26 June 2022 Updates

CBDT vide Circular No. 13/2022 dated 22.06.2022 has issued guidelines to remove practical difficulties that may arise while deducting tax at source under section 194S where Virtual Digital Asset (VDAs) are transferred on or through an exchange.

A new TDS requirement u/s 194R has been introduced w.e.f July 1, 2022. This TDS applies on freebies provided in connection with business/profession. 

Assessing Officer can not make additions under section 69 on basis of an uncertified copy of an agreement to sell. Smt. Gurjeet Kaur v. ITO (2022) 139 taxmann.com 192 (ITAT Amritsar)]

Commodity Derivatives Trading loss can be Set Off against Regular Business Income under Income Tax Act. Case Name : Ramesh Verma Vs ACIT (ITAT Lucknow). 

Govt. has further extended the validity of FCRA registration certificates up to 30.09.2022 or till the date of disposal of the renewal application, whichever is earlier. The validity of certificates has been extended for those entities whose validity was earlier extended till 30.06.2022. Also, validity of those FCRA entities whose 5 years validity period is expiring between 01.07.2022 to 30.09.2022 and who have applied for renewal stands extended to 30.09.2022. [PUBLIC NOTICE NO. II/21022/23/(22)/2020-FCRA-III, Dated 22.06.2022]

30 June is last day to file DPT-3, LLP-11, GSTR-4 for 21-22, 26QAA for March quarter, MBP-1, updation of UDINs at e-filing portal & demat/trading a/cs KYC. 

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Delhi High Court quashes Income Tax Order passed after giving mere 3 days to reply to Show Cause Notice. Case Name : Shubham Thakral Vs ITO (Delhi High Court) Appeal Number : W.P.(C) 9293/2022 Date of Judgement/Order : 03/06/2022. 

Changes in Form 26Q wef 1.7.2022 due to sections 194R & 194S. Deposit TDS u/s 194S by 30th of next month in Form 26QE & issue Form 16E in 15 days. 

Income Tax Section 68 addition justified if creditors absconding & could not be produced before the Assessing Officer. Case Name : ITO Vs Shreeji Multitrade Pvt. Ltd. (ITAT Mumbai). 

Section 148 Income Tax assessment reopening notice against dead person is invalid. Case Name : Neelam Dhingra Vs DCIT (ITAT Delhi) Appeal Number : I.T.A. No. 4725/DEL/2017. 

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The Search for Happiness is the main reason for Unhappiness. ACCEPT Life as it Comes, You will find Happiness in Every Moment. 

Delhi ITAT allows Assessee’s appeal, holds Assessee not liable for deduction of tax at source on development charges paid to Directorate of Town and Country planning;– [Satya Developers (P) Ltd. v. JCIT – Date of Judgement : 07.06.2022 (ITAT Delhi)]

Central Board of Indirect Taxes & Customs had issued Notification No. 08/2022-Central Tax dated June 7, 2022, regarding providing a waiver of interest for specified electronic commerce operators for specified tax periods.

 

GST on Interest Income of Individual & inclusion in aggregate turnover. ADVANCE RULING CASES AAR NO: KAR ADRG 30/2020 – DT: 04.05.2020 – M/S. ANILKUMAR AGARWAL. 

Commissioner of Commercial Taxes, Government of Karnataka has issued Circular GST No. 01/2022-23 dated June 2, 2022, regarding revocation of cancelled GSTIN beyond 90 days based on Appeal order / High Court orders.

Punjab & Sind Bank invites online application for Concurrent Audit Assignments. The tenure of audit would be initially for one year and may be extended for a further period of TWO years subject to satisfactory performance. However, after having conducted a concurrent audit for THREE years continuously, the concerned CCA will be given one year break before reappointing them.

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✅ Income Tax - Compliance Check Functionality for Section 206A8 & 206CCA of Income Tax Act 1961

(Ref : Higher TDS/TCS Rate, If ITR not Filed upto the Time Limit Provided U/s 139(1)

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✅ CBDT will release a list of frequently asked questions (FAQ) on cryptocurrency tax before July 1.

Cryptocurrencies are clubbed under virtual digital assets (VDAs) in India. From April 1st, income from VDA transactions attract 30% tax and 1% TDS although cryptocurrencies are still unregulated in India.

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CBDT, vide Office Order dated 10.06.2022 directs that, until the date on which National Faceless Penalty Centre/ Penalty Units/ Penalty Review Units under Faceless Penalty Scheme, 2021 are set up, the National Faceless Assessment Centre / Assessment Units/ Review Units (NaFAC/ AUs/ RUs), set up under Section 144B(3) will also act as the National Faceless Penalty Centre/ Penalty Units/ Penalty Review Units respectively. 

ITR last date of filing for the financial year 2021-22 is July 31, 2022. Until, FY 2019-20 if a taxpayer missed the ITR filing deadline, the maximum penalty he/she had to shell out was Rs 10, 000. However, with effect from FY 2020-21 (AY 2021-22) i.e., last year, the penalty amount has been reduced by half, i.e., a maximum penalty of up to Rs 5,000.

CBDT’s FT&TR Division issues Updated Guidance on Mutual Agreement Procedure (MAP) to address stakeholders’ queries pursuant to the issuance of MAP Guidance dated 07.08.2020; The Updated Guidance brings clarity on interplay between Vivad se Vishwas Scheme and MAP. 

ITAT Pune held that If the original grounds for reopening the reassessment do not exist any longer and no additions were ultimately made on that account, the additions in respect of other items cannot be made. Case Meenakshi Dhanaji Patil, Vs. ITO, Kolhapur.

High Court of Calcutta vide its order dated 12.05.2022 in the matter of Assistant Commissioner, State Tax, Durgapore Range, Government of West Bengal Vs. Ashok Kumar Surekha, Proprietor of Shubam Steel in MAT 470 of 2022 With I.A. No. CAN 1 of 2022, considering the bonafide act of the respondent/writ petitioner held that there is no attempt to evade payment of tax and upheld the order of writ court.

Ministry of Corporate Affairs Secretary Rajesh Verma said,”We need to see what more needs to be done to strengthen NFRA to enable it to discharge its duties effectively” as well as strengthen the mandates of protecting the public interests.

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The calcutta HC has reversed the ITAT order and confirmed the addition of penny stock in 90 cases through the above order.  While doing so the HC has dealt with every objection of assessee in 150 page order. 

The crux is that once the department has investigated the companies and found them to be engaged in bogus transactions through brokers and other intermediaries, the onus is on the assessee to prove that his transaction is genuine by countering the said report. Merely producing demat statement and share purchase details and broker note is insufficient. This decision will have a far reaching adverse impact for assessee in all penny stock matters.

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CBDT. vide Circular No. 12/2022 dated 16.06.2022, issues guidelines for removing difficulties on implementation of Section 194R On guidelines on deduction of tax at source under. 

ITR 5 is also now available for efiling. Excel offline Utility for preparing and filing ITR 5 is released. Please click Downloads | Income Tax Department to access and download the same. Once prepared, you can upload the JSON at the Income-tax website.

Net direct tax collections, which include income tax and corporate tax, reached Rs 2.58 lakh crore as of June 14 in financial year 2022-23 against Rs 1.86 lakh crore YoY, reigniting hopes of sustained economic recovery, despite inflationary concerns and the disruption caused by geopolitical tensions.

Notice under GST Rule 68 to be issued electronically or through post. Case Name : Jabir Hasan Vs Assistant Commissioner of State Tax GST (Uttarakhand High Court). 

It is not disputed that Rule 68 of Central Goods and Services Tax Rules, 2017 provides for notice to the non-filers of returns – a notice in form GSTR – 3A shall be issued electronically to a registered person who fails to furnish return under Section 39 or Section 44 of Section 45 or Section 52.

Central Board of Indirect Taxes and Customs (CBIC) has issued a detailed procedure for sanction, post-audit, and review of refund claims under Goods and Services tax, in the light of the receipt of reports of different practices being followed by the officers, creating confusion for taxpayers.

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MCA is set to launch _random electronic scrutiny_of corporate filing later this year.

There will be stratified random sampling of the returns. The computer driven scrutiny will be similar to the one that will be taken by the income tax department that takes few returns.

Scrutiny work will begin earlier, version 3 of MCA21 with a system of RED Flags.

Red flags system will include

Frequent resignation by Auditors or directors

Companies with Low paid up capital but with high turnover

High related party transactions

Govt. Is now seeking to improve oversight as well as compliance.

The new module will immediately send out an alert to the companies if they miss the deadline for filing returns or other compliances.

Non fillers will be tracked and prodded to file.

MCA is moving to pre filling (Pre field) And auto filing regime for returns.

A Web based form is being implemented replacing the current system of filing. Nearly 90% prefilling will happen.

Key focus is to improve compliance and make life easy for businesses including through decriminalization of laws.

Improvement in compliance rate in the last few years.Burden on small cos. Will be reduced. Small category cos. defined in budget :-Paid up capital of Rs.2 Cr. & Turnover of Rs.20 Cr.

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No IGST is leviable on ocean freight, for services provided by a person, located in a non taxable territory, by way of transportation of goods on a vessel from a place outside India up to Customs station of clearance in India

1. CALCUTTA HIGH COURT in the case of Union of India, IVL Dhunseri Petrochem Industries Pvt. Ltd.

V/s MCPI Private Limited, Adani Wilmar Limited decided.

2. Hon’ble Supreme Court in Union of India and Anr. Vs. M/s. Mohit Minerals Pvt. Ltd. and ors. has affirmed the decision of the High Court of Gujarat. In the writ petition filed by the respondent was declared to be unconstitutional.

3. Hon’ble Supreme Court while agreeing with the view taken by the High Court held to the extent that a tax on the supply of a service, which has already been included by the legislation as a tax on the composite supply of goods, cannot be allowed.

Reference Case Cited

MCPI Pvt. Ltd. Versus Union of India (Calcutta)

Mohit Minerals Pvt. Ltd. Versus Union of India (Gujarat)

Union of India Versus Mohit Minerals Pvt. Ltd. (SC) 

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👉ICAI  Announcement -launch of , certificate course in Indian accounting standards (ind As), (online batch 35)- (16-06-2022).

https://resource.cdn.icai.org/70728asb56696.pdf

👉processing of e-mandates for recurring transaction .

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12341&Mode=0

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✅ Procedure relating to sanction, post-audit and review of refund claims

The Board has issued Instruction No. 03/2022 – GST dt. 14.06.2022 for sanction, post-audit and review of refund claims to ensure uniformity in procedure and enabling effective monitoring of sanction of refund claims.

✅ GSTN has issued advisory on availing ITC as per law and GSTR-2B - For some of the taxpayers, there was an issue in relation to *duplicate entries in GSTR-2B which has since been fixed and correct GSTR-2B has been generated.* In this regard, taxpayers while filing GSTR-3B are advised to check and ensure that the value of ITC they are availing is correct as per the law.

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10 common TDS sections applicable to Audited Resident Individual Assesee

1. Section 192: Payment of salary

2. Section 194A: Income by way of interest other than "Interest on securities"

3. Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

4. Section 194C: Payment to contractor/sub-contractor

5. Section 194H: Commission or brokerage

6. Section 194-I: Rent of a) Plant & Machinery & b) Land or building or furniture or fitting

7. Section 194-IA: Payment on transfer of certain immovable property other than agricultural land

8. Section 194J: Fees for professional or technical services:

9. Section 194Q: Payment for purchase of goods of the aggregate value exceeding Rs. 50 lakhs

10. Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000(w.e.f.01 july 2022)

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Finance Act, 2022 has inserted new Section 194R in Chapter XVII-B of the Income Tax Act, 1961 for TDS on benefit or perquisite provided to a resident, by a person, arising from business or in exercise of profession. In exercise of power u/s 194R(2), CBDT has issued guidelines vide Circular No. 12 of 2022 dated 16.6.2022.

CBDT issued detailed guidelines on deduction of tax at source under Section 194R of the Income Tax Act. It requires deduction of TDS at the rate of 10% by any person providing any benefit or perquisite, exceeding 20,000 in a year to a resident.

Direct tax collections between April and mid-June jumped 45 per cent to over Rs 3.39 lakh crore. The improved collections are mainly due to a 47 per cent growth in TDS mop-up and a 33 per cent rise in advance tax realisation for April-June quarter.

GST officials to upload speaking order with Refund order GST RFD-06. Post-Audit in 3 months for claims above 1 Lac. Instruction 03/2022-GST of 14 Jun.

A group of ministers (GoM) reviewing the Goods and Services Tax (GST) rates has decided to remove exemption for packaged food items, if sold under unregistered brands. These items will be taxed at 5%, the rate for branded food.

Central Board of Indirect Taxes & Customs had issued Instruction No. 03/2022-GST dated June 14, 2022, regarding procedure relating to sanction, post-audit and review of refund claims.

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👉🏻400 Chartered Accountants, Company Secretaries under scanner for helping Chinese firms

(Central Govt has recommended disciplinary action against 400 Chartered Accountants & Company Secretaries for their alleged role in incorporating Chinese shell companies in metropolitan cities by flouting norms and rules)

👇🏻 👇🏻 👇🏻

https://bit.ly/39D9W0k

👉🏻Whether an Auditor can Write / Maintain Books of Account for Auditee Clients (Corporate / Non Corporate)?

👇🏻 👇🏻 👇🏻

https://youtube.com/shorts/hUqfaWHn_QM

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CBDT to initiate strict action against officials for slapping notices on taxpayers without following procedures, or cross-checking facts. 

Guidelines for removal of difficulties u/s 194R(2) for TDS on perquisites provided to a person other than employee. Circular 12 of 2022 of 16.6.22.

Supreme Court declines to interfere with the dismissal of Assessee's writ petition by the Punjab & Haryana High Court against reassessment proceeding under the new regime; [GIAN Castings (P) Ltd. v. CBDT & Ors – Date of Judgement : 17.06.2022 (SC)]

Employees cannot Be Permitted to Change Date of Birth after 5 years of Govt service. Case Name : Ugrasen Sahu Vs State of Odisha (Orissa High Court) Appeal Number : W.P.(C) No. 12015 of 2022 Date of Judgement/Order : 27/05/2022

RBI issued Master Direction for Credit Card and Debit Card Issuance and Conduct Directions, 2022 (“Master Direction”) dated April 21, 2022, wherein the Reserve Bank had prescribed a timeline of July 01, 2022, for implementation of the provisions of the Master Direction.

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CBDT vide notification Number 67/2022/F. No. 370142/23/2022-TPL dated 21st June 2022 has notified TDS Return Form (Form 26QE) and TDS Certificate (Form 16E) for Crypto Transactions.

Section 154 cannot be invoked for Applicability of section 14A to section 115JB provisions Under Income Tax Act. Case Name : DCIT Vs Jammu Pigments Ltd. (ITAT Delhi) Appeal Number : ITA No. 7080/Del/2019 Date of Judgement/Order : 31/05/2022

Wef 1.8.22, new mutual fund investors to choose nomination or explicit opting-out. Existing ones to do so by 31.3.23, else no withdrawal wef 1.4.23. 

Section. 138 of Negotiable Instrument Act: Mere Undisputed Signatures on Cheque Not Sufficient For Conviction. Case Name : Parveen Mehta Vs Vishal Joshi (Punjab & Haryana High Court). 



Dear Member,  Participate in revamping the Scheme of Education and Training by filling your response at https://boscret.icai.org/

Team BOS, ICAI. 

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.👉🏻NFRA finds EY arm SRBC's appointment as Auditor of IL&FS illegal

(NFRA said, Initial appointment & continuation of SRBC & Co LLP as statutory auditor of IL&FS was violative of the norms of independence as its network (Ernst & Young Global Ltd./EY) provided prohibited services to IL&FS group & also had a business relationship with Auditee group)

👇🏻 👇🏻 👇🏻

https://bit.ly/3NcYN48

👉🏻NFRA finds huge lapses in Auditing of IL&FS

(Total value of investments shown in the standalone financial statements of IL&FS as on 31-03-2018 amounts to Rs 12,320 Cr, which is almost 50% of its balance sheet size)

👇🏻 👇🏻 👇🏻

https://bit.ly/3zX915r

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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

12 June 2022 Updates

CBDT extends Timeline to update UDIN

The Central Board of Direct Taxes ( CBDT ) has extended the timeline to update the Unique Document Identification Number(UDIN) for practising Chartered Accountants till 30th June 2022, to give more time to CAs to correctly verify and upload UDINs.

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Central Board of Indirect Taxes & Customs, GST Policy Wing has issued a Circular No.169/01/2022-GST dated March 12, 2022, amending paragraphs 6 & 7 of Circular No. 31/05/2018-GST, dated February 09, 2018, consequent to Notification No. 02/2022 –Central Tax dated 11thMarch 2022 specifying the appointment of Common Adjudicating authority for adjudicating the show cause notices issued by DGGI under GST.



The Ministry of MSME makes registration of existing MSME enterprises valid till June 30, 2022. Notification No. S.O. 2134(E) of 6.5.22. 

Board of Studies of ICAI invites   Your comments on the Proposed Scheme of Education and Training at https://boscret.icai.org/   

Team BOS, ICAI

The Ministry of Corporate Affairs has accorded its in-principle approval on the *Proposed Scheme of Education and Training and draft amendments in the Chartered Accountants Regulations related thereto*.

In terms of the requirement of sub-section (3) of Section 30 of the Chartered Accountants Act, 1949, the notification containing draft amendments has been published in Part III Section 4 of the Gazette of India, Extraordinary, dated 2nd June, 2022 seeking comments from the persons likely to be affected thereby. 

The said Notification has also been hosted on the website of the Institute. The link to reach the same is https://resource.cdn.icai.org/70622council56556.pdf. The link for the Booklet “The Proposed Scheme of Education and Training” is Proposed Scheme of education and Training.pdf

The stakeholders may send their suggestions/objections in regard to the aforesaid proposed scheme latest by 1st July, 2022 for consideration of the Council by visiting the following link: https://boscret.icai.org/

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👉Gst Module wise new Functionalities deployed on The Gst Portal For Taxpayer 

https://www.gst.gov.in/newsandupdates/read/544

 👉DPT-3 Return of Deposit Due date 30-06-202

👉CSR-2 Report on CSR Extended due date 30-06-2022

👉LLP-11 Annual Return Extended Due date 30-06-2022 (Additional Fees shall be count from 31-05-2022)

👉All Other LLP Forms Due Date falling b/w 25-02-2022 to 31-05-2022 extended due date 30-06-2022

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CBDT is currently preparing guidelines Ahead of the first due date of advance tax payment on June 15, to release guidelines on what will be covered within the ambit of virtual digital assets (VDA).

The commodity ‘Diesel’ is covered under Entry 54 to the List II of the Schedule VII to the Constitution of India and therefore it is excluded from levy of GST and hence beyond the scope of Chapter XVII of the CGST Act, 2017.

Health check-ups of employees organised by companies and conducted by doctors and nurses should be regarded as a medical service and should not face GST, an Appellate Authority of Advance Ruling (AAAR) has said. The AAAR modified an earlier ruling by the Gujarat (AAR) that had said 18% GST would be applicable on such health services.

Supreme Court  held that when 90% or more of the creditors decide that it will be in the interest of all the stake¬holders to permit Settlement Plan filed by promoter of the Corporate Debtor and withdraw Corporate Insolvency Resolution Process as per Section 12A of IBC, 2016, NCLT or NCLAT cannot sit in appeal over such commercial wisdom of Committee of Creditors.

Employees' Provident Fund Organisation (EPFO) is weighing a proposal to raise its investment limit in equities to as much as 25% of incremental flows from the existing 15%. The higher exposure to stocks is aimed at helping the apex retirement body bridge the shortfall in returns with investment in debt securities struggling to help it reach targets.

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✅ Important due dates for the GST Returns in the Month of June 2022

 

10.06.2022 GSTR 7 May 2022 GSTR 7 is a return to be filed by the persons who is required to deduct TDS (Tax deducted at source) under GST 

10.06.2022 GSTR 8 May 2022 GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST 

11.06.2022 GSTR 1 May 2022 Taxpayers having an aggregate turnover of more than Rs. 1.50 Crores or opted to file Monthly Return

 

13.06.2022 GSTR 1 IFF (QRMP) May 2022 GST return for the taxpayers who opted for QRMP scheme (Optional) 

13.06.2022 GSTR 6 May 2022 Input Service Distributors 

20.06.2022 GSTR 5 & 5A May 2022 Non-Resident Taxpayers and ODIAR services provider 

20.06.2022 GSTR 3B May 2022 The due date for GSTR-3B having an Annual Turnover of more than 5 Crores or Opted for monthly filing

25.06.2022 GST Challan (Qrmp)

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Central Board of Indirect Taxes and Customs had issued Instruction No. 1083/04/2022-CX9 dated May 23, 2022, regarding standard Operating Procedure for NCLT cases in respect of the Insolvency and Bankruptcy Code.

Finance ministry is working on a detailed mechanism that can resolve goods and services tax (GST) disputes raised by states while avoiding distortions in the tax regime. The mechanism may be discussed with the states at the next GST Council meeting, expected sometime in June. 

GST revenue collected in the month of May 2022 is ₹1,40,885 crore of which CGST is ₹25,036 crore, SGST is ₹32,001 crore, IGST is ₹73,345 crore (including ₹ 37469 crore collected on import of goods) and cess is ₹10,502 crore (including ₹931 crore collected on import of goods).

GST Portal started functionalities pertaining to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other miscellaneous topics. Various webinars are also conducted as well as informational videos prepared on these functionalities and posted on GSTNs dedicated YouTube channel for the benefit of the stakeholders.

Central Board of Indirect Taxes & Customs had issued Notification No. 07/2022-Central Tax dated May 26, 2022, regarding seeks to waive off late fee under Section 47 for the period from May 01, 2022 till June 30, 2022 for the delay in filing FORM GSTR-4 for FY 2021-22.

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The Income Tax department on Tuesday directed vendor Infosys to address fresh technical glitches on the tax department’s e-filing portal. “Issue relating to the search functionality of the e-filing website has come to our notice.

Delhi High Court quashes penalty levied under section 270A. AO fails to specify the limb of section 270A(9) under which allegation of misreporting of income has been levied . Directs AO to grant immunity under section 270AA.

No cancellation of trust registration just because it received donations from an entity providing accommodation entry. [CIT (Exemption) v. Mayapur Dham Pilgrim and Visitors Trust (2022) 138 taxmann.com 502 (Cal.)]

Maharashtra AAR has ruled that the amount received under lease rental services for residential purposes will be outside the ambit of GST. 

MCA Last date of filing of DPT-3 is 30.06.2022. 

Reserve Bank of India (RBI) hikes the policy repo rate by 50 basis points to 4.90 per cent. 

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👉🏻RBI increases repo rate by 50 basis points

(Reserve Bank of India (RBI) once again increased its key interest rate (Repo Rate) by 50 bps to 4.90%, in a bid to target rising inflation)

👇🏻 👇🏻 👇🏻

https://bit.ly/3NyhUq3

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Section 37(1) Foreign travel of Directors:

Orissa High Court: Where assessee-company claimed expenditure towards foreign travel of its directors, since assessee had not furnished any details that such foreign travel expenses were incurred wholly and exclusively for business purposes, Assessing Officer was justified in disallowing 20% of such expenditure claimed by assessee.

Indian Metal and Ferro Alloys Ltd. v. CIT 2022

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AAR TELANGANA

Healersark Resources (P.) Ltd., In re 2022

1. Where Applicant is providing boarding and lodging to students undergoing training under healthcare vocational program and 2 supplies are not integrated and not naturally bundled. Thus not composite supply of services.

2. Food Services: Supply of Food services by applicant is covered under Heading No. 99633 and taxable at rate of 12% GST with ITC up to 14-11-2017 and 5% GST without ITC from 15-11-2017 onwards.

3. Accommodation Services: Supply of accommodation services by applicant is covered under Heading No. 99631 and is exempt from GST as per-day rent for accommodation is below Rs. 1,000.

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✅Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022- Strike off rules dated 9th June 2022

✅Waiver of interest for specified electronic commerce operators for specified months.

Notification No. 08/2022 –Central Tax dt. 07.06.2022

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Government in circular, clarified that the rate of TDS on Virtual Digital Assets continues to be 1 per cent, debunking earlier media reports that rate of TDS on Virtual Digital Assets(VDA) has been reduced to 0.1%.

Allahabad High Court disposes writ petition challenging conflicting reassessment orders passed by the NaFAC, grants Assessee the liberty to pursue statutory remedy against the orders; In the course of hearing, High Court had directed the Revenue Secretary to file an affidavit explaining the state of affairs and steps taken by the Government on NaFAC passing conflicting orders; – [Harish Chandra Bhati v. PCIT, Noida – Date of Judgement : 19.05.2022 (All.)]

Varanasi ITAT allows Assessee’s appeal, deletes penalty levied under Section 271C for non-deduction of tax at source under Section 194IA on purchase of property; Observes that provisions of Section 271C are subject to Section 273B which provides that no penalty would be leviable if Assessee is able to prove reasonable cause for failure to deduct tax at source; – [Manish Jaiswal v. Addl.CIT(TDS), Allahabad - Date of Judgement : 31.05.2022 (ITAT Varanasi)]

On meeting with DM and Commissioner by the Chartered Accountants of Gorakhpur, Finally Clarification issued by the GST Addl Commissioner of Gorakhpur that CAs are authorised to Appear before GST Authorities. Source- Social Media and not confirmed Also Read: Gorakhpur advocates not allowing CAs to appear before VAT/State GST Authorities. 

Canara Bank proposes to empanel eligible Chartered Accountant Firms for conducting Concurrent / Continuous Audit of select Branches / Units for the period from July 2022 to June 2023. Application is to be submitted online from 08.06.2022 to 22.06.2022.For details,please visit:https://www.pdicai.org/Docs/Canara-Bank862022173035543.pdf You are requested to appropriately submit the same latest by 22nd June, 2022.

 

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MCA Amends Strike-off Rules Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022

Ministry of Corporate Affairs (MCA) vide circular / notification dated 09th June, 2022 has issued “Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022” further to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, in exercise of the powers conferred under Section 248 (1), 248(2), 248(4) read with Section 469 of the Companies Act, 2013.

 Applicability:

 From the date of their publication in the Official Gazette.

Key Highlights:

a) Ministry has inserted following in rule 4, after sub-rule (3):

· Where the Registrar, on examining the application made in Form STK-2, finds that it is necessary to call for further information or finds such application or any document annexed therewith is defective or incomplete in any respect, he shall inform to the applicant to remove the defects and re-submit the complete Form within fifteen days from the date of such information, failing which the Registrar shall treat the Form as invalid in the electronic record, and shall inform the applicant, accordingly.

After the re-submission of the Form or document, if the Registrar finds that the Form or document is defective or incomplete in any respect, he shall give further time of fifteen days to remove such defects or complete the Form, failing which the Registrar shall treat the Form as invalid in the electronic record and shall inform the applicant, accordingly.

 Any re-submission of the application in Form STK-2 made prior to the commencement of the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022 shall not be counted for the purposes of reckoning the maximum number of re-submissions of such Form.".

b) The Ministry has also revised MCA E – forms: Form No. STK 1, Form No. STK - 5 and Form No. STK-5A

 https://www.mca.gov.in/bin/dms/getdocument?mds=JkKchIdTtvq3RDH8WyFBuw%253D%253D&type=open

Dear ICAI Member, Your comments are invited on the Proposed Scheme of Education and Training at https://boscret.icai.org/   Team BOS, ICAI

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👉Announcement by CL&CGC regarding amendment compaines  (removal of name of companies from the register of companies ) rules 2016. (10-06-2022) ICAI.

https://resource.cdn.icai.org/70683clcgc100622a.pdf

👉punjab and maharashtra co- opreative  bank limited (amalgamation with unity small finance bank limited ) scheme 2022,- provisioning on interbank exposure and valuation of perpetual non -cumulative preference share (PNCPS ) and equity warrants, RBI .

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12338&Mode=0

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

Thanks for reading

5 June 2022 Updates

🟢 *For FY 2021-2022

-Check revised disclosure requirements as per Schedule III under Companies Act

-Apply amended Independent Audit Report

-Issue CARO Report as amended by CARO 2020.

🟢MCA : AGM/EGM can be conducted through VC till 31.12.2022. Due date for AGM for last FY is still 30.09.2022. Its a facility extension not AGM Extension.

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Bombay High court on receipt from partnership firm not to be included in the turnover for the purpose of section 44AB of the Act. 

Meghalaya High Court stays recovery of GST on royalty paid for mining rights to the State. Case Name: Hills Cement Company Limited Vs Union of India (Meghalaya High Court) Appeal Number : WP(C) No. 177 of 2022 Date of Judgment/Order : 13/05/2022

Construction of buildings, such as hostels, principal's bungalow and staff quarters, in educational institutions is taxable at lower rate of goods and services tax (GST), if the structures are not used for commercial activities than those for normal business purposes, ruled Gujarat Authority for Advance Rulings (AAR). The court ruled that such buildings would draw 12 per cent GST, and not 18 per cent levied for other construction activities.

Incomplete GSTR-2B in some cases – regarding. 1. It has been noticed that in a few cases, certain records are not reflected in the GSTR-2B statement for the period of April 2022. However, such records are visible in GSTR-2A of such recipients.

In the interim, affected taxpayers interested in filing GSTR-3B are requested to file the return on self-assessment basis using GSTR-2A. Inconvenience caused in this regard is deeply regretted. Regards, Team GSTN | 15/05/2022. 

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CBDT has issued instructions to AO’s for issue of 148A notices consequent to Supreme Court judgement.

Bombay High Court slams Assessing Officer for passing order by simply cutting and pasting draft order without considering assessee’s reply - Assessing Officer who has passed the Assessment Order shall pay a sum of Rs. 10,000/- as donation from his/her personal account to P. M. Cares Fund.  [Milestone Brandcom (P) Ltd. v. National Faceless Assessment Centre, New Delhi (2022) 138 taxmann.com 45 (Bom.)]

Telangana High Court entertains writ petition against approval by GAAR panel under Section 144BA(6) for Assessment year 2018-19 over applicability of Section 96(1)(d) on transaction entered into by the Assessee; Before High Court, Assessee submits that the impugned approval is contrary to the scheme of GAAR in the light of Supreme Court ruling in CIT v. Walfort Share & Stock Brokers (2010) 326 ITR 1 : 233 CTR 42 : 192 Taxman 211 : 41 DTR 233.

Relentless selling of Indian stocks by foreign investors continued, as they pulled out a little over Rs 25,200 crore from the Indian equity market in the first fortnight of this month, on hike in interest rate globally and concerns over rising COVID cases.

MCA vide Circular dated May 05, 2022 has extended the relaxations from dispatching of physical copies of financial statements for the year 2022 (i.e. till December 31, 2022). Considering the MCA Circular dated May 05, 2022, it has been decided to provide relaxation upto December 31, 2022, from Regulation 36 (1) (b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 

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Daughter in Law cannot Claim Maintenance from Her Father in Law (FIL) if FIL not inherited any Estate from his son. Case Law Details Case Name : Laxmi & Anr Vs Shyam Pratap & Anr. (Delhi High Court). 

Donation to Mosque not allowable as Business Expense. Case Name : M.D. Noorudin Zariwala Vs CIT (ITAT Mumbai) Appeal Number : ITA No. 1708/MUM/2021 Date of Judgement/Order : 11/05/2022

GSTN Advisory. Few entries of ITC appear in GSTR-2A of April but not in GSTR-2B. In such cases, file GSTR-3B on self-assessment basis using GSTR-2A. 

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Delhi High Court on order passed by AO under section 148A(d) alleging income of more than Rs one lakh crore (100,705,88,04,543) having  escaped assessment.  High court holds notice and order being cryptic, in violation of natural justice, mechanical approval by the authority and against the avowed objective of new procedure of reassessment introduced by Finance Act,2021 to reduce litigation. 

Education Loan cannot be denied merely for Low CIBIL Score of Co-Borrowers. Case Name : Kiran David Vs Assistant General Manager State Bank of India (Kerala High Court) Appeal Number : WP(C) No. 3646 of 2022. 

The GST Council had set up a group of ministers (GoM), led by Odisha finance minister Niranjan Pujari, to examine the feasibility of levying GST on products such as pan masala and gutkha, on the basis of the installed capacity, rather than actual production. This was in view of large-scale tax evasion detected by under-reporting of output by the units.

Negotiable Instrument Act Section 138: Director not liable if Company is not accused. Case Name : Geeta Singh Vs Pradeep Singh (Delhi High Court) Appeal Number : CRL.M.C. 5124/2017.

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CBDT amends functionality 'Compliance Check for section 206AB & 206CCA incorporating FA 2022 change Circular No. 10/2022, dated 17-05-2022.

The Finance Act, 2021, has inserted two new Sections 206AB and 206CCA, with effect from 01-07-2021. These sections provide for deduction or collection of tax at a higher rate in the case of non-filers (specified person) of return of income.

Central Board of Direct Taxes (CBDT) vide Circular no. 11/2021, dated 21-06-2021, had issued a new functionality ‘Compliance Check for Sections 206AB & 206CCA’ to ease the compliance burden on tax deductors or collectors.

To ensure that all the persons whose significant tax has been deducted or collected do furnish their return of income, the Finance Act 2022 has rationalized the provisions of sections 206AB and 206CCA. It has been provided that the provisions of these sections shall not apply to tax to be deducted under sections 194-IA, 194-IB, and 194M. Further, a person shall be treated as a specified person based on the return filing status of the last 1 year instead of the earlier 2 years.

Accordingly, the CBDT has amended the logic of the functionality ‘Compliance Check for Sections 206AB & 206CCA’. The new logic for the Financial Year 2022-23 is as under:

 A list of specified persons is prepared at the start of the financial year 2022-23 taking the previous year 2020-21 as the relevant previous year.

 Such a list contains names of the taxpayers who did not file the return of income for the assessment year 2021-22 and have an aggregate of TDS and TCS of Rs. 50,000 or more in the previous year 2020-21. During the financial year 2022-23, no new names are added to the list of specified persons.

If any specified person files a valid return of income (filed & verified) for the assessment year 2021-22 during the financial year 2022-23, his name would be removed from the list of specified persons. This would be done on the date of filing the valid return of income.

 If any specified person files a valid return of income (filed & verified) for the assessment year 2022-23, his name would be removed from the list of specified persons. This would be done when such a person files a return of income.

 If the aggregate of TDS and TCS in the case of a specified person, in the previous year 2021-22 is less than Rs. 50,000, his name would be removed from the list of specified persons. This would be done on the first due date under section 139(1) falling in the financial year 2022-23, i.e., 31st July 2022.

 Belated and revised TCS & TDS returns of the relevant financial year filed during the financial year 2022-23 would also be considered for removing persons from the list of specified persons.

Note: A person cannot file the return of income for the Assessment Year 2021-22 during the Financial Year 2022-23 (except in specified circumstances). Hence, relief has been granted by the Dept. by removing the name of the person from the list of specified persons if he files the return of income for the Assessment Year 2022-23 in the Financial Year 2022-23. On a similar note, the name would be removed in the Financial Year 2022-23 if the aggregate TDS and TCS of a specified person is less than Rs. 50,000 in the previous year 2021-22.

Supreme Court pronounces judgment in Mohit Minerals case (Ocean Freight matter). While upholding the judgment of Gujarat High Court, the Supreme Court holds that recommendations of the GST Council are only recommendatory and not binding on Union and State. In a nutshell, GST is not leviable on ocean freight.

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Decision taken by ICAI on recent arrest of Chartered Accountant. The matter related to the recent arrest of the Chartered Accountant and other instances of ill-treatment of CAs by investigating authorities was discussed in the council of The Institute of Chartered Accountants of India (ICAI).

The Council members expressed their strong resentment on the manner in which certain investigating officers are treating CAs and directly resorting to arrests. 2 Chartered Accountants detained by GST Department over an alleged Rs 15 crore GST refund scam

The Council was also apprised of the strong feeling of members throughout the country regarding ill-treatment being meted to certain members rather than taking strong action against the actual perpetrators.

The council of ICAI resolved to form a Group composed of its members to interface with the authorities in order to ensure that just and fair treatment is meted out to Chartered Accountants and they are not made soft targets.

The Revenue Department has launched investigations under the anti-tax avoidance law, General Anti-avoidance Rule (GAAR), into companies and entities that may have used creative methods to avoid paying taxes. A Hyderabad-based company, Ekge Retail, has received a notice in which the department has applied Section 96(1)(d) of the Income-tax Act, which deals with impermissible agreements undertaken to avoid taxation.

Foreign investors coming from Mauritius are often denied capital gains tax relief on the grounds that persons controlling the tax haven companies are based in other countries. This may change now. One such attempt by the Income tax (I-T) department to lift the 'corporate veil' was struck down this week by a court which ruled that the tricky subject of 'beneficial ownership' (BO) of the Mauritian entity cannot be linked to capital gains.

Listed Companies need not send hard copies of Annual Report to shareholders till 31.12.2022. SEBI Circular No. SEBI/HO/CFD/CMD2/CIR/P/2022/62 of 13.5.22. 

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ICAI  Council initiatives are welcome in respect of gross injustice by the highly corrupt and high headed egoistic officials. The time has come to: 

Provide legal support to all I’ll treated CAs. The guilty are always punished by ICAI. It is important to safeguard the honest , harassed and ill  treated  CAs. We all can contribute to legal fund. 

All CAs need to unitedly take pledge and to not to tolerate any wrong. We need to expose all the corrupt officials and ensure that they are punished. 

The officers making high pitched assessments maliciously and who do not provide reasonable opportunities to CAs to explain the case also need to be reported to CBI , CVC as well as CBDT. 

Updated ITR Filing 2022: The Income Tax Department recently announced a new form for filing of Updated Income Tax Returns. A new concept of updated return was introduced in Budget 2022. It allows taxpayers to amend their ITRs within two years from the end of the relevant assessment year. The new provision is expected to help taxpayers who often commit errors or make some omissions while filing ITR. 

In the form for Updated ITR, taxpayers are required to declare the purpose for filing as well as the amount of income to be taxed in the updated return. 

Taxpayers are not required to provide a break up of the income reported in the ITR (Updated).

Taxpayers can now use the new form ITR-U to file the updated income tax return for financial years 2019-20 and 2020-21. 

Certain taxpayers are required to file the Updated ITR electronically using a digital signature or an electronic verification code. The taxpayer has to file the ITR Forms of the relevant assessment year and submit it along with the new ITR-U. 5. The ITR-U has to be filed within two years of the end of the relevant assessment year. For doing this, taxpayers are also required to provide reasons for updating the ITR. According to Tax2Win, the reasons for filing ITR-U may be many, including previous return not filed, income not reported correctly , wrong heads of income choses, reduction of a carried forward loss etc.

Wef 1.4.22, higher TDS/TCS  if ITR of last 1 FY (2 earlier) not filed whose due date of filing is over & TDC/TCS exceed 50,000. Circular 10 of 17 May. 

No Reassessment permissible for Change of Opinion: Bombay High Court. ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 804 OF 2022. Bhavani Gems Private Limited

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Deputy Commissioner and a superintendent of GST suspended in the matter of illegal arrest of 2 CAs in Gurugram. Finance Minister Smt. Nirmala Sitharaman acknowledges the appreciative of the steps taken by ICAI on this matter.

Section 139 of the Income Tax Act governs the filing of a return of income. A common understanding is that the obligation to file an ITR arises if an individual earns income on which tax has been deducted. This is not entirely true. Section 139 lists certain situations wherein return filing by an individual is mandatory even if no tax has been deducted from his income or even if he does not earn any income.

The Supreme Court held that the recommendations of the Goods and Services Tax Council would not be binding on the Centre and the states. The council fixes GST rates and its recommendations were considered binding until now. The ruling could have far-reaching implications for the “one nation, one tax” regime that was introduced in July 2017 when the GST was launched to subsume all indirect taxes collected by the Centre and the states.

Taxpayers who have paid GST on ‘Ocean Freight’ on imported goods will be entitled to claim refunds, following the Supreme Court verdict, provided they have not claimed input tax credit, experts said. Giving its ruling in the Mohit Minerals case, the Supreme Court held that since the Indian importer is liable to pay IGST on the ‘composite supply’, comprising of supply of goods and supply of services of transportation, insurance, etc in a CIF (Cost Insurance Freight) contract, a separate levy on the Indian importer for the ‘supply of services’ by the shipping line would be in violation of the CGST Act.

SEBI mandated a compulsory comprehensive cyber audit of market infrastructure institutions (stock exchanges, depositories, clearing corporations) at least twice during the financial year. Further, along with the audit reports, the regulator has directed all MIIs to submit a declaration from MDs/CEOs “certifying compliance by the MII with all SEBI Circulars and advisories related to Cyber security issued from time to time.

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Allahabad High Court quashes reassessment where Section 148 notice dated March 31, 2021 for AY 2014-15 was received by the Assessee on April 1, 2021 alleging less than Rs.50 Lacs as income escaping assessment; High Court holds the notice to be barred by limitation in terms of Section 149(1)(a). 

Madras High Court quashed National Faceless Assessment Centre order passed without discussing reply to Show Cause Notice filed by assessee. Case Name : Vellaian Selvaraj Vs Additional/Joint/Deputy/Asst. CIT/ITO (Madras High Court)

CPC has No Jurisdiction of Prima-Facie Adjustment u/s 143(1) of Income Tax Act when there are Judicial Decisions favouring Assessee: ITAT Mumbai. Case : Rajkumar Laxminarayan Kanojiya. 

Assessee was granted only three days’ time to file its response to the notice u/s 148A-  Held-This Court is of the view that under Section 148A(b) of the Act, a minimum time of seven days has to be granted to the assessee to file its reply to the said show cause notice.  (Favour of Assessee) Shri Sai Co-Operative Thrift And Credit Society Ltd. Vs. ITO, W.P.(C) 7385/2022 (Delhi High Court)

Securities and Exchange Board of India has modified the “Categorization and Rationalization of Mutual Fund Schemes” to allow fund houses to launch passive equity linked saving schemes. Investors can now invest in passive tax saving scheme schemes to save taxes under Section 80C of the Income Tax Act.

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The Finance Ministry transferred Ms. Meenu Kumar Commissioner CGST Gurugram to Siliguri, Mr. Abhinav Yadav Addl. Commissioner to Bhuvaneswar & Mr. Ankit Agrawal Dy. Commissioner also transferred to Lucknow with a condition that No representation shall be entertained before they join the new place of posting. 

A flurry of summons from the Income tax investigation wing and the Enforcement Directorate (ED) over the past fortnight has come as a rude reminder to many that despite paying tax they may have a brush with the law. Thousands of recipients of such letters have been caught in a stern, yet often ignored, provision of the statute that requires a mandatory disclosure of all foreign assets like ownership in a company, properties, and accounts with overseas banks, there is a stiff cost to such non-disclosures, as many are discovering: a penalty of 10 lakh a year under Black Money Act (BMA) - so, if a bank account was opened five years ago and has remained a 'secret' since then, the basic fine will be 50 lakh if the assesse is unable to convince tax authorities.

No Disallowance Can Be Made For Cash Payments If Transaction is Genuine And Identity Of Payee is Known: ITAT Jaipur In the case of M/s A Daga Royal Arts vs. ITO,Sec 40A(3) Rule 6DD.

 As a major relief to importers, the Supreme Court in the case of UOI & Anr. vs. Mohit Minerals Pvt. Ltd., Civil Appeal No. 1390 of 2022, struck down the levy of GST on ocean freight under reverse charge in case of CIF imports.

CARO 2020 has increased the responsibility of the auditor all the more. One may refer to Para 3(ii)(b) of CARO, 2020 which now requires the auditor to report as to whether the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company, if not, give details. 

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✅ Late fees for filing GSTR-4 for FY 2021-22 waived from 01.05.2022 to 30.06.2022

The CBIC vide Notification No. 07/2022- Central Tax dated May 26, 2022 amended Notification No. 73/2017- Central Tax dated December 29, 2017 to waive late fees for filing Form GSTR-4 (i.e., Quarterly return for registered person opting for composition levy) for FY 2021-22 from May 01, 2022 to June 30, 2022.

✅ No DRC-03 / voluntary payment of GST from taxpayers during search, inspection or investigation on any issue detected during such proceedings: CBIC vide instruction no. 01/ 2022-23 (GST investigation) dated 25 May 2022

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Delhi ITAT imposes cost of Rs. 25,000 on Assessee for ‘lackadaisical and non-cooperative attitude’ towards the quantum proceedings, restores the matter to Revenue in the larger interest of justice by providing the Assessee another opportunity; - [Vavasi Telegence (P) Ltd. v. ITO – Date of Judgement : 23.05.2022. 

Notification No. 07/2022–CT: Late fee payable for delay in furnishing of FORM GSTR-4 for the Financial Year 2021-22 under section 47 of the said Act shall stand waived for the period from the 1-5-22 to 30-6-22.

Life Insurance Corporation of India (LIC) will hold a meeting of its board of directors to consider and approve payment of dividends, if any, the insurance behemoth said in a BSE-filing. The meeting is scheduled to be held on May 30.

RBI came up with norms for facilitating physical import of gold through India International Bullion Exchange IFSC (IIBX) or similar authorised exchange by Qualified Jewellers in India. In addition to agencies nominated by the RBI and by DGFT, Qualified Jewellers (QJ) as approved by International Financial Services Centers Authority (IFSCA) were permitted to import gold in January.

Register & view the 2 CPE Hours VCM on Virtual CFO Services for MSMEs- Role of Chartered Accountants from 5:00 PM to 7:00 PM on 28.05.2022 conducted by the Committee on MSME & Start-up, ICAI. Faculty: CA. SUNIL KUMAR PANDEY. Registration Fees: Nil  Link for Registration in the said VCM : https://live.icai.org/msme/vcm/28052022/

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CBDT, vide Notification No. 54/2022 dated 27.05.2022 notifies Faceless Penalty (Amendment) Scheme, 2022 to amend Faceless Penalty Scheme, 2021. 

ITAT Ahmedabad held that Limited Scrutiny under Income Tax can be converted to Complete Scrutiny only with Approval of PCIT in writing. Chaitanya Bansibhai Nagori vs. CIT. 

No late fee payable for delay in furnishing of GSTR-4 for FY 21-22 till 30 June. Notification 07/2022 - CT of 26.5.22.

GST is not required to be deposited forcefully or by coercion or under any pressure during any search / inspection/ Investigation  proceedings under GST Law. However, taxpayers can pay any GST amount voluntarily.

No GST can be recovered without being payable in pursuance of an order passed by adjudicating authority or otherwise becoming payable under the provision of CGST Act.

If any complaint is received regarding the above coercion / force / wrongdoing by the GST officers, The enquiry and disciplinary action to be taken by the Principal Chief commissioner / Chief commissioner against the defaulting officer. CBIC Instruction No-01/2022-23 (GST- Investigation) dated 25-5-2022. 

MCA Relaxation in paying additional fees in case of delay in filing Form 11(Annual Return) up to 30th June, 2022. 

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CBDT has notified the Faceless Penalty (Amendment) Scheme, 2022. There is  omission of the Regional Faceless Penalty Centers from the Faceless Penalty Scheme 2021. As per change ‘Appeal Units’ and ‘Penalty Review Units’ shall mean the Assessing Officer having powers so assigned by the Board.

ITAT explains Transfer Pricing Method in case of Sale of Electricity to AEs TG Team. Case Name : ACIT Vs Electrosteel Casting Ltd. (ITAT Kolkata) Appeal Number : ITA Nos.2303 & 2304/Kol/2019 Date of Judgement/Order : 17/05/2022

The Direct Tax Committee of ICAI issued a Handbook on Statement of Donations Received. Link to Download:

https://resource.cdn.icai.org/70498dtc56444.pdf

CBIC has issued instruction no. 01/2022-23 on dated 25.05.2022, where it has been clarified that taxpayers can pay GST in DRC-03 voluntarily before issuing show cause notice (SCN) of recovery during the course of search to save the penalty imposable due to search but GST officers cannot force to pay GST during search or inspection or investigation.

Input Tax Credit (ITC) cannot be denied on genuine transactions with suppliers for whom GST registration was cancelled after the transaction. The decision was held by Justice Md. Nizamuddin of The Calcutta High Court bench.

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CBDT, vide Notification No. 56/2022 dated 28.05.2022, notifies ‘Assistant Commissioner of Income-tax/  Deputy Commissioner of Income-tax (International Taxation), Circle - 1(1)(1), Delhi’ as Prescribed Income-tax Authority for the purpose of issuing notice under Section 143(2). 

Today (31 May) is the last day to file Quarterly Statements of TDS for Jan-Mar 2022 in Forms 24Q, 26Q & 27Q. Last date for TCS Return (27EQ) was 15 May. 

Canteen and transportation services provided by schools are outside the purview of Goods and Services Tax (GST), the Maharashtra authority for advance ruling (AAR) has said in a ruling that will offer relief to many schools across India.

Annual Return of LLP for FY 21-22 in LLP-11 can be filed till 30 June without any additional fee. General Circular No. 04/2022 of 27.5.22. 

SEBI tweaked the standard operating procedure specifying steps to be taken by stock exchanges, clearing corporations and depositories for dealing with possible defaults by trading or clearing members. 

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CBDT has again extended the timeline to update Unique Document Identification Number (UDIN) on Income Tax Portal. The timeline to update UDINs is extended till 30th June 2022 to give more time to Chartered Accountants (CAs) to correctly verify and upload UDINs.

Multinationals that allotted employee stock options (esops) to their India employees have come under the taxman's lens for tax applicability on these transactions. The tax department is questioning the Indian arms of multinationals on withholding tax when they make such payments to their parents.

MCA has notified amendment in Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, which requires a company or a body corporate, which has been incorporated in a country that shares a land border with India, to furnish a declaration in Form CAA 16, stating that if they need prior approval from the Government of India under FEMA NDI Rules, to make an application for merger or demerger with an Indian company.

Second-hand goods be it antique watches, books, jewellery or for that matter even paintings — fall within the ambit of the goods and services tax (GST). Recently, in the case of Saffron Art, which is also an online auctioneer, the Maharashtra bench of the GST-Authority for Advance Rulings (AAR) examined this issue in the context of second-hand paintings. In a ruling that favours the applicant, it held that GST at 12% will be payable on the differential price.

MCA - all LLP Filings: 31 May' 2022. Relaxation in paying additional fees in case of delay in filling all the event based e-forms by LLPs which are due on and after 25th February, 2022 to 31st May, 2022 up to 30th June,2022. 

SEBI tweaked the initial public offering norms in a bid to ensure that only genuine entities participate. The regulator is learnt to have found out that some large institutional investors and high net worth individuals were putting in bids only to inflate the subscription numbers. 

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CBDT, pursuant to Press Release, issues Circular No. 7/2022 on relaxation in applicability of Rule 114 AAA(2) for non-intimation of Aadhaar upto 31.03.2023 and repercussion of non-intimation thereafter; However, such taxpayer shall be liable to pay fee as per Rule 114(5A)



Delhi High Court quashes reassessment notice and the order under Section 148A(d) for being passed without considering Assessee’s response and request for personal hearing; Directs the Revenue to pass a fresh reasoned order after considering Assessee’s reply with a liberty of issuing supplementary notice;– [First Solar Power India (P) Ltd. – Date of Judgments : 26.05.2022 (Del.)]

 

The Supreme Court issued notice in SLP filed against the ruling estimating only 2% additions on huge sums deposited in banks. Section 68 of the Income-tax Act, 1961 - Cash credits (Bank deposits) - [PCIT v. Shitalben Saurabh Vora (2022) 138 taxmann.com 348 (SC)].

 

GSTN has added 6% tax rate in GSTR-1 on the GST Portal. 6% tax rate has been added in the item details section of all the tables of form GSTR-1, except HSN table 12. In case outward supplies attract a 6% tax rate, upload the details against the 6% tax rate in the item details section.

 

LLPs can file all event based e-forms due from 25.2.22 to 31.5.22 up to 30.6.22 without additional fee. MCA General Circular 6/2022 of 31.5.22. 

 

State Bank of India invites applications from eligible Chartered Accountant Firms for empanelment as Concurrent Auditors in the Bank branches / CPCs / special outfits. by post / courier / hand delivery and reach to the respective Circle Audit Office (CAO) on or before 15.06.2022.

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Central Board of Direct Taxes hereby authorizes the Assistant Commissioner of Income Tax/ Deputy Commissioner of Income Tax (International Taxation), Circle -1(1)(1), Delhi to act as the ‘Prescribed Income-tax Authority’ for the purpose of issuance of notice under sub-section (2) of section 143 of the Act.

Payment of tax sufficient to allow withdrawal from Capital Gain Account Scheme: High Court directs Assessing Officer to issue NOC. – [Rashesh Shirish Sanjanwala v. ACIT (2022) 441 ITR 374 : 285 Taxman 710 : 134 taxmann.com 104 (Guj.)]

Assessing Officer can not invoke section 154 to make disallowance for cash payments made by assessee exceeding prescribed limit. – [Smt. Poonam Mittal v. ITO (2022) 138 taxmann.com 380 (ITAT Amritsar)]

GST Portal: GSTN has provided facility to add additional Trade Name under the same GSTIN. Now, it is easy to do multiple business under the same Legal name with different Trade Names. 

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✅ICAI (ASB) prescribing the formats for financial statements for non-corporates (Proprietorship, Partnership, etc.) has published a Technical Guide on Financial Statements of Non-Corporate Entities.

Access at - https://resource.cdn.icai.org/70614asb56545.pdf

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🟢 Due Dates of Filing ROC Forms for the Month of June 2022

✅DPT-3 Return of Deposit Due date 30-06-2022

✅CSR-2 Report on CSR Extended due date 30-06-2022

✅LLP-11 Annual Return Extended Due date 30-06-2022 (Additional Fees shall be count from 31-05-2022)

✅All Other LLP Forms Due Date falling b/w 25-02-2022 to 31-05-2022 extended due date 30-06-2022

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CBDT issued Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2022-23 - procedure for compulsory selection in such cases - reg.

Additional Trade Name under same GSTIN can now be added at GST Common Portal from Dashboard>Services>Registration>Amendment of Registration Core fields.

MCA vide notification dated 1st June, 2022 amended the Companies (Appointment and Qualification of Directors) Rules, 2014. Pursuant to this notification-

When the person seeking appointment is a national of a country which shares land border with India, the Security clearance from the Ministry of Home Affairs, Government of India, shall also be attached- With the consent to act as a director in DIR-2. With the application for DIN. Form DIR-2 and DIR-3 are also revised.

ICAI has released Draft Regulations to amend the Chartered Accountants Regulations 1988, which the Council of the Institute of Chartered Accountants of India proposes to make, is hereby published, as required by sub-section (3) of section 30 of the Chartered Accountants Act, 1949 (38 of 1949) for the information of all persons likely to be affected thereby;

and notice is hereby given that the said draft regulation shall be taken into consideration after the expiry of a period of thirty days from the date on which the copies of the Gazette of India, in which these draft regulations are published, are made available to the public;

Any person desiring to make any objection or suggestion in respect of the said draft regulations, may forward the same to the Council of the Institute of Chartered Accountants of India within the period so specified addressed to the Secretary, the Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg, New Delhi – 110002;

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Accounting Standards Board of ICAI (ASB) prescribing the formats for financial statements for non-corporates (Proprietorship, Partnership, etc.) has published a Technical Guide on Financial Statements of Non-Corporate Entities.

🎋 The same can be assessed at - https://resource.cdn.icai.org/70614asb56545.pdf

🪷 Request everyone to strongly recommend the non-corporate entities to follow these formats for formulation of their financial statements *from financial year 2021-22 onwards*. 

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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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