai.org/70374asb56277.pdf

👉 38th Half Yearly Report on Management of Foreign Exchange Reserves: October - March, 2021-22

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53698

👉 RBI imposes Monetary Penalty on Unimoni Financial Services Limited

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53696

👉like , Subscribe and Share  Following links For Further videos and updates 

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CBDT issued extensive guidelines for implementing a Supreme Court  order in reassessment cases. The court had earlier this month ruled that the thousands of show cause notices the Income Tax department had issued under a previous regime should be treated as ones issued under a new one for reopening assessment cases. The CBDT said that for three years, viz. assessment years (AY) 2013-14, 2014-15 and 2015-16, reassessment notices will not be issued for small taxpayers whose asset is less than Rs 50 lakh. 

CBDT also clarified about subsequent years--AY 2016-17 and AY 2017-18--where timeline to issue notices under Section 148, as extended by various Taxation & Other Laws Amendment Acts ('TOLA') till June 30, falls within a period of three years. Tax officers, in such cases, will issue show cause notices and provide material/ information to taxpayers for initiating reassessment proceedings, within 30 days. 

PAN or Aadhaar is made mandatory for cash deposits or withdrawals above Rs 20 lakh. In a notification issued on May 10, 2022, the government has come out with new rules especially pertaining to those making financial transactions without a PAN or Aadhaar. The Central Board of Direct Taxes has made new rules, called the Income–tax (Fifteenth Amendment) Rules, 2022. 

Companies AGMs / EGMs due in 2022 can be held upto 31.12.22 through Video Conference (VC) or Other Audio Visual Means (OAVM). General Circulars 2&3 of 5.5.22.

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🟢Functionality for updating UDIN against the Audit reports submitted by CA users has been enabled at e-filing portal www.incometax.gov.in. This functionality may not be used for updating UDIN for Forms submitted prior to April 2021. In this functionality only those Forms will be shown which are accepted by the Assessee.

🟢Due date of payment of ESI contribution of March, 2022 extended from 15.4.2022 to

 30.4.2022.

🟢Due date for ESI return for the contribution period October, 2021 to March, 2022 extended from 11.5.2022 to 26.5.2022.

🟢EPCG export obligation relaxation & increase in time limit with the additional fees. DGFT vide Public Notice No. 03/2015-2020 dated April 13, 2022.

🟢CBIC has enabled the Shipping Bill amendment facility on ICEGATE

🟢CBIC has proposed mandatory GST scrutiny on a quarterly basis to enhance compliance through effective and standardised scrutiny of returns.

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A high-level committee has proposed an overhaul of the audit architecture, including a ban on non-audit work in “public interest” or large companies, and mandating auditors of holding companies to look into the accounts of subsidiaries. 

The panel, whose recommendations were released for public comments, has suggested joint audits for certain classes of companies, in addition to specifically providing for forensic audit under the law. 

​The NFRA has taken away some of the powers that earlier vested with the Institute of Chartered Accountants of India when it came to regulating CAs and taking di- sciplinary action.

​Parliamentary standing committee on finance has pitched for providing a credit card to MSME entrepreneurs on the lines of Kisan credit cards, putting in place a mechanism for payment scores and a significant ramp up of SIDBI to ensure access to regular credit to small businesses.

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The process of Income Tax Return filing for the Assessment Year 2022-23 has been initiated with timely notification of ITR Forms (from ITR-1 to ITR-6). However, only two ITR Forms – viz. ITR-1 (Sahaj) and ITR-4 (Sugam) – are now available on the Income Tax Portal for filing of the return of income.



Foreign exchange fluctuation loss incurred for the purpose of borrowing in the business of financing and leasing is a revenue expenditure allowable u/s 37: WIPRO Finance Limited Vs CIT.

The GST Council at its meeting next month is likely to consider a proposal to do away with the 5 per cent slab by moving some goods of mass consumption to 3 per cent and the remaining to 8 per cent categories. 

Government has amended rules of the Foreign Exchange Management Act (FEMA), paving the way for up to 20 per cent foreign direct investment in the insurance behemoth LIC.

Certificate Course on MSME (First Physical Batch) at Hotel Park Plaza, CBD Sahadara, Delhi. Organised by : Committee on MSME & Startup, ICAI Objective: This Certificate course is intended to equip Chartered Accountants to provide professional services as well as entering intoMSME space themselves; to help achieve national objectives. Registration Fees Rs 12000 plus GST total 14,160/- inclusive GST.

Registration Link : https://learning.icai.org/committee/cmip/virtual-certificate-course-on-msme-batch-7/

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👉 Revised MCA21 V3 Login FAQs | 600 KB

https://www.mca.gov.in/bin/dms/getdocument?mds=YVS7V1nK5RDqKPcvbesAyA%253D%253D&type=open

👉 India's forex reserves enough to cover just a year’s imports

https://economictimes.indiatimes.com/news/economy/finance/import-cover-of-forex-reserves-shrinks-30-percent-in-fy22/articleshow/90859445.cms

👉 India in no rush for Re-Rouble mechanism

https://economictimes.indiatimes.com/news/economy/finance/india-in-no-rush-for-re-rouble-mechanism/articleshow/90855814.cms

👉 GST & Indirect Taxes Committee is organising Intensive Lecture Series on GST from 19th to 23rd April, 2022 [5 p.m. to 8 p.m. each day] which is hosted by Chengalpattu District Branch of SIRC of ICAI.

https://idtc.icai.org/

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👉🏻GST bogus billing cases also come under scanner of Income Tax dept

(The Income Tax sleuths are also keeping close watch on the cases of bogus billing and availing input tax credit (ITC) fraudulently, which was busted by GST authorities)

👇🏻 👇🏻 👇🏻

https://bit.ly/384iVGM

👉🏻Appointment of the CA firm for Concurrent Audit of Investment Transactions ECGC Ltd.

(Appointment of the CA firm for Concurrent Audit of Investment Transactions ECGC Limited)

👇🏻 👇🏻 👇🏻

https://bit.ly/3rzYHvq

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functionality for updating UDIN against the Audit reports submitted by CA users has been enabled at e-filing portal www.incometax.gov.in. Please Note: 

 

Update UDIN functionality is applicable only for Forms submitted on or after April 2021. 

 

UDIN for only those Forms can be updated which are accepted by the Assessee. 

 Information is correctly filled against the Form as per UDIN generated from the ICAI portal. 

Salary TDS Utility versions 1.7 and 1.4 are now available TRACES Portal to generate Salary TDS Certificates for F. Y. 2021-22 (A. Y. 2022-23) in Form-16 Part-A and Part-B.

You may download and use this new utility to requisition Salary TDS Certificates in Form-16.

MCA has tightened the rules for Nidhi Companies. Going forward, any public company incorporated as Nidhi with a share capital of Rs 10 lakh will have to submit an NDH-4 form and apply with the central government to be notified as a Nidhi company within 120 days of its incorporation. Also, the company needs to have at least 200 members and should have a net owned fund (NOF) of Rs 20 lakh. 

SEBI  streamlined the payment of processing fee through the Unified Payments Interface (UPI) system for shares applied for and allotted during an initial public offering (IPO). In addition, the regulator has devised a new reporting format for capturing the data of all ASBA (Application Supported by Block Amount) applications unblocked by Self Certified Syndicate Banks (SCSBs) and their corresponding date of actual unblock.

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As per the latest Notification No. 37/2022 of Income Tax department dated 21.04.2022, income tax return filing is mandatory for below mentioned persons:

🏄🏻‍♀️- Total sales, turnover or gross receipts in the business exceeds INR 60 Lacs; or

🏟️- Total gross receipts in profession exceeds INR 10 Lacs; or

🚨- Aggregate of withholding taxes (TDS and TCS) is INR 25,000/- or more, but INR 50,000/- or more for an individual resident aged 60 years or more ; or

💸- Aggregate of deposit in one or more savings bank accounts is INR 50 Lacs or more.

 

🔮 Apart from above, there are some other criteria as well as a result of which filing of return is already made mandatory for following categories of the taxpayers as under:

🪙- Deposit of INR 1 crores or more in one or more current accounts with a banking company or co-operative bank;

✈️- Expenditure of INR 2 Lacs or more on foreign travel expenses either for himself or for any other person;

📟- *Expenditure of INR 1 Lacs or more towards consumption of electricity.

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CBDT has notified additional conditions under the seventh provision to section 139(1) whereby return filing is made mandatory in case turnover from business or gross receipt from profession exceeds Rs. 60 lakh or Rs. 10 lakh, respectively. Further, return filing shall be mandatory if the amount of tax deducted and collected in case of a person exceeds Rs. 25,000 or deposit in savings bank account(s) is Rs. 50 lakh or more.

CBDT designates a Special Court in Kerala under Black Money Act. Notification No. 34/2022-Dated: 19.04.2022 CBDT designates Court in the State of Kerala as the Special Court for the purposes of section 280A(1) of  Income-tax Act, 1961 and section 84 of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Bombay High Court in the case of Vodafone Idea Ltd. Vs ACIT [Appeal   Number: WP No. 3560 of 2019, Order Dated 03/01/2022] has made an observation which has far reaching impact that if Material available with the Assessing Officer during the course of original assessment – No reassessment permissible u/s 147. 

Since the GST law does not provide any action against the FEW / corrupt/ erring officers, the Court has stepped in. [TS-151-HC(GUJ)-2022-GST]

Gujarat High Court strikes down order canceling Assessee’s GST registration, comes down heavily on State Tax Officer for passing absurd order in pursuance of vague SCN; Strictly quotes that “henceforth if this court comes across any such vague order or SCN duly signed by him, then that will be his last day in the office”; Maybe this is the only way. 

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👉 E-filing of ITR 1, ITR 2 and ITR 4 for AY 2022-23 is enab…

https://www.incometax.gov.in/iec/foportal//latest-news#31fee7c2-59a8-43a0-a195-5e0e0901addd

👉 Notice inviting comments on Company Law Committee Report 2022 | 10 KB

https://www.mca.gov.in/bin/dms/getdocument?mds=CltvrFMytCdMed6rdIu5XA%253D%253D&type=open

👉 Minutes of the Monetary Policy Committee Meeting, April 6 to 8, 2022

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53601

👉 Banks putting more of surplus funds in commercial papers as rates rise

https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-putting-more-of-surplus-funds-in-commercial-papers-as-rates-rise/articleshow/91013694.cms

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CBDT, vide Notification No. 42/2022 dated 22.04.2022, notifies amendment in Rule 17C by Income-tax (10th Amendment) Rules, 2022; This allows investment made by a person, authorised under Section 4 of the Payment and Settlement Systems Act, 2007 in the equity share capital or bonds or debentures of Open Network for Digital Commerce Ltd. (ONDCL) for participating in network based open protocol models which enable digital commerce and interoperable digital payments in India. 

Owner, in his will, is entitled to give his property in favour of strangers. Case Name : Saroja Ammal Vs M Deenadayalan & Appeal Number : Ors. (Supreme Court of India) Date of Judgement/Order : Civil Appeal No.2828 Of 2022 Related Assessment Year : 08/04/2022.

Filing of ITR: The government has now made it mandatory for an individual to file income tax returns in case of following conditions, even if the individual's income is below the basic exemption limit.:

if his total sales, turnover or gross receipts, as the case may be, in the business exceeds 60 Lakh rupees during the previous year; or

if his total gross receipts in profession exceeds 10 lakh rupees during the previous year; or

if the aggregate of tax deducted at source and tax collected at source during the previous year, in the case of the person, is 25,000/-  rupees or more; or

 the deposit in one or more savings bank account of the person, in aggregate, is rupees 50 lakh or more during the previous year.

These are really seems to be the stringent measures and certainly many taxpayer would come under the ambit of this condition, and definitely would reduce the litigation u/s 148.

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👉🏻Govt to remove 20% cap on foreign ownership in PSU banks

(As per reports,  Indian Overseas Bank and Central Bank of India are the two candidates who can be privatized. Additionally, the Bank of Maharashtra is also on the list)

👇🏻 👇🏻 👇🏻

https://bit.ly/3rNOuvc

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Income-tax laws lay out provisions for taxation of notional income on exercise of employee stock options (ESOPs) by characterising the differential between Fair Market Value (FMV) of shares allotted on exercise and strike price as perquisite.

Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that the Short Term Capital Loss on which STT was paid can be adjusted against the Short Term Capital Gain on which STT was not paid. Case: Shri Yogiraj Jaichand Makar. 

In the absence of independent inquiry made by the Income Tax Assessing Officer, the addition made is not justified - (Favour of Assessee) Batra Enterprises Vs. ACIT, 20.01.2022 (ITAT-Delhi)

Owner can seek redemption of confiscated goods/conveyances even after the confiscation order. Case Name : Shel Singh Purohit Vs Commercial Taxes Officer (Karnataka High Court) Appeal Number : Writ Petition No. 14645 of 2021 (T-RES). 

The GST Council has not sought views from states on hiking tax rates. They said that the panel of ministers looking into GST rate rationalisation is yet to submit its report to the GST Council. Stating that views have not been sought from states on hiking rates on 143 items, sources said, there is also no proposal to shift more than half of items to the highest tax GST slab of 28 per cent.

 

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Form 10BD is available from to file on the income tax portal by all the 80G/ 12A registered NGOs. Form 10BD is the statement of particulars for donations received by the NGOs, it is mandatorily to be filed by all the registered NGOs. As on today, 31st May 2022 is the last date to file this form. 

Income Tax Reassessment Notices under section 148, if issued on or after 01.04.2021, even for past years, should comply with new provisions/time limits & the procedure under section 148A; Karnataka High Court follows other High Court’s ruling. 

Sec 138 Negotiable Instruments  Act – blanket exemption from personal appearance cannot be granted. Case Name : Mahesh Kumar Kejriwal Vs Bhanuj Jindal (Supreme Court of India) Appeal Number : Petition for Special Leave to Appeal (Crl.) No. 3382/2022 Date of Judgement/Order : 18/04/2022.

DGFT issued Trade Notice No. 03/2022-23 dated April 26, 2022 w.r.t. new online module for filing application for recognition as Pre-Shipment Inspection Agency (“PSIA”) and issuance and electronic verification of Pre-Shipment Inspection Certificate (“PSIC”) w.e.f. May 01, 2022.

All existing PSIAs are required to register online on the DGFT Website (https://dgft.gov.in) → My Dashboard → Register and select ‘Register User As’ -‘Pre-Shipment Inspection Agency’. The said PSIA official shall thereafter navigate to Services → Pre-Shipment Inspection → Apply for PSIA and submit required details for activation of their specific online account.

On successful activation of the account, the PSIA may generate and upload Pre-Shipment Inspection Certificates (PSIC) online. All PSICs shall be mandatorily generated online through the DGFT Website w.e.f. July 01, 2022.

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👉 Implementation Guide on Reporting under Rule 11(e) and Rule 11(f) of the Companies (Audit and Auditors) Rules, 2014 issued by the Auditing and Assurance Standards Board - (26-04-2022)

https://resource.cdn.icai.org/70151aasb56099.pdf

👉 Form 26A, Form 27BA, Form 10BD and Form 10BE are availabl…

 https://www.incometax.gov.in/iec/foportal//latest-news#88903282-2fbd-439d-abaf-6d572069f631

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UDIN

1. Where UDIN is not updated on Income tax Portal, in all cases, there is error in taking udin by chartered accountant. This has been established in a joint meeting of ICAI, CBDT and Infosys.

2. After a series of meetings with authority, technical team has put up proposal before decision makers. Tomorrow, decision is expected.

Relaxation in UDIN

 Verification Parameters at Income tax e-filing Portal   

 

Presently, various instances of invalidation of UDINs at the e-filing portal are being reported. The members are advised to try again to update those UDINs which have been invalidated earlier at the e-filing portal now. 

Members are hereby advised to kindly update all the pending UDINs at the e-filing portal immediately. 

UDIN Directorate

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📌 𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐦𝐚𝐝𝐞 𝐢𝐧 𝐆𝐒𝐓𝐑 𝟏 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐅𝐢𝐥𝐥𝐢𝐧𝐠 𝐩𝐫𝐨𝐜𝐞𝐬𝐬:

Few changes are made in the form GSTR 1 to improve the filing process. The changes are:

𝟭. 𝗥𝗲𝗺𝗼𝘃𝗮𝗹 𝗼𝗳 𝗦𝘂𝗯𝗺𝗶𝘁 𝗯𝘂𝘁𝘁𝗼𝗻 𝗯𝗲𝗳𝗼𝗿𝗲 𝗳𝗶𝗹𝗹𝗶𝗻𝗴:  The present ‘Submit’ and ‘File’ buttons are replaced with a single-step filing process

𝟮. 𝗖𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗲𝗱 𝗦𝘂𝗺𝗺𝗮𝗿𝘆: Table-wise summary to provide an overview of the records added in GSTR-1

𝟯. 𝗥𝗲𝗰𝗶𝗽𝗶𝗲𝗻𝘁 𝘄𝗶𝘀𝗲 𝘀𝘂𝗺𝗺𝗮𝗿𝘆: Total Supply value & total tax involved for each recipient

𝟰. 𝗡𝗲𝘄 𝗙𝗶𝗹𝗹𝗶𝗻𝗴 𝗣𝗿𝗼𝗰𝗲𝗱𝘂𝗿𝗲: The existing steps to file GSTR-1 shall be replaced with the following steps

i.) Click ‘Generate Summary’ button for summary generation

ii.) Click ‘Proceed to File/Summary’ button to view the final summary

iii.) Click ‘File Statement’ button to file GSTR-1/IFF.

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MCA has communicated to ICAI that instances have been observed where practising professionals are not carrying out Due Diligence and Verification while carrying out incorporation of Company / LLP.  The Verification of documents pertaining to Directors, KMP, witness to MoA, AoA and verification of Registered Office are required to be done in strict accordance with the provisions of Law. Members may accordingly ensure strict compliance to avoid penal actions.

Production-linked Incentive Scheme for Steel PLI deadline for applications has been extended from April 30 to May 31. As a result, the application window will remain open until May 31, 2022. The extension was granted to allow for some adjustments to the plan that were requested by the sector.

𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐦𝐚𝐝𝐞 𝐢𝐧 𝐆𝐒𝐓𝐑 𝟏 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐅𝐢𝐥𝐥𝐢𝐧𝐠 𝐩𝐫𝐨𝐜𝐞𝐬𝐬: Few changes are made in the form GSTR 1 to improve the filing process. The changes are: 

𝗥𝗲𝗺𝗼𝘃𝗮𝗹 𝗼𝗳 𝗦𝘂𝗯𝗺𝗶𝘁 𝗯𝘂𝘁𝘁𝗼𝗻 𝗯𝗲𝗳𝗼𝗿𝗲 𝗳𝗶𝗹𝗹𝗶𝗻𝗴: The present ‘Submit’ and ‘File’ buttons are replaced with a single-step filing process.

 

𝗖𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗲𝗱 𝗦𝘂𝗺𝗺𝗮𝗿𝘆: Table-wise summary to provide an overview of the records added in GSTR-1 𝟯. 

𝗥𝗲𝗰𝗶𝗽𝗶𝗲𝗻𝘁 𝘄𝗶𝘀𝗲 𝘀𝘂𝗺𝗺𝗮𝗿𝘆: Total Supply value & total tax involved for each recipient. 

𝗡𝗲𝘄 𝗙𝗶𝗹𝗹𝗶𝗻𝗴 𝗣𝗿𝗼𝗰𝗲𝗱𝘂𝗿𝗲: The existing steps to file GSTR-1 shall be replaced with the following steps i.) Click the ‘Generate Summary’ button for summary generation ii.) Click ‘Proceed to File/Summary’ button to view the final summary iii.) Click the ‘File Statement’ button to file GSTR-1/IFF.

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Updates & UDIN Solutions:

UDIN Solution: Please retry today to update UDIN in income tax portal. If problem still error persist, then take a screenshot and send a email to efilingwebmanager@incometax.gov.in,  mentioning:

A) Your Login Id , 

B) Pan of Client & 

C) Udin .

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 🍫 CBDT extended timeline to update UDIN until 31st May 2022.

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👉🏻Timeline to update UDIN on e-filing portal is extended

(The timeline to update #UDIN is extended till 31st May 2022 to give more time to CAs to correctly verify and upload UDINs)

👇🏻 👇🏻 👇🏻

https://bit.ly/3OMIgpC

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🏄🏻‍♀️ CBDT Notifies Form and Manner for filing Updated Return in Notification No. 48/2022 dated 29-04-2022

🚴🏻‍♂️ Updated Return can be filed from the assessment year 2020-21 onwards.

Return shall be filed in form no. ITR-U alongwith applicable IT form from ITR-1 to ITR-7.

🏊🏻‍♀️ Return Can be updated on account of Below:

- Return Previously not filed

- Income not reported correctly

- wrong heads of income chosen

- Reduction of Carried forward Loss

- Reduction of Unabsorbed Depreciation

- Reduction of Tax Credit 

- Wrong rate of tax

- others

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☝️ NEW Section 139(8A) & New Rule 12AC

ITR Form for Updated Return has been notified. Ref. gazette notification dated 29.04.22

ITR - U Form is notified for Updated return u/s 139(8A). Updated return can be filed for A.Y. 2020-21onwards the Notification states.

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SEBI has tweaked the operational guidelines for depository participants and foreign portfolio investors (FPIs) pertaining to registration certificates of such foreign investors and change in their name. The new guidelines will be applicable from May 9. 

Relaxation of import provisions under Notification No. 20/2015-20 dated 24.08.2021 to allow import of remaining quantity of 5.50 Lakh MT of crushed & de-oiled GM soya cake upto 30.9.2022 or until further orders, whichever is earlier. Bill of lading of such import consignments to be on or before 30.9.2022 and “Out of Charge”.

ICAI Exam Observer Update: Observer Portal will be live from 3rd May 2022 at 10.00 am to 6th May 2022 at 11.59 PM for Self-selection of Observership assignment for May / June 2022 Examinations._

Weblink: https://observers.icaiexam.icai.org

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SC rules in favour of Revenue in re-assessment controversy, holds all notices issued under old Sec. 148 will be deemed to have been issued under Sec. 148A; Income-tax Officer to follow procedure laid down as per amendments made via Finance Act, 2021; All defences shall be available to both Revenue & Assessee under amended Sec. 149; In exercise of power under Article 142 of Constitution, all High Court orders stand modified & this judgment of Supreme Court to substitute the same; Revenue not required to file any more appeals, thus saving filing of more than 9000 appeals; Apex Court ruling to apply to all pending writs in different High Courts: Sources

The judgment was pronounced by a division bench of Justice M.R. Shah and Justice B.V. Nagarathna, a few minutes ago.

Additional Solicitor General & Sr. Adv. N. Venkataraman argued successfully on behalf of Union of India.

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Annual Aggregate Turnover (AATO) computation for FY 2021-22

The functionality of AATO for the FY 2021-22 has now been made live on taxpayers’ dashboards with the following features:

1. The taxpayers can view the exact Annual Aggregate Turnover (AATO) for the previous Financial Year (FY).

2. The taxpayers can also view the Aggregate Turnover of the current FY based on the returns filed till date.

3. The taxpayers have also been provided with the facility of turnover updation in case taxpayers feel that the system calculated turnover displayed on their dashboard varies from the turnover as per their records.

4. This facility of turnover update shall be provided to all the GSTINs registered on a common PAN. All the changes by any of the GSTINs in their turnover shall be summed up for computation of Annual Aggregate Turnover for each of the GSTINs.

5. The taxpayer can amend the turnover twice within the month of May, 2022. Thereafter, the figures will be sent for review of the Jurisdictional Tax Officer who can amend the values furnished by the taxpayer wherever required.

Note: For more details, the taxpayers may check out the ‘Advisory’ section of the aforementioned functionality on their respective dashboards.

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Supreme Court has Upholded All 90,000 Notices Issued by Income Tax department after 1.4.2021 under Section 148A of IT Act. It is noteworthy that a whopping 90K plus Writ Petitions were filed in this matter. 

The Supreme Court invoked its power under Article 142 of Constitution to validate notices issued under section 148 as notices issued under section 148A. However the same shall be subject to amended provisions of section 149.

 31.5.22 is the last date to file Statement of Dividend & Interest for FY 21-22 in form 61A & Statement of reportable accounts  in 2021 in form 61-B. 

The Ministry of Finance has released a ‘Status Note’ on GST compensation to states and UT’s on 28th April, 2022 stating that Rs. 2.78 lakh crore of compensation has been released to states for the year 2020-21 and nothing is pending for this year.

CAG Provisional Empanelment status of the firm along with provisional point     score for  the year 2022-2023 will be available on the website www.care.cag.gov.in from 06.05.2022 to 17.05.2022. Representations, if any, for rectification of clerical mistakes in the online data may be sent by email at sao2ca5@cag.gov.in by 17.05.2022.

Photographs Link of Convocation held on 12th & 13th April, 2022 at Delhi. https://icainetmy.sharepoint.com/:f:/g/personal/delhiconvocation2021_icai_in/EtBgu1I1RFFIjfeT9msHNp0B_r-KbSHfEf5KMr_B4x_5eA. 

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18 April 2022 Updates

CBDT has notified new income tax return forms SAHAJ ITR-1, ITR-2, ITR-3, SUGAM ITR- 4, ITR-5, ITR-6, ITR-V and ITR- Ack, for the Financial Year 2021-22 [Assessment Year 2022-23], the ministry of finance said in a release on 1 April 2022.

CBDT notifies Section 206C(1G) [TDS on remittance through LRS exceeding 7 lakhs or overseas tour package] not to apply to individuals visiting India who are non-residents as per Section 6(1)/(1A).

GST income for the month of March was Rs. 1,42,095 crore, with CGST of Rs. 25,830 crore, SGST of Rs. 32,378 crore, IGST of Rs. 74,470 crore (including Rs. 39,131 crore collected on import of goods), and cess of Rs. 9,417 crore (including Rs. 981 crore collected on import of goods). The gross GST collection in March 2022 set a new record, surpassing the previous high of Rs. 1,40,986 crore set in January 2022.

Wef (1.4.22), issue E-invoice if turnover exceeds 20 cr in any year from 2017-18. Accounts Software with Audit Trail for Cos postponed to 1.4.2023.

Extension/ Deferment of the following Due dates:

Implementation of Audit Trail software now shall be applicable from FY commencing on or after April 1, 2023.

CSR-2 extended upto May 31, 2022.

CBDT issued Circular No. 08/2022 dated March 31, 2022 regarding the extension of timeline for electronic filing of Form No.10AB for seeking registration or approval under Section 10(23C), 12A or 80G of the Income-tax Act, 1961 to 30 September,2022.

DGFT issued Notification No. 64/2015-2020 dated March 31, 2022 to extend the validity of the existing Foreign Trade Policy (“FTP”) 2015-2020 till September 30, 2022 from March 31, 2022.

DGFT issued Public Notice No. 53/2015-2020 dated March 31, 2022 to extend the validity of the existing Hand Book of Procedures (“HBP”), 2015-20 till September 30, 2022.

National Credit Guarantee Trustee Company Limited (NCGTC) extended the Emergency Credit Line Guarantee Scheme (ECLGS) beyond March 2022, till March 2023.

Applicability of below mentioned provisions further deferred till 30/09/22 by the ICAI:

Responding to Non-Compliance with Laws and Regulations (NOCLAR) [S. 260 & 360]

Fees-Relative Size [Para 410.3 to R410.6]

Tax Services to Audit Clients [S 604]

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GST Due Date of the Month April

• 18/04/2022

 a. Due Date of CMP-08 for tax period January-March Quarter 2022

• 20/04/2022

a. GST monthly return for the month of March, 2022 (GSTR 3B) having turnover of above Rs.5

crores in the previous financial year

b. GST Monthly return for the month of March, 2022 (GSTR 5) for Non‐resident Foreign Tax

Payers.

c. GST Monthly return for the month of March, 2022 (GSTR 5A) for NRI Taxpayer & OIDAR service

provider.

• 22/04/2022

a. GST monthly return for the month of March, 2022 (GSTR 3B) for taxpayers having turnover of

up to Rs.5 crore in the previous financial year and principal place of business in some

specified 15 states.

States: ‐ Chhattisgarh, MP, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra,

Karnataka, Goa, Lakshadweep, Kerala, TN, Puducherry, Andaman and Nicobar Islands,

Telangana and Andhra Pradesh

24/04/2022

a. GST monthly return for the month of March, 2021 (GSTR 3B) for taxpayers having turnover of

up to Rs.5 crore in the previous financial year and principal place of business in other

category of specified 22 states.

States: ‐ J&K, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi,

Rajasthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura,

Meghalaya, Assam, West Bengal, Jharkhand and Odisha

• 25/04/2022

a. Date of ITC-04 for the period October-March 2022

• 30/04/2022

a. Taxpayers having Turnover below Rs 1.5 Crores shall have an option to select the frequency of

GST return i.e., Quarterly return monthly payment (QRMP) Scheme filing for FY 2022-23.

RFD-10: - Eighteen months after end of the quarter for which refund is to be claimed

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ITAT Chandigarh allowed sec. 54 under Income Tax Act relief to women who purchased a new house jointly in the name of married daughter & son-in-law. Case name Smt. Rachna Arora [2021] 131 taxmann.com 307 (Chandigarh – Trib.)

No TCS u/s 206C(1G) on sale of overseas tour packages by tour operators to non-resident individuals visiting India. Notification 20/2022 of 30.3.22. 

Negotiable Instrument Act S.138: Liability of director when Company not been made accused. Case Name : Charanjeet Singh Saini Vs Ispat India (Chhattisgarh High Court) Appeal Number : CRMP No. 1645 of 2019 Date of Judgement/Order : 21/03/2022. 

ICAI issued Guidelines for Networking of Indian CA Firms 2021 are available at ICAI website at below link: https://resource.cdn.icai.org/64061mss51444.pdf Members and Students Services Directorate

ICAI Council at its 410th Meeting held on 24th and 25th March, 2022 decided that the applicability of some provisions of Code of Ethics be further deferred for a period of six months (i.e. till 30th September, 2022) to ensure effective adoption and implementation by the membership at large. A roll out plan for these provisions will be announced suitably.

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Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore have held that the issuance of a show cause notice along with the draft assessment order is absolutely necessary before passing an order under Section 144B of the Income Tax Act. 

Indians with hidden income in the United States (US) may face legal action under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in the Financial Year '23. According to the internal action plan of the Central Board of Direct Taxes (CBDT) for FY23, persons named in global leaks may be searched, shown-caused, and prosecuted. 

Excess expenditure incurred by the trust/charitable institution in earlier assessment year could be allowed to be set off against income of subsequent years by invoking Section 11.(Favour of Assessee) CIT (Exemption) Vs. Subros Educational Society, 11.01.2022 (Supreme Court)

Expense not debited to P&L is not Justified for Disallowance U/s 40(a)(ia) – 04-04-2022. CIT Vs Shree Choudhary Transport (Rajasthan High Court)

Commissioner of State tax, Maharashtra, had issued Internal Circular No. 06A of 2022 dated March 23, 2022, regarding Instructions regarding care to be taken during revocation of cancellation of GST registration.

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TDS not deductible on Uniform Allowance given to Employees for use while on duty. Case Name : Commissioner of Income Tax (TDS) Vs Oil And Natural Gas Corporation Ltd. (Gujarat High Court)

High Court of Calcutta on 11th March 2022 in the matter of Shivaco Associates & Anr. Vs. Joint Comm of State Tax, held that a circular cannot implant any provision which is not available in the Act. The circular No. 135/2020-GST dated 31.03.2020 relied on by the respondents, is restricting the claim of the petitioners which is otherwise admissible in the Act, thus allowing the refund of the unutilized ITC on account of inverted duty structure.

SEBI came out with fresh guidelines wherein execution of a new document will be made compulsory for transfer of securities towards deliveries and settlements. The execution of the document -- Demat Debit and Pledge Instruction (DDPI) -- will also be applicable for pledging or repledging of securities. The fresh guidelines, which will be effective from July 1, also comes against the backdrop of instances of misuse of PoAs.

Update Importer Exporter Code(IEC) details online during April-June. If no changes, confirm the same online. Else IEC will be deactivated. 

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CBDT notifies e-Dispute Resolution Scheme, 2022 

The Central Board of Direct Taxes (CBDT) has notified the e-Dispute Resolution Scheme, 2022 as per which, the settlement of tax disputes involving small taxpayers to be processed entirely electronically.  The Union Finance Minister Ms. Nirmala Sitharaman, while announcing a new Dispute Resolution Committee in the union budget for FY22, said taxpayers having taxable income up to ₹five million and disputed income up to ₹one million could seek settlement under this Committee and any pending cases before the Settlement Commission would be handled by the Interim Board.   The e-Settlement scheme says that all communication between the Interim Board and taxpayers will be exclusively in electronic mode. All communications between the Interim Board and the applicant, or his authorized representative, shall be exchanged by electronic mode.  As per the notification, the Dispute Resolution Committee shall, upon receipt of proof of payment as per clause (xix) of sub-paragraph (1) of paragraph 4, grant to the person who made the application for dispute resolution under section 245MA of the Act, waiver of penalty imposable or immunity from prosecution or both under this Act in accordance with the rule 44DAC

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Supreme Court in matter of Principal Commissioner of Income Tax (Central) vs M/S. Mahagun Realtors (P) Ltd (MRPL) has held an Assessment order passed in name of the non-existent amalgamated company (MRPL) is valid.

Central Board of Indirect Taxes & Customs had issued Notification No. 19/2022- Customs -dated March 31, 2022, regarding to extend the exemption from Integrated Tax and Compensation Cess by three (03) months i.e. up to June 30, 2022, on goods imported against AA/EPCG authorizations.

GST Council will likely consider enforcing a ministerial panel’s recommendations on data analytics to tighten compliance to augment revenues. “The recommendations are about checking leakages at various points, from point of production till consumption.

Central Board of Indirect Taxes and Customs has issued Instruction No. 02/2022-GST dated March 22, 2022, regarding Standard Operating Procedure (SOP) for Scrutiny of returns for FY 2017-18 and 2018-19. Till the time a Scrutiny Module for online scrutiny of returns is made available on the CBIC-GST application, as an interim measure, the following SOP is being issued by the Board.

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⏺️The CBDT has notified the constitution of the Dispute Resolution Committee for income tax disputes under section 245MA read with section 295 of the Income Tax Act, 1961.

CBDT notifies vide Notification No. 26/2022 – (Income Tax) | Dated: 5th April, 2022.

⏺️Income Tax  Due date of filing form 10AB extended to 30th September,2022.

⏺️GST w.e.f. 1st April 2022 (FY 2022-23)

Renewal of Letter of Undertaking (LUT), in case of exports

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Those taxpayers who link their PAN with biometric Aadhaar by June 30, 2022, would be required to pay late fees of 500. Beyond that, the penalty would rise to 1,000. In order to mitigate the inconvenience to taxpayers, as per notification dated March 29, 2022, a window of opportunity has been provided to taxpayers up to March 31, 2023. 

Black money provisions cannot be invoked for minor breach of law: Mumbai ITAT. Additional Commissioner of Income Tax vs Leena Gandhi Tiwari. [TS-5399-ITAT-2022(Mumbai)-O].

ITC cannot be denied merely on the grounds that one constituent service of mixed supply attracts a Nil rate of tax: AAAR. M/s. Shree Arbuda Transport, a partnership firm, having Principal Place of Business at Plot No.51, Office No.6, Kesar Arcade, Gandhidham (Kachchh).

Exporters have started receiving notices for wrong availment of GST refund on exports. The said recovery notices run into crores of Rupees. Fact is exemption from payment of IGST has been availed by the importers at the time of import as per Advance Authorization Scheme. Exporters after consuming the said goods during manufacture have exported the final products on payment of GST during the period July 2017 to September 2018.

MCA has issued amendment to the Companies (Management and Administration) Rules, 2014, stating that Details of Address (in case of body corporate), Email ID, UIN and PAN shall not be available for inspection or for taking extract from Members Register etc. By this the misuse of members databases by many entities will be now controlled. 

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CBDT notified the procedure of inaction of PAN via a notification dated March 29, 2022, as well as a press release on March 30, 2022. The Finance Act of 2021 added a new section 234H to the Act to complete the PAN-Aadhaar connecting procedure for detecting fake PANs.

Taxpayers with taxable income up to 50 lacs & disputed income up to 10 lacs can avail e-Dispute Resolution Scheme, 2022 for settlement of tax disputes. 

Super-rich farmers will face stricter scrutiny by tax authorities, who will comb through details of agricultural income — tax-free under the law — in jurisdictions where farm income exceeds a threshold of 10 lakh a year, the finance ministry said in a response to questions to the parliamentary committee.

High Court of Gujarat in the case of Harsh Dipak Shah vs. UOI have held that the discretion to be exercised judicially by the AO. The court has further held that 20% pre-deposit for stay is not mandatory.Stay application cannot be rejected arbitrarily. AO should not act as a mere tax-gatherer but as a quasi-judicial authority vested with the power of mitigating hardship to the assessee.

Bombay High Court decided that Interest paid by builder on failure to construct flat is compensatory in nature out of preview of sec. 194A of the Income Tax Act. Sainath Rajkumar Sarode vs State of Maharashtra

Fruit-based fizzy drinks will continue drawing goods and services tax (GST) of 28 per cent along with 12 per cent compensation cess after a ruling by the Gujarat-based authority for advance ruling (AAR).

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⏺️ UDIN Updation has been enabled for Form 3CB-3CD on Income Tax Portal. Last Date to Update UDIN is April 30, 2022

⏺️ GSTN has enabled new functionality to facilitate the filing of application of advance ruling, appeal, etc. by unregistered persons on the GST portal.

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👉🏻ICSI appreciates Govt for bringing CA, CMA, CS Amendment Bill, 2021

(The Institute of Company Secretaries of India appreciates the efforts of the Government of India in bringing the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021)

👇🏻 👇🏻 👇🏻

https://bit.ly/3E1WRs0

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Government is working on an FAQ on taxation of cryptocurrencies, which will give a nuanced clarification on the applicability of income tax and GST on virtual digital assets, an official said.

US-based crypto trading firm Coinbase has temporarily disabled the option to buy cryptocurrencies using the Unified Payments Interface (UPI) in India. "Purchases with this payment method are temporarily unavailable," Coinbase's mobile application.

CAG has prepared a report on Assessments Relating to Agriculture Income which was presented in the 49th report of the Public Accounts Committee which clearly stated that the rich farmers whose agriculture income exceeds Rs 10 lakh per year limit, will face stricter scrutiny of agricultural income.

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.

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CBDT notifies Somnath Temple as a place of historic importance and a place of public worship of renown under section 80G of Income-tax Act, 1961 vide Notification No. 29/2022-Income Tax Dated: 11th April, 2022.

Commissioner of State Goods And Services Tax Department, Government of Kerala has issued Circular No.6/2022 dated April 6, 2022, regarding No detention of goods in the course of transportation on the ground of undervaluation.

The Reserve Bank of India announced a new tool to absorb excess liquidity from the system – Standing Deposit Facility (SDF). Through this new tool the central bank can absorb excess liquidity from the commercial banks, which is currently hovering at about Rs 8.5 lakh crore, without an exchange of collateral like government-backed securities (G-Secs).

The Supreme Court asked the ministry of steel to clarify its stand on lifting the ban on export of iron ore from Karnataka. While noting that there is no restriction in other parts of the country on export of iron ore, a bench took a comprehensive view of the matter and let the steel ministry file its response.

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☝️MCA has issued a report to propose modifications to 2013 Act including mandating joint audit for certain companies, auditors resignation, standardising auditors qualifications

⏺️ Relaxation of time limit for remittance of contribution upto 30th April and filing the ESI Return for period ending March 2022 till 26 May.

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👉🏻CBIC proposes mandatory GST scrutiny on quarterly basis

(CBIC has proposed mandatory GST scrutiny on a quarterly basis to enhance compliance through effective and standardised scrutiny of returns)

👇🏻 👇🏻 👇🏻

https://bit.ly/3M6sSSJ

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👉🏻CBIC proposes mandatory GST scrutiny on quarterly basis

(CBIC has proposed mandatory GST scrutiny on a quarterly basis to enhance compliance through effective and standardised scrutiny of returns)

👇🏻 👇🏻 👇🏻

https://bit.ly/3M6sSSJ

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GST: ITC in Electronic Tax Ledger be restored If Authorities Acknowledge Error and Accept Repayment of Erroneous Refund, rules Gujarat HC [Read Order]

Read More: https://www.taxscan.in/gst-itc-in-electronic-tax-ledger-be-restored-if-authorities-acknowledge-error-and-accept-repayment-of-erroneous-refund-rules-gujarat-hc/168589/

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Key amendments proposed in CA 2013, LLP Act 2008 by The Company Law Committee (2022)

I. Allowing certain companies to revert to the financial year followed in India;

II. Facilitating certain companies to communicate with their members in only electronic form;

III. Recognising issuance and holding of fractional shares, Restricted Stock Units and Stock Appreciation Rights;

IV. Easing the requirement of raising capital in distressed companies;

V. Replacing the requirement of furnishing affidavits with the filing of self certification/declaration;

VI. Clarifying the inclusion of ‘free reserves’ while determining the limit for buying back of a company's equity shares;

VII. Prohibiting companies from recording trusts on their register of members;

VIII. Allowing companies to hold general meetings in virtual, physical or hybrid modes;

IX. Creating an electronic platform for maintenance of statutory registers by companies;

X. Clarifying provisions relating to Investor Education and Protection Fund;

XI. Strengthening the National Financial Reporting Authority;

XII. Reviewing and strengthening the audit framework and introducing mechanisms to ensure the independence of auditors;

XIII. Standardising the manner for auditors to provide qualifications;

XIV. Recognising and providing an enabling framework for the constitution of Risk Management Committees;

XV. Clarifying the tenure of independent directors;

XVI. Revising provisions relating to the disqualification and vacation of the office of directors;

XVII. Clarifying the procedure for the resignation of key managerial personnel;

XVIII. Strengthening the provisions relating to mergers and amalgamations;

XIX. Easing the restoration of struck off companies by enabling the Regional Director to allow restoration of names of companies in certain instances;

XX. Recognising Special Purpose Acquisition Companies and allowing such companies, which are incorporated in India, to list on permitted exchanges;

XXI. Prohibiting the conversion of co-operative societies into a company;

XXII. Modernising enforcement and adjudication activities through electronic mode;

XXIII. Strengthening the incorporation and governance framework for Nidhis;

XXIV. Removing ambiguities from present provisions under the Companies Act, 2013 through changes of drafting & consequential nature

XXV. The incorporation of Producer Limited Liability Partnerships under the Limited Liability Partnership Act, 2008 to ease incorporation and compliance requirements for producer organisations.

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2 April 2022 Updates

Due to the non-availability of Form no. 3CF on the e-filing portal, the CBDT has allowed the applicants seeking approval under section 35(1)(ii)/(iia)/(iii) to file Form no 3CF physically. The Form can be filed manually till 30.09.2022 or till the availability of the Form for electronic filing on the e-filing website.

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ITC availed on purchases related to particular outward supply can be used against different outward supply: AAAR

 

Appellate Authority for Advance Ruling, Gujarat Aristo Bullion (P.) Ltd., In re - [2022] 136 taxmann.com 46 (AAAR-GUJARAT)

   

The appellant filed an application of advance ruling to determine whether the Input Tax Credit (ITC) legitimately earned by the appellant and lying as balance in Electronic Credit Ledger can be utilised for payment of GST on an outward supply, which has no nexus with the inputs on which the ITC has been taken. The Authority for Advance Ruling (AAR) held that ITC from purchases meant for outward supply of bullion cannot be utilized towards GST liability on castor oil seed as there is no nexus between inputs and final products. It filed appeal against the order.

   

The Appellate Authority for Advance Ruling observed that if this logic of the AAR has been adopted as a principle, taxpayers selling large number of commodities would require maintaining input tax credit accounts in respect of each commodity. However, this would not be according to law. Once a taxpayer validly takes ITC on inputs, that ITC merges into common pool of ITC under the Electronic Credit Ledger, which is not being maintained commodity wise. After merging of ITC in the common pool, it would not be always possible to identify that ITC taken on which particular input has been utilised. The section 16(1) of the CGST Act only states the eligibility and conditions for taking ITC. It does not impose any restriction on utilisation of the legitimately earned ITC. Therefore, the order of AAR was liable to be set aside

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⏺️ 30% tax on income from crytocurrencies to be applicable from April 1, TDS from July 1

⏺️ Circular 6/2022: CBDT condoned delay in filing Form 10-IC for AY 20-21 subject to conditions attached.

https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-03/Click%20Here.pdf

 ⏺️ Circular 5/2022: CBDT allowed filing of Form 3CF manually for limited period.

https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-03/Click%20Here_0.pdf

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Granting of Bail

Considering the statutory limit provided under the GGST Act & CGST Act for filing complaint as also the facts and circumstances of the case and without discussing the evidence in detail, this Court is inclined to grant regular bail to the applicant.

1️⃣ Gujarat High Court in the case of Niraj Jaidev Arya vs. State of Gujarat.

2️⃣ Conducted a search and seizure operation at the factory and office premises, residence of the applicant on the ground that several purchase transactions had been made from fictitious entities.

3️⃣ Respondent-Department has already attached immovable property belonging to the applicant in excess of the amount of alleged evasion or fraudulent claim of input tax credit.

Reference Case cited

Nimmagadda Prasad Versus C.B.I.

Sanjay Chandra Versus CBI

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Exemption is available to the applicant for the pure services

1️⃣ Maha AAR in the case of Maharashtra Ex-servicemen Corporation Ltd.(MESCO Ltd.)

2️⃣ The applicant is providing security services to various Government, PSUs, offices including various Municipal Corporations. Ques is exempted from GST?

3️⃣ Exemption  NN 12/2017 is available to the applicant for the pure services i.e. Security Services rendered to various sites of Municipal Corporations only if such pure services are supplied to the Municipal Corporations, in relation to functions entrusted to such Municipal Corporations under Article 243 W of the constitution of India.

Reference Case Cited

National Security Service Ltd

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⏺️ The CBIC issued Standard Operating Procedure (“SOP”) vide _Instruction No. 02/2022-GST dated March 22, 2022_ for scrutiny of returns for FY 2017-18 and 2018-19.

⏺️Use of Facebook for Advertising Professional Activities amount to Misconduct: ICAI Reprimands Chartered Accountant.

The Board was of the view that the members are not allowed to use the term ‘Income Tax Consultant’

⏺️The ICEGATE, CBIC has issued an advisory for e-scrip to avail export incentive schemes like Rebate of State and Central Taxes and Levies (“RoSCTL”) and Remission of Duties and Taxes on Exported Products (“RoDTEP”)

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👉🏻Parliamentary Panel pitches for ending ICAI’s statutory monopoly

(Parliament Panel Suggests Setting Up Of Indian Institutes Of Accounting)

👇🏻 👇🏻 👇🏻

https://bit.ly/3iwTzmP

👉🏻Latest Bank Branch Audit 2022 Updates

(As per information from Members, Following Banks has started sending emails which are for Existing and for New Auditors, Process is just started, check your mails on regular basis)

👇🏻 👇🏻 👇🏻

https://bit.ly/3D6lm6Y

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Opportunity to the dealer on a pre show cause notice stage

Allahabad High Court in the case of Nanhey Mal Munna Lal

1️⃣ Section 74 of the CGST Act, 2017 — Show Cause Notice Issued. The petitioner challenged the impugned notice on the ground that the statement as required under Rule 142 (1A) was not submitted by the proper officer. 

2️⃣ The counsel for the petitioner submitted that even if ITC is blocked invoking the provisions of Rules 86A of the Rules, yet a negative ITC cannot be shown otherwise it would amount to stopping the dealer from filing his return and depositing tax therewith.

3️⃣ It is further submitted that Rule 142(1A) has been amended by Notification No.79/2020 dated 15.10.2020, and in the said rules, the words “proper officer shall”, has been substituted by the words as “proper officer may” and the words “shall communicate”, the word “communicate” has been substituted.” 

4️⃣ The court observed that Section 74(1) read with Rule 142(1A) intends to afford an opportunity to the dealer/ assessee on a pre-show cause notice stage which shall ultimately benefit both, i.e the assessee and the department, and shall also reduce litigation. This also indicates to follow the principles of natural justice at a pre-show cause notice stage.

5️⃣ The Hon’ble High Court granted a week’s time to the respondent to file counter affidavit. Respondents shall also explain as to how a negative credit can be shown in the Electronic Ledger Account, while blocking Input Tax Credit. As an interim measure, the petitioner is permitted to file his return along with proof of deposit of tax for the relevant tax period for which return is being filed.

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Government (CBIC) has issued detailed guidelines for Return Scrutiny under GST for FY 2017-18 and 2018-19. Such scrutiny of Returns would be in time bound manner. Some indicative list of parameters for scrutiny have been given in the guidelines as below:

🔵  Difference in Tax Liability between GSTR-1 and GSTR-3B

🔵  RCM liability to be compared with RCM ITC availed in GSTR-3B 

🔵  RCM liability appearing in GSTR-2A and liability declared in GSTR-3B

🔵  Tax liability paid in cash in GSTR-3B should not be less than liability declared on RCM in GSTR-3B

🔵  ITC availed on ISD to be compared with IDS ITC appearing in Table 7 of GSTR-2A

🔵  All other ITC availed in GSTR-3B to be compared with ITC appearing in GSTR-2A

🔵  Outward tax liability declared in GSTR-3B should not be less than payable as TDS/TCS appearing in GSTR-2A

🔵  Comparison of liability declared in GSTR-3B with E-way Bill Report

🔵  ITC availed in respect of vendors where registration cancelled retrospectively

🔵  ITC availed in GSTR-3B where vendors not filed GSTR-3B

🔵  GSTR-3B filed after September due date- no ITC to be availed in this Return

🔵  Import of goods ITC availed in GSTR-3B to be compared with ITC appearing in GSTR-2A on import of goods

🔵  ITC reversal under Rule 42/43 viz a viz exempted supply shown in Return

🔵  Payment of Interest and Late Fees, 

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Use 📌URL- https://www.mca.gov.in

📲💡MCA login from multiple devices at the same time - Clarifications🧾

1. Only one user session per platform (Mobile app/web) will be allowed at a time. 

2. “You are already logged in from other device”

If you try to 

create a simultaneous session with the same login Id, you will not be able to do so and an error message “You are already logged in from other device” will be displayed.

3. Further, you can create one session from mobile application and one session from web simultaneously

4. In case you login from an IP address/device different from that of the previous login, you will be notified of the same via email.

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The Finance Bill (Lok Sabha) has increased the time limit for completion of assessment of assessment year 2020-21 from 12 months to 18 months. This amendment extends the time limit for completion of assessment for assessment year 2020-21, which is ending on 31-03-2022 [excluding the extension available under Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the notification issue therein, if any], to 30-09-2022. It is to be noted that the extension is for the assessment year 2020-21, and the time limit for completion of assessment for assessment years 2021-22 or 2019-20 has not been amended.

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GST Update No 166 on mismatch in quantity

 

With the introduction of GST, the Inspector Raj system is abolished and concept of E-way bill came into existence. This was done to remove the concept of check posts and roadside checking. However, till date this whole practice is not yet incorporated successfully failing which the revenue authorities take actions u/s 129 of CGST Act, 2017. One such issue came in front of Haryana High Court in the case of Raghav Metals V/s State of Haryana and Punjab. The decision imparted by the Court in the said case is subject matter of our present update. 

The petitioner a business unit registered in Delhi, purchases raw material from dealers located throughout the country and sold its product to Company located in Rajasthan. The goods were in transit and were intercepted by departmental authorities on 27.11.2021. The goods were accompanied by valid invoice and e-way bill. The petitioner argued that proceedings u/s 129 are without jurisdiction and therefore, deserves to be quashed. 

The revenue authorities issued GST MOV-07, reply of which was filed on 03.12.2021. The revenue authorities issued order u/s 129 of CGST Act, 2017 in form GST MOV-06 regarding detention of the goods. The departmental authorities contended that discrepancies as regards to mismatches in actual quantity of goods in transit and as shown in invoice and e-way bill were found of 90 kgs resulting into evasion of tax. Reliance was placed on the case of M/s. Shiv Enterprises vs. State of Punjab and others – CWP-18392- 2021. 

The Court held that from perusal of e-invoice quantity of goods consigned is 10430.7 kgs and amount of Rs. 1276717.68/- is paid as tax on consignment. However, the actual quantity was 10520 kgs. Since the difference of weight is less than 1% and tax evasion shall not be more than Rs. 11000/-, it cannot be concluded that the petitioner had any intention of evasion of tax. Therefore, mere mismatch in the quantity does not amounts to detention u/s 129 of CGST Act, 2017.

The above decision is a welcoming decision by the business houses wherein Court supported the contention that mere inadvertent mistakes should not result in detention and imposition of heavy penalties. Reliance can be placed on the case of Tripura High Court in Tirthamoyee Aluminum Products vs. State of Tripura & Ors. in Writ Petition (Civil) no. 1108 of 2018, M.R. Traders vs. Assistant State Tax Officer State of Kerala (Int) in WP(C).No.2713 OF 2020(L). Furthermore, CBIC has also issued a Circular No. 64/38/2018 dated 14.09.2018 wherein the same was clarified. The Government should issue further strict guidelines in this regard so that unwanted litigations and troubles can be avoided.  

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⏺️ E-Invoicing Limits revised to 20 Crore

CBIC made E-invoice under GST mandatory for registered persons having aggregate turnover above ₹20 crore in any of the previous years from 2017-18 till 2021-22 with effect from 01st April, 2022. The existing limit of ₹50 crores has been reduced to ₹20 crores

⏺️ MCA vide notification dated 24.03.2021 had made Amendments in Schedule III of the Companies Act, 2013, applicable from F.Y. beginning on or after 01.04.2021.

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Lok Sabha passed the Finance Bill 2022, which gives effect to new taxation, thus completing the Budgetary exercise for 2022-23 fiscal. The Finance Bill was approved by the Lower House after accepting 39 official amendments moved by the Finance Minister and rejecting the amendments proposed by the opposition by voice vote.

The Finance Minister said the retrospective amendments relating to claiming deduction for cess and surcharge is aimed at preventing misuse of the provision, especially by those who have treated it as exemptions or business expenditures. with effect from Assessment Year 2005-06. 

Partners remuneration not to be counted for the purpose of Audit U/s 44AB.  IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.1333 OF 2021  Perizad Zorabian Irani Petitioner  V/s. Principal Commissioner of Income-Tax (Central)-1 Mumbai & Ors

The Supreme Court on Friday held that a manufacturing unit — set up after requisite approvals and contributing to the economy by providing livelihood to hundreds of people — cannot be closed down for a technical irregularity of want of prior environmental clearance (EC). 

ICAI has decided that the students who are in the Old scheme stand automatically converted in the Revised Scheme of Education and Training. All such students may make requisition for study material on demand through Central Distribution System by paying Rs.1000/-.

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A snippet of some of the changes made in the Finance Bill, 2022 as passed by the Lok Sabha viz-a-viz the Finance Bill, 2022 are given below:

1) Loss from one Virtual Digital Asset (VDA) cannot be set-off against income from another VDA.

2) Definition of 'transfer' shall apply even if VDA is not held as a capital asset.

3) Section 115BBH to override all other provisions to tax income from transfer of VDA at 30%.

4) Computation provision of section 115BBH would not fail even if there is no cost of acquisition of VDA.

5) Restriction on filing of updated return in case of search, survey or requisition.

6) Return of loss filed under section 139(3) can also be updated.

7) Recomputation of income due to disallowance of surcharge/cess.

8) Clarificatory amendment on taxation of long-term capital gains referred to in Section 112A for non-resident.

9) Cancellation provisions extended for provisionally approved institutions.

10) Restriction on the simultaneous benefit of Section 10(23C) and Section 10(46).

11) No exemption if a person as referred to in section 13(3) receives gifts from trust.

12) Provider of benefit or perquisite has to “ensure that tax required to be deducted has been deducted”.

13) Books of accounts include books maintained/kept in electronic or digital form.

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FCRA registration of NGOs by 3 months till 30.06.2022. The Ministry of Home Affairs has extended the validity of the FCRA registration of NGOs by 3 months till 30.06.2022.

SEBI has proposed changes to the mechanism for determining open offer price with respect to disinvestment of public sector undertakings. Issuing a consultation paper on review of the determination of offer price in case of disinvestment of public sector undertakings (PSUs). 

ICAI Convocation, which was originally scheduled in January 2022 at New Delhi and was subsequently postponed, will now be held on 12th and 13th  April 2022. Members who have been enrolled during the period from November 2019 to August 2021 and Rank holders of CA Final Examination held in July 2021 will be awarded Certificate of Membership at Hotel Leela, Shahdara, Delhi. 

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👉🏻India loses Rs 100 crore to bank fraud every day over past 7 years - RBI

(India lost at least Rs 100 crore every day to bank fraud or scams over the past seven years, although there was a year-on-year reduction in the total amount involved, according to RBI data)

👇🏻 👇🏻 👇🏻

https://bit.ly/3tQri0W

👉🏻Bank Branch Audit 2022 Updates

(After two day's Strike, Banks will resume the process of Bank Branch Audit, if you have any news about the bank branch audit process, plz share at whatsapp no. of CA Sansaar #8285393786. Click on link for more details)

👇🏻 👇🏻 👇🏻

https://bit.ly/3io2h6M

👉🏻Application Invited For Concurrent Audit of Operations of TIIC Branches 

(RFP for Concurrent Audit of Operations of TIIC Branches (8) At Various Locations)

👇🏻 👇🏻 👇🏻

https://bit.ly/3wNYurW

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Notification No. 16/2015-2020 Dated August 9th, 2021

An IEC holder has to ensure that details in its IEC are updated electronically every year, during April-June period. In cases where there are no changes in IEC details same also needs to be confirmed online.

For FY 2022-23 it will be during April-June period ?

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CBDT introduces Artificial Intelligence in Re-Assessments: Notifies E-Assessment of Income Escaping Assessment Scheme, 2022 [Read Notification]

Read More: https://www.taxscan.in/cbdt-introduces-artificial-intelliegnce-in-re-assessments-notifies-e-assessment-of-income-escaping-assessment-scheme-2022/164824/

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CBDT introduces Artificial Intelligence in Re-Assessments: Notifies E-Assessment of Income Escaping Assessment Scheme, 2022 [Read Notification]

Read More: https://www.taxscan.in/cbdt-introduces-artificial-intelliegnce-in-re-assessments-notifies-e-assessment-of-income-escaping-assessment-scheme-2022/164824/

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Rs. 500 and Rs. 1000 Fine on Failure to Link Aadhaar with Prescribed Authority within Due Date: CBDT [Read Notification]

Read More: https://www.taxscan.in/rs-500-and-rs-1000-fine-on-failure-to-link-aadhaar-with-prescribed-authority-within-due-date-cbdt/164849/

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Amendment to the provisions of Income-tax Rules, 1962 for prescribing fees under section 234H of the Income-tax Act, 1961

👉Under the provisions of the Income-tax Act, 1961 (“the Act”), every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2022. On failure to do so, his PAN shall become inoperative and all procedures in which PAN is required shall be halted. The PAN can be made operative again upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee.

👉In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March, 2022, a window of opportunity has been provided to the taxpayers upto 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs. 500 up to three months from 1st April, 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar.

👉However, till 31st March, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc. A detailed Circular No.7/2022 dated 30.03.2022 has also been issued in this regard.

👉After 31st March, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.

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👉🏻SEBI clarifies on new norms for related party transactions

(The regulator said listed companies need not seek fresh approval from the shareholders for a related party transaction (RPT) that has been approved by the audit committee and shareholders till March 31)

👇🏻 👇🏻 👇🏻

https://bit.ly/3tS0YDC

👉🏻Bank Branch Audit 2022 - Update on allotment of Branches

(RBI has approved the Bank Branch Audit Panel and many Banks start sending mails for allotment of Branches, Click on the link for more details)

👇🏻 👇🏻 👇🏻

https://bit.ly/3D6lm6Y

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CBDT extends time line under Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) vide Notification No. 16/2022 Income Tax, [S.O. 1440(E)] dated: 28th March, 2022 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) New Delhi, the 28th March, 2022 Notification No. 16/2022 Income Tax S.O. 1440(E).

SEBI has decided to enhance the net worth criteria and track record requirements for entities managing collective  schemes. The regulator has also approved changes to listing obligations and disclosure requirement regulations for simplification of procedure for transmission of securities.

Government has received a total of 239 applications under the Production Linked Incentive (PLI) scheme for bulk drugs and 49 of them have been approved till now, the Rajya Sabha was informed. 

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🌺 MCA Update 31.03.2022

⛳ Audit Trail to be Applicable from: 01.04.2023

🎯 CSR 2 Extension till 31.05.2022

🪔For more info, please follow the below link:

Companies (Accounts) Second Amendment Rules, 2022-reg

https://www.mca.gov.in/bin/dms/getdocument?mds=IzW7fqstVJYuFz6gHMSkKw%253D%253D&type=open

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( Form 10AB)

Due date of electronic filing of form 10AB for seeking registration/approval under section 10(23C), 12A and 80G extended to 30th September,2022.

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⏺️ MCA CSR 2 Extension till 31.05.2022

Companies (Accounts) Second Amendment Rules, 2022-reg

https://www.mca.gov.in/content/mca/global/en/home.html

✅ CSR-2 extended upto  May 31, 2022.

✅ The CBDT issued Circular No. 08/2022 dated March 31, 2022 regarding the extension of timeline for electronic filing of Form No.10AB for seeking registration or approval under Section 10(23C), 12A or 80G of the Income-tax Act, 1961 to 30 September,2022.

✅ The DGFT issued Notification No. 64/2015-2020 dated March 31, 2022 to extend the validity of the existing Foreign Trade Policy (“FTP”) 2015-2020 till September 30, 2022  from March 31, 2022.

✅ The DGFT issued Public Notice No. 53/2015-2020 dated March 31, 2022 to extend the validity of the existing Hand Book of Procedures (“HBP”), 2015-20 till September 30, 2022.

✅ The National Credit Guarantee Trustee Company Limited (NCGTC) extended the Emergency Credit Line Guarantee Scheme (ECLGS) beyond March 2022, till March 2023.

✅ Applicability of below mentioned provisions further deferred till 30/09/22 by the ICAI

👉 1. Responding to Non-Compliance with Laws and Regulations (NOCLAR)

[S. 260 & 360]

👉 2. Fees-Relative Size

[Para 410.3 to R410.6]

👉 3. Tax Services to Audit Clients

[S 604] 

✅ CBDT notifies Section 206C(1G) [TDS on remittance through LRS exceeding 7 lakhs or overseas tour package] not to apply to individuals visiting India who are non-residents as per Section 6(1)/(1A).

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CBDT notifies New Income Tax Return Forms 1 to 5 for Assessment Year 2022-23 [Read Notification] 

Read More: https://www.taxscan.in/cbdt-notifies-new-income-tax-return-forms-1-to-5-for-assessment-year-2022-23/165504/

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There are many changes in the income tax rules effective from the next financial year. Income tax on crypto assets, filing of updated returns, new tax rules on EPF interest, and tax relief on Covid-19 treatment are some of the major changes effective from 1 April 2022. The crypto asset tax regime in India will gradually roll out in the financial year starting April 1. Provisions on the 30% tax will be effective at the start of the fiscal year while those related to the 1% TDS will come into effect from July 1, 2022.

Income Tax  Due date of filing form 10AB extended to 30th September,2022.

GST Major points to be taken care of w.e.f. 1st April 2022 (FY 2022-23) :1. New series of Tax Invoices, Bill of Supply, Challans, Debit Notes, Credit Notes, Self Invoices, Receipt Vouchers, Payment Vouchers etc. 2. Mandatory E-invoicing w.e.f. 1st April 2022, if turnover exceeds INR 20 crores in any of previous years. 3. Renewal of Letter of Undertaking (LUT), in case of exports

Delhi High Court issued Notice to the GST Authorities  on challenge to Rule 21A of CGST Rules being  violative of Article 19(1)(g) of the Constitution of India and directed to remove the Suspension immediately. 

MCA Further Extended the Mandatory Accounting Software with Recording Audit Trail for Companies and Auditor's Responsibility, Reporting Requirements  from  01st April 2023. 

MCA extends Filing of Form CSR 2 for FY 2020-21 to 31.5.2022. 

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📌 GST Rate of Bricks Increased

👉 CBIC has issued new notification for increasing the GST rate of bricks. With Effect from 01st April 2022, the GST rate on the following bricks has been increased to 12% with Input Tax Credit or 6% without Input Tax Credit

-> Fly ash bricks or fly ash aggregate with 90 % or more fly ash content; Fly ash blocks

-> Bricks of fossil meals or similar siliceous earths

-> Building bricks

-> Earthen or roofing tiles

Source: Notification No. 01/2022-Central Tax (Rate) and Notification No. 02/2022-Central Tax (Rate)

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12% GST applicable on Cramp Comfort Patch used by Women during Menstruation: AAR [Read Order]

Read More: https://www.taxscan.in/12-gst-applicable-on-cramp-comfort-patch-used-by-women-during-menstruation-aar/165593/

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GST collections in March 2022 are at an all-time high of ₹1.42 lakh cr, breaching earlier record of ₹1.40 lakh cr collected in the Month of January 2022

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👉🏻Deferment of certain provisions of Volume-I of Revised Code of Ethics, 2019 - ICAI

(Applicability of  NOCLAR, Fees - Relative Size, Tax Services to Audit Clients provisions be further deferred for a period of six months (i.e. till 30th September, 2022)

👇🏻 👇🏻 👇🏻

https://bit.ly/3Lwu5Cn

👉🏻CBDT notifies ITR forms for AY 2022-23

(CBDT notifies ITR forms for AY 2022-23, Click on the link and Download)

👇🏻 👇🏻 👇🏻

https://bit.ly/3LxjM13

👉🏻Bank Branch Audit 2022 - Update on allotment of Branches

(Many Banks start sending mails for allotment of Branches, Check your mail on regular basis and Click on the link for more details)

👇🏻 👇🏻 👇🏻

https://bit.ly/3D6lm6Y

👉🏻CBDT notifies ITR forms for AY 2022-23

(CBDT notifies ITR forms for AY 2022-23, Click on the link and Download)

👇🏻 👇🏻 👇🏻

https://bit.ly/3LxjM13

👉🏻Bank Branch Audit 2022 - Update on allotment of Branches

(Many Banks start sending mails for allotment of Branches, Check your mail on regular basis and Click on the link for more details)

👇🏻 👇🏻 👇🏻

https://bit.ly/3D6lm6Y

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📲 Download my official Android app "Updates by CARJ" 📚 to stay connected with latest news and updates 📝

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

Thanks for reading

20 March 2022 Updates

⏺️ Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances Dated October 01, 2021

https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=12171&Mode=0

⏺️ RBI issued one more clarification circular on IRAC norms pertaining to Advances - 

RBI/2021-2022/158

DOR.STR.REC.85/21.04.048/2021-22

February 15, 2022

https://m.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx

⏺️ ICAI Bank Audit Guidance Note 2022 edition including Relevant Master Circulars issued by RBI

https://www.icai.org/post/guidance-note-on-audit-of-banks-2022-edition

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Delhi Govt. issued guidelines for unblocking of ITC on expiry of 1 year from the date of blocking

1️⃣ The Department of Trade & Taxes, Government of N.C.T. of Delhi issued guidelines vide F.3(429)/GST/Policy/2022/1067-1072 dated March 08, 2022 regarding unblocking of ITC on expiry of one year from the date of blocking.

2️⃣ Rule 86A(3) stipulates that the ITC so blocked shall cease to have effect after the expiry of a period of one year from the date of blocking in case no action has been taken by the officers.

3️⃣ GSTN to introduce the functionality of automatically unblocking of such ITCs, which may result in such ITC becoming available to the taxpayers for utilisation.

4️⃣ An immediate field visit of all such GSTINs whose credit have been blocked, be conducted.

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👉 Online Examination of the 'Certificate Course on Indian Accounting Standards (Ind AS)' to be held on 24th April 2022 

https://resource.cdn.icai.org/69628asb100322.pdf

👉 Enhanced Registration application user interface (UI)

https://www.gst.gov.in/newsandupdates/read/530

👉 CBIC notified the foreign currency exchange rates for Imports and Exports

https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2022/cs-nt2022/csnt10-2022.pdf

👉 Govt appoints ex-finance secretary Ajay Bhushan Pandey as NFRA chief for a period of three years.

https://www.news18.com/news/india/govt-appoints-ex-finance-secretary-ajay-bhushan-pandey-as-nfra-chief-4862378.html

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👉🏻CVC recommends Special CAG Audit of ICAI’s books

(The recommendations came after CVC was asked to examine complaints of alleged financial irregularities in the institute in the years 2019-20 and 2020-21)

👇🏻 👇🏻 👇🏻

https://bit.ly/3J8yc6O

👉🏻Prudential (IRAC) Norms on Advances and Clarifications in Bank Branch Audit

(NPA Identification & Classification as per IRAC Norms in Bank Branch Audit | Prudential (IRAC) Norms discussed by CA. Vivek Khurana)

👇🏻 👇🏻 👇🏻

https://youtu.be/t5CkgTRFxu0 

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📜Major MCA Update : DSc

Ministry Back with old Associate DSC option

MCA Associate DSC Link💡👇👇

https://www.mca.gov.in/mcafoportal/showAssociateDSC.do

✅ The CBIC issued Circular No.169/01/2022-GST dated March 12, 2022 regarding the amendment to Circular No. 31/05/2018-GST, dated February 09, 2018 on ‘Proper officer under sections 73 and 74 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”)* and under the Integrated Goods and Services Tax Act, 2017 *(“the IGST Act”)'.

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Some tips for current MCA Filing:

1. MCA site is crashing in Google Chrome

2. Please use internet explorer or Firefox

3. Associate DSC is working with few glitches

4. If any error is there please raise tickets immediately

5. In case challan problems - file form then go to track SRN and enter the SRN and download the challan copies - working fine in explorer and Firefox

6. Update Java and use latest version of emsigner/embridge

7. Please create additional Account for emergency purpose.

8. If unable to login in 2 attempts, wait for 20 minutes atleast and then login otherwise Id may get blocked for 2 hours.

9. Clear history, temp files on frequent basis.

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Income Tax dept reopening old tax assessments based on new algorithm tax assessments

Tax Assessments: Many people wait for their ITR refunds, the Income Tax Department has begun using an algorithm to reopen old assessment cases. The Income Tax Department is utilizing ‘INSIGHT,’ a platform that spits out the names of tax evaders after sifting through massive amounts of data.

 

Tax officials now take action based on the name generated by the platform, according to the new rule. Previously, tax officials reopened old tax assessments based on information that the assessee may have tried to conceal some income-related information.

The names are chosen at random. It’s possible that tax evasion took place four years ago, and already have evidence in the form of an income tax return. The INSIGHT system is also dependent on the information to be uploaded in order to throw up a name.

After being tipped by the algorithm, the I-T Department is required to send a preliminary notice to the concerned taxpayer under the newly created Section 148A of the I-T Act, informing him or her that his or her information has been flagged for a specific financial year. The system involves informing the assessee that their profile has been flagged as a “high-risk VRU (variable report upload)” under the “risk management system” by the Directorate of Income Tax (Systems), in accordance with the “risk management strategy” developed by the Central Board of Direct Taxes. After that, the taxpayer has one week to respond, after which the case will be automatically reopened.

If the new algorithm generates enough names, the I-T department can issue as many as 50,000 letters under section 148A in the Mumbai region alone, which accounts for 30% of all I-T collections.

Tax experts praised the move to give taxpayers a chance to explain themselves; they added that if the assessee responds satisfactorily, the case may not be reopened. Since, earlier cases were reopened without the taxpayer’s knowledge.

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⏺️Re-schedulement of Foundation Course Examination, May 2022 -

Starting date is now 24th June.

⏺️Employees' Provident Fund EPFO interest rate for 2021-22 slashed from 8.5% to 8.1%.

⏺️CBDT releases Detailed Circular regarding TDS and Income Tax Deduction on Salaries for AY 2021-22.

⏺️Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances Dated October 01, 2021

https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=12171&Mode=0

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👉🏻Banks Board Bureau shortlists MDs for four public sector banks

(BBB has identified managing directors for four lenders – Union Bank of India, Indian Overseas Bank, Punjab & Sind Bank and State Bank of India)

👇🏻 👇🏻 👇🏻

https://bit.ly/3MUKodV

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The CBDT issued Order vide F. No. 187/3/2020-ITA -I dated March 17, 2022  under section 119 of Income-tax Act, 1961 (“the IT Act”) providing exclusions to section 144B of the IT Act.

In partial modification of Order under section 119 of the Income-tax Act, 1961 (the Act) by F.No.187/3/2020-ITA-1 dated March 31, 2021 as modified by orders of even number dated September 06 2021, September 22, 2021 and December 16, 2021, the Central Board of Direct Taxes (the Board) in exercise of powers under section 119 of the Act, hereby directs that in addition to the exceptions as provided in the said orders, the following exception is hereby added as under:

vi. Assessment orders in all cases for which the time limit for completion expires on  March 31, 2022 pending with the jurisdictional Assessing Officer as on March 15, 2022 or thereafter, which cannot be completed as per the procedure laid down under Section 144B of the Act due to technical procedural constraints in the given period of limitation.

Accordingly, the Board clarifies that assessment in cases at (vi) above shall be completed by the jurisdictional Assessing Officer.

The Board further reiterates that the exception at (vi) above is applicable only to the cases for which the time limit for completion expires on March 31, 2022.

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🌺 Relief for Taxpayers who have not filed Form 10-IC for AY 2020-21

👉CBDT has issued general circular condoning delay in filing form 10-IC for Asstt year 2020-21 to *claim concessional rate of tax of 22% under section 115BAA of the Act

👉Now this form can be filed up to 30.6.2022

👉Many companies though have opted for new lower rate of 22% tax in AY 2020-21 but has not filed this form which was statutory requirement to switch over to new rate. While processing return of AY 2020-21, huge demands were created as higher rate of 30% was applied in processing. This will be a big relief

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This is a very recent decision by Allahabad HC (DB) which elaborately discusses the meaning of issuance/electronic issuance of notice under Income Tax Act with reference to Information Technology Act, 2000. 

I found it interesting and relevant for GST also. The correct understanding of meaning of "issuance" might help assessee(s) to challenge the validity of notice on the ground of limitation.

Held that "the  point  of  time  when  a digitally  signed  notice  in  the  form  of  electronic  record  is  entered  in computer  resources  outside  the  control  of  the  originator  i.e.  the assessing  authority  that  shall  the  date  and  time  of  issuance  of  notice under  section 148 read with Section 149 of  the Income Tax Act, 1961. "

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👉 Circular 6/2022: CBDT condoned delay in filing Form 10-IC for AY 20-21 subject to conditions attached.

https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-03/Click%20Here.pdf

 👉 Circular 5/2022: CBDT allowed filing of Form 3CF manually for limited period. 

https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-03/Click%20Here_0.pdf

👉 Banks in India may face headwinds from Russia-Ukraine crisis: S&P

https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-in-india-may-face-headwinds-from-russia-ukraine-crisis-sp/articleshow/90265065.cms

👉 Fewer EMI bounces point to drop in loan defaults

https://economictimes.indiatimes.com/industry/banking/finance/banking/fewer-emi-bounces-point-to-drop-in-loan-defaults/articleshow/90283489.cms

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