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New functionality for compliance U/S 206AB and 206CCA (Cir 11/2021):
1. The above 2 sections are applicable from 1st July 2021 requiring deduction of TDS (other than salary, horse racing, etc) or TCS at twice the normal rates or 5% whichever is higher, in case, deductee or collectee are specified persons ie not filed ITRs for 2 years, total of TDS and TCS is Rs 50,000 or more. 
2. Considering the fact that it is practically impossible for the deduction or collector to identify the specified persons, the new functionality has been issued by CBDT ‘Compliance check for 206AB and 206CCA’. 
3. As per the functionality, Single or multiple search of PAN can be made to identify the specified persons and bulk data can in fact be downloaded in pdf format. 
4. A list of specified persons would be prepared at the start of the FY and no new specified person would be added during the FY.  If a specified person fulfils the conditions specified above, he would be removed from the list during the FY. 
5. So as a rule, new specified persons list on the portal would be drawn at the start of the FY and no new person would be added during the year even if he becomes a specified person. So we just have to check at the start of the FY for specified persons. Only while adding a new vendor during the year, we might have to look if he is a specified person. Also, if the status of specified person gets converted into a non specified person, we might have to update in our records. 

Pan Aadhaar Linking Deadline on 30th June 2021. As per the Reports, the government may take a tough stand against those taxpayers who have not liked their PAN with Aadhaar. Moreover, the report further says that  if an employee fails to link PAN with Aadhaar card by June 30, the company will not credit their salary from the next month.
According to Clause 41 of Section 139AA of the Income Tax Act, “If a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be provided by rules.” In Budget 2021, the Union government has added a new section 234H in the Income Tax Act, where an individual will have to pay a penalty if PAN and Aadhaar are not linked after the deadline ends. So if an individual misses the deadline, he or she will be liable to pay a penalty. In order to check  if your PAN and Aadhaar card is linked you need to go to the official site of the income tax department (www.incometax.gov.in), then Under the ‘Our Services’, there will be an option of ‘Link Aadhaar’ on the homepage, Click on ‘Link Aadhaar Know About your Aadhaar PAN linking Status’ option. A new page will open. Enter your PAN and Aadhaar Card details in the mentioned box. Once you fill the details, click on ‘View Link Aadhaar Status’. The status of your Aadhaar-PAN will be displayed on the page.

If you have not filed your income tax return (ITR) or do not file ITR then you might have to pay a higher amount of TDS/TCS from July 1, 2021. This is because as per an announcement made in Budget 2021, a person who has not filed ITR for the previous two financial years and the aggregate TDS and TCS deducted from payments made to him/her in each of these financial years exceeds Rs 50,000, then such person would be subjected to higher TDS rate. This will rule will come into effect from July 1, 2021.

Top Indian cryptocurrency exchanges are in the final stages of joining Indian Tech, an industry association representing consumer internet startups, unicorns and investors, according to several industries, approach could help raise awareness and push regulators to quickly establish a framework for crypt. The association seeks to lobby the government to regulate crypt assets in India. India Tech represents India’s leading consumer internet startups such as Dream Sports, Ola Electric stead view capital and falcon Edge. All leading crypt exchanges, including WazirX, CoinDCX, ZePay and Coin Switch Kuber are currently part of BACC. 

The cost of buying Bitcoins and other cryptocurrencies may have increased about 2% for investors who purchased them from exchanges outside the country as they are all set to face additional tax in the form of equalization levy. The tax department is now looking into whether the 2% levy is applicable on crypt assets bought online by Indians from overseas exchanges, people in the know said. The government had expanded the scope of equalization levy from this year to include any purchase by an Indian or India based entity through an overseas platform. The way the new equalization levy is worded and defined, it appears that it will also be applicable on cryptocurrency bought from an exchange not based in India. The levy is on the selling price and companies may be required to add this to the cost of the crypt assets. There is no clarity as to whether cryptocurrencies can be categorized as goods, services or commodities. In the absence of any guidelines on the treatment of crypt assets, there is ambiguity in how these would be treated under the tax laws and FEMA (Foreign Exchange Management Act). There is a possibility of the expanded equalization levy (EL 2.0) being levied on offshore exchanges facilitating sale and purchase of crypt assets.

The government of India yesterday  proposed several tweaks to the country's e-commerce rules to curb widespread cheating and unfair trade practices in the ecosystem. 
1. Among the changes proposed are a ban on certain kinds of flash sales and punitive action against the platform if sellers don't deliver, according to a statement issued by the Food and Consumer Affairs Ministry today.
The proposed amendments to the rules aim to bring transparency, strengthen the regulatory regime, protect consumers' interests, and encourage free and fair competition, the statement said.
The government has sought views and suggestions on these amendments to the Consumer Protection (E-commerce) Rules, 2020, within 15 days (by July 6, 2021). "Certain e-commerce entities are engaging in limiting consumer choice...wherein one seller selling on platform does not carry any inventory or order fulfillment capability but merely places a 'flash or back-to-back' order with another seller controlled by platform," the Ministry said, proposing a ban on certain kinds of flash sales.  This prevents a level playing field and ultimately limits customer choice and increases prices." The government's statement clarified that conventional flash sales by third party sellers are not banned on e-commerce platform.

2. Another change recommended is the appointment of Chief Compliance Officers, nodal contact persons for 24x7 coordination with law enforcement agencies, to ensure compliance of the Consumer Protection Act, 2019. 

3. Further, a framework for registration of every e-commerce entity has been proposed. The allotted registration number shall be displayed prominently on the website as well as the invoice of every order, it says. This "would help create a database of genuine entities and ensure that consumers are able to verify its genuineness before transacting".

4. Mis-selling has been prohibited. That is, selling goods and services...by deliberate misrepresentation of information..." the Ministry said in the statement.

Surat unit of Directorate of Revenue Intelligence (DRI) and Customs and Central Excise department officials of Surat on Sunday seized two consignments of Universal Diamonds from the Surat Special Economic Zone for wrongful disclosure of weight. The actual value is yet to be declared, but the officials estimate its worth to be hundreds of crores. The consignments were supposed to be sent to Mumbai airport and from there to Hong Kong. All the diamonds seized were in loose form. Officials said that the owner of Universal Diamonds, Meet Kachhadiya, had declared the weight of one consignment as 12,000 carats but afterwards it was found to be 26,000 carats, while the declared weight of another consignment was 20,000 carats, while the actual weight was 27,000 carats. Moreover, the company declared the diamonds to be lab grown, but in actual they were all natural diamonds. On Monday, the officials have sealed the company. Search was also carried out at the house of Kachhadiya.

GIST of GST Circular No 156/2021 dated 21.06.2021 : 
Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices issued by taxpayers having aggregate turnover more than 500 crore rupees
1. Invoice issues to UIN holders require dynamic QR Code.
2. If UPI ID is linked to a specific bank account of the payee/ person collecting money, separate details of bank account and IFSC may not be provided in the Dynamic QR Code.
3. Where the payment is collected by some person( Eg E Com), authorized by the supplier on his/ her behalf, the UPI ID of such person may be provided in the Dynamic QR Code, instead of UPI ID of the supplier.
4. Wherever an invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier in foreign currency, through RBI approved mediums, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for making payment to the supplier.
5. In case of over the counter sales, the unique order ID/ unique sales reference number, which is uniquely linked to the invoice issued for the said transaction, may be provided in the Dynamic QR Code for digital display, as long as the details of such unique order ID/ sales reference number has linkage with the invoice.
6. When the part-payment for any supply has already been received from the customer/ recipient, in form of either advance or adjustment through voucher/ discount coupon etc., then the dynamic QR code may provide only the remaining amount payable by the customer/ recipient against “invoice value”

The government has sought information from Switzerland on deposits by Indian citizens in Swiss banks. The moves comes following reports that deposits by Indians in Swiss banks had risen to Rs.20,700 crore by the end of last year, from Rs.6,625 crore at the end of 2019,reversing a two year trend and marking a peak in over a decade. The Swiss authorities have been requested to provide the relevant facts along with their view on possible reasons for increase/decrease,” the finance ministry said on Saturday. The customer Deposits have fallen, while funds held through fiduciaries had also more than halved from the end of 2019, the ministry said. The biggest increase is in ‘other amounts due from customers.’ These are in the form of bonds, securities and various other financial instruments, “it noted. A number of factors could have led to the increase in deposits. These include an increase in deposits held by Indians companies in Switzerland and higher dressiness transactions and higher Deposits due to the business of Swiss bank branches located in India, the ministry said.

Higher TDS rate applicable from 01.07.2021 in certain cases.
1. Applicability of Section 206AB:
2. Deductor :-This provision is applicable to each and every deductor who is required to deduct TDS under this Act
3. Deductee is the person who has not filed his Income Tax Returns for preceding 2 years immediately preceding the previous year for which Tax is required to be deducted and total of TDS and TCS both together exceeds is Rs.50,000/- or more in each of these 2 previous years and due date under section 139(1) of filing of ITR has been expired for such previous years.
E.g if TDS is required to be deducted for Previous Year 2021-22 then the deductor is required to whether ITR for PY 2019-20 and 2020-21 has been filed or not if not filed then he further needs to check whether TDS and TCS both are morethan 50,000/- for both year? If it is more than 50,000/- then deductor needs to deduct TDS at higher rate as mentioned herein below.
4. Rate of TDS Deduction under Section 206AB:
Higher of the following if above conditions are satisfied, in such case TDS rate is:
i) At Twice the rate specified in the relevant provision of the Act or
ii) At twice the rate or rates in force or
iii) At the rate of 5%
5. In case the deductee does not furnish his PAN then the rate shall be 20%.

11 Restrictions on cash transactions in Income Tax Act:
1. As per Sec 13A, if donation is received by political parties in cash exceeding Rs 2000, exemption shall not be available to them. 
2. Deduction U/S 35AD shall not be allowed if cash payment exceeds Rs 10,000. 
3. Deduction of insurance premium U/S 36, health insurance premium U/S 80D, contribution to political parties U/S 80GGB and GGC shall not be allowed if payment is made in cash. 
4. Payment of expenses in cash exceeding Rs 10,000 shall not be allowed as a deduction (Sec 40A(3)). 
5. Payment for capital expenses in cash exceeding Rs 10,000 shall be ignored for calculation of actual cost of asset (Sec 43(1)). 
6. Presumptive profit will be deemed at 6% instead of 8% in respect of the amount of total turnover or gross receipts which is received through the banking channel. (Sec 44AD). 
7. Contribution to charitable institutions in cash exceeding Rs 2,000 shall not be eligible for deduction U/S 80G. 
8. No deduction shall be allowed U/S 80GGA if contribution is paid in cash in excess of Rs.10,000.
9. Banks/ Post office will deduct tax @ 2% on the cash payment to any person on the amount exceeding 1 Cr (If return not filed 2%-20L to 1cr and 5% thereafter). Sec 194N. 
10. Penalty U/S 269SS and T of equal amount for accepting and repaying loan in cash of Rs 20,000 or more. 
11. Penalty U/S 269ST of equal amount for receipt of Rs 2 L or more in cash from a person in a day or in respect of a single transaction or relating to one event or occasion. 

Ministry of Micro, Small and Medium Enterprises has issued an amendment to the original notification No. S.O. 2119 (E) dated June 26, 2020 vide 2347(E) dated June 16, 2021, extending the validity of EM Part-II and UAMs from March 31, 2021 to December 31, 2021. This would facilitate the holders of EM Part-II and UAMs to avail benefits of the provisions under various existing schemes and incentives including Priority Sector Lending benefits of MSME. Considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions and Government departments dealing with the interest of MSME Sector, the said amendment has been carried out. It is expected that existing EM Part-II and UAM holders would be able to migrate to the new system of Udyam Registration, which was launched on July 01, 2020, and would avail the benefits of Government Schemes, thereby paving the way for strengthening MSMEs and leading to their faster recovery, boost to their economic activity and creation of jobs.

Infosys on Saturday said it will roll out  new functions on India’s income tax e-filling portal & that it has addressed a series a technical glitches that has impacted performance & stability of the site, which caused a sustained uproar from tax payer in recent weeks. Addressing a barrage of portion from shareholders on the issue – which had also promoted finance minister Nirmala Sitaraman to weigh in earlier this month – Infosys chief operating officer UB Praveen Rao said the company has seen over One lakh daily unique visitors on the tax portal & has proceed over One lakh returns on the platform so far. He was speaking at the 40th annual general meeting of the company on Saturday which was held virtually. The finance minister has scheduled a meeting with the company on June 22nd to discuss the issue plaguing the portal.

The Government has issued 7 GST Circulars  providing clarity on the following issues:
1. Clarification regarding applicability of GST on supply of food in Anganwadis and Schools -
It has been clarified that services provided to an educational institution by way of serving of food (catering including mid- day meals) is exempt from levy of GST irrespective of its funding from government grants or corporate donations [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates 
Circular No. 149/05/2021-GST dt. June 17, 2021
2. Clarification regarding applicability of GST on the activity of construction of road where considerations are received in deferred payment (annuity)-
It has been clarified that Entry 23A of notification No. 12/2017-CT(R) does not exempt GST on the annuity (deferred payments) paid for construction of roads 
Circular No.150/06/2021-GST dt. June 17, 2021
3. Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination)
It has been clarified that (i) GST is exempt on services provided by Central or State Boards (including the boards such as NBE) by way of conduct of examination for the students, including conduct of entrance examination for admission to educational institution [under S. No. 66 (aa) of Notif. No. 12/2017-CT(R)]. Therefore, GST shall not apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations (ii) GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc, when provided to such Boards [under S. No. 66 (b) (iv) of notif No. 12/2017-CT(R)]. (iii) GST at the rate of 18% applies to other services provided by such Boards, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test ) so as to authorise them to provide their respective services.
Circular No. 151/07/2021-GST dt. June 17, 2021
4. Clarification regarding rate of tax applicable on construction services provided to a Government Entity, in relation to construction such as of a Ropeway on turnkey basis.
It has been clarified that works contract service provided by way of construction such as of rope way shall fall under entry at sl. No. 3(xii) of notification 11/2017-(CTR) and attract GST at the rate of 18%.
Circular No. 152/08/2021-GST dt. June 17, 2021
5. GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS.
It has been clarified that (i) Entry No. 3A would apply to composite supply of milling of wheat and fortification thereof by miller, or of paddy into rice, Circular No. 153/09/2021-GST provided that value of goods supplied in such composite supply (goods used for fortification, packing material etc) does not exceed 25% of the value of composite supply. It is a matter of fact as to whether the value of goods in such composite supply is up to 25% and requires ascertainment on case-to-case basis. (ii) A person registered only for the purpose of deduction of tax under section 51 of the CGST Act is also a registered person for the purposes of the said entry No. 26, and thus said supply to such person is also entitled for 5% rate.
Circular No. 153/09/2021-GST dt. June 17, 2021
6. GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them -
It has been clarified that guaranteeing of loans by Central or State Government for their undertaking or PSU is specifically exempt under Entry No. 34A of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 “Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the banking companies and financial institutions.”.
Circular No. 154/10/2021-GST dt. June 17, 2021

7. Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System -
It has been clarified that laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, in terms of Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading.
Circular No. 155/11/2021-GST dt. June 17, 2021

FDI increased in insurance: As per press note 2(2021), Para 5.2.22 of the FDI Policy 2020 is amended on 14th June, 2021. The amendments are as follows:
1. FDI limit in the insurance sector is increased from 49% to 74% under automatic route.
2. FDI in insurance broking business is increased to 100% under automatic route.

Mandatory FSSAI number on invoices:
1. Section 31 of Food Safety and Standard Act, 2006 mandates that every food business operator is required to obtain FSSAI license or registration prior commencing any food business. 
2. The implementation of FSSAI Act 2006 and Rules and Regulations made thereunder’ depends upon the FSSAI License and Registration number. 
3. It has been decided to mandate declaration of 14-digit FSSAI License of Registration number on cash receipts/ purchase invoices/cash memo /bills etc. by all food businesses. 
4. When any operator issues 2 transaction documents such as in case of transporters issuing transport challan/ Bill etc. and an invoice, then FSSAI number needs to be mentioned on both documents. 
5. The only exemption will be the GST e-way bill and such other govt documents which are system generated.

India is likely to pitch for a wider application of the global proposal to tax multinationals endorsed by the G7, seeking that it cover all of those identified by the OECD and not just the top 100 as, well as a higher share, said officials aware of the matter. Earlier this month, the G7 countries endorsed a proposal to impose a minimum tax on MNCS and digital enterprises, which have usually paid low taxes or avoided taxes or avoided taxes altogether by shifting profits to low tax jurisdiction. The G7 proposal envisages running a pilot with 100 MNCS as against about 2,000 that were identified by the OECD. If the proposal is accepted, India would have to remove the 2% equitation levy on sales of digital multinationals even as the current proposal may not yield as much revenue. A wider application would ensure India does not lose tax under the new regime. The proposal is expected to taken up in July at the G20-OECD Inclusive Framework on base erosion profit sharing (BEPS). The framework brings together 139 countries. The G20 is a group of key global economic including India that account for 80% of word GDP. “India would want a wide application of the tax proposal to cover all MNCS,” said a government official, adding that restricting it to a select few would not achieve the objective few would not achieve the objective behind the move.

The Delhi Government Transport Department will impose a fine of INR 10,000 on the owners of 10-year old diesel vehicles and 15-year old petrol vehicles found on the road and confiscate and scrap them. This new rule is a follow-up to the recently announced vehicle scrappage policy to encourage the scrapping of old cars in order to address the problem of vehicular pollution that the Delhi-NCR faces. While the fine of INR 10 000, compoundable by INR 5 000, is laid down in the motor vehicles act, following the Supreme Court judgement, the transport department can now order to impound or dismantle these vehicles found on the road. The Delhi government has now listed four authorised vehicle scrappers since the policy was first announced in 2018. An estimated 3.5 lakh vehicles plying on the roads of Delhi are due for scrapping and therefore would need more scrapping centres. At the current rate, it would take years to scrap these vehicles. On October 29, 2018, the Supreme Court prohibited the operation of 15-year-old petrol and 10-year-old diesel vehicles in the national capital region and directed the transport department to issue an announcement that such vehicles would be impounded if found operating.

The labour ministry has deferred by three moths the compulsory Aadhaar verification for filing of monthly provident fund returns by employer. The decision is aimed at ensuring statutory deposits are not held back due to non-compliance and it comes as breather to both employer and employees. “The date of implementation for filing ECB (Electronic Challan cum Return) with Aadhaar verified UANS (Universal Account Number) has been extended to September 1,2021,” the employees provident fund organization said on Tuesday.

25 problems on the income tax portal : 
1. DSC not getting registered or updated
2. New Incorporated companies or Firms are not able to register themselves on ITD Portal
3. Forget password option not working
4. IT Returns in PDF can’t be downloaded
5. IT acknowledgements in PDF can’t be downloaded
6. DIN Number not getting auto populated in new ITD website
7. Challan Numbers not getting validated
8. no tab for VSV tab
9. Unable to file TDS Returns
10. Unable to file 15CA/15CB
11. E proceedings tab not workings
12. Grievances registered on ITD website are deleted without addressing
13. Old demands outstanding not reflected
14. Old Grievances registered not reflected
15. Unable to file Income Tax Returns for FY 2021
16. Accounts get locked, if we try to login and not able to login due to non-operatibility of site
17. Unable to raise refund reissue request
18. Unable to view Form 26AS
19. PAN Number is not shown as valid
20. Mismatch in PAN Data is shown when technically there is no mismatch
21.JSON Utility not available
22.while filing Verification in ITR if we select ‘Self’in capacity then Name disappeared n Shown in validation errors.
23. UDIN is also not able to update for last month audit and other certification.
24. Rectification of return options not available.
25. Return processed in March 2021 now shows under processing in view details.

Securities Exchange Board of India (‘SEBI’) vide its Circular dated June 15, 2021, has provided relaxation in the provision related to a minimum vesting period of one year in case of Employee Stock Options (“ESOP”) and Stock Appreciation Rights (“SAR”).In view of the COVID-19 pandemic situation to facilitate the families of deceased employees (who have deceased on or after April 1, 2020) with financial assistance due to the Covid-19 pandemic, SEBI has decided to exempt the requirement of a minimum vesting period.

SEBI on June 10, 2021 notified the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 repealing Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009.
This is a step forward to enhance transparency and efficiency of the entire delisting process. With this new Delisting Regulations, it aimed to achieve the objective of enhancing disclosures to help investors to take informed investment decisions, refine process, rationalising the timelines so as to complete the delisting in a time bound manner, plugging gaps, update references to the Companies Act, 2013 and other securities laws and also to streamline the delisting regulations to make it robust, efficient, transparent and investor’s friendly.

Bitcoin hit a two-week peak just shy of $40,000 on Monday, after another weekend reacting to tweets from Tesla boss Elon Musk, who fended off criticism over his market influence and said Tesla sold bitcoin but may resume transaction using it. Bitcoin has gyrated to Musk’s views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment. He later said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.

CBIC Notifies 5% GST on 18 Covid Relief Items. The central board of Indirect taxes and customs (CBIC) Tuesday notified 5% GST on 18 covid- related relief material including oxygen concentrates and remdesivir injection, and reduced the tax on ambulances from 28% to 12%, till September 30. The Board has rescinded the notification imposing 12% integrated good and services tax (IGST) on oxygen concentrators import for personal use.

Income tax department makes it mandatory to link your PAN with Aadhaar by 30th June, 2021. If not linked, the PAN will become invalid. This will attract higher TDS rate and may impact your financial transaction. Link your PAN with Aadhaar.

Direct tax collection for the first quarter of the current financial year has surpassed the mop-up in the corresponding period of FY19-20. the total direct tax collection for FY 21-22 as on June 14 stood at Rs 1.68 lakh crore up by 66 percent from Rs 1.01 lakh crore in FY19-20, the year before the Covid-19 pandemic. This number is likely to increase as the advance tax payment will end only by midnight today, said sources.

The Finance Minister on 1 February 2021 has introduced new Section 206AB vide Finance Act 2021. This Section is applicable for FY 2021-22 w.e.f. 1 July 2021. This amendment has been introduced to ensure filing of return of income by those persons who are required to file return of income but are willfully not filing return of income. As per the amendment, in case, the person has not filed the return of income for past two financial years wherein timelines prescribed for filing return of income has expired (i.e. FY 2018-19 and FY 2019-20), then the TDS shall be deducted at the higher rate as prescribed under section 206AB of the Income-tax Act, 1961 (‘the Act’). Apart from the above, by virtue of Section 139AA(2) of the Act linking of Aadhar with PAN within the prescribed timelines is mandatory. In case of non-linking the existing PAN issued shall be considered as inoperative and TDS shall be deducted at the higher rate as applicable in case of person who does not have PAN i.e. @ 20%.

MCA allows Board meetings to be held via video conference on restricted matters. MCA has omitted Rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 to relax the requirement of holding Board meetings with physical presence of directors in respect of the following matters:
approval of the annual financial statements;
approval of the Board’s report;
approval of the prospectus;
approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover. Now, these businesses can be transacted in Board meetings held through video conferencing or other audio-visual means by duly ensuring compliance of rule 3 of the Companies (MBP) Rules, 2014. Earlier, MCA had given such relaxation through a circular till 30th June, 2021.

Employers kindly Ensure Aadhar seeding for all PF members. You can do ECR filing only for those whose Aadhar numbers are seeded & verified with UANs. 

Online fashion industry witnessed an order volume growth of 51 per cent and gross merchant value (GMV) increase of 45 per cent in FY21 as compared to the previous financial year. The faster volume growth as compared to GMV has led to a marginal decline of 4 per cent in the average order value, the report titled 'Fashion E-commerce Report' said.

The State Bank of India (SBI) has announced that SBI app, Internet Banking, UPI remain down due to maintenance activity.  The services will be put on a halt from 2:40 hours to 6:40 hours on June 13, 2021. The SBI customers are advised to complete their important bank-related work by today or they can postpone it till June 14. During this period, INB/ YONO/ YONO Lite and UPI will be unavailable.

The Finance Act, 2021 notified the various amendments in the CGST and IGST Acts 2017 which will come into effect from the upcoming month i.e. July 1, 2021. 
1. New clause (aa) of Section 7(1) of the CGST Act The Finance Act, 2021 amended section 7 of the Central Goods and Services Tax Act, 2017, with retrospective effect from the 1st July, 2017, by inserting a new clause (aa) in sub-section (1) thereof, so as to ensure levy of tax on activities or transactions involving supply of goods or services by any person, other than an individual, to its members or constituents or vice versa, for cash, deferred payment or other valuable consideration. It has also inserted an explanation stating that the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another. 
2. Interest to be paid on net tax liability The Finance Act, 2021 amended section 50 of the CSGT act to substitute proviso to sub section(1) with retrospective effect from 1st july,2017.Now, the interest has to be paid on net tax liability provided the person has not been issued any show cause notice under section 73 or section 74. 
3. Amendment in Schedule II The Finance Act, 2021 omitted paragraph 7 of Schedule II to the Central Goods and Services Tax Act, with retrospective effect from the 1st day of July, 2017, consequent to the amendments made in section 7.

Department of Telecommunications (DoT) has launched a portal (tafcop.dgtelecom.gov.in) that allows individuals to check the usage of a mobile number on his or her name without their permission or knowledge. Max 9 numbers can be registered against one Id/Name.

DGFT has mandated all IEC holders to update the Import Export Code (IEC) before 01st July 2021. The IEC not updated within the prescribed time would be deactivated and will have impact on your upcoming Import/Export transactions. Please update your IEC asap.

Infosys said it expects the system to stabilize in the course of this week. Finance Minister  had asked Infosys and its Chairman Nandan Nilekani to fix technical glitches being encountered on the income tax department’s new e-filing website, after users flooded her Twitter timeline with complaints.

Bank charges on ATM increased:
1. The Reserve Bank of India on Thursday allowed banks to raise charges on automated teller machines to Rs 21 per transaction. Banks can levy charges on customers within this ceiling, once they exhaust the free transaction limit.
2. In June 2019, a committee headed by the chief executive officer of Indian Banks’ Association had recommended a charge of Rs 24 per transaction to customers.
3. The revised charges are in order to compensate banks who will have to shell out more as interchange fee from Aug. 1 ( Rs 17 from earlier Rs 15). 
4. The RBI said the latest revision in charges were done considering the increasing cost of ATM deployment and expenses towards ATM maintenance incurred by banks and white label ATM operators.

According to an ED statement, it initiated FEMA investigation on the basis of the ongoing money-laundering investigation into Chinese-owned illegal online betting applications. Cryptocurrency exchange WazirX on Friday said it is yet to receive any showcause notice from the Enforcement Directorate (ED) and is in compliance with all applicable laws. Assuring all its users that their “funds are absolutely safe on WazirX”, it said it will fully cooperate with the investigation if it receives a formal communication from the ED.

India may lose 3-10% GDP annually by 2100 due to climate change. India may lose anywhere around 3 to 10 per cent of its GDP annually by 2100 and its poverty rate may rise by 3.5 per cent in 2040 due to climate change, according to a report released by the London-based global think tank Overseas Development Institute on Tuesday. The report finds that even if the temperatures are contained to two degrees Celsius, India will lose 2.6 percent GDP annually, and in case the global temperatures were to increase to 3 degrees Celsius, this loss will magnify to 13.4 per cent annually. The report further states that Income and wealth levels, gender relations and caste dynamics will likely intersect with climate change to perpetuate and exacerbate inequalities

G7 agrees to a minimum tax rate of 15%:
1. The G-7 consisting a group of advanced countries- Canada, France, Germany, Italy, Japan, the United Kingdom, and the U.S, agreed to a global minimum tax of 15% at their meeting in London. 
2. This will enable the Europeans to increase the tax rate of tech companies having headquarters in US but significant operations in Europe. It will also enable countries to levy taxes on the overseas earnings of firms headquartered in tax havens. 
3. Negotiators hope to advance progress toward a binding agreement at a meeting of leaders of the Group of 20 in Italy in July.
4. Not all European countries agree. Ireland which has attracted giants such as Apple, Google and Facebook, says that it would not increase its tax rate of 12.5%. 
Flip side: G-7 countries all already have corporate tax rates above 15 %. The question is if others will follow suit. 

After El Salvador’s historic move to adopt Bitcoin as legal tender (rendering it full currency status), things are looking brighter back home in India for crypto-enthusiasts. Top sources tracking the industry told this publication that the government has moved away from its earlier hostile stance towards virtual currencies and will most likely classify Bitcoin as an asset class in India soon. Market regulator Securities and Exchange Board of India (SEBI) will  oversee regulations for the cyptocurrency sector after Bitcoin’s classification as an asset class, sources added. India’s  crypto industry is also in talks with the finance ministry  regarding the formulation of a new set of regulations and industry sources point out that an expert panel at the ministry is studying the matter.

The Congress of El Salvador has approved a law that will classify Bitcoin as legal tender in the Central American country, its president said, making it the world’s first nation to adopt a cryptocurrency. “The #BitcoinLaw has just been approved by a qualified majority” in the legislative assembly, President Nayib Bukele tweeted after the vote late Tuesday. He said a majority of 62 out of 84 lawmakers approved the bill, which he proposed last week.

Several high net-worth individuals (HNI) and promoters have began the method of shifting out their companies and households to the UAE, Singapore and the United Kingdom even because the second Covid wave exhibits indicators of subsiding in India. In the previous few months, many businessmen have created middleman companies primarily based in these international locations in order that the operations may very well be dealt with from these areas. Insiders say that the second Covid wave uncovered many businessmen and their households to the lethal virus and lots of them are wanting to transfer to international locations that supply higher well being infrastructure and safety of high-value lives.
In the previous one month, a number of business households have regularly began “creating fact patterns” in order that they don’t get caught with tax and different regulatory points. Under the Place of Effective Management (POEM) framework, if the tax division thinks {that a} overseas subsidiary is managed from India, home tax may be levied even on overseas revenue of those subsidiaries. The tax division appears to be like at fact patterns and additionally the place the choice makers of an organization reside.

Latest rate of exchange of one unit of foreign currency equivalent to Indian Rupee with effect from 4th June,2020
Foreign Currency          For Imported Goods                       For Exported Goods
1 US Dollar                          73.95                                                72.25
1 Jap Yen                           0.6790                                               0.6540
1 Euro                                 90.85                                                87.65

CBIC seeks to further amend notification No. 6/2016-Customs (ADD) dated 8th March, 2016 to extend the levy of Anti-Dumping duty on Phenol originating in or exported from European Union and Singapore, up to and inclusive of 31st October, 2021.
CBIC seeks to further amend notification No. 23/2016-Customs (ADD) dated 6th June, 2016 to extend the levy of Anti-Dumping duty on Polytetrafluoroethylene originating in or exported from Russia, up to and inclusive of 31st October, 2021
The export of Amphotericin-B injections used for Black fungus disease falling under the ITC 30049029 & 30049099 is restricted from 1st June 2021

Government department and a local authority are excluded from E Invoicing provisions.

Gst Interest shall be levied only on the portion of the tax which is paid by debiting the electronic cash ledger.

The RBI has made funds available for the industries such as hotels, transport and tourism but the question remains as to whether these industries have to appetite for fresh borrowing when their operations are paralyzed in the lockdowns the central bank has created a separate liquidity window of 15,000 Crore and offers incentives from banks which will be lending to the contract intensive sectors travel agents, private bus operators, rent a car service providers, spa clinics, and beauty parlors can borrow funds under this facilities facility for Three years at repo rate.
RBI on Friday kept the report rate unchanged at 4% a year banks, on the other hand, can park their surplus liquidity up to the size of the loan book created under this scheme with the RBI and earn 40 basis points higher than what they normally do through the reverse repo window. This on tab liquidated window will remain open till March 31, 2020 Governor DAS said. There will be a separate liquidity window for this facility we are always ready to lend  are eagerly looking to deploy our surplus funds but the trigger has to come from the demand side  senior bank executives said reacting to the Policy announcement.
Doubts have also been raised as to whether the banks would need any borrowing window immediately as they are sitting on idle funds RBI later clarified that banks willing to lend to certain contract intensive sectors using their own resources without availing from the on tap facility will also be eligible for the incentive structure.

The central bank also announced another fresh liquidity support of 16,000 crore for small industries development Bank of India for on lending or providing refinance to micro and medium enterprises particularly smaller MSMEs and other businesses including those in credit deficient and aspirational districts.

Richest Indian Mukesh Ambani drew no salary from his flagship firm Reliance Industries Ltd in the fiscal year ended March 31 as he voluntarily gave up remuneration in light of the pandemic hitting the business and the economy. In the previous fiscal year, he drew a Rs 15 crore salary from the company -- the same as in the previous 11 years. Ambani has kept salary, perquisites, allowances and commission together at Rs 15 crore since 2008-09, forgoing over Rs 24 crore per annum.

North Delhi Municipal Corporation (NDMC) on Tuesday told the Delhi High Court that it was planning to sell or lease out 37 high-value properties in the next 6-12 months to generate more revenue to ensure timely payment of salaries to its employees. The court on Monday had warned that it was going to start attachment of NDMC’s properties to ensure the employees are paid their salaries. NDMC’s Commissioner Sanjay Goel told the court that Novelty Cinema has been leased out for Rs 37 crore and another commercial place at Karampura was leased out for Rs 7 crore last month.
“By October or November, the procedure of leasing out or outright sale of nine properties will be completed. We are expecting a revenue of 700-800 crores out of them,” Goel told the court.

The names of two state-run banks and one general insurance company that can be privatised have been submitted by NITI Aayog to the Core Group of Secretaries on Disinvestment as was announced in the Union Budget for 2021-22.
Finance minister Nirmala Sitharaman has assured that the "interests of workers of banks which are likely to be privatised will absolutely be protected whether their salaries or scale or pension all will be taken care of".

Income Tax Return filing process is paused for six days after scrapping of the e-filing site – incometaxindiaefiling.gov.in – from the midnight of May 31, 2021. The filing process will resume from June 7, 2021, a day after launch of the new e-filing site – incometax.gov.in – on June 6, 2021.

Last date for linking PAN with Aadhaar extended from 31.3.2021 to 30.6.2021.

Due Date for Deposit of Advance Income Tax is 15-06-2021. Please deposit 15% For 1st instalment on or before 15-06-2021 to avoid interest on income tax which is not allowable as expense. 

With an aim to enhance India’s manufacturing capabilities in pharmaceutical sector and create global champions from India who have the potential to grow in size and scale using cutting edge technology, Operational guidelines issued for Production Linked Incentive scheme for Pharmaceuticals
1. The Government of India had approved PLI scheme for pharmaceutical sector. 
2. Notification in this regard was thereafter issued by Ministry of Chemicals and Fertilizers (Department of Pharmaceuticals) on 3 March 2021. 
3. The operational guidelines detailing therein the process, requirements, etc. to be followed by businesses while making an application has been released. 
4. The application window for the scheme is open for a period of 60 days i.e. from 2 June 2021 to 31 July 2021.

India’s merchandise imports in May 2021 was USD 38.53 billion, an increase of 68.54% over USD 22.86 billion in May 2020 and a decline of 17.47% over USD 46.68 billion in May 2019.
India’s merchandise exports in May 2021 was USD 32.21 billion, an increase of 67.39% over USD 19.24 billion in May 2020 and an increase of 7.93% over USD 29.85 billion in May 2019. 

Central Board of Indirect Taxes and Customs notified IGST exemption to Covid-19 vaccines, remdesivir injections and its raw materials and other medical supplies used in treatment till August-end. Imports of mucormycosis treatment drug Amphotericin B have also been exempted from IGST till the same period.

GSTN has enabled auto-population of HSN/SAC description based on *HSN/SAC Code or Key Words Description. GSTR-1 HSN-Wise Summary of Outward Supplies. 

The National Commission for Homoeopathy - Submission of List of the Homoeopathy Practitioners. The Commission shall submit the list of the Homoeopathy Practitioners to the Central Government
once in every six months in Form A and Form B. The Commission shall submit the Forms referred to in sub-rule (1) in a portable document format (PDF) by electronic mode and forward two hard copies of the same by speed post to the Joint Secretary to the Government of India in-charge of the affairs of the National Commission for Homoeopathy in the Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy. Form A is for List of Homoeopathy Practitioners possessing recognised medical qualifications enrolled in State Register or National Register. Form B is for List of the Homoeopathy Practitioners possessing medical qualifications from outside India and permitted to practice in India for a limited period. - Notification dtd 01.06.2021.

National Commission for Indian System of Medicine -Submission of List of the Medical Practitioners. The Commission shall submit the list of medical practitioners to the Central Government once in every six months in Form A and Form B. The Commission shall submit the Forms referred to in sub-rule (1) in a portable document format (PDF) by electronic mode and forward two hard copies of the same by speed post to the Joint Secretary to the Government of India in-charge of the affairs. Form A is for List of medical practitioners possessing recognised medical qualifications enrolled in State Register or National Register. Form B is for List of the medical practitioners possessing medical qualifications from outside India and permitted to practice in India for a limited period- Notification dtd 01.06.2021.

Sh. PC Mody handing over the charge of Chairman, CBDT to Shri Jagannath Bidyadhar Mohapatra, Member, CBDT, who will hold the charge in addition to his regular duties. His service ends in April next year.
J.B. Mohapatra, a 1985-batch Indian Revenue Service officer, was on Monday given the additional charge as CBDT chairman after the extended tenure of incumbent P C Mody ended, a government order said.

CBIC amend notification No. 28/2021-Customs to exempt customs duty on import of Amphotericin B (Black Fungus Medicine), and also to extend the exemptions under the said notification up to 31st August, 2021. Amendment is made in on lines of 43rd GST council meeting recommendations vide Notification No. 31/2021-Customs Dated: 31st May, 2021.

Govt amends Ad hoc Exemption Order No. 4/2021-Customs dated the 3rd May, 2021, to extend the exemption from IGST on imports of specified COVID-19 relief material donated from abroad, up to 31st August, 2021. Amendments is made  in lines of 43rd GST council meeting recommendations vide Ad Hoc exemption order no. 05/2021 dtd 31.05.2021.

The Reserve Bank of India (RBI) has asked banks, NBFCs and payment system providers not to refer to its earlier virtual currencies-related circular, that was issued in April 2018 and later aside by the Supreme Court, in their communications to customers. The latest directive comes against the backdrop of some banks and regulated entities citing the circular and cautioning customers against dealing in virtual currencies.

EPFO allows its members to avail second COVID-19  advance. Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member's credit in the EPF account, whichever is less, is provided. Members can apply for lesser amount also.

GDP contracts by 7.3%:
1. GDP grew by 1.6% in Q4 of FY 20-21 and contracted by 7.3% in the entire FY 20-21 as per provisional estimates released by MOSPI. 
2. A contraction was seen in trade, hotels, transport, communication and services related to broadcasting at 2.3 % in Q4, better from a contraction of 7.9 % in Q3. The construction sector showed a growth of 14.5 %, from a growth of 6.5 % in Q3. 
3. For FY 20-21, agriculture growth has been estimated at 3.6 %, while mining contracted by 8.5 %. The manufacturing shrunk by 7.2 %, while electricity growth came in at 1.9 %. The construction contracted by 8.6 %, while trade, hotels grew at a negative rate of 18.2 %. The financial and real estate sector shrunk by 1.5 %, while public administration growth too was negative at 4.6 %.
4. The GDP had contracted 7.4% in Q2 and 24.4% in Q1 of FY 20-21. 
Source: MOSPI 

Sbi and hdfc banks have warned their customers not to use their accounts or credit cards to buy crypto currencies. In case of violations, the accounts and cards will be suspended.
Emails have gone out from SBI Card to its customers. “Please note, usage of credit card for transactions on virtual currency merchant platforms may lead to suspension/cancellation of your SBI Credit Card in terms of the Cardholder Agreement,” an email dated May 28 said.
E mail from HDFC Bank -- To comply with the regulatory guidelines (RBI vide guidelines DBR.No.BP.BC.104 /08.13.102/2017-18 dated April 06,2018), the Banks are advised to exercise due diligence by closely examining the transactions carried out in the account on an ongoing basis.
On May 11, some large cryptocurrency exchanges in India began informing their customers that deposits on their platforms were disabled due to issues with their payments partner. This, as banks have been pushing payment processors to stop using their nodal accounts for facilitating crypto transactions. The notices to customers take the process of curbing cryptocurrency trading in India a step further even though it is not formally banned. A Bill looking to ban cryptocurrencies had been listed in the budget session of parliament but was not introduced.

EPFO has taken a big decision regarding Provident Fund. As per the information, the new rule will be applicable on the PF account from June 1, 2021. Now the employer has been given the responsibility to make your account Aadhaar verified. If they fail to do so can lead to the stoppage of employer contribution credited to your account. Therefore, it is important that you link your PF account with Aadhaar in time. UAN should also be Aadhaar verified. If UAN is not aadhaar verified, then its ECR- electronic challan cum return will not be filed. Also, if the accounts of the holders are not Aadhaar verified, they will not be able to use the services of EPFO.

An AD in India may lend to a person resident outside India for making margin payments in respect of settlement of transactions involving Government  Securities  by  the person  resident  outside  India,  subject  to such terms and conditions as may be specified by the Reserve Bank.

Step by step guide to apply for Bulk e-Passes for activities opening up from 31st May 2021
1. Go to the website link https://epass.jantasamvad.org/epass/init/
2. Click on the Click Here button in blue color. 
3. In the What do need help with? box, click on the arrow on the right side of the box. 
4. Select option Bulk e-Passes for activities opening up from 31st May 2021
5. Click on Submit. A new page will open which will take you to an application form. 
7. To fill the application form, 3 documents are needed:
a. ID proof of the Proprietor/Director/Owner of the unit
b. GST Registration or Factory License or MCD License or PAN Card of the unit
c. Request on Letterhead of the unit requesting e-Passes for employees
8. Fill in the application form by entering details of the manufacturing unit. 
9. In the _Employee details* section add the information about the employees. 
10. To add details for more than three employees, click on Add/View More Employees
11. To add the required documents click on Choose File and upload it. 
14. Check the I acknowledge… box.
15. Submit the application form. 
16. When your application for e-Passes is approved, each of the employees will receive an SMS on their contact number with the link to download their e-Pass.

The reserve bank of India on Friday fined HDFC bank 10Cr. for irregularities found in its auto loan book. The regulator found the bank was deficient in compliance, the RBI said that after receiving a complaint from a whistleblower, it had conducted an examination in the marketing and sales of third-party non-financial product to the banks auto loan customer. Last year it was revealed that some employees at the auto loan department allegedly forced customer to buy a GPS device bundled with the car loans. These errant employee started forcefully bundling the GPS devices in the car loan to meet sales target and potential track borrowers in the event of a default.

GST Council Meeting Key decisions on 28th May 2021 are as follows:
1. GST Exemption to some COVID-19 supplies till 31st August 2021.
2. A Particular Medicine for Black Fungus also exempted.
3. GoM to be formed to check if further reductions to be given to new items, GoM to submit reports before 8th June.
4. GST Amnesty Scheme Announced For Pending Return From July 17 to April 21 :
If you don’t have tax liability than late fee 500.
if you have tax liability than late fee 1000.
But dealer has to file pending return 3B in between 1st June to 31st Aug 2021.
5. Late Fees for Future Return :-
if dealer don’t have Output Tax than 500 Per Return.
if last year sales is 1.5 Cr than is 2000 Late Fees Per Return
if last year sales is 1.5 Cr to 5 Cr than late fees 5000.
if last year sales is more than 5 Cr than 10000.
if Composition don’t have tax liability than 500 and if have than 2000 for GSTR 4.
for GSTR 7 it’s 50 Per day and maximum 2000.
Note - Amount is for both CGST and SGST combined.

Cryptocurrency exchanges are set to approach the Supreme Court to seek direction on whether the reserve bank of India can direct banks to stop dealing with them despite an early ruling by the Apex court quashing RBIs order to ban cryptocurrencies. This came after the RBI through an informal Diktat asked Bank to stop dealing with cryptocurrency exchanges in the last month or so some of the banks have stopped providing services to the exchanges which has led to a major disruption the exchanges were somehow managing their businesses through payment processing company such as PTM or P2P however PTM too stop providing services to the exchanges from last week The exchanges Are now coming together to seek clarity around the payment choke.
Insiders say that there is a growing discomfort as bank have restricted the services to facilitate the transactions even after last year Supreme Court verdict where it quashed RBI order to ban crypto transactions the bank are not lending their services to prepare exchanges and crypto trader’s keeping this issue in mind the impact on business activity.  Most of the major crypto exchanges are looking to knock the door of supreme court again to get a clear-cut directive regarding banking services so that uninterrupted services Can be provided to the traders.

Key highlights of the RBI Annual Report:
1. The onset of the second wave has triggered a raft of revisions to growth projections, with the consensus gravitating towards the Reserve Bank’s projection of 10.5%. 
2. CPI inflation is expected to average 5% during 2021-22 - 5.2% in Q1:2021-22; 5.2% in Q2; 4.4% in Q3; and 5.1% in Q4, with risks broadly balanced.
3. The conduct of monetary policy in 2021-22 would be guided by evolving macroeconomic conditions, with a bias to remain supportive of growth till it gains traction on a durable basis while ensuring inflation remains within the target.
4. With the lifting of the interim stay on asset classification standstill by the Hon’ble Supreme Court on March 23, 2021 banks’ asset quality will need to be closely monitored in coming quarters. 
5. Stress tests indicate that Indian banks have sufficient capital at the aggregate level even in a severe stress scenario. 
6. Bank frauds of Rs.1 lakh and more fell by 25% in value to Rs.1.38 trillion in the previous fiscal with the number of such cases also seeing a decline of 15% during the year. 

Contradiction on extension of time limitation is over:
1. The SC had extended the period of limitation for filing of petitions, applications, suits, appeals, and all other proceedings vide its order dated 23rd March 2020. The said order has been extended many times. 
2. The SC vide its order dated 8th March 2021 has directed the exclusion of the period from 15th March 2020 to 14th March 2021 while computing the period of limitation. 
3. Thereafter on account of the outbreak of the second wave of COVID, the SC vide its order dated 27th April 2021, has restored its original order dated 23rd March 2020 and extended the period of limitation until further order.
4. The real confusion arose because, CBDT issued a circular 8/2021, dated 30th April 2021 providing various relaxations upto 31st May 2021 in the time limits including time limitation to file an appeal to CIT(A). 
5. Now, the contradiction was that, SC had extended period of limitation until further orders but CBDT has extended only upto 31st May 2021. So obviously a clarification was expected from the CBDT. 
6. So finally, CBDT issued another circular dated 10/2021 dated 25th May 2021 which provided that if different relaxations are available to the taxpayer for particular compliance, the taxpayer is entitled to the relaxation which is more beneficial to him.
7. The CBDT has thus laid to rest the contradiction and the period of limitation stands extended until further orders. 

Gst late fees levied as per the RTI reply - Total Late fees From July 17 to till February 2021 = 1612 Cr (App)
FY 2017-18 = 102 Cr
FY 2018-19 = 480 Cr
FY 2019-20 = 570 Cr
FY 2020-21 (Till Feb) = 460 Cr

The government on Tuesday said it is fully prepared to implement mandatory hallmarking of gold jewellery and artefacts from June 1, 2021. 400 new gold jewellery hallmarking centres to come up by end of next month.
Gold hallmarking is a purity certification of the precious metal and is voluntary in nature at present. The Centre, in November 2019, had announced that hallmarking of gold jewellery and artefacts would be made mandatory across the country from January 15, 2021. The government had given jewellers more than a year to shift to hallmarking and register themselves with the Bureau of Indian Standards (BIS). But the deadline was extended for four months till June 1 after the jewellers sought more time to implement in the wake of the Covid-19 pandemic.
“No extension has been sought. BIS is already fully energised and involved in giving approvals to jewellers for hallmarking,” Consumer Affairs Secretary Leena Nandan said.
Elaborating more, BIS Director-General Pramod Kumar Tiwari said, “From June, we are fully prepared to implement (mandatory hallmarking). And at present, we have received no proposal to extend the date.”
So far, 34,647 jewellers have registered with the BIS.

As per the recent press release by Govt, Measures taken on the fronts of Foreign Direct Investment (FDI) policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The following trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors:
1. India has attracted highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher as compared to the last financial year 2019-20 (US$ 74.39 billion).
2. FDI equity inflow grew by 19% in the F.Y. 2020-21 (US$ 59.64 billion) compared to the previous year F.Y. 2019-20 (US$ 49.98 billion).
3. In terms of top investor countries, ‘Singapore’ is at the apex with 29%, followed by the U.S.A (23%) and Mauritius (9%) for the F.Y. 2020-21.
4. ‘Computer Software & Hardware’ has emerged as the top sector during F.Y. 2020-21 with around 44% share of the total FDI Equity inflow followed by Construction (Infrastructure) Activities (13%) and Services Sector (8%) respectively.
5. Under the sector `Computer Software & Hardware’, the major recipient states are Gujarat (78%), Karnataka (9%) and Delhi (5%) in F.Y. 2020-21.
6. Gujarat is the top recipient state during the F.Y. 2020-21 with 37% share of the total FDI Equity inflows followed by Maharashtra (27%) and Karnataka (13%).
7. Majority of the equity inflow of Gujarat has been reported in the sectors `Computer Software & Hardware’ (94%) and `Construction (Infrastructure) Activities’ (2%) during the F.Y. 2020-21.
8. The major sectors, namely Construction (Infrastructure) Activities, Computer Software & Hardware, Rubber Goods, Retail Trading, Drugs & Pharmaceuticals and Electrical Equipment have recorded more than 100% jump in equity during the F.Y. 2020-21 as compared to the previous year.
9. Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during F.Y. 2020-21. It invested US$ 2816.08 million in comparison to US$ 89.93 million reported in the previous financial year.
227% and 44% increase recorded in FDI equity inflow from the USA & the UK respectively, during the F.Y. 2020-21 compared to F.Y.2019-20

Stock brokers’ association Anmi has urged the markets regulator, Sebi to reconsider the proposed 100 per cent levy on intra-day trade peak margins, as the higher-margin will reduce hedging opportunities. In a letter to Sebi on May 15, the Anmi said there is a great disconnect between what is being collected from clients and what needs to be collected vis-a-vis the attendant risks arising in intraday trades.

Govt Integrates E-way Bill with FasTag, RFID; GST Officers to Have Real-time Data of CVs (GST officers have been armed with real-time data of commercial vehicle movement on highways with the integration of the e-way bill (EWB) system with FasTag and RFID, a move which will help in live vigilance of such vehicles and check GST evasion).

MCA has clarified on offsetting the excess CSR spent for FY 2019-20.

Latest rate of exchange of one unit of foreign currency equivalent to Indian Rupee with effect from 21st May,2021
Foreign Currency                       For Imported Goods             For Exported Goods
1 US Dollar                                     74.10                                             72.35
1 Jap Yen                                      0.6835                                            0.6585
1 Euro                                           90.80                                              87.60

The Goods and Services Tax (GST), Ranchi, while responding to an RTI application filed by an individual, revealed that the Government has collected Rupees 1,07,02,47,136/- towards late fee on delay in filing GSTR 3B and other GST Returns in last two years. However, there is no information regarding the number of late fees collected from 2017 to 2019. Responding to the application, the CGST & Central Excise Ranchi Commissionerate provided the following information. “Late Fee Collected by the Govt. on GSTR 3B and other GST returns for the period starting from 01.07.2017 to 30.04.2021 — 01.07.2017 to 31.03.2019 – Data not as a liable. 01.04.2019 to 30.04.2021 – Rs. 1,07,02,47,136/-.“

Lockdown in the areas of NCT of Delhi further extended up to 5 am of 31.5.2021 vide DDMA order dated 23.5.2021 due to the surging pandemic Covid.

The government expects the full impact of the lockdown across states to reflect in tax numbers, especially goods and services tax (GST), in June, although it believes that the impact will be significantly lower than last time when the entire country was shut down. “The numbers in April have been reasonably okay and May will also not be too bad, but we will see some impact next month,” a senior finance ministry official.
While the government had managed to rake in a record Rs 1.4 lakh crore from GST in April (based on March sales), the returns for this month, which are being filed, will show the impact to an extent. Further, the first instalment of advance tax (for income and corporate taxes) will be due on June 15 and it will give the government an idea of the overall economic situation in the first quarter.

India has technically slipped below Bangladesh in terms of per capita income as the neighboring country reported its per capita income at $2,227 in the financial year 2020-21— over 9 per cent jump from $2,064 in 2019-20. Latest official data show that India’s per capita income reached $1,947.417, thanks to the sharp contraction in the economic growth due to Covid-19 pandemic and the subsequent nationwide lockdown.

RBI transfers Rs 99122 Cr to the Govt: 
1. Sec 47 of the Reserve Bank of India (RBI) Act, 1934  mandates transfer of surplus profit to the Central Government. 
2. Accordingly, RBI has approved the transfer of Rs 99,122 crore as a surplus for nine months of the previous financial year.
3. The surplus amount depends on two elements – how much the Bank earned in a given year and the quantum of contingency reserve the Bank wants to maintain.
4. The dividends have surged from a moderate Rs 10,000 crore two decades back in 2001-02 to nearly Rs 1 lakh crore, primarily because the provision for contingency reserves have reduced from 12%, which was a standard for many years, to 5.5% as per the Bimal Jalan Committee recommendations. Note that after Malegaon Committee recommendations in 2014, consistently higher amounts have been transferred to the Government. 
5. This is the second highest transfer after 2018-19, when Rs 1,75,987 crores were transferred as a surplus.

FCRA relaxations:
The validity of Foreign Contribution Regulation Act (FCRA) certificates which have expired or are expiring during the period between September 29 last year and September 30 this year has been extended upto Sep 30th 2021 by the Ministry of Home Affairs (F No II/ 21022/36(58)/2021-FCRA-II). 
Further, The MHA as per a public notice, has permitted existing Foreign Contribution (Regulation) Act (FCRA) account holders to open their “FCRA Account” in the New Delhi Main Branch (NDMB) of the State Bank of India (SBI), 11 Sansad Marg, New Delhi – 110001 up to 30.06.2021. After that date they shall not be eligible to receive foreign contribution in any account other than the “FCRA Account” opened in the NDMB.

The income tax department will launch a new e-filing portal on June 7, the directorate of income tax systems said in a notice to all field units, adding that services on the portal will not be available from June 1 till June 6.
The portal will not be available for taxpayers as well as department officers and therefore officers have been directed not to fix any compliance dates during the six day period. Officers have also been asked to schedule hearings or compliances after June 10, so as to give taxpayers time to adjust to the new portal. Pre-scheduled hearings will be preponed or postponed to after June 10. Any income tax related download or upload of documents to be planned accordingly. 

The crypto bubble that inflated Bitcoin’s value past $1 trillion and added billions to the digital tokens overnight is bursting. Bitcoin plunged almost 30% to $31,000, wiping out more than $500 billion in value from the coin’s peak market value. It has erased all the gains it clocked up following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ethereum, the second-biggest coin, sank more than 40%, while joke token Dogecoin lost 45%.
Bitcoin is now down more than 50% from its record of almost $65,000 set in April. Fueling the volatility is Tesla CEO Elon Musk, whose social-media utterances have whipsawed the crypto community. A statement from the People’s Bank of China on Tuesday reiterating that digital tokens can’t be used as a form of payment added to the selloff.
Cryptocurrency exchanges are implementing alternative method to meet an unprecedented surge in user sign ups after several big banks and payment gateways refuse to serve the crypto industry. Major banks including ICICI bank have cut of crypto exchanges for about a month and have directed payment gateways to stop services to merchants involved in crypto trades for now we are processing some deposits manually which is slower and we are implementing some new deposit solutions which should be online very soon the demand by Indians to be able to invest in crypto have never been greater another crypto exchange has set up online and off-line transaction modes and is in the process of setting up here to Peer to peer channel as well we have set up banking on ramps with prominent service providers in that area and are also setting up a strictly verified and validated P2P channel said Ashish Mehta cofounder of DIGITX. S-ET

Fewer e-way bills have been generated in May so far, with the daily average falling to a one-year low, indicating a sharp slowdown in economic activity owing to the intense second wave of Covid-19.
According to the data by Goods and Services Tax Network (GSTN), the IT backbone of the unified indirect tax regime, 19.4 million e-way bills have been generated on its portal till May 16.
This averages to 1.21 million e-way bills per day compared to 1.95 daily in April and 2.29 million in March, and is the lowest since May 2020 when it fell to 0.87 million bills per day.
This suggests that GST collection for May and June may see a downward trend after touching record levels in April and March.
April saw e-way bill generation decline to 58.7 million from 71.2 million in March, which reflected in the record GST collection in April at Rs 1.41 trillion.

E-Way Bill system is successfully integrated with FasTag and RFID, and details of commercial vehicle movements through the state and national highway tolls are received  into e-Waybill system on a near real time basis. On an average 25 Lakh goods vehicle movements from more than 800 tolls are reported on a daily basis to the e-Way Bill system. It also includes live RFID data sent by 20+ border check posts of Maharashtra state.
Based on the RFID information received, the following reports are made available in the MIS System and also on the Officer's mobile App.
1. Live Vigilance: This report can be used by the Vigilance officers to know the vehicles that have passed the selected tolls without e-Way Bills in the past few minutes. Also, the vehicles carrying critical commodities specific to the state and have passed the selected toll can be viewed. Any suspicious vehicles and vehicles of EWBs generated by suspicious taxpayer GSTINs , that have passed the selected toll on a near real time basis, can also be viewed in this report.  
2. RFID related report for e-Way Bill: This report can be used to know the tolls that have passed by the vehicles of a given e-Way bill number. The details are also shown on the google map for better conception. This will help in analyzing the vehicle movement and identifying the deviations in the origin and destination places from that reported in the e-waybill. Also, no vehicle movement can help in identifying bill trading.  
3. RFID related report for Vehicle: This report can be used to know the last tolls that have been passed by any vehicle. 
4. RFID related report for Vehicle between two dates: This report can be used to know the  tolls that have passed by any vehicle between any two dates. 
The officers can make best use of these reports while conducting vigilance and make the vigilance activity more effective. Also, the officers of audit and enforcement wing can use these reports to identify the fraudulent transactions like bill trading , recycling of EWBs etc.

RBI is informally urging lenders to cut ties with cryptocurrency exchanges and traders as the highly speculative market booms, despite a Supreme Court ruling that banks can work with the industry. The guidance comes as India is crafting a law to ban cryptocurrencies and penalize anyone dealing in them, which would be among the most sweeping crackdowns on the new investing fad in the world.

RBI said it has cancelled the licence of United Co-operative Bank Ltd, Bagnan, West Bengal, as it does not have adequate capital and earning prospects. Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 13, 2021. As per the data submitted by the bank, all the depositors will receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC). 

Delhi Lockdown News :  We are extending the lockdown by one more week in Delhi: CM Arvind Kejriwal

WhatsApp 2021 privacy policy deadline today, WhatsApp users will now have to accept it or they will lose access to all the features and chat list in the coming weeks. The solution to this is either one accept the policy or switch to a different messaging app. WhatsApp recently clarified that it will not delete people’s accounts if they don’t accept the new privacy policy. But the Facebook-owned company made it clear it will limit some features on the app. A user may not be able to access their WhatsApp chat list, but the app will allow them to answer or make incoming voice and video calls.

The Indian crypto community consists of over 10 million holders with over $1 billion of assets, a daily trading volume of $350-500 million, more than 300 startups, tens of thousands of jobs, and hundreds of millions of dollars in revenue and taxes.
Cryptocurrency players have requested the government to treat cryptocurrency as digital asset and direct individual holders to declare their crypto holdings while filing income tax returns to assuage concerns around traceability of virtual currencies such as bitcoins.
Crypto players have requested the government to make specific provisions in the Income Tax Act that would lead to individual crypto holders of more than Rs 50 lakh to declare their assets once a year.
The corporate affairs ministry had earlier made it mandatory for companies to disclose the profit or loss on transactions involving cryptocurrency.

Traders’ body, Gujarat Traders’ Federation (GTF), on Thursday made a representation before the chief minister, seeking relief in tax and electricity expenses. Retailers and traders faced immense losses due to restrictions imposed by the state government over the past fortnight due to which they were forced to keep their shops shut. “We have asked the state government to provide subsidy in property tax payments, in Goods and Services Tax (GST) payments and also in electricity bills by reducing charges levied.

MCA has issued Circular 06/2021 and 07/2021 allowing stakeholders to file various forms(other than a CHG-1, CHG-4 and CHG-9 form) due for filing during the period from 01/04/2021 to 31/05/2021 without additional fees till 31st July, 2021.

MCA has extended the interval between two board meetings by a period of 60 days for first two quarters of Financial Year 2021-22. Earlier the gap between two subsequent board meetings was 120 days but now it has been extended for further 60 days (i.e 120 days  + 60 days =180 days) during the Quarters April to June, 2021 and July to September, 2021.

ESI Contribution for the month of April 2021 and now can be filed and paid up to 15th June 2021 instead of 15th May, 2021.

WhatsApp’s new privacy policy has got the people talking. With the May 15 deadline nearing, there is too much ambiguity around its privacy policy and new terms of service. The users still seem to be under the rock about the whole WhatsApp gimmick and the company is pretty much to be blamed for this. Just two days ago, WhatsApp had clarified that users will not lose their accounts even if they don’t accept the policy but now reports have stated that the users will lose access to some important features if they don’t accept the policy.

TDS U/S Sec 206AB for non filers of income tax:
1. Provision:
Section 206AB mandates the person to deduct TDS in case of non-filing of an income tax return by the specified person.
2. Meaning of specified person:
A specified person means a person who satisfies all the below criteria:
The person has not filed his Income Tax Returns for the last 2 years. 
Due date for filing returns as per Sec 139(1) has passed. 
The TDS or TCS liability for each of the two years has been Rs 50,000 or more. 
3. Tax liability:
TDS under section 206AB will be deducted at higher of the following rates-
Twice the rate as specified under the relevant provision of the Income Tax Act; or
At the rate of 5%.
4. Effective date of applicability: 1st July, 2021. 
5. Exemption: TDS under Salary, withdrawal of PF, winnings under horse races, games, income against investment in securitisation trust, withdrawals of cash 
6. Applicability of both Sec 206AA and 206AB:
Section 206AA of the Income Tax Act mandates the person to deduct TDS at higher rates in case of non-availability of PAN.
If both Sec 206AA and 206AB are applicable, higher of the rates prescribed in both sections would be applicable.

CPI inflation dips to a 3 month low and IIP grows at 22.4%:
Retail inflation slowed to 4.29 % in April from 5.52 % in March, mainly due to easing of food prices. Inflation in the food basket was 2.02 % in April, down from 4.87 % in March. 
This is the fifth consecutive month that the CPI data has come within the Reserve Bank of India’s (RBI) upper margin of 6 %. 
Index of Industrial Production (IIP), witnessed a growth of 22.4 per cent in March. The manufacturing sector saw a growth of 25.8 % on-year to 140.4 in March, while the electricity sector saw a rise of 22.5 % to 180.0. The mining sector too rose 6.1 % to 139.0. Motor vehicles and trailers witnessed a growth of 78%, computer and electronic products of 74.7%. 
Source: MOSPI

Waiver of IP protection for Covid vaccines:
1. US has supported a waiver of intellectual property protection for Covid vaccines. 
2. Since Oct 2020, India has been pressing for waiver of the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement that could impede timely access to affordable medical products to combat Covid-19.
3. Once the IP is waived, any company which possesses the required technology and infrastructure can produce vaccines, which may result into a huge jump in vaccine supply. 
4. To be sure, all the WTO member countries have to approve the proposal, otherwise, this will just be tokenism, EU and Japan are already against waiver. 
5. Compelling reasons for IP waiver:
The wealthiest 27 places in the world account for 10.5% of the population, but 35.6% of vaccinations, according to data compiled by Bloomberg.
The Pharma companies claim that billions of dollars are spent on research. That argument falls flat, since vaccine development has been largely funded by Governments. For eg: US Government has spent $18 billion to date – to facilitate the development of vaccines that would end the spread of the coronavirus. The only notable exception is, perhaps, Pfizer. 
6. However, there are genuine difficulties: There are currently no generic vaccines primarily because there are hundreds of process steps involved in the manufacturing of vaccines, and thousands of check points for testing to assure the quality and consistency of manufacturing as per Mr Norman Baylor, president of Biologics Consulting. 

Biden's Indian Covid Help -This half a billion dollars includes USD 100 million pledged by the Biden administration, USD 70 million by pharma major Pfizer and 450,000 Remdesivir doses, the governmental purchase price of each of which in the US is USD 390. Thousands of oxygen concentrators and plane loads of life saving drugs and health care equipment are flying off the United States for India almost every Day. Several companies like Boeing and Mastercard have announced financial assistance worth USD 10 million each, Google has pledged USD 18 million, which the Global Task Force that comprises CEOs of top American companies have already pledged USD 30 million worth of life saving equipment

Income Tax on winnings from online games U/S 115BB:
1. Sec 115BB of the Income Tax Act levies tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting. So online games would be either categorised as ‘game of any sort’ or gambling and thus taxable U/S 115BB. 
2. Such income is taxed on a gross basis at 30% plus applicable surcharge and cess. 
3. As per Sec 58(4), no deduction of expenses incurred to earn such an income is allowed. Even deductions U/S 80 shall not be allowed.
4. Gaming Operator have to deduct 30% TDS on winnings exceeding Rs. 10,000/- (As per Section 194B of the Income Tax Act)

IndiaTech, an industry body which works with startups and their investors, has written to the government suggesting that cryptocurrencies should be regulated. Some of the key recommendations made-
1. Introduce sufficient checks and balances with reporting mechanisms, accounting standards, enable traceability and combat money laundering and potential terrorism financing.
2. Allow direct and indirect taxation, encourage disclosure and imports. Under income tax, crypto gains can be taxed under capital gains or income from business and profession, while under the Goods and Services Tax (GST), GST should be levied on the brokerage or exchange fees (like it happens in stock markets) and not on the transaction value. The potential GST collections from this could range between Rs 200-600 crore in the next 12 months.
3. Crypto exchanges need to ensure that the underlying blockchain code, and bitcoin tokens are robust. The industry needs a crypto-specific framework that can protect retail investors from the risks associated with tokens.
4. Crypto companies may have to be run by an Indian founder in India. They need to be registered and accepted in India, rather than paying foreign exchanges to store Indian users’ currency. Indian founders or entities should hold a minimum of 24% in the company, meaning a maximum Foreign Direct Investment of up to 76% of a company, similar to the banking sector.
The value of crypto assets crossed $2 trillion globally last year, and Bitcoin alone is valued at over $900 billion, signaling broadening investor appetite for these relatively risky assets.

Citing Delhi’s high positivity rate, Chief Minister Arvind Kejriwal on Sunday extended Delhi lockdown for another week. The lockdown will now be in place till 5 am on May 17. During this period, metro services will also be suspended.

The finance ministry has asked public sector banks (PSBs) to be on high vigil against any attempt being made to seize their overseas deposits to recover USD 1.2 billion that the UK’s Cairn Energy plc has been awarded against India levying retrospective taxes, sources said. Cairn had previously stated that it can seize Indian assets abroad if it is not paid USD 1.2 billion plus interest and cost that an international arbitration panel had awarded against levy of retrospective taxes.
Cash of Indian banks lying in nations such as the US and the UK are said to be easy target for seizing and enforcing the arbitration award. To guard against such cash being taken over, the finance ministry has asked PSBs to be extra vigilant and immediately report back any attempt Cairn makes to legally attach the deposits, two sources aware of the matter said.

List of top 5 banks offering up to 7% return on fixed deposits for a tenure of 1-2 years. 
1. Jana Small Finance Bank: 7.00 per cent p.a.
2. Surodaya Small Fin Bank: 6.75 per cent p.a.
3. DCB Bank: 6.70 per cent p.a.
4. IndusInd Bank: 6.50 per cent p.a.
5. Yes Bank: 6.50 per cent p.a.
The list only includes the highest advertised rate of return for a tenure of 1-2 years and takes account of investment in normal FDs amounting to any amount less than 1 crore. Senior citizens may get preferential rates. The above mention data takes into account the interest rates mentioned on these bank websites till April 30, 2021.

CAIT has urged the Delhi government to extend the lockdown till 15 May. Amid rising COVID-19 cases in Delhi, CM Kejriwal on May 1 had announced extension of the ongoing lockdown in the national capital by another week till May 10. However, these traders want the Delhi lockdown to be extended further till May 17. Looking at the rising cases of coronavirus and its effect on people's lives, traders' associations across the national capital continued their demand for extension of Delhi lockdown till May 17. Expressing concern over the COVID consequences, the traders' associations wrote to Lieutenant Governor Anil Baijal and Chief Minister Arvind Kejriwal on Thursday suggesting an extension till May 17.

The union finance ministry has said that the ongoing second wave of the Covid-19 pandemic will have a muted economic impact in comparison to the first wave.  In its economic review for the month of April released today, the ministry observed, “The second wave of COVID-19 has posed a downside risk to economic activity in the first quarter of FY 2021-22.” 
“Net indirect tax collections for 2020-21 were 8.2 percent higher than the revised estimates (RE) and 12.3 percent over collections in 2019-20. Central GST collections during 2020-21 are 106 percent of RE though 8 percent lower than the last year’s collection. In the second half of 2020-21, GST collections registered a good growth and collections exceeded Rs 1 lakh crore in each of the last six months owing to economic recovery. GST collections registered another record high of Rs 1.41 lakh crore in April, indicative of continual economic recovery,” said the report.
“In April 2021, economic recovery manifested in the rising import growth of 166 percent and 7 percent over 2020 and 2019 levels respectively,” the monthly economic report added.
“Exports, too, grew by 197 percent over 2020 levels and 16 percent over 2019 – the significant growth compared to 2019 provides a tentative indicator of the positive impact of the policy focus through, inter alia, the Production Linked Incentive Scheme. Overall, India registered a trade deficit of US$15.24 billion in April 2021,” the report said.

The Delhi High Court on Wednesday asked the finance ministry to consider exempting oxygen concentrators imported by individuals for personal use from integrated goods and services tax. At present, such imports are subject to 12% IGST while concentrators imported for charity are exempt from the tax. The court’s order came a day after it heard a petition challenging the imposition of IGST on the import of oxygen generators and oxygen concentrators as a gift for personal use.

Indian vaccine makers may face a new hurdle, as western countries move ahead with plans to issue “vaccine passports”, that would allow entry only to travellers who are fully vaccinated with specific approved vaccines.Earlier this week, the European Union (EU) said that it will allow travellers from countries with a “good epidemiological situation”, as well as travellers who have been fully vaccinated with vaccines approved by EU regulators. Of the two vaccines in use in India, only Covishield, manufactured by Serum Institute of India (SII) under licence from AstraZeneca, has WHO approval.

RBI permits restructuring of loans:
Retail borrowers and small businesses will be permitted to recast their loans, without being downgraded to non performing category, under a new restructuring scheme
1. The one-time restructuring scheme will be available for borrowers with aggregate outstanding dues of up to Rs 25 crore.
2. Only accounts which are classified as standard as of March 31, 2021 can be restructured.
3. Borrowers who have received relief under previous restructuring schemes, including that announced last year, would not be eligible.
4. As part of the scheme, lenders can extend the tenor of the loan by up to two years and also offer a moratorium for this period.
5. The scheme would have to be invoked by Sept. 30 and implemented within 90 days of invocation. 

Relaxation for loans restructured last year:
1. The RBI also said that any accounts restructured last year under the one-time restructuring scheme can be given a moratorium of up to two years, if not already provided.
2. Further, the banking regulator has also allowed lenders to review the working capital limits for small businesses that had restructured their dues in 2020 as a one-time measure.

India notifies digital tax threshold of Rs 2 crore and 300,000 users:
The amount of aggregate of payments arising from transaction, or transactions of goods, services or property carried out by a non-resident, with any person in India…including download of data or software in India during the previous year, shall be Rs 2 crore…the number of users with whom systematic and continuous business activities are solicited or who are engaged in interaction shall be Rs 3 Lakhs. (Notification No. 41 /2021). 
This is part of the Significant Economic Presence (SEP) principle, which was introduced in the Finance Bill 2018-19, and which widened the scope of ‘business connection’ to include provision of download of data or software, if aggregate payments from such transactions exceed a prescribed amount, or if a multinational's interaction is with a prescribed number of users.

India’s merchandise exports in April 2021 was USD 30.21 billion, an increase of 197.03%  over USD 10.17 billion in April 2020 and an increase of 16.03% over USD 26.04 billion in April 2019.
India’s merchandise imports in April 2021 was USD 45.45 billion, with an increase of 165.99% over USD 17.09 billion in April 2020 and an increase of 7.22% over USD 42.39 billion in April 2019.
India is thus a net importer in April 2021 with a trade deficit of USD 15.24 billion, which increased by 120.34% over trade deficit of USD 6.92 billion in April 2020 and declined by 6.81% over trade deficit of USD 16.35 billion in April 2019.

Igst also exempted on imports of covid 19 relief material, earlier customs duty exemption was given........
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Delhi deputy chief minister Manish Sisodia on Monday requested Union finance minister Nirmala Sitharaman to consider exempting the goods and services tax (GST) on oxygen concentrators for six months in order to make them more affordable for citizens.
The health infrastructure of Delhi is crippling amid the shortage of oxygen supplies to treat the critical patients of the coronavirus disease (Covid-19). Several patients have lost their lives in the national capital since last month as hospitals have only managed to make temporary arrangements to address the oxygen shortage and their supplies are exhausting regularly.

The Covid lockdown in delhi, due to end 5 am Monday, has been extended by a week till 10th may 2021 - tweet by CM this Saturday evening. 
Delhi has been under lockdown since April 19, with Rising fresh wave of infections and more than 30% positivity rate

IGST on Import of Oxygen Concentrators for personal use has been reduced from 28% to 12% to bring IGST rate on such personal imports at par with commercial imports of the same. This reduced IGST rate for imports of concentrator for personal use shall be applicable upto the 30/6/21 vide Customs Notification no.30 dated 01/05/2021

New support from SIDBI to the healthcare MSMEs:
1. The Small Industries Development Bank of India (SIDBI), has launched two loan products for MSMEs in the healthcare industry to help them with the required financial support in the fight against the COVID-19 pandemic.
2. The schemes are devised under the guidance from Government of India which facilitates funding for production and services related to supply of oxygen cylinders, oxygen concentrators, oximeters and essential drugs. 
3. The two new loan products are:
* SHWAS – SIDBI assistance to Healthcare sector in War Against Second wave of COVID19.
* AROG – SIDBI Assistance to MSMEs for Recovery & Organic Growth during COVID19 pandemic.
4. Features:
* Term Loan for purchase of equipment / machines 
* Working Capital Term Loan for purchase of raw materials or executing confirmed orders
* Maximum: 100% funding upto Rs 200 lakhs
* RoI:4.50%-5% p.a.
* Repayment period Term Loan - upto 60 months WCTL – Upto 18 months
Disbursal of loan within 48 hours of receipt the complete documentation 

Para 2.25 of Foreign Trade Policy, 2015-20 is revised to include import of oxygen concentrators for personal use through post, courier or e-commerce portals in the list of exempted categories, where Customs clearance is sought as ”gifts”, till 31 July 2021. 

As per Income Tax E-filing website The timeline to update UDIN of past uploads of audit report and certificates has been further extended up to 30th June, 2021. Kindly avail the benefit and avoid invalidation

Zomato has filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) of up to Rs 8,250 crore. 
Some interesting facts about Zomato:
1. The operating revenues have nearly doubled to Rs 2604.7 crore for the FY 19-20 from Rs 1312.5 crore in the previous fiscal. 
2. Of that, 90% was derived from its primary revenue sources including advertisements, commission, and subscription offering Zomato Gold. 
3. Its losses widened over 2.5 times to Rs 2385.6 crore during FY 19-20 from Rs 1010.2 crore in FY18-19. 
4. Zomato has raised a total Rs 12666.8 crore over the course of its 13-year existence.
5. From 2014, the company has made 20 acquisitions across eight countries.  
6. The restaurant aggregator paid $35 million in cash for acquisition of Uber Eats. 
7. Zomato was valued at $5.4 billion in its last financing round.

The Reserve Bank of India has started discussions with the Indian Banks’ Association for a possible extension of the one-time restructuring scheme announced last year to support borrowers through the Covid crisis. While the schemes have closed, bankers had requested for them to be reopened amid a soaring second wave of infections. According to three bankers in the know, the regulator is considering relief for retail and small business borrowers and mulling the option to open the restructuring window until Sept. 30. The discussions between the RBI and bankers are still in early stages with no certainty on which way the final decision will go, they said on the condition of anonymity. 

RBI this month announced a 1 trillion rupee ($13 billion) bond-buying plan for the April-June quarter, formalizing a quantitative easing program in an effort to assuage investors. “One of the key benefits of a bond market is to impose fiscal discipline on governments, by forcing them to pay higher interest rates when government borrowing increases.

Govt Extended following timelines vide Press Release  dtd.24-04-21:
Vivad se Viswas till 30-Jun-2021
Time limit to issue notice u/s 148 extended to 30-06-2021
Time limit for passing order u/s 153 or 153B (Assessment or Reassessment) till 30-Jun-2021
Time limit for passing order consequent to direction of DRP u/s 144C(13) till 30-Jun-2021
Time limit for sending intimation of processing of equalisaion levy u/s 168(1) till 30-Jun-3021.

Regulations of Housing Finance Companies (HFCs) from National Housing Bank (NHB) to the Reserve Bank of India (RBI), and Master Direction Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 was issued in this regard on 17th February 2021 and same was made applicable with immediate effect.

With this latest master direction, the responsibilities of Directors, KMP and even the Auditors have heightened, as the Companies Act 2013 already required Management / Directors of Companies to discharge their Financial Reporting responsibilities by making an evaluation on the design and operating effectiveness of the controls and safeguards they have put in place over accounting and financial reporting. 

Despite all regulations, the harsh reality of Indian Banking and Financial Services sector is its ever growing NPAs. A closer look at the new Master Direction from RBI reveals that there is focus on Governance, Risk Management Compliance, as it talks about a progressive risk management system and lays down emphasis on Internal guidelines on Corporate Governance and ensuring highest standards on Risk Management.

Income Tax: No Tax on Consideration received for compulsory acquisition of land & Building. Case Name : Madaparambil Varkey Varghese Vs ACIT (Kerala High Court)

Income Tax: Exempt income cannot be taxed merely for not mentioning in ITR ‘Schedule EI’. Case Name : Goodwill Management Pvt. Ltd. Vs DCIT (ITAT Bangalore). Appeal Number : ITA No. 670/Bang/2020. Date of Judgement/Order : 15/04/2021

No GST to be paid during Search & Seizure unless accepted as GST liability. Case Name : Shri Nandhi Dhall Mills India Private Limited Vs Senior Intelligence Officer,(Madras High Court) Appeal Number : W.P. No. 5192 of 2020. Date of Judgement/Order : 07/04/2021

Supreme Court rules balance sheets can amount to acknowledgment of debts under Section 18 of Limitation Act.  https://www.barandbench.com/news/litigation/supreme-court-v-padmakumar-nclat-balance-sheet-acknowledgment-of-debt

No GST can be demanded from Buyer for the fault of Seller of non-payment of taxes to the Govt. The Hon'ble Madras High Court in M/s. D. Y. Beathel Enterprises v. the State Tax Officer [W.P. (MD) Nos. 2127, 2117, 2121, 2152, 2159, 2160, 2168, 2177, 2500, 2530, 2532, 2534, 2538, 2539, 2540, 2503 & 2504 of 2021 & Ors., dated February 24, 2021] quashed the order passed by the officer levying the entire tax liability on the purchasing dealer without involving the seller, where the payment of tax has been made by the purchasing dealer, but the same has not been remitted to the Government by the Seller. Held that, the omission on the part of the Seller to remit the tax should have been viewed very seriously and strict action ought to have been initiated against the seller.

Many Indian companies procuring raw material from China have been instead delivered chemicals mixed with water, chalk powder and paper by their suppliers. To make matters worse, they are charged customs duty and IGST based on the actual invoice. Most of the duped companies said they would take up the matter of fraud in international forums. They are also looking to approach Indian courts for some leeway on taxes.
In many cases, officials of importing companies said integrated goods and services tax (IGST) and customs duty applicable on the invoice amount is more than the actual cost of the fake or adulterated goods they received from China.
One company that had imported ‘re-melted lead ingots’ from China, instead, was delivered chalk powder. But it was asked to cough up duties on the amount paid for importing ingots.

The country's top lender State Bank of India (SBI) has warned its customers about the QR scans. SBI has alerted people not to scan QR Codes shared by anyone unless the objective is to pay.
Online transactions have become a necessity in Covid-19 pandemic times. However, one must be extremely cautious while carrying out the transactions online. Technology has not only made our life easier but also for the cyber fraudsters. 

The Delhi High Court on Tuesday directed the Government of NCT of Delhi to file report with regards to deaths that have taken place at hospitals/  nursing homes due to shortage of oxygen. The Affidavit in this regard shall be filed within 4 days. The particulars of all such deaths i.e. the name of the patient; the ward/ rooms in which they were admitted; the time of death and; the reason for death should be indicated in a tabular form. 

Delhi’s lieutenant governor (L-G) Anil Baijal is now the ‘government’ in the Union territory after the Centre notified the amended Government of National Capital Territory of Delhi (Amendment) Act, 2021 on Tuesday.
“In exercise of the powers conferred by sub-section (2) of section 1 of the Government of National Capital Territory of Delhi (Amendment) Act, 2021 (15 of 2021), the Central Government hereby appoints the 27th day of April, 2021, as the date on which the provisions of the said Act shall come into force,” the ministry of home affairs said in a notification.
The controversial act, which effectively hands executive powers to the lieutenant governor from the city-state’s government and legislative assembly, was cleared by Parliament last month amid a walkout by Opposition parties.

The Supreme Court on Tuesday extended limitation period for the filing of cases in courts and tribunals with effect from 14.03.2021 until further orders. The Court said the COVID19 second wave has created an "alarming situation" and has put the litigants in a "difficult situation".

Union Government advises States/UTs on Intense Action and Local Containment Measures in COVID-19 affected districts for Effective Management of COVID surge
Well defined Geographies with more than 10% positivity or 60% Bed occupancy liable for Intensive Actions Local Containment may be Undertaken for a Period of 14 days for Breaking the Chain of Transmission. 

Many Indian companies procuring raw material from China have been instead delivered chemicals mixed with water, chalk powder and paper by their suppliers. To make matters worse, they are charged customs duty and IGST based on the actual invoice. Most of the duped companies said they would take up the matter of fraud in international forums. They are also looking to approach Indian courts for some leeway on taxes.
In many cases, officials of importing companies said integrated goods and services tax (IGST) and customs duty applicable on the invoice amount is more than the actual cost of the fake or adulterated goods they received from China.
One company that had imported ‘re-melted lead ingots’ from China, instead, was delivered chalk powder. But it was asked to cough up duties on the amount paid for importing ingots.

The Reserve Bank of India (RBI) has, by order dated April 23, 2021, imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from on-boarding new domestic customers onto their card networks from May 1, 2021. These entities have been found non-compliant with the directions on Storage of Payment System Data. This order will not impact existing customers.

The Nagpur bench of the Bombay High Court recently held that a WhatsApp group administrator cannot be held liable for objectionable content posted by a member of the group, unless it is shown that there was a “common intention” or “pre-arranged plan” to act in concert between the two. The bench held that members of these groups can be held liable for their posts, there is no provision in the IPC for holding a group admin vicariously. The Administrator of the Whatsapp group does not have the power to regulate, moderate or censor the content before it is posted on the group. But, if a member of the Whatsapp group posts any content, which is actionable under law, such person can be held liable under relevant provisions of law.

Traders’ body Confederation of All India Traders (CAIT) has urged the government to defer as many as 11 compliances under Goods and Services Tax (GST) and 15 compliances under the Income Tax Act by three months in the wake of Covid crisis in the country. The confederation, which represents around 8 crore traders across 40,000 trade associations in India, requested Finance Minister Nirmala Sitharaman in a communication to postpone these compliances that traders have to comply with in April. “Non-compliance of these stipulations will attract huge penalties on traders across the country,” CAIT said.

the terms of the lockdown will remain the same, with essential workers being allowed to travel by showing their identity cards, and others being able to apply for an e-pass.
However, in the second week of the lockdown, DDMA has allowed shops in the sectors of courier services, self-employed electricians, plumbers or water purifier repair personnel, shops for educational books, and shops for electric fans to remain open. Those employed by these places can apply for e-passes for movement.

Faced with the unabated rise in COVID-19 infections, the Indian Banks’ Association (IBA) has advised banks to restrict working hours between 10 am to 2 pm, showed a letter issued by the industry body. According to the letter, banks will continue to provide four mandatory services of accepting deposits, cash withdrawals, remittance and government businesses. The SLBCs of each state and union territory will review the situation in their respective locations and decide on additional services that can be provided under existing situation, it said.

The proposed legislation on cryptocurrencies which is likely to ban digital currencies except the one being mooted by the Reserve Bank of India (RBI) — is expected to provide an exit window to the existing crypto holders of private entities. According to an official source, the proposed law will be prospective, even though declarations of holdings and transactions may be sought retrospectively. “The government is expected to provide an exit window to existing crypto holders in the event of an outright ban,” said a government official. Indians are believed to hold around US $ 1.5 billion (around Rs 10,000 crore) in cryptocurrencies, according to unofficial estimates. An option to provide an exit period to 3-6 months prior to banning the trading, mining and issuing of cryptos has been discussed in inter- ministerial discussions. A final draft of the bill is yet to be taken to Cabinet,” a source said. On the other hand, the RBI has indicated that it’s “very much in the game” and is getting ready to launch its own digital currency. “Central bank digital currency is a work in progress. The RBI team is working on it, technology side and procedural side… how it will be launched and rolled out,” RBI Governor Shaktikanta Das had said recently.

Union Cabinet gave ex-post facto approval to the official amendments to the Finance Bill, 2021, which were aimed at clarifying and rationalising tax proposals for 2021-22. The amendments were essential to clarify and rationalise the proposals further and address stakeholders’ concerns arising out of the proposals enumerated in the Finance Bill. The Finance Bill became the Finance Act, 2021 on March 28, 2021 after receiving the President’s nod. 

Supreme Court ruled that the power to order a provisional attachment of property, including a bank account, of an assesses under the GST law is “draconian in nature” and cannot be used as an “unguided subjective discretion” of the tax authorities. A bench said a provisional attachment is contemplated during the pendency of certain proceedings, implying a final demand or liability is yet to be crystallized. So, an anticipatory attachment of assets must strictly conform to the requirements, both substantive and procedural, embodied in the statute and the rules. 

?Gujrat High Court held that Reassessment justified if AO formed opinion on the basis of tangible material obtain through Investigation Wing in the case of Garvit Diamonds (P.) Ltd. v. Income-tax officer. 

Central Board of Indirect Taxes and Customs has issued a Notification No. 27/2021 – dated April  20, 2021 Seeks to exempt customs duty on import of Remdesivir. Goods of the description specified in column (3) of the Table below, when imported into India, would be exempt from the whole of the duty of customs leviable thereon under the said First Schedule.

Air pollution costs Indian businesses billions every year:
As per a study conducted by global advisory firm Dalberg Advisors in partnership with the Clean Air Fund and the Confederation of Indian Industry (CII), air pollution costs Indian business about $95 billion (around ?7 lakh crore) every fiscal year. This is around 3% of India’s total GDP. 
India’s workers take 1.3 billion days off work every year because of the adverse effects of air pollution on their health. This amounts to $6 billion in lost revenue. 
Air pollution has also been shown to have significant effects on their cognitive and physical performance, lowering a worker’s on-the-job productivity and thereby decreasing business revenues by up to $24 billion. 

ECLGS extended to SMA-1 accounts:
1. Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 which provides credit without additional security to entities having O/S credit between Rs 50 Cr and Rs 500 Cr, has now been extended to entities loan dues for up to 60 days (or SMA-1 accounts), as against 30 days earlier (SMA-0).
2. SMA-1 borrowers in the healthcare sector and 26 other high stress sectors (as identified by the Kamath Committee) are now eligible under ECLGS 2.0. 
3. Accounts that are classified as non-performing assets or where overdues have crossed 60 days (SMA-II) are not eligible.
4. Sanctions and disbursements under the facility are relatively faster since lenders have the Central government guarantee in case of default against these loans

Guidelines for start up seed funding

Under the new definition of wage, allowances will be a maximum of 50 percent of the total salary. Employees whose basic salary is already 50 per cent or more will not be affected. But those with basic salary less than 50 per cent will see a change in their take-home salary. Due to the increase in basic salary, the share towards PF will also increase, since it is calculated on the basis of basic salary. The new rules will likely affect the salary structure of high-paid employees with a high allowance component. Increasing PF and gratuity could also increase the cost of companies as their contribution towards these would increase proportionately.
Wage Code Bill (Code on Wages Bill 2019) was passed in Parliament in 2019. The government wanted to implement the rules in the new labor code from April 1, but had to defer it to allow more time to states to prepare and also to companies for changing their HR policy.

The regulator will issue fresh rules to soon allow those saving up to ?5 lakh in the NPS to take the whole amount at retirement, up from ?2 lakh at present. The pension fund regulator is also hoping to launch the first guaranteed return NPS scheme in the coming year. Reforms To allow NPS members with a balance over ?5 lakh to retain 40% of the corpus in the NPS or wind it down over a few years through a system akin to a systematic withdrawal plan. Members can opt to retain 40% of the corpus in NPS and withdraw over 15 years. 

Confederation Of All India Traders (CAIT) urged the AAP-led government to impose complete lockdown in the national capital for the upcoming 10 days. CAIT will soon convene a meeting of various trade organisations of Delhi and take a detailed view on all the issues-related to possible lockdown. If necessary, the traders can also call for closing their shops. The domestic traders’ body also added that those individuals who are engaged in essential services should get e-passes on time.

Rules for issuing OCI (overseas citizen of India) cards have been simplified by the Home Ministry - an individual registered as an OCI cardholder after turning 20 now does not need a new card on issue of a fresh passport.
Until now the rules required OCI cards to be re-issued on issue of a new passport (until the individual turns 20) and, once after turning 50, in view of changes to the face as a result of aging.
The Home Ministry order also says: "In case of those who registered as OCI cardholder as spouse of foreign origin of a citizen of India, or an OCI cardholder, the person concerned will be required to upload... copy of the new passport containing photo of the passport holder and also a latest photo, with a declaration their marriage is still subsisting, each time a new passport is issued. These documents have to be uploaded within three months of receiving the new passport.

The Pension Funds Regulatory and Development Authority (PFRDA) has proposed a hike in the maximum age of entry into the National Pension System (NPS) from 65 to 70.
The regulator has also proposed that subscribers who join after the age of 60 would be allowed to continue their NPS accounts till the age of 75. For other types of subscribers the maximum age of maturity is 70.

As per Press Announcement today by Delhi CM 
1. Malls, Gyms, Spas and Auditoriums CLOSED in Delhi
2. Cinema Halls to operate with 30 percent capacity
3. Only 1 Weekly Market per day per zone only
4, Only Home Delivery, No Dine-in Restaurants
5. Enforcement in Public Places.
6. Weekend curfew from 10 pm Friday to 6 am till Monday

The present concept of CBDCs was directly inspired by Bitcoin, but CBDC is different from virtual currency and cryptocurrency, which are not issued by the state and lack the legal tender status declared by the government. 
Implementations will likely not need or use any sort of distributed ledger such as a blockchain.
CBDCs are presently in the hypothetical stage, with some proof-of-concept programmes, although a survey in early 2020 found that more than 80% of central banks were studying the subject.  China's digital RMB was the first digital currency to be issued by a major economy. The phrase "central bank digital currency" (CBDC) has been used to refer to various proposals involving digital currency issued by a central bank. A report by the Bank for International Settlements states that, although the term "central bank digital currency" is not well-defined, "it is envisioned by most to be a new form of central bank money that is different from balances in traditional reserve or settlement accounts.

A study by IIT-Bombay has revealed State Bank of India and several other banks in the country have been imposing excessive charges on certain services wbich are provided to those with zero-balance or Basic Savings Bank Deposit Accounts (BSBDA). According to the study, the decision by SBI, which is country's largest public lender, to levy a charge of Rs 17.70 for every debit transaction beyond four by the BSBDA account holders is not "reasonable."
The study revealed that SBI collected over Rs 300 crore by imposition of service charges during the period 2015-20. Punjab National Bank, which has 3.9 crore BSBD accounts, came at second place with a collection of Rs 9.9 crore during the same period.
"There had been systematic breach in the RBI regulations on BSBDAs by few banks, most notably by the SBI that hosts the maximum number of BSBDAs, when it charged @ Rs 17.70 for every debit transaction (even via digital means) beyond four a month. This imposition of service charges resulted in undue collections to the tune of over Rs 300 crore from among nearly 12 crore BSBDA holders of SBI during the period 2015-20, of which the period 2018-19 alone saw a collection of Rs 72 crore and the period 2019-20, Rs 158 crore," the study by IIT Bombay professor Ashish Das stated.

The Goods and Service Tax Network (GSTN) added new features in the GST Search Taxpayer tab at GST Portal. The two separate info namely Profile and Place of Business (PoB) has been added in the GST Search Taxpayer tab at GST Portal. The PoB is showing the Mobile Number and Email of the Principal Signatory. The tab consists of the administrative office, the constitution of business, annual aggregate turnover, gross total income, the status of Aadhaar Authentication, and the status of e-KYC verification.

Recently, the Fastag data has been integrated with the e-way bill system. On a daily average, 24 Lakh Fastag transactions from 826 toll plazas, related to commercial vehicles are exchanged between NPCI/NHA and NIC systems. These details will help the GST officers to track the movement of e-waybills using the new analytical reports.

US Department of Treasury has released President Biden's Made in America Tax Plan 
As per the tax plan, following are the flaws in the current tax system:
(i) Evidence following the 2017 corporate rate cut from 35 percent to 21 percent, however, did not show an increase in investment or economic growth from trend levels.
(ii) The share of federal revenue raised by the corporate tax has fallen steadily and is now under 10 percent, while the share of revenue raised by taxing labor has been growing for decades and now exceeds 80 percent.
(iii) As a result of the tax cuts of prior years, the US now raises only about 16 percent of GDP in federal tax revenue, a decline of about four percentage points in the last two decades. 
(iv) More U.S. profits are housed in tiny tax havens than in the major economies of China, India, Japan, France, Canada, and Germany combined. Bermuda, a country of merely 64,000 people, shows 10 percent of all reported U.S. multinational foreign profit     
The Made in America tax plan implements a series of corporate tax reforms to address profit shifting and offshoring incentives and to level the playing field between domestic and foreign corporations. These include: 
1. Raising the corporate income tax rate to 28 percent. 
2. Strengthening the global minimum tax for U.S. multinational corporations. 
3. Reducing incentives for foreign jurisdictions to maintain ultra-low corporate tax rates by encouraging global adoption of robust minimum taxes. 
4. Enacting a 15 percent minimum tax on book income of large companies that report high profits, but have little taxable income. 
5. Replacing flawed incentives that reward excess profits from intangible assets with more generous incentives for new research and development. 
6. Replacing fossil fuel subsidies with incentives for clean energy production.
 7. Ramping up enforcement to address corporate tax avoidance
Implications for large economies like India:
1. Although countries have strong incentives to work together to counter tax competition, they will not stop the race to the bottom unless enough large economies adopt a minimum tax on foreign earnings. 
2. The Made in America tax plan’s proposal would be transformative in that regard by incentivizing other large economies to join the United States in taking the first step to adopt strong minimum taxes on corporations and leveling the playing field between the taxation of domestic and foreign corporations.

Huge jump in Bank Deposits:
Outstanding bank deposits stood at RS.151.13 trillion as on 26 March, the last fortnight of the financial year, showed data released by the Reserve Bank of India (RBI). This translates into a growth of 11.3% from the same period last year. 
In contrast, non-food credit grew at a sluggish pace of 5.5% year-on-year (y-o-y) to ?108.9 trillion.
Deposits had touched the Rs.100-trillion mark in September 2016 and had crossed Rs.50 trillion in February 2011.
This is indicative that investors see deposits as a steady income don’t mind taking risks when it comes to making deposits in the banks even in light of the impending privatisation. 

E-Way Bill System under GST regime has achieved a new milestone of generation of 7.12 Crores E-way Bills in the month of March 2021. This is the highest number of e-way bills generated in any month during last three years’ journey of E-Way Bill system. Similarly, on 24 March 2021, 27.86 Lakh EWay Bills have been generated, which is the highest in a day in the last three years. A total of 180.34 Crores of e-Way Bills have been generated in the last three years.

Ministry of Corporate Affairs has notified relaxation for the companies to conduct virtual Board meetings for approval of annual financial statements, Board reports, etc. This relaxation has been extended till June 30, 2021, vide issue of Notification No. GSR 806(E) dated December 30, 2020.

RBI has urged the markets to look at silver linings and shun gloom and doom ever since the covid-19 pandemic struck a year ago. Governor Shaktikanta Das has more reason now than ever to make markets look at the bright side of life. The economic recovery is gaining traction, and monthly high-frequency data points have been looking up recently.

Govt of Haryana vide notification dated 08th April 2021 raised additional duty by 1% in addition to the duty paid under Indian Stamp Act, at the time of registration of immovable properties situated within Gurugram Area

Gurgaon administration has decided to increase the circle rate by upto 90% at some of the posh localities of the city, at a time when the real estate sector is still recovering from the setback by COVID19. 
Circle rates at DLF’s Camellias, Magnolias and Aralias, which houses one of the costliest condominium in the country, has been increased from Rs 20,000 sq ft to Rs 25,000 sq ft.
Gurgaon administration has decided to increase the circle rate by upto 90% at some of the posh localities of the city, at a time when the real estate sector is still recovering from the setback by COVID19. 
Circle rates at DLF’s Camellias, Magnolias and Aralias, which houses one of the costliest condominium in the country, has been increased from Rs 20,000 sq ft to Rs 25,000 sq ft.
While circle rate at DLF’s Carlton and Crest has been increased from Rs 8,000 sq fr to Rs 15,000 and Rs 12,000 respectively. 
“The revived circle rate will be applicable from April 8. Registry happening from Thursday will have to done as per the new circle rate,” the revenue department said in an order.

Pre pack mechanism for MSME Insolvency:
1. The central government has promulgated an  Insolvency and Bankruptcy Code (Amendment) Ordinance allowing the use of Pre packs as an insolvency resolution mechanism for Micro, Small and Medium Enterprises (MSMEs) with defaults up to Rs 1 crore. 
2. What are Pre packs?
a. It is a resolution of the debt of a distressed company through an agreement between secured creditors and investors instead of a public bidding process.
b. The financial creditors agree to terms with a potential investor and seek approval of the resolution plan from the National Company Law Tribunal (NCLT).
3. Salient features:
a. The approval of a minimum of 66 per cent of financial creditors that are unrelated to the corporate debtor would be required. 
b. NCLTs are also required to either accept or reject any application for a pre-pack insolvency proceeding. 
c. It is limited to a maximum of 120 days with only 90 days available to the stakeholders to bring the resolution plan to the NCLT.
d. Existing management retains control in the case of pre-packs while a resolution professional takes control of the debtor as a representative of financial creditors in the case of Corporate Insolvency Resolution.
e. The mechanism is available only to a MSME. 
f. The most significant feature is that, unlike the general bankruptcy provisions, it allows the management of the defaulting small business to continue to be in control of operations.
g. Businesses can voluntarily file for a pre-pack scheme by adopting a special resolution by the board or by a resolution by three-fourths of the partners. 

Delhi Police Launched "Tatpar Delhi Police" mobile application in September 2019 , wherein more than 54 services of Delhi Police have been integerated. It has come to notice that many Delhi Police officers and personnel neither have the app and nor aware of this app and services provided. It has been decided that not only each and every police personnel of Delhi Police to download but also explore the app features, functions, services provided and  also give wide publicity  to public at large, specially by staff who are in direct contact with citizens. App is available in Google and Apple Store. All officers and personnel are requested to give best rating to the app.

WRIT PETITION No. 24150 of 2020. Date: 15.03.2021
Interpretation of Rule 108(1) - Meaning of term "either electronically or otherwise" in Rule 108 of CGST/APGST Rule - Appeal before Appellate Authority against assessment order - rejection of appeal for being led manually - petitioner case since the assessment order were received manually there was no occasion to submit grounds of appeal electronically - 
HELD - The words "electronically" and "otherwise" are co-related with the two conjunctions i.e., "either" and "or". Grammatically, these two conjunctions are used in co-relation with some words to indicate the alternativity or choice between the two persons, things, or events - In the instant case, the word "electronically" is prefixed with the conjunction "either" and the word "otherwise" is prefixed with the conjunction "or". From this usage, what can be deduced is that the mode of filing is a choice between electronic and other form (usually, manual form), as may be notified by the Chief Commissioner - admittedly no notification is yet given by the Chief Commissioner that appeal can be led in either manner.

Key takeaways of the RBI monetary policy:
1. Repo, Rev Repo and MSF remains unchanged to support the growth and the RBI aims to maintain Consumer Price Inflation (CPI) in line with the targeted levels.
2. Projection of real GDP growth for 2021-22 is retained at 10.5 %. 
3. Targeted Long Term Repo Operations (TLTRO) on Tap scheme has been extended by a period of 6 months till 30th Sep 2021.
4. A fresh support of ?50,000 Cr has been provided to the All-India Financial Institutions (AIFIs) for new lending in 2021-22. 
5. RBI has enhanced the limit of maximum balance per customer at end of the day from ?1 lakh to ?2 lakh for Payments Banks. 
6. A Committee has been constituted to undertake a comprehensive review of the working of ARCs in the financial sector ecosystem. 
7. Priority Sector Lending (PSL) classification has been extended for lending by banks to NBFCs for ‘on-lending’ to housing, agriculture and MSME for six months. 
8. Farm credit against hypothecation of agriculture produce has been enhanced from ?50 lakh to ?75 lakh per borrower.
9. Committee constituted to review advances to state govts has recommended an overall revised limit of ?47,010 crore for all states, as against the current limit of ?32,225. 
10. Reserve Bank will construct and periodically publish a “Financial Inclusion Index”. 
11. It is proposed to enable, in a phased manner, payment system operators, regulated by the Reserve Bank, to take direct membership in Centralised Payment Systems (CPS).
12. It is proposed to increase the limit of outstanding balance in such PPIs from the current level of ?1 lakh to ?2 lakh. 
13. Unutilised ECB proceeds drawn down on or before March 1, 2020 can be parked in term deposits with AD Category-I banks in India prospectively up to March 1, 2022.
14. Money transfer facilities such as NEFT and RTGS have been extended to non-bank payment system operators like Prepaid Payment Instrument (PPI) issuers, card networks, White label ATM operators and Trade Receivables Discounting System (TReDS). 
15. First GSAP will be conducted on 15th April 2021 for Rs 25,000 Cr.

Will countries agree on a proposal for Global Minimum Tax (GMT) 
1. US President Biden last week outlined a 2 Trillion $ infrastructure plan to be funded in part by raising the corporate tax rate from 21% to 28% and hiking the minimum tax on U.S. companies’ foreign profits. The plan would also make it tougher for foreign-owned businesses with U.S. operations to benefit from moving their profits to low-tax countries.
2. The proposal, would reverse 2017 tax haul that reduced the federal tax rate for companies from 35% to 21%. Raising the minimum tax for global intangible low-taxed income (global minimum tax) to 21% also could increase the tax burden.
3. The idea of a global minimum rate is to ensure that big multinationals pay a certain amount of tax no matter how they shift their profits from one country to another.
4. US Treasury Secretary Janet Yellen agreed to the proposal and also outlined the case for a harmonized corporate tax rate (global minimum tax) and new digital levies across the world’s major economies. She said that US is working with G20 countries to agree on a global minimum tax. 
5. This call of the treasury secretary was well received by the European Union. OECD has been in talks for many years to develop both a global agreement on minimum levies and new rules on taxing firms in the digital age and it already has a blueprint on the same. 

India Attracts total FDI inflow of US$ 72.12 billion during April, 2020 to January, 2021

Justice Nuthalapati Venkata Ramana, will take over as the Chief Justice of the Supreme Court of India on 24th April, 2021. He will be 48th Chief Justice of India. He is first-generation lawyer, having agricultural background, and hails from Ponnavaram Village, Krishna District in Andhra Pradesh. He is an avid reader and literature enthusiast. He is passionate about Carnatic music.

"The Parliament had intended the GST to be a citizen-friendly tax structure. The purpose of the Act is lost by the manner in which tax law is enforced: observed Justice DY Chandrachud on Tuesday.
The bench of Justices Chandrachud and M. R. Shah were dealing with contours of the power of provisional attachment of property, including bank accounts to protect revenue, under the Himachal Pradesh GST Act, 2017. Section 83 of the said Act provides that where during the pendency of any proceedings under the Act the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person.
The country needs to come out of this tax culture that 'businesses are all fraudulent'! Even where 12 crore tax has been paid, just because some tax is still due, you can't start attaching property! If there is any alienation of assets or the assessee is winding up or going into liquidation, it is understandable but just because you have the account numbers, you can't start attaching and even block the receivables!", remarked Justice Chandrachud.

The CBIC vide Notification No. 41/2021-Customs (N.T.), dated April 5, 2021, has issued Customs (Verification of Identity and Compliance) Regulations, 2021 (“Regulations”) to mandate furnishing of documents or information on Common Portal by person selected for verification of identity, which will be applicable to Importer, Exporter and Customs Broker newly engaging in import or export activity after commencement of the Regulations and may apply to any person selected by Commissioner of Customs, engaged in import or export activity or who availed or claimed certain benefits under Section 99B(3)(i) of the Customs Act, 1962 (“Customs Act”), or engaged as a Customs Broker prior to commencement of the Regulations. Further, the Regulations provides that where verification of identity is completed by means other than authentication of Aadhaar, physical verification shall not be waived.
The Regulations also provide for the procedure of verification of identity/compliance, appeal, suspension/restoration/denial of benefits, penalty and time period for such verification.
These Regulations shall come into force with effect from the date to be notified.

The Goods and Services Tax (GST) late fees and penalties will soon provide relief to troubled businessmen. For this, the Ministry of Finance is considering to bring the One Time Amnesty Scheme.
And the responsibility of resolving this issue can soon be entrusted to the Law Committee of the GST Council. The final decision on the committee’s recommendation will be made in the meeting of the GST Council. 

Existing Trusts to be re-registered U/S 12AB:
1. All existing charitable trusts registered U/S 12A, Section 12AA, Section 10(23C) and Section 80G of the Income Tax Act, need to be registered under the new Section 12AB to claim exemption u/s 10 or 11, as the case may be. These changes have been made in Finance Act 2020. 
2. The registration under Section 12AA of IT Act has been omitted w.e.f. June 01, 2020 due to insertion of sub-section (5) in Section 12AA. Section 12AB (Procedure for fresh registration) was to come into effect from 1 June 2020. The Trusts or Institutions were required to apply for registration and approval under new Section 12AB within 3 months from1 June 2020. 
3. The New Registration procedure prescribed under section 12AB for charitable trusts and institutional introduced by Finance Act 2020 has been deferred and extended to 01 April 2021 by the Taxation and Other Laws (Relaxation and Amendments of Certain Provisions) Act, 2020.
4. Hence now all existing trusts have to re-register themselves under section 12AB from 01.04.2021 and before the end of three months from the 1st Day of April 2021.

No fee on updation of IEC: 
1. As per updated para 2.05 of Chapter-2 of Foreign Trade Policy (FTP), 2015-2020, An Importer Exporter Code (IEC) holder has to ensure that details in its IEC is updated electronically every year, during April-June period. In cases where there are no changes in IEC details same also needs to be confirmed online.
2. An IEC shall be de-activated, if it is not updated within the prescribed time. An IEC so de-activated may be activated, on its successful updation. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP.
3. In exercise of powers conferred under paragraph 1.03 and 2.04 of the Foreign Trade Policy 2015-2020, the Director General of Foreign Trade inserted a new provision under S.No. 6 of Para 1 Appendix 2K (Scale of Application Fee and procedure for Deposit/Refund of Application Fee/Penalty. It lays down that there will be a NIL scale of fee for annual Updation of IEC during the period April to June as per Para 2.05 of HBP.

Refund obtained via writ petition:
1. Sec 241A of the Income Tax Act (bare provision)
For every assessment year commencing on or after the 1st day of April, 2017, where refund of any amount becomes due to the assessee under the provisions of sub-section(1) of section 143 and the Assessing Officer is of the opinion, having regard to the fact that a notice has been issued under sub-section (2) of section 143 in respect of such return, that the grant of the refund is likely to adversely affect the revenue, he may, for reasons to be recorded in writing and with the previous approval of the Principal Commissioner or Commissioner, as the case may be, withhold the refund up to the date on which the assessment is made.
2. The intimation U/S 143(1) was filed within the prescribed statutory time limit. However order U/S 241A withholding refund was issued after the time limit prescribed U/S 143(1). 
3. As such no time limit has been prescribed for passing orders withholding refund U/S 241A. 
4. The moot point was whether order u/s 241A withholding refund pending completion of scrutiny assessment can be quashed by writ court under article 226 of the Constitution of India??
The Hon Delhi HC held as below:
1. This Court in writ jurisdiction, while entertaining a challenge to an order under Section 241A of the Act, will ordinarily not enter into the correctness of reasons given for holding that the assessee may be ultimately found liable for tax.
2. Although there is no time limit prescribed under the law for passing order u/s 241A, the time limit for issuance of intimation and refunds thereupon has to be read into it. 
3. Supreme Court in Vodafone Idea Ltd. has held that the last date to withheld refund is the date provided in the second proviso to Section 143(1). 
Conclusion: Thus assessees may exercise his option of filing of writ petition if the AO does not refund and passes orders U/S 241A. 

1. Facility for Exchange of Notes and Coins at Bank Branches
(a) All branches of banks in all parts of the country are mandated to provide the following customer services, more actively and vigorously to the members of public so that there is no need for them to approach the RBI Regional Offices for this purpose:
(i) Issuing fresh / good quality notes and coins of all denominations,
(ii) Exchanging soiled / mutilated / defective notes,
Small Finance Banks and Payment Banks may exchange mutilated and defective notes at their option.
(iii) Accepting coins and notes either for transactions or exchange.
It will be preferable to accept coins, particularly, in the denominations of ?1 and ?2, by weighment. However, accepting coins packed in sachets of 100 each would perhaps be more convenient for the cashiers as well as the customers. Such sachets may be kept at the counters and made available to the customers.

(b) All branches should provide the above facilities to members of public without any discrimination on all working days. The scheme of providing exchange facility by a few select currency chest branches on one of the Sundays in a month will remain unchanged. The names and addresses of such bank branches should be available with the respective banks.

(c) The availability of the above-mentioned facilities at the bank branches should be given wide publicity for information of the public at large.

(d) None of the bank branches should refuse to accept small denomination notes and / or coins tendered at their counters. All coins in the denomination of 50 paise, ?1, ?2, ?5, ?10 and ?20 of various sizes, theme and design issued from time to time by the Government of India continue to be legal tender.

Discontinuation of Cheques of 8 Merged Banks wef 01st April 2021 being 
Dena bank
Vijaya bank
Corporation bank
Andhra bank
Oriental bank of commerce 
United bank
Syndicate bank
Allahabad bank 
Syndicate bank has extended this limit to 30th June 2021. It is advised to check with the concerned bank. 

In Table 12 of Gstr 1 return, a new entry/ cell naming Rate Of Tax to replace Total Value In Column 6 of Table 12. 
Total Value to be deleted and Rate of Tax to be added 

MCA changes in Schedule-III of the Companies Act applicable from 1-4-2021 
FOR DIVISION-1- AS- Complied Companies.
Rounding off of the figures are now compulsory. Earlier it was optional

For PART-I Balance Sheet 
Some changes in Balance Sheet items : 
1. In share capital schedule- Promoters holding is must to be disclosed 
2. Ageing of trade payable is must to be disclosed 
3. Ageing of trade receivable is must to be disclosed 
4. If the borrowed funds from banks and financial institution not utilised for the specific purpose, then to disclose the details where the funds have been utilized.
5. If title deed of property not in company name then additional disclosure to be given 
6. Additional disclosure for the loans given to promotes, directors, KMP and related parties
7. Additional  disclosures for capital work in progress – ageing wise 
8. Additional disclosure for intangible assets under development– ageing wise 
9. Details of benami properties held
10. Additional disclosure in case of bank borrowings on the basis of security of current assets. To give detail whether the books are matched with the periodical details submitted to bank. 
11. Additional disclosures in case of wilful defaulter 
12. Additional disclosure for relationship with struck off companies
13. Additional disclosure for pending registration of charges and pending satisfaction of charges
14. Additional disclosure for non Compliance with number of layers of companies 
15. Various ratios- (total 10 ratios) to be disclosed alongwith numerator and denominator and reason for variation with previous year 
16. Various additional disclosures in case of utilization of borrowed funds and share premium etc.

For PART-II Profit & Loss Account 
1. Additional disclosure for undisclosed income surrendered during any search or survey under income tax act. 
2. Various detailed disclosures for CSR 
3. Details of trade or investment in any crypto currency or virtual currency

List of changes that will be introduced from the coming financial year 2021-22 
1. Higher TDS/ TCS Rates 
The finance minister has proposed higher tax deducted at source (TDS) or tax collected at source (TCS) rates in budget 2021 in order to make more people file income tax returns (ITR). 
New Sections 206AB and 206CCA had been proposed in the budget as a special provision for the deduction of higher rates of TDS and TCS, respectively for the non-filers of an income tax return. 

2. Choose ‘New tax regime’ or Old tax regime 
The New Tax Regime will apply for income earned during the financial year 2020-21 or assessment year 2021-22, for those opting for it. As there is an incidence of tax deducted at source (TDS), the concern with many taxpayers and TDS deductors was about the timing of exercising of this option by the taxpayers. There may be an instance when the employee declares to the employer that he will stick with the Old New Tax Regime but at the time of filing ITR, he or she chooses to go with the New Tax Regime. The employers were unsure as to how the TDS will be deducted. 

3. New PF tax rules 
The way you save, invest, insure and pay tax will witness some key changes from the next financial year 2021-22. Some of the new rules in taxation and the re-structuring of the salary structure of employees will impact your take-home pay from April 1, 2021. 
At the same time, new standard insurance products will help you in making a better buying decision. Overall, the rules and regulations are here to stay and one will have to make them work to one’s advantage. 

4. LTC scheme The Leave Travel Concession (LTC) 
Voucher scheme has been notified by the government in Budget 2021. The scheme was announced by the Finance Minister Nirmala Sitharaman in October 2020 to boost consumer demand and to provide tax benefit to individuals who are unable to claim the usual LTC tax benefit due to covid-related travel restrictions.

5. Date for issue of notice under section 148 of Income-tax Act,1961, passing of consequential order for direction issued by the Dispute Resolution Panel (DRP) & processing of equalisation levy statements also extended to 30th April, 2021.

6. Central Government extends the last date for linking of Aadhaar number with PAN from 31st March, 2021 to 30th June, 2021, in view of the difficulties arising out of the COVID-19 pandemic.

7. Govt. introduces Emergency Credit Line Guarantee Scheme (ECLGS) 3.0 for enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors. Also extends ECLGS 1.0 & 2.0 up to 30.6.2021. 

8. Govt cuts interest rate on Small Savings Scheme- PPF, NSC, Kisan Vikas Patra, Sukanya Samriddhi Accounts for the period April 1 to June 30, 2021

The Central Board of Indirect Tax and Customs (CBIC) and Central Board of Direct Taxes (CBDT) signed the Memorandum of Understanding (MoU) for exchange of information on a real time basis. After this the GST portal is linked with the Income tax portal. The assessee who has not filed the income tax return or GST return will be able to see their GSTR-2A purchases on the income tax portal. Further TDS and other High Value Transactions information is available with the Income Tax Department.

As per section 139AA of the Income Tax Act 1961, it is mandatory to link your Permanent Account Number (PAN) with your Aadhaar by 31-Mar-21. If not linked by 31-Mar-21, the PAN provided by you will become inoperative. Failure to link will also attract a higher TDS rate on interest earned and might also impact certain bank transactions where PAN is considered. Also note that TDS once deducted cannot be refunded by the Bank under any circumstances.
1. To check the status of the linkage of your PAN with Aadhaar, visit https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/AadhaarPreloginStatus.html
2. To know more on how to link PAN with Aadhaar, visit https://uidai.gov.in/282-faqs/your-aadhaar/aadhaar-letter/1884-how-do-i-link-pan-with-aadhaar.html 

OCI card holders no longer required to carry old passports for India travel. People of Indian origin and Indian diaspora having overseas citizens of India (OCI) card are now not required to carry their old, expired passports for travel to India, as required earlier, according to a statement. "The requirement of carrying old and new passports, along with the OCI card, has been done away with," the Indian embassy said on its website on Monday, referring to a notification issued in this regard by the Centre, addressing one of the major concerns of overseas Indians. According to the embassy, the Indian government has also decided to grant further extension of time till December 31, 2021, to get the OCI cards re-issued for those below the age of 20 years and above 50 years.

Gst- Guj HC issued Notice to Respondents on 30th march 2021;  for Rule 89(4)(C) through which now to ascertain the Turnover of Zero Rated Supply,  a Cap was fixed by the Government arbitrarily. 

Gst- E way bill threshold for within the Rajasthan movement of goods increased from 50k to 1 Lacs w.e.f. 1 April 2021

Gst- QR code compliance exemption extended till 30th June 2021 subject to the condition that the said person complies with the provisions of the said notification from July 1, 2021.

Govt says crypto gains taxable as income, GST applicable on services by crypto exchanges 
Since income from whatever source derived is included in the Income Tax Act, 1961, and supply of any service, if not specifically exempted, is taxable under Goods and Services Tax (GST), the gains from cryptocurrency (crypto) trading and services by crypto exchanges are liable to be taxable, the government said. The information was shared by the Minister of State for Finance Ministry Anurag Singh Thakur in response to a question in the Rajya Sabha whether the government is currently collecting income tax on crypto earnings and also whether GST is collected from crypto exchanges. “Irrespective of the nature of business, the total income for taxation shall include all income from whatever source derived…the gains arising from the transfer of cryptocurrencies/assets is liable to tax under a head of income,” said Thakur. Likewise, “supply of any service, if not specifically exempted, is taxable under GST and no service related to cryptocurrency exchange has been exempted.”

All New Set of Guidelines, Forms &  Procedures for the Registrations of Trusts/Societies for Section 12AB and Section 80G Registration under the Income Tax Act,1961.
Form-10BD Notified for Annual Return of Donations to be filed by NGO;
‘Certificate of Donation’ shall be issued to the Donor on Form-10BE.  CBDT Notification No. 19/2021 dated March-26-2021

Chief Minister Employment Generation Programme (CMEGP) – Maharashtra
1. Government of Maharashtra has approved the introduction of a new credit linked subsidy programme called Chief Minister Employment Generation Programme (CMEGP) for generation of employment opportunities through establishment of Micro & Small Enterprises (project cost limited to Rs. 50 lacs) in rural as well as urban areas in the state.
2. The Scheme will be implemented and monitored by Directorate of Industries (DOI), under the administrative control of Industries Department, Government of Maharashtra. 
3. The Scheme will be implemented through District Industries Centers (DICs), Maharashtra State Khadi and Village Industries Boards (KVIB) under the control of Directorate of Industries and also by banks. 
4. The subsidy under the scheme will be routed through DOI to the identified banks for eventual distribution to the beneficiaries/entrepreneurs in their bank accounts after the stipulated period.
5. New Manufacturing, Service, Agro-based & Primary Agro processing activities, E-vehicle based goods transport and other businesses, single brand service ventures (single brand-based chains, mobile service ventures) sector projects/units, will be eligible under the CMEGP scheme.
6. The subsidy would be in the range of 15-35%. 
7. A dedicated portal viz. https://maha-cmegp.gov.in has been developed for speedy and transparent implementation of the Scheme.

SC has held that Insolvency proceedings can be initiated against corporate guarantor even when borrower is not a company:
1. Union Bank of India had extended two loans to M/s. Mahaveer Construction (Principal Borrower), a proprietary firm of the appellant Laxmi Pat Surana, through two loan agreements in 2007 and 2008.
2. M/A Surana Metals Ltd was the guarantor of the loans and the loans were declared NPA in 2010. 
3. Since the principal borrower repeatedly reneged on its promise to repay the loans, Union Bank finally issued to the Corporate Debtor on December 3, 2018 a purported notice of payment under Section 4(1) of the Insolvency and Bankruptcy Code.
4. Under Section 7 of the Code, a Corporate Insolvency Resolution Proceeding was initiated against the Corporate Debtor, before the National Company Law Tribunal, Kolkata on Feb 13, 2019. 
5. The Hon SC held that:
a. Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) can be initiated by the financial creditor (Bank) against a corporate person concerning guarantee offered by it in respect of a loan account of the principal borrower, who had committed default, even if the principal borrower is not a ‘corporate person’.
b. The obligation of the guarantor is coextensive and coterminous with that of the principal borrower to defray the debt, as predicated in Section 128 of the Contract Act. As a consequence of such default, the status of the guarantor metamorphoses into a debtor or a corporate debtor if it happens to be a corporate person, within the meaning of Section 3(8) of the Code. 

Schedule III of the Companies Act 2013 contains the general instructions for preparation of Balance Sheet and Statement of Profit and Loss of a Company.
Following are the changes made in the financials/ notes to accounts on account of amendments in Schedule III brought about by MCA:
1. Now companies have to round off the figures appearing in the financial statements, hitherto it was optional. Further, the criteria for rounding off shall be based on “total income” in place of “turnover”.
2. Company shall disclose Shareholding of Promoters.
3. Current maturities of Long term borrowings shall be disclosed separately.
4. Trade Payables ageing schedule to be given.
5. Trade Receivables ageing schedule to be given.
6. Security deposits shall not be disclosed under ‘Long term loans and advances’ but disclosed under ‘Other non current assets’. 
7. The company shall disclose the reason of utilization of funds for the purposes other than for which they were borrowed and shall also disclose the purposes for which the funds were utilised. 
8. Company needs to disclose if the books of accounts are tallied with the quarterly or monthly returns filed with banker in cases where company has borrowed funds from banks on the basis securities of current assets, or else a separate reco statement needs to be provided. 
9. The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share.
10. In cases where revaluation has been done in case of Property Plant and Equipment, the company shall disclose if the valuation was done by registered valuer. 
11. Disclosures to be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and related parties (loans given to promoters as a % of total loans)
12. For Capital-work-in progress, ageing schedule shall be given
13. For Intangible assets under development,  aging schedule to be given.
14. Disclosure of any proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition)Act, 1988 to be made.
15. Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, details to be given.
16. Disclosure of any transactions with companies struck off 
17. Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.
18. Following Ratios to be disclosed:
(a) Current Ratio,(b)Debt-Equity Ratio,(c)Debt Service Coverage Ratio, (d) Return on Equity Ratio,(e) Inventory turnover ratio,(f)Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j)Return on Capital employed, (k) Return on investment
(xv) Disclosure of Utilisation of Borrowed funds and share premium to be given
Explanation is required if there’s change of more than 25% as compare to preceding financial year.
19. Further disclosures shall be made where the company has received funds from any persons or entities including foreign entities to further lend or invest or provide any guarantee, security to third parties.
20. Where a scheme of arrangement has been approved, disclosure shall be made of the effect of the same on the books of accounts and any deviation from the accounting standards for the same. 

The Comptroller and Auditor General of India (CAG) on Wednesday made a case for setting up a definite time-frame for roll out of simplified GST return forms as frequent deferments are resulting in delay in stabilisation of return filing system.
The GST return system is still a work in progress despite more than three years of GST rollout, CAG audit report presented in Parliament said.
In the absence of a stable and simplified return mechanism, one of the main objectives of roll out of GST i.e. simplified tax compliance system is yet to be achieved, it said.

 Wef 1.4.21, Mca changes
1. It's Mandatory for Companies to use accounting software with feature of Audit Trail. Auditor to comment on it in Audit Report. MCA Noti of 24.3.21.
2. MCA changes in Schedule-III of the Companies Act applicable from 1-4-2021 FOR DIVISION-1- AS- Complied Companies.
Rounding off of the figures are now compulsory. Earlier it was optional
3. For PART-I Balance Sheet 
Some changes in Balance Sheet items 
In share capital schedule- Promoters holding is must to be disclosed 
Ageing of trade payable is must to be disclosed 
Ageing of trade receivable is must to be disclosed 
If the borrowed funds from banks and financial institution not utilised for the specific purpose, then to disclose the details where the funds have been utilized.
If title deed of property not in company name then additional disclosure to be given 
Additional disclosure for the loans given to promotes, directors, KMP and related parties
Additional  disclosures for capital work in progress – ageing wise 
Additional disclosure for intangible assets under development– ageing wise 
Details of benami properties held
Additional disclosure in case of bank borrowings on the basis of security of current assets. To give detail whether the books are matched with the periodical details submitted to bank. 
Additional disclosures in case of wilful defaulter 
Additional disclosure for relationship with struck off companies
Additional disclosure for pending registration of charges and pending satisfaction of charges
Additional disclosure for non Compliance with number of layers of companies 
Various ratios- (total 10 ratios) to be disclosed alongwith numerator and denominator and reason for variation with previous year 
Various additional disclosures in case of utilization of borrowed funds and share premium etc.

4. For PART-II Profit & Loss Account 
Additional disclosure for undisclosed income surrendered during any search or survey under income tax act. 
Various detailed disclosures for CSR 
Details of trade or investment in any crypto currency or virtual currency. 

Snapshot of Mca changes in Audit / Board report; Amendments in Schd III; Use of Accounting software with edit logs/ audit trail.....
1. Mandatory use of Accounting Software having Audit Trail
From FY commencing on 01.04.2021, every Company shall use Accounting Software having feature to record audit trail of each transaction, creating the edit log of changes made & ensuring that the audit trail cannot be disabled.......
Read More 

2. Other Matters to be Included in Auditors Report
a. Reporting regarding advances, loans & Investment other than disclosed in notes to accounts.
b. Receiving of funds for further lending or investing other than disclosed in notes to accounts.
c. Dividend declared or paid is in compliance of section 123 of CA, 2013.
d. Comment of use of Accounting Software having Audit Trail & other rules therein.......
Read More 

3. Amendments in Schedule III from 1st day of April, 2021
As per the amendments many new disclosure has been mandatory as detailed below:
a. Disclosure of Shareholding of Promoters
b. Trade Payables ageing schedule with age 1 year, 1-2 year, 2-3 year & More than 3 years
c. Reconciliation of the gross and net carrying amounts of each class of assets
d. Trade Receivables ageing schedule with age 1 year, 1-2 year, 2-3 year & More than 3 years
e. Detailed disclosure regarding title deeds of Immovable Property not held in name of the Company.
f. Disclosure regarding revaluation & CWIP ageing.
g. Loans or Advances granted to promoters, directors, KMPs and the related parties
h. Details of Benami Property held
i. Reconciliation and reasons of material discrepancies, in quarterly statements submitted to bank and books of accounts.
j. Disclosure where a company is a declared wilful defaulter by any bank or financial Institution
k. Relationship with Struck off Companies
l. Pending registration of charges or satisfaction with Registrar of Companies 
m. Compliance with number of layers of companies
n. Disclosure of 11 Ratios 
o. Compliance with approved Scheme(s) of Arrangements
p. Utilisation of Borrowed funds and share premium
q. Details of transaction not recorded in the books that has been surrendered or disclosed as income in the tax assessments
r. Disclosure regarding Corporate Social Responsibility
s. Details of Crypto Currency or Virtual Currency.....
Read More 

The Finance Minister, Nirmala Sitharaman, has introduced ‘Notice of Amendments’ to the Finance Bill, 2021 in the Lok Sabha on 22nd March. 
One of the most significant changes is in respect of the rise in limit for tax exemption on interest earned on provident fund contribution by employees to Rs 5 lakh per annum in specified cases as against Rs 2.5 lakh proposed in the Budget. 
It also imposed minimum equity holding requirements on ULIPs with high premiums. ULIPs need to either have 65% of their assets in equity if they are directly investing in stocks or 90% of their assets in equity if they are investing indirectly in stocks through instruments like ETFs The original Finance Bill had stipulated that ULIPs with annual premiums over Rs.2.5 lakh would lose their tax-exempt status on maturity proceeds under Section 10(10)(D) of the Income Tax Act, 1961, and would be taxed on par with equity mutual funds. 
The other significant amendment was that the offshore e-commerce platforms do not have to pay a 2% equalization levy, or digital service tax on that portion of goods which are sourced from India. 

The Lok Sabha today passed the Finance Bill, 2021, which gives effect to the financial proposals of the central government for the financial year 2021-22. Finance Minister Nirmala Sitharaman replied to the debate on the bill which has some changes in the proposals made in the union budget. The passage of the Finance Bill by Parliament marks the completion of the budgetary process. Apart from the Finance Act, the Bill also proposes to amend the Income Tax Act, 1961; Life Insurance Corporation Act, 1956; the Securities Contracts (Regulation) Act, 1956; the Central Sales Tax Act, 1956; the SEBI Act, 1992; etc.

Banks face Rs 1.3 lakh crore NPA rise, Rs 7,500 crore refund outgo: 
Banks will see bad loans rise by Rs 1.3 lakh crore and an outgo of Rs 7,000- Rs7,500 crore as reimbursement of interest on interest to those with loans outstanding during the moratorium period as per rating firm ICRA. 
The SC on Tuesday said that it will not interfere in the NPA classification but directed lenders to waiver interest on interest for all borrowers. 
As per ICRA's estimates, on a proforma basis, the gross NPAs of the banks stood at Rs. 8.7 lakh crore or 8.3% of advances as against the reported GNPA of Rs. 7.4 lakh crore (7.1%) as of December 31, 2020. Also, on a proforma basis, the Net NPA for the banks stood at Rs. 2.7 lakh crore or 2.7% of advances as against the reported NNPA for all banks of Rs. 1.7 lakh crore (1.7%) as of December 31, 2020.

Gifting to and from HUF:
1. RELATIVES OF HUF: In case of HUF, all its members are relatives. As per provisions of Section 56(2)(X) of Income Tax Act,1961, gifts received from members shall be exempt in hands of HUF.
2. Taxation of any amount given by the donor i.e., any gift given by the donor is not taxable in the hands of donor and is specifically not regarded as transfer under Section 47 of the Act. So, any amount given/ asset transferred by the donor without any consideration is not taxable in the hands of donor.
3. However, it is not possible for an individual being a member (Relative of HUF) of HUF to convert his separate property into property belonging to HUF in view of the clubbing provisions contained in Section 64(2) of the Income-tax Act, 1956. In such a case, the income generated from such property would be assessable as his individual income only and not as HUF income. 
4. However, the income which is so generated remains with the HUF and HUF is free to invest this income and any income generated out of such reinvested income is not liable for clubbing and remains with the HUF. Thus, though the initial income is clubbed in the hands of the person who has given the gift, income from income in future years is not to be clubbed.
5. In the context of an individual as a recipient of gift from an HUF, the definition of donor relative does not include an HUF. Hence, on plain reading of law, it appears that the gift received by individual HUF members (in excess of specified limits) from the HUF shall be chargeable to tax in the hands of individual members.
6. Recently the Chandigarh bench of the Income-tax Appellate Tribunal in case of Pankil Garg (ITAT Chandigarh) held that the provision of section 56 (2)(vii) of the Income-tax Act, 1961 (the Act) does not apply to a gift given by an HUF to its members, on the premise that a member has pre-existing right in the family properties.

HC sets aside service tax notice issued on the basis of information retrieved from income tax record
A recent Bombay High Court (HC) ruling. The issue in the writ petition involved was whether show cause-cum-demand notice can be issued basis the information retrieved by the department from income tax record. 
The petitioner is a partner in a firm. Basis the information collected from the income tax return filed by the firm, Revenue formed a view that the remuneration received by petitioner from the firm was subject to service tax. Accordingly, a show cause-cum-demand notice (notice) was issued. 
Aggrieved, the petitioner filed a writ petition before the HC. 
Revenue, in its reply affidavit, admitted that activities undertaken by the petitioner as a partner (profit sharing) or salaried individual were not liable to service tax under the Finance Act, 1994. Thus, to this extent, the notice may be withdrawn. However, certain clarifications were still needed from the petitioner regarding income from other sources. 
Petitioner submitted that in view of Revenue’s admission, the notice should either be withdrawn or quashed. Basis the material if any, for clarifications on other issues, department can issue a fresh notice.  
Accordingly, HC set aside and quashed the notice, clarifying that department may be at liberty to issue a fresh show cause notice in such case. 
In the past, notices were being issued to businesses basis the data mismatch between income tax and service tax records. The observation of the Court that service tax cannot be demanded merely basis information collected from income tax and without verifying the taxability of the transaction, may help in reducing unwarranted litigation.  
It is pertinent to note that the Revenue has admitted the position that partner’s remuneration (profit share or salary) is not liable to service tax. The same position may also hold good under Goods and Services Tax (GST).

CAG has been requesting for unrestricted access to GST-related data of all taxpayers from the GST Network (GSTN) servers for the purpose of audit, citing its constitutional and legal requirements. The issue is before the GST Council, which is expected to take a view on this matter soon, the people quoted above said on condition of anonymity. GSTN, a not-for-profit private limited company, is the digital backbone of the indirect tax regime.
CAG and the Union finance ministry did not respond to email queries on this matter.
Centre and state government officials want CAG to continue with the earlier practice that was prevalent before the introduction of the GST in July 2017 – jurisdiction-based digital access to indirect tax data, one person said.
“Although the government is providing jurisdiction-based digital access to audit officers from December 2019, the CAG office wants unrestricted access to all GST data of all taxpayers from GSTN servers through APIs [Application Programme Interface],” he said.
“GSTN will, anyway, be obliged to share data with CAG, once it is 100% owned by the government,” he said. The government has already initiated the process to transfer 51% equity stake held in the company by non-government institutions to the Centre and states equally, he added.
The GST Council on May 4, 2018 decided to convert GSTN into a 100% government-owned entity. The Union Cabinet approved the move on September 28, 2018. Currently, non-government institutions have a majority stake of 51% in the company, while the Centre and states have 24.5% stake each.

Cadbury India Accused Of Corruption, Fraud. CBI Files Case
Sources in the agency said Cadbury India, in conspiracy with Central Excise officials, had availed excise benefits to the tune of Rs 241 crore for its unit for manufacturing 5 Star and Gems in Himachal Pradesh. 

In terms of Schedule II of the CGST Act 2017, development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software and temporary transfer or permitting the use or enjoyment of any intellectual property right are treated as services. But, if a pre-developed or pre-designed software is supplied in any medium/storage (commonly bought off-the-shelf) or made available through the use of encryption keys, the same is treated as a supply of goods classifiable under heading 8523. Off the shelf or canned software is goods.
Development, design, programming, customization, adaptation, upgradation, enhancement, implementation of Information Technology software shall be treated as service [Clause 5(d) Schedule II of the CGST Act]. Supply of keys, access code etc. shall be treated as supply of services as these are temporary transfer or permitting the use or enjoyment of any intellectual property right [Clause 5(c) of Schedule-II of the CGST Act]

The Companies act has made the  amendment in schedule V of companies Act 2013 regarding the maximum limit in Director Remuneration vide notification dated 18/03/2021 as follows :

ICAI Council Decision:
Derivative translations are not business activity and would therefore not be deemed as prohibited activity in their individual capacity (and in professional capacity). 

The central government is planning to roll out complete GPS-based toll collection within a year. If this plan follows through then toll booths will be defunct in the country. The announcement was made by Road Transport and Highways Minister Nitin Gadkari on Thursday in Lok Sabha. FASTag is valid for five years from the date of issuance. There is a one-time fee of Rs 200, while reissuance costs Rs 100. Refundable security costs Rs 200. From February 16, the government made it mandatory for vehicles without FASTag to pay double toll at electronic toll plazas.

Rajya Sabha passes the bill to hike FDI in Insurance:
1. A bill to increase foreign direct investment limit in the insurance sector to 74 per cent from the current 49 per cent was approved by the Rajya Sabha. 
2. The public sector insurance market share is merely 38.78%, whereas private sector enjoys 48.03% of the market share
3. As per the bill, the majority of directors on the board and key management persons would be resident Indians, with at least 50 per cent of directors being independent directors, and specified percentage of profits being retained as a general reserve.
4. It may be noted that the foreign investment in insurance sector was first permitted in the year 2000 up to 26%. It was in 2015 when the government had last hiked the FDI cap in the insurance sector from 26 per cent to 49 per cent. 
5. From 2015 onwards, in the last five years, ?26,000 crore foreign investment has come in and 12 new insurance firms have opened up. 
6. The bill needs to be passed in the Lok Sabha, which will then require the President’s assent to become a law.

The Lok Sabha on Monday guillotined all demands for grants related with FY2021-22. The House also approved Appropriation Bill. With this one, more process of Union Budget has been completed. Now, the Lok Sabha is expected to take Finance Bill for consideration and passage next week. This Bill has all the provisions prescribing changes in the tax laws. As, the government has already indicated that current session of Parliament likely by March 25, its effort is to complete the entire Budget exercise by that data, so that it could be implemented from April 1.

For two-wheelers older than 15 years the government has proposed to increase the fees to Rs 1,000. The charge for renewal and grant of fitness certificate of three-wheeler or quadricycles has been set at Rs 3,500, while the charge for light motor vehicles has been set at Rs 7,500. Similarly, Rs 10,000 will be charged for renewal and grant of fitness certificate for medium goods or passenger motor vehicles and Rs 12,500 will be charged for heavy goods or large passenger motor vehicles. The development comes close on the heels of the voluntary vehicle scrapping policy announced in the Union Budget on February 1 for 2021-22 which provides for fitness test after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years.

An inspection was conducted on a taxpayer registered in Jagadhri, Yamunanagar dealing in supply of Mobile Phones and other electronic items mainly through E-Commerce platforms such as Amazon, Flipkart etc. It was found that the taxpayer was not discharging his complete tax liability on the supplies made through E-Commerce Companies.
This was one of the first investigations that was conducted on the basis of TCS data. Through analysis of TCS data, it was found that a gap of more than Rs. 10 Crores existed between the taxable value declared by the taxpayer in his GSTR-3B and the net value on which TCS was collected by E-Commerce companies for two different entities of the same taxpayer. On inspection, the taxpayer voluntary deposited Rs. 60 lacs (Rs. 50 lacs in input tax credit and Rs. 10 lacs in cash). Detailed investigation is under process.
It is advised that suppliers who are selling goods through E-Commerce companies such as Amazon, Flipkart etc. or services through E-Commerce platforms deducting TCS such as Swiggy, Zomato etc. shall pay their tax dues as their actual turnover to avoid interest, penalty and other penal action under the HGST Act, 2017.

The practice among small businesses of issuing ‘kacha bills’ or informal sales invoices to under-report turnover is likely to become a thing of the past with the government quietly extending the scope of e-invoicing to ever more businesses. As per current plan, from 1 April, businesses with sales of more than ?50 crore will have to generate e-invoices on their business-to-business transactions, down from the current threshold of ?100 crore. The government’s idea is to make this obligation applicable to all business-to-business deals later this year.

Tata Sons has agreed to acquire control of India's largest online grocer BigBasket in a deal valued at more than $1 billion. Tata Digital, the newly floated subsidiary which is building Super App, looks to strengthen its e-tail portfolio through the acquisition. Reliance Industries recently acquired additional equity stake in the US-based technology company skyTran Inc for $26.76 million. Mukesh Ambani-led company increased its shareholding to 54.46 per cent from 26.3 per cent in the firm. RIL plans to develop pod taxi prototype in India, a next-generation transportation system.
Jio Platform plans to invest $200 million in the homegrown venture capital firm Kalaari Capital. The deal is expected to give Reliance visibility in startup ecosystems in emerging sectors. RIL acquired four of Kalaari's portfolio companies in the past--- edtech startup Embibe, online lingerie retailer Zivame, AI-powered chatbot Haptik and online furniture startup Urban Ladder. Aditya Birla Fashion and Retail (ABFRL) has bought significant stakes in luxury couture businesses of fashion designers Sabyasachi and Tarun Tahiliani. ABFRL bought a 51 percent stake in Sabyasachi for Rs 398 crore last year. In 2019, it struck a partnership with designer duo Shantanu and Nikhil.

The uncertainty around cryptocurrencies in India continues as the government is now planning to propose a new bill which will not only ban digital money but will also fine anyone trading in the country or even holding such digital assets. This will impact Bitcoin, Dogecoin and other crypto money investors. The new bill proposes to criminalise possession, issuance, mining, trading and transferring crypto-assets, a senior government official told Reuters.
The government has been planning an action against cryptocurrencies for past few months but recent comments had given some hope to investors. However, if the new bill is enacted into a law, it will be a point of concern for them. This will make India the first major economy to make holding cryptocurrency illegal. Even China, which has banned mining and trading, does not penalise possession.
The official said that investors will be given a window of six months to liquidate their assets before a penalty is levied on them. In India, over 7 million people are believed to have invested more than $1 billion in cryptocurrency and would be hoping for a way to get reimbursed before a law is imposed.
World’s biggest cryptocurrency hit a record high $60,000 on Saturday, nearly doubling in value this year as its acceptance for payments has increased with support from such high-profile backers as Tesla Inc. 

The government has submitted the first list of 12 public sector undertakings (PSU) set to be privatised, as announced in the Union Budget 2021 presented by Finance Minister Nirmala Sitharaman on 1st Feb 2021. The list includes public sector banks and insurance companies that are a part of the Centre's ambitious plan to privatise PSUs to meet the Rs 1.75 lakh crore disinvestment target. Distressed by the government's decision, public sector banks (PSBs) in India under the umbrella body of Union Forum of Bank Unions (UFBU) of nine unions have called for a two-day strike on March 15 and March 16 as a mark of protest against the proposed privatisation.

India’s foreign exchange reserves are the 4th largest:
1. India’s foreign exchange reserves have surpassed Russia’s to become the world’s fourth largest, as RBI continues to hoard dollars to cushion the economy against any sudden outflows.
2. India’s foreign currency holdings fell by $4.3 billion to $580.3 billion as of March 5, as per RBI data, edging out Russia’s $580.1 billion. 
3. The RBI bought a net $88 billion in the spot forex market last year. 
4. As per IMF data, China has forex reserves of $3336 billion, Japan has $1379.4 billion as on 28th Feb and Switzerland has $1080.3 billion as on 31st Jan. 

Goods and service tax (GST) authorities have asked field units to identify top taxpayers, find the defaulters and push them to pay more tax. Officers have been directed to call up the top 200 return defaulters for February belonging to the Central jurisdiction and ask them to file the tax returns.
The directive, aimed at increasing revenue mobilisation for achieving annual targets for FY21, was issued earlier this week. 
“As we approach the end of the financial year, all-out efforts need to be made by ward authorities and zonal incharges,” an office memorandum issued by Delhi state authority earlier this week said. 

The Karnataka High Court issued the instructions to Investigating Officers during Search of Smartphones, Laptops, Electronic Gadgets, Email Accounts, etc. When carrying out a search of the premises, as regards any electronic equipment, Smartphone, or an e-mail account, the search team will be accompanied by a qualified Forensic Examiner.

A  new notification has been issued to amend Income Tax Rules called Income Tax (4th Amendment Rules, 2021). 
It lays down that A Statement of Financial Transactions shall also be filed U/S 285BA by the following:
1. Recognised Stock exchanges, registrars, depositories in the case of sale of mutual funds, listed securities.
2. Companies in the case of dividend income to the shareholders. 
3. A bank, NBFC or a post master general in the case of interest income to account holders. 

ITAT refuses to delete capital gains addition of Rs.27.39 Crores:
ITAT Delhi case of WGF Financial Services Pvt Ltd (ITA 8218 / DEL / 2019)
1. The lenders were making pressure on the assessee to honor its guarantee taken by it for the repayment of the loan by the borrower. Since the borrower defaulted in repaying the loan taken from Indiabulls Financial Services Ltd. (IBFSL), the assessee was asked to sell the mortgaged property.
2. The assessee was of the view that this is not a capital gain since, the property was sold to recover the loan by the lender and no money was received by the assessee for its benefit or use. 
3. The AO was of the view that since the Sale Deed itself mentioned that there was no mortgage and that the assessee was the sole and absolute owner, it cannot be said that the sale was forced sale and made an addition as a capital gain of Rs 27.39 crores. The ITAT Delhi held as below:
1. The entire sale consideration was realized by the assessee and thereafter the sale consideration was taken by IBFSL in discharge of its loan.
2. The income did accrue to the assessee and it cannot be said that the assessee sold the said plots of land involuntarily as forced sale. 
3. So the ITAT refused to delete addition of Rs.27.39 Crores as a taxable long-term capital gain.  

Madras HC directs GST department to enable amendment to GSTR-1 by Appellant
Pentacle Plant Machineries Pvt. Ltd. Vs Office of GST Council And Ors.  (Madras High Court) vide WP 1022 of 2020
Since Forms Gstr 1A and Gstr 2 are yet to be notified, the petitioner should not be mulcted with any liability on account of the bonafide, human error. 

Discontinuation of Cheques of Merged Banks
This is to alert you that the cheques & passbooks of the following merged banks will be invalid and will not be accepted in the banking system with effect from 01-Apr-2021.
1. Dena Bank
2. Vijaya Bank
3. Corporation Bank
4. Andhra Bank
5. Oriental Bank of Commerce (OBC)
6. United Bank
7. Syndicate Bank
8. Allahabad Bank
Your one or more bank account details, viz. account number, IFSC Code, MICR Code, branch address etc. have been changed due to merger of above listed banks.
To avoid inconvenience in future, I advice you to take the following action immediately:-
 *_Please contact your bank and get the new cheque book and passbook at the earliest. Keep your old passbooks & cheque books safely._*  Avoid last minute rush!!
Also, if your details like registered mobile number/ address/ nominee etc. are not added/updated, then do update the same too.
Once you receive your new passbook &/or cheque book, please update your bank details in all your financial instruments, i.e. Mutual Fund folios, Demat & trading accounts, Life Insurance policies, Income Tax account, FDs/RDs, PF accounts & other deposit accounts, Lockers, Gas agencies (if you are receiving subsidies) and all other places where your bank account needs to be updated. All these are beneficial, especially in cases like claiming survival benefits, maturity proceeds, redemptions etc.
Please share your old bank's cheque leaf name with account holder's name(s) & new bank's cheque leaf with account holder's name(s), both in original to get bank details updated in mutual funds folios. 
The mergers are as follows:-
1. Dena Bank with Bank of Baroda
2. Vijaya Bank with Bank of Baroda
3. Corporation Bank with Union Bank of India
4. Andhra Bank with Union Bank of India
5. Oriental Bank of Commerce (OBC) with Punjab National Bank
6. United Bank with Punjab National Bank
7. Syndicate Bank with Canara Bank
8. Allahabad Bank with Indian Bank
This message is for your information only. For further details please contact your bank.

*New Website and Functionality*
The creation of a completely new website, or the creation of significant new functionality to that website will fall under capital expenditure. Usually, the cost incurred for the creation, design, development and programming of a website will be treated as a capital asset. It is also the time when the business may purchase all the necessary hardware to support the website. These purchases will follow existing capitalization policies, will be put on the balance sheet and amortized.
The cost of any additional enhancements should also be treated as new software which requires certain costs to be capitalized if they add functionality or are a product enhancement to externally marketed software. These can also include costs to upgrade the website to add new features such as adding pages to the website, adding sales capability, or adding payment capability.
*Improvements and Maintenance Costs*
However, improvements to an existing website that update content or improve ease of use, but not functionality, are recurring expenses or expensed when incurred. They are therefore revenue expense and are similar to on-going maintenance and repairs for a physical asset such as a building.
Typical maintenance-type costs would include costs to update web pages, correcting minor style or formatting problems, fixing bugs or broken links, or making formatting changes consisting of font size, types and colors.
Internal costs for minor upgrades and enhancements may be expensed as maintenance costs if they cannot be reasonably separated. In addition to training and website maintenance costs, you should also expense costs of creating new links, registering with search engines, analyzing usage, website hosting, and performing routine backups. 
On 8 May 2020, the Chennai Bench of the Indian Income-tax Appellate Tribunal (ITAT) gave its decision that digital content/animation software is an *intangible asset rather than computer software*, and is eligible for depreciation at the rate of 25%.
The ITAT held that the digital content developed by the taxpayer was copyrighted material stored in a computer. It was manipulated by the taxpayer for use in different films and retained the character of copyrighted material (i.e., an intangible asset). It could not be categorized as a computer program.
In view of the above, the ITAT ruled that the digital content developed by the taxpayer was an intangible asset, eligible for depreciation at the rate of 25%.

Income-tax paid by assessee to foreign tax jurisdictions could not to be refunded to assessee by Indian tax authorities as a matter of course; assessee is declined foreign tax credits
• Assessee (Public Sector Bank) earned income profits/dividend on its operations in several countries (both treaty and non-treaty jurisdictions) through its branches, subjected to payment of tax in treaty jurisdictions, non-treaty jurisdictions and withholding dividend income in different jurisdictions, but incurred loss at global level. Thus, assessee claimed that income tax paid by assessee to foreign tax jurisdictions should be refunded to assessee by Indian tax authorities.
• Said claim of assessee was rejected both by Assessing Officer and Commissioner(Appeals)
• Full foreign tax credits cannot be inferred to be permissible as a matter of course and normal practice. Just because co-ordinate benches have subconsciously taken a stand that seems to be condoning, and in a way legitimizing, a contrary perception, even if that be so, one cannot, particularly after taking a closer look at situation, follow the same course. When such huge national revenues, involving thousands of crores, are involved in this macro issue, one cannot afford to be superficial, or perfunctory, in approach.
• Hence, assessee is declined foreign tax credits and, accordingly, it is held that the assessee is not entitled to seek a refund of that money from the Indian tax exchequer. On a separate note, nevertheless, claim of assessee that these taxes paid abroad will be allowed as a deduction in the computation of the business income of the assessee. 
[2021] 125 taxmann.com 155 (Mumbai - Trib.)
Bank of India
Assistant Commissioner of Income Tax, Circle 2(1)(1), Mumbai

Maharashtra Budget 2021-22 highlights:
1. The budget classifies country liquor into two separate categories as branded and non-branded country liquor while increasing State Excise Duty on branded country liquor by 220 per cent of manufacturing cost or ?187 per litre, whichever is higher.
2. The VAT rate on sale of liquor as prescribed in Schedule-B of VAT Act is being increased from the existing 60 per cent to 65 per cent. The VAT on sale of liquor as prescribed in Section 41 (5) of the VAT Act is being hiked from the existing 35 per cent to 40 per cent.
3. A concession of 1 per cent was announced in stamp duty over the prevailing rate exclusively to women, provided the transfer of house property or registration of sale deed is in the name of a woman. A scheme for free travel of girl students in rural areas, from their villages to schools and colleges on Maharashtra State Transport buses was also announced.
4. The government has decided to provide zero per cent interest crop loans to farmers who take crop loans up to a limit of 3 lakh and repay in time. The interest amount on the crop loan will be paid by the government on behalf of the farmers.
5. 2,000 crore scheme for Strengthening of Agricultural Produce Market Committee (APMC) would be launched. 
6. A 33 per cent concession has been given to farmers having pending electricity bill and if the farmers pay 50 per cent of the remaining arrears by March 2022, an additional 50 per cent of the remaining amount will be waived off.
7. 170-km-long Pune Ring Road of eight-lane will be constructed at an estimated cost of 26,000 crore. The land acquisition work will be undertaken this year. 
8. Construction of the Pune-Nashik medium high-speed railway line of 235 km was announced at a cost of Rs 16039 crores. The state also allocated 9,573 crore for coastal road development between Revas in Raigad and Redi in Sindhudurg.

From March 13 to March 16, all banks in India will be closed for four days straight. While March 13 and 14 are the second Saturday and Sunday, bank unions have called a nationwide strike on March 15 and 16. Again, from March 27 to March 29, banks will be closed across India on the occasion of the fourth Saturday, Sunday, Holi

Parliament on Wednesday passed the National Capital Territory of Delhi Laws (Special Provisions) Second (Amendment) Bill, 2021, to regularise unauthorised colonies in Delhi. While the Rajya Sabha had passed the Bill on February 9, it sailed through the Lok Sabha on Wednesday. Minister of State (Independent Charge) of Housing and Urban Affairs Hardeep Singh Puri told the Lok Sabha that the Bill would give protection to unauthorised colonies from sealing till December 31, 2023.

Upcoming Last Dates: 
1. Last date for payment of last instalment of Advance tax for the financial year 2020-21 is 15th march 2021
2. Last date for payment of yearly advance tax for presumptive taxation is 15th march 2021
3. Last date for linking of pan with Adhaar is 31st march 2021 
4. Last date for tax savings investment or payment for deduction under section 80C, 80D, 80G is 31st march 2021
5. Last date for deposit of income tax TDS for deductions till 30th march 2021 is 31st march 2021 
6. Please deposit ESI/PF timely within due dates of 15th of the succeeding month, otherwise it will be treated as your Income ( Employee Contribution ) and you have to pay Income Tax on same. 

Elon Musk just hit a new milestone: He made a record $25 billion in one day. Tesla Inc.’s 20% jump on Tuesday -- its biggest in more than a year -- pushed the billionaire founder’s fortune to $174 billion, closing the gap with Jeff Bezos, the world’s richest person, according to the Bloomberg Billionaires Index. 

The Goods and Services Tax Network (GSTN) has enabled new functionality to search HSN/SAC by Name or Code on GST Portal.

Action initiated to control fraudulent companies. Read More 

FAQ – To Opt Composition Scheme
Q: How do I apply for Composition Scheme if I am already registered as a regular taxpayer?
A: To opt for the Composition Levy, perform the following steps on the GST portal:
Log in to the Taxpayers’ Interface
Go to Services > Registration > Application to Opt for Composition Levy
Fill the form as per the form specification rules and submit.
Q:  When can I opt for the Composition Levy?
A: In order to avail this scheme, you need to file an online application to Opt for Composition Levy with the tax authorities. Taxpayers who can opt for this scheme can be categorized as below:
New Taxpayers: Any person who becomes liable to register under GST Act, after the appointed day, needs to file his option to pay composition amount in the Application for New Registration in Form GST REG-01.
Existing Taxpayers: Any taxpayer who is registered as normal tax payer under GST needs to file an application to opt for Composition Levy in Form GST-CMP-02 at GST Portal prior to the commencement of financial year for which the option to pay tax under the aforesaid section is exercised.
Q: I am a registered taxpayer availing the composition scheme under GST Portal. Do I need to file fresh application to opt for composition scheme?
A: For those taxpayers, who are already availing the composition scheme, there is no requirement to file fresh application opting for composition scheme, subject to compliance of relevant conditions/restrictions in this regard. 
The eligible taxpayers, who wish to avail the composition scheme for FY 2021-22 may opt in for composition up to 31st March 2021

The Supreme Court observed that, even in case of a joint liability, in case of individual persons, a person other than a person who has drawn the cheque on an account maintained by him, cannot be prosecuted for the offence under Section 138 of the Negotiable Instrument Act.  Observing thus, the bench allowed the appeal and quashed the complaint against the accused (wife). Case: Alka Khandu Avhad vs. Amar Syamprasad Mishra [CrA 258 OF 2021]

The Kerala High Court issued the notice to the Central Board of Indirect Taxes and Customs (CBIC) in a plea challenging applicability of GST on importers of goods who are not a recipient of Service.
The Petitioner is neither the provider nor recipient of the service but the Importer of goods, who is not a party with regard to service of transportation of goods or ocean freight. His contract is with the supplier of goods on CIF/C basis as per which the goods have to be delivered at the port of destination from where he is taking delivery after paying igst  on the goods imported. The Single Judge bench of Justice A.M.Badar while issuing the notice to the CBIC, DGGI and Joint Commissioner of Central Tax and Central Excise granted the interim relief by staying further actions in pursuant to the show cause notices issued under Notification No. 10/2017 integrated Tax (Rate) dated June 28, 2017.

The Karnataka bench of the GST Authority for Advance Rulings (AAR) has held in its recent order that hand sanitisers are not a medicament. As a result, these would be subject to a GST levy at 18%.
Wipro Enterprises, which manufactures consumer products such as soaps, toiletries and bulbs, began to produce and market hand sanitisers on a large scale in the backdrop of the pandemic. The company is part of the Wipro Group, which is also known for being one of the tech giants in India.
In June last year, it approached the AAR to determine the appropriate classification of hand sanitisers and hence the GST rate. It submitted that the product which contained 95% ethyl alcohol and had obtained a drug licence should be classified under chapter heading 3004. This chapter covers medicaments having a therapeutic or prophylactic value. Referring to various court decisions, it pointed out that hair oil used for killing lice, or iodine cleaning solutions had been regarded as medicaments.
However, the AAR bench observed in its recent order that hand sanitisers cannot be called a therapeutic agent as they do not treat a disease already prevalent in a patient. Second, this product cannot be considered as prophylactic goods either as it is not specific to any disease but is an alternative to soap. Further, it cannot be compared with polio drops or Covaxin. Thus, it is not a medicament and would be subject to 18% GST.

Supreme court providing deep succor and solace to limitation in landmark order on 08th March 2021;  held notably 
We have considered the suggestions of the learned
Attorney General for India regarding the future course of action. We deem it appropriate to issue the following directions: - 
1. In computing the period of limitation for any suit,
appeal, application or proceeding, the period from 15.03.2020 till 14.03.2021 shall stand excluded.
Consequently, the balance period of limitation remaining as on 15.03.2020, if any, shall become available with effect from 15.03.2021.
2. In cases where the limitation would have expired during the period between 15.03.2020 till
14.03.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 15.03.2021. In the event the actual balance period of limitation remaining, with effect from
15.03.2021, is greater than 90 days, that longer period shall apply.

The Ministry of Micro, Small, and Medium Enterprises (MSME) notified that GSTIN is not Mandatory for MSME Udyam Registration. The government has earlier provided that PAN and GSTIN  is Mandatory wef 31St March 2021 for MSME Udyam Registration has now relaxed the condition and provided that the exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Tax Act, 2017.

Cgst Notification no 05 issued- Now taxpayers having turnover exceeding Rs 50 Crores will have to generate e Invoices effective April 1, 2021
Taxpayers whose aggregate turnover exceeds 50 Crore Rupees in any of the Financial Years from FY 17-18 to FY 20-21, will be required to issue E-invoice from 01st April 2021. The present limit is 100 crores, which is all set to change from April 1, 2021. (Notification no. 05/2021-Central Tax dt. March 8, 2021).

CBIC issues guidelines for Provisional Attachment under GST
The Department across the country has been increasingly passing orders of provisional attachment of properties on mechanical basis causing hardship to taxpayers. In this regard, in pursuant of Gujarat High Court directions, the CBIC has issued guidelines for the dept officers. Guidelines states that such provisions shall not be invoked in cases of technical nature and should be resorted in cases where there is an evasion of tax or where wrongful ITC is availed /utilized /wrongfully passed on. (Circular No. Pol-41/1/2017-Policy3552/CT & GST Dated 25th February, 2021).

Selection of type of business after logging in GSTN
Taxpayers are required to select their business activity only once after logging into GSTN, 
as  (1) Manufacturer, (2) Wholesaler/ Distributor/ Retailer, (3) Service Providers & Others, 
based on highest turnover amongst them. One can change the same later. 
Detailed Notes are as follows: 
1. One can select only one core business activity. 
2. In case all activities are applicable, kindly select your core business activity.
3. Others will include Work Contract and Other Miscellaneous items. 
4. In order to understand the definitions of Manufacturer/ Trader/ Service Provider, one can click on “Information Button”. 
5. Further if one wants to change it in future it can be done by navigating MY PROFILE>CORE BUSINESS ACTIVITY STATUS.

Barely a few days before the state’s Budget is to be presented in the ongoing Vidhan Sabha’s Budget Session, Haryana Urban Local Bodies Department has imposed a two percent duty on transfer of immovable properties located within the limits of Municipal Corporations across Haryana.
Chief Minister Manohar Lal Khattar, who also holds the Finance portfolio, will be presenting state’s Budget on March 12.

Companies face probe after opting for tax dispute settlement under Sabka Vishwas Scheme, tax notices, summons servers to pre-gst, dispute resolution cases 

Delhi HC deputed a supervisory team comprising of retired judges of this court in examining each and every order passed grating bails. Immediate actions will be taken against those high judicial officers if the order senses the biasness and corruptness in any way. 

The CBDT have issued instructions regarding selection of cases for Re-Opening of Assessments and issuing notices u/s 148 of the Act. No Other Cases other than the following shall be considered for re-opening of assessment.
1. Cases arising out of Audit Objections which require action
2. Where Information is received from any other Government or Law Enforcement Agency
3. Cases flagged by reports of the Directorate of Investigation or Criminal Intelligence
4. Cases selected from Non Filing Management Systems (NMS) 
5. Cases flagged by Directorate of Income Tax (Systems) as per Risk Profiling Criteria
6. Information arising out of Survey Action of the Income Tax
7. Where any information is received from any Income Tax Authority requiring action u/s 148, with approval of CCIT.
8. Cases under Central Circle & International Taxation Jurisdiction (separate rules to be formulated for the same)
In all the above cases, the Assessing Officer/Unit will have to form reasonable belief and ‘reasons to believe’ must be recorded before issuing notice u/s 148.

US proposes a wealth tax on the ultra millionaires:
1. Some US senators have proposed the ‘Ultra Millionaire Tax Act’ to narrow the wealth gap by asking the wealthiest 1 Lakh households to pay their fair share. 
2. The bill proposes the following scheme of taxation:
a. 2% annual tax on the net worth of households and trusts between $50 million and $1 billion
b. 1% annual surtax (3% tax overall) on the net worth of households and trusts above $1 billion
3. The additional revenue would be used to support child care, early and K-12 education, along with rebuilding the crumbling infrastructure of the U.S.

Finance Minister Nirmala Sitharaman hints that the Centre may not go for a blanket ban on digital currencies in the country; says it's open to experimentation with new technologies. In what can be a huge relief to cryptocurrency stakeholders in the country, Finance Minister Nirmala Sitharaman has hinted the Centre may not go for a blanket ban on digital currencies and that it's still formulating its opinion on the matter. She said the Centre was open to experimentation with new technologies and is not closing its minds for them.

The Karnataka bench of the GST Authority for Advance Rulings (AAR) has held in its recent order that hand sanitisers are not a medicament. As a result, these would be subject to a GST levy at 18%.
Wipro Enterprises, which manufactures consumer products such as soaps, toiletries and bulbs, began to produce and market hand sanitisers on a large scale in the backdrop of the pandemic. The company is part of the Wipro Group, which is also known for being one of the tech giants in India.
In June last year, it approached the AAR to determine the appropriate classification of hand sanitisers and hence the GST rate. It submitted that the product which contained 95% ethyl alcohol and had obtained a drug licence should be classified under chapter heading 3004. This chapter covers medicaments having a therapeutic or prophylactic value. Referring to various court decisions, it pointed out that hair oil used for killing lice, or iodine cleaning solutions had been regarded as medicaments.
However, the AAR bench observed in its recent order that hand sanitisers cannot be called a therapeutic agent as they do not treat a disease already prevalent in a patient. Second, this product cannot be considered as prophylactic goods either as it is not specific to any disease but is an alternative to soap. Further, it cannot be compared with polio drops or Covaxin. Thus, it is not a medicament and would be subject to 18% GST.

IRDAI has issued draft guidelines to the life insurance companies proposing to allow these companies to offer discounts for renewal premium collected in advance.
According to the draft circular, the discount should be equal to interest rates on savings bank account deposit of State Bank of India (SBI) as of April 1 of each financial year plus an addition of at least 100 bps.
This should be applicable for all advance premium during the entire financial year. Currently, SBI offers 2.7% interest rate on savings account deposits.
“Facility of discounts shall be offered to all existing policyholders and prospective policy holders under current on-sale products who want to pay renewal premium in advance,” the draft norms stated. The facility will also be available to customers who opted for auto-debited facility, but the insurance company has to deactivate that facility once the premium is received in advance. 

The Supreme Court on Thursday declined to issue directives on extending the Goods and Services Tax (GST) amnesty scheme, saying it was “a policy decision exclusively within the domain of the government". 
A Supreme Court bench comprising justices Dhananjaya Y Chadrachud and MR Shah dismissed a petition by a trader from Chhattisgarh’s Bilaspur who had urged the court to direct the Central government and the GST council to extend the amnesty scheme, giving more time to small businesses and MSMEs to file their returns.
The petition by Satyakam Arya had assailed the notification issued by the GST council on June 24, 2020 which had given time till September 30, 2020 for filing of returns between July 2017 and July 2020, capping the late fee at Rs.500. For any subsequent delay, a late fee of Rs.50 per day had been prescribed as penalty. It asked for an extension of the scheme by two months, besides reimbursement of the late fee already collected.
But the bench said in its order: “In our view, these reliefs, as sought in the petition, pertain in the realm of policy decisions. It would be inappropriate for this court to entertain a petition of this nature, such as extension of the amnesty scheme; a cap on the late fee to be collected; exemption of late fee paid for a period between March 25, 2020 and June 30, 2020 and refund of the amount already collected towards late fee.”
The court emphasised that the amnesty scheme was itself a “policy intervention” by the government of India and that “the terms on which the amnesty scheme was executed in the realm of a policy decision.”

Road Transport Ministry notified Aadhar-based authentication of 18 services including learner’s licence, licence renewal, duplicate license so that applicants do not need to visit regional RTO offices. 
These services which can now be availed by citizens by the comfort of their homes include: Learner’s licence, Renewal of driving licence for which test of competence to drive is not required, Duplicate driving license, Change of address in driving licence and Certificate of Registration, Issue of international driving permit, Surrender of class of vehicle from licence, Application for temporary registration of motor vehicle, Application for registration of motor vehicle with a fully built body. Other services include Application for issue of duplicate Certificate of Registration, Application for grant of NOC for Certificate of Registration, Notice of transfer of ownership of the motor vehicle, Application for transfer of ownership of the motor vehicle, Intimation of change of address in Certificate of Registration, Application for registration for driver training from accredited driver training centre, Application for registration of motor vehicle of diplomatic officer, Application for assignment of fresh registration mark of the motor vehicle of diplomatic officer, Endorsement of hire-purchase agreement Termination of hire-purchase agreement.

The SBI economists said bringing petrol and diesel under the goods and services tax is an unfinished agenda of the GST framework and getting the prices under the new indirect taxes framework can help. Petrol price can go down to Rs.75 a litre across India if brought under the ambit of the Goods and Services Tax (GST), but there is a lack of political will, which is keeping Indian oil product prices at one of the highest in the world, economists at SBI said on Thursday. Diesel will come down to Rs 68 a litre and the revenue loss for the Central Government and states will be only Rs.1 lakh crore or 0.4% of GDP, according to the calculation by the economists made under the assumption of global crude prices at $60 a barrel and exchange rate at Rs 73 per dollar.

A ‘Nil’ refund claim was filed by numerous registered persons for a certain period of time in form GST RFD-01A/RFD-01 on a common portal. Many of them filed it unintentionally despite the fact that they were eligible for claim for that particular period and under that particular category. Presently, the unintentional selection of ‘Nil’ refund filing and once a ‘Nil’ refund claim has been filed for a period under a particular category, re-filing the refund claim for that opted period under that particular category can not be done on the common portal. Consequently, many registered persons requested for a mechanism that will allow them to re-file the refund claim for the period and the category under which the NIL refund claim was inadvertently filed initially. Therefore, the GSTN had decided to overcome this issue by enabling the option to withdraw Nil Refund applications on the Goods and Service Tax (GST) portal which will ensure the uniform implementation of the provision of Law.

The Goods and Service Tax Network (GSTN) has notified the  Upcoming changes in GSTR-1 Table-12 on GST Portal. The Upcoming changes in Table-12 format of GSTR-1 Return are changes in the format of GSTR-1 Return and changes in the number of digits of the HSN Code to be reported. From 1st April 2021 onwards, it is mandatory to report a minimum 4 digit or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of Aggregate Turnover on PAN in the preceding Financial Year.

Tax payers with turnover between Rs. 50 Cr and Rs. 100 Cr are enabled for testing on Sandbox which means we can expect notification to be issued soon for the above category of RTPs 

Validity of CGST Rule 36(4) 
Notice issued by Hon'ble Gujarat High Court In the Case Of : Surat Mercantile Association 
Vs Union of India- Order dated 27th January 2021 
Rule 36(4) of the Central GST Rules and Gujarat and GST Rules, 2017 restricts Input tax credit to be availed by the buyer of goods or services in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers in GSTR-1 return, to 5% of ‘eligible credit’ available in respect of invoices or debit notes the details of which have been uploaded by the suppliers in GSTR-1 return.
In other words, Input tax credit (ITC) of invoices or debit notes which are not reflected in GSTR-2A shall be available to the extent of 5% of eligible credit in respect of invoices or debit notes reflected in GSTR-2A.
Surat Mercantile Association has filed a petition before the Hon’ble Gujarat High Court challenging the constitutional validity and vires of Rule 36(4) of the Central GST Rules and the Gujarat GST Rules.
Hon’ble Gujarat High Court has issued notice to the Central and State Government to submit its response by 25th March, 2021.

FAQs for Seek VC
Q: What is VC?
A: VC stands for ‘Video Conferencing’. Using the VC facility, an assessee is
enabled to express or submit one’s response orally before an Income Tax Authority who has initiated the proceeding and expect the response from the user.
This facility has been enabled by the department as a substitute for personal
appearance/hearing before an IT Authority.
The facility for oral submission is in addition to submitting response in writing.
Q: Who can avail VC
A: It can be availed by only those taxpayers for whom a hyperlink VC is
enabled against a notice, as appearing in the e-Proceeding module, under the column “Video Conferencing”.
Login to e-Filing->e-Proceeding->Select Proceeding Name -> VC.
Q: Who can join VC
Can Authorized Representative also join the VC meeting
A: Only assessee can join VC. If any authorized representative has been
appointed through the e-filing account for such proceeding, then both assessee
and authorized representative can join. 
Q: What if VC date and time given is not suitable
A: If the VC date and time given by the department is not suitable for any
reason an adjournment request to some another date and time from the existing
date and time can be submitted through a functionality “Seek VC adjournment”.
The request for adjournment will have to be submitted before the expiry of VC
date and time. Once expired, no request for adjournment can be submitted.
Q: What is seek adjournment
A: Seek adjournment is a functionality provided to an assessee to submit a request to extend the response due date of a notice issued by an Income Tax Authority if the assessee is unable to submit response within the notice submission timelines mentioned.
Q: Who can avail seek adjournment facility
A:  Those taxpayers for whom a hyperlink “Seek” is enabled against a notice, as appearing in the e-Proceeding module under the column “Seek/View adjournment”.
Q: Is there any date limit up to which adjournment request can be sought
A:  Yes,
• If adjournment is sought before the response due date then up to 15 calendar days from notice response due date.
• If adjournment is sought after response due date then up to 15 calendar days from the date of seeking adjournment.
• However, no adjournment request can be raised for a date falling within 7 days prior to the “Proceeding Limitation Date”.

I-T raids on Taapsee Pannu, Anurag Kashyap, Vikas Bahl:
1. IT officials raided the premises of Anurag Kashyap and Tapsee Pannu as well as production house Phantom Films, which was co-promoted by Anurag Kashyap and producers Vikas Bahl and Madhu Mantena.
2. More than 30 locations were searched in Mumbai and Pune, including talent agencies Exceed Entertainment and KWAN, according to the news channel. Kwan is cofounded by Madhu Mantena. 
3. It is alleged that the movies produced by the production house Phantom Films have been superhit, but the profits and account statements of the company are showing disproportionately low income.
4. Tax raids are also underway at the properties of Reliance Entertainment Chief Executive Officer Shibhashish Sarkar. 
5. Earlier this year, Madhu Mantena bought the shares of Anurag Kashyap, Vikramaditya Motwane and Vikas Bahl in a bid to revive the company. This deal converted Phantom Films into Mad Man Venture, a new company in a joint venture between Madhu Mantena and Reliance Entertainment with both holding 50 per cent stake in the present company.
6. Bank accounts of the individuals and entities where raids were carried out are under the scanner of I-T Department.
7. Some inter-linked transactions between the entities searched were under the scanner of the Department and the raids were aimed at gathering more evidence into allegations of tax evasion.

IT dept detects Rs 220 crore black income after raids on TN-based tiles manufacturer:
1. The Income Tax Department has detected undisclosed income of about Rs 220 crore after it raided a leading tiles and sanitaryware manufacturer based in Chennai. 
2. A total of 20 premises in Tamil Nadu, Gujarat and Kolkata were searched and surveyed. 
3. Rs 8.30 crore cash was seized during the raids. 
4. Unaccounted sale and purchase of tiles were detected. Details of unaccounted transactions were unearthed in the secret office and the software maintained in the cloud. 
5. Authorities say that transactions to the extent of 50 per cent were out of books. Considering the previous turnover, the estimates indicate a suppression of income in the range of Rs 120 crore.
6. Allegedly, Rs 100 crore of undisclosed income was introduced by the group as share premium through shell companies. 

She was a "housewife". When she died in a scooter accident along with her husband, the insurance company calculated compensation only based on the husband's income. But the court would not accept it.
Instead, the court stated that a homemaker's work contributes "in a very real way to the economic condition of the family, and the economy of the nation, regardless of the fact that it may have been traditionally excluded from economic analyses. It is a reflection of changing attitudes and mindsets and of our international law obligations. And, most importantly, it is a step towards the constitutional vision of social equality and ensuring dignity of life to all individuals.”
A bench of Justices N V Ramana and Surya Kant enhanced the compensation by Rs 11.20 lakh to Rs 33.20 lakh to be paid to the father of the deceased man by the insurance company with an annual interest rate of 9% wef May 2014. 

With the CBDT extension of case related deadlines, FY 2021-22 time barring dates will be as:
Time Barring  of scrutiny  cases related to AY 2018-19 - 30th April 2021
Time Barring of penalties - 30th June 2021
Time Barring of Scrutiny cases related to AY 2019-20(Non-CASS)- 30th September 2021
Time Barring of Scrutiny cases related to AY 2019-20(CASS) & 2020-21(CASS & Through Approval)- 31st March 2022
Time Barring  date of Reopened cases will be subject to extension of date of issuance of notice u/148 of IT Act, if not extended than these Time Barring date of these cases may also be considered as 31st March 2022.

The DGFT vide Public Notice 40/2015-2020 dated February 25, 2021 amendment in Appendix 1B, Hand Book of Procedure 2015-20 to notify Noida, UP as Town of Export Excellence for Apparel products.

The Narendra Modi government on Thursday unveiled its plan to enact greater oversight over social media platforms like Facebook and Twitter and also bring digital media and streaming platforms into a stricter regulatory net.
The new rules will require big social media companies to take down unlawful content within a specific time-frame of being served either a court order or notice by an appropriate government agency. The rules also makes it mandatory for a ‘significant social media intermediary’ that provides services primarily in the nature of messaging (such as WhatsApp) to enable the identification of the “first originator” of the information.
This is a move aimed at tracking down people who use WhatsApp or Signal to spread fake news or carry out illegal activities, but is also one that cyber experts fear may require companies to break their end-to-end encryption protocols and pave the way for a surveillance state.
Publishers of news on digital media would be required to observe “Norms of Journalistic Conduct of the Press Council of India and the Programme Code under the Cable Television Networks Regulation Act” which the government says is needed to provide a “level playing field between the offline (Print, TV) and digital media”.

Delhi Govt reduces circle rate by 20% for registeration of land and immovable property vide notification dated 26th Feb 2021. The revised rates shall come into force with immediate effect till 30th September 2021 

The Budget Memorandum 2021 proposes to tax retrospectively from 01st July 2017; the subscriptions and fee charges to the members.  Several clubs and large cooperative housing societies (CHS) that relied on the ‘principle of mutuality’ and did not levy and collect the goods and services tax (GST) on the subscription or maintenance fees collected from their members are now worried as they will have to recompute their tax liabilities, dating back a few years. 

India’s fiscal deficit in the 10 months to end-January stood at Rs 12.34 lakh crore ($167 billion), or 66.8% of the revised budgeted target for the whole fiscal year, government data showed on Friday.
Net tax receipts were Rs 11.02 lakh crore, while total expenditure was Rs 25.17 lakh crore, the data showed.
On February 1, the government revised its fiscal deficit target for the current year that runs through March to 9.5% of gross domestic product (GDP), instead of its original target of 3.5% of GDP as the coronavirus pandemic lead to lower tax collection and higher spending.

Income Tax Department initiated search under section 132 of the Income-tax Act, 1961 on Thursday in the case of a Gurugram based real estate company, its promoters, directors and other group companies, covering a total of 20 premises. The said Company is in the business of government contracts specialising in construction of roads, highways, bridges and runways. The group is in the business of real estate development and residential complexes.
The search has yielded evidences of bogus long-term capital gain of Rs. 25 crore in the names of the main promoter and family members in the year 2012-13 and 2013-14, on which no tax has been paid.
The search has also established that bogus expenses in the form of sub-contracts to the tune of Rs. 100 crore have been claimed by the group, to reduce its taxable income. The parties in whose names such expenses were booked were found to be unaware of transactions made in their names and denied any such services done by them. This amount of Rs. 100 crore has been routed back to the group companies as share capital and share premium.
Cash of Rs. 1 crore and foreign currency worth about 14000 US dollars have been found and seized, so far. 15 lockers have been detected and have been placed under restraint.

The Ministry of Corporate Affairs (MCA) and Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, here today signed a Memorandum of Understanding (MOU) for data exchange between the two organizations. The MoU was signed by Shri Manoj Pandey, Joint Secretary, MCA, and Shri B. B. Gupta, ADG, CBIC, in the presence of Shri Rajesh Verma, Secretary, MCA, and Shri M. Ajit Kumar, Chairman, CBIC. The MoU is in line with the vision of MCA and CBIC to harness data capabilities to ensure effective enforcement. Both the organizations are going to benefit from access to each other’s databases which include details of import-export transactions and consolidated financial statements of companies registered in the country. The data-sharing arrangement gains significance in light of the development of MCA21 Version 3 which will utilize state of the art technology for enhancing the ease of doing business in India and improve the regulatory enforcement and similar steps by CBIC like the launch of ADVAIT (Advanced Analytics in Indirect Taxation) a 360-degree taxpayer profiling tool. AI/ML, data analytics will play a critical role in achieving this synergy.

The tax department has brought some of the top consultancies including McKinsey, Boston Consulting Group (BCG), Kearney and Blackstone Consulting under scrutiny along with some of the nation’s top law firms.
The department has claimed that the services provided by these firms were not exports, which would mean that those will attract 18% goods and services tax.
The lack of transparency around which companies are being classified as intermediaries or otherwise is creating a lot of complications, especially in refunds.

CBIC exempts certain classes of people from Aadhaar Authentication- 
It notifies that the provisions of sub section 6B or 6C of section 25 of the said Act shall not apply to a person who is: 
(a) not a citizen of India; or
(b) a Department or establishment of the Central Government or State Government; or
(c) a local authority; or
(d) a statutory body; or
(e) a Public Sector Undertaking; or
(f) a person applying for registration under the provisions of sub-section (9) of section 25 of the said Act.

MCA has released the Companies (Specification of definitions details) Second Amendment Rules, 2021 to further amend the Companies (Specification of definitions details) Rules, 2014. These shall come into force with effect from the 1st day of April, 2021.
For the purposes of the proviso to clause (52) of section 2 of the Act, the following classes of companies shall not be considered as listed companies, namely:- 
(a) Public companies which have not listed their equity shares on a recognized stock exchange but have listed their - (i) non-convertible debt securities issued on private placement basis in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008; or (ii) non-convertible redeemable preference shares issued on private placement basis in terms of SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013; or  (iii) both categories of (i) and (ii) above.
 (b) Private companies which have listed their non-convertible debt securities on private placement basis on a recognized stock exchange in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008; 
(c) Public companies which have not listed their equity shares on a recognized stock exchange but whose equity shares are listed on a stock exchange in a jurisdiction as specified in sub-section (3) of section 23 of the Act."

IT exemption to Haryana State Pollution Control Board:
1. The CBDT has notified that the income of the Haryana State Pollution Control Board is exempted under section 10(46) of the Income Tax Act 1961.
2. The CBDT has exempted under section 10(46) of the Income-tax Act notified vide notfn no. 8/2021, ‘Haryana State Pollution Control Board’ (PAN AAAJH0446F), a Board constituted by the State Government of Haryana under the Water (Prevention and Control of Pollution) Act, 1974, in respect of the specified income arising to the Board. 
3. The specified income includes Grant from Central Government; Grant from State Government; and  Consent fee for permission for setting up industry in the state of Haryana; Analysis fees or air ambient quality survey fees; Testing fees; Authorization fees; NOC fees; Cess reimbursement and cess appeal fees; Fees received under RTI Act, 2005; Public hearing fees; Recognition fees; Interest on loan and advances given to staff; and Interest on fixed deposit.
4. The notification shall be effective subject to the conditions that Haryana State Pollution Control Board, shall not engage in any commercial activity; activities and the nature of the specified income shall remain unchanged throughout the financial years; and shall file a return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961; and shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.

Nearly 40, 000 trade associations, representing eight crore traders of the country, has extended support to the Bharat bandh call by Confederation of All India Traders (CAIT) on February 26, demanding a review of the provisions of the goods and services tax (GST) regime. The All India Transporters Welfare Association (AITWA), an apex body of the organised road transportation companies, has also decided to support CAIT in the Bharat bandh demanding abolition of the new E-Way Bill or scrapping of certain rules. It has also urged the government to abolish E-Way Bill and track vehicles by using Fast Tag connectivity to E-Invoice and to scrap the penalty on transporters for any time-based compliance target of transit and make diesel prices uniform across the country.

The Directorate of MSME, Govt. of Haryana, has signed an MoU with eBay under Hon’ble Chief Minister Manohar Lal. The MoU will enable the MSMEs of Haryana to leverage eBay’s global platform and sell their products across 190 markets. eBay will offer special prices, schemes curated specially for MSME owners in Haryana.

Launched by the government in May 2020, Champions is a grievance registration and management system for micro, small and medium businesses to resolve issues with finance, labour, raw material, permissions, regulations, etc. that they faced particularly due to the pandemic. As of January 31, 2021, the portal has successfully resolved 26,693 registered complaints.

The Goods and Services Tax Network (GSTN) has enabled the option to download 2B summary & 2B in detail are separately available on GST Portal.
Form GSTR-2B has been generated on the basis of the information furnished by the suppliers in their respective FORMS GSTR-1/IFF,5 and 6.
It also contains information on imports of goods from the ICEGATE system.
It can be downloaded as either JSON file to view in offline tool or can be downloaded as Excel file.

GSTN is currently working on a notification system to alert the buyer and seller for reporting such mismatches. Once this system goes live, a communication mechanism between both the parties will be established, which should help reduce these mismatches.

The government is evaluating the introduction of faceless assessment under the goods and service tax regime, people aware of the development said. The move will be along the lines of the facility for assessment of income tax and customs and is expected to make adjudication and scrutiny by the tax authorities more transparent while reducing chances of tax evasion.

Ministry of Finance
CBIC provides facilitation for exporters having IGST refund issues
The Central Board of Indirect Taxes and Customs (CBIC) has extended the time limit for sanction of pending IGST refunds in such cases where records have not been transmitted to ICEGATE due to GSTR1 and GSTR3B mismatch error. This overcomes the problem of refund blockage by allowing refunds subject to undertakings/submission of CA certificates by the exporters and post refund audit scrutiny. This facilitation was issued Vide Circular 04/2021 and would be applicable to all shipping bills filed up to 31.03.2021.
The CBIC has also extended the facility for resolving invoice mismatch errors (classified as SB-005 error) through customs officer interface on permanent basis vide Circular 05/2021. Earlier this facility was provided for a limited period i.e. in respect of shipping bills filed up to 31.12.2019.
The exporter may avail the facility of correction of Invoice mis-match errors (error code SB-005) in respect of all past shipping bills, irrespective of its date of filing subject to payment of a nominal fee.
The CBIC has continuously taken a proactive approach to resolve issues faced by the trade. It is seen that a considerable number of exporters have been facing difficulties in getting their IGST refund sanctioned either due to lack of facility to amend GST 3B return or bona-fide clerical/human errors while filing the documents. With the endeavor of resolving all such pending IGST refund claims, CBIC has issued Circular 04/2021-Customs dated 16.02.2021 and Circular 05/2021-Customs dated 17.02.2021.
Source : https://pib.gov.in/PressReleasePage.aspx?PRID=1700008

WhatsApp explained what will happen to users who do not agree with the new rules of services and the policy for processing user data until May 15.
If you cancel the new terms after May 15, then for several weeks you can still receive calls and notifications, but you will not be able to read or send messages from the application. It is not yet clear what will happen after that; but WhatsApp has a new policy for deleting accounts that have been inactive for 120 days. This rule is likely to apply to accounts whose users do not agree with the new requirements.
WhatsApp has been sharing metadata with Facebook for years, and the only new information the messenger will now send is payment and transaction data to help Facebook better target ads for you across its various services.
Back in January, WhatsApp sparked a strong reaction after announcing that it would require users to agree to the new rules. Users began to switch to other services, including Telegram. Initially, the changes were supposed to take effect on February 8; but then the deadline for the adoption of the new rules was postponed until May 15.

6th meeting of the NITI Aayog: 
The sixth meeting of the NITI Aayog Governing Council concluded today with states along with the centre deliberating on various steps such as to reduce compliance burden on firms to boost manufacturing, initiating reforms at the state level, promoting exports through district level competition and increased public investment to complete projects under the National Infrastructure Pipeline. 
Prime Minister Narendra Modi, who is the chairman of the council made a strong case for repealing archaic laws and making it easier to do business in India, stating that the Centre and states need to work closely to boost economic growth.
The PM also called upon states to devise their schemes on the lines of the Centre's production-linked incentive (PLI) scheme to attract private investments.

Central government is in favour of merging the goods and services tax (GST) rates of 12% and 18% into a single slab, a top finance ministry official said, acceding to a demand first made by some states and endorsed by the Fifteenth Finance Commission (FFC). GST Council, India’s federal indirect taxes body, may discuss the matter at its meeting in March. 

Reserve Bank came out with a Master Direction for banks and card-issuing entities laying down common minimum standards to ensure security of digital payments. The Master Direction lays down guidelines for internet banking, mobile payments, card payments, customer protection and grievance redressal mechanism.

Income Tax Department surge in reopening of returns of small-time tax evaders, with income tax authorities deploying investigation units to search and survey suspect cases of tax evasion of up to Rs 50 lakh. Cases are being reopened for assessment years 2015-16, 2016 -17 and 2017-18 as no action will be possible beyond March 31 for these three years.

RBI came out with the draft guidelines for allowing derivatives trading in the credit default swaps (CDS) in over-the-counter (OTC) markets and on recognised stock exchanges in the country. As per the draft, the debt instruments eligible to be a reference or deliverable obligation in a CDS contract will include commercial papers, certificates of deposit and non-convertible debentures of original maturity up to one year, rated corporate bonds (listed and unlisted) and unrated rupee bonds issued by the special purpose vehicles set up by infrastructure companies. 

CBIC notifies Standard Operating Procedure (SOP) to implement the provision of suspension of GST registration. vide notification No. 94/2020- Central Tax, dated 22.12.2020, sub-rule (2A) has been inserted to rule 21A. The said provision provides for immediate suspension of registration of a person, as a measure to safeguard the interest of revenue, on the observance of such discrepancies /anomalies which indicate a violation of the provisions of Act and rules made thereunder; and that continuation of such registration poses an immediate threat to revenue.

Stressed assets of NBFCs are likely to touch Rs 1.5-1.8 lakh crore, or 6-7.5 per cent of their assets under management (AUM) by the end of this fiscal, says a report. However, the one-time COVID-19 restructuring window, and the micro, small and medium enterprises (MSME) restructuring scheme of the Reserve Bank of India (RBI) will limit the reported gross non-performing assets (GNPA). 

Registration for inoculation will open any day now for senior citizens.Pl keep watching the CoWin (Covid Vaccine Intelligence Work) site and app linked below. As yet both are only open for viewing and login by vaccinators. But the option to register could pop up sometime after Feb 15. When it does, you can register with your PAN card, Aadhar card, driving license or other & no and other details as required. You will be able to opt for the hospital most convenient to you. Once accepted, you will get an SMS confirming your registration with a 14 digit registration no. In due course after that you will get another SMS giving you a date and time for vaccination at the hospital you opted for. If you are particular about which vaccine you would like to take, pl check with the hospital of your choice about which one they are allotted.
The vaccination will be free for frontline workers. The cost to the general public has not been announced yet. 

Ahead of the cryptocurrency Bill, the government is likely to levy both income-tax (I-T) and goods and services tax (GST) on gains and trading of bitcoins or cryptocurrencies, said a senior finance ministry official privy to the development. A circular will be released soon, he added. “Bitcoins will be categorised as financial services attracting 18 per cent GST on fee commission collected under this segment.

The government notified the reduction in loan limit for debt recovery for NBFCs from Rs.50 Lakhs to 20 Lakhs.
It has been notified that the NBFCs with minimum asset size of Rs 100 crores, the minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 to be reduced from the existing level of Rs 50 lakh to Rs 20 lakh.

Goods and Services Tax officers will immediately suspend registration of taxpayers whose sales return or GSTR-1 forms show "significant differences or anomalies" from the return filed by their suppliers, a move aimed at curbing tax evasion and safeguarding revenues. The Central Board of Indirect Taxes and Customs has issued a Standard Operating Procedure for suspension of registration of a person on observance of such discrepancies /anomalies which indicate violation of the GST Act.

Thousands of GST non-filers, or those who did not file returns, have received an auto-generated letter from the authorities, asking them to file their returns or face the prospect of the tax department assessing their liability and asking them to pay. Although the GST law provided for use of “best judgment” assessment, it’s a provision that is only being used now to coax those who have not filed their returns, and paid up GST, to clear dues to the government.

Immigration Canada invited 27,332 people to apply for permanent residency through Express Entry, a system designed to approve applications in six months or less. The candidates were part of the Canadian Experience Class category, which requires immigrants to have at least one year of recent work experience in the country.
The weekend invitation was more than five times larger than the typical draw under the program. Draws tend to happen every couple weeks and usually result in just 3,000 to 5,000 invitations. This time, to send out significantly more invitations, Immigration Canada slashed the number of points required to get an invite.

Case law on Admissibility of depreciation allowance on Bombay Stock Exchange membership card:
Techno Shares and Stocks Limited v. Commissioner of Income Tax [2010] [327 ITR 323]
1. The question of law was whether BSE membership card to trade in share was a “licence” or “any other business or commercial right of a similar nature” owned by the assessee and used for the business purpose in terms of section 32(1)(ii) of the Income-tax Act and depreciation can therefore be charged on the same. 
2. The Hon Supreme Court quoting extensively the provisions of the Act and the Bombay Stock Exchange Rules held that the right of membership conferred upon the member under the Bombay Stock Exchange Membership Card is a “business or commercial right” (mentioned in Sec 32(1)(ii)) which gives a non-defaulting continuing member a right to access the Exchange and to participate therein. 
3. In that sense it is a licence or akin to licence in terms of section 32(1)(ii) of the Income-tax Act which has an economic and money value. Accordingly, held that the depreciation is allowable on cost of Bombay Stock Exchange membership card under section 32(1)(ii) of Income-tax Act.
4. However, the Supreme Court struck a note of caution that its decision was strictly confined to the right of membership conferred upon the member under the BSE membership card and should not be understood to mean that every business or commercial right would constitute a “licence” or a “franchise” in terms of section 32(1)(ii) of the Income-tax Act.

Whether foreign AE can be a tested party in determining the transfer price? 
1. In the case of M/S Virtusa Consulting Services Pvt ltd (T.C.A.No.996 of 2018)  The Madras High Court recently clarified that in determining transfer pricing, to ascertain the net profit margin realised by an enterprise from international transactions, the tested party selected can also be a foreign associated enterprise of the income tax assessee, by applying the least complex theory.
2. The HC noted that in the case of Yamaha Motor India Limited vs. ACIT, the tax tribunal had observed that the words "Enterprise" and "Associated Enterprise" have been used interchangeably in the Income Tax Act.
3. From the definition of "Enterprise" given in Section 92F(iii) and "Associated Enterprise" in Section 92A of the Act, it is clear that the statute does not indicate that "Enterprise" should necessarily mean the assessee and that the "Associated Enterprise" should mean the other party, the tribunal had ruled in the Yamaha Motor case.
4. Further in Ranbaxy Laboratories Limited v. ACIT, the Court noted that the Delhi Bench of the Tribunal had culled out that,
"... the tested party normally should be the least complex party to the controlled transaction and that there is no bar for selection of tested party either local or foreign party and neither the Act nor the guidelines on transfer pricing provides so and the selection of tested party is to further the object of comparability analysis by making it less complex and requiring fewer adjustment.”

India plans to introduce its own digital currency, thus making crypto uncool. In fact, it would not be a cryptocurrency if a government issues it.
Since 2009, when Bitcoin was created, some of the brightest tech Bohemians have sold the world a lemon. The fundamental of bitcoin was that a new kind of global currency will end the monopoly of governments and central banks over money. This new currency will not exist in physical form, it will be created from nothing by a vast network of computers as they perform a vast number of computations to randomly create it. The currency will have no intrinsic value beyond the perception that it has value, and its own predetermined scarcity.

Section 206CCA: Higher Rate of TCS for non-filers of Income Tax Return
The Finance bill 2021, proposed to insert a new section 206CCA for deduction of TCS at higher rates for those who have not filed their Income Tax Return. Here are the details of the new section 206CCA of the Income Tax Act, 1961.

1. Section 206CCA of the Income Tax Act, 1961: 
Proposed section 206CCA of the Act would apply on any sum or income or the amount paid, or payable or credited, by a person (herein referred to as deductee) to a “specified  person”.
Here “specified person”, has been defined under subsection (3) as a person, who has not filed the returns of income for both of the 2 assessment years relevant to the 2 previous years which are immediately before the previous year in which tax is required to be deducted or collected, as the case may be“.

2. Applicability of Section 206CCA: 
Section 206CCA of the
Budget 2021, provide for the applicability of section 206CCA w.e.f. 1st July 2021.

3. Condition for deduction of TCS u/s 206CCA
Here are 3 important conditions, which needs to be satisfied before deduction of TCS at higher rates u/s 206CCA
1) Time limit for filing tax returns under sub-section (1) of section 139 of the Act has expired for both these assessment years.
2) Aggregate of tax collected at source in his case is Rs. 50,000 or more in each of these two previous years.
3) Specified person shall not include a non-resident who does not have a permanent establishment in India.

4. How would be the ITR filing will be checked of the specified person
For this purpose, the government would provide a new utility, wherein a deductor will get the details of specified person ITR filing by entering the PAN no. of that person.
However, as a prudent practice, the assessee should keep a copy of the supplier’s ITR for the preceding two financial years as a confirmation to accordingly collect TCS as per the applicable rates.

5. Rate of TCS under section 206CCA of the Income Tax Act: 
The provisions of sub-section (1) of section 206CCA provide for the rate to be applied. The rate of TCS under section 206CCA of the Income Tax Act will be higher of the following-
a) at twice the rate specified in the relevant TCS provision of the act, or
b) at the rate of 5%.

6. Some other Important points for section 206CCA: 
If the specified person does not submit the PAN (section 206CC) as well as not filed the return (section 206CCA), the TCS shall be collected at the higher rates amongst both the sections.

The non-resident person who does not have any permanent establishment is excluded from the scope of the specified person.

Amendment of Importer-Exporter Code (IEC) related provisions under Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020: 
1. Every year from April to June even if all details of IEC remain same all existing holders have to confirm IEC compulsory. IEC may be de-activated if not updated/ confirmed as per a new circular. 
2. An IEC so de-activated may be activated, on its successful updation. 
3. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP.

Indian companies and individuals are unlikely to be allowed to pull a Tesla and stash excess cash in cryptocurrencies that have been on an eye-popping surge if a new bill proposed by the government is cleared by parliament.
Expected to be introduced in this legislative session, a draft bill proposes a complete ban on all private cryptocurrencies - decentralised digital money that is prized for being untraceable and a buoyant valuation, sources have told NDTV.
The bill will also lay the groundwork for an official digital currency - which are different because they can be regulated by a country's central bank - and its ties to the Reserve Bank of India or RBI.
Exchanges, people, traders and other financial systems' participants will not be allowed to deal with cryptocurrencies and penalties have been proposed for any violation by individuals as well as corporate bodies.
The decision comes after an inter-ministerial committee including the RBI felt that private cryptocurrencies will pose a threat to the financial stability of the country.
Both the government and RBI have been warning about virtual currencies and have advised all banks and financial establishments not to deal with them.

Nearly 7 million Indians hold cryptocurrencies worth over $1 billion and there has been an over 700 per cent increase in the last year, according to official estimates.

Canada's main securities regulator has cleared the launch of the world's first Bitcoin exchange traded fund, an investment manager said on Friday, providing investors greater access to the cryptocurrency that has sparked an explosion in trading interest.
The Ontario Securities Commission has approved the launch of Purpose Bitcoin ETF, Toronto-based asset management company Purpose Investments Inc. said in a statement. The OSC confirmed the approval of the ETF in a separate statement to Reuters.

The best places abroad to buy your second home. 
London is usually the number 1 option for investors. It is a business-friendly location, and it is undoubtedly a place that will bring a return on your investment since the currency fluctuations are limited and provides a sense of safety, stability, and security
However, in the last few years, Cyprus, the island with over 300 sunny days, has become a choice for Indians too. Nearly 40% of the properties sold in Cyprus are bought by overseas investors. Cyprus is centred amongst three continents; Africa, Europe, and Asia. Furthermore, the tax benefits in Cyprus are extremely favourable supporting investments into the country. With a corporate tax rate as low as 12.5%, and for those who permanently reside on the beautiful island there is zero tax on global gains for 17 years.
The Caribbean islands of Grenada, Dominica and St. Kitts are other popular investment and holiday destinations for many, they have witness a rise in property prices over the years.

As per DGFT Notification 58 dated 12-02-2021, it's now mandatory to update IEC details in April to June quarter every year. Even in case of no changes, the same need to be updated every year else IEC will be de-Activated. 

Disallowance of interest expenditure:
Let us study the judgement of ITAT Bangalore in the case of Assetz Infrastructure Pvt. Ltd. (ITA No.563/Bang/2019):
1. Interest free loans were given to subsidiaries of Rs 10.26 crores, interest free advances was received from customers of Rs 16.96 crores and interest expenditure was claimed U/S 36(1)(iii)of Rs 1.54 crores. 
2. AO held that advancing of loan is not a business activity and hence a part of interest expenditure was disallowed. 
3. Assessee contended that interest free customer advances were used to provide int free loans and so interest exp should be allowed U/S 36(1)(iii). 
The ITAT Bangalore held as below:
1. If the own funds and “interest free funds” available with the assessee is more than the investment in tax free securities, then it should be presumed that the said investments have been made out of interest free funds available with the assessee.
2. So the disallowance by the AO was deleted. 

RBI tightens norms for investments from non FATF nations:
1. The Reserve Bank of India (RBI)on Friday tightened the rules governing investments in non-bank lenders originating from countries that are not compliant with global standards on prevention of money laundering.
2. FATF, or the Financial Action Task Force, is the inter-governmental watchdog for global money laundering and terrorist financing.
3. According to the new rules, fresh investors from non-compliant jurisdictions should hold less than the threshold of 20% of the voting power, including potential voting power in an NBFC.
4. FATF’s high risk list are Democratic People’s Republic of Korea and Iran. Among those classified under increased monitoring are Cambodia, Ghana, Jamaica, Mauritius, Pakistan, Panama, Zimbabwe and others.

Twitter may be the next major company to purchase Bitcoin, according to the tech firm's chief financial officer.
In an interview on CNBC’s Squawk Box today, Ned Segal, who has served as the CFO of Twitter since 2017, responded to questions about how Twitter would react to Tesla’s recent $1.5 billion Bitcoin (BTC) investment this week. Segal said the tech firm was watching other companies closely, and discussed potentially adding the crypto asset to its own books or using it for Twitter employees' salaries.
With a market capitalization of more than $51 billion, Twitter is a fraction of the value of a company like Tesla, whose market cap has risen to $780 billion this week. Following the news Tesla had purchased $1.5 billion of Bitcoin and was considering accepting it for payments, the price of Bitcoin reached a new all-time high of $48,200. If other multi-billion dollar firms announced similar purchases or adoption plans, it could help push the price even higher.
There might be a day people will get their salaries paid in Satoshis.
Satoshi is the smallest unit of 1 Bitcoin
1 Satoshi = 0.00044505 USD = 0.00000001( BTC)

Wealthy Indians are increasingly looking for a potential escape to foreign countries, with Covid-19 likely playing a role in their hunt for alternative abodes.    
According to leading global citizenship and residency advisory firm Henley & Partners, from January 2020 to date, there has been a 111 per cent increase in the number of inquiries from Indians about investor-related visas and citizenship programmes as compared to the same period last year. Investment-related visa and citizenship programmes allow applicants to live, work, and study in a particular country with some conditions.
For example, in New Zealand, different kinds of residence permits can be obtained through investments of NZD 3 million-NZD 10 million (approx. Rs 14.91 crore-Rs 49.71 crore) over a three-four-year period.  
In Malta, an island located in the Mediterranean Sea, one needs to invest in government bonds of €250,000 (Rs 2.16 crore) to be “retained for a minimum period of five years” and needs to purchase property worth €320,000 (Rs 2.77 crore) 

Goods and Service Tax Network has enabled the feature to opt in for composition available for Financial Year 2021-22 at the Common GST Portal.
The eligible taxpayers, who wish to avail the composition scheme may opt in for composition up to March 31, 2021.

CBIC has issued guidelines regarding the procedures to be followed during search operation. These guidelines must be adhered to while carrying search proceedings and must be followed in addition to earlier instructions (Instruction No. 01/2020-21 Dated 2nd February, 2021).

The Union government will soon offer companies the flexibility to choose a shorter four-day work week, albeit with longer shifts.
The provision will be part of the labour code, and once the new rules are implemented, employers will no longer be required to seek government permission to shift to a four- or a five-day working week if their employees approve the arrangement.
Companies can also benefit from lower office rental costs and more energized and productive staff.

New Functionality activated on GST Portal-GSTR -1E after 3 years of Change in law.
Brief background & Analysis:
1. CBIC vide NN-51/2017 dated 28-10-2017 amended CGST rules and issued CGST (Eleventh Amendment) Rules 2017, Wherein in Rule 96A two provisos were inserted.
2. The said insertion was made to facilitate the exporters to claim refund under GST in cases where GSTR-1 due date is extended and GSTR-3B is filled by the taxpayer.
3. This data would be transmitted to the customs portal for matching following which GST Refunds would be processed.
4. After 3 Years, the GSTN woke up to impalement this facility on the GST Portal when the due dates of GSTR-1 is no more extended.
5. But this implementation on the portal indicates that Rule 96A would be amended soon, and this facility would be provided to the taxpayers opting QRMP Scheme as IFF do not have the export column and this would hamper the taxpayers and delay their refunds.
6. Further once GSTR-1E is filled all these details will automatically reflects in GSTR-1 for respective tax period.

The Ministry of Home affair on Tuesday informed the Lok Sabha that between 2015 and 2019, over 6,76,074 Indians gave up Indian citizenship. The ministry made the remarks while ruling out proposal of allowing people hold dual citizenship.

As per data, 1,41,656 Indians gave up their citizenship in 2015 and opted for nationalities of other countries. In 2016, 1,44,942 Indian people changed their citizenship, 1,27,905 in 2017, 1,25,130 in 2018 and 1,36,441 in 2019, Union Minister of State for Home Nityanand Rai stated.

A total of 1,24,99,395 indian citizens are living abroad the MHA quoting information available with the Ministry of External Affairs (MEA) told the parliament. The Indian government does not allow provisions of holding 'dual citizenship'. The government, however, grants Overseas Citizen of India (OCI) card holders statutory rights under the Citizenship Act, 1955. Persons of Indian Origin (PIOs) of certain category including those who migrated from India and acquired citizenship of a foreign country other than Pakistan and Bangladesh, are eligible for grant of OCI as long as their home countries allow dual citizenship in some form or the other under their local laws.

During the fiscal 2021-22, MCA will launch data analytics driven MCA21 Version 3.0. MCA21 V3 Project is a technology-driven forward looking project, envisioned to strengthen enforcement, promote Ease of Doing Business, enhance user experience, facilitate seamless integration and data exchange among Regulators. The key components of MCA21 are:
1. e-Scrutiny : MCA is in process of setting up a Central Scrutiny Cell which will scrutinise certain Straight Through Process (STP) Forms filed by the corporates on the MCA21 registry and flag the companies for more in depth scrutiny.
2. e-adjudication : This module, has been conceptualised to manage the increased volume of adjudication proceedings by  RoC and Regional Directors (RD) and will facilitate end to end digitisation of the process of adjudication, for the ease of users.
3. e-Consultation : To automate and enhance the current process of public consultation on proposed amendments and draft rules etc., this module of MCA21 v3 will provide an online platform wherein, proposed amendments/draft legislations will be posted on MCA's website for external users/ comments and suggestions pertaining to the same in a structured digital format.
4. Compliance Management System :  CMS will assist MCA in identifying non-compliant companies/LLPs, issuing e-notices to the said defaulting companies/LLPs, generating alerts for internal users of MCA. 
5. MCA Lab :  It is being set up, which will consist of corporate law experts. The primary function will be to evaluate the effectiveness of Compliance Management System, e-consultation module, enforcement module, etc. and suggest enhancements to the same on an on-going basis.

Tesla announced in an SEC filing Monday that it has bought $1.5 billion worth of bitcoin.
The company also said it would start accepting bitcoin as a payment method for its products.
CEO Elon Musk has been credited for raising the prices of cryptocurrencies, including bitcoin, through his messages on Twitter.
Tesla’s move into bitcoin represents an investment of a significant percentage of its cash in the investment. The company had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.
The moves raise questions around CEO Elon Musk’s recent behavior on Twitter, where he has been credited for increasing the prices of cryptocurrencies like bitcoin and dogecoin by posting positive messages that have encouraged more people to buy the digital currencies.

Tds U/s 194Q Vs. Tcs U/s 206C(1H)
A person may be required to comply with section 206C(1H) as well as section 194Q as a seller and buyer respectively.

Applicability of tcs provisions : 
1. TCS U/s 206C(1H) is applicable only on Seller of Goods if the Turnover of seller is more than Rs. 10 Cr in previous financial year. 
2. TCS U/s 206C(1H) is applicable “Receipt of Consideration” as against TDS U/s 194Q which is applicable on purchase of goods or advance payment, whichever is earlier.
3. TCS U/s 206C(1H) is not applicable if the buyer is liable to do TDS under any other provision of this Act. In short, if the buyer is doing TDS U/s 194Q then the seller will not be required to do TCS U/s 206C(1H).

Redundancy of 206C(1H): 
After introduction of section 194Q, whether section 206C(1H) would be redundant : 
1. For applicability of TCS U/s 206C(1H), Turnover of the seller would be relevant whereas for TDS U/s 194Q, the turnover of the buyer would be relevant. 
2. Introduction of section 194Q doesn’t make section 206C(1H) redundant.

Both the sections are mutually exclusive: 
1. It may happen that the turnover of the buyer is less than Rs. 10 Cr and so the buyer may not be doing TDS U/s 194Q and as a result seller would be required to do TCS U/s 206C(1H).

Practical Difficulties in implementing the provisions : 
1. Now, sellers would be required to enquire & verify with every buyer paying more than Rs. 50 Lakh in a year as to whether such buyer would be making payment after TDS or not. 
2. TDS by the buyer would relieve the seller from TCS compliance part u/s 206C(1H).
3. If the seller has opted for TCS Compliance U/s 206C(1H) on a billing basis then it would be required to check & enquire with every buyer as to the applicability of section 194Q on them before the issue of invoice itself. 
4. Section 206C(1H) has already added an unnecessary compliance burden on the taxpayers. 
5. Proposal to add section 194Q in the Income Tax Act  – 1961 is going to further complicate the process and will be against the concept of “Ease of business”. 
6. Though the seller will get immunity from TCS compliance u/s 206C(1H) if the buyer do TDS, it will be a case specific and cannot be generalized. 
7. TDS & TCS on purchase/Sale is neither going to widen the tax base or increase the revenue as the data of buyers & sellers are very well available & can be extracted from the GST returns and the other information. 

Lot of queries received for the change In Law, the example will give clearer picture: 
Suppose, you already have Rs.25 lakhs in GPF as on 31.3.2021 --- then 7.1 percent annual interest on this amount of Rs.25 lakhs would not attract any income tax with effect from 1.4.2021.
Further, if you contribute Rs.20,000/- per month with effect from 1.4.2021, your GPF contribution during 2021-2022 comes to Rs.2.40 lakhs which is less than Rs.2.50 lakhs and therefore, you get 7.1 percent interest on the complete Rs.2.40 lakh during 2021-2022 as also 7.1 percent interest on the Rs.25.00 lakh in your credit as on 31.3.2021 without any income tax levied on it.
Now, if instead of Rs.20,000/-, you start contributing Rs.30,000/- every month with effect from 1.4.2021, that makes a total GPF contribution of Rs.3.60 lakhs during 2021-2022. In such a scenario, you would get 7.1 percent interest on the old amount of Rs.25.00 lakhs plus 7.1 percent interest on Rs.2.50 lakh out of Rs.3.60 lakh during 2021-2022 without any income tax on it. But for the remaining Rs.1.10 lakhs, the interest of 7.1 percent would attract income tax @ 20 percent. This means, if  you earn Rs.7,810/- (7.1 percent) as interest on Rs.1,10,000/-, then 20 percent income tax would be deducted on Rs.7,810/- (i.e. 781+781=Rs.1,562/-). This means, you would be left with Rs.7,810 minus Rs.1562/-= Rs.6,248/- as interest on Rs.1,10,000/- i.e. a return of 5.68% instead of 7.1%.

Budget 2021 has proposed to make interest earned on employee contribution in excess of Rs 2.5 lakh in a financial year to Employees’ Provident Fund or EPF taxable. This has been done to prevent High Networth Individuals (HNIs) depositing large sums in EPF to earn an assured and tax exempt return, said a source in the department of revenue, ministry of finance.
The sources said that there are more than 4.5 crore contributors’ accounts in EPF. Out of these more than 1.23 lakh accounts are of HNIs who contribute monthly very huge sums to their EPF accounts. Their total contribution is to the tune of Rs 62500 crore for FY 2018-19 and the government is owing or paying an assured interest at the rate of 8% (the interest paid on EPF contributions) with tax exemptions to these persons, the sources said. This is helping the HNIs escape paying tax on interest which would have been taxable if the amount had been invested in a normal bank fixed deposit.
The sources added that one of the highest contributors has more than Rs. 103 crore in his account followed by two second highest ones having more than Rs. 86 crore each. Sources said that the top 20 HNIs have about Rs. 825 crore in their accounts while top 100 HNI contributors have more than Rs. 2000 crore.
According to sources these HNI contributors who are 0.27 % of the total number of EPF account holders have on an average a corpus of Rs. 5.92 crore per person and were thereby earning about Rs. 50.3 lakh per annum each as tax free assured interest. The government has tried to remove this disparity of paying huge tax free interest to HNIs at the cost of honest average salaried class contributor and taxpayers.
The decision to remove the tax exemption on interest earned on provident fund contributions of Rs 2.5 lakh and above in the budget, said the sources, thus was based on the principle of equity among the contributors. Sources reiterated that since any tax exemption is provided through taxpayers’ money, it was unfair to allow a small group of HNIs to misuse a welfare facility. The average normal EPF or GPF contributor would not be affected by this tax proposal, sources added.
In an interview with ET, revenue secretary Ajay Bhushan Pandey also said that the decision to remove the tax exemption on provident fund contributions of Rs 2.5 lakh and above in the budget was based on the principle of equity. “Any tax exemption is taxpayers’ money assured return being given is again coming out from the taxpayers’ money,” he told ET in an interview. “The question is those who are depositing higher, should they be given the tax concession at the cost of another taxpayer?”

RBI announced that it will allow retail investors online access to the government securities markets  both primary and secondary. That means, from now on retail investors will be able allowed to open gilt accounts with the RBI. This move will be called Retail Direct. This gives retail investors a much-needed opportunity to directly buy and sell government securities. For the record, G-Secs are one of the safest fixed income instruments available in India.

MCA said that it will launch the data analytics-driven MCA21 Version 3.0 in the current financial year. The new version will have modules for e-Adjudication, e-Consultation and compliance management.

Circle Rates of Residential/Commercial/Industrial Properties in Delhi reduced by 20% across all categories for next 6 months. This would be a big relief for people willing to buy property and a big boost up for Real estate sector
In major financial relief to residents of Delhi, the Arvind Kejriwal government has decided to reduce the current circle rates related to residential, commercial and industrial properties by a flat 20% across all categories of colonies and areas in the national capital.
This will be applicable till 30 September this year. The decision was taken in the Delhi Council of Ministers meet today, which was chaired by Chief Minister Arvind Kejriwal.

Gst Payment of Tax by Fixed Sum Method under QRMP Scheme
• In fixed sum method, the 35% Challan can be generated by selecting the Reason For Challan>Monthly Payment for Quarterly Return> 35% Challan which is in turn calculated as per following situation:
a. 35% of amount paid as tax from Electronic Cash Ledger in their preceding quarter GSTR 3B return, if it was furnished on quarterly basis; or
100% of the amount paid as tax from Electronic Cash Ledger in their GSTR-3B return for the last month of the immediately preceding quarter, if it was furnished on monthly basis.
• It is to note that, for the months of Jan. and Feb., 2021, in Q4 of 2020-21, the auto-populated challan generated under 35% Challan would contain 100% of the tax liability discharged from Electronic Cash Ledger for the month of December, 2020 (and not 35%). [Reason: Till December 2020, all taxpayers were filing GSTR-3B return on a monthly basis.]
•It is noteworthy, that the taxpayers are not required to deposit any amount for the first 02 months of a quarter, if:
a. Balance in Electronic Cash Ledger/ Electronic Credit Ledger is sufficient for tax due for the first/ second month of the quarter; or
b. There is NIL tax liability.

Budget 2021 Proposals 
Amendments in Equalisation levy:
Last year, the government had imposed a 2% tax on the sale of goods and services that take place through non-resident digital operators having an annual turnover or sales of more than Rs 2 crore.
3 further clarifications have been issued in this budget on Equalisation levy:
1. Services which are subject to tax as royalty or fees for technical services under the Income Tax Act will be out of the ambit. 
2. a. Non resident E Com operator would be subject to the levy for the supply of goods or services for any of these activities-
Acceptance of the offer for sale, placing the purchase order, acceptance of the purchase order, payment of consideration and supply of goods or provision of services, partly or wholly.
b. Thus if an overseas hotel is merely taking online payments, it might get hit by the provisions. 
c. Payment gateways may also be coming under these provisions. 
3. Entire value of goods or services would be taxed even where the aggregator or the e commerce marketplace is merely facilitating the transaction for another vendor. Thus, Alibaba will have to pay a levy on the entire sale amount and not just the commission. 

Higher TDS for payments made to non filers (applicable from 1st July, 2021):
1. On Payments made to specified persons, TDS shall be deducted at twice the normal rate of TDS or 5%, whichever is higher. 
2. In case the specified person does not have PAN, Sec 206AA shall be applicable ie TDS @ 20%. 
3. Who is the specified person?
The one who has not filed ITR in the immediately previous two years. 
There must be an aggregate of TDS and TCS liability of atleast Rs 50,000 in each of the two years. 
4. For whom not applicable?
The specified person shall not be a non resident who does not have a permanent establishment in India. So not applicable in that case. 
5. Does the sec apply for all TDS deductions?
It does not apply to TDS on salary, lottery, horse racing and cash withdrawals. 
6. Difficulty in implementing the provision:
The deductor is supposed to now know whether the vendor has filed returns for the last 2 years and whether his TDS liability was Rs 50,000 in each of the 2 years. 
In the absence of data in public domain, how can he be expected to rely on the information provided by the vendor?

Tax Deduction at Source on purchase of goods
Introduction of new Section 194Q w.e.f. July 01, 2021: 
1. Purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any FY. 
2. The transaction is not subject to TDS or TCS. 
3. Payment is made to a resident. 
4. The total sales, gross receipts or turnover from the business carried on by the buyer exceeds ten crore rupees during the financial year immediately preceding. 
Mode of calculation:
1. 0.1 per cent of sum exceeding fifty lakh rupees

February 2021 Due dates Compliance Calendar 

Budget 2021: Direct Tax Proposals Highlights:-
1. Relief given to the senior citizen, having only pension and interest income. The exemption is given to them from filing ITR. Paying banks will do still deduct TDS if applicable.
2. Income Tax Reassessment Limit has been Decreased from 6 years to 3 years. But in the case of Serious tax evasion, where evasion evidence is Rs. 50 lakh or more then reopening can be done within 10 years with approval.
3. Dispute resolution committee will be faceless. Anyone with a total income less than 50 lacs and disputed income less than 10 Lacs can approach this committee.
4. Faceless ITAT center will be set up. In this case, personal hearings will be conducted through VC.
5. Tax Audits limit enhanced to Rs. 10 Cr in case of digital transactions (up to 95% Digital Transactions). Earlier this limit was Rs. 5 cr.
6. Advance tax liability on dividends will arise only after the declaration of dividends.
7. Affordable housing Rs.1.50 lac deduction will now be even available for a loan taken till 31.3.2022.
8. 80IBA deduction extended to 31.3.2022.
9. Pre-filled income tax return (ITR) scope enhanced. ITR will have pre-filled data regarding Dividends, post office interest income, salary, etc.
10. Trusts: educational and hospitals: limit increased from Rs.1. 00 Cr to Rs.5. 00 crores (10(23C))
11. Late deposit of employee contribution of PF will now be not allowed as deduction.
12. LLP decriminalization will be made available soon
13. Director Residence criteria reduced to 120 days from earlier 182 days
14. OPC proposed to be incorporated by foreigners as well. Also, no restrictions on Paid up capital and turnover.

• MCA has released the Companies (Specification of Definition details) Amendment Rules 2021, to further amend the Companies (Specification of Definitions Details) Rules, 2014. They shall come into force on the 1st day April, 2021. In the Companies (Specification of Definitions Details) Rules, 2014, in the rule 2, in sub-rule (1), after clause (s), the following clause shall be inserted, namely:
“(t) For the purposes of sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Act, paid up capital and turnover of the small company shall not exceed rupees two crores and rupees twenty crores respectively.


Last year’s budget had capped the tax exemption on employers’ contribution to Provident Fund, NPS and superannuation fund to Rs 7.5 lakh. 
This isn't the first time that the government has proposed to tax PF money. The 2016 Budget had proposed that the interest accrued on 60% of the EPF be taxed. The proposal was rolled back after a massive outcry against the new levy.
However, the proposal may not face as big a backlash this time because it affects only the creamy layer of salaried employees. The Rs 2.5 lakh annual threshold means that a person contributing up to Rs 20,833 a month to PF (basic salary of up to Rs 1.73 lakh a month) will escape the tax.
At the same time, the new Wage Code which comes into effect on 1 April has laid down that the basic salary must be at least 50% of the total income of the individual. This means the salary structure will have to be rejigged with a higher basic salary, which will automatically increase the contribution to the PF.
The budget plans to close down another tax-free haven for HNIs. Existing rules say that under Section 10(10d), gains from an insurance policy are tax free if the cover is 10 times the annual premium. The budget has proposed to remove the tax exemption to Ulips with a premium of more than Rs 2.5 lakh a year. 
Such Ulips will now be treated like equity mutual funds, with gains of over Rs 1 lakh taxed at 10%. It is important to note that this Rs 2.5 lakh ceiling is the aggregate premium for all policies held by a policyholder, which means one cannot get past the tax by investing in multiple policies of less than Rs 2.5 lakh. This will not apply to existing Ulips, but only to new policies bought after the budget was announced.

Budget 2021- Customs & Excise Notifications, 
Summary of Indirect Tax notifications dated 01.02.2021.....
Read More 

2021 – Year of milestones for Indian history

1. 75th year of India’s independence
2. 60 years of Goa’s accession to India
3. 50 years of the 1971 India-Pakistan War
4. Year of the 8th Census of Independent India
5. India’s turn at the BRICS Presidency
6. Year for Chandrayaan-3 Mission
7. Haridwar MahaKumbh


Budget 2021 Highlights... 

Budget 2021 Memorandum..

Budget 2021 Direct Tax finer points...

UAE opens citizenship:
The United Arab Emirates plans to offer citizenship to a select group of foreigners, the first Gulf Arab nation to formalize a process aimed at giving expatriates a bigger stake in the economy. 

Either of these conditions must be met to secure the citizenship:
Investors must own a property in the UAE.
They must obtain one or more patents that are approved by the UAE Ministry of Economy or any other reputable international body, in addition to a recommendation letter from the Economy Ministry
Doctors and specialists must be specialized in a unique scientific discipline or any other scientific principles that are highly required in the UAE.
Scientists are required to be an active researcher in a university or research center or in the private sector, with a practical experience of not less than 10 years in the same field.
Individuals with creative talents such as intellectuals and artists should be pioneers in the culture and art fields and winners of one or more international award. A recommendation letter from related government entities is mandatory as well.

Emirati citizenship will be done only through nominations from Rulers' and Crown Princes' Courts, Executive Councils, and the Cabinet based on federal entities nominations. The citizenship can be withdrawn upon breach of the conditions. 

The government is scheduled to take up 20 new bills during the Budget Session that got underway on January 29 with the tabling of the Economic Survey, a Lok Sabha bulletin has said.
Some of the bills that will be tabled include the Pension Fund Regulatory and Development Authority (Amendment) Bill, National Bank for Financing Infrastructure and Development (NaBFID) Bill, Mines and Minerals (Development and Regulation) Amendment Bill, Electricity (Amendment) Bill, Cryptocurrency and Regulation of Official Digital Currency Bill.
The Budget Session will be held in two parts—from January 29 to February 15 and then March 8 to April 8.

RBI asked banks to step up disclosures on customer complaints and cost of redressal, cautioning lenders that fail to improve their redress mechanism quickly will be charged.At the end of March 2020, the total number of complaints across various offices of RBI stood at 3,08,630. This is a steep rise from 1,95,901 complaints outstanding at the ombudsman offices, as per data from the Trends and Progress Report of the RBI.

Foreign direct investment (FDI) into India increased by 37 per cent to USD 43.85 billion during April-November 2020, according to data by the commerce and industry ministry. Total FDI inflows (including reinvested earnings) during the eight-month period of the current fiscal grew by 22 per cent to USD 58.37 billion. 

India’s indigenous payment network RuPay has cornered a significant market share in the domestic card market since its launch. As of November 30, 2020, RuPay’s market share has increased to more than 60 per cent of total cards issued, from merely 17-per cent market share in 2017, revealed the data released by the Reserve Bank of India (RBI) in its booklet on Payment Systems in India (2010-20).

W.e.f. April-01-2021, All Trusts, Societies and Section-8 Non-Profit Companies who intends to undertake any CSR activity shall be required to register itself with the Ministry of Corporate Affairs (MCA) and obtain a Unique CSR Registration Number. MCA Notification dt 22.01.2021 on Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021.

The Budget session of Parliament will consider a bill that prohibits all private cryptocurrencies and provides for an official digital currency to be issued by the Reserve Bank of India. The schedule for the session shows that The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is slated for introduction, consideration and passing.
The Indian central bank had in 2018 effectively banned crypto transactions after a string of frauds in the months following Prime Minister Narendra Modi’s sudden decision to ban 80% of the nation’s currency. The Reserve Bank of India had asked all regulated entities, such as banks, to stop any dealings related to private cryptocurrencies as part of that order. This brought cryptocurrency trading in India to a halt. Cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020. The Supreme Court set aside the Reserve Bank of India’s 2018 circular. The bench, headed by Justice Rohinton F Nariman, quashed the central bank’s circular on grounds of disproportionality.

On account of Budget 2021-2022, due to be presented on February 01, 2021, filing of Bills of Entry (BE) would not be available from 20:00 hours of February 01, 2021 till completion of updation of all changes in the Indian Customs EDI System (ICES) 1.5.

Updates in Gst e-Invoice Portal:
•Entry of ship to details for export invoices during E-Way bill generation is enabled.
• Sub-Users can be granted permissions to cancel and print e-Invoices and generate e-Way bill.
• Bulk print of e- Invoices is available in pdf format under MIS reports. Each pdf can contain upto 100 Invoices.
• Auto calculation of distance based on the pin codes is available during e- way bill generation.

Cera audit not permitted in GST- not applicable to private entity like this -
- Bombay Hc
Emphasis on Para 20.1 and 23
In the case of Kiran Gems Pvt Ltd pronounced on 29th January 2021

Writ Petition for rectification of gstr1 returns for 2017-18 admitted in HC of P&H on 27th January 2021 vide CWP-1742-2021. In the case of Aerial Telecom Solutions Pvt Ltd Vs Commissioner, Cgst & Ors Notice of Motion for 23.02.2021

Highlights of the economic survey 2020-21:
1. The survey expects the Indian Economy to grow by 11 per cent during 2021-22 which is close to the growth forecast of 11.5 per cent made by the IMF.
2. The gross tax revenue earned by the government during the period April to November 2020 fell by 12.6% to ?10.26 lakh crore which can be attributed to the contraction of the economy.
3. Disinvestment which was targeted at ?2.1 lakh crore has only been ?15,220 crore (7.2%).
4. The fiscal deficit has also gone up and as of January 8, the union government borrowed a total of ?10.72 lakh crore, 65% more than same period in the last year.
5. In the 2nd half of the fiscal year, government consumption is expected to grow by 17%, while private consumption is expected to contract by 0.6%.
6. In this year, agriculture sector is expected to grow by 3.4%.
7. GST collections have also increased in the 2nd half of the year.
8. Bank credit growth as of January 1 stood at 6.7%. Since September 2019, bank credit growth has been in the single digits.
Credit growth to the services sector accelerated to 9.5% in October 2020 from 6.5% in October 2019. Adequate capitalisation of banks is called for.
9. Inflation between April and December 2020 stood at 6.6% on account of high food inflation of 9.1%.

AOC 4 for AGM 2020 can be filed till 15 FEB 2021 without additional Fee vide MCA circular dated 28th January 2021

Bombay HC stays demand on issuance of SCNs by Dept in Writ challenging raising service tax demand based on income tax returns (ITR) data of assessee;
Noting that the assessee, a Chartered Accountant by profession and partner in a firm, was served with an SCN dated December 31, 2020..
Based on ITR filed by assessee, wherein Dept formed an opinion that remuneration received by assessee from the firm is subject to service tax;
Relied CESTAT judgment in Alpa Management Consultants P. Ltd., that ST cannot be recovered based on ITR

Centralised system of land records:
Will this budget finally see an introduction to a centralised system of land records??
1. A centralized land records system and reforms in land laws are the need of the hour – to ward off internal constraints, local agitations, and speculative increase in land prices.
2. The GIS land bank system launched by the government recently is a potent step towards actualizing this clamour for change by addressing issues like transparency and credibility directly.
3. The land bank system will also push the approach of “One District One Product”, in line with the AtmaNirbhar Bharat vision, boost employment opportunities and attract investments from abroad by showcasing the improving ease-of-doing-business.
4. Currently a pilot project, the system has been launched for six states that will map more than 3,300 industrial parks across 31 states and UTs covering a whopping 4,75,000 hectares of land.

Whether faceless assessments are violative of Article 14?
1. 2 basic constituents of natural justice for a democratic society are audit alteram partem (right to be heard) and nemo iudex in causa sua (right against bias).
2. Thus before any adjudicating authority passes any order, the concerned party should be given a fair opportunity to be heard. 3. Hon. SC in Manohar Anchule vs Maharashtra State has held
that adjudication process must be in consonance with Audi alteram partem. 4. Article 14 of the Constitution guarantees to all persons equality before the law.
5. CBDT has notified faceless assessments, appeals and penalty proceedings. In the faceless proceedings, there can be interactions only through the electronic means.
6. So all the notices are sent electronically and replies and submissions have to be uploaded through the e proceedings utility.
7. The assessee can only request for a hearing through the video conferencing, in case, he is not satisfied with the draft assessment order. Chief Commissioner has to approve of such a request. The circumstances in which such a hearing could be made is not yet notified.
8. Thus immediately, a question arises, whether faceless assessments are violative of Article 14 of the constitution??
9. Interestingly, Madras HC in Salem Sree Ramvilas Chit Company has held that faceless assessments may result into erronous assessments.
10. This burning and litigative issue of lack of suitable opportunity of being heard in the new faceless regime resulting in violation of Principle of Natural Justice & Article 14 of the Constitution of India, has become more critical in view of the admission of the writ petition of the taxpayer by the Hon’ble Delhi High Court in the case of Lakshya Buddhiraja on 16.10.2020, on this very issue.

Delhi HC favourable judgement on capital gain from penny stocks....
Emphasis on Page 9 Para 12.....
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SC has dismissed the SLP filed by the Department challenging the Delhi High Court’s direction to open the GSTN portal, enabling the taxpayer to revise Form GST TRAN-01 or accept manual submission.
Taxpayer’s contentions:
The taxpayer stated that it was unable to file Form GST TRAN-01 before the due date because of probable low bandwidth and massive traffic on the GST Portal.
Various courts have granted relief to several taxpayers facing similar difficulties.
Delhi High Court’s decision: HC directed the Department to either open the online portal to enable the taxpayer to file Form GST TRAN-1 electronically, or accept the same manually and process the claim in accordance with law.
Aggrieved by the order, the Department filed an SLP before the Supreme Court against the above decision.

The Ministry of Road Transport and Highways (MoRTH), in its vehicle scrappage policy approved on January 25, confirmed the scrapping of government vehicles older than 15 years. The policy will come into effect from April 1, 2022. Under the new norms, the transport vehicles which are older than eight years could be taxed at the rate of 10-25 percent of road tax. These taxes will be imposed at the time of renewal of fitness certificate.
Among other things, the MoRTH stated that a higher green tax of 50 percent will be imposed on vehicles being registered in highly polluted cities. The ministry also mentioned that depending on fuel and type of vehicle, a differential tax would be applicable.

Finance Minister launches "Union Budget Mobile App” to provide easy and quick access to Union Budget information to all stakeholders. The mobile App facilitates complete access to 14 Union Budget documents, including the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc. as prescribed by the Constitution.

Unless law specifically restricts recipient from claiming Gst ITC when consideration is paid through book adjustment, credit of itc cannot be denied and thus, Gst act and Rules do not restrict such itc claim. Settlement of debt created on inward supplies from Franchisee through book adjustment- Senco Gold Ltd [2019] 105 taxman.com 143/74 GST 191 AAR West Bengal

A number of good news have come in for central government employees, state government employees and some members of the forces in the recent past and it is expected that many more good news would come for employees in January. According to reports, the central government employees would get four percent increase in 7th Pay Commission linked dearness allowance (DA) which is expected in January 2021 itself.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief was fixed at Rs 12,510.04 crore per annum and Rs 14,595.04 crore in Financial Year 2020-21. The Centre's decision will benefit about 48.34 lakh Central Government employees and 65.26 lakh pensioners.

The Income Tax (I-T) Department has seized gold weighing 4.5 kg and detected unaccounted income to the tune of ?120 crore from the raids that it had conducted at the residence and offices belonging to evangelist Paul Dhinakaran, who heads the Jesus Calls ministry.
“The gold was found at Paul Dhinakaran’s residence,” a source from the Income Tax department told The Hindu. The tax sleuths are also looking at his companies and trusts that are situated across 12 countries including Israel, Singapore, UK and USA. “They have over 200 bank accounts,” the IT source pointed out. On January 20, the taxmen searched offices and other properties belonging to Paul Dhinakaran. In Coimbatore, an educational institute, Karunya Institute of Technology and Sciences, at which Paul Dhinakaran is the Chancellor also came under the scanner. The Jesus Calls ministry collects donations under various schemes and plans that it promotes on its website and through other social media forums.

In what comes as a recent development, the Reserve Bank of India (RBI) is planning to withdraw the old currency notes of Rs 100, 10 and Rs 5. The notes will reportedly go out of circulation by the end of March or April as the top bank is planning to withdraw them permanently. However, there is no official confirmation from the RBI as yet on the matter. As reported by several media publications, Assistant General Manager (AGM) of the Reserve Bank of India (RBI) B Mahesh while speaking at the District Level Security Committee (DLSC) and District Level Currency Management Committee (DLMC) meeting, stated that the old currency notes of Rs 100, Rs 10 and Rs 5 will eventually go out of circulation as RBI plans to withdraw them by March-April.
It is to be noted that the new notes of Rs 100, 10 and 5 have already come into circulation in exchange for the old notes.

Dismissal Of Workman By Employer Cannot Be Interfered With Merely Because Disciplinary Enquiry Was Not Conducted: Supreme Court The Supreme Court observed that dismissal of a workman by his/her employer cannot be interfered with merely on the ground that it did not conduct a disciplinary enquiry, if the latter could justify the action before the Labour Court. Case of Assistant Teacher in Jai Bharat Junior High School, Haridwar

The Changing Indian Scenario-
A. Infrastructural Development:
1. Over the past ten years, the length of roads in India has increased from 3.3 million km to 5.9 million km (CAGR of 6%).
2. The number of mobile phone subscribers has increased over the same period from 392 million to 1161 million (CAGR of 12%).
3. The number of broadband users has increased from 6 million to 563 million (CAGR of 57%).
4. A decade ago, around 44 million Indians were taking flights each year. Now 3x as many Indians are flying each year (CAGR of 13%).
5. 15 years ago, only 1 in 3 Indian families had a bank account; now nearly all Indian families have a bank account.

B. Regulatory burden is higher for smaller companies:
Economists have long believed that onerous regulatory regimes hurt smaller companies more than larger ones. As highlighted in this article a newly incorporated Indian company has to obtain registrations under at least seven regulators and file a minimum of 18 to a maximum of 69 returns a year. Clearly, smaller players, with limited resources, must spend relatively more resources than the larger ones.
C. Smaller Indian companies have adopted the system of accepting digital payments more than the larger companies. However, they just do not have the resources for advanced technologies such as artificial intelligence and the Internet of Things. This is where the larger companies score over the smaller companies.

The direct tax department has started scrutinising invoices of companies to check for tax evasion even as the indirect tax department continues its aggressive drive against tax dodgers.
The income tax department has started scrutinising financial statements of companies to check if there are any fraudulent transactions or false entry that could result in low payment of taxes.
The tax department is questioning certain transactions where it suspects either the sale has not happened or in cases where it’s difficult to verify details of companies or clients, said people in the know.
Despite Covid pandemic and the impact it has had on corporate India the government has not reduced revenue targets for tax officers. A recent circular by the Central Board of Direct Taxes (CBDT) issued a few days back also asked tax officials to look at the newly inserted section that deals with fake invoices and entries.
BlackRock has authorized two of its funds to invest in bitcoin futures, according to filings released Wednesday with the Securities and Exchange Commission.
The move allows exposure to cryptocurrencies for clients of the world's largest asset manager for the first time.
The $8.7 trillion asset manager said it could use bitcoin derivatives, among other assets, under the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund.

The circulation of currency notes in the country has increased significantly. During the first nine months of the current financial year, the value of total currency notes in circulation increased by 13 percent. The data is based on figures released by the Reserve Bank. This situation was created because individuals want to hold money as a precautionary measure in the midst of uncertainty caused by the COVID-19 epidemic.
According to the latest data released by the Reserve Bank of India, the value of currency notes in circulation increased by Rs 2,23,003 crore or 13.2 percent to Rs 27,70,315 crore as on January 1, 2021 from Rs 24,47,312 crore as on March 31, 2020. During the April-December period of the 2020 financial year, the growth was 6 percent.
This is due to the high level of currency in circulation in the current financial year as people are raising more money to meet the needs of lockdown time and subsequent days. The Reserve Bank of India (RBI) said in its 2019-20 annual report released in August 2020 that the demand for the currency had begun to rise in the wake of high uncertainty caused by the COVID-19 epidemic.

Yes bank will provide 'curated offerings to address both business and individual needs of MSMEs' YES BizConnect – a collaborative solutions to build strong market linkages involving over 700 industry associations will also be offered.
To strengthen the Micro, Small and Medium Enterprises (MSMEs), YES BANK has recently launched YES MSME — an initiative that will facilitate "speedy and easy access to funds" to MSME sector. The bank will provide "curated offerings to address both business and individual needs of MSMEs, nurture new age entrepreneurs and maximise their potential," the lender said in a statement.
"The YES MSME proposition focuses on supporting MSMEs in expanding their business, sustaining momentum and accelerating growth through solutions across lending, deposits, insurance, customized and segmented digital solutions for retail, manufacturing, wholesale, trade and service providers. This also includes special current account offerings for the self-employed segment," the lender said.
The start-ups can avail up to ?5 crore collateral-free funding under YES MSME initiative. The bank also aimed to reduce the turnaround time for processing MSME loans. The lender will also offer other features include pre-approved commercial credit cards, advisory and wealth management solutions along with dedicated relationship managers.
Gst tracking application to be effective.....
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Penalty in case of fake bills:
1. Finance Act 2020 introduced a penalty provision to curb malpractices of issuing fake invoice. It introduced Section 271AAD w.e.f 1st April, 2020.
2. Quantum of Penalty; a sum equal to aggregate of amount of false entries or omitted entries.
3. This section start with “without prejudice to any other provision…”, hence penalty under this section shall be in addition to any other penalty under the Income-tax Act.
4. Power to levy penalty is with assessing officer.
5. The assessee must be required to maintain books of accounts. In case books of accounts are not required to be maintained by the assessee, this penalty would not be applicable.
6. Sec 270A provides a penalty of 200% of tax evaded in the case of misreporting of income.
7. So if a company accepts fake invoice of Rs 50 Lakhs without actual supply of goods or services and shows the same as his purchases or expenses and claims income tax benefit on the same, the amount of penalty shall be U/S 271 AAD of Rs 50 Lakhs PLUS 200% of tax evaded U/S 270A of Rs 30 Lakhs (assuming tax of 30%) ie Rs 80 Lakhs (more than the value of the fake invoice)

When can we opt-in for QRMP Scheme?
Normally we can opt-in to the scheme in every quarter as per the following dates:
*Quarter* Between
Apr-Jun:- 1st Feb-30th Apr
Jul-Sept:- 1st May-31st Jul
Oct-Dec:- 1st Aug-31st Oct
Jan-Mar:- 1st Nov-31st Jan

•For Jan-March 2021 Quarter you can opt- in to the scheme up to 31st January 2021. Remember once opted-in, the same will continue for all quarters, unless you opt- out.

• For an uninterrupted and continuous supply of essential goods and services, The Central Board of Indirect Taxes and Customs extends the facility of deferred duty payment to the public undertakings.

New SC ruling on IBC:
1. The moot question for potential buyers of bankrupt companies has been why should a new owner bear the brunt of cases pertaining to old promoters?
2. On January 19, the Honourable Supreme Court has finally answered this question by upholding Section 32A of the Insolvency and Bankruptcy Code (IBC), granting statutory immunity to successful resolution applicant from prosecution.
3. Essentially, the court’s ruling says that new owners will not face legal troubles or probes linked to the old cases faced by previous promoters.
4. This ruling could be a relief for companies like Bhushan Steel where promoters are facing legal issues and probe.

• MCA announces a new scheme for condonation of delay for companies restored on the Registrar of Companies between the 01.12.20 - 31.12.20.
• The Scheme provides to condone delay in filing forms with the Registrar, and spares payment of additional fees. • This Scheme will be in operation from 01.02.21 and will be available for filing of any overdue e-forms by such companies till 31.03.21.
• The scheme is applicable for filing of all e-forms except for the following forms:
1. E-form SH-7 (where any increase in authorised share capital is involved)
2. CHG-1, CHG-4, CHG-8 and CHG-9 (Charge Related Documents).
Faceless Penalty Scheme:
1. Finance Act 2020 has inserted an enabling provision in the form of a new sub-section (2A) in section 274 of the Act so as to provide that the Central Government may notify a e-scheme for the purposes of imposing penalty.
2. Notf no 117(E) dated 12th Jan 2021 has been issued for the purposes of giving effect to the Faceless Penalty Scheme, 2021.
3. Faceless penalty means the penalty proceedings conducted electronically in ‘e-proceeding’ facility through assessee’s registered account in the designated portal.
4. The CBDT would set up the below ‘centres’ and ‘units’ and specify their respective jurisdiction:
* A ‘National e-Penalty Centre’ to facilitate and centrally control the e-penalty proceedings. * ‘Regional e-Penalty Centres’ under the jurisdiction of the regional Principal Chief Commissioner. * ‘Penalty units’ for identifying points or issues, material for the determination of any liability, analysing information, and such other functions.
* ‘Review units’ for reviewing the draft assessment order to check whether the facts, relevant evidence and law and judicial decisions have been considered in the draft order.
5. All the correspondences between all these centres/units and also with the assessee shall be by electronic mode only. 6. The Chief Commissioner or the Director General, in charge of the Regional Faceless Penalty Centre (RFPC), under which the concerned penalty unit is set up, may approve the request for personal hearing (through video conference). However the circumstances under which personal hearing would be approved is not yet notified by CBDT.

Note: A writ petition has been filed in the Delhi High Court, regarding a lack of suitable opportunity of being heard in the new faceless regime and thus resulting into a violation of Article 14 of the constitution. (Lakshya Buddhiraja)

CBIC issued clarification regarding requirement of Filing of bill of Coastal Goods:
• Representations have been received that at various ports like Cochin, VoCPT (Tuticorin), Paradip, Haldia and Kolkata, Bill of Coastal Goods (BCG) is still required to be filed for pure coastal vessels operating from EXIM berths whereas, in terms of Notification 57/2016-Cus (N.T.), dated 27.04.2016, only a Manifest is required to be submitted for pure coastal vessels operating from exim berths.
• CBIC reiterated that there is no requirement of filing a Bill of coastal Goods as was clarified as per para 4(a) of the CBIC Circular no. 14/2016-Cus, dated 27.04.2016 consequent to issue of CBIC Notification no. 56/2016(NT) dated 27.04.2016, if the coastal vessels are carrying exclusively coastal goods whether berthing at coastal berth or EXIM berth.
Ministry of Finance has issued a Press Release dated January 18, 2021 regarding One held by CGST Delhi East officials for availing fake input tax credit of Rs 82.23 crore

•MCA announced Number of Companies Incorporated in December 2020 goes up by 20%. As against 93758 companies incorporated during April- December 2019, this year for the same period, 113038 companies have been incorporated.
CBDT clarifies the amount of remuneration prescribed under section 9A(3)(m) of the Income-tax Act, 1961
• Section 9A of the Income-tax Act, 1961 w.e.f. 01.04.2019 provides for payment of remuneration by an eligible investment fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf to be not less than the amount calculated in such manner as may be prescribed.
• In this regard, representations have been received expressing inability to comply with the provisions of sub-rule 12 of rule 10V of the Rules regarding the amount of remuneration to be paid by the fund to a fund manager for the financial year 19-20 as the said Notification No 29/2020 was notified after the financial year got over and the financial year 20-21 had already commenced.
• In order to avoid genuine hardship in such cases, the Board, in exercise of powers conferred under section 119 of the Act, has decided to provide that for the financial years 19-20 and 20-21 in cases where the remuneration paid to the fund manager is lower than the amount of remuneration prescribed under sub-rule (12) of rule 10V of the Rules, but is at arm's length, it shall be sufficient compliance to clause (m) of sub-section (3) of section 9A of the Act.

•MCA has announced that the CFSS 2020 Form shall be made available for filing as eForm w.e.f 16.01.21. (Companies Fresh Start Scheme, 2020 is a scheme which will give a chance to enable companies to make good of any filing-related defaults, irrespective of the duration of default, and make a fresh start as a fully compliant entity) You may file the following forms in case where you have defaulted earlier in filing the form, which otherwise required to be filed with an additional fees:
•Form AOC 4 (Financial Statements)
•MGT 7 (Annual returns)
•other forms like MGT 14, PAS 3, ADT 1 etc.

Clarification on spending funds for Awareness and public outreach on COVID-19 Vaccination programme In continuation to this Ministry's General Circular No. 10/2020 dated 23.03.2020 wherein it was clarified that spending of CSR funds for COVID-19 is an eligible CSR activity , it is further clarified that spending of CSR funds for carrying out awareness campaigns/programmes or public outreach campaigns on COVID-19 Vaccination programme is an eligible CSR activity under item no. (i),(ii) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care and sanitization, promoting education, and, disaster management respectively.

The Department of Revenue, Ministry of Finance has released the Customs Authority for Advance Rulings Regulations, 2021: Powers of Authority:-
• The Authority shall have the power to hear and determine all applications and petitions.
• The Authority may, if any difficulty arises in giving effect to its order or advance ruling, either suo moto or on a petition made by the applicant or the Principal Commissioner or Commissioner, within a period of one month of noticing the difficulty, by appropriate order remove such difficulty, and pass such other order as it considers just and necessary in the circumstances of the case.
• The Authority may reopen the hearing of any case, before pronouncement of its order or advance ruling, for sufficient cause.
• The Authority may, in an appropriate case, direct -
(i) examination of any records and submission of report; (ii) conduct of any technical, scientific or market enquiry of any goods or services and submission of report and may also call for reports from experts and order such further investigation as may be necessary for effectual disposal of the application.

GST: Hearing a case related to the Central Goods and Service Tax act the Gujrat high court asked the union government to take steps to stop provisionally attaching bank account of person after the GST departments raids over suspected tax evasion or other irregularities.

Income Tax 10% price-stamp duty variance relief u/s 50C on flat sale applies retrospectively from FY 02-03. ITAT Mumbai in case of ITD & Maria Fernandes Cheryl.

MCA : Amount spent on awareness campaigns/public outreach campaigns etc on Covid-19 vaccination is eligible CSR activity. MCA General Circular No. 01/2021 of 13.1.21.

11/01/2021 Income Tax Registration of Trust cannot be cancelled for non-filing of I.T. return due to misdeeds of ex-president. Case Name : Wholesale Cloth Merchant Association Vs PCIT (ITAT Jaipur)

ITAT Chennai in the case of DCIT Vs Avigna Housing Pvt. Ltd. Has decided that we are of the considered view that fair market value of shares considered by the assessee under DCF method is one of the accepted method of valuation of shares under Rule 11UA and such value of shares is supported by necessary supporting evidences including valuation report as on the date of issue of shares.

Income Tax special unit has been created by the government in the countrywide investigation wings of the Income Tax department for focussed probe in cases of undisclosed assets held by Indians abroad and possession of black money in foreign shores. The Foreign Asset Investigation Units (FAIUs) have been recently created in all the 14 investigation directorates.

Reserve Bank of India announced its intention to “restore normal liquidity management operations in a phased manner.” It announced the resumption of variable rate reverse repo auctions, the first of which will be held on January 15, for an amount of Rs 2 trillion, and a tenor of 14 days.

Banks’ gross non-performing assets may rise to 13.5 per cent by September 2021, from 7.5per cent in September 2020 under the baseline scenario, according to Financial Stability Report (FSR) released by the Reserve Bank of India. If the macroeconomic environment worsens into a severe stress scenario, the GNPA ratio may escalate to 14.8 per cent.

GST: Proper Officer can possess Confiscated Goods if taxpayer opts not to pay tax payable, penalty & other charges. Case Name : M.S. Meghdoot Logistics Vs Commercial Tax Officer (Karnataka High Court)

GST data in GSTR-1 is now available on T+3 day basis, i.e. for example, the data from e-invoices uploaded on 18-12-2020 would be visible in GSTR-1 on 21-12-2020. The corresponding reflection of such e-invoice details in GSTR-2A/2B/4A/6A has also started.

SEBI proposed to ease ownership norms for entities that plan to start new stock exchanges in India, a move that may end the 16-year-long dominance of the National Stock Exchange (NSE), allow entry of foreign exchanges and lower the trading costs for investors. Currently, NSE, BSE and Metropolitan Stock Exchange are the three nationwide bourses in India, with NSE being the largest in terms of trade volumes both in cash and derivatives segments.

Supreme court of india had issued a circular no. F.No.01/Judl./2020 on March 05, 2020 regarding use of A4 size paper instead of green color legal size paper.

Vietnam and China outperform India in terms of exports:
1. Comparison of India’s exports to US with that of China and Vietnam between January and November 2020:
a. India’s shipment to the US shrank 13.3% on year to $46.3 billion.
b. China’s dropped by only 5.8% to $393.6 billion despite a trade war and growing criticism of Beijing’s mishandling of the Coronavirus outbreak.
c. Vietnam’s exports to the US, in fact, rose by as much as 20% to $72.7 billion.

2. Similarly for European Union (EU):
a. India’s exports to the EU (excluding the UK) witnessed a steep 17.2% decline to 30.6 billion euros.
b. China’s shipment to the EU rose by 4.3% to 350 billion euros during this period.
c. Vietnam’s fell only marginally by 0.5% to 31.9 billion euros.

3. India’s exports shrank 17.84 per cent during the seven month period between April and November this year, triggering serious concerns as exports from most Asian countries have in contrast to India been rising.
4. The government is hoping that the new Remission of Duties or Taxes on Export Products Scheme (RoDTEP) will remedy the situation.
Source: census.gov and ec.europa.eu

The Narendra Modi government has given a big bonanza to around six crore EPF subscribers who have been eagerly waiting for the crediting of interest for 2019-20 in their employees' provident fund (EPF) accounts.
Labour and Employment minister Santosh Gangwar, announcing the decision on Thursday (December 31) had said that PF subscribers will start receivig 8.5 percent interest on their PF amount from December 31 onwards.

All CGHS Circulars issued during calendar year 2020.... Password is CIR@2020 Read More

The Supreme Court on Friday held that all summons and notices are allowed to be served through digital medium, including email, fax and instant messaging mobile applications. The decision comes in the wake of a visit to a post office not entirely possible due to the coronavirus pandemic.
In a first, the order passed by a three-judge apex court bench headed by Chief Justice S.A. Bobde held that all methods are to be employed to provide a valid service to a party and it shall include service through messenger services like WhatsApp and other telephone messenger services.
Gist of Gst, Direct Tax, Company Law, RBI, SEBI law amendments of December 2020.... Read More

Remission of Duties and taxes Scheme to boost exports......
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Benchmarking in the case of ECBs:
In the case of GE India Technology (ITA 282/2013), Hon Karnataka HC examined this issue.
Karnataka HC had to decide on whether RBI approved rates for ECBc could be used as a benchmark for Transfer pricing Study? The Hon HC held that RBI approved rates are a 'relevant factor' for determining benchmarks.

Sharp rise in currency in circulation:
According to data released by the RBI, currency in circulation grew by Rs 5,01,405 crore between January 1, 2019, and January 1, 2020.
Overall, it has gone up to Rs 27,70,315 crore, up 22% from the previous year.
The average growth for the last decade was 12.6% and for the last 50 years 13.8%.

Unclaimed deposits of ?18,000 crore:
1. Close to ?18,000 crore of unclaimed deposits were lying with banks in calendar year 2019, up from ?14,307 crore in 2018, showed the data released by the Reserve Bank of India (RBI).
2. Deposits are classified as unclaimed when they are not operated for 10 years or more.
3. Unclaimed deposits at public sector banks stood at ?14,971 cr in 2019, it was ?2,472 cr at private banks.
4. RBI has framed the Depositor Education and Awareness Fund (DEAF) Scheme, 2014 under which banks calculate the cumulative balances in all accounts which are not operated upon for a period of 10 years or more (or any amount remaining unclaimed for 10 years or more) along with interest accrued and transfer such amounts to the DEAF.
5. In order to claim the deposits which are transferred to DEAF, an unclaimed deposits claim form has to be submitted with the requisite KYC.

Auto-population of e-invoice details into GSTR-1/2A/2B/4A/6A
1. Certain notified taxpayers have been issuing invoices after obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’). Details from such e-invoices shall be auto-populated in respective tables of GSTR-1. Update on the status of such auto-population was last published on 30/11/2020.
2. For those taxpayers who had started e-invoicing from 1-10-2020, the auto-population of e-invoice data into GSTR-1 (of December 2020) had started from December 3rd, 2020
3. In this regard, following is to be noted by those taxpayers:
??The data in GSTR-1 is now available on T+3 day basis, i.e. for example, the data from e-invoices uploaded on 18-12-2020 would be visible in GSTR-1 on 21-12- 2020.
??The corresponding reflection of such e-invoice details in GSTR-2A/2B/4A/6A has also started.
??The auto-population of e-invoice data into GSTR-1 is based on date of document (as reported to IRP).
For example, a document dated December, 30th, 2020 is reported to IRP on 3rd January, 2021 and where GSTR-1 for December, 2020 is not filed, then the details of that document will be available in the tables of GSTR-1 pertaining to December, 2020.
However, if the GSTR-1 for December was already filed by that date, then, the details of such document will be made available in the consolidated excel file downloadable from GS TR-1 dashboard (with error description as ‘Return already filed’). The taxpayer may thereupon take necessary action.
4. Owing to existing validations in GSTR-1, e-invoices reported with below commonly observed issues are not auto-populated in the tables of GSTR-1 but are made available in the consolidated excel file downloadable from GSTR-1 dashboard (with corresponding error description):
??Supplier is found to be of type ISD/NRTP/TCS/TDS;
??Supplier is found to be composition taxpayer for that tax period;
??Document date is prior to Supplier’s/Recipient’s effective date of registration;
??Document date is after Supplier’s/Recipient’s effective date of cancellation of registration;

?? Invoices reported as attracting “IGST on Intra-state supply” but without reverse charge
5. Further, in certain cases, e-invoice details could not be processed (and hence were not auto-populated) due to data structure issues. These errors may be taken note of and shall be avoided while reporting the data to IRP.
??Serial number of item shall not be reported as ‘0’
??White space found in POS (Place of Supply State Code), e.g. “8 ” . Expected values were 08 and 8. 6. The detailed advisory with methodology of auto-population etc. is already made available on the GSTR-1 dashboard (‘e-invoice advisory’) and also e-mailed to relevant taxpayers.
7. It is once again reiterated that the auto-population of details from e-invoices into GSTR-1 is only a facility for the taxpayers. After viewing the auto-populated data, the taxpayer shall verify the propriety and accuracy of the amounts and all other data in each field, especially from the perspective of GSTR-1 and file the same, in the light of relevant legal provisions.
8. The taxpayers are once again requested to verify the documents auto-populated in GSTR-1 tables and consolidated excel and may share feedback on GST Self Service Portal, on below aspects: ??All documents reported to IRP are present in excel ??Status of each e-invoice/IRN is correct ??All the details of document are populated correctly

Income Tax conducts search in Kolkata:
The Income Tax Department carried out search and seizure action on two Kolkata based Groups engaged in manufacturing & trading of Steel, trading of marbles & stones, food grains etc.
The search action has resulted in unearthing of incriminating evidences revealing various shell entities being used for raising bogus share capital/unsecured loans, discrepancies in stock and out of the books cash transactions. A total concealment of income amounting to Rs. 178 crore has been detected so far including excess stock of Rs. 38 crore.

Record Dec FPI inflows:
1. Foreign portfolio investors (FPI) remained net buyers for the third month in a row by investing Rs 68,558 crore in Indian markets as global investors continued betting on emerging markets.
2. The overseas investors put in a net Rs 62,016 crore into equities and Rs 6,542 crore into the debt in December 2020.
3. The year 2020 also recorded the highest-ever yearly net inflow of FPIs into equities at over Rs 1.70 lakh crore.
4. In 2020, the Indian stock market witnessed net selling by FPIs during three months — March, April and September. March was the worst month in terms of FPIs, with the highest net outflow during the year pegged at Rs 61,973 crore.
5. Calendar 2019 witnessed total inflows of Rs 1,01,122 crore while Calendar 2018 saw FPI outflows of Rs 33,014 crore. Net inflows for last two years stood at Rs 68,108 crore. Source: FPI data by NSDL

EPF interest for 19-20:
1. The Labour Ministry has notified the interest rate of Employees Provident Fund as 8.5% for FY 19-20, after receiving the concurrence of the finance ministry.
2. 8.5% would comprise of 8.15% earned in the debt market and 0.35% through the sale of exchange traded funds, provided they are redeemed by 31st Dec, 2020.
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