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Our updates

24/12/2021

New RBI norms for digital transactions from 1st Jan.
1. Starting 1 January, 2022, companies or merchants will not be allowed to save card information on their websites.
2. The RBI had issued guidelines to move towards card tokenisation in March 2020 and re-issued fresh guidelines in September 2021 to boost data security.
3. The RBI has ordered all companies in India to purge saved credit and debit card data from their systems from 1 January, 2022.
4. Users may have to re-enter card details every time they transact online. They can also give their consent to e-commerce companies or other online platforms to tokenise cards who will then ask card networks to encrypt details with additional factor authentication as needed.

The Centre is likely to implement the four new labour codes on wages, social security, industrial relations and occupation safety, health and working conditions, in the next financial year, which will pave the way for a four-day workweek. Under these new codes, a number of aspects related to work culture, including take-home salary of the employees, working hours and the number of weekdays will be changed. Besides this, the ministry has made it clear that even if the proposal comes through, employees have to work 12 hours on these four days, which is a 48-hour weekly work requirement that has to be met. An important change that will be introduced in the four-day workweek would be a reduction in taking home pay and employees and firms will have to bear a higher provident fund liability. As per reports, there will be more money in PFs and less in-hand salary.

Foxconn Technology Group company Bharat FIH, a top domestic electronic manufacturing services ( EMS) player and the largest mobile phone maker to market leader Xiaomi, has filed papers with Sebi to raise around Rs 5,000 crore via an IPO. The IPO will comprise of a fresh issue component of Rs 2500 crore and an OFS ( offer for sale component) of Rs 2500 crore. Parent FIH Limited is listed in Hong Kong. The net proceeds of the IPO will be used for Funding capital expenditure requirements towards up-gradation and expansion of existing campuses.

23/12/2021
The income tax department on Wednesday raided the premises of top Chinese smartphone brands Xiaomi and Oppo, which official said followed “Intelligence inputs” suggesting concealment of income and evasion of taxes by the companies. A day earlier, anti-smuggling agency Directorate of Revenue Intelligence had searched the factories of Foxconn India’s unit Bharat FIH, and Dixon Technologies in South India, government officials said. Bharat FIH and Dixon are contract manufacturers for Xiaomi. More than 20 premises in the National Capital Region, Mumbai, Rajkot and Karnataka linked to Oppo and Xiaomi were searched by the tax department, said people aware of the matter. Searches were also conducted at the offices of One Plus, the Chinese company that has merged into Oppo but operates as a separate brand.

Union Finance Minister Smt Sitharaman chaired Pre-Budget consultations with prominent economists on, 22nd December 2021, in New Delhi in connection with the forthcoming General Budget 2022-23. The meetings were held virtually.

22/12/2021
A director of a company must be aware of the norms in the Companies Act 2013, which could lead to the disqualification of directorship for five years. If a company fails to file its financial statements and other relevant documents for a continuous period of three years then it could be struck off from ROC and its directors can be disqualified for five years. The intention of the Government behind this is to fight the menace of black money created by shell companies. However, these actions could deeply impact the careers of directors as a five-year ban from directorship could prove to a lot. Here is the impact disqualification could have on a directors career:
1. The Ministry of corporate affairs has clearly stated that the directors once disqualified will be rendered ineligible for appointment in any other company for five years. This could mean an exile of five years from an illustrious corporate career.
2. The liability of a company after being struck off remains with the directors even after their disqualification.
3. The directors may also face huge penalties due to non-compliance of RoC rules.
4. If a director continues to be on the directorship even after disqualification then he/.she could face imprisonment of one year or a fine of 1 lakh to 5 lakh.
5. The office of the director becomes vacant after disqualification.

Bollywood actor Aishwarya Rai Bachchan was questioned for about six hours on Monday by the Enforcement Directorate (ED) at its office in central Delhi in a case linked to the 2016 ‘Panama Papers’ global tax leaks case, official sources said. The quizzing of the 48-years-old daughter-in low of superstar Amitabh Bachchan and Semaj Wade Party MP Jaya Bachchan comes weeks after her husband Abhishek Bachchan was questioned by the agency in another case emerging from the same set of papers linked to the offshore leaks case, they said. The ED recorded Aishwarya Rai Bachchan’s statement under the provisions of the Foreign Exchange Management Act (FEMA).

21/12/2021
Income Tax Rules for FTC:
A relief for taxes paid in foreign country is given to tax payer while taxing the same income in the home country and this is termed as Foreign Tax Credit (FTC). CBDT has notified Rule 128 in the year 2016 to prescribe the method of allowing the foreign tax credit. Salient features:
1. FTC can only be claimed by residents.
2. Credit is available only if income corresponding to the taxes is offered for tax or assessed to tax in India during the year in which the credit is claimed.
3. FTC is eligible for adjustment against the tax, surcharge and cess payable under the IT Act
4. FTC cannot be adjusted against interest, fee or penalty payable under the IT Act.
5. FTC is not available in case foreign tax or part thereof is disputed by the assesse in any manner.
6. The rate of exchange to be taken for FTC calculation is TT buying rate on the last day of the month immediately preceding month in which the tax is paid or deducted.
7. The tax payable under the act on such income or the foreign tax paid whichever is lower is eligible as FTC.

ITAT allows senior advocate Harish Salve Tax credit against overseas income. Harish N. Salve (ITA No. 7356/Del/2018)
Facts:
1. The assessee had claimed relief of Rs.8,57,07,736/- u/s 90 of the Act which represented proportionate tax credit in respect of tax of Rs.11,71,22,901/- paid by the assessee in United Kingdom, the corresponding income which was already offered to tax by assessee.
2. The AO did not grant credit for taxes paid in UK. When the matter was carried before CIT(A), CIT(A) did not adjudicate the issue as the rectification application filed by the assessee before the AO was pending.
The Delhi ITAT held as below:
1. It is an undisputed fact that the overseas income earned by the assessee in UK has been offered to tax by the assessee in India and out of the total tax of Rs.11,71,22,901/- paid by assessee in UK, assessee is claiming credit of Rs.8,57,07,736/- u/s 90 of the Act since the corresponding amount of income has already been offered to tax in India and has also been accepted by Revenue.
2. We are of the view that the credit of the taxes paid on such income deserves to be allowed.

20/12/2021

Associate Editor of CNBC TV18, Timsy Jaipuria has tweeted that:
Attention Taxpayers & CAs!
Government in no mood to extend any tax deadlines; be it GST or Income Tax filing.
Finance Ministry’s view: “Enough extensions given, taxpayers have been encouraging in filing their returns on time thus do not require any extension.”

Crypto Currency Updates:
1. The Reserve Bank of India (RBI) has conveyed to its central board that it favour a complete ban on cryptocurrencies, people familiar with deliberations at the central bank’s board meeting on Friday told ET. The RBI made a detailed presentation to the board highlighting “serious concerns” relating to macroeconomic and financial stability as well as exchange management, said one person. “The board was apprised of RBI’s stance on the matter.” The Central bank also highlighted the challenge of regulating intangible assets that originate overseas.

2. The Russian Central banks wants to ban investments in cryptocurrencies in Russia, seeking risks to financial stability in the rising number of crypto transactions, two financial markets sources close to the bank said. Leading cryptocurrency bitcoin fell after the report to $48656 from levels around $49144 seen shortly before. Russia has argued for years against cryptocurrencies, saying they could be used in money laundering or to finance terrorism. It eventually gave them legal status in 2020 but banned their use as a means of payments.

3. For crypto players in India, the months between now and the possible enactment of a law is like a no man’s land. And, having sensed that the crypto bill would not go through in the ongoing session of Parliament. Crypto exchanges and platforms are working on a new code of conduct to navigate existing laws and business landscape while dealing with various government departments like the Income Tax and Enforcement Directorate during the continuing regulatory void. The older code is being improved to consider closer monitoring of flows, stand arising know-your-customer procedures, keeping tabs on high volume, high frequently transactions, and even introducing tax deduction at source. The new code, outlining the proposed measures body Block chain and Crypto Assets Council for comments from exchanges and intermediaries which are members of the Council. The document could be finalized after the council members meet later this month, said an exchange official.

19/12/2021
A dormant company shall file a declaration “Return of Dormant Company” annually inter-alia indicating financial position duly audited by a chartered accountant in practice in Form No. MSC-3 along with such annual fee as provided in the Companies (Registration Offices and Fees) Rules, 2014 within thirty days from the end of each financial year.
Provided that the company shall continue to file the return or returns (s) of allotment and change in directors in the manner and within the time specified in the Act, whenever the company allots any security to any person or there is any change in the directors of the company.

Gist of GST Circular No. 167/2021 dated 17.12.2021.
A. For E-Commerce Operators:
1. There is no mandatory requirement of separate registration by ECOs for payment of tax on restaurant service under section 9(5) of the CGST Act, 2017.
2. ECOs are liable to pay GST on supply of restaurant service made by unregistered business entities.
3. Separate bill is required to be raised if restaurant service and goods or services other than restaurant service are sold by a restaurant to a customer under the same order. It is advisable that ECO raises separate bill on restaurant service in such cases where ECO provides other supplies to a customer under the same order.
4. The invoice in respect of restaurant service supplied through ECO under section 9(5) will be issued by ECO.
5. ECOs for providing service require inputs as well services on which they claim ITC. The situation in this regard remains unchanged even after ECO is made liable to pay tax on restaurant service. ECO would be eligible to ITC as before. They are not required to reverse the ITC on account of restaurant services on which it pays GST in terms of Section 9(5) of the Act.
6. No ITC could be utilised for payment of GST on restaurant service supplied through ECO. The tax liability as per Section 9(5) to be discharged in cash.
7. E-Commerce Operators paying tax under section 9(5) are not required to collect TCS and file GSTR-8.
8. For the goods and services not notified u/s 9(5), they will continue to collect TCS in the same manner.
9. ECOs are not the recipient of the restaurant services supplied through their platform; hence, they need not to report these services as inward supplies in GSTR-3B.
10. ECO operators may continue to pay GST by furnishing details in GSTR 3B as outward taxable supplies. For accounting purpose, they can furnish the details of such supplies of restaurant services under section 9(5) in Table7A(1) or Table 4A of GSTR-1.

B. For persons supplying restaurant service through ECOs:
1. For calculating the threshold or any other purpose in the Act, they shall include the aggregate value of supplies made by them through ECOs.
2. For the time being, they will report such supplies of restaurant services made through ECOs in Table of GSTR-1 and Table 3.1 (c) of GSTR-3B.

18/12/2021
The Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh stated in Rajya Sabha that the number of companies incorporated after the announcement of ‘Make in India’ programme are: 6,69,819 number of Companies having Active status out of the 7,30,013 new companies incorporated during the period 25.09.2014 to 31.03.2021 and 1,12,207 companies are having Active status out of the 1,12,697 new companies incorporated during the period 01.04.2021 to 01.12.2021. The Minister stated that development of a robust manufacturing sector continues to be a key priority of the Government. It was one of the unique ‘Vocal for Local’ initiatives that promoted India’s manufacturing domain to the world. ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor to promote entrepreneurship.

The union cabinet today approved an incentive scheme to promote the use of RuPay debit cards and low-value BHIM-UPI transactions. The scheme, which will promote the use of RuPay debit cards and person to merchant UPI transactions upto Rs 2,000, was approved in a cabinet meeting on Wednesday chaired by Prime Minister Narendra Modi. Under the scheme, the govt will incentivise the acquiring banks by paying a percentage of value of the transactions done through RuPay and BHIM-UPI systems. According to estimates, around Rs 1,300 crore will be spent on the scheme for the financial year 2021-2022. Talking about the scheme, Union Minister Ashwini Vaishnaw said that to further develop the RuPay and UPI payment systems, the government of India will reimburse the MDR (Merchant Discount Rate) in the person-to-merchant part of the transactions. He said that this incentive will be like an investment for digital payments. The govt will be investing Rs 1300 crore so that more people adopt digital payments. Ashwini Vaishnaw informed that the month of November saw a record number of digital transactions in the country, with above 423 crore transactions in the month. The value of these transactions was ?7,56,000 crore, close to $100 billion. Last month, Visa had complained to the US government that the Indian government’s formal and informal promotion of RuPay hurts the company in a key market.

17/12/2021
The Union Cabinet on Wednesday cleared proposed amendments to the electoral law seeking to bring in key electoral reforms such as linkage of voter ID with Aadhaar so as to weed out bogus and duplicate entries in the electoral roll. Sources indicated that another reform sought to be implemented is allowing multiple dates in a year, rather than only January 1, for those above 18 years, to register themselves as voters.

India's annual wholesale price-based inflation, a proxy figure for producers' prices, accelerated to a record high in November, boosted by increases in manufacturing and food prices, fuelling concerns of rising inflationary pressure. Annual wholesale price-based inflation (INWPI=ECI) rose to 14.23% in November, its highest since April 2005, according to data from Refinitiv, against 12.54% the previous month, government data showed on Tuesday. November's WPI figures were an all-time high, and came as a shock, reflecting an uptick in rising input costs for firms and the impact of rupee depreciation.

16/12/2021
The government has introduced bills in the parliament to strengthen the disciplinary mechanisms for chartered accountants, cost and work accountants and company secretaries. The Chartered Accountants, The Cost And Works Accountants And The Company Secretaries (Amendment) Bill, 2021 is aimed to reform and speed up the disciplinary mechanism of the institutes. The bills aim to deal with the conflict of interest between the administrative and disciplinary arms of the institutes. Firms will now have to be registered separately with the respective institutes and will come under purview of disciplinary mechanism. Three bills dealing with these professions, The Chartered Accountants Act , The Cost And Work Accountants Act And The Company Secretaries Act will be amended and time bound disposal of cases with time limits for speedy disposal of matters will be ensured by the members of the institute.

In continuation of Ministry’s General Circular No. 20/2020 dated 05.05.2020, General Circular No. 02/2021 dated 13.01.2021 and General Circular No. 19/2021 dated 08.12.2021, it has also been decided to allow the companies who are proposing to organize AGMs in 2022 for the Financial Year ended/ending any time before/on 31.03.2022 through VC or OAVM as per the respective due dates by 30th June, 2022 in accordance with the requirements laid down in Para 3 and Para 4 of the General Circular No. 20/2020 dated 05.05.2020. It is clarified that this Circular shall not be construed as conferring any extension of time for holding of AGMs by the companies under the Companies Act, 201.3 (the Act) and the companies which have not adhered to the relevant timelines shall be liable to legal action under the appropriate provisions of the Act.

The Income Tax Department carried out search and seizure operations on 02.12.2021 on four Bangalore based Credit Cooperative Societies (CCS) and their associates. These search actions have revealed gross irregularities in the operations of these CCS and involvement of their promoters in siphoning-off funds of depositors for personal usage. The promoters of these CCS took advantage of the relaxed KYC norms while operating the CCS and several accounts have been opened without obtaining PAN. The promoters have misused these institutions for their personal benefit. The investigations have also revealed systemic distortion of the legal framework by these CCS.

Uber challenged GST applicability on Auto Rickshaws services. Uber India Systems (P.) Ltd. v. Union of India - [2021] 133 taxmann.com 130 (Delhi). The Government has issued amendment notification to provide that the services of autos, e-rickshaws, etc. availed using aggregator would be subject to GST (Notification No. 16/2021-CT (Rate) & 17/2021-CT (Rate), Dated Nov 18, 2021, effective from January 1st, 2022). The aggregator would be liable to pay GST in such cases. However, such services provided through offline mode continue to be exempted. In the above backdrop, Uber India has filed a writ petition challenging levy of GST on supply of passenger transportation service through an electronic commerce operator when such service is provided by auto rickshaw with effect from 1st January, 2022 before the Hon'ble Delhi High Court on the grounds of discrimination and absence of reasonable classification. The Delhi High Court issued notice in this regard.

15/12/2021
Bank unions under the United Forum of Bank Unions (UFBU) umbrella have called a strike on December 16 and 17 against the proposed public sector bank privatisation. In the Budget 2021-22, the government had announced its intent to take up the privatisation of two public sector banks (PSBs). Public sector banks including State Bank of India (SBI) urged unions to reconsider their decision to go on a two-day nationwide strike, and invited them for further discussions. The country's largest lender SBI in a tweet urged its staff members to reconsider their decision and refrain from participating in strike. "Furthermore, considering the ongoing pandemic situation, resorting to a strike will cause great inconvenience to the stakeholders," the tweet said.

CBDT notifies conditions for exemption of income accrued or received by non-resident as a result of transfer of on-deliverable forward contracts:
1. The Board has notified the Income-tax (33rd Amendment) Rules, 2021 which seeks to further amend the Income-tax Rules, 1962. The Board has inserted Rule 21AK in respect of Conditions for the purpose of clause (4E) of section 10.
2. The income accrued or arisen to, or received by, a non-resident as a result of transfer of non-deliverable forward contracts under clause (4E) of section 10 of the Act, shall be exempted subject to fulfillment of the two conditions:
a. The non-deliverable forward contract is entered into by the non-resident with an offshore banking unit of an International Financial Services Centre which holds a valid certificate of registration granted under International Financial Services Centres Authority (Banking) Regulations, 2020 by the International Financial Services Centres Authority.
b. Such a contract is not entered into by the non-resident through or on behalf of its permanent establishment in India. The offshore banking unit shall ensure that the condition provided in clause (ii) of sub-rule (1) is complied with.

Payment to UK company for providing access to software to member firms is not taxable: Delhi HC:: Ey Global Services Limited vs Assistant Commissioner Of Income (W.P.(C) 11957/2016 & CM 27602/2021)
Facts:
1. The EYGBS (India) Private Limited is an Indian company engaged in providing back-office support and data processing services.
2. In terms of the Service Agreement and the MOU, EYGBS merely receives the right to use the software/technology/licenses and other support services procured by the EYGSL (UK) from third-party vendors. These services were further provided by EYGBS to all member firms of the EY network.
3. The question was whether the above services are in the nature of Royalty and fees for technical services chargeable to tax.
4. The AAR held that the consideration received from giving right to benefit from the computer software procured from several third party vendors (deliverables) is in the nature of royalty under Article 13 of India -UK DTAA as well as Sec 9(1)(vi) of the Act whereas consideration received for giving right to benefit from services is not in the nature of royalty under Article 13 of the India-UK DTAA.
The Hon Delhi HC held as below:
1. EYGBS merely receives the right to use the software procured by the EYGSL (UK) from third-party vendors. In determining whether the right to use software falls under royalty definition, the rights acquired by the EYGSL (UK) from the third-party software vendors are not relevant. What is relevant is the Agreement between the EYGSL (UK) and the EYGBS (India).
2. As the above agreement does not create any right to transfer the copyright in the software, the same would not fall within the ambit of the term royalty as held by the Supreme Court in Engineering Analysis Centre (2021 SCC OnLine SC 159)
Notes:
1. Sec 14 of the Copyright Act defines copyright to include exclusive right and license to reproduce, make copies, adapt work, etc.
2. A non-exclusive, non-transferable licence that merely permits the use of a copyrighted property cannot be read as a licence to exercise all or any of the enumerated rights outlined in Sec 14 of the Copyright Act as held in the case of the SBI vs Collector of Customs (1999).
3. The SC in a recent and a very famous case of Engineering Analysis Centre has held that if the licence offered to distributors and end-users creates no interest or right in the software, it does not constitute the “use of or right to use” of copyright and thus does not qualify as royalty under the double Tax avoidance Treaty.

BRR has been expanded by SEBI to top 1000 listed companies:
1. SEBI has expanded the ambit of Business Responsibility Reporting (BRR) by notification No. SEBI/LAD-NRO/GN/2019/45 dated 26.12.2019 (Securities and Exchange Board of India – Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2019.
2. BRR is a disclosure of adoption of responsible business practices by a listed company to all its stakeholders. Today businesses are a critical part of the social system and so they are accountable not merely to their shareholders but also to the society at large.
3. BRR is now made compulsory for top 1000 listed companies by market capitalisation. Market Capitalisation has to be calculated as on 31st March every year.
4. The BRR framework is divided into five sections:
(a) Section A: General Information about the Organisation – Industry Sector, Products & Services, Markets, other general information
(b) Section B: Financial Details of the Organisation – Paid up capital, Turnover, Profits, CSR (Corporate Social Responsibility) spend.
(c) Section C: Other Details – BR initiatives at Subsidiaries and Supply-chain Partners
(d) Section D: BR Information – Structure, Governance & Policies for Business Responsibility
(e) Section E: Principle-wise Performance – Indicators to assess performance on the 9 Business Responsibility principles as envisaged by the National Voluntary Guidelines (NVGs)

14/12/2021
Tega Industries made a stock market debut on Monday, listing at a 68% premium to its IPO price of Rs453 per share. The stock, which was 60% ended at Rs725.50, which was 60% above its issue price. The Rs619 crore-IPO of Tega Industries was subscribed over 219 times thanks to strong interest from High Net Worth Individuals (HNIs) and institutional bidders. The QIB (qualified institutional buyer) portion saw historic bidding as their portion received the most bade for any issue in the last decade. The portion reserved for HNIs was subscribed 666 times, whereas the quote for qualified institutional buyers fetched bids over 219 times. Allocation bide more than 29 times.

Vedanta Ltd said on Monday that the company and its group entities have withdrawn all their cases over retrospective tax demands from the revenue department to settle a nearly seven-year-old dispute with the government. Given recent amendments that nullifies the retrospective tax imposed by the Finance Act, 2012, Vedanta and its all-related group entities have taken a step to settle the dispute over a March 11, 2015, order passed by the deputy commissioner of income tax, the Anil Agarwal-led metals and mining conglomerate said in a stock exchanges filing. The announcement by the Vedanta will bear, “no cost, or accrue any (financial) gain” for the company, a person aware of the development said. “However, it will bring clarity to its balance sheet, “he added. “Vedanta Ltd has withdrawn the income tax appeal pending before the Delhi bench of the Income Tax Appellate Tribunal and also withdrawn writ petition filed before the Delhi High Court… “the company said in its stock exchange filing.

TDS credit to be allowed to Employee even if not deposited by the Employer
1. Brief: The Hon'ble Gujarat High Court in Kartik Vijaysinh Sonavane v. Deputy Commissioner of Income Tax [R/Special Civil Application No. 6193 of 2021 dated November 15, 2021] directed the Income-Tax Department (“the Department”) to allow tax deducted at source ("TDS") credit to the assessee, even if the same is not deposited by the employer.
2. Further held that, where tax has been deducted by an employer but not paid to the Central Government, the Department should resort to Section 201 of the Income-tax Act, 1961 ("IT Act") to recover TDS from the employer.

13/12/2021
RBI said that Starting October next year, companies will have to quote the legal entity identifier (LEI) number so as to undertaking cross-border transactions of Rs 50 crore or more. The LEI is a 20-digit number used to uniquely identify parties to financial transactions globally to improve the quality and accuracy of financial data systems.

PM addresses depositors in a bank deposit insurance programme in Delhi. Understanding the concern of the poor, understanding the concern of the middle class, we increased guaranteed amount to Rs 5 lakh. Earlier there was no time limit for refund, now our government has made it mandatory to refund within 90 days.

Anti-evasion Wing, Central Goods and Services Tax Bhiwandi Commissionerate, Mumbai have busted a network of fictitious entities in Maharashtra. The entities were involved in availment and utilisation of Input Tax Credit (ITC) against fake invoices without actual supply of goods. Searches were conducted at more than a dozen locations at various premises located in Navi Mumbai, Thane and Palghar. Investigation in the case revealed that M/s. Shree Balaji Steel had fraudulently claimed ITC of Rs. 6.23 Crore from various fictitious entities and passed it on to different buyers. Proprietor and manager of the firm were arrested on yesterday, 12th December 2021 under Section 69 of CGST Act. They were produced before the Additional CMM court, Fort, Mumbai. The Hon’ble Court has remanded both the accused to 14 days’ judicial custody. The quantum of duty evasion is likely to go up during the ongoing investigation.

The sharp increase in rough diamond prices is adversely impacting diamond workers of Surat, Diamond ex-porters reduced purchase of rough diamonds owing to high prices, thereby reducing the need for workers for cutting and polishing of diamonds. As a result, in some cases workers are being deployed for only three days a week. Rough diamonds prices had started increasing from July onwards and the outbreak of Omicron in diamond mining regions of South Africa and Botswana pushed up prices another 20%.
“Since rough diamond prices have gone up, the cutting and polishing units are not replenishing the stock. This is why the work is less at the units,” Diamonds workers Union vice president Bhavish Tank told. Workers in Surat cut and polish more than 85% of the diamonds available in the world. The diamond city has 6000 polishing units, which employ nearly 700000 people and clock an annual turnover of about Rs1.45 lakh crore.

12/12/2021
Mca Updates:
1. MCA has extended the date to allow the companies on conducting Annual General Meeting (AGM) and Extra- ordinary General Meeting (EGM) through video conference (VC) or other audio visual means or postal ballot (wherever applicable) upto 30th June, 2022.

2. Form ADT-1 is not mandatory to be filed in case of appointment of first auditor. The tenure of first auditor ends till the conclusion of first AGM. The same auditor can be appointed again for the term of 5 years, in that case ADT-1 shall be mandatory to be filed within 14 days of the AGM of Company. At the time of filing Form AOC-4, in cases where ADT-1 is not mandatory to be filed (i.e. first auditor, auditor appointed by CAG), SRN as “Z99999999” is to be mentioned.

3. Form MGT-7 is required to be certified from Company Secretary (CS) in practice in case of Section 8 (NPO) Company even not having any operational activity.

4. Brief write up on AGMs under Companies Act 2013, due date, effective due date for 31.3.2021, VCMs, matters to be discussed….
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http://www.cajatinminocha.com/resource/Articles/Image/Annual_General_Meetings_under_Companies_Act.pdf

CBDT has issued press release on 5th December, 2021 in which, it has given category-wise statistics of more than 3 crores ITR filers and mentioned that the number of ITRs filed per day is over 4 lakh and increasing every day.

Some of the largest private equity funds have reached out to their tax advisors to examine if investments made through tax havens such as Singapore, Cyprus and Mauritius, could come under the scanner after revenue authorities raised concerns over grandfathering clauses. They are also worried the tax department could trigger judicial GAAR (General Anti-Avoidance Rule) after it reopened assessments of many top PE firms over capital gains tax. Many PEs under the tax man’s lens fear the investigations could result in tax complications. Some firms are looking to reach out to the government, people close to the development said. Firms including Blackstone, KKR, TPG, and Carlyle have tapped their tax advisors after the I-T department demanded tax over investments made through tax havens during 2013-16.

The Reserve Bank of India (RBI) is set to form a panel to study the charges levied on digital payments suggesting the regulator is not comfortable with the current structure that many believe is expensive, and not in line with the surge in volumes. It would add features to UPI transactions, currently at the lowest price point, potentially eroding further the prospects of several fin tech players. The RBI said it will release a discussion paper on various charges levied by banks and institutions for all kinds of digital transactions through credit cards, debit cards, wallets and Unified Payments Interface (UPI). “It is proposed to release a discussion paper on various charges in the payment system to have a holistic view of the issue involved and possible approaches to mitigating the concerns to make digital transactions more affordable,” the regulator said. At present, the consumer does not pay any charge while swiping her debit or credit card and making UPI payments. But wallets and other PPI instruments charge nearly 2%-2.5% for processing payments. Currently UPI payments cannot charge MDR (merchant discount rate). Debit card MDR is capped at 0.9%, while there is no cap on credit card MDR in India.

11/12/2021
Estimated 15 parameters based on which GST department is issuing notices for scrutiny of returns as follows:
1. In-eligible ITC claimed from non-genuine taxpayers (NGTPs) whose RC is canceled ab-initio
2. Excess outward tax in GSTR-1 compared to GSTR-9 /GSTR-3B
3. Excess Outward tax in E-Way Bills Compared to GSTR-3B
4. In-eligible ITC claimed from GSTR-3B Non-filers
5. Excess ITC claimed in GSTR-9/3B which is not confirmed in GSTR-2A or 8A of GSTR-9
6. In-eligible ITC claimed from RC is canceled suppliers
7. Less turnover is shown in GSTR-1 compared to GSTR-8 (TCS)
8. Less turnover is shown in GSTR-3B compared to GSTR-7 (TDS)
9. Less RCM liability disclosed in GSTR 9/3B/4 than shown by suppliers in GSTR-1
10. ITC claims after the last date of availing of ITC as per section 16(4) GSTR-3B
11. ITC on purchase invoices uploaded by the supplier in GSTR-1 filed after the last date of availing -section 16(4)
12. Interest on delayed payments made with GSTR 3B
13. Excess IGST on imports shown in GSTR_6E vs. ICEGATE data
14. Excess ISD ITC availed in GSTR9_6G Vs GSTR 2A_ISD
15. Excess RCM ITC GSTR9_6CDF than liability shown in GSTR
9_4G

Star health and Allied Insurance, the country’s largest private health insurer, is likely to witness a weak listing no Friday. The company’s share on Thursday traded at a discount of Rs60-70 to its IPO price if Rs900 a piece in the grey market, which is the unofficial market where new securities are bought and sold before listing. This comes after its IPO- the third largest in 2021-failed to get fully subscribed by the close of bidding. Overall the IPO of the Rakesh Jhunjhunwala-backed insurer was subscribed 79% Following a tepid response to its IPO, the insurer had cut its offer for sale size to Rs4000 crore from Rs5249 crore. The IPO was priced between Rs870 and Rs900 per share.

RBI monetary policy updates: RBI on Wednesday announced that the Monetary Policy Committee had opted to keep the rates unchanged in its latest meet.
1. The committee voted with a 5:1 majority to maintain an 'accommodative' stance to revive and sustain growth on a durable basis. 2. The reverse repo rate has remained unchanged at 3.35%.
3. Marginal Standing Facility (MSF) & bank rate too have remained unchanged, at 4.25%.
4. The projection for real GDP growth has been retained at 9.5% in 2021-22 with 6.6% in Q3, & 6% in Q4.
5. Real GDP growth is projected at 17.2% for Q1 of 2022-23 and at 7.8% for Q2 of 2022-23.
6. On the inflation front, RBI has retained CPI projection at 5.3% in 2021-22.
7. The inflation projection has been retained at 5.1% for Q3, 5.7% for Q4, and 5% for Q1FY23.

10/12/2021
Proposed legislation that would ban the use of cryptocurrencies as a method of payment in India also seeks to make those who infringe the law subject to arrest without a warrant and being held without bail, according to a source and a summary of the bill seen by Reuters. Prime Minister Narendra Modi's government has previously flagged that it plans to ban most cryptocurrencies - a move which follows measures by China this September that intensified its crackdown on cryptocurrencies. According the summary of the bill, the Indian government is planning a "general prohibition on all activities by any individual on mining, generating, holding, selling, (or) dealing" in digital currencies as a "medium of exchange, store of value and a unit of account". Flouting any of these rules would also be "cognisable" which means an arrest without a warrant is possible, and "non bailable," it said.

Are ESOPs offered by Holding Co. to the employees of Subsidiary Co. taxable as salary?
In the case of Microsoft Corporation USA ([1999] 235 ITR 565 (AAR)) the Authority for Advance Rulings has held that the benefit arising to the employee of Indian subsidiary from stock option granted by its US parent company was taxable in the hands of Indian employee as ‘salary’. The AAR, by lifting the corporate veil, held that ‘the parent company has made such offer to the employees of the subsidiary company only because it regards its subsidiary and itself as the same concern’.
ITAT (Special Bench – Mumbai) (Sumit Bhattacharya v. ACIT [2008] 112 ITD 1 (Mum)(SB)) relying on the decision of the Supreme Court (Justice Deoki Nandan Agarwal v. Union of India [1997] 237 ITR 872 (SC)) has held that employer-employee relationship is not necessary for an income to be taxed under the head Salaries.

Over 5 L registrations of traders under Udyam in 5 months:
1. Total registrations as of December 5, 2021, on the Udyam portal stood at 59.24 lakh including 55.93 lakh micro enterprises, 2.98 lakh small businesses, and 33,216 medium enterprises, as per data from the portal.
2. All the business associated with the Udyam can avail numerous benefits derived from the various relief schemes offered by the Ministry of MSME for the protection and growth of small businesses in India.
3. In nearly five months since the inclusion of retail trade and wholesale trade in the MSME category, 5.33 lakh registrations have taken place on the Udyam portal, representing 9 per cent of the overall business registrations so far on the digital platform, as per data shared by the MSME Minister in the Lok Sabha.

09/12/2021
Kerala HC admits petitions challenging the validity of faceless assessment procedure under Income Tax:
1. The Kerala High Court has admitted the batch of petitions challenging the constitutional validity of the Faceless Assessment Procedure under Section 144B of the Income Tax Act.
2. The petitioner, Mohamed Babu Paramboor of Malappuram, and others have petitioned that the procedure provided under Section 144B was patently arbitrary and violative of Article 14 of the Constitution of India.
3. The fetters were placed under Section 144B on the right of personal hearing and so consequently adequate opportunity to be heard was not provided, making the assessment procedure violative of principles of natural justice and making Section 144B, manifestly arbitrary.
4. The settled position of law was that whenever an order having a civil consequence was passed against any person, they ought to be given an opportunity of being heard.
5. The petitioners also contended that the assessments made against them were invalid.
6. The court has stayed all further proceedings pursuant to the assessments made against the petitioners.

Royalty exp which is revenue in nature cannot be capitalised : ITAT
Honda Motorcycle and Scooter India Pvt Ltd (ITA No 477/DEL/2021)
Facts:
1. Appellant has paid royalty expenditure of Rs 8,488,135,369/– in lieu of granting license under the royalty and technical know-how agreement and Rs 2,331,540,470/– in lieu of granting technical guidance under the technical know-how agreement.
2. The AO had capitalised the royalty expenditure.
ITAT held as below:
1. The appellant did not acquire any new asset or any new enduring benefit from the payment made under the agreement.
2. The additions made on account of capitalisation of royalty should be deleted.

08/12/2021
Crypto Currency Updates:
1. Prime Minister Narendra Modi will take a final decision on the regulatory for cryptocurrencies amid conflicting views among stake holders, two people’s familiar with the development said. A high-level meeting was held on Thursday to consider all the options as also stakeholder’s views including the concern voiced by the Reserve Bank of India. The options include a complete ban on private cryptocurrencies, a partial ban, allowing all categories of crypto products with regulation, or just a select few with regulation, one of the persons said. Deliberations are likely to continue on Friday before a decision on the framework is taken, the second person said. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is listed for consideration and passing in the ongoing winter session of Parliament.

2. Binance Asia Service (a.k.a Binance.sg), the Singaporean arm of the world’s leading cryptocurrency trading venue, has invested in the private securities exchange – HG Exchange (HGX) – on December 8th. According to the official press release, BAS revealed an 18% post-money stake in HGX. Richard Teng, the CEO of Binance Singapore stated that the platform plans to work collaboratively with HGX ?to foster the blockchain ecosystem in the region.

3. Proposed legislation that would ban the use of cryptocurrencies as a method of payment in India also seeks to make those who infringe the law subject to arrest without a warrant and being held without bail, according to a source and a summary of the bill seen by Reuters. Prime Minister Narendra Modi's government has previously flagged that it plans to ban most cryptocurrencies - a move which follows measures by China this September that intensified its crackdown on cryptocurrencies. According the summary of the bill, the Indian government is planning a "general prohibition on all activities by any individual on mining, generating, holding, selling, (or) dealing" in digital currencies as a "medium of exchange, store of value and a unit of account". Flouting any of these rules would also be "cognisable" which means an arrest without a warrant is possible, and "non bailable," it said.

4. The new cryptocurrency bill is set to empower regulators and government agencies, including the securities and Exchanges Board of India (Sebi), Reserve Bank of India (RBI) and the tax department to scrutinize know your customer (KYC) data of investors that crypto exchanges have collected from clients. According to two people aware of the development, the new regulations would mandate cryptocurrency exchanges to share their KYC data, which mainly includes details of their investors, which the government The KYC data could help regulators zero in on transactions across platforms, check that against bank deposit and even calculate or scrutinize gains and other discrepancies. The new cryptocurrency framework will also put in place a uniform KYC process that every exchanges must adhere to, they said. As things stand today, different cryptocurrency exchanges have different KYC processes.

07/12/2021
The due date for deposit of advance Tax is 15-12-2021. Deposit upto 75% For 3rd installment on or before 15-12-2021 to avoid interest on income tax

MCA clarified that the deadline for holding annual general meetings (AGMs) due in the current year (2021) will not be extended further. The deadline to conduct AGMs ended on November 30. However, it has decided to allow companies to hold their AGMs through video conferencing or other audio-visual modes till June 30, 2022, given the threat imposed by the new variant.

RBI has proposed issuing a discussion paper on all aspects of digital payment charges, including the ones incurred while using credit cards, debit cards, prepaid payment instruments, Unified Payment Interface (UPI), among others. The central bank also proposed launching a UPI-based payment product for feature phone users.

06/12/2021
Local units of global technology majors Alphabet and Meta-Google India Online Services-together paid an equalization levy of Rs1254 crore in FY21, accounting for more than three-fifth of the tax collected by New Delhi under this category. India collected a total of Rs2057 crore 85% However google India and Facebook India share in total collections fell from over 85% in FY20 to 61% The equalization levy is a 6% tax on global companies that generate online advertisement from Indian residents or non-residents companies with a permanent establishment (PE) in India. Last year, the government expended the scope to include more services, a step that would have contributed to higher collections.

AIS data is not being used for suo moto tax liability calculation as of now.
AIS is showing pledged shares as sale of shares, an entry which will enhance tax liability. Also, the data on sale/purchase of shares is showing the day’s closing prices rather than prices at which the sale/purchase was executed.
Clarifying the points, a top official from CBDT, “The equity data being reflected in AIS is based on inputs from depositories.”
“The data is just there to make the tax payer aware about transactions that have been reported to the tax department by depositories and other third parties. We are not taking those transactions into account for pre-filling income tax return forms or calculating capital gains, etc, as of now, as it is a third party data,” the official added. “No tax liability computation will be done based on the data,” the official pointed out. The official also said that AIS gives an option in the drop-down menu for raising a red flag on data sourced from third parties.
The CBDT has rolled out AIS to capture information related to interest, dividend, securities transactions, mutual fund transactions and foreign remittances, among others, for 360-degree profiling of tax payers to plug evasion. It will replace Form 26AS.

05/12/2021
Section 194 IA- Sale of Immovable Property Applicability and Check Points:
1. TDS is applicable in case of Sale of immovable property other than agricultural land.
2 Seller should be resident in order to deduct TDS under this Section.
3. The buyer can be resident or non-resident. 4. In case seller is non-resident, TDS provisions of Section 195 are applicable.
5. The consideration for sale of immovable property >= INR 50 lakhs;
6. The TDS deduction rate under this Section will be 1% of the total consideration price including club membership fees, car parking fees, maintenance fees etc.
7. In case there are more than one seller, the TDS provisions are applicable in case the entire consideration attributable to all the sellers >= INR 50 lakhs; TDS is to be deducted at the time of due or payment, which-ever is earlier.
8. Provision to obtain TAN (Tax Deduction and Collection Account Number) for deduction of TDS is not applicable and the TDS can be deducted on the basis of PAN;
Buyer needs to deduct TDS and pay the same along with filing of TDS Challan cum Statement in Form 26QB within 30 days from the end of the month in which deduction is made.
9. The buyer needs to issue TDS Certificate in Form 16B to the seller of the immovable property within 15 days from the due date of Form 26QB.
10. Even in case the property has been sold at a loss, the TDS deduction will still be there but the TDS deducted can be claimed as “refund”.

Issue on GST on Ice-Cream Parlour
1. Ice cream companies have urged for clarification on the applicability of GST at the rate of 18% on parlour.
2. The GST Council is likely to take up the issue related with levy mechanism on ice cream parlour in this month.
3. Ice-cream parlours sell already manufactured ice-cream and do not cook/prepare ice-cream for consumption like a restaurant, it is supply of ice cream as *goods* and not as a service, even if the supply has certain ingredients of service.
4. A clarification has been issued where there is no mention about prosp and retrosp effect.
5. Many representation submitted for clarification but the ice-cream parlours are coerced (Notice) into paying the GST at 18% for the past supplies with effect from 01.07.17, most of them would go bankrupt and would be compelled to close down their businesses.

04/12/2021

Due Date for Deposit of Advance Tax is 15-12-2021 for the financial year 2021-2022. You are requested to please deposit upto 75% For 3rd installment on or before 15-12-2021 to avoid interest on income tax.

GST revenue collected in the month of November 2021 is Rs. 1,31,526 crore of which CGST is Rs. 23,978 crore, SGST is Rs. 31,127 crore, IGST is Rs. 66,815 crore (including Rs. 32,165 crore collected on import of goods) and Cess is Rs. 9,606 crore (including Rs.653 crore collected on import of goods).

Income Tax Department has settlements with multiple government agencies to obtain financial records of individuals who indulge in high-value transactions but do not report them while filing their return.

CryptoCurrency Updates:
Indians who trade or investing cryptocurrencies on Indian platforms could come under the taxman’s lens, as might those who hold such coin outside the country. The government is looking to amend current income tax and disclosure norms in the upcoming budget to include terms such as cryptocurrency. The government wants to capture cryptocurrency income and investments within and outside India, said people aware of the development. The government is considering amending section 26AS of the income tax act and the Annual Information Regulation (AIR), which shows data on all investments made by a taxpayer and is often called a ‘tax passbook’. There is a recommendation to add the words cryptocurrency, crypto assets or digital currency in some parts of the Income Tax Act,” one of the persons said. This would mean that those filing tax returns will have to specifically disclose their income from cryptocurrency investment or trading.

Cryptocurrency exchanges are turning to targeted advertising and marketing campaigns to soothe the nerves of investors who are exiting their investments amid regulatory uncertainty over the virtual currencies. Some of the exchanges, including CoinDCX and CoinSwitch Kuber, have re-started advertising and marketing campaigns, albeit not as aggressively as earlier, industry insiders said. In most cases, the advertisements are aired on social media and other digital platforms.

RBI has pointed out how some Indians have even starting accepting cryptocurrency payments for expert’s services, thus posing a broader systematic risk. It is observed that some individuals are going to small towns and raising money from people mainly is cash, with the promise of great returns in cryptocurrencies, “sad a person familiar with the representations to central lawmakers. “this is exactly like chit funds, but without any framework or regulations.” Regulators have reportedly flagged instances in the hinterland, particularly in Uttar Pradesh and Bihar, where collective investment scheme or chit funds have been floated to pool money for alleged investment in cryptocurrencies. Exchanges and related associations have also made representations to the panel of central lawmakers, officials at Sebi and RBI could not immediately be reached for comments. Besides chit funds, even MLM-like schemes are being promoted by some unregulated entities, warn insiders, “In India, a lot of scams are driven by smart contracts –anyone can launch their own coin a start raising money,” said Siddharth Sogani, founder, CREBACO, a cryptocurrency research firms.

The Income-Tax Department has detected hugs unaccounted income after it raided some Indian companies and their associates being controlled by a neighboring country, in Delhi, Maharashtra and Gujarat, the CBDT said on Thursday. The searches were carried out on November 16 on at least 20 premises in Mumbai, Ahmedabad and Gandhiham in Gujarat and in Delhi. Those searched are engaged in the business of chemicals, ball bearings, machinery parts and injections, molding machinery. The Central Board of Direct Taxes (CBDT) said in a statement that Rs.66 lakh cash was seized while bank accounts holding about Rs.28 crore funds have been put under restraint.

03/12/2021
India could tax only large foreign shareholders of domestic companies that list directly on overseas exchanges, and such listing may initially be limited to select jurisdictions, including the International Financial Services Centre at GIFT City. Overseas listing is likely to help Indian startups raise funds at good valuations abroad, where demand may be higher. A detailed framework is expected to be announced in the budget for FY23 and may also list jurisdiction where Indian companies could list and provide clarity on Taxability of Investments. The decision to permit overseas direct listing was announced in March 2020, but there has been no follow-up action. According to people in the know, at least two structures or mechanism are under consideration to tax foreign investors in Indian companies listing overseas.
One, exempt all foreign share-holders holding up to 10% from long-term capital gains tax. Two, tax everyone holding share prior to listing when they actually exit the investment.

Authorities have issued over 7.67 crore challans for traffic violations in 23 months after the implementation of motor vehicle (amendment) act, 2019, union minister Nitin Gadkari told parliament on Thursday. To improve road safety and tighten traffic regulations, parliament on august 5, 2019. President Ram Nat Kevin gave assent to the bill on august 9, 2019.

As much as Rs2.82 lakh crore of loans have been sanctioned under Emergency credit line guarantee scheme (ECLGS) as of November 19, MSME Minister Narayan Range on Thursday informed the Lok Sabha.” As informed by DFS, as on Nov 19, 2021, Rs 2.82 lakh crore of loans have been sanctioned under the scheme, “he said in a written reply. The existing overall guarantee limit under ECLGS has been enhanced from Rs 3 lakh crore to Rs 4.5 lakh crore and the scheme has been up to march 31, 2022.

The government has constituted an inter-ministerial committee recently to finalise the coal demand in advance, review the situation and take corrective action with regard to ensuring adequate coal supply to power plants in the country. The committee comprising coal, power and environment secretaries besides chairman, railways board has been set up power and renewable Minister R K Singh said on Thursday.

02/12/2021
Vodafone has filed an application with the Indian government to settle its tax dispute under the retrospective law, agreeing to indemnify it against any future claims a top government official told ET. They, have applied…After processing of the application, the company would be issued form 2,” the official said. Form 2 is the next step that signals acceptance of the application, setting the stage for the issue of fund of tax paid. The government has to refund Rs 44.7 crore to Vodafone that it had collected as tax. Cairn energy and all the other companies covered by the retrospective tax had already by applied for settlement with the income tax department after the final rules under the taxation laws (amendment) act 2021 were issued. Their application has been processed and most, including cairn energy, have been issue form 2, the official said.

In a major reprieve to traders ahead of the assembly polls, the Punjab Cabinet on Wednesday decided to exempt about 1.50 lakh cases from assessment related to cases of ‘C’ form from 2014-15 to 2017-18. The decision would mean that about 8,500 would now be assessed under this category every year. This trader-friendly decision would cost Rs 200 crore to the state exchequer,” an official statement said.

The Central Board of Indirect Taxes and Customs (CBIC) has since last November detected ?38,000 crore of bogus claims from businesses for input tax credit in a technology and data analytics enabled drive against tax evasion, said a person familiar with the development. The result of the CBIC’s year-long compliance drive points to the potential goods and services tax (GST) has in widening the tax base buoyancy, one of the key goals of the 2017 indirect tax reforms.

The Centre is planning to classify cryptocurrency exchanges as e-commerce platforms and levy a one percent tax collected at source on them under the goods and services tax (GST) regime.
The proposed move is aimed at monitoring virtual currency transactions. The report adds that the central government may classify cryptocurrency exchanges into three categories - the platforms that act as a facilitator, the brokerages that allow buying and selling, and the trading platforms that provide an interface for trading. Meanwhile, the government is also mulling treating the use of blockchain technology as export and gradually bringing down the tax on it.

The Noida Authority recently mandated that registration of flats should be on the basis of their carpet area. The move may bring much-needed relief to homebuyers who had demanded that registration of apartments should not be determined by their super area, which allowed some developers to escalate the cost of a flat. The new rule mandates the registration of flats on the basis of their carpet area instead of super area. While developers and some buyers have welcomed the order, others said further clarification is required. Also, it remains to be seen whether the decision will help lower costs for homebuyers. The Real Estate Regulatory Authority (Rera) had already mandated earlier that developers must sell flats based on their carpet area instead of the super built-up area, Kumar said. However, while developers did mention the carpet area of flats, there was ambiguity when it came to registering them, which was mostly charged based on the super area.

01/12/2021
Recent Changes In Rate of Gst Tax on Services as per Notification no 15/16 dated 18.11.2021 applicable wef 01st January 2022
1. Services supplied by way of works contract services to government entity or governmental authority -Services supplied by way of composite supply of works contract to the government authority or government entity(in case of specified projects) which was earlier taxable @ 12%/5% has been made taxable @ 18%.
2. Services supplied by way of works contract services by a subcontractor to the main contractor providing services to Government entity or Government authority –which was earlier taxable @ 12%/5% has been made taxable @ 18%
3. Services by way job work in relation to dyeing or printing of textile and textile products which was earlier taxable @ 5% has been made taxable @ 18%.
4. Pure Services supplied in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution to government entity or governmental authority – which was earlier exempted from levy of GST shall be taxable @ 18%.
5. Works contract services provided in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply to government entity or governmental authority in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution which was earlier exempted from levy of GST shall be taxable @ 18%.
6. Services provided by way of transportation of passengers by a non-air conditioned contract carriage other than radio taxi or stage carriage other than air conditioned stage carriage, through electronic commerce shall be out of the purview of exemption provided under Entry No 15 of the Notification No 12/2017 dated 28.06.2017.
7. Services provided by way of transportation of passengers by metered cabs or auto rickshaws (including e-rickshaws), through electronic commerce shall be out of the purview of exemption provided under Entry No 17 of the Notification No 12/2017 dated 28.06.2017.

In accordance with the recommendation made by GST Council in its 45th GST Council meeting held on 17.09.2021, the Central Government has made an amendment to Notification no 17/2017 dated 28.06.2017 whereby it has notified that in case of following category of service, the tax on intra State supplies shall be paid by the electronic commerce operator : - services by way of transportation of passengers by a motor cycle, omnibus or any other motor vehicle; - supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.
Wherein specified premises means premises providing hotel accommodation service having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.

30/11/2021
Important Interpretations of Three Recent Court Judgements which can have far reaching consequences in the modern era of tax compliances:
1. In the case of VKS Logistics, which talks about the refund as per the inverted duty structure, the Gujarat High Court talked about how rule 89(5) should be structured. The Supreme Court of India, in this case, made the remarks that this practice is wrong and the High Court cannot comment or interfere in such matters.
Businesses now need to understand that rules have to be followed as per what is written in the law. The Court will not/cannot protect businesses in cases where their actions are against the rules mentioned in different taxation rules.
2. The Court commented in the matter of Excellency Service case in the Bombay High Court that the Business and the Department must try to solve the concerns at their level before reaching the High Court. However, in this case, the Officer had given the time for hearing on very short notice. The Court commented that the Department must give due time to the business and give them enough time to gather and present the documents that the Department wants from the business.
3. The comments of the Rajasthan High Court in the case of Maruti Casting were clear, which stated that it is the duty of the business to make sure all the documents must be present in the right format at all times at the place of business. The data in every column of the maintained registers should be as per proper formats. This means that proper record of stock, stock register, returns, bills and other documents must be present as per the right format at all times at the office of every business.

No RCM liability on used/scrap vehicle purchased from unregistered dealers by registered dealer.
Observations and final ruling by AAR vide Order No. GUJ GAAR/R/18/2021 dated 30.Jun.2021: The AAR concluded that there is no RCM liability on applicant, for goods received from unregistered dealers. The applicant concluded that they are exempt from paying GST on RCM basis when supply of goods is from unregistered persons vide Notification no. 07/2019-Central Tax(Rate) dated 29.Mar.2019 as the scraps are covered under specific category of goods and services and there are no limits too for the exemption. Further if the applicant receives used/scrap vehicles from Central/State government, Union territory or local authority, the applicant (recipient herein) will pay GST on RCM basis vide notification no. 36/2017-CT(R ) dated 13.Oct.2017

The DGFT vide Trade Notice No. 26/2021-22 dated November 27, 2021 has issued advisory w.r.t. safe custody of digital tokens, documents, scrips etc. Members of trade and industry are aware that various digital initiatives have been initiated by this Directorate recently with an objective to provide transparent, paperless, contactless, online services to the Trade Community. Under the revamped online systems, an exporter/importer’s identity is established by a Digital Signature Certificate (DSC) Issued by Controller of Certifying Authorities (CCA) licensed Certifying Agencies (CAs) or through Aadhaar based e-sign. In this context, Members of Trade & Industry are requested to take note of the following best practices to ensure safe and secure online transactions :
i. Always use a strong password. The longer and more complex your password, the more difficult it is to crack. Shorter and simpler passwords take less time and resources for hackers to compromise.
ii. Do not share your sensitive personal information (like usernames and passwords, OTP, PIN).
iii. Exporters are advised to check, from time to time, that duty credit scrips are accounted for and reflected in their online module, if such scrips have not been transferred/utilized by them.
vii. Make sure you open any attachment or click on any link from an email id only if you know the sender and are expecting an email from them.
viii. Public WIFI is not as secure as the Office WIFI or your personal WIFI at home. It is advised not to access your Official/ Personal Email ID or to login to the DGFT Website using public WIFI.
ix. Watch for email senders that use suspicious or misleading domain names.
x. Inspect URLs carefully to make sure they’re legitimate and not imposter sites.
xi. Do not try to open any shared document that you’re not expecting to receive.

The South India Hosiery Manufacturers Association (Sihma) urged Centre to roll back the revised GST rate on apparel items. In a letter to the Union finance minister, Sihma members said the move would increase cost of finished products, which will subsequently impact sales.

GST on Notice Pay, Group Insurance, Phone Bill: AAR. War for talent in India is intensifying in Several sunrise industries. And so are the problems with something much more mundane- the tax treatment on money paid in lieu of serving the customary notice period. GST will be applicable on employee recoveries such as notice pay, group insurance and telephone bill, an advance authority of advance ruling (AAR) has said. The Ruling said that as in the case of notice pay, the company is actually “Providing a Service” to an employee and hence GST should be applied on that. Under the GST framework, tax is levied on any activity that is viewed as supply of service- whether directly or deemed supply. Ruling Said that as in the case of notice pay, the company is actually “Providing a Service” This tax complication comes at a time when top companies are complaining of high attrition. The ruling in the case of Bharat Oman refineries is set to result in scrutiny by the tax department in the coming months as there’s already confusion over the issue.

Senior bureaucrat Vivek Johri has been appointed as the chairman of the Central Board of Indirect Taxes and Customs (CBIC), an order issued on Sunday by the personnel ministry said.

29/11/2021
In Kewal Krishan v. Rajesh Kumar & Ors. Etc. [Civil Appeal Nos. 6989-6992 of 2021 arising out of S.L.P. (C) Nos. 2033-2036 of 2016 dated November 22, 2021] Hon’ble Supreme Court held that the payment of price is an essential part of a sale covered by Section 54 of the Transfer of Property Act, 1882 (“the Transfer of Property Act”). If a sale deed in respect of an immovable property is executed without payment of price and if it does not provide for the payment of price at a future date, it is not a sale at all in the eyes of law. Therefore, such a sale will not effect the transfer of the immovable property.

The government has approved strategic sale of Central Electronics Ltd (CEL) to Delhi-based Nandal Finance and Leasing Pvt Ltd for Rs.210 crore. “An Alternative Mechanisms (AM) comprising of transport minister Nitin Jairam Gadkari, finance minister Nirmala Sitharaman and Jitender Singh, Union minister of state (Independent charge) Ministry of Science and Technology, has approved the highest price bid of M/S Nandal Finance and Leasing Pvt Ltd for sale of 100% equity shareholding of the government in Central Electronics Ltd (CEL),” a finance ministry statement said Monday.

Finance minister Nirmala Sitharaman said on Monday that the central government has no plan to accept Bitcoin as legal tender in the country. Answering to whether the government is aware that Bitcoin transaction is silently blooming in India in the recent years, Sitharaman said that the Centre does not collect any data on Bitcoin transaction in India.
India has the highest number of cryptocurrency holders in the world at 10.07 crore, according to broker discovery and comparison platform BrokerChooser. With 2.74 crore crypto-owners US came at the second position followed by Russia (1.74 crore) and Nigeria (1.30 crore).

The Government of The National Capital Territory of Delhi has issued Delhi Shops and Establishments (Amendment) Rules, 2021 dtd 15.11.2021 to further amend the Delhi Shops and Establishments Rules, 1954. The said rules are amended regarding the following, namely:
1. Registration of an Establishment is to be done online,
2. Manner of Registration will be generated online in Form C,
3. Form and Manner of notifying change in registration is to be notified online only,
4. Schedule I, II for Registration Fees and fees for change in registration are deleted,
5. Form H and I are deleted and a new Form G is substituted for Register of wages/Deductions/Overtime/Advances.

The Central Board of Direct Taxes (CBDT) has issued a circular dtd 25.11.2021 regarding certain provisions under Income Tax Act, 1961 as follows:
1. E-auction services carried out through electronic portal
2. Adjustment of various state levies and taxes other than GST
3. Applicability of Deduction of tax at source on payment of certain sum for purchase of goods in cases where exemption has been provided for Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc
4. Applicability of Deduction of tax at source on payment of certain sum for purchase of goods in case of department of Government not being a public sector undertaking or corporation.

The Ministry of Finance notifies dtd 23.11.2021 effective date for Senior Citizens Welfare Fund from 1st April, 2021 to 31st March, 2022 and the interest rate shall be 3.35%.

28/11/2021

Auto-rickshaw services provided through e-commerce platforms would attract 5 per cent GST from January 1, 2022. The Revenue Department under the Finance Ministry through a notification dated November 18 withdrew the GST exemption available to auto rickshaws providing passenger transport services through e-commerce platforms. While the passenger transport services provided by auto rickshaw drivers through offline/ manual mode would continue to be exempt, such services when provided through any e-commerce platform would become taxable at 5 per cent effective January 1, 2022.

A revamped & enhanced version of GSTR-1/IFF is being made available on the GST Portal.
1. GSTR 1 Dashboard is Reorganized:
GSTR-1/IFF has been grouped in two sections namely ADD RECORD DETAILS (For adding new details) and AMEND RECORD DETAILS (amending previously filed details)
2. Table/Tile Document Counts:
The document count for each tile (table) has been made more informative with color coding. The status of uploaded (Saved, Pending, Errored) documents with their count will also be made available.
3. Enhancement in B2B and CDNR table/tile:
Taxpayers will now be able to view a new record details table with the details of the recipient -wise count of records.
4. Records per page feature:
Taxpayers can customized number of records to be viewed on per page. By default, the Records per page will be set at 10 records per page and can be increased to view 100 records per page.
5. Changes in Steps to file GSTR-1/IFF:
In case new records have been added, the SUBMIT and PREVIEW buttons will be disabled till a new summary has been generated after updating records. This check will ensure that filing of GSTR-1/IFF always happens with the correct & updated summary.

ETFs Go Into the Metaverse
The day that Mark Zuckerberg announced he was changing the name of Facebook to Meta Platforms, the Roundhill Ball Metaverse ETF ($META) found a new trajectory. Since then, the ETF—which holds companies such as Nvidia, Roblox, Unity, Microsoft, and, well, Meta—has seen assets grow 6-fold and volume jump 50-fold. Much like $HACK, which also benefited from being the right idea at the right time, META is fast on its way to becoming a billion-dollar ETF—mostly because of a big news event. Eric and Joel explore the metaverse—and the investing opportunities it could bring—with Matthew Ball, managing partner of EphyllionCo and the brain behind the ETF; Matt Kanterman, who covers gaming as a senior analyst for Bloomberg Intelligence; and Rebecca Sin, an ETF analyst for Bloomberg Intelligence. The group discusses how to think about the metaverse, what's at stake for companies, why investors are so excited, AR and VR applications, the size of the virtual economy, Robux vs crypto, and more.

27/11/2021
New Guidelines under sub-section (4) of section 194-0, sub-section (3) of section 194Q and section 206C of the Income-tax Act, 1961 (Circular No. 20 of 2021)
I. The provisions of section 194-0 of the Act shall not apply in relation to e-auction activities carried out bye-auctioneers if:
(a) The e-auctioneer conducts e-auction services for its clients in its electronic p0l1al and is responsible for the price discovery only which is reported to the client.
(b) The price so discovered through e-auction process is not necessarily the price at which the transaction takes place and it is up to the discretion of the client to accept the price or to directly negotiate with the counter-party.
(c) The transaction of purchase/sale takes place directly between the buyer and the seller party outside the electronic portal maintained by the e-auctioneer and price discovery only acts as the starting point for negotiation and conclusion of purchase/sale.
(d) The e-auctioneer is not responsible for facilitating the purchase and sale of goods for which e- auction was conducted on its electronic portalexcept to the extent ofprice discovery.
(e) Payments for the transactions are carried out directly between the buyer and the seller outside the electronic portal and the e-auctioneer does not have any information about the quantum and the schedule of payment which is decided mutually by the client and the counterparty.
(f) For payment made to e-auctioneer for providing e-auction services, the client deducts tax under the relevant provisions of the Act other than section 194-0 of the Act.

II. In case of purchase of goods which are not covered within the purview of GST, when tax is deducted at the time of credit of amount in the account of seller and in terms of the agreement or contract between the buyer and the seller, the component of VAT/Sales tax/Excise duty/CST, as the case may be, has been indicated separately in the invoice, then the tax is to be deducted under section 194Q of the Act on the amount credited without including such VAT/Excise duty/Sales tax/CST, as the case may be. However, if the tax is deducted on payment basis, if it is earlier than the credit, the tax is to be deducted on the whole amount as it will not be possible to identify the payment with VAT/Excise duty/Sales tax/CST component to be invoiced in the future.

III. Since by virtue of sub-section ( IA) of section 206C of the Act, the tax is not required to be collected in cases where the goods are used in manufacturing, processing or producing articles or things or for the purposes of generation of power and not for trading purposes, in such cases, the provisions of section 194Q of the Act will apply and the buyer shall be liable to deduct tax under the said section if the conditions specified therein are fulfilled.

IV. For the purposes of section 194Q, Central Government or State Government shall not be considered as 'seller' and no tax is to be deducted by the buyer, in cases where any Department of Central or State Government are seller of goods.

CBDT notifies New Form 52A to be furnished by Producers of Cinematograph Films:
CBDT has notified revised FORM NO. 52A
1. Statement to be furnished to the Assessing Officer under section 285B of the Income-tax Act, 1961, in respect of production of a cinematograph film under Rule rule 121A of Income-tax Rules, 1962 vide Notification No. 132/2021-Income Tax Dated, 23rd November, 2021.
2. The Form No. 52A consists of the Name and address of the producer, Relevant previous year, Details of the film, Date on which the production of the film was started, If the production of the film has been completed, the date of completion, Financial year to which the statement relates, Details of payments of over Rs. 50,000 in the aggregate made by the producer or due from him to each person engaged in the production of the film as an employee or otherwise including Details of the person to whom payment has been made or is due and verification.

The Income Tax Department carried out a search and seizure operation on two real estate groups based in Delhi-NCR on 17.11.2021. These groups are engaged in the construction of commercial and residential projects. During the course of the search action, various incriminating evidences in the form of digital and physical data have been found and seized. On preliminary analysis of such data, it has been found that these groups are receiving part of the sale consideration in cash against the sale of flats and such cash is not recorded in the books of accounts. Thus, there is a large scale tax evasion, and due tax on such income has not been offered. The search team has gathered evidence indicating that unaccounted income so earned is routed into the business through non-descript and non-functional shell entities run by professional entry providers or employees/associates of the group working as directors. One of the groups has also been found to be using a network of charitable organizations engaged in educational activities, purportedly for the purpose of tax evasion and financing its real estate business. Evidence has also been found showing that the books of accounts maintained and produced before tax authorities are doctored by ‘reversal of payables’, ‘diminution of investment’ & ‘bad debts written- off’. Instances of non-genuine claim of expenses by way of bogus purchases by connected parties from non-existent suppliers have also come to notice. Evidences of cash payments made to various parties towards securing land deals and other contracts, and making various unaccounted expenses in real estate activities have been unearthed. During the search operations, unaccounted cash of Rs. 10 crore has also been seized. The evidence gathered so far, prima facie, indicates that undisclosed income could be to the tune of about Rs. 400 crore.

India and United States have agreed that the same terms that apply under the October 21 Joint Statement shall apply between the United States and India with respect to India’s charge of 2% equalisation levy on e-commerce supply of services and the United States’ trade action regarding the said Equalisation Levy. However, the interim period that will be applicable will be from 1st April 2022 till implementation of Pillar One or 31st March 2024, whichever is earlier. India and United States will remain in close contact to ensure that there is a common understanding of the respective commitments and endeavor to resolve any further differences of views on this matter through constructive dialogue. The final terms of the Agreement shall be finalised by 1st February 2022.

26/11/2021

Crypto will not be considered to be legal in the any form in India: TV Somanathan Finance Secy on Cryptocurrency in India.

The Haryana realty regulator has recently said that a promoter cannot exonerate himself from paying assured returns to homebuyers on the ground that they are only investors but not allottees. The Haryana Real Estate Regulatory Authority (HRERA) passed the order in the case of Madhushree Khaitan vs Vatika Limited in favour of homebuyers for failure of payment of assured returns by the builder. HRERA directed Vatika to pay the amount of assured returns as agreed between the two parties and said that the builder cannot avoid paying the assured returns either by taking recourse under the Banning of Unregulated Deposit Act, 2019 (BUDS Act) that says that such amount is banned, or by rewriting its contractual obligations.

Insolvency and Bankruptcy Board has issued a circular No. IBBI/LIQ/45/2021, clarifying whether the liquidator has to obtain NOC from the Income Tax Department:
1. Regulation 14 of the IBBI (Voluntary Liquidation Process) Regulations, 2017 (the Regulations) mandates the liquidator to make the public announcement within five days of his appointment, calling for submission of claims by stakeholders within thirty days from the liquidation commencement date. The Regulations also obligate all the financial creditors, operational creditors including government, and other stakeholders to submit their claims within the specified period. If the claims are not submitted in time, the corporate person may get dissolved without dealing with such claims and such claims may consequently get extinguished.
2. It has been noticed that even after providing opportunity for filing of claims, the liquidators seek 'No Objection Certificate' (NOC) or 'No Dues Certificate' (NDC) from the Income Tax Department despite the fact that the Code or the Regulations do not envisage seeking such NOC/NDC.
3. In this regard, section 178 of the Income-tax Act, 1961 which, inter alia, obligates the liquidator to fulfil certain income tax related requirements, explicitly states that the provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force except the provisions of the Code.
4. The process of applying and obtaining of such NOC/NDC from the Income Tax Department consumes substantial time and thus militates against the express provisions of the Code, and also defeats the objective of time-bound completion of process under the Code.
5. Therefore, it is hereby clarified that as per the provisions of the Code and the Regulations read with Section 178 of the Income-tax Act, 1961, an Insolvency Professional handling voluntary liquidation process is not required to seek any NOC/NDC from the Income Tax Department as part of compliance in the said process.

25/11/2021
The Reserve Bank of India (RBI) recently relaxed requirements for opening current accounts with a banking system exposure of less than Rs 5 crore, providing assistance to small businesses. The Reserve Bank of India has requested banks to obtain an undertaking from borrowers that they will notify lenders when credit facilities are used up to Rs 5 crore. Borrowers with a banking system exposure of Rs 5 crore or more can open current accounts with any of the banks with which it has a CC/OD arrangement. Such banks must hold at least 10% of the banking system’s exposure to that borrower. The RBI also stated that other lending banks may only open collection accounts. This is possible if funds placed in such accounts are transferred to the CC/OD account within two working days of receiving them. When no lender has a 10% or more exposure to the borrower, the bank with the biggest exposure may open current accounts. Current accounts cannot be opened by non-lending banks. Borrowers who do not use the CC/OD service will keep their current accounts open in accordance with the current guidelines.

24/11/2021

The Ministry of Corporate Affairs (MCA) has removed all the Disqualification of Director Identification Number (DINs). As per the Companies Act directors for five years are disqualified, if they are part of a company that defaulted on filing financial statements or annual returns for three years, or has failed to repay the deposits accepted by it or pay interest on it. The disqualification also covers directors of companies that defaulted on redeeming any debentures on the due date or pay interest due on it or pay any dividend declared.

The President Institute of Chartered Accountants of India (ICAI), CA Nihar N. Jambusaria while addressing its Members regarding the latest developments related to the CA Profession informed that the ICAI is in talks with RBI for a hike in Audit Fees which is stagnant for 10 Years. The ICAI President along with the Chairman and Vice-Chairman of the Professional Development Committee met the Governor of RBI, Shakti Kanta Das discuss the matters related to the rise in Audit Fees which is stagnant for the last 10 Years although inflation, cost of conducting audits, and reporting requirements have increased many folds. The RBI Governor has appreciated the need for fee rise and promised quick action.

Union finance minister Nirmala Sitharaman on Monday announced discounted rates of GST on the home-made of Kashmir products, like carved wood products, art ware, decorative articles of wood barrel, papier mache, handmade carpets, textiles, and floor coverings etc. On a one-day trip to Kashmir, Sitharaman while interacting with the officials of Central Board of Indirect Taxes & Customs in Srinagar said that the funds for development and projects which have been provided to the people of J&K post the abrogation of article 370 have made all aspirations of the people come true.

The panel of state finance ministers looking into GST rate rationalisation will meet on November 27 and finalise its report on rate changes to expand the tax base. Sources said the Fitment committee, comprising tax officers from states and the centre, has made many “sweeping” recommendations regarding slab and rate changes and taking items out of the exemption list.

Amount received by the NGO from Central and/or State Government towards some charitable activities is not exempt from GST. The Maharashtra Bench of AAR in the case of Jaishankar Gramin VA Adivasi Vikas sanstha vide order dated 10th November,2021 has held that the amount received by the said NGO from Central and/or State Government towards some charitable activities which are not exempted from the purview of GST. It has held that as per the relevant notification are liable for GST @ 18% since the services of Advertising are given when the name plate of the Donor is affixed in lieu of the donation. The AAR / Judgement is not very clear as far as the factsof the present case is concerned but the ration spelt out may open Pandora’s box for the charitable entities.

23/11/2021
The government on Tuesday listed 26 bills for the upcoming session of Parliament beginning November 29, including the much-talked-about bill to regulate and restrict cryptocurrency in the country. The 'Cryptocurrency and Regulation of Official Digital Currency' bill will set up a framework for the Reserve Bank of India to issue an official digital currency and outlaw all private cryptocurrencies like Bitcoin and Ethereum. The central bank has voiced "serious concerns" about private cryptocurrencies and is set to launch its own digital currency by December. The government intends to allow an official digital currency by the RBI instead.

All crypto prices crashed by 15 per cent and more, hours after the government announced that it will introduce the cryptocurrency bill in the Parliament's winter session, which seeks to prohibit all private cryptocurrencies in the country, with a few exceptions.
Also, the government will introduce the Banking Laws (Amendment) Bill 2021 - which aims to privatise two public sector banks, in the forthcoming Winter session of Parliament, which will commence from November 29.

As per the recently notified Haryana State Employment of Local Candidates Act, 2020 (effective from 15th January, 2022), it would be mandatory for all employers in Haryana to register all their employees drawing gross monthly salary or wages not more than Rs. 30,000/- with the Labour Department, Haryana and hire 75 percent of their workforce (drawing less then Rs. 30,000 per month) as local candidates. Violation of any provision of this Act will be a punishable offence.

GLOBAL financial crash fears continue to remain high over the uncertain future of Chinese company, the Evergrande Group. If the company were to fail to repay its vast $305billion (£221billion) debt, there are fears it could spark the collapse of the huge property market in China. While it is unlikely the company itself will be bailed out by the Chinese Communist Party (CCP), if the property market in China does collapse, it could spark "major problems" for the economy in the state, an expert has claimed. The property market is essential for China's GDP and is valued at $55trillion (£40trillion) - four times larger than the country's GDP. The company also faces multiple payments stretching into 2022. On December 28, 2021, Evergande faces a $255.2million (£189million) payment and a second £117.5million (£87million) sum on January 22, 2022. If such a large company were to go bust, it could spark shockwaves throughout the world's economic system. If lenders could no longer rely on organisations to repay debts, it may cause them to stop loaning money thus creating a credit crunch similar to what was seen in 2008.
Bankruptcy proceedings have been issued in Germany against Evergrande, a Chinese real estate company which is now $300 billion in debt. German creditor DMSA is preparing bankruptcy proceedings.

22/11/2021

Important Citations on Gst Registrations
1. The right to carry on a business includes a right to close it anytime the owner likes. – Supreme Court in Hathising Mfg. Co. vs Union of India, AIR 1960 SC 923.
2. Sales Tax Registration (now GST Registration) is a regulatory measure and denial of registration, in almost all cases, will lead to a situation that a person is prevented from attending a Profession or Trade. – Kerala High Court in case of P.Y. Mustaffa, Kanokom Traders, Erattupetta vs Addl. Sales Tax Officer, Pala & Anr., [(2002) 10 KTR 192 (Ker.)]
3. Due to extra-ordinary compelling circumstances of Covid-19 and in following the protocol temporarily, they were not carrying his business from the from officially registered premises and were carrying business in question from home — Calcutta High Court in case of International Value Retail Private Limited vs UOI, [2021-VIL-743-CAL] / [2021 (10) TMI 312].
4. Whether GST Registration can be cancelled on Hyper-Technical ground or not this was matter before Calcutta High Court in case of M/s. CIGFIL Retail Pvt. Ltd. vs Union of India, [2021-VIL-800-CAL] / [2021 (11) TMI 438].
5. Whether business can be carried from Residential Unit was matter before West Bengal Tax Tribunal in case of Puspa Lohia vs Sales Tax Officer, Durgapur Range [(2009) 21 VST (Tri.) (WB) / (2007) 9 TMI 588 (WBTT)] / (2009) 12 STM 702 (WBTT)]
6. Suspension of registration under GST is worse than cancellation. Suspension brings the entire business to standstill and is worse than cancellation. Against cancellation, an assessee can take legal remedies but against suspension pending an enquiry, even if the assessee chooses to take remedies, the authorities or the Court(s) the authorities and Courts would normally show reluctance.” – Rajasthan High Court in Avon Udhyog vs. State of Rajasthan [2021] 128 taxmann.com 122 (Rajasthan)

Edge of CBDC over private digital currencies:
1. More than four-fifths of the world’s central banks are engaged in pilots or other central bank digital currency (CBDC) activities as per the results of the third BIS survey on central bank digital currency.
2. Many CBDC implementations will likely not use any sort of distributed ledger such as a blockchain though a few countries notably China is exploring the usage of blockchain into CBDC.
3. CBDC is a high-security digital instrument; like paper bank notes, it is a means of payment, a unit of account, and a store of value. And like paper currency, each unit is uniquely identifiable to prevent counterfeit.
4. CBDC makes it feasible for a central bank to keep track of the exact location of every unit of the currency (assuming the more probable centralized, database form); tracking can be extended to cash by requiring that the banknote serial numbers used in each transaction be reported to the central bank.
5. Central bank can provide an undisputed monetary anchor in the case of CBDC and so people would not need to monitor the soundness of private issuers in order to assess the value of each form of private money.

FY22 tax collection might exceed the targets:
1. The net direct tax collection till October is now closing in on Rs 6 lakh crores net of refunds in the current fiscal year.
2. The government had budgeted a 9.5 per cent growth in taxes which would amount to Rs 11 lakh crores in direct taxes including Rs 5.47 lakh crores from corporate tax and Rs 5.61 lakh crores from income tax.
3. The collections till October are indicative that we may exceed the budgeted direct tax collections.
4. Revenue Secretary Tarun Bajaj said that the relief in excise duty on petrol and diesel and customs duty on edible oil will cost the exchequer about Rs 80,000 crore this financial year, and the revenue department will start calculating the tax mop up position vis-a-vis budget estimates for this fiscal after the December advance tax number.

CBIC has issued circular in relation to certain refund related issues and applicability of Dynamic QR Code as under:
Circular 166/22/2021 – GST dated 17.11.2021 Refund of excess balance in Electronic Cash Ledger (including TDS/TCS credit) can be claimed without any limitation period, without any certification/ declaration.
Circular 165/21/2021 – GST dated 17.11.2021
It clarifies that Dynamic QR Code invoicing is not applicable in case of services provided to a person located outside India but the place of supply is in India (thus not export) and payment is received in forex or RBI modes.

21/11/2021
The CGST Rules, 2017 provides that in case of Stock transfer between two registered locations of same person, the taxable value for the purpose of GST will be simply considered as the value at which the invoice has been raised. This is irrespective of the fact that whether the invoice has been made at the open market price or not.

The TDS rate on ‘Director sitting fees’ is 10% under Section 194J. There is no triggering limit in this case (as INR 30,000 is applicable in other cases given in Section 194J) and the TDS needs to be deducted even if the amount is less than INR 30,000.

CBDT has informed that it has issued refunds of over Rs. 1,19,093 crores between 01.04.2021 to 15.11.2021 including refunds of Rs. 13,141 crores for AY 2021-22.

Key Takeaways of Union of India Vs Bharti Airtel Ltd. & Ors (Supreme Court of India) [CIVIL APPEAL NO. OF 2021 (ARISING OUT OF S.L.P. (C) NO. 8654 OF 2020) dated October 28, 2021]
1. The SC’s observation that the primary source of self-assessment should be the books of accounts and records is not completely incorrect. This is how the liability and the ITC claim were determined in the previous regimes. There were no inward statements to intimate an assessee the ITC that he/she should claim.
2. The introduction of GSTR 2 or the advent of GSTR 2A has been a differentiator as far as the GST regime is concerned. 3. While the SC has invalidated the reliance of the taxpayer on GSTR-2A, the Government has introduced Section 16(2)(aa) which legally disallows any credit availed in excess of what is populated in GSTR 2A/2B.
4. While the judiciary is cornering with the revenue, the revenue itself is contradicting the judiciary.
5. The question which props is if GSTR-2A cannot be a primary source of determining the ITC, what is it exactly meant for. Because the ITC can be determined basis the books of accounts, therefore, GSTR-2A becomes a redundant statement.
6. If it’s considered to be a secondary source or a redundant statement, then what’s the validity or basis of multiple notices being issued against itc mismatch as per gst returns vs itc 2A/2B.
7. The dealers and the tax payers feel trapped in this vicious circle of how to claim itc - whether as per books of accounts or as per gst generated statements 2A or 2B leading to blockage of working capital and investing valuable time and resources in such reconciliations only.

Meta Tiles Pvt. Ltd. has filed a writ petition vide W.P. (L) No: 12338 of 2021 before the Hon’ble Bombay High Court challenging the constitutional validity and vires of section 16(4) of the Central GST Act and Maharashtra GST Act. The petition is also praying for declaration of the conditions as prescribed in Section 16(4) of the Act as merely procedural in nature which cannot override substantive conditions as mandated under Section 16(1) and Section 16(2) of the Act. As per Section 16(4) a taxpayer is not entitled to take input tax credit in respect of any invoice after the due date of furnishing of the return for the month of September following the end of financial year to which such invoice pertains; or furnishing of the relevant annual return, whichever is earlier.

20/11/2021

The DGFT issued Trade Notice 25/2021-22 dated November 19, 2021 w.r.t. all Importer-Exporter Codes (“IECs”) which have not been updated after January 01, 2014 shall be de-activated with effect from December 06, 2021. Reference is drawn to Notification No. 58/2015-2020 dated February 12, 2021, 11/2015- 2020 dated July 01, 2021, 16/2015-2020 dated August 09, 2021 and Trade Notice 18/2021-2022 dated September 20, 2021 whereby it was mandated by DGFT to all IEC holders to ensure that details in their IEC is updated electronically every year during April-June period (for which no user charges will be borne by the IEC holder). Based on representations received from the IEC holders who had not updated their IECs, the period of updation was extended upto July 31, 2021 and subsequently to August 31, 2021.

Gist of CBIC Notifications issued on 18th November 2021:
1. The Central Board of Indirect Taxes and Customs notified the hike in GST rate from 5% to 12% on Fabrics, Apparel, and Footwear w.e.f. January 2022.
2. The objective behind the proposed increase is to correct the problem of Inverted Duty Structure faced by a small segment of the textile value chain as discussed in the 45th meeting of the Goods and Service Tax (GST) Council. The GST rate for Woven fabrics, Sewing thread of man-made filaments, whether or not put up for retail sale, Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex, Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex, Knotted netting of twine, cordage or rope; made up of fishing nets and other made up nets, of textile materials, Pile fabrics, including ?long pile? fabrics and terry fabrics, knitted or crocheted, Blankets and travelling rugs, Bed linen, table linen, toilet linen and kitchen linen, Curtains (including drapes) and interior blinds; curtain or bed valances, Sacks and bags, of a kind used for the packing of goods, Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or landcraft; camping goods, Sets, consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered tablecloths or serviettes, or similar textile articles, put up in packings for retail sale, etc has been increased from 5% to 12%.
3. Further, the GST rate on Article of Apparel of any value has been increased to 12%, however, earlier the GST Rate was 5% for sale value upto Rs 1000 per piece.
4. For Footwear of any value, the GST rate has been hiked to 12% which was earlier 5% for sale value upto Rs 1000 per pair.
5. The Central Board of Indirect Taxes (CBIC) has notified that 18% GST payable on work Contracts provided by Union territory or local authority w.e.f. January 2022.
6. The serial no. 3 pertains to the construction services and serial number 26 relates to Manufacturing services on physical inputs (goods) owned by others. This notification shall come into force with effect from the 1st day of January, 2022.
7. Job work services w.r.t. dyeing or printing of textile and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) shall be taxable @ 18%.
8. Composite supply of works contract services supplied to Governmental Authority or Government Entity taxable @ 18%.
9. In case of the following categories of services, the tax on intra-State supplies shall be paid by the electronic commerce operator –
(i) services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle, omnibus or any other motor vehicle;
(ii) services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act.
(iii) services by way of house-keeping, such as plumbing, carpentering etc, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act.
(iv) supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.
10. The Notification will come into force with effect from January 1, 2022.

19/11/2021

Austria to Apply Capital Gains Tax to Crypto currency:
1. Austria has announced that it is considering applying the same 27.5% levy to crypto assets it currently uses to tax capital gains from traditional stocks and bonds.
2. The reform provides for the integration of cryptocurrencies into the existing taxation system for income from capital assets.
3. Austria intends to impose the measure as part of a wider tax overhaul to be carried out next year.
4. The tax liability is to come into force on 1 March 2022 and apply to cryptocurrencies purchased after 28 February 2021.
5. Cryptocurrencies acquired prior to 28 February 2021, will not be subject to the new taxation regime but instead treated as "old assets" under the existing tax rules for speculative transactions, meaning that tax is not payable because the one-year speculation period will have already expired.
6. Austria's Federal Ministry of Finance also insisted that the country’s new tax framework will be the first in the EU to encompass bitcoin and the like and ensure fair conditions for investors in different asset classes.
7. Can this legislation in Austria help provide more clarity on taxability of crypto currency in India?

Crypto currency regulatory framework in various countries:
Government is likely to introduce a law governing crypto currency in the winter session of the parliament. But let’s look at cryptocurrency regulations in major economies and groupings:
1. UK:
Under the current system, the Financial Conduct Authority is the body that grants licenses to authorised cryptocurrency-related businesses, which also include crypto-exchanges. These businesses, like all others seeking a license from the FCA, have to comply with a stringent set of rules. These rules are particularly stringent for those companies dealing in crypto futures and options trading.
2. US:
Regulations regarding cryptocurrencies vary across States in the US, but overall the country has been in favour of allowing all cryptocurrency activities. One of the states, New York, launched a framework for licensing cryptocurrency businesses and exchanges, called BitLicense. Under the system, companies looking to transmit, hold, buy or sell cryptocurrencies need to obtain a license from the New York State Department of Financial Services.
3. EU:
EU has looked into setting up a consolidated framework on cryptocurrencies. In September 2020, the European Commission released a draft legislation titled Markets in Crypto-Assets Regulation (MiCA). According to the draft, cryptocurrencies will be treated as regulated financial instruments. The draft law takes cognisance of the different types of crypto-tokens, such as crypto-assets, utility tokens, asset-referenced token, and e-money token and proposes different rules for each.
4. China:
At first it was welcoming of all crypto-related activities, especially mining. It has now become one of the most restricted crypto-markets in the world. In June 2021, it banned the mining of cryptocurrencies. It had banned initial coin offerings (ICOs) in 2017, following which it also ordered crypto-exchanges to close. However, the legislators main grouse was with ICOs and so it has not made it illegal to hold or trade in cryptocurrencies. Chinese government has also shown considerable enthusiasm regarding blockchain technology and has encouraged the growth of blockchain-related start-ups.

18/11/2021
Indian cryptocurrency exchanges collectively spent more than Rs. 50 crores during the recently concluded ICC T20 World Cup. The blitz, dominated by CoinDCX, may have heightened government and regulated government and regulatory concerns over virtual currencies and the commercial that promote them, according to some experts. Data shows that cryptocurrency exchange CoinDCX advertised seven timers per match on every channel during the tournament, spending a total of Rs.40 crores on sponsorship in Star Sports. Rival Coinswitch Kuber focused on Star’s video-streaming service, Disney+Hotster, during the World Cup. The ad spends by other exchanges such as WazirX is Rs. 4-6 crores. The government is likely to approach the Advertising Standards Council of Indian to push for greater disclosures and stricter statutory warnings to accompany ads on virtual currencies or their trading platforms. Legal experts also raised red flags over the ads, worried that these may suggest guaranteed returns or make exaggerated claims. “The new regulation makes celebrities advertising a product liable in the event of a future fraud or litigation. Celebrities advertising cryptocurrencies would be covered under this as well,” said a senior lawyer advising leading crypto exchange.

Global wealth surges as China overtakes US to grab top spot:
1. Global wealth tripled over the last two decades, with China leading the way and overtaking the U.S. for the top spot worldwide.
2. Net worth worldwide rose to $514 trillion in 2020, from $156 trillion in 2000, according to the study.
3. China accounted for almost one-third of the increase. Its wealth skyrocketed to $120 trillion from a mere $7 trillion in 2000, the year before it joined the World Trade Organization, speeding its economic ascent.
4. The U.S., held back by more muted increases in property prices, saw its net worth more than double over the period, to $90 trillion.
5. 68% of global net worth is stored in real estate. The balance is held in such things as infrastructure, machinery and equipment and, to a much lesser extent, so-called intangibles like intellectual property and patents.
Source: report by the research arm of consultants McKinsey & Co

17/11/2021
The Enforcement Directorate (ED) has arrested Lalit Goyal, the vice chairman and managing director of real estate group IREO, in connection with a money laundering prober against him. Goyal has been placed under arrest under the Prevention of Money Laundering Act (PMLA) by the agency in Chandigarh. Goyal was stopped by the immigration authorities last Thursday at the Indira Gandhi International Airport on the basis of a lookout circular issued against him on the request of ED.

Unaccounted income of Rs. 600 crores were detected after the income tax department recently raided two business groups based in Gurgaon, the CBDT said on Monday. The searches were carried out on November 10 on the groups, one engaged in real estate and hospitality, and the other a tools and equipment manufacturing group, the department said. The search action on these groups has led to the detection of estimated unaccounted income to the tune of Rs. 600 crores,” the Central Board of Direct Taxes (CBDT) said. Nearly Rs.3.54 crores in cash and Jewellery worth Rs.5.15 crores were seized while 18 bank lockers have been placed under restraint, the policy-making body for the tax department said.

Education loans from NBFCs do not qualify for tax exemption under Section 80E of the Income Tax Act of India. To avail of the tax exemption, the education loan must be taken from a financial institution that is notified by the Central Board of Direct Taxes (CBDT).

16/11/2021
?Employees avail E-nomination facility available in PF portal login. List of employees who have not availed of it, is available in Employer login also.

A new rule by India tax authorities this year is posing a hurdle to leading foreign investors including sovereign funds and pension funds investing in the country. The tax department has made it mandatory for all non-individual tax filers to mention the PAN number of authorized signatories in the income tax returns along with their signature. Tax experts advising overseas funds said this requirement is impacting the foreign portfolio investors (FPIs) structured as non-corporate trusts and association of persons (AOPs) the most. Trustees and partners of overseas funds, who are foreign nationals, are reluctant to obtain a PAN card since it would make them an Indian taxpayer, they said. There are also data privacy concerns since these foreign nationals would have to provide their personal documents as a part of the Know Your Customer (KYC) requirements.

Maharashtra bench of the GST Authority for Advance Rulings (AAR) has held that recovery of an amount towards top-up of medical insurance and parental insurance premium from employees is not a supply and hence not subject to goods and services tax (GST).

15/11/2021
Companies that were asked to pay additional indirect taxes on certain imports have come under the taxman’s lens again for availing of input tax credit on the additional amount paid earlier as penalties. The Department of Goods and Services Tax (DGST) has started issuing notices to the importers for availing of the tax credit against the additional GST paid. According to the people aware of the matter current regulations allow importers to ascertain valuation of their imports and pay GST and other duties on that. In most cases, importers provide valuation detail through the bill of entry-a legal document that is filed on arrival of the imported goods. The tax department in the past two months initiated an inquiry into the bill of entry and discovered discrepancies in the valuation of many imports. Importers were then asked to pay additional taxes for goods imported in 2018/19 as penalty.

Punjab VAT: No penalty merely for issue of invoice in two consecutive serial numbers. Case Name : Nandrh Sports Industries Vs State of Punjab (VAT Tribunal, Punjab)

RBI withdrew more than 100 redundant circulars following recommendations made by the Regulations Review Authority. The redundant circulars withdrawn relate to certain norms concerning Foreign Investment in India by Foreign Portfolio Investors, RTGS, Know Your Customer (KYC), and Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards

14/11/2021

AIS under Income tax to report bank balances now.
The information is available on Details of bank account other than saving and time deposits opened during the year , as reported in Form 61.
Bank Accounts with balance exceeding Rs. 50,000 at the closing of the financial year (Form 60/61)
The new Form 26AS is an Annual Information Statement or AIS which will provide a complete profile of the taxpayer for a particular year.
Annual Information Statement (AIS) categories:
50 broad categories of Information in AIS summary view are as under:
1. Salary
2. Rent received
3. Dividend
4. Interest from savings bank
5. Interest from deposit
6. Interest from others
7. Interest from income tax refund
8. Rent on plant & machinery
9. Winnings from lottery or crossword puzzle u/s 115BB
10. Winnings from horse race u/s 115BB
11. Receipt of accumulated balance of PF from employer u/s 111
12. Interest from infrastructure debt fund u/s 115A(1)(a)(iia)
13. Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa)
14. Interest on bonds and government securities
15. Income in respect of units of non-resident u/s 115A(1)(a)(iiab)
16. Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b)
17. Income and long-term capital gain from foreign currency bonds or shares of Indian companies’ u/s 115AC
18. Income of foreign institutional investors from securities u/s 115AD(1)(i)
19. Insurance commission
20. Receipts from life insurance policy
21. Withdrawal of deposits under national savings scheme
22. Receipt of commission etc. on sale of lottery tickets
23. Income from investment in securitization trust
24. Income on account of repurchase of units by MF/UTI
25. Interest or dividend or other sums payable to government
26. Sale of land or building
27. Receipts for transfer of immovable property
28. Sale of vehicle
29. Sale of securities and units of mutual fund
30. Off market debit transactions
31. Off market credit transactions
32. Business receipts
33. Business expenses
34. Rent payment
35. Miscellaneous payment
36. Cash deposits
37. Cash withdrawals
38. Cash payments
39. Outward foreign remittance/purchase of foreign currency
40. Receipt of foreign remittance
41. Payment to non-resident sportsmen or sports association u/s 115BBA
42. Foreign travel
43. Purchase of immovable property
44. Purchase of vehicle
45. Purchase of time deposits
46. Purchase of securities and units of mutual funds
47. Credit/Debit card
48. Balance in account
49. Income distributed by business trust
50. Income distributed by investment fund

Two new initiatives of RBI:
A. Retail Direct Scheme:
1. The RBI Retail Direct Scheme will enable retail investors to participate into G-secs across various tenors with flexible investment horizons and with the ability to get regular cash flows through risk-free coupons.
2. The scheme is aimed at enhancing access to the government securities market for retail investors. It offers retail investors a new avenue for directly investing in the securities issued by the centre and state governments.

B. One- Ombudsman scheme:
1. One-Ombudsman scheme centralizes grievance redressal and focuses on preventing financial crime and catching cyber fraud through artificial intelligence promises to encourage investor trust.
2. You will no longer have to chase different entities regulated by RBI; you will now have a single point of reference to file complaints, submit documents, track the status of your complaints and receive feedback.
3. A Centralised Receipt and Processing Centre (CRPC) has been set up for centralized handling of all complaint receipts and initial processing and moving towards a ‘One Nation – One Jurisdiction’ approach.

13/11/2021
Filing of MGT-14 in case of Private Companies:
1. Special Resolutions passed in Annual General Meeting
and Extra-Ordinary General Meetings.
2. Board Resolutions passed for Appointment, Re- Appointment, Renewal of Appointment or Change in terms of Managing Director;
3. Resolution for Voluntary Winding up passed by the Company u/s 59 of IBC, 2016.
4. Note: The filing of Board Resolutions other than above is completely exempt in case of Private Companies.

TDS ON RENT U/S 194-IB:
1. Section 194-IB is applicable ONLY in case of Individuals
and HUFs whether or not in business.
2. Section 194-IB is applicable on rent payments of both
residential as well as commercial property.
3. The TDS under this Section is required to be deducted in
case the rent exceeds INR 50,000 per month.
4. In case of more than one landlord (i.e. joint property owners), the limit of Rs. 50,000 per month is to be seen owner wise and not property-wise.
5. The Rate of TDS required to be deducted under this Section is 5% of the rental amount.
6. The deductor (i.e. tenant) is not required to apply for TAN for deduction of TDS under this Section. The deduction and deposit of TDS under this Section is PAN based.
7. A Consolidated Challan cum Statement is required to be filed in Form 26QC upto the end of the subsequent month.
8. The payment of TDS under this Section is required to be made at the time of filing Form 26QC only.
9. Form 16C needs to be generated as TDS Certificate and provided to the owner of the property (i.e. deductee) within 15 days from the due date of filing Form 26QC.

The excise duty on petrol and diesel is cut by Rs. 5 and Rs. 10 per litre respectively. Here is the excise duty data for pre-COVID, COVID and
Current levels:
Pre-COVID
Petrol (Duty/ litre) 19.98
Diesel (Duty/ litre) 15.83
(Start of 2020) During COVID** (Shoot Up)
Petrol 32.98 (Up Rs. 13)
Diesel 31.83 (Up Rs. 16)
Current levels (After reduction)
Petrol 27.98 (Down Rs. 5)
Diesel 21.83 (Down Rs. 10)
Note: The base rates of crude oil in international market went down drastically which Govt. has cushioned by increasing Excise Duty. Now, post reduction of duty as well, the excise duty on petrol and diesel is Rs. 8 and Rs. 6 respectively more from Pre-COVID levels.

Five years after demonetisation, SC still to set up a bench to hear the petitions challenging it
In December 2016, the court had said the cases would be referred to a five-judge bench. It took less than 24 hours for the first set of petitions to be filed against the Modi government’s demonetisation decision. Eight weeks later, at least 41 petitions had been filed in courts across the country. But five years later, nothing has happened in the petitions. Even the Supreme Court bench that was supposed to hear the matter has not been formed.

12/11/2021

Government officials have invited top crypto stakeholders for a meeting. Several crypto-based companies including CoinSwitch Kuber, CoinDCX, WazirX, and Crypto Assets Council (BACC) among others will be part of the meeting. The Parliamentary Standing Committee on Finance will be serving as host for the conference that is slated to be held on November 15. An official notice informing concerned parties about this meeting has been released by the Lok Sabha Secretariat. Hearing of views of Associations/ Industry experts on the subject ‘CryptoFinance: Opportunities and Challenges',” has been listed as the agenda of this meeting. As per a Chainalysis study, India ranks second on the Global Crypto Adoption Index.

US is proposing a capital gains tax on unrealised profit on shares:
1. Biden administration is now proposing an unrealized capital gains tax from stocks and bonds.
2. The new unrealized capital gains tax would levy annual taxes on assets while they still have not been sold.
3. So if a stock goes from $100 to $150 apiece in a year but is not sold, a tax on that $50 a share may still be payable on unrealised profit.
4. The impacted assets include stocks, bonds, real estate, and art. It would be applicable to inherited assets too!!
5. The tax would apply to people who make more than US$ 100 million a year for three years in a row or if one makes US$ 1 billion in annual income.
6. The people impacted by the tax would be able to take a deduction if their assets plunge in value.
7. The Biden administration is looking to raise its tax revenue to fund a $3.5 trillion spending plan over ten years.
8. If US, which is a champion of capitalism is come to proposing this tax, it would seriously jeopardise creation of long term wealth and trust of the investors in government policies.
9. Hopefully it does not become a precedent for the rest of the world.

Nykaa promoter is now richer than promoters of Marico and Asian Paints:
1. Nykaa's CEO and founder, Falguni Nayar's family wealth increased by a whopping $3.5 billion (or around Rs 26,868 crore) in a single day after her profitable internet commerce company made its stellar debut on the bourses.
2. Due to the average 96.3 % surge at which Nykaa's shares traded on the first day of listing, Nayar and her family trust offices -- which still retains over 50 per cent stake in Nykaa -- now have collective worth of over $7.5 billion, or something close to Rs 54, 831 crore. Before the company went public, Nayar and her family's stake was worth nearly $4 billion, or Rs 27, 962 crore.
3. She has now entered the India Bloomberg Billionaires Index, an honour shared by only six other women so far.
4. Nykaa, India's first unicorn startup headed by a woman, was founded by Falguni Nayar in 2012, selling beauty and personal care products via its mobile app and website. It also has a growing high street presence with 80 stores across 40 Indian cities.
5. With a market cap of Rs 1.04 lakh crore, the company is valued more than Dr Reddy’s (a Sensex stock), BPCL, Hero MotoCorp, Britannia etc and close to M&M (Rs 1.14 lakh cr). The current price of over Rs 2,200 gives Nykaa an P/E of more than 1,000. Falguni Nayar is now richer than promoters of Marico (Harsh Mariwala), Asian Paints and several others.

11/11/2021
Crypto Currency Updates:

The Indian government is reportedly trying to “fast track” a modified cryptocurrency bill to be introduced in the winter session of parliament. India’s crypto legislation is expected to take a “middle path” approach to balance all stakeholders’ concerns. Policymakers were recently given a presentation, including by the finance ministry, on cryptocurrency, the publication conveyed. It covered the pros and cons of cryptocurrencies, regulation by other countries, crypto investments by Indians, and the view of the central bank, the Reserve Bank of India (RBI), on crypto. India’s central bank has repeatedly said that it has “serious concerns” about crypto which have been communicated to the government. Another presentation will likely be made on cryptocurrency taxation, the source said, noting that the crypto legislation will go to the Cabinet after legal vetting, which is expected to be in the upcoming winter session of parliament.
The winter session starts on Nov. 29.
In June 2019, the Indian Ministry of Finance published a draft cryptocurrency bill titled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill.” It recommends banning all cryptocurrencies except state-issued ones. In January this year, a similarly titled bill was listed for consideration in Lok Sabha, the lower house of India’s parliament. However, it was not introduced. Since then, several reports suggest that the government is planning to regulate crypto as an asset class in India instead of banning it. In September, the chairman of India’s Parliamentary Standing Committee on Finance explained that cryptocurrency legislation in India will be “distinct and unique.” Meanwhile, the RBI is also working on a central bank digital currency (CBDC), planning to unveil a digital rupee model by year-end. The state-backed digital currency is expected to be launched in phases.

Elon Musk is responsible for a meteoric rise of yet another crypto token. As opposed to the usual dog coins Dogecoin and Shiba Inu, this time, the Tesla CEO managed to boost a completely new token in the crypto market. Named $EDGELON or Lord Edge, the token takes its inspiration from Elon Musk's latest stint on Twitter. Musk changed his name to Lorde Edge on Twitter on Monday, sparking a discussion among the Twitterati on the possible reason of the change of name. While most were busy sharing their thoughts on the topic, some were quick to come up with a way to benefit from the hype. A new cryptocurrency was created with the name Lorde Edge. Of course, Musk is not associated with the token at all.

Central Bank Digital Currency (CBDC) is a concept explored by China, Sweden, countries in the EU, and various other large economies for the last few years. A CBDC is the virtual form of a government’s fiat currency. It is issued and regulated by local authorities. It is run on a digital ledger system, which may or may not be blockchain-based. In India, the Reserve Bank of India (RBI) has been toying with the concept and is looking for a phased implementation for CBDCs in the next year. Money is evolving, and we are now seeing the concept of digital money emerging from the crypto revolution. There is now a fiat version of digital currency, which are sovereign issued and act as legal tender. This is known as CBDC. In fact, crypto has long aspired to act as digital currency, but it is increasingly seen as assets for investment or tokens for performing transactions on blockchains.

10/11/2021
A report estimates that digital currency can save upto $100 billion in transaction costs:
1. A full-scale, multiple central bank digital currency (mCBDC) network could potentially save global corporates up to $100 billion in transaction costs annually, according to a joint research report from Oliver Wyman and JPMorgan.
2. The report estimates that of the nearly $24 trillion in wholesale payments that moved across borders via the correspondent banking network each year, global corporates incur more than $120 billion in total transaction costs; this excludes potential hidden costs in trapped liquidity and delayed settlements.
3. In today’s world, cross-border payments process remains sub-optimal due to multiple intermediaries between the sending and receiving banks, often resulting in high transaction costs, long settlement times, and lack of transparency on the status of the payments.
4. Central banks around the world who are at various stages of CBDC development are considering how to build an infrastructure where systems operate and work together with the necessary controls in place.

Dogecoin rival Shiba Inu emerged as the most-popular cryptocurrency on Twitter, research firm ICO Analytics claims in its recent report. The analysis firm shared data for the month of October that shows Ether, Bitcoin, and Dogecoin occupying the second, third, and fourth positions, respectively, in the Twitter popularity index. In fact, the report says that while SHIB's popularity share on Twitter was at 22 percent, Bitcoin's was significantly lower at 8.1 percent. The development seems to have added another feather to the cap of Shiba Inu meme-coin, which is being marketed as a Dogecoin-killer.

Value of $1,000 invested 1 year ago:
Shiba Inu: $740,259,740
Axie Infinity: $1,082,920
Telcoin: $130,144
Polygon: $127,867
Solana: $119,828
Dogecoin: $95,882
Binance Coin: $21,972
Cardano: $19,527
Polkadot: $11,780
Uniswap: $10,055
Ethereum: $9,798
XRP: $4,527
Bitcoin: $3,885

The corporate-style culture has kicked in the home ministry where all forces and agencies under it have to submit their daily “work to do” to the ministry. The new working style was introduced a few weeks ago after home minister Amit Shah asked all chiefs to submit the details of their work every day to the home minister’s office.
According to top sources, every force, agency and police, including Delhi Police have to submit their upcoming work every day to the ministry.

Climate financing post the COP 26:
1. Coming into the talks, developed countries had for years failed to secure the annual $100 billion promised by rich nations. Supporting resilience, adaptation, and energy transitions in developing countries through climate funding was adopted in COP 15 in 2009 but has now been delayed to 2023.
2. While the public financing is seen to be crucial to unlock much larger private sums, at the summit there were positive signs that private money might be preparing to move on its own.
3. Former Bank of England Governor Mark Carney led the formation of the Glasgow Financial Alliance for Net Zero, bringing together asset managers from around the world (500 global financial services firms) with $130 trillion under management (40% of world’s financial assets) to accept the goal of zeroing-out emissions by 2050.
4. Moreover, countries have also committed to funnel $12 billion for forest-related climate finance between 2021-2025.
5. United States joined Britain, France, Germany and the European Union in a multibillion-dollar partnership to support South Africa finance equal transition from coal. This initiative is valued at $ 8.5 billion over all.

09/11/2021
In a major relief to SBI Cards & Payment Services, the Punjab & Haryana High Court directed the Authority to refund GST worth Rs.108 crores paid under the wrong head. The petitioner is a joint venture with the State Bank of India (SBI) wherein SBI holds 69.39% shares. SBI is a nationalized Bank and one of the largest Public Sector undertakings in India. The petitioner is engaged in the business of issuing credit cards to its customers (cardholder) and is duly registered with the Reserve Bank of India under Section 451 A of the Reserve Bank of India, Act 1934 as a non-deposit taking and non-banking financial company. The petitioner has challenged the order dated 19.02.2021 issued by Additional Commissioner (Appeals) whereby the prayer for a refund of CGST & SGST amounting to Rs. 108 crores approximately wrongly paid on 5.4.2019 (for the disputed period i.e. from April 2018 to December 2018) in excess of the tax due under Section 77 of the Central Goods and Services Tax Act, 2017 has been declined.

Commerce and industry minister Piyush Goyal on Friday said it was time for India to target a five-fold rise in its annual technical textile exports in there years to $10 billion. After decades of policy bias toward cotton-based textile products, the government recently made concerted efforts to boost manufacturing of technical textile items through a Rs 10,683-crore production-linked incentive scheme. Under this, incentives will be provided for five years for incremental production in 40 man-made-fibre (MMF) garments, 14 MMF-based fabrics and 10 technical textile segments. Speaking to representatives of the Indian Technical Textile Association in Delhi, Goyal highlighted that the technical textiles segment has gained momentum in the past 5 years and is currently growing at 8% per annum. “Our aim is to hasten this annual growth to 15-20% range during next 5 years,” Goyal said. At present, the global market for technical textiles is as large as $250 billion, while India’s share in it is just $19 Billion.

08/11/2021
The GST Council is likely to meet by third week of December to decide on the inverted duty structure and also rationalisation of rates.
“The GST council is expected to meet by the third week of December. This time it will have rationalisation of rates on many items which were almost pending over almost two years mainly on account of the pandemic,” a senior finance ministry official said. The official added that the exact date of the meeting will be decided immediately after the report given by the two Group of Ministers constituted during the last GST council meeting over rate rationalisation.

The notice of every meeting of the company shall be given to every member, auditor and director of the Company.
1. A General Meeting may be called by giving clear 21 days’ notice either in writing or through electronic mode.
2. An AGM may be called after giving shorter notice, if it is consented by 95% of the members entitled to vote.
3. Every notice of a meeting shall specify the place, date, day and the hour of the meeting with the statement of the business to be discussed at the meeting.

07/11/2021
CBIC has issued detailed guidelines for disallowing debit of electronic credit ledger under Rule 86A of the CGST Rules, 2017 on dated 02.11.2021.
1. As per the guidelines, the proper officer must form an opinion, only after verification, analysis and careful examination of facts of the case for disallowing the use of ITC from the ledger.
2. The reasons of disallowing are to be on the basis of material evidence available with the officer.

06/11/2021

The Directorate General of GST Intelligence (DGGI) has unearthed tax evasion worth Rs.960 crore in two instances involving clandestine supply of tobacco products and pan masala, according to an official update. In one of the instances, DGGI officials in Jaipur detected Rs.870 crore worth of evasion by clandestine manufacture and supply of tobacco products. The case involved issue of GST invoices to non-existing firms and one person has been arrested so far, Central Board of Indirect Taxes and Customs (CBIC) said in an update on its website. In this case, Rs.10 crore has been recovered by the authorities.

In another instance, DGGI officials in Ahmedabad detected a case of clandestine production and supply of pan masala and scented tobacco products. This case involves alleged tax evasion of about Rs.90 crore, as per the update. In this case Rs.25 crore has been recovered, CBIC said.

The Maharashtra Authority of Advance Ruling (AAR) ruled that the Society claiming GST Exemption of Rs.7500 cannot avail Input Tax Credit (ITC) on input services. The applicant society, Vishal Cooperative Housing Society Limited does not charge contribution towards maintenance more than INR 7.500 per member per month (previous limit of INR 5,000 till 25th January 2018) to any commercial shop or residential unit or Garage. In case of residential flat, the society does not charge GST on amount collected towards government dues (such as property tax, education fund, etc.), claims exemption towards reimbursement (such as maintenance charges, central service charges, etc.) and charges GST on flat specific contributions (such as repair and maintenance fund, contribution towards sinking fund, interest on arrears, parking charges, etc.). In the case of commercial shops and garages, society does not charge GST on the amount collected towards government dues (such as properly lax, education fund, etc.). Held that the provisions of Section 17 (2) will be applicable in the present case in as much as when goods or services or both are used by the applicant partly for effecting taxable supplies under the GST Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies.

05/11/2021
The textile and clothing industry has expressed concerns over the GST Council’s proposed plan to implement the increase in GST rates on fabrics and garments from 5% to 12% from January 1, 2022, arguing that such a move will affect 85% of the industry and affect nearly 80% of the final products to the consumers as the GST rates for garments over Rs 1,000 already stands at 12%. The objective behind the proposed increase is to correct the problem of Inverted Duty Structure faced by a small segment of the textile value chain, which according to the stakeholders, constitutes not more than 15% of the total Industry. They argue that the proposed increase will create greater stress on the working capital requirements of the industry, especially the MSME Sector, which is already struggling to achieve pre-pandemic levels of growth given the ongoing increase in the cost of raw materials such as yarn, fabric, fuel, packaging materials, transportation, etc.

The Supreme Court held that the dishonor of cheques issued as security is an offense under Section 138 of the Negotiable Instruments Act. The counsel for the appellant, Sripati Singh would contend that the respondent taking advantage of the acquaintance with the family of the appellant, had borrowed the amount which was to be repaid and the cheque issued was towards discharge of the said amount. In the said circumstance, when the cheques issued were for discharge of the legally recoverable debt and it had been dishonored, the provisions of Section 138 of the Negotiable Instrument Act would get attracted. Therefore, the complaint filed by the appellant is in accordance with the law. It is his further contention that in the present case since the respondent had gained the confidence of the appellant due to the acquaintance with his daughter and in that circumstance when the amounts which had been taken by him earlier had been repaid so as to gain the confidence and having received substantial amount had at that stage not made arrangement for sufficient funds in the bank despite having issued the cheques to assure payment, the same would amount to the respondent cheating the appellant by design and therefore would attract Section 420 IPC.

The Mumbai bench of the Customs and Service Tax Appellate Tribunal (CESTAT), on Thursday held that the gold found in the foot band worn for medical purposes can’t be treated as “Personal Effects” as per Baggage Rules. The department passed an order against the appellant finding that the gold was found in the foot band worn for medical purpose on both the feet of the appellant, well-hidden/covered with black socks, shoes put over them. This is claimed as having been found on the “person of the appellant? but not found in the baggage, the appellant, therefore, has filed an appeal under Section 129A of the Customs Act, 1962.

The Delhi Government has notified the that 1% Excise Duty for Indian Liquor on Wholesale rate will be applicable from 1st November, 2021. “In exercise of the powers conferred by sub- section (1) of section 81 of the Delhi Excise Act, 2009, the Lt. Governor of the National Capital Territory of Delhi hereby appoints the 1st day of November, 2021 as the date on which the amended provisions of Rule 152 & 153 of the Delhi Excise (Amendment), Rules, 2021 shall come into force and 1st day of January 2022 as the date on which the amended provisions of Rule 41 of the Delhi Excise (Amendment), Rules, 2021 shall come into force,” the notification read. As per Delhi Excise (Amendment), Rules, 2021, in the principal rules, in rule 152; (i) The sub-rule (1) shall be substituted as under Indian Liquor (Whisky, Rum, Gin, Vodka, Brandy, Wine, Liqueur, Beer, Draught Beer, Cider, Alcopop) and Foreign Liquor (Whisky, Rum, Vodka, Gin, Brandy, Wine, Liqueur, Beer and Cider) – Duty @ 1% of Wholesale Price. Provided that the amount of duty payable shall be subject to the provisions of rule 54 of these rules will be applicable from 1st November, 2021. In the principal rules, rule 153 shall be substituted as under ‘Rate of duty for sale through Canteen Stores Department (CSD).- For sale of Indian Liquor and Foreign Liquor through the Canteen Stores Department (holders of Licence in Form L-23), the rate of duty shall be Sixty Five percent of the Wholesale price,’ which is applicable from 1st November, 2021.

04/11/2021
The Maharashtra Authority of Advance Ruling (AAR) held that no Separate GST Registration is required for selling goods before clearing them for home consumption from the port of import. The Applicant, M/s Kamdhenu Agrochem Industries is an importer and reseller of chemicals, having the main place of business in the State of Maharashtra and further having warehouses in the State of Gujarat and State of Kerala. The Applicant is registered under the GST law in the State of Maharashtra. The Applicant is also holding GST registration in the States of Gujarat and Kerala. The applicant has sought the advance ruling on the issue of Whether the Applicant is required to obtain the registration in importing States other than Maharashtra if goods are imported, sold, and delivered directly from CFS (Container Freight Station)/DPD (Direct Port Delivery) which is under the Customs Boundaries to customers from those States. Ruled that consumption from the port of import, the place of supply shall be the place from where the applicant makes a taxable supply of goods which, in this case, will be the Maharashtra Office. Hence, the applicant can supply the goods on the basis of invoices issued by the Maharashtra Office, and therefore they need not take separate registration in importing States other than Maharashtra.

The Supreme Court has held that merely because a non-residential club is supplying meals and refreshments, the provisions of the Madhya Pradesh Shops and Establishments Act, 1958, will not become applicable to it. A bench comprising Justices KM Joseph and PS Narasimha was deciding a case related to Bhilai Steel Club. Few employees, whose services in the club were terminated, approached the authority under the Madhya Pradesh Shops and Establishments Act, challenging their dismissals. the Supreme Court concluded that Respondent No. 2 was indeed a non-residential club and therefore, entitled to exemption.

Usage of A technique in taxation language known as smurfing and holders were able to skip the scrutiny of such transactions. The CBI on Wednesday arrested six private individuals –Tanuj Gulati, Ish Bhutani, Ujjwal Suri, Hunney Goel, Sahil Wadhwa and Rakesh Kumar– as part of its ongoing probe in the case, the officials said. The agency in 2015 had booked several officials of the bank and others for allegedly making remittances of over Rs 6000 crore to South-East Asian countries by 59 current account holders from the Ashok Vihar branch of Bank of Baroda in the garb of purported payments of “non-existent” imports, they said. They said that Rs 6,000 crore was transferred through nearly 8,000 transactions done between July 2014 and July 2015. The amount remitted in each transaction was kept at less than USD 1 lakh.
“All the remittances were made to Hong Kong. The amount was remitted as advance for import and in most of the cases, the beneficiary was the same,” an official had said after filing of the FIR. Most of the foreign exchange-related transactions were carried out in newly opened current accounts wherein heavy cash receipts were observed but the branch did not generate an exceptional transaction report (ETR) and did not monitor the high value transactions.

The State Bank of India (SBI) has launched Video Life Certificate (VLC) facility for pensioners. The bank said in a statement tody that this facility has been launched with an aim to offer seamless life certificate submission experience for millions of pensioners (other than family pensioners). SBI said that with the help of VLC facility, pensioners can schedule a video call with SBI staff at their convenience and complete the process of life certificate submission without having to visit the bank branch. Pensioners can log on to www.pensionseva.sbi click on Video LC and enter their SBI Pension Account Number. They will have to submit the OTP received on their registered mobile numbers. Once they have read the terms and conditions, they can click on ‘Start Journey’. Pensioners will have to keep their original PAN card in place, click on ‘I am ready’, and grant permission to start the video call.

03/11/2021

The Unified Payments Interface (UPI) crossed $100 billion in terms of transaction value for the first time in October, data from the National Payments Corporation of India (NPCI)showed, further cementing UPI’s position as India’s most popular digital payments system. Around 4.2 billion UPI transactions amounting to Rs 7.71 lakh crore (about $103 billion) were clocked in the month, marking all-time highs on both counts for the five-year-old payments channel. In September, UPI registered 3.6 billion transactions worth Rs 6.5 lakh crore. This means the number of transactions jumped 15% and the value of transactions rose 18.5% October, compared to September. The number and value of UPI transactions have more than doubled since the same period last year. The spurt in October came largely on the back of increased demand for online shopping amid festive season sales. The gradual of the economy since the ebbing of the Covid-19 second wave also aided this growth. UPI has passed several significant milestones since launch in 2016. It crossed a billion transaction for the first time in October 2019, and the next billion came in less than a year.

The Central Board of Direct Taxes (CBDT) has notified an e-settlement scheme to settle pending income-tax settlement applications transferred to a settlement commission.
1. The scheme will be applicable to “Pending applications in respect of which the applicant has not exercised the option under sub-section (1) of Section 245M of the Act and which has been allotted or transferred by Central Board of Direct Taxes to an interim board”, CBDT said.
2. The proceedings before the interim Board shall not be open to the public.
3. No person other than the applicant, their employee, and concerned officers of the interim board or the income-tax authority or the authorized representatives, without the permission of the interim board, can attend the proceedings even on videoconferencing or video telephony.
4. CBDT shall establish suitable facilities for videoconferencing including telecommunication application software that supports video telephony at such locations as may be necessary, it said in the notification.
5. The board had in September allowed eligible taxpayers to file their income-tax settlement claims before the Interim Board for Settlement on certain conditions.
6. The relief was given to taxpayers who were eligible to file application as on January 31, 2021, but could not file the same due to cessation of Income Tax Settlement Commission as per the Finance Act 2021, and was hence permitted to submit the applications by September 30, 2021 before the interim board.

Highlights of the ongoing COP 26 climate talks at Glasgow:
1. More than 100 world leaders have promised to end and reverse deforestation by 2030, in the COP26 climate summit's first major deal. EU has pledged $1.1 billion to protect forests around the world. Nearly 100 countries have also signed a pledge to slash emissions of the potent greenhouse gas methane.
2. India vowed to cut its emissions to net zero by 2070. India would get half its energy from renewable sources by the end of this decade. India also demanded that rich countries pay $1tn to help developing countries reach their climate goals.
3. India also called for ‘One Sun, One World, One Grid’ to improve the viability of solar power and announced that India’s space agency ISRO will soon provide the world a calculator that can measure solar energy potential of any region across the globe.
4. Vietnam said it would target net zero by 2050, while Brazil is aiming to cut emissions by 50 per cent this decade. Russia is aiming for net zero by 2060.
5. The UK will provide an “India Green Guarantee” to the World Bank, to unlock an additional 750 million pounds for green projects across India.
6. Further, in an aid-backed Private Infrastructure Development Group (PIDG), the UK has committed more than 210 million pounds in new investment to back transformational green projects in developing countries, including electric vehicles (EVs) in India.

Income Tax Department rolls out new Annual Information Statement:
1. The Income Tax Department has launched the new Annual Information Statement (AIS) on the Compliance Portal, which provides a comprehensive view of information to taxpayer.
2. The new AIS can be accessed by going to the “Services” tab on the new Income Tax e-filing portal (https://www. incometax. gov. in) and clicking on the link “Annual Information Statement (AIS)”. The display of Form 26AS on the TRACES portal will also continue until the new AIS has been validated and is fully operational.
3. The new AIS includes more information about interest, dividends, securities transactions, mutual fund transactions, foreign remittances, and so on. The reported data has been processed to remove duplicate data. The taxpayer will be able to download AIS data in PDF, JSON, and CSV formats.
4. If a taxpayer believes that the information is incorrect, relates to another person/year, is duplicate, or is otherwise incorrect, an online feedback form is available.
5. For each taxpayer, a simplified Taxpayer Information Summary (TIS) has been generated, which shows aggregated value for the taxpayer for ease of filing return.
6. When a taxpayer provides feedback on AIS, the derived information in TIS is automatically updated in real time. The derived information in TIS will be used to populate the Return (pre-filling will be enabled in a phased manner).
7. In case there is a variation between the TDS/TCS information or the details of tax paid as displayed in Form26AS on TRACES portal and the TDS/TCS information or the information relating to tax payment as displayed in AIS on Compliance Portal, the taxpayer may rely on the information displayed on TRACES portal for the purpose of filing of ITR and for other tax compliance purposes.

The group ministers (GoM) tasked with goods and services tax (GST) system reforms will form subcommittee of officers to identify potential sources of evasion and suggest changes in business processes and IT systems to plug revenue leakage. It has been decided that the officers’ committee will give its recommendations within a month, following which the GoM will consider it and give its final recommendations,” a person aware of the development said on condition of anonymity. The decision was taken at a meeting of the GoM held last week. Since The GoM’s terms of reference involve giving suggestions to improve the GST system on a long-term and continuous on a long-term and continuous basis, the committee will give recommendations periodically and on an ongoing basis, said the person.

02/11/2021

Gold storage limit in India as per Income Tax act 1961:
The Union government is said to be mulling a plan to put a limit on the amount of unaccounted gold one can hold. Reports claimed recently that the government was planning to introduce a gold amnesty scheme and that those holding unaccounted gold beyond a certain limit would be penalised.
In the days following the reports, scores of readers were concerned about the amount of gold they can keep at home without worrying about an Income Tax raid as per the current rules.
1. There is no limit on the amount of gold jewellery or ornaments citizens of India can hold, provided they can explain the source of income that allowed them to invest in gold. However, there are separate limits for men and women on the unaccounted gold they can keep at home.
2. As per Central Board of Direct Taxes (CBDT) clarification vide its circular dated 01 December, 2016, there is no limit on holding of Gold Jewellery or Ornaments by anybody provided they have reasonable justification regarding the source of income from which the gold is acquired.
3. CBDT had clarified that jewellery and ornaments to the extent of 500 grams for married lady, 250 gms for unmarried lady and 100 gram for male will not be seized, even if prima facie it does not seem to be matching with the disclosed income records of that individual.
4. Therefore till the time the source of income for the acquisition of gold is in place, the assessee shall not be afraid of any raid or questioning by the income tax department.
5. The household gold storage limit in India is different for married women, unmarried women, and a male member. A married woman can have up to 500 grams gold, and a bachelorette can have up to 250 grams of gold, even if they fail to produce their income proof. Males could be considered a bit unlucky in this regard as they are allowed to hold only 100 grams gold without justifying their income status.
6. The CBDT instruction applies only to the gold jewellery and not to gold in any other form or jewellery of other nature like diamond jewellery, precious stones etc. So the tax officials can seize any gold coins, gold bars and non-gold jewellery found during the raids even if the weight of the same is within the specified limits unless you are able to establish the acquisition of the same.

The Income Tax (I-T) department has broadened the line of questioning as it begins its probe into information leaked by the ‘Pandora Papers’. Beyond disclosing their ownership in existing foreign assets, people named in the Pandora expose are being told to spell out details of bank accounts which no longer exist and were dissolved, directorships in overseas firms and tax residency status over the past 16 years. They are also being asked to identify the ‘service providers’ in the tax havens, according to the first set of summons issued a week ago by the tax department under section 131 (1a) of the I-T Act which empowers tax officials to make enquiries if it suspects non-disclosure of earnings. Service providers are entities hired to set up offshore entities and structures as well as handle communication on client’s behalf.

01/11/2021
Some Conglomerates, Bank, and companies may face additional taxes under the Goods and Service Tax (GST) on their intangibles, such as goodwill brand, logo fees and even franchise fees paid by them, following a recent adjustment in tax rates. The government recently implemented rate parity between ‘right to use’ and ‘transfer of right to use’ under the GST framework, which will affect transactions where brand names are held in a separate business and subsidiaries are ‘allowed’ to use it for a fee. Following the move, the tax authorities may begin investigating various groups and corporations about how much their brand names and trademarks are worth and whether or not they impose GST on the amount. The change could affect corporations like Tata group, Mahindra Group, ICICI Bank, and HSBC Bank, among others, who have multiple subsidiaries and group companies.

The gross GST revenue collected in the month of October 2021 exceeded rs.1.3 lakh crore. The GST revenues for October are the second highest ever since introduction of GST, second only to that in April 2021, which related to year-end revenues. The revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year. The GST collections in October came in at rs. 1, 30,127 crore of which CGST is rs.23,861 crore, SGST rs.30,421 crore, IGST is rs. 67,361 crore (including rs. 32,998 crore collected on import of goods) and Cess rs. 8,484 crore (including rs. 699 crore collected on import of goods), according to a government statement.

31/10/2021

The Income Tax department has notified on Twitter that:
1. over 2.25 crore ITRs for AY 2021-22 were filed on the Income Tax e-filing portal till October 28. 2. Over 55% of these ITRs have been prepared using the online form available and filed on the new portal.
3. More than 15 crore unique taxpayers have logged in till 28th October 2021.
4. over 21.47 lakh new registrations have been done.
5. Over 60.87 lakh taxpayers have availed of the 'forgot password' facility to obtain their passwords till 28th October 2021.
6. Over 24.01 lakh new e-PAN have been allotted.
7. 79.55 lakh taxpayers have linked their PAN with Aadhaar online on the new portal.
8. Over 34.19 lakh Bank accounts have been validated.
9. over 21.15 lakh Bank Accounts have been enabled for e-Verification.
10. Over 21.69 lakh Statutory Forms filed including 12.81 lakh TDS statements, 1.37 lakh Form 10A for registration of Trusts/Institutions, 2.30lakh Form 10E for arrears of salary, 2.91 lakh 15 CA, 0.74 lakh 15CB for foreign remittance & 39,061 Form 35 for Appeal till 28th Oct 2021.
11. More than 12.87 lakh notices pertaining to Faceless Assessments, Appeals & Penalty proceedings have been posted on the portal, out of which, responses have been received in over 6.75 lakh cases.

As per the provisions of the Factories Act 1948, a manufacturing unit with 10 or more workers with power, or 20 or more workers without power, is a “factory” required to obtain license under the Factory Act which is applicable to both owners and tenants of the premises. Hence, all such Factory owners from approved confirming industrial areas notified under MPD-2021, have to get their factories registered and obtain license under the provisions of the act to avoid any penal action.

Facebook Inc. is rechristening itself Meta Platforms Inc. decoupling its corporate identity from the eponymous social network mired in toxic content, and highlighting a shift to an emerging computing platform focused on virtual reality. The met averse is the next frontier,” Chief Executive Officer Mark Zuckerberg said in a presentation at Facebook’s Connect conference, held virtually on Thursday. “From now on, we’re going to be metaverse-first, not Facebook-first.” The name change is the most definitive signal so far of the company’s intention to stake its future on a new computing platform – the metaverse, an idea born in the imaginations of sci-fi novelists. In Meta’s vision, people will congregate and communicate by entering virtual environments, whether they’re talking with colleagues in a boardroom or hanging out with friend’s in far-flung corners of the world. The new name won’t affect how the company uses or shares data, and the corporate structure isn’t changing. Apps including the flagship social network, Instagram, Messenger and WhatsApp will also keep their monikers. The company said its stock will start trading under a new ticker, MVRS, on Dec.1.

The Centre has reappointed Shaktikanta Das, Reserve Bank of India’s (RBI) governor since December 2018, for another three-year term to ensure continuity in policy direction as Asia’s third-biggest economy seeks to consolidate a consolidate a fledgling recovery from pandemic-induced shrinkage. The decision to reappoint Das, 64, was announced late Thursday after the proposal was approved by the appointments committee of the Cabinet

30/10/2021
The Supreme Court on Friday began hearing a petition challenging the latest changes in the foreign Contribution Regulation Act (FCRA) which many non-governmental organizations (NGOs) say have squeezed their funds. The changes have made it mandatory for all NGOs to have their primary bank account in Delhi and reduced the percentage of funds that can be used by them for administrative expenses from 50% to 20%. Further, the purposes for which foreign contribution can be received have been restricted. These provisions have been challenged in SC. A bench led by Justice AM Khanwilkar is hearing the petition.

Top-tier celebrities endorsing cryptocurrencies need to do their due diligence when backing a claim over the new financial asset in ads or they could be held account-able for it, Subhash Kamath, chairman of the advertising council of India told ET. This comes amid the ad blitz by crypto unicorns Coinswitch Kuber, CoinDCX and others during the ongoing T20 world Cup, one of the most-watched sporting events. The advertisements, especially during the India-Pakistan match on Sunday, led to many debates online whether these ads came with adequate risk disclaimers with some like BitBns equating it to fixed deposit returns. Cryptocurrency is a very new concept and not everyone understands it fully yet. So, celebrities really need to do their due diligence when backing a claim. Because if it’s found misleading, they can be held account-able for it,” Kamath told ET, referring to the Consumer Protection Act, 2019 that came into effect last year. The new law casts a duty upon the person advertising a product or service (endorser) to ensure that the claims are not false or misleading.

29/10/2021
SEBI has issued a warning to Vedanta Ltd over related party transactions not approved by the audit committee:
1. Regulation 23(2) of SEBI (LODR) Regulations, 2015, states that all related party transactions shall require prior approval of the audit committee.
2. The independent auditors had in the firm’s annual report for fiscal year 2020-21 flagged related-party transactions. The auditors had expressed a qualified opinion in respect of the company executing related party transactions worth Rs 1,407 crore without prior approval of the audit committee.
3. In a warning letter, which Vedanta as per SEBI directions, disclosed to stock exchanges, the regulator said it will take action if such actions were repeated in future.
4. SEBI had asked Vedanta to place its letter before the company’s board of directors and disseminate the same to stock exchanges.

28/10/2021
GST Updates
1. Ice-cream parlours facing a meltdown over 18% GST levy with Retro effect.
2. TN AAR: No input tax credit on festive offers to retailers.
3. Maha AAR: No GST exemption for tourist vehicles carrying Covid patients. It fails on moral grounds.
4. CBIC directs GST Officer to issue SCNs based on difference in ITR-TDS data and Service Tax Returns only after Proper Verification.
5. Pen in pain: Pen associations write to government over GST rate increase to 18% wef 01st october 2021

Form 26AS is the tax passbook of an individual containing details of the tax deducted and deposited against the PAN of an individual during a financial year.
As per the latest CBDT order: In exercise of powers conferred under section 285BB of the Income-tax Act, 1961 read with sub-rule (2) of Rule 114-I of the Income-tax Rules, 1962, the Central Board of Direct Taxes (‘Board’) hereby authorizes the Director General of Income-tax (Systems) to upload information relating to following sources, which is in her/his possession, in the Annual Information Statement in Form 26AS in the electronic filing account registered by the assessee in designated portal, within three months from the end of the month in which the information is received by her/him:
i. Foreign remittance information reported in Form 15CC
ii. Information in Annexure II of the 24Q TDS statement of the last quarter
iii. Information in ITR of other taxpayer
iv. Interest on income tax refund
v. Information in Form 61/61A where PAN could be populated
vi. Off Market Transactions reported by Depository/Registrar and Transfer Agent (RTA)
vii. Information about dividend of mutual fund reported by Registrar and Transfer Agent (RTA)
viii. Information about purchase of mutual fund reported by Registrar and Transfer Agent (RTA).

27/10/2021

Per a report by CNBC, payment giant Mastercard will double down on its crypto future. The company announced a partnership with Bakkt, a financial services company, in an attempt to increase its crypto capacities. The integration will allow Mastercard’s users, banks, or merchants, to offer cryptocurrency-related products, the CNBC report claims. Such as access to crypto wallets, and the potential launch of loyalty and rewards programs to be paid in Bitcoin, Ethereum, and other digital assets. Bakkt will take custody of the funds in cryptocurrencies, said two high-ranking sources familiar with the partnership to the mainstream media.

India lost $87 bn last year due to natural calamities: As per WMO
1. Natural disasters, such as cyclones, floods and droughts, have cost India around $87 billion in 2020, according to a report by World Meteorological Organization (WMO).
2. India was the second most affected nation from the impact of global warming on lives and property after China, which lost $238 billion.
3. Droughts caused the maximum damage, it said, adding that 2020 was the warmest year on record for Asia, with a mean temperature at 1.39 degrees Celsius above the average of the 1981-2010 period.
4. The World Meteorological Organization also noted that Asia has performed poorly on the Sustainable Development Goal (SDG) 13 (Climate Action) in most of its subregions. Fewer than 10% of the SDG targets are on track to be achieved by 2030.

Current account comes under the pressure of oil prices:
1. Rising global prices, led by crude, coal and metals, will shave a lot off the current account leading to higher imports and a rise in current account deficit, which is likely to print at 1.3 % of the GDP or USD 40 billion, up from 0.9 % surplus last fiscal as per a report by Wall Street major Bank of America Securities.
2. The current account deficit expanded to a record high of $22.59 billion in September. Petroleum imports soared to $17.4 billion in September against $11.6 billion in the previous month due to hardening of international prices.
3. The global price for the Indian basket of oil was $73.13 a barrel this September, against $41.35 a year ago.

26/10/2021
Procedural requirements for taking foreign tax credit
A. Procedural requirements for taking credit of taxes paid abroad is given in Rule 128 of the Income Tax Rules.
B. The credit of foreign taxes shall be available by filing Form 67 and filing the Income Tax return. Form 67 for claiming foreign taxes shall be filed on or before the due date of filing the return of income under section 139(1).
C. Credit of foreign taxes may not be available if form 67 is not filed within the due date of ITR.
D. Form 67 is available for filing in the online mode on the IT Portal.
E. Some documents to be attached with Form 67 for claiming FTC are:
Certificate or statement specifying the nature of income and the amount of tax deducted therefrom or paid by the assessee:
a) The statement specifying nature of income and tax paid in foreign country can be the return of income filed in the foreign country or certificate issued by the foreign tax authority.
(b) This can also be a certificate of tax deduction from the person responsible for deducting such tax in the foreign country just like Form 16/16A/16C furnished in India i.e TDS/TCS certificates or some other certificate specifying income and taxes.
c) In absence of the above-mentioned documents, the person claiming the credit of foreign taxes can also furnish self-attested/self-signed statement specifying the income offered and taxes paid abroad, but the said statement shall be valid only if it is accompanied by:
(i) an acknowledgement of online payment or bank counter foil or challan for payment of tax where the payment has been made by the assessee;
(ii) proof of deduction where tax has been deducted.

Tax collected from Swiggy during investigation can be refunded: Karnataka HC. M/S. Bundl Technologies Private Limited v. Union of India [WP 4467/2021 (T-RES) dated September 14, 2021]
Facts:
1. The Petitioner asserted that on November 29, 2019, during the investigation, the Petitioner was forced to make payment of Rs 15 Crores under the threat of arrest.
2. The Petitioner further submitted that on December 27, 2019, the Petitioner was forced to make further payment of tax of Rupees 12,51,44,157/-. All in all, the Petitioner alleged that a sum of Rupees 27, 51, 44,157/- was illegally collected under threat and coercion.
3. The Petitioner sought a direction to the Respondents to forthwith the amount of Rupees 27,51,44,157/- illegally collected by the Department.
The Hon HC held as below:
1. Payment made during investigation is not considered as ascertained tax, refund of same allowed.
2. The right of refund …would be independent of the process of investigation and two cannot be linked together.
3. The Department to consider the refund application of the amount deposited during the investigation.

25/10/2021
Tesla Inc surpassed $1 trillion in market capitalization on Monday after landing its biggest-ever order from rental car company Hertz, a deal that reinforced the electric car leader’s ambitions to top the entire auto industry in sales over the next decade. Most automakers do not boast about sales to rental car companies, often made at discounts to unload slow-selling models. But for Tesla and its investors, Hertz’s decision to order 100,000 Tesla vehicles by the end of 2022 showed electric vehicles are no longer a niche product, but will dominate the mass car market in the near future. “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim Chief Executive Officer Mark Fields told Reuters.

24/10/2021
The Income Tax Department carried out a search and seizure operation on 21.10.2021 in the case of a person engaged in the real estate business, primarily operating as a land aggregator in Nashik. During the search and seizure operation, many incriminating documents including land agreements, notarized documents and other papers evidencing large scale cash transactions for acquisition of properties have been found and seized. Such transactions are also corroborated by digital evidences extracted from computers and mobile phones. Further, substantial amount of unaccounted cash was found stored in several private vaults. So far, unaccounted cash of Rs. 23.45 crore has been seized. One locker is under prohibitory orders. The main persons, who had invested their unaccounted income towards purchase of large patches of land, were also searched. Most of these persons are engaged in the wholesale trading of onions and other cash crops in the Pimpalgaon Baswant region of Maharashtra. So far unaccounted income of more than Rs. 100 crores have been detected as a result of the search operation. The evidences gathered are being examined and further investigations are in progress. S-PIB Delhi.

23/10/2021
Investors could increase their exposure to gold through the upcoming tranche of sovereign gold bond offering starting on Monday. With inflationary pressures expected to result in uncertainty in equities, investment advisors suggest investors must raise gold allocation to as much as 15% of their portfolio. In the seventh tranche of sovereign gold bond offering in the year ending October 29, investors will have to pay Rs. 4,711 per gram the Rs 50 per gram discount for digital payments. This is 0.61% higher than Rs. 4,682 per gram that they paid for in the previous issue in September. Gold prices have dropped 7% in the last one year. Wealth managers believe sovereign gold bonds are one of the most efficient ways to own gold as long as investors do not need intermittent liquidity. They score over traditional modes like buying physical gold or gold ETF or gold funds as the bonds are backed by the government, fetch 2.5% interest every year, and have no storage costs. While there is an option of the government buying back at the end of the fifth year, many rich investors like the product because capital gains are tax-free on maturity.

22/10/2021

The Reserve Bank of India on Wednesday imposed a monetary penalty of ?1 crore on Paytm Payments Bank Limited (PPBL) over certain specified violations. On examination of Paytm Payments Bank’s application for issue of final Certificate of Authorisation, the RBI observed that PPBL had submitted information that did not reflect the factual position, the central bank said in a statement.

The central bank also imposed a fine of over ?27 lakh on cross-border in-bound service operator Western Union Financial Services Inc (WUFSI) for ‘for non-compliance with certain provisions of the directions contained in the Master Direction on Money Transfer Service Scheme (MTSS Directions) dated February 22, 2017. WUFSI had reported instances of breach of the ceiling of 30 remittances per beneficiary during the calendar years 2019 and 2020, and filed an application for compounding of the violation. “RBI determined that the aforementioned non-compliance warranted the imposition of a monetary penalty after analysing the compounding application, and oral submissions made during the personal hearing," it said.

21/10/2021

Late deposit of Tds results in 3 percent interest. The Deductor is required to make the payment of TDS within 7 days from the end of the month in which TDS is done (Only exception is the TDS for the month of March). For example, if TDS is done on 28.09.2021 (in September 2021) then the TDS amount is required to be paid by the deductor to the Government Treasury on or before 7th October 2021. If the TDS is deposited on or before 7th October 2021, no interest liability would be there. However, if there is a delay in payment, say the TDS is deposited by the deductor on 8th October, then interest u/s 201 would be applicable. In such a scenario, interest is payable @ 1.50% for a month or a part of the month.

The Income Tax Department initiated search and seizure operations in two groups based in several States on 12.10.2021.
The first group is engaged in digital marketing and campaign management wherein the search operations have been carried out at 7 premises located in Bengaluru, Surat, Chandigarh, and Mohali. Incriminating evidence found reveals that the group has been engaged in obtaining accommodation entries using an entry operator. The entry operator has admitted to have facilitated transfer of cash and unaccounted income of the group through Hawala operators. Inflation of expenditure and under-reporting of revenue has also been detected. The group has also been found to be indulging in unaccounted cash payments. It is also found that personal expenses of the directors have been booked as business expenses in the books of accounts. Luxurious vehicles used by the directors and their family members are found to have been purchased in the names of employees and entry provider.
The second group searched is engaged in Solid Waste Management comprising solid waste collection, transportation, processing and disposal services across the country, primarily catering to Indian municipalities. During the course of the search, various incriminating documents, loose papers and digital evidences have been seized. Evidence found reveals that this group has indulged in booking of bogus bills for expenses and sub-contracts. A preliminary estimate of such bogus expenses booked is to the tune of Rs.70 crore. The search action has led to the detection of unaccounted investment in property of about Rs. 7 crore. Apart from this, the search action has resulted in seizure of unaccounted cash of Rs. 1.95 crore and jewellery of Rs. 65 lakh.
Further investigations are in progress in both the groups.

20/10/2021
Bombay HC rules that the Assessment is non-est for not following Sec 144B:
Mantra Industries Limited…..Petitioners
V/s. National Faceless Assessment Centre & Ors.... Respondents
Facts:
1. Assessment was passed U/S 143(3) under the faceless assessment scheme. Order was passed merely 2 days after the issue of show cause notice and without considering the relevant replies to the notices issued.
2. Also, the respondent had not considered the request for a personal hearing.
3. Sub Section 9 of Section 144B of the Act provides that any assessment made shall be non-est if such assessment is not made in accordance with the procedure laid down under this section.
The Hon Bombay HC held as below:
1. In terms of Sub Sec 9 of Sec 144B, the assessment is non-est and shall be deemed to have been never passed. So the AO may take such steps as advised in accordance with law.
2. Respondents are put to notice, and their advocate to circulate this order right from the Revenue Secretary to everybody in the Finance Ministry, that if such orders are continued to be passed, this Court will be constrained to impose substantial costs on the concerned AO to be recovered from his/her salary and also direct the department to place such judicial orders in the career records of such Assessing Officer.

Procedural requirements for taking foreign tax credit
A. Procedural requirements for taking credit of taxes paid abroad is given in Rule 128 of the Income Tax Rules.
B. The credit of foreign taxes shall be available by filing Form 67 and filing the Income Tax return. Form 67 for claiming foreign taxes shall be filed on or before the due date of filing the return of income under section 139(1).
C. Credit of foreign taxes may not be available if form 67 is not filed within the due date of ITR.
D. Form 67 is available for filing in the online mode on the IT Portal.
E. Some documents to be attached with Form 67 for claiming FTC are:
Certificate or statement specifying the nature of income and the amount of tax deducted therefrom or paid by the assessee:
a) The statement specifying nature of income and tax paid in foreign country can be the return of income filed in the foreign country or certificate issued by the foreign tax authority.
(b) This can also be a certificate of tax deduction from the person responsible for deducting such tax in the foreign country just like Form 16/16A/16C furnished in India i.e TDS/TCS certificates or some other certificate specifying income and taxes.
c) In absence of the above-mentioned documents, the person claiming the credit of foreign taxes can also furnish self-attested/self-signed statement specifying the income offered and taxes paid abroad, but the said statement shall be valid only if it is accompanied by:
(i) an acknowledgement of online payment or bank counter foil or challan for payment of tax where the payment has been made by the assessee;
(ii) proof of deduction where tax has been deducted.

19/10/2021
Genuine issue of Shares to Shareholders not to be considered under Anti-Abuse Provisions of the IT Act:
Income Tax Officer v. Shri Rajeev Ratanlal Tulshyan [I.T.A. No.5748/Mum/2017]
Facts:
1. During the year under consideration, a company offered a right issue and the assessee was allotted 3.95 Crores shares of KFPL at face value of Re.1/- each in the right issue.
2. However, it was alleged by AO that the consideration of Re.1/- per share was less than fair market value (FMV) of shares as calculated in accordance with the provisions of Sec.56(2)(vii)(c)(ii) read with rule 11U & 11UA and therefore, the difference between FMV and the consideration paid by the assessee would be taxable in the hands of the assessee u/s 56(2)(vii).
The ITAT held as below:
1. Hon Supreme Court in Khoday Distilleries Ltd. (CA No.6654 of 2008), held that allotment of shares is a creation of shares and not a transfer of share. Sec 56(2)(vii)(c) uses the word ‘received’ which cannot be equated with allotment.
2. In the case of Sudhir Menon HUF vs ACIT (45 taxmann. com 176) it was held that as long as there was no disproportionate allotment i.e. shares are allotted pro-rata to the shareholders, the provisions of Sec.56(2)(vii)(c) would not get attracted. A higher than proportionate or a non-uniform allotment though would, and on the same premise, attract the rigor of the provision.
3. Anti-abuse provisions under section 56(2) of the IT Act shall not be applicable to genuine issue of shares to the existing shareholders.

IT department detects massive under invoicing, while actual value could be Rs 2,000 crores, declared value is Rs 20 crores.
1. The Income Tax Department carried out search and seizure operations on an importer and trader of laptops, mobile phones and peripheral parts. The search operations commenced on 10.10.2021 and were spread across the National Capital Region, Haryana and West Bengal.
2. The IT department detected import of goods in the name of shell entities at under-valued and/or wrongful declaration of description of goods imported, with an intent to evade customs duty. Upon clearance at port(s), such goods have been found to be distributed throughout India by way of out-of-books cash transactions.
3. As an example, a bill of lading declared the goods as ‘HDMI cables’ valued at Rs 3.8 lakh. However, on de-sealing and searching the same, it has been revealed that the actual goods imported are high value items like laptops, mobile phones etc which are valued at Rs. 64 crore.
4. Though the value of imports declared at the port of entry by the use of such shell entities in the past 3 years is about Rs. 20 crores, it is estimated that the actual value during this period could be more than Rs. 2000 crores, given the scale of massive under-valuation detected.
5. The wealth, so generated, has been used for acquisition of high value immovable properties; disguising of cash introduced in the form of bogus rental income and bogus unsecured loans; and deposits in foreign bank accounts.
Source: Press Information Bureau

18/10/2021
Global investors and offshore funds entering India through Mauritius are betting that in a few weeks the tax haven will shed some of its stigma and come out of the 'grey list' of the Financial Action Task Force (FATF) - an intergovernmental policy body that monitors the colour of money by setting anti-money laundering standards.

India's e-commerce industry set to grow 84% by 2024, says report
Affle’s MAAS, a unified mobile advertising platform, and Sensor Tower (a US-based mobile app store marketing intelligence company) have jointly studied the key factors that accelerated e-commerce adoption in India and Southeast Asia in the recent past, and how Covid-19 has shaped shopping behaviour.

17/10/2021
Several rich Indians who moved family trusts and holding entities to Dubai and Abu Dhabi amid the Covid-19 pandemic are now reaching out to their advisers fearing additional taxes, following the new global tax deal of the Organization for Economic Co-operation and Development (OECD) and UAE’s plans to introduce more taxes. After all major countries including the UAE signed OECD’s global tax deal, the fear is that the country will introduce corporate tax of at least 15% across the board that will even apply to income of holding trusts and entities. Many businessmen had created intermediary companies based in these countries so that the operations could be handled from there, and they could avail of tax benefits due to UAE’s liberal tax regime. Some of them had even started “creating fact patterns” do that they don’t get stuck with tax and other regulatory issues. These fact patterns, high-lighting historical transactions and structures, are aimed at demonstrating that the move was not undertaken to save taxes but due to other genuine reasons.
“Many Indian families had moved their holding companies and trusts to Dubai in the last two years either completely or partially. Now with the OECD global tax deal, the fear is that there could be a 15% tax in the UAE even on these entities that would eventually wipe out a large part of the tax arbitrage.

Sebi has given its nod to the initial public offerings (IPO) of six companies, including Adani Wilmar and Nykaa. Star Health and Allied Insurance Company, Penna Cement, Latent View Analytics, and Sigachi Industries are the others to have received the regulator’s nod for IPOs, Sebi said on Monday. Of the six IPOs, Star Health and Penna Cement filed their offer papers on July 22 and May 14, respectively, while others submitted their DRHPs in August. All the six companies obtained Sebi’s “observations” during October 11-14.

16/10/2021
Canteen Charges collected from employees will now be outside the gamut of goods and services tax following a tax ruling that offers some relief to several large industrial and manufacturing units. In a recent ruling, the Gujarat Authority for Advance Ruling (AAR) said that GST is not applicable on the amount collected from the employees towards canteen charges which is paid to the canteen service provider. In most cases, a token amount is collected from the employees. The AAR ruled that in cases where the company is not making any profit on this amount and merely acting as an intermediary, GST cannot be levied.
In earlier two AAR rulings, a different view was taken by two different authorities. In the case of Tata Motors, the AAR had ruled that GST is not applicable on such an amount while in the case of Amneal Pharmaceuticals, a contrary view was taken in the ruling.

15/10/2021

Indian cryptocurrency exchanges have started reporting and blocking trading accounts, which undertake suspicious trades after government agencies raised red flags over cryptocurrencies being used for money laundering. The self-regulation comes at a time when India is yet to come out with any regulations around cryptocurrencies or the way to tax them. Industry trackers say investigators including cybercrime officials, the Enforcement Directorate and the income tax department, had raised red flags in the past few months. Also, top crypto exchanges are getting requests from foreign investigators regarding certain suspicious accounts. For instance, WazirX, one of the largest cryptocurrency exchanges in the country, recently declared the numbers in what it calls a “transparency report”. Between April and September this year, the exchange got 377 requests from legal enforcement agencies, out of which 38 requests were from foreign law enforcement agencies. The crypto exchange locked about 1,500 accounts. In all, the exchange locked 14,469 accounts, although most of them were after customers asked them to stop services or there were some other payment issues.

RBI cancels the license of 6 NBFCs:
The Reserve Bank of India (RBI) has announced the cancellation of the licenses of 6 non-banking finance companies (NBFCs), including Sambandh Finserve Private Limited, involved in fraud cases. These NBFCs include Cartel Finance & Investment Private Limited, Alamgir Motor Finance Limited, Nau-Nidh Finance Limited, Kim Investment Limited, Sambandh Finserve Private Limited and BTL Holding Company Limited.

The officers of Central Goods and Services Tax (CGST) Commissionerates, Delhi East, carried out the detailed analysis and unearthed a network of fictitious exporters who were availing and utilizing fake Input Tax Credit (ITC) of Rs 134 crore under the Goods and Services Tax (GST) with an intent to claim IGST refund fraudulently. On the basis of Risk Analysis, a risky exporter M/s Vibe Tradex was identified for scrutiny. M/s Vibe Tradex is engaged in export of Pan Masala, chewing tobacco, FMCG goods etc. The network of fictitious exporters was being operated by a person named Mr Chirag Goel, who is an MBA from University of Sunderland, UK. On an extensive analysis of the e-Way Bills generated by two supplier firms/ companies owned by his associate, who is at large, it was found that the vehicles for which the e-way Bill were generated for purported supply of goods were being used in distant cities namely Gujrat, Maharashtra, Madhya Pradesh and had never entered Delhi during the said period. The fake Input Tax Credit availed and utilized is Rs. 134 crore.

14/10/2021
The Headquarters Preventive Unit of Chennai North GST and Central Excise Commissionerates has arrested yet another tax evader for committing GST fraud by floating several fake companies and receiving and passing on illegal, fraudulent and ineligible input tax credit to the extent of Rs.43.58 Crore with taxable value of more than Rs.238.57 Crore. The arrested is a 40-year-old from Parrys area of Chennai city.

The Income Tax Department carried out search and seizure operations on 05.10.2021 in the case of two groups based in the North-East Region and West Bengal. A total of 15 premises were covered in the search action, which was spread across Kolkata, Guwahati, Rangia, Shillong and Patna. One of the groups is engaged in the business of cement manufacturing. During the search action, it was found that this group generated unaccounted income by indulging in out-of-books sales and booking bogus expenses. This unaccounted income is laundered back into the business through shell companies. Evidences found during the search revealed that many paper companies are run by the group to provide accommodation entries to its flagship concern.

13/10/2021
Indians are outpacing the rest of the world when it comes to cryptocurrency adoption even as investors are still awaiting the official verdict on cryptocurrency exchanges in the country.

at over 10 crore, India has the largest number of crypto owners in the world followed by USA And Russia. Large institutional-sized transfers above $10 million worth of crypto currency represents 42 per cent of transactions sent from Indian based addresses. The world’s biggest cryptocurrency, bitcoin, has already gained more than 50 per cent since the start of this year. Indians who own cryptocurrency are mostly in the age bracket 21 to 35 and live in metro cities.

Data from top exchanges indicate that about 15% to 20% of all the users are students and in the users are students and in the 18-20 years’ age group. The number of students trading and investing in crypto six times at the top exchanges when compared with last year-or for that matter even a few months ago. Data from the exchanges also indicate that about 30% of all the students’ investing in cryptocurrencies are either engineers or have a technology background.

Crisil Ratings on Tuesday said that assets under management (AUM) of non-banking financial companies (NBFCs) that primarily offer loans against gold is expected to rise 18-20%to Rs.1.3 lakh crores this fiscal despite a contraction in the first quarter. Demand for gold loans from micro enterprises and individuals to fund working capital and personal requirements has increased amid a pick-up in economic activity and the onset of the festive season, the rating agency has said.

India will soon notify a separate set of rules to facilitate settlement of its retrospective tax dispute with British telecom company Vodafone, a senior government official told ET. Vodafone had faced validation of tax demand under Section 119 introduced in the Finance Act 2012, as distinct from the others, and hence, rules also have to be issued under a separate section to withdraw the tax demand, the official said.
“Rules would be notified soon,” the official said, adding that the broad template of the rules would be akin to the final set of norms issued for settlement mandating indemnity from the companies willing to settle. Vodafone will have 45 days from the date of notification of these rules to approach the government for settlement. In other retrospective cases including Cairn, the tax demands were issued after the 2012 amendment under Section 9 relating to indirect transfer of Indian assets. Vodafone dispute, on the other hand, had been going on and demand was validated under Section 119 after the controversial 2012 amendment.

12/10/2021

Zostel (Zo Rooms) has urged the Securities and Exchange Board of India (Sebi) to reject budget hospitality chain Oyo’s draft red herring prospectus (DRHP) and suspend its proposed initial public offering (IPO). ET has reviewed a copy of the letter. Zostel has termed Oyo’s move to file for an IPO ‘illegal’. Zostel is Oyo’s erstwhile rival. ET was the first to report about Zostel’s plan to move the capital markets regulator on October 4. Zostel had firmed up plans to ask the regulator to restrict Oyo’s $1.2-billion IPO, citing its ongoing legal dispute with firm, ET reported. In the letter written on Monday, Zostel said Oyo’s IPO is “non-maintainable as Oravel’s (Oyo’s parent firm) capital structure is not final”. Therefore, Oravel’s filing of the DRHP under the circumstances is illegal in view of the stipulation contained under Regulation 5(2) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2018 (ICDR Regulations), it said.

The Employees Provident Fund Organisation (EPFO) may soon credit the interest declared for 2020-21 in the accounts of 60 million subscribers, bringing some festive cheer to the salaried class. The interest rate of 8.5%, declared for 2020-21 in March ministry’s approval for over six months now. A top official of the labor ministry told ET that a meeting was recently held between the two ministries to address some of the queries of the finance ministry on the interest rate declared for the previous fiscal. “It should be happening soon,” the official said, referring to the finance ministry’s approval.

Global Deal to End Tax Havens Moves Ahead as Nations Back 15% Rate:
1. More than 130 countries on Friday backed a landmark agreement to set a new minimum tax rate of 15% for companies around the world.
2. The agreement, which was brokered by the Organisation for Economic Co-operation and Development (OECD), would set a minimum tax rate of 15% from 2023.
3. Ireland, Hungary and Estonia - all of which have corporate tax rates below 15% - at first resisted the plan but are now on board.
4. However, Kenya, Nigeria, Pakistan and Sri Lanka have not yet signed up to the plan.
5. The new minimum tax rate would apply to companies with annual revenue of more than 750 million euros ($866 million) and would generate around $150 billion in additional global tax revenue per year.
6. There is a consensus amongst 130 countries on a two pillar plan.
7. Pillar One would re-allocate some taxing rights over MNEs from their home countries to the markets where they have business activities and earn profits, regardless of whether firms have a physical presence there.
8. Pillar Two seeks to put a floor on competition over corporate income tax, through the introduction of a global minimum corporate tax rate that countries can use to protect their tax bases.

Income Tax raid on Pharma groups unearths unaccounted income of Rs 550 Cr:
1. The Income Tax Department on Saturday said it unearthed unaccounted income worth Rs 550 crore during raids on premises belonging to a Hyderabad-based pharmaceutical company.
2. The search operation was carried out at about 50 locations spanning six states. During the searches, hideouts were identified where second set of books of accounts and cash were found.
3. Incriminating evidence in the form of digital media, pen drives, documents, etc. have been found and seized. Incriminating digital evidences were gathered from SAP@ERP software maintained by the assessee group.
4. During these searches, issues relating to discrepancies in purchases made from bogus and non-existent entities and artificial inflation of certain heads of expenditure were detected.
5. Further, evidence of on-money payment for purchase of lands was also found. Various other legal issues were also identified such as personal expenses being booked in the company’s books and land purchased by related parties below government registration value.
6. The searches have resulted in seizure of unexplained cash amounting to Rs. 142.87 crore so far.
7. The group is engaged in the business of manufacturing of intermediates, active pharmaceutical ingredients (APIs) and formulations and majority of the products are exported to countries like the US and Dubai, and some African and European countries.

11/10/2021
Hardship allowance from developer is a capital receipt: ITAT Indore --Shri Lawrence Rebello (ITA No.132/Ind/2020)
Facts:
1. The assessee being a flat owner in a housing society receives certain sum from developer as corpus fund towards hardship caused to flat owners on redevelopment.
2. The assessee did not offer the sum to tax as he opined that the hardship compensation is a capital receipt and not to be regarded as income as defined U/S 2(24) of the Income Tax Act. However AO regarded the same as a revenue receipt and treated the compensation as income from other sources.
The ITAT held as below:
1. ITAT Mumbai Bench in the case of Smt. Delilah Raj Mansukhani Vs. ITO, ITA No.3526/Mum/201 7, order dated 29.01.2021 by following the order of coordinate bench of the Tribunal in the case of Shri Devshi Lakhamshi Dedhia vs. ACIT in ITA No.5350/Mum/2012 concluded that the amount received by the assessee as hardship compensation, rehabilitation compensation and for shifting are not liable to tax and, therefore, the Bench directed to delete the addition.
2. We are compelled to hold that the benefit received by the assessee in the form of bigger size of flat and amount received as hardship allowance from the developer is a capital receipt, which cannot be treated as revenue receipt for taxing as income

India will abolish the equalization levy imposed on multinational digital companies such as Google, Facebook, Netflix and Amazon among others only after a new mechanism to allocate revenues of such entities among countries under a proposed global tax deal comes into effect. India gets about Rs. 4,000 crores through the equalization levy, which will have to be withdrawn as part of the global tax deal finalized by the Organization for Economic Co-operation and Development (OECD) on Friday. G20 finance ministers will take up the tax deal at their meeting on October 13. Finance minister Nirmala Sitharaman will attend the meeting. The equalization levy of 2-6% is imposed on the turnover of companies such as those cited above that otherwise do not pay taxes in India. “We will withdraw it only after the new tax regime comes into effect,” a senior government official told ET. India has also opposed a move by some developed countries such as the US to provide credit in lieu of equalization levy till the new tax regime comes into effect. India cannot suffer revenue losses in the intervening period until the contours of the framework are finalized, said another government official. The new regime is expected to come into effect only by 2023-24 after the final details are thrashed out. While India can continue to imposed an equalization levy till the proposed global regime is rolled out, no new measures can be introduced under the tax now. India has gradually expanded the scope of the levy first introduced in 2016. The equalization levy of 2% of revenue exceeding Rs.2 crore applies to ecommerce companies that do not have a permanent establishment in India. This is in addition to a 6% levy on payments for digital advertisement services introduced in 2016.The framework has two pillars.
The first proposes multinational enterprises with global sales above 20 billion and profitability above 10% will have to allocate 25% of their profit above the 10% threshold to markets they derive revenues from.
Pillar two introduces a global minimum corporate tax rate set at 15%. The new minimum tax rate will apply to companies with revenue above 750 million and it’s estimated that this will generate around $150 billion in additional global tax revenues annually.

10/10/2021
The Reserve Bank of India (RBI) has included ‘Paytm Payments Bank Limited’ in the Second Schedule to the Reserve Bank of India Act, 1934 vide notification DoR.LIC.No.S926/16.03.006/2021-22 dated September 06, 2021 and published in the Gazette of India (Part III – Section 4) dated October 02-October 08, 2021. As per Section 2(e) of the RBI Act, a ‘scheduled bank’ means a bank included in the Second Schedule.

09/10/2021
ICAI has come out with the revised set of “Code of Ethics” and it is more vibrant and transparent now since the Ethics have been codified in great detail. Though various new concepts have been introduced, one of the interesting features is Responding to Non-Compliance of Laws and Regulations (NOCLAR). Though ICAI via recent announcement has deferred its applicability to 1-4-2022, this is going to be a big challenge in India where the compliance of laws and regulations is challenging even for well-organized corporates. Section 360 of the revised Code talks about the Non-Compliance of Laws and Regulations (NOCLAR). The real estate sector has remained widely unorganized but after the introduction of The Real Estate (Regulation and Development) Act, 2016 (“RERA”). The Act was enacted to protect home-buyers as well as help boost investments. Just like while discharging the duty of statutory auditor for instance under Companies Act, 1956 (“company auditor”); the auditor shall be required now to coordinate with the RERA consultant and also would require working knowledge of the RERA law to understand the Non-compliance of law and regulations (NOCLAR). It is possible that expert help is also required to comment upon NOCLAR in the case of the audited entity. A real estate auditee company working in more than one state shall be required to comply with rules and regulations made by specific State Authorities. Though the RERA Act is one but the Rules and Regulations have been legislated differently. There are variations in State Rules and Regulations which have been modified according to needs.

Based on the recommendations of the Mutual Fund Advisory Committee (MFAC), and in order to further increase the liquidity on exchange platforms, the market regulator, SEBI has revised requirements for mutual funds to undertake on monthly basis from a Minimum of 10 % to 25% of total secondary market trades by value in Corporate Bonds on the Request for Quote (RFQ) platform of stock exchanges. In addition to the foregoing, the Mutual Funds shall now undertake a minimum of 10% of their total secondary market trades by value in Commercial Papers by RFQ platform of stock exchanges.

Instant Mix Flours are classifiable under HSN 2106 90 and taxable at 18% under GST. Case Details: Authority for Advance Rulings, Gujarat Gajanand Foods ( P.) Ltd., In re - [2021] 130 taxmann.com 465 (AAR - GUJARAT). Since, these products were not specifically mentioned under any specific Tariff item, these products of applicant i.e. Instant Mix Flours were appropriately classifiable under HSN 2106 and taxable at 18%.

08/10/2021
All IECs which have not been updated after 01.01.2005 shall be de-activated with effect from 06.10.2021. The list of such IECs may be seen at the given link ( https://www.dgft.gov.in/CP/?opt=dgft-ra ). The concerned IEC holders are provided one final opportunity to update their IEC in this interim period till 05.10.2021, failing which the given IECs shall be de-activated from 06.10.2021. Any IEC where an online updation application has been submitted but are pending with the DGFT RA for approval shall be excluded from the de-activation list.

RBI increases IMPS limit from Rs. 2 lacs to Rs. 5 lacs with effect from 08th October 2021. The banks may take some time to upgrade the systems.

07/10/2021

Indian cryptocurrency exchange CoinSwitch Kuber has raised $260 million in a Series C funding round and is now a unicorn valued at $1.9 billion. New investors Andreessen Horowitz (a16z) and Coinbase Ventures backed the round, along with existing investors Paradigm, Ribbit Capital, Sequoia Capital India, and Tiger Global. This is a16z's "first general investment" in India, not just its first crypto investment. With the fresh capital injection, CoinSwitch aims to onboard 50 million users to its platform and launch new products such as lending and staking. The exchange also plans to expand its team across engineering, product, data, and growth functions. CoinSwitch currently claims to have over 10 million users with a monthly active user base of over 7 million. While the exchange is now a retail-focused platform, it also plans to onboard institutional clients.

Bitcoin ATMs have emerged as a key element in the growth of cryptocurrencies as more investors aim to profit from the sector. In this line, the number of Bitcoin ATMs is on an upward trajectory. According to data acquired by Finbold, in the first three-quarters of 2021, a total of 13,242 Bitcoin ATMs had been installed globally. A significant number of the machines were installed in 2021 Q3 at 4,779, a growth of 7.8% from Q2’s 4,430 ATMs. The first quarter of 2021 recorded an installation of 4,033 new machines.

The second-largest bank in the U.S. has jumped on the Bitcoin bandwagon, saying that the digital currency market is still in early innings and has the potential to transform financial market structures within the next 30 years. In a report published Monday, analysts at Bank of America said that with a market cap of more than two trillion dollars and hundreds of millions of users worldwide, Bitcoin and the cryptocurrency market have "become too big to ignore." The analysts added that the market value of the entire digital currency ecosystem is larger than the GDP of Canada, a member of the Group of 7, which represents the world's seven largest economies. Bank of America said that it is bullish on the long-term prospects of cryptocurrencies.

06/10/2021
One can now use Bitcoin or other cryptocurrencies to buy goods like a rug or for services such as recharging Fastag in India. Cryptocurrency is increasingly gaining in prominence as a payment method among a small yet growing set of businesses in the formal and informal economy in India. They have started to accept Bitcoin, Ethereum, Solana, and other crypto tokens in exchange for goods and services amid the rising popularity of the digital asset in India. In some instances, the use is being dictated by businesses trying to ride on the crypto frenzy that had built up over the Covid-19 pandemic, while for some businesses the acceptance is an attempt to get ahead of the curve. In the absence of any law specifying treatment of cryptocurrency, legal experts said the use of cryptocurrency for payments in India is neither legal, nor illegal. This has not deterred businesses or customers from opting for such transactions. India’s oldest crypto exchange, Unocoin, for instance, has allowed its users to recharge their Fastag accounts using Bitcoin. It is also allowing Bitcoin transactions for bill payments, and e-commerce. Since going live with Bitcoin top-ups for Fastag, it has seen transaction to the tune of Rs.8-10 lakh in the last 2-3 weeks, 50% of which were made by those aged over 35, Sathvik Vishwanath, cofounder of Unocoin, told ET.

Moody's upgrades India’s sovereign outlook to ‘stable’. Moody's Investors Service on Tuesday upgraded India’s sovereign outlook to stable from negative while maintaining its lowest investment grade rating of Baa3, holding that receding financial sector risks will allow growth to support debt stabilization. 1. With higher capital cushions and greater liquidity, banks and non-bank financial institutions pose much lesser risk to the sovereign than Moody's previously anticipated.
2. While risks stemming from a high debt burden and weak debt affordability remain, Moody's expects that the economic environment will allow for a gradual reduction of the general government fiscal deficit over the next few years.

On the Coming Friday, representatives from 139 countries, accounting for over 90 per cent of global GDP, will be huddled in Paris to finalize a global tax deal which will give rights to countries, including India, to tax large digital players including Google, Facebook, Netflix, and Microsoft. The outline of the framework was finalized in July and a consensus-based agreement is expected on October 8 for the deal to come into effect from 2023.

Government ordered an investigation of cases pertaining to the ‘Pandora Papers’, the latest leak of offshore financial records. The probe will be monitored through a multi-agency group, headed by the CBDT chairman, with representatives from CBDT, enforcement directorate, the Reserve Bank of India and the Financial Intelligence Unit, the finance ministry said in a statement.

Food Safety and Standards Authority of India issued an Order dated September 30, 2021 regarding mandating the mentioning of FSSAI License/ Registration number on receipts /invoices /cash memo/ bills etc. by food businesses on sale of food products with effect from January 01, 2022.

05/10/2021
The blocking of the E-way bill generation facility had been temporarily suspended by the Government on account of Covid pandemic. In terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for consecutive two tax periods or more, whether Monthly or Quarterly. 2. The blocking of the EWB generation facility has now resumed on the EWB portal for all the taxpayers.

What have Pandora papers revealed about Indian defaulters?
1. Background: These are 11.9 million leaked files from 14 global corporate services firms which set up about 29,000 off-the-shelf companies and private trusts in not just obscure tax jurisdictions but also countries such as Singapore, New Zealand, and the United States, for clients across the world. The leaked files reveal opaque offshore structures and trusts shrouded in secrecy created in tax havens such as Panama, Dubai, Monaco, Switzerland and the Cayman Islands.
2. A businessman from the richest Indian business family allegedly has 18 off shore companies in Jersey, British Virgin Islands and Cyprus. However in Feb 2020, following a dispute with Chinese state-controlled banks, he had told a London court that his net worth was zero.
3. There are several cases of big-ticket loan defaulters who declared themselves bankrupt before recovery tribunals – some have even been arrested – but hold billions via offshore entities abroad.
4. The list includes a set of Mumbai-based businessmen in the real-estate sector who owe Indian banks more than Rs 88,000 crore.
5. Also in the housing sector, is a Delhi-based businessman named in the 2G Spectrum case, who, the Pandora papers reveal, set up two BVI companies and a family trust along with his wife.
6. There is also a Mumbai-based jeweller, whose firm has defaulted to the tune of Rs 500 crore on loan repayments to 19 Indian banks, and, records show, set up a web of offshore firms with cross holdings to route funds along with a billionaire Saudi-businessman linked to a Mexican drug lord.
7. Then there is a Kolkata-based businessman, slapped with the biggest ever Foreign Exchange Management Act (FEMA) notice of Rs 7,220 crore, who has opened offshore firms in the BVI through Trident Trust Company, records from The Pandora Papers reveal.
8. A biotech entrepreneur has been mentioned in connection with her husband John McCallum Marshall Shaw who has come on radar. He is a British citizen and a key person associated with a trust he set up was barred by the Securities and Exchanges Board of India (Sebi) for insider trading in July 2021.
Note: Not all offshore accounts are illegal.
Source: The Indian Express

Income Tax raises a demand of Rs 8,334 crores on Grasim:
1. Back in 2017, NCLT Ahmedabad had approved the merger of Aditya Birla Nuvo and Grasim Industries. Demerger of Grasim’s financial services undertaking to Aditya Birla Capital (ABCL) was also part of the restructuring exercise which received the tribunal’s approval.
2. The tax department’s view is that demerger of Grasim’s financial services undertaking to ABCL did not comply with the definition of ‘demerger’ as under section 2(19AA) of the Income Tax Act. Compliance with this section is necessary to assess the transaction as tax neutral.
3. The DCIT has valued the shares issued by the resulting company (ABCL) at Rs 24,037 crore as the sale consideration for transfer of undertaking, and made addition of capital gains of Rs 22,772 crore to the income of the company.
4. In March 2019, the company had received a Rs 5,872-crore dividend distribution tax (DDT) demand linked to the same corporate restructuring arrangement, and obtained a stay order from the Bombay High Court.
Source: Grasim’s Intimation to BSE and NSE under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated 1st Oct, 2021.

04/10/2021
Non payment of tax is not a ground for rejection of registration of charitable trust: ITAT -Shree Lakadipool Vitthal Mandir v. CIT (E), ITA No. 568/PUN/2020
Legal point: Whether registration U/S 12AA of the Income Tax Act can be denied to a charitable trust merely because appropriate taxes have not been paid on the voluntary contributions received?
ITAT held as below:
1. Just because, the taxes were not paid on the donations/voluntary contributions received cannot be the ground for rejection of application u/s.12AA of the Act.
2. These things can be examined by the Department and scrutinized at the assessment stage.
3. When all the requirements of registration u/s.12AA of the Act have been satisfied by the assessee trust, registration therein should be granted.
Conclusion:
1. This judgement is in line with the Allahabad High Court judgement in Fifth Generation Education Society v. CIT, (1990), wherein it was held that the Commissioner is not to examine the application of income at the stage of application made by assessee for granting registration u/s.12AA of the Act.
2. Bombay High Court in the case of CIT v. Manekji Mota Charitable Trust (2019) 267 TAXMAN 0016 (Bombay) has held at the time of the registration of the trust, the question of application of income of the trust is premature.
3. The Commissioner may examine whether the application was made in accordance with the requirements of Section 12AA r.w.r 17A and whether Form 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not but it is improper to examine the application of income.

The Constitution (One Hundred and Fifth Amendment) Act, 2021 has come into force from 15th August, 2021, a recent notification of the Ministry of Social Justice and Empowerment provides. The 105th Amendment Act which received the assent of the President last month restores the power of the State Governments and Union Territories to identify and specify Socially and Economically Backward Classes (SEBCs).

03/10/2021

With over $160 billion inflows into the cryptocurrency market in a little more than half a day, the market has risen from $1.901 trillion to $2.065 trillion, pushing Bitcoin (BTC) over $47,000 as ‘Uptober’ gets underway. Despite China outlawing cryptocurrencies earlier this week, the market has increased, on October 1 in what the crypto community has dubbed ‘Uptober’ concerning the historically successful fourth quarter for BTC. On the other hand, major countries such as the US (-5.2%), UK (-3.1%), Canada (-3.9%), Australia (3.7%), and Argentina (-13.4%) are all experiencing negative central bank rates.

The rapid development and growing adoption of crypto assets represent a threat to financial stability, according to the latest Global Financial Stability Report by the International Monetary Fund (IMF) published on October 1. Meanwhile, in a blog post published on August 29, the International Monetary Fund expressed worry about Bitcoin and other cryptocurrencies becoming national currencies. It seems that the IMF is worried about the increasing number of nations, such as El Salvador, who recognize Bitcoin as their national currency and how this may impact their global operations.

El Salvador continues to make strides in the cryptocurrency sector after officially mining the first Bitcoin using volcanic energy. The milestone was revealed through a tweet by President Nayib Bukele, who shared a screenshot of the mined Bitcoin while noting that further tests and installation are still ongoing.

Bitcoin (BTC) surged over $44,000 on Friday, 1 October, indicating that buyers are gaining momentum in the market. Historically, Bitcoin has generated positive returns in the fourth quarter of the year. Indeed, many experts, such as renowned full-time cryptocurrency trader Michael van de Poppe, has declared: “October. Q4. Party is beginning.” In addition, crypto trading analyst Galaxy anticipates that Bitcoin’s value will increase again in the fourth quarter, with a bull run to $100,000 beginning in November.

02/10/2021
Delhi Govt decided to continue with the relaxation of 20% in respect of circle rates on stamp duty registeration for residential, commercial and industrial property; till 31.12.2021 vide cabinet decision no 3035 dated 29.09.2021

In order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021, the CBIC has issued various Notifications dated 30.09.2021 as under:
1. Changes in GST Rates on Services w.e.f October 1, 2021- Notification No. 06/2021 Central Tax (Rate)
2. Certain Services exempted w.e.f October 1, 2021- Notification No. 07/2021 Central Tax (Rate)
3. Changes in GST Rates on Goods w.e.f October 01, 2021– Notification No. 08/2021 Central Tax (Rate)
4. CBIC clarifies that, Seeds, fruit and spores, of a kind used for “sowing” only shall be exempted— Notification No. 09/2021 Central Tax (Rate)
5. CBIC notified RCM applicability on supply of mentha oil by unregistered person to registered person— Notification No. 10/2021-Central Tax (Rate)
6. CBIC reduces rate of GST on Fortified Rice Kernel (Premix) supply for ICDS or similar scheme for free distribution to economically weaker sections of the society— Notification No. 11/2021 Central Tax (Rate)
7. CBIC extends concessional rate benefit to specified drugs used in COVID treatment till December 31, 2021– Notification No. 12/2021-Central Tax (Rate)
8. Compensation Cess to be levied on Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice w.e.f October 01, 2021– Notification No. 01/2021 Compensation Cess (Rate)

01/10/2021
Noida has received the maximum investment in the last four and a half years among all districts in India. The city, which comes under the Gautam Budh Nagar district, received about Rs 64 thousand crore investments in the said period that helped it in creating more than 4.5 lakh jobs.
1. Noida has now become one of the largest industrial investment districts in the country.
2. The three development authorities have sold more than 3 thousand pieces of land. Noida is managed by three authorities - District Gautam Budh Nagar namely Noida Industrial Development Authority, Greater Noida Industrial Development Authority and Yamuna Expressway Industrial Development Authority.
3. More than 3 thousand investors are setting up their units in Noida by investing Rs 64,362 crores.
4. Some of the notable investments have come from investors such as Samsung, TCS, Microsoft, and Data Center, among others. More than 39,146 acres of land has been bought at Rs 2500 crores to set up mega-data processing centres in the city. Microsoft has also alone bought 60 thousand acres of land, with plans to invest Rs 1 thousand crores in the IT sector. Also, INGK Company has purchased 47833 acres of land to invest Rs 5500 crores in the real estate business. Moreover, Westway Electronics, Dixon Technology, Vivotex Project, Roto Pumps Ltd., Adverb Technology, Surabhi Group, Ikea Solutions, Yun Flex Ltd. have also bought land in Noida.
5. Thousands of crores are being invested through MSME Park, Apparel Park, Toy City, Medical Park. Film City and Jewar Airport are also being established under the area of Yamuna Authority.

The Ministry of Home Affairs (MHA) has extended the deadline till December 31 for NGOs to apply for renewal of their Foreign Contribution (Regulation) Act (FCRA) registration certificates. The registration is mandatory for associations and NGOs to receive foreign funds. The Ministry had earlier given a relief up to September 30 to NGOs whose registration was expiring between September 29, 2020-September 30,2021. The latest order says the deadline for NGOs certificates or registration expiring between September 29, 2020 to December 31, 2021 could apply for renewal till December 31, 2021.

Several exporters who had availed government schemes for lowering tax outgo against promised exports quantity have reached out to the government, seeking concessions citing continuing Covid-19 disruptions. Exporters claim they have not been able to meet export obligations due to the pandemic. They say the government should either allow them to continue to avail the scheme by extending their time period or give them tax credit that they can adjust against future tax liabilities. Advance authorization, for instance, is a scheme whereby a company can import raw materials without paying duties on that if it can demonstrate that these raw materials are to be used in a final product that will eventually be exported. EPCG is similar to advance authorization but it has certain different conditions to be fulfilled by the companies.

30/09/2021
Income Tax Alert: In compliance with Section 139A(5)(c) of the Income Tax act all the sellers raising an invoice of INRs 2,00,000/- or more should display the 10 digit PAN number (of both vendor as well as a customer) on each such invoice as a separate field. This is with effect from 1st October 2021.

Goods and service tax network had issued News and Update dated September 30, 2021 regarding all E Way Bill & E Invoice users that downtime of all the E Way Bill & E Invoice operations (for all modes - Web, API, Bulk, Mobile & SMS) is scheduled between 11:00 PM on October 02, 2021 to 7:00 AM on October 03, 2021 due to maintenance activity.

SEBI has extended the deadline for making demat and trading accounts KYC-compliant to December 31, 2021, from September 30, 2021. As per a circular issued by the National Securities Depository Ltd (NSDL) on September 28, 2021.

Supreme Court: Chairman/MD not vicariously liable for criminal acts of company: Case Name : Ravindranatha Bajpe Vs Mangalore Special Economic Zone Ltd. & Others Etc. (Supreme Court of India)

29/09/2021
The Delhi government’s current scheme of 20% reduced circle rates for all categories of properties, which was to be in effect till September 30, is likely to be extended till December 31, said a senior government official on Tuesday. Circle rates are the minimum price at which a property can be bought or sold. The proposal for extending the scheme is awaiting approval of the cabinet, the senior official said, adding that the move is aimed at boosting the real estate market, which has seen a slump as a result of Covid-19, and increasing government revenue.

Global cryptocurrency users have surpassed 280 million with India accounting for the highest figure, according to a recently published report by TripleA and updated on September 20, 2021. The data shows that India currently has over 100 million digital currency users or 7.3% of the country’s population. Elsewhere, the U.S. has 27.4 million crypto users, followed by Russia at 17.3 million, while Nigeria ranks fourth at 13 million. With 10.3 million users, Brazil lies in the fifth spot. Interestingly, the cumulative number of crypto users from the US, UK, and Russia (48.2 million) is still more than two times less compared to India.

Crypto king Bitcoin’s share in the total cryptocurrency market cap has plummeted by 41.1 per cent this year so far – from around 68 per cent at the beginning of 2021 to near 40 per cent ($813 billion) as of Monday, according to the data from CoinMarketCap, even as the market share of other cryptos such as Ethereum, Cardano, Tether, and more has jumped. For instance, Ethereum grew from 10 per cent to nearly 19 per cent while Cardano jumped from 0.70 per cent to 3.67 per cent and Tether from 2.77 per cent to 3.67 per cent. The overall market cap of cryptocurrencies currently stood at $1.91 trillion. New challengers like Proof-of-Stake protocols and meme tokens showed great potential in May, especially after Bitcoin mining came under more scrutiny.” The July 2021 report also noted that the number of global crypto users had reached 221 million in June 2021 and that it took only four months for the global crypto population to double from 100 million to 200 million.

Many platforms allow to start SIPs in cryptocurrencies with just Rs 100-Rs 500 per instalment. Moreover, many investors opt for the daily SIP over the weekly or monthly option as the price of cryptocurrencies may fluctuate heavily within a timeline of one month. The investor may consider investing in cryptocurrencies through SIP if one is a first-time investor who seeks to invest small amounts. However, platforms may offer the SIP facility only for the leading cryptocurrencies. Cryptocurrencies are one of the most volatile instruments available for investment. Many times investors are driven by their impulses. However, this may be dangerous. SIP may help control this impulsive investment. Due to large fluctuations in their prices, it becomes crucial to strategize the entry and exit points of these investments. In this context, an investment technique like SIP which reduces exposure to market volatility risk of the investor is extremely helpful. SIP will also help in avoiding impulsive investment in crypto. Apart from SIP, other risk-mitigating strategies which are getting popular for investing in cryptocurrencies include investing in a basket of cryptocurrencies or opting for index funds. There are also index funds that only have exposure to the top 10 or top 20 cryptocurrencies. However, care to be exercised since most of these investment products /platforms are not regulated in India.

Extension of due date of online filing of audited accounts in Maharashtra: Due Date of online Filing of Audited Accounts to Charity Commissioner in State of Maharashtra for the financial year 2020-21 has been extended till 30/11/21 as per Order No. 590/2021 dated 27.09.2021.

28/09/2021
More than 2.3 lakh shell companies have been identified by authorities in the last three years. Data mining post demonetization had revealed close to 3 lakh shell companies involved in hawala transactions. Using ‘shell’ companies to launder money or dodge tax will become tougher with a tribunal ruling last week shifting the ‘burden of proof’ from the income tax (I-T) department to the taxpayer dealing with such private entities which, though legal, simply serve as conduits for fund transfers. Till now, serval firms which received large, unexplainable investments from obscure shell companies escaped the taxman’s glare as long as they could prove that the entity sending the money exists, file tax returns, and the funds were transferred through banking channels. Things will be less simple from now on, thanks to the ruling by the Mumbai bench of Income Tax Appellate Tribunal (ITAT) which questioned the investment received by a company on the ground that it was a beneficiary of a sophisticated laundering racket involving the investor and layers of companies with bank accounts in multiple banks.

Companies Act update:-
1. Extension of timeline to 31st October 2021 for submission of Cost Audit Report under 6(5) of Cost (Records and Audit) Rules, 2014 for the FY ended on 31.3.2021.
2. Below are the relevant dates for One Person Company Annual Filing-
a) E-Form AOC-4: Within 180 Days of the close of Financial Year. [Reference: Section 137(1) of Companies Act, 2013]
Eg. F.Y. 2020-21: The due date for Form AOC-4 shall be 27th September, 2021. If we count 180 days from 1st April 2021.
b) E-Form MGT-7: Within 60 days from the date of AGM. [Reference: Section 92(4) of Companies Act, 2013]
Eg.: F.Y. 2020-21, If AGM is on 30/09/2021 then the due date of Form MGT-7 would be 28th November, 2021. As we know, OPC does not require to hold AGM, yet the due date for filing shall be 60 days from the completion of 6 months from the end of Financial Year, that means the due date shall be 28th November, 2021.

27/09/2021
DVat department has started sending notices for attachment of bank accounts for old vat / cst demands pertaining till 2017-18. The old demands pending and reflecting on the vat system are being treated as recoveries under Land Reforms Act and banks are getting attached to recover such outstanding demands. Sometimes, The dealer gets updation from the bank directly that the account has been attached and no attachment notice is received by the dealer from the vat department.

Gst Alerts

1. Wef 1.10.21, Dynamic QR Code Mandatory on B2C Invoices for turnover above 500 cr. Otherwise, Penalty to be levied from 1.12.20.
2. No need to carry tax invoice in case of e-invoice as it can be verified by proper officer from QR code with IRN. Circular 160/16/2021-GST of 20.9.21.
3. Wef 1.1.21, relevant FY for claim of ITC u/s 16(4) shall be as per date of Debit note (& not of underlying invoice). Circular 160/16/2021-GST of 20.9.21.

26/09/2021
Gist of GST Notifications issued on 24.09.2021
Not No. 35/2021 - Dated: 24-9-2021 - CGST
A) Post Registration furnishing of bank account details (Rule 10A) amended w.e.f. the date as may be notified.
Bank a/c needs to be in the name of the registered person and obtained on PAN of the registered person
- in case of a proprietorship concern, the PAN of the proprietor to be linked with the Aadhaar number of the proprietor

B) New Rule 10B (Aadhaar authentication for registered person) inserted w.e.f. the date as may be notified.
- The Rule mandates Aadhaar authentication with Aadhar/specified documents for the registered persons (unless exempted) in the following cases:
i) Filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23
ii) Filing of refund application in FORM RFD-01 under rule 89 (i.e Application for refund of tax, interest, penalty, fees or any other amount.)
iii) Refund under rule 96 (i.e. Refund of integrated tax paid on goods / services exported out of India) of the integrated tax paid on goods exported out of India - Non-LUT cases

C) Amendment in Rule 45 (i.e. Conditions and restrictions reg. Job-workers ) w.e.f. 01.10.2021.
- Changing the periodicity of submission of ITC-04 Return.
a) Half yearly return (Apr-Sept and Oct-Mar) in respect of a principal whose Agg. Turnover during the immediately preceding FY exceeds INR 5 cr.; and
b) a FY in any other case

D) Amendment in Rule 59 (i.e. Filing of GSTR-1) w.e.f. 01.01.2022.
- Restriction in filing of FORM GSTR-1, if FORM GSTR-3B not furnished for the preceding month (earlier it was preceding 2 months)
- Removal of provisions of not allowing filing of GSTR-1/3B/IFF if restricted as per Rule 86B (i.e. 99% ITC utilisation)

E) Insertion of New Rule 96C (Bank Account for credit of refund) w.e.f. the date as may be notified.
- For receiving the refund, the bank account of the applicant needs to be in its name and obtained on his PAN. In case of a proprietorship concern, the PAN of the proprietor to be linked with the Aadhaar number of the proprietor

Not. No. 36/2021 - Dated: 24-9-2021 - CGST.
- Aadhar Authentication as per N.N. 03/2021-Central Tax dated 23.02.2021 also exempted for the Existing Registered persons as per Sec. 25(6A) of the GST Act

CBDT order dated 24-09-2021 for Regularisation of returns of income verified through Electronic Verification Code (EVC) which are otherwise required to be verified through Digital Signature (DSC) as per Rule 12 of the Income-tax Rules, 1962.

25/09/2021
The Supreme Court has recalled the suo moto of April 27, 2021, which had extended with effect from March 14, 2021 the limitation period for filing of cases in view of the COVID second wave.
Following are the observations of the Hon SC:
I. In computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 02.10.2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03.2021, if any, shall become available with effect from 03.10.2021.
II. In cases where the limitation would have expired during the period between 15.03.2020 till 02.10.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 03.10.2021. In the event the actual balance period of limitation remaining, with effect from 03.10.2021, is greater than 90 days, that longer period shall apply.
III. The period from 15.03.2020 till 02.10.2021 shall also stand excluded in computing the periods prescribed under Sections 23 (4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings.
IV. The Government of India shall amend the guidelines for containment zones, to state.
"Regulated movement will be allowed for medical emergencies, provision of essential goods and services, and other necessary functions, such as, time bound applications, including for legal purposes, and educational and job-related requirements."

IT department bound to maintain confidentiality of material seized from Newslaundry: Delhi HC
1. During a survey conducted at the premises of Newslaundry U/S 133A of the Income Tax Act, phone and laptop of the CEO as well as a few office machines were seized.
2. So this prompted the assessee to appear before the High Court to preserve the private data present on the devices as enshrined U/S 138.
3. The IT department submitted that the devices are in safe custody and would be used only for the purpose of investigation.
4. The Hon HC held that the above undertaking given by the department is accepted and the department is held bound by the same.

24/09/2021
Who needs to file Form 10-IE?
1. Section 115BAC states that a person opting to pay tax under the new regime has to furnish Form 10-IE to the Income Tax department before filing the Income Tax Return for the relevant Assessment Year.
2. However as per Sec 115BAC(5), there is no need to file Form 10-IE for persons having no income from business or profession.
3. Individuals having business income are not eligible to choose between the new and old tax regime every year. Once they have opted for the new tax regime, they only have a one-time option of switching back to the old tax regime in their lifetime.

23/09/2021

Supreme Court To Recall Suo Motu Extension Of Limitation Period With Effect From October 1. The Court said that the suo motu extension of limitation period will stand withdrawn with effect from October 1, 2021. It also indicated that a buffer period of 90 days will be given with effect from October 1. The Court said that it will pass an order to this effect, setting out the terms and conditions. A bench comprising Chief Justice of India NV Ramana, Justices L Nageswara Rao and Surya Kant made these observations in the suo motu case In Re Cognizance For Extension of Limitation.

CBIC has integrated the application and approval process for Manufacturing in Bond Scheme (MOOWR) with National Single Window.

FSSAI License/ Registration number is mandatory on Cash receipts/ Invoices and bills by all food businesses wef 01st October 2021.

22/09/2021

Gst reconciliation advisories for FY 2020-21 ITC

It is advised to reconcile ITC of FY 2020-21 as per books of accounts with GSTR 2A so that unclaimed ITC in GSTR-2A can be claimed.
ITC for the FY 2020-21 can be claimed in the GSTR-3B of September’21 till its due date, i.e. 20.10.2021.
Rule 36(4) allows to avail the ITC as per eligible ITC appearing in GSTR-2A plus 5%. Therefore, in our opinion, avail and reverse the unclaimed ITC for FY 2020-21 in the GSTR-3B upto September 21.
Pls follow-up with the suppliers, whose ITC is not appearing in GSTR-2A since it will result in litigations in the future.
Last date for their correction is due date of GSTR-1 of September’21, i.e. 11.10.2021
GST Reconciliation in Form GSTR-9C of FY 2020-21-The Last date of GST Reconciliation in Form GSTR-9/9C for FY 2020-21 is 31.12.2021, it is advised to timely reconcile the GST liability and ITC as per books and returns.
Export Reconciliation- It is advised to reconcile the export turnover of books of accounts, GST returns and ICEGATE.

The US Securities and Exchange Commission could greenlight a Bitcoin futures ETF as early as October this year, said Bloomberg’s Senior Commodity Strategist – Mike McGlone. He also doubled down on his $100,000 price prediction for BTC by the end of the year, adding that the cryptocurrency is on its way to replace gold, similarly to how the car outplaced the horse as the most utilized transportation tool.
What is Ever grande group and what went wrong?

In 2019, it was ranked 138th in the Fortune Global 500 list – a list of the 500 biggest global companies in terms of revenue.
As per the company’s annual report for the year 2020, it recorded a gross profit of nearly $19 billion while the net profit was around $5 billion.
It has a debt of around $304 billion. The company was caught out by new limits that China’s regulators imposed on real estate-related borrowing as part of the Communist Party’s campaign to reduce reliance on debt
On September 14th, the company said that it is looking at selling assets and is also in discussion with potential investors but is uncertain as to whether the Group will be able to consummate any such sale.
It also stated that 2 of its subsidiaries failed to discharge their guarantee obligations of $144.5 million as scheduled for the wealth management products issued by third parties.
India’s top banker Uday Kotak has likened the crisis to the Lehman crisis.

21/09/2021
The New Wage Code could come into effect in October and this could bring significant changes to salary, leaves, working hours of government employees and private sector employees:

Earlier, the new Wage Code was due to be implemented from April 1, but due to non-receipt of draft rules from the state governments, it was put on hold.
The New Wage Code will increase employee working hours from 9 to 12. According to the Ministry of Labour and Employment, the 48-hour working rule a week will come into effect.
Definition of wage has to comprise at least 50% of total salary that the employee is getting. This may result in a change in the basic pay which, in turn, will result in a change in the other components such as provident fund contribution, gratuity, whose calculation is based on the definition of basic wages.
Employees' earned leave could increase from 240 to 300.
All types of workers in the country will get minimum wages i.e. minimum salary. All employees in the organised and unorganised sector will also get coverage of the ESI. It will allow women to work in all kinds of businesses, also allow them to shift nights.
There will be a consequent rise in gratuity and PF contribution of the employee. Hence, while the take home pay of the employees may be reduced, the Gratuity and PF component may rise.

Gist of GST Important Circulars issued on Contentious issues on 20.09.2021 further to 45th GST Council Meeting clarifying following issues:
What is Ever grande group and what went wrong?

Circular 159- Scope of Intermediary Services
Circular 160-
- Cut-off date for availing ITC in Debit Notes II. Whether physical invoice to carry when e-invoice has been issued in the movement of goods. III. Scope of restriction of GST refund when exports are subjected to NIL Export Duty
Circular 161- Scope of restrictive condition for denial of benefits of "Export of Services" for transactions between Holding and Subsidiary Companies incorporated in/ outside India

20/09/2021
Meeting of BRICS tax authorities held virtually:

The Heads of Tax Authorities of the BRICS countries, namely the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa held a virtual meeting on 15th September 2021.
The BRICS Tax Authorities engaged in discussion on the challenges faced by BRICS tax administrations in the digital era, coupled with outbreak of COVID-19 pandemic, sharing experience and devising strategies to overcome those challenges.
The broad theme of the meeting was redefining business processes of tax administration amidst challenges posed by COVID-19 and in the digital era.
During the meetings, the tax authorities also exchanged opinions and views based on existing commitment to the principles of mutual respect, consolidation and continuity as stated in the XIII BRICS Summit, New Delhi Declaration issued on 9th September, 2021.
The discussion took place around relevant topics which include digitisation of tax administration, leveraging technology for tackling tax evasion, changing role of tax administration from enforcement to service, preparedness and strategies to deal with challenges of COVID-19 and evolution of tax administration to enhance voluntary compliances by taxpayers.

CBDT raid on a prominent actor:

As per a press release by the CBDT, The Income Tax carried out search and seizure operations at the premises of a prominent actor in Mumbai and the premises of a Lucknow based infrastructure company.
It said the actor had entered into a joint venture with the Lucknow located infrastructure group and "invested substantial funds", and said incriminating evidence was unearthed pertaining to tax evasion and irregularities in the account books.
The search has revealed that the said group is involved in bogus billing of sub-contracting expenses and siphoning off of funds to the tune of Rs 65 crores.
The infra group has entered into dubious circular transaction to the tune of Rs 175 crore with an infrastructure company based in Jaipur.
The charity foundation incorporated by the actor on July 21, 2020 has collected donations to the tune of Rs 18.94 crore from April 1, 2021 till date, out of which it has spent around Rs 1.9 crore towards various relief work and the balance of Rs 17 crore has been found lying unutilised in the bank account of the foundation till date.
Funds to the tune of Rs 2.1 crore have also been raised by the charity foundation from overseas donors on a crowdfunding platform in violation of FCRA regulations.
CBDT said that the actor has accepted to have issued cheques in lieu of cash. There have been instances where professional receipts of the actor have been camouflaged as loans in the books of accounts for the purpose of evasion of tax.
Cash of Rs 1.8 crore has been seized during the raids and 11 lockers have been placed under "prohibitory orders
A total of 28 premises in Mumbai, Lucknow, Kanpur, Jaipur, Delhi, and Gurgaon are being covered as part of the search operation. Source: CBDT Press Release dated 18th September, 2021.

State Bank of India (SBI) has reportedly blocked payments to cryptocurrency exchanges using its Unified Payments Interface (UPI). Payment processors have been told to disable the bank’s UPI for crypto merchants. Payment Processors Instructed to Disable SBI UPI for Crypto Firms. State Bank of India, the country’s largest bank, has reportedly “blocked the receipt of funds by crypto bourses on its UPI platform,” the Economic Times reported Wednesday, citing sources in the payments industry.

19/09/2021
Cryptocurrency Exchange WazirX (WazirX) registered a growth of 2,648 percent in user sign-ups from Tier-2 and Tier-3 cities in India. Based on a report prepared by payments gateway firm RazorPay, WazirX has said that of the total user signups done on its platform so far in 2021, about 55 per cent of the signups were from tier-2 and tier-3 cities. At the same time, 2375 percent increase has been registered in user signup from Tier-1 cities. In a statement, WazirX said that cheap and fast internet, coupled with the continuous fall in smartphone prices, has accelerated internet penetration in semi-urban areas and rural areas of India. The adoption of digital has further accelerated in these areas with the lockdown due to the pandemic. Moreover, it has also been the biggest driver of crypto adoption in India as it has led people to find new ways to earn online and diversify their portfolio. WazirX claims to have over 7.3 million users. WazirX has recorded over $21.8 billion in trading volume so far in 2021
Time limit for intimation of Aadhaar number to the Income tax Department for linking of PAN with Aadhaar has been extended from 30th September, 2021 to 31st March, 2022. The due date for completion of penalty proceedings under the Act has also been extended from 30th September, 2021 to 31st March, 2022. Further, the time limit for issuance of notice and passing of order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988 has also been extended to 31st March, 2022.
Notification no. 113 of 2021 dated 17th September, 2021 has been issued in this regard and can be accessed at www.incometaxindia.gov.in.

18/09/2021
The rupee closed 4 paisa higher at 73.48 against the US dollar on Friday, tracking a broad weakness in the American currency overseas. The local unit opened flat at 73.49 against the green-back. During the session, the domestic unit witnessed an intra-day high of 73.42 and a low of 73.55. On a weekly basis, the rupee gained 2 paisa against the American currency. Meanwhile, the dollar index, which gauges the green back’s strength against a basket of six currencies, fell 0.12% to 92.82. Brent crude futures, the global oil benchmark, fell 0.62 percent to USD 75.20 per barrel. Foreign institutional investors (FIIS) were net buyers in the capital market on Thursday as the purchased share worth Rs. 1,621.88 crores, as per exchange data.
To help importers of goods, and recipients of supplies from SEZ, search Bill of Entry details, which did not auto-populate in GSTR-2A, a self-service functionality has been made available on the GST Portal that can be used to search such records in GST System, and fetch the missing records from ICEGATE. Please note that it usually takes 2 days (after reference date) for BE details to get updated on GST Portal from ICEGATE. This functionality should, therefore, be used if data is not available after this period.
Note: The reference date would be either Out of charge date, Duty payment date, or amendment date – whichever is later.
The administrative committee, which runs the Padmanabhaswamy temple, possibly the richest temple in the world, on Friday, claimed in court that the temple was in financial problems and demanded that the account of the temple and the trust, which previously ran it, must be audited. Court amicus Gopal Subramanian had, in 2014, suggested a special audit by former CAG Vinod Rai into the accounts of the temple and the trust for the past 25 years. That hasn’t been done yet. On Friday, the administrative committee in charge of the temple affairs told the court that the temple was facing financial problems and that the accounts of the temple and the temple trust for the past 25 years must be audited.

17/09/2021
As per the recent tweet of CNBC-TV18, the GST Council approves special composition scheme & capacity-based GST to be levied on certain items.

Council agrees to introduce special composition scheme for brick kiln sector from April 2022.
Council prescribes GST rate of 6% without ITC, similar to services sector for brick kiln.
Council agrees to raise GST on supply of bricks to 12% from 5% with ITC from April 2022
To bring in GST liability payment under reverse charge mechanism on mentha at 1st stage of supply
Council agrees to block IGST refund route on export of mentha
Council extends GoM’s time period by 3 mths to examine capacity-based levy on pan masala & tobacco products

Advisory for Taxpayers regarding Generation of EWB where the principal supply is Supply of services dtd 16/09/2021

Representations have been received from various trade bodies stating that they are not able to generate EWB bill for movement of those goods where their principle supply is classifiable as a service, since there is no provision for generating E-way Bill by entering SAC (Service Accounting Code-Chapter 99) alone on the E- way bill portal.
To overcome this issue, the taxpayers are advised as below:
a) Rule 138 of CGST Rules, 2017, inter alia, states “Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees….” Thus, E way bill is required to be generated for the movement of Goods.
b) Therefore, in cases where the principal supply is purely a supply of service and involving no movement of goods, the e-way bill is not required to be generated.
c) However, in cases where along with the principal supply of service, movement of some goods is also involved, e-way bill may be generated. Such situations may arise in cases of supply of services like printing services, works contract services, catering services, pandal or shamiana services, etc. In such cases, e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of services involved.

16/09/2021
The Last date for submitting applications for Scrip based FTP Schemes and the validity period of the duty credit scrips. As per Ministry of Commerce’s notification, The last date to submit the following applications shall be December 31, 2021 as below:
FTP Scheme Application Period

MEIS— Goods Exports made in the period 1st July 2018 to 31st Dec 2020
SEIS— Service Exports rendered in FY 18-19 and FY 19-20
2% Additional Adhoc Incentive— Exports made in the period 1st Jan 2020 to 31st Mar 2020
ROSCTL— Exports made from 07 March 2019 to 31st Dec 2020
ROSL— Exports made up to 6th March 2019

Service Category and Rate are yet to be notified for FY 19-20 Points to be noted:

No applications shall be allowed to be submitted post this date, and they would become time barred.
Late cut provisions shall also not be available for submitting the claim applications at a later date.
Revised late cut provisions for the past periods has been prescribed for applications submitted upto December 31, 2021.
The validity period of aforementioned scrips to be issued on or after September 16, 2021 shall be 12 months from the date of issue as against the earlier validity of 24 months.

15/09/2021
The American e-commerce giant payment app Amazon Pay India is ready to offer deposit services to its customers. http://www.cajatinminocha.com/resource/Articles/Image/Amazon_FD_Mutual_Funds.pdf
GST Council meeting on Friday, the first physical meeting in more than 20 months, will deliberate on levying the Covid cess on pharmaceuticals and the power sector for intra-state supplies in Sikkim besides extending the states compensation period beyond 2022.
The GST fitment panel’s recommendation to raise the GST on solar modules from 5% to 12% has sent shockwaves across the renewable energy industry, as companies are worried that it will make a lot of projects unviable. Currently, the GST on solar panels is 5%. “A straight 12% GST for the solar industry will prove to be a catastrophic decision for a huge segment in the renewable energy industry,” said an industry executive.

14/09/2021
Last date to deposit Second instalment of Advance tax for the financial year 2021-22 is 15th September 2021. On 15th September 2021, the second instalment of advance tax payment is required for FY 2021-22 and by this date, 45% of advance tax liability has to be paid. compute your advance tax liability and before time surely pay the Advance tax instalment to avoid penal interest.
The government is likely to issue rules on settling retrospective tax cases this week after evaluating feedback from companies in the draft norms, a senior official said. The Centre is hopeful of a quick settlement of cases as the companies have indicated a willingness to indemnify the government against any future claims. In September 7, Cairn Energy Signalled it was nearing a solution to its dispute, telling shareholders that it expects $1.06 billion in a settlement with the Indian government. The other 16 companies, including Vodafone, are yet to publicly indicate their intent. Rules are being firmed up after comments from stakeholders. These should be announced soon,” the official said. After the final notification, the government is hopeful of settling some cases over the next six-eight weeks. The finance ministry had on August 28 issued draft rules, seeking comments by September 4 from those engaged in retrospective tax disputes with the government.
Supreme Court uphelds the validity of Rule 89(5). The Apex Court Sets aside the order of Gujarat HC and uphelds the order of Madras HC. Although the Hon’ble Court has noted some anomalies and suggested the GST Council to look into the same. Background:
VKC Footsteps India Pvt. Ltd. Vs. Union of India (Gujarat High Court). High Court on 24th July 2020 held that by prescribing the formula in Sub-rule 5 of Rule 89 of the CGGST Rules,2017 to exclude refund of tax paid on ‘input service’ as part of the refund of unutilised input tax credit is contrary to the provisions of Sub-section 3 of Section 54 of the CGST Act,2017 which provides for claim of refund of ‘any unutilised input tax credit. Rule 89(5) of CGST Act, 2017 is held ultra wires section 54(3) (ii) of the CGST Act, 2017 and refund of ITC shall include ITC on goods and services both. While the Hon’ble Madras High Court judgement in TVL. Transtonnelstroy Afcons Joint Venture V. UOI, 2020 (9) TMI 931, upheld the validity of rule 89(5). Hon’ble SC had fixed the matter for final hearing on 28.04.2021.

13/09/2021
Section 96 of the Companies Act, 2013 provides that every company other than a one person company shall in each year hold an Annual General Meeting of its shareholders and not more than fifteen months shall elapse between the date of one annual general meeting of the company and that of the next. Provided that first annual general meeting of the Company shall be held within nine months of the closing of the financial year and subsequent annual general meetings shall be held within six months of the closing of the financial year. However, if the companies feel that it is not possible to hold the Annual General Meeting within the due time period of 6 months from close of Financial Year, the company may apply for extension of date of AGM and the Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, for a period not exceeding three months.
The Income Tax department on Friday carried out a “survey operation” at the office of website Newslaundry as part of an investigation into the finances and funding of the organisation. NewsClick and Newslaundry received Foreign Direct Investment (FDI) at very high premium while their net worth was very low,” and there are gaps also in the financials of both the companies, which suggest tax evasion but we are verifying the same an I-T official said. I-T officials had visited the offices of both the portals on June 30 as well and notices were served to the concerned office bearers.
NewsClick was earlier raided by the Enforcement Directorate (ED) on February 9 this year for alleged money laundering linked to foreign funding received by it. The Delhi high court in June this year directed the ED to not take any coercive action against Purkayastha.

12/09/2021
Appointments made to NCLT and ITAT:
Days after the Supreme Court pulled up the Central Government over posts lying vacant in the tribunals, the Central government cleared the appointment of judicial and technical members to the National Company Law Tribunal (NCLT) and the Income Tax Appellate Tribunal (ITAT). Issuing a notification, the Centre has approved the proposal for the appointment of a total of 18 members to the NCLT, comprising 8 judicial members and 10 technical members. On the other hand, in the ITAT, 13 new appointments have been made, comprising 6 judicial members and 7 accountant members.
In order to free up shipping containers, the Central Board of Indirect Taxes and Customs (CBIC) has asked field units to quickly dispose of unclaimed or confiscated goods and move import cargo pending inquiry to warehouses. The instructions have come amid a global shortage of shipping containers-triggered by the temporary closure of seaports including those in China due to Covid-19 pandemic-which has led to a massive increase in freight rates and an imminent slump in exports. CBIC has also asked the field units to give monthly updates on containers that have been held up by intelligence agencies or stuck in court cases, and subsequently freed up.

11/09/2021
Flat or villa owners paying more than Rs. 7,500 a month to their resident welfare associations towards maintenance charges will now have to pay Goods and Services Tax (GST) at the rate of 18% for the entire contribution since a Division Bench of the Madras High Court on Thursday stayed a single judge's order.
The court granted interim stay pursuant to a writ appeal preferred by the Centre against an order passed by the single judge who had recently quashed a circular issued by the Department of Revenue under the Union Finance Ministry on July 22, 2019. The circular required payment of GST for the entire monthly maintenance and not just for the amount over and above Rs.7,500. The single judge had disagreed with such a stand and held that the tax could be collected only for the amount exceeding Rs.7,500.
Carry Forward of Losses in case of Change in Shareholding due to Strategic Disinvestment.

Finance Act, 2021 has amended section 72A of the Income-tax Act, 1961 (the Act) to inter alia provide that in case of an amalgamation of a public sector company which ceases to be a PSU, as part of strategic disinvestment, with one or more company or companies, then, subject to the conditions laid therein, the accumulated loss and the unabsorbed depreciation of the amalgamating company shall be deemed to be the loss, or as the case may be, allowance for unabsorbed depreciation of the amalgamated company for the previous year in which the amalgamation was effected.
In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector company that has become so as a result of strategic disinvestment.
Accordingly, the loss incurred in any previous year prior to, and including, the previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company.
The above relaxation shall cease to apply from the previous year in which the company, that was the ultimate holding company of such erstwhile public sector company immediately after completion of the strategic disinvestment, ceases to hold, directly or through its subsidiary or subsidiaries, fifty-one percent of the voting power of the erstwhile public sector company.

Summary of EXTENSION of Due Dates. CBDT has issued a Press Release dated 09.09.2021 in order to *extend the following due dates for FY 2020-21 as under:*

31.12.2021– ITR (No Tax Audit cases).
15.01.2022– Tax Audit Report
31.01.2022– TP Audit Report
15.02.2022– ITR (Tax Audit Assessees)
28.02.2022– ITR (TP Audit Assessees)
31.03.2022– Belated/Revised ITRs

Banks have requested the Reserve Bank of India to give relaxation on its recent guidelines on ATM cash replenishment whereby the regulator put in place a mechanism to penalize lenders for delay in refiling cash in teller machines. Banks have submitted that constantly replenishing ATMs in rural geographies will require significantly higher investments, making the business unviable. Representations have been made to the regulator to relax some rules on cash-outs and down time,” an industry insider said. In a notification last month, the RBI had directed banks and white label ATM operators to strengthen systems to monitor availability of cash in ATMs and said a cash-out situation for more than 10 hours in a month at a teller machine will attract a penalty of Rs. 10,000 starting October.

10/09/2021
Contradictory rulings by the Madras High Court and an Authority for Advance Ruling (AAR) have created confusion over input tax credits in cases where the final product could not be sold in the marked due to loss or damage amid the pandemic. The Madras High Court in a recent case ruled that input tax credit availed by a company or a manufacture need not be reversed in case of a loss incurred during the manufacturing process amid Covid-19. The Gujarat AAR, in another ruling, however, said the tax credit on inputs (raw materials) used in manufacturing needs to be reversed even if the goods are destroyed or damaged.
The Supreme Court dismissed the plea of a Non-Resident Indian (NRI) who was stuck in India due to Covid-19 seeking direction for treating him as an NRI for Financial Year 2020-21. The petition prayed for a direction from the Ministry of Finance to consider a representation for treating him as an NRI for FY 2020-21. The petitioner submitted that he arrived in India on March 6 and was compelled to extend his stay in India, later he was able to leave the country on October 5, by that time his stay in India (Financial year 2020-21) had already crossed a period of 182 days due to the lockdown imposed in India. As per Section 6 of the Income Tax Act, the petitioner qualifies to be a resident in India and liable to be taxed on his global income in India. The petitioner said he is an NRI, presently based in Dubai, UAE (Tax neutral state), working as an Accounting Manager with Kuber Trading FZE. We won’t entertain such petition unless and until you show us that you are completely powerless and confined to the shores of this country, then only we will consider the matter from the standpoint of Article 32 but if this is the situation, the transport bubble was created from July 1 onwards and yet you chose not to avail, that is the matter to go into individual cases,” Court said.

09/09/2021
To stop the fence from eating the grass, SC has ruled that the priests who perform daily rituals in a temple, cannot become owners of the land vested in deities and also stopped government from Becoming owners of the said assets by substituting the name of the priests with that of the area collector. Pujari has been given right to manage the property but that does not elevate him to the status of tenant in cultivation. The name of the deity is to be mentioned in the ownership column, as the deity being the juristic person is the owner of the land. Allows appeal filed by the Madhya Pradesh Government.
Cairn Energy Expects a “near-term” resolution on retrospective tax issue with India a refund of Rs. 7,900 crores ($1.06 billion), the company said in its earning presentation on Tuesday. It plans to return $700 million to shareholders via a special dividend and a share buyback upon receiving its money from India. The company said it is “working with the Government of India to expedite documentation and payment of refund,” adding that it is required to withdraw all related legal claims against India under the amended law. Last December, an arbitration tribunal had ordered India to pay the UK firm $1.2 billion plus interest and cost. Cairn Energy’s expectations of a refund of $1.06 billion suggest the company is willing to forego its claim for the balance amount.
UCO Bank out of PCA restrictions:

State-owned UCO Bank will no longer be subject to strict lending curbs imposed by the Reserve Bank of India (RBI) in May 2017, as the central bank said on Wednesday that the lender has been taken out of the prompt corrective action (PCA) restrictions.
Following UCO Bank’s exit, two banks -- Indian Overseas Bank and Central Bank of India -- remain under PCA. The central bank uses PCA framework to rein in banks that have breached certain regulatory thresholds in bad loans and capital adequacy.
PCA entails curbs on high-risk lending, setting aside more money on provisions and restrictions on management salary.
As on 31 March, UCO Bank’s net NPA ratio stood at 3.94%, down 151 basis points (bps) from the same period last year. Its total capital adequacy ratio under Basel III was at 13.74%, up 204 bps from Q4 of FY20.

08/09/2021
Rules on taxable PF Interest notified:

CBDT has come up with the Notification no. 95/2021 dated 31st August, 2021 and inserted a new Rule 9D under the income tax Rules, which shall be applicable for the FY 2021-22 and onwards.
As per this new Rule 9D, two Provident Fund accounts shall be maintained from the FY 2021-22 and onwards to calculate the portion of interest that is to be taxed for a contribution made above threshold limit which is Rs. 2.5 lacs for other than government employees and Rs. 5 lacs for government employees.
The Rule also specifies the method to calculate the closing balance in both the PF accounts.
Non Taxable contribution account balance as on 31/3/22 shall be the aggregate of: Non Taxable PF account opening bal+ contribution during the year+ interest- withdrawal
Taxable contribution account balance as on 31/3/22 shall be the aggregate of: Contribution during the year+ interest- withdrawal
So the interest earned on the excess contributions of PF above Rs 2.5 L or Rs 5 L as the case may be, would be taxable.

07/09/2021
Textile traders in Surat are worried over pending payments of about Rs. 4,000 crores from Afghanistan which have got stuck with the Taliban taking control of the country. Afghanistan’s central bank has instructed the commercial banks not allow corporate bank account holders to withdraw money for any purpose or to carry out any electronic transaction inside or outside of Afghanistan. “Earlier, we used to send garments and textiles through Dubai to Afghanistan. Lately, we were exporting to the nation through Bangladesh as we saw that it was cheaper to send through Bangladesh,” Champalal Bothra, general secretary, Federation of Surat Textile Traders Association. Exports have stopped now, but we are not sure when we will get our payments. Nearly Rs. 4,000 crores are stuck. Afghanistan used to buy silk for turbans, textiles and readymade garments such as scarves, dresses and kaftans from India. The Federation of Indian Export Organizations (FIEO) has advised exporters and importers to wait and watch before taking any step. “The Afghani currency has depreciated to 87 Afghan Afghani against US dollar from 80 Afghan Afghani in the last one week. While that augurs well for exporters, it pinches the importers.
Circular no .158/14/2021-GST dated 06/09/2021, Clarification regarding extension of time limit to apply for revocation of cancellation of registration in view of Notification No. 34/2021-Central Tax dated 29th August, 2021.
Differing Authority for Advance Rulings (AARs) directions on the tax treatment of flavored milk and flavored lassie have created confusion among food companies and milk cooperatives and may even end up hitting farmer payouts in the future. Under the goods and services tax (GST) framework, milk and lassie are exempt from the levy. But while flavored lassie continues to remain outside GST, flavored milk is set to attract 12% tax following four AAR rulings in Gujarat, Tamil Nadu and Karnataka.

06/09/2021
August hiring up 26%:

With most parts of the country emerging from a lockdown, hiring in August was brisk, rising 26% year-on-year to 2.78 lakh.
Full time opportunities contributed to 94% of the overall active jobs.
The number of jobs in food and retail sectors, too, witnessed an increase of 52% and 39% respectively while the demand for roles in HR and finance grew by 27% each whereas IT tech software roles saw a 19% increase y-o-y.
Importantly, hiring activity is at pre-pandemic levels of February 2020, with jobs getting created in sectors that are doing well post the reopening of the economy. Source: indeed. com , xpheno. com

Sharp drop in Income Tax Refunds in the current year:

The Central Board of Direct Taxes (CBDT) has issued refunds of over ?67,401 crore to more than 23.99 lakh taxpayers between April 1 and August 30, the Income Tax Department of India said.
It further said that the income tax refunds of ?16,373 crore have been issued in 22,61,918 cases and corporate tax refunds of ?51,029 crore have been issued in 1,37,327 cases.
In the previous fiscal which ended on March 31, 2021, the department had issued ?2.62 lakh crore worth refunds to more than 2.38 crore taxpayers.
CBDT had issued refunds of over Rs 95,853 crore to more than 25.55 lakh taxpayers between April 1, 2020, to August 25, 2020.
So there has been a sharp drop in tax refunds as compared to the last year. It is not clear if the drastic drop was on account of the new faulty Income Tax site.

05/09/2021
Form notified for declaration by senior citizens:

CBDT has notified new Rule 26D in respect of furnishing of declaration and evidence of claims by specified senior citizen under section 194P of the Income Tax Act.
Note on 194P:
Finance Act 2021 had inserted a new section 194P which provides conditions for exempting senior citizens from filing Income Tax returns aged 75 years and above. As per the Sec, a resident senior citizen having only pension and interest income can claim deductions U/S 80 by submitting declaration to the specified bank. TDS will be deducted by the bank accordingly after taking effect of the deductions. Also, in that case, he need not file Income Tax Returns.
The new rule 26D specifies that declaration shall be made by the senior citizen in Form no. 12BBA and it should be furnished to the specified bank in paper form duly verified.
The declaration shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.

04/09/2021
Details of all SIM cards purchased with your Aadhaar number in your name can be found at the site below. Among them you can block SIM cards that stealthily use your Aadhaar number without your knowledge. This is a good service started by the Govt...
tafcop.dgtelecom.gov.in
Open the above site on your mobile and type in your mobile number and you will know the numbers of all the SIM cards purchased with your Aadhaar number as soon as you enter the OTP. You can ban any of them.
The issues surrounding the GST portal and the new Income Tax portal of the government of India, developed by the Bengaluru-based software company Infosys, has come under a scathing attack by the RSS-associated magazine Panchajanya. The magazine’s cover story for its September 5 edition is on how Infosys, being the technology vendor for the government to develop these two portals, has ‘messed up’ the execution. The cover has Infosys founder Narayana Murthy’s picture and the text ‘Saakh Aur Aaghaat’ (‘Reputation and a Grievous Harm’). The story alleges that both the portals and their attendant problems in terms of a public interface and usage have led to a situation where trust in the government and its tax collecting system has been brought down. The article says that a known software company was given the contract by the government to simplify the system but it has, rather, made a mess of the matter. Questions are also raised on the lowest bidder or L1 system of awarding the contracts followed by the Indian government. “Will Infosys provide this same kind of shoddy service for its foreign clients,” asks the article.
The government is planning to define cryptocurrencies in the new draft bill that also proposes to compartmentalize virtual currencies on the basic of their use case. Cryptocurrencies will be treated as an asset/commodity for all purpose, including taxation and as per user case – payments, investment or utility. This would be the first time cryptocurrencies will be categorized as per the technology they use, but the government’s focus would be based on the end use of the asset for regulatory purposes, sources said. The bill is also expected to outline the tax treatment for such assets, so that it is clearly classified in the books of accounts. The government in its draft bill is working towards defining cryptocurrency and its treatment in various use cases, so that it can be treated correctly in the books of accounts plus it should be taxed in the right manner,” a person in the know said. It is not looking to allow payments and settlements through virtual currencies. Whether for tax or for other purposes, there is no clarity as to whether crypto assets are currency, commodity service or closer to equity. This is a lacuna in the law, as unless an asset is defined, ambiguity of how it should be taxed or how it should be regulated becomes a question.
An astounding bull run in local equity markets amid the Covid-19 pandemic has taken the shine off gold-historically, one of the most in-demand assets during a crisis. Portfolio managers say there is no immediate trigger for a spike in gold prices and the yellow metal should ideally be not more than 10% in one’s investment portfolio as the economy is showing signs of recovery. Last years, when gold prices had crossed Rs. 56,000 per 10 gm, investors had increased their exposure to 15-20% of their portfolio in anticipation that gold will cross the Rs. 60,000 per 10 gm mark. But that didn’t happen as investors big and small have shown a strong risk appetite by opting for equities for the last several months despite the Covid-19 situation, betting on the country’s strong growth potential. Gold October future contract at MCX closed at Rs. 47,166 per 10 gm.

03/09/2021
Mca amendment wrt MGT 7/7A and preparation of MGT 9….. extract of MGT 7/7A to be published on the website of the company…..
Read More
http://www.cajatinminocha.com/resource/Articles/Image/MCA_amending_MGT_7_MGT_9.pdf
WhatsApp banned over 3 million Indian accounts in the one-and-a-half months between June 16-July 31. The numbers have been revealed in the company's latest compliance report. In accordance with the new IT Rules 2021, WhatsApp has published its second monthly report for the 46 day period of - 16 June to 31 July. The company said in a statement that 30,27,000 Indian accounts were banned on WhatsApp during during the said period. "Over the years, the platform has consistently invested in Artificial Intelligence and other state of the art technology, data scientists and experts, and in processes, in order to keep its users safe on the platform," a WhatsApp spokesperson said. Other than those accounts for which the company receives complaints of abuse or sending spam, WhatsApp depends on behavioural signals to identify misuse of the platform. The company says that it relies on available "unencrypted information" including user reports, profile photos, group photos and descriptions as well as advanced AI tools and resources to detect and prevent abuse on its platform.
The Centre has notified new income tax rules under which the existing provident fund (PF) accounts will be split into two separate accounts, to enable the government to tax PF income generating from employee contributions which exceed Rs. 2.5 lakh annually. CBDT has issued the rules and separate accounts within the PF account shall be maintained. Subsequently, all existing employees provident fund (EPF) accounts will be divided into taxable and non-taxable contribution accounts. To calculate the taxable interest, two separate accounts will have to be maintained within the existing provident fund account during the recently concluded financial year as well as all the preceding years, to assess the taxable as well as the non-taxable contribution made by a person.

02/09/2021
IT notification no 95 dtd 31.08.2021

Provident fund contributions to be distinguished as taxable and non taxable contribution during the financial year 2021-22 in view of the budgetary amendment.
Interest accrued on non taxable and taxable contribution to be separately accounted and credited.
Threshold limit is 5 lacs if second proviso to section 10(11) or 10(12) is applicable, otherwise the limit is 2.50 lacs

The gross GST revenue collected in the month of August 2021 is Rs 1,12,020 crore of which CGST is Rs 20,522 crore, SGST is Rs 26,605 crore, IGST is Rs 56,247 crore (including Rs 26,884 crore collected on import of goods) and Cess is Rs 8,646 crore (including Rs 646 crore collected on import of goods).
Record GDP growth of 20.1% in Q1:

India's real gross domestic product (GDP) grew by 20.1% in the April-June quarter of the fiscal year 2021-22.
GDP had contracted by 24.4% in the April- June Quarter of 2020-21 on account of the corona related lockdown, which was the steepest contraction in the history of independent India.
The Reserve Bank of India had projected Q1 real GDP to grow by 21.4%. Nominal GDP expanded at 31.7%.
Biggest Y-O-Y growth was observed in the following: Construction: 68.3% Manufacturing 49.6%
Household consumption grew to Rs 17.84 lakh crore in Q1 21-22, up 19 percent from Rs 14.94 lakh crore same period last year.
Gross Fixed Capital Formation figures came at Rs 10.22 lakh crore in Q1 21-22 against Rs 6.58 lakh crore same period last year.
The GDP figure stands at Rs 32.38 lakh crore, up from Rs 26.95 lakh crore reported in Q1 of 2020-21. However GDP was Rs 35.7 lakh crore in Q1 of 2019-20. So the GDP for the quarter could still not match the GDP figures in Q1 of 2019-20.

IPad is not a computer for depreciation purposes: ITAT Amritsar. M/s Kohinoor Indian (129 taxmann. com 396 (Amritsar - Trib.)[16-08-2021])
Facts:

The issue before the ITAT was whether the iPad falls in the definition of computer or mobile phone.
If an iPad falls in the definition of computer then a high rate of depreciation ie 40% is allowable however if it falls within the definition of mobile phone then the lower rate of depreciation is allowable ie 15%.

The ITAT held as below:

Depreciation at lower rate is applicable on iPad as it is not a computer. Predominate purpose of iPad is communication and not use as a computing device as its main features are email, whatsapp, Facetime calls, calls, music, films etc. Though iPad may discharge some functions of computers, it is not a substitution of computer/laptop, which have various utilities/functions, though some functions may be common with iPad.
Another reason for considering the iPad to be a communication device is that it has an IMEA number.
Apple store does not sell Ipad as a computer device rather it is selling it as communicating/entertainment device.
The onus is on the assessee to prove that the assessee is entitled to higher depreciation and merely based on assumptions, iPad cannot be considered to be a computer.
Thus the assessee cannot be entitled to a higher rate of depreciation.

Seven years after the Allahabad High Court ordered the demolition of two 40-storeyed towers built by Spartech in Noida, the Supreme Court on Tuesday conferment the ruling. The top court said all homebuyers deserved access to clean air, sunlight and easy exit in case of fire, and the builder could not have added more towers to the existing building plan in violation of all town-planning norms.

01/09/2021
Rakesh Jhunjhunwala’s Rare Enterprises said on Monday the company will invest in Uttamchandani family promoted Syska LED, which will help the fast-moving electrical goods company in its next phase of growth, a release said. Rare Enterprises and its partners have signed a term sheet to invest in Syska LED Light Private Limited, promote by the Uttamchandani family. In accordance with the terms of the signed term sheet, about 15% of the funds have been deployed already,” it said. The transaction is expected to conclude in the next 60 days, the release added.
Gst relaxations vide CBIC press release dated 29.08.2021 extending the following due dates

Late Fee Relaxations for tax payers who could not furnish GSTR-3B for months July 2017 to April 2021
Such returns may be furnished between 01-06-2021 to 30-11-2021 with following late fee.
*If No Tax Liability for the said periods* - Maximum Late Fee Rs.500 (Rs.250 each under CGST and SGST) per return.
*For Others* - Maximum Late Fee Rs.1000 (Rs.500 each under CGST and SGST) per return.
*Please note no relaxation in availing or utilization of input tax credits pertaining to GSTR-3B for months July 2017 to March 2020 because time limit to avail such input tax credit has been exhausted as per section 16(2)(4) CGST.*
Relaxation in filing of application for revocation of cancellation of registration till 30-09-2021 where the due date of filing of such application falls between 01-03-2020 to 31-08-2021.
Cancellation had been done under following clauses:
*Clause (b) of section 29(2)* - a person paying tax under section 10 has not furnished returns for three consecutive tax periods;
*Clause (c) of section 29(2)* - any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months;
Relaxation to companies - The company may file GSTR-3B and GSTR-1/IFF by using EVC mode instead of DSC till 31-10-2021

GSTN has asked taxpayers who have not filed their pending GSTR-3B, especially from period November 2020 and afterwards, to do so at the earliest Taxpayers who have not filed GSTR-3B return for the past two months will not be allowed to file GSTR-1 return from next month.

31/08/2021
RBI kept the repo rate unchanged in an expected move at 4% for the seventh straight meeting in its August bi-monthly monetary policy. And now, ahead of the Jackson Hole conference, RBI Governor Shaktikanta Das has said that the central bank is in no hurry to go with a policy change or a rate hike as a sudden move for the markets.
Reserve Bank hiked the ceiling on remittances per transaction from India to Nepal to Rs 2 lakh from Rs 50,000, a move that will help facilitate retirement and pension-related payments to ex-servicemen settled in the neighbouring country. Besides, the central bank has removed the cap of 12 remittances in a year.
SEBI barred Kotak Mahindra Asset Management, one of the country's largest mutual fund managers, from launching any fixed maturity plans (FMPs) for six months and fined it for breaking rules and hurting investor interests.

30/08/2021
NSE has directed its members, including stockbrokers, to discontinue the sale of digital gold on their platforms by September 10. The direction came after Sebi said that certain members are providing a platform to their clients for buying and selling digital gold.
Customs officials at the Mangaluru International Airport (MIA) have seized gold weighing 335 grams, valued at ?16,21,400 from a passenger from Dubai. The gold was being smuggled by concealing it in bolts and wheel connecting rods in two skating boards from the passenger, identified as Muhammed Navas hailing from Muliyar, Kasaragod in Kerala. The passenger arrived from Dubai by Air India Express flight No IX 384 on Saturday.
Multinational fast food’ and hotel chains and tech companies that operate through franchisee models in India have come under the taxman’s lens over their royalty income with the indirect tax department questioning the nature of agreement with their franchisees and demanding higher GST. Under the franchisee model, multinationals allow Indian companies to operate certain stores, hotels or entities with their global brand name, against which they charge a percentage of profit or royalty or any other income. Most multinationals pay 12% goods and services tax (GST) on the amount, but the department is seeking to levy 18% GST. That is because GST on payment against the “right to use” a brand name is 12% while it is 18% in case of “transfer of right to use” a brand name. Multinationals claim they are not transferring the brand name or allowing the Indian entity to use the brand name for perpetuity, hence the applicable GST is 12%. The indirect tax department, however, argues that this is just nomenclature aimed at tax arbitrage. And it has started issuing notices in this regard.

29/08/2021
Gst Late Fee Waiver Amnesty Scheme.

Applicable to:
Failed to Furnish GSTR 3B Return by 31st May 2021
Return Period:
July 2017 to April 2021
What to do:
File return between the period 06/06/21 to 31/08/21.
Quantum of Late Fee
- Type of Return Maximum Amount Per Return
- Nil Return Rs 500/-
- Other than Nil Return Rs 1,000/-
Consequences
Late Fee subject to a maximum of Rs 10000/- per return.

2.38 Lakhs shell companies identified:

Ministry of Corporate Affairs has identified 2,38,223 companies as shell companies during the period 2018 to June 2021.
The Government has undertaken a Special Drive for identification and striking off Shell Companies during the last three years.
The term “Shell Companies” has not been defined in the Companies Act and normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purposes such as tax evasion, money laundering, obscuring ownership, benami properties, etc.

FM’s Rs 6 Trillion NMP:

The Finance Ministry has launched the National Monetisation Pipeline (NMP) which aims to monetise Infra assets worth Rs 6 lakh crores across rail, road, power sectors over 4 years.
The FM said that ownership of the assets will remain with the government, there will be a mandatory hand back of the asset after the due time.
Land will not be monetised under National Monetisation Plan only brownfield assets to be monetised.
The planned sales are in line with Prime Minister Narendra Modi’s strategic divestment policy, under which the state will retain presence in only a few identified sectors with the rest privatized.
26,700 km of Highway assets are considered for monetisation, which constitute around 22% of the total National Highways.
Power Transmission assets are considered for monetisation, with an indicative value of Rs 7,700 crores.
The government plans to initiate bidding for Bharatnet Fibre assets of around 2.86 lakh route-km through the PPP model. While BSNL & MTNL Tower assets have been considered for monetisation during FY23.
Hyder assets of NHPC, NTPC & SJVNL along with power transmission assets of NTPC and renewable assets of NLC will be put on the block.
During FY22, two natural gas pipelines with a total length of 2,229 km including the Dabhol-Bengaluru pipeline and Dahej-Uran-Panvel-Dabhol pipeline have been identified for monetisation.
Petroleum product / LPG pipelines of around 3,930 km. HPCL Mangalore – Hassan pipeline has been identified for monetisation during FY 23. Also, 2 Hydrogen Generation plants at the Gujarat Refinery of IOC have been identified for monetisation over FY22.
The government has identified more than 160 projects for private-sector participation. 15 projects of Coal India, 2 projects of Neyveli Lignite, along with Coal gasification plant & Commercial auction of mines will be considered for monetisation.
The government plans to monetise 25 major AAI airports over FY 2022.
2 national stadiums and 2 stadiums of the Sports Authority of India will be monetised under the plan.
All 8 hotel assets of ITDC have been considered for monetisation during FY 2022 to 2025.
Key rail assets identified for monetisation during FY22-25 include 400 railway stations, 90 passenger trains, 1 route of 1,400km railway track, 741 km of Konkan Railway, 15 railway stadiums and selected railway colonies, 265 railway owned goods-sheds, and 4 hill railways.

28/08/2021
Capital Gain Tax on landowner share in case of JDA:

1. Joint Development Agreement (JDA) is a registered agreement in which a person owning land or building or both, agrees to allow another person to develop a real estate project on such land or building or both, in consideration of a share, being land or building or both in such project, whether with or without payment of part of the consideration in cash.
As per the provisions of section 45, capital gain is chargeable to tax in the year in which the transfer takes place except in certain cases.
Sec 45(5A) provides for postponing the taxability of capital gains in case of a specified agreement. Where the capital gain arises to the assesse, being an individual of HUF, from the transfer of capital asset, being land or building or both, under a specified agreement, the capital gain shall be chargeable to income tax as income of the previous year in which the certificate of completion for the whole or part of the project is issued by the competent authority.
Specified agreement is a registered joint development agreement in which one party is the owner of a land or building or both and another develops the real estate project on such land or building and consideration is payable in the form of a share in the developed land or building.
The exception to this postponement of taxability is where the assesse transfers his share in the project on or before the date of issue of said certificate, the capital gains shall be deemed to be the income of the previous year in which such transfer takes place.
For the purpose of section 48, the Stamp Duty Value of his share, on the date of issue of said certificate, as increased by the consideration received in cash, if any, shall be deemed to be the full value of consideration.
As per section 194-IC, if under a joint development agreement any developer pays an amount to the land owner in addition to the share in project, such developer shall deduct TDS @ 10% on such payment.
It is important to note that only taxability is postponed and not the date of transfer as per Sec 45(5A). So the determination of whether the asset is a short term or long term would be with reference to the date of purchase and the date of transfer and not the date of taxability ie date of issue of completion certificate.
Similarly, a safe view would be to consider the cost inflation index of the year of transfer and not taxability for calculating the indexed cost of acquisition.

RBI has come up with draft rules on Round Tripping:
The Reserve Bank of India (RBI) has come up with draft rule with modification in the existing regulation related to foreign investment to discourage round tripping. According to the draft rule, any investment made outside India is an entity, which in turn invests in India will be treated as round tripping if the purpose is to escape tax. This is as the same definition and rationale used by the tax department under General Anti Avoidance Rule (GAAR) which companies have been complaining is quite broad in its scope. Earlier, the RBI and Enforcement Directorate (ED) had started probing several individuals who had invested in foreign entities which may have later invested in Indian start up, companies or assets. Even in some cases RBI had questioned multinationals after they acquire global asset of another multinational that may have an outsourcing unit or presence in India. However, many business entities had earlier opposed over RBI’s stand on round tripping as it was creating problems for several Indian individuals over their investment in overseas funds and Indian companies looking to acquire foreign companies.

27/08/2021
Small company is a company whose paid up capital and turnover does not exceed rupees two crores and rupees twenty crores respectively and has following benefits.

Board Meetings: May hold only 2 board meetings in a calender year.
Rotation of company auditors: Not necessary.
Board's report: Exemption from incuding matters mentioned in Rule-8 of companies (Accounts) Rules, 2014 in Board's report.
Annual return: Can be signed by single director of the company also in case Company Secretary is not there.
Cash flow statement: Not required.
Lesser penalties under Section 446B of the companies Act,2013.

The Reserve Bank of India has banned payments system operator MasterCard from issuing any new cards here in India from the 22nd of July onwards. The ban is a part of the Central Banks ongoing drive to ensure that payments facilitators comply with data storage rules. This will not affect existing MasterCard customers.

26/08/2021
American technology firm Verizon Media, which owns Yahoo, plans to shut down its news websites in India due the new foreign direct investment (FDI) regulations that prohibit foreign funding of more than 26% in digital news media outlets. The company will shut down its news sites including Yahoo Cricket, Yahoo Finance, News, Entertainment and others in the next few days.
"There have been changes in the rules limiting foreign ownership of media companies that operate in the news and current affairs space, including a digital media entity that streams, uploads digital news and current affairs content in India and news aggregators," April Boyd, head of Global Public Policy, Verizon Media, said.
Automobile absolute sales volumes have been set back by several years despite a recovery after two waves of the pandemic. Passenger vehicle sales in the previous financial year were lower than 2015-16 levels; for two-wheelers, they were below 2014-15; commercial vehicles were lower than in 2010-11 and three-wheelers below 2002-03 levels. The government is open to the idea of tweaking tax rates on automobiles to increase their affordability, a top official said on Wednesday. The stance comes amid a prolonged slowdown that has dragged volumes lower across segments.
The Reserve Bank of India has banned payments system operator MasterCard from issuing any new cards here in India from the 22nd of July onwards. The ban is a part of the Central Banks ongoing drive to ensure that payments facilitators comply with data storage rules. This will not affect existing MasterCard customers.

25/08/2021
ICICI Bank filed a case against Karvy Stock Broking Ltd’s promoter C. Parthasarathy as well as others for allegedly cheating the bank out of Rs 563 crore. The press release was issued by the police on Tuesday evening and the case was booked under Sections 406 (criminal breach of trust), 420, r/w 34 (cheating) of IPC against the accused.
Karvy Stock Broking had raised the funds by pledging shares of its six bankers. These funds were then supposedly transferred to the firm’s personal bank account instead of the Stock Broker Client Account. This move was in contravention to the guidelines put in place by the Securities and Exchange Board of India (SEBI), according to the release. Additionally, all the pledges on securities were closed without approval and securities were transferred to the end clients of Karvy Stock Broking. This severely impacted the security of all lenders involved, including ICICI Bank, said the press release.
India is a growing market for car manufacturers and for the same reason we have seen several new and existing brands coming up with exciting products. Most of the manufacturers have been trying to offer more features and safer cars for their customers. Old cars used to come with a full size spare wheel but, now things have changed. Many cars and SUVs that are available on sale now offer space savers or smaller size spare wheel. A customer recently who was not happy about this recently took this matter to consumer forum and the consumer court had ordered dealer and the brand to compensate the customer for not offering a full size spare wheel.
In a relief to the World Economic Forum (WEF), the Authority for Advance Ruling in Maharashtra has said that the forum’s liaison office in India is not liable to goods and services tax (GST) on services tax (GST) on services received from the head office. As a consequence of the ruling, the India liaison office does not need to be registered locally. “Whether the activities carried by the applicant’s head office located outside India and rendered to the applicant will amount to supply considering that the applicant is not engaged in any business? Answered in the negative,” the authority ruled on August 20. The authority also answered in the negative on the questions of whether activities carried by WEF’s head office overseas and rendered to the liaison office was liable to GST locally and whether the liaison office would need to obtain registration under the Central GST Act. Experts said the ruling will provide relief to liaison offices of various forums but also lead to confusion on taxability since the Central Board of Indirect Taxes and Customs (CBIC) has not taken up the issue for clarity. “Liaison office is an extension of the foreign company that operates in India after permission from RBI (Reserve Bank of India), but tax officers are unable to agree on a common code for taxability of liaison offices in India.

24/08/2021
The National Stock Exchange (NSE) has instructed all members, including stockbrokers and wealth managers, to wind down the sale of digital gold on their platforms by September 10. This came after capital markets regulator, the Securities and Exchange Board of India (Sebi), flagged such sales as a breach of the Securities Contracts (Regulation) Rules (SCRR), 1957. The Move, ahead of the crucial festive season months when Indian consumers typically become active purchasers, has hit the country nascent yet burgeoning digital gold industry. Sebi concerns may have stemmed from potential use of client funds by brokers to buy digital gold which it views are a non-broking business, according to a review of documents and discussions with multiple industry sources. The lack of regulatory oversight on companies that sell and store physical gold corresponding to the virtual assets being allocated to the end-consumer, is also cause for concern. It has, however, come to the notice of SEBI/Exchange that certain members are providing a platform to these clients for buying and selling of digital gold. SEBI vide a letter dated August 3 has informed the Exchange that the said activity is in contravention of Rule 8(3) (f) of SCRR, and members should refrain from undertaking any such activities,” a circular issued by NSS on August 10 showed. New age fin tech brokers such as Upstox, Grow, and Paytm Money as well as traditional brokers such as HDFC Securities and Motilal Oswal offer customers an option to “invest” in digital gold. These companies have been given time till September 10 to discontinue the product as well as inform consumers about the move.
Employees with stock options in unicorns are facing a tax dilemma as valuations surge. The quandary is whether they should exercise their options now and pay income tax now or wait and risk the valuations going further up, which could lead to higher taxes in future. The tax rates could just be 12% and therein lies a dilemma. In the current bullish scenario, the valuation of start-ups and several other companies are generally moving higher. Hence, apart from several other factors, the employees of such companies need to be mindful of tax impact around the time of exercise as it may significantly impact their overall gains, particularly if the company is not a DPIIT recognized start-up. Employees stock options or ESOPs are taxed in two stages: first, when the employee exercises the option to buy the shares at the exercise price, and again, when the shares are sold. When ESOPs are exercised, the difference between the exercise price and the fair value of the share is treated as a perquisite in the hands of the employee. This difference is taxed as salary income, say tax experts. It is a tricky tax issue for employees who have ESOPs; of when to exercise the options as valuations keep increasing. If they exercise it at lower valuations then the tax has to be paid now at 43%.

23/08/2021
A local court in Delhi has given police three weeks to conclude an investigation into claims from a former Paytm director, who said that he cofounded the digital payments company but did not receive shares owed. Ashok Kumar Saxena, 71, in legal documents said he invested $27,500 two decades ago in Paytm parent One97 Communications Pvt. Ltd. but was never allotted any stock, Reuters reported this month. Paytm has said the claim amounts to harassment and cited it under “criminal proceedings” in the draft red herring prospectus for its proposed $2.2 billion initial public offering (IPO). Saxena, a director from 2000 to 2004, has written to the markets regulator urging it to stop the Paytm IPO. Corporate governance experts said the tussle could spark regulatory inquiries and complicate the approval of an IPO that could value Paytm, backed by Chinese e-commerce leader Alibaba Group Holding Ltd., at up to $25 billion.
The government may take a step-by-step approach to phase out customs duty exemptions that are currently under review. This is to give trade adequate time to build domestic manufacturing competitiveness. “We’ve begun the exercise, comments are coming in… government can take a favorable view, consultation are on with all stakeholders,” a senior government official said, asking not to be named. The government should rationalize the overall import duty structure on raw materials and finished products, industry has suggested, seeking a roadmap of duties over three to five years to encourage local manufacturers top align with global trade trends.

22/08/2021
GST will not be levied on the amount paid by employees for availing canteen facilities provided by their employers, the AAR has ruled. Tata Motors had approached the Gujarat bench of Authority for Advance Ruling (AAR) seeking a ruling on whether Goods and Services Tax (GST) is applicable on the nominal amount recovered by it from employees for the usage of canteen facility. The company also sought a ruling on whether input tax credit (ITC) is available on GST charged by the service provider on the canteen facility provided to employees working in the factory. In its ruling, the AAR observed that Tata Motors has arranged a canteen for its employees, which is run by a third party canteen service provider. As per their arrangement, part of the canteen charges is borne by its Tata Motors whereas the remaining is borne by its employees.
India has been ranked second in terms of crypto adoption, amid a bull run in cryptocurrency assets globally this year, a new report by block chain data platform Chania lysis showed. According to the report, which ranked 154 countries, worldwide crypto adoption grew by over 881% in the last year. Global adoption has grown by over 2,300% since the third quarter of 2019, it said. Emerging markets led ahead of the US and European nations, driven by peer-to-peer (P2P) platform trading, the report revealed. India was second only to Vietnam in the study that ranked countries according to the total cryptocurrency received, the amount of cryptocurrency moved in transactions under $10,000, and P2P trade volume, all weighted by purchasing power parity (PPP) per capita.

21/08/2021
Just days after a hacker pulled off an audacious crypto heist, another major public breach has occured. Japanese cryptocurrency exchange Liquid is the latest victim of a cyberattack that has seen hackers make off with an estimated $97 million in stolen assets. The funds include $45 million in Ethereum tokens, which the culprit is converting into Ether using decentralised exchanges to avoid them being frozen, according to Elliptic, a crypto tracking firm that is assisting Liquid in its investigation.
Liquid revealed on Thursday morning, Singapore time, that it had detected unauthorized access of some customers’ crypto wallets. The breach prompted it to halt all crypto withdrawals, though other services including fiat withdrawals and deposits were kept open. In its most recent update on Twitter, the company said it was tracking the movement of the stolen assets and working with other exchanges to freeze and recover the funds.
The incident is the second major crypto heist to take place this month. Earlier, a hacker stole — and quickly returned — about $611 million in in Ethereum, Shiba Inu and other digital currencies from the decentralized Poly Network finance platform. The company later offered the as-yet unidentified perpetrator a bug bounty of $500,000 for helping to identify security vulnerabilities in its systems. However, it’s unclear whether the reward was used as a bargaining tool or just a means of putting a positive spin on an otherwise damaging series of events. Neither is this the first time a Japanese exchange has been targeted. Back in 2018, Tokyo-based Coincheck lost roughly $534 million worth of lesser-known crypto tokens in a hack. Earlier still, in 2014, its Japanese peer Mt. Gox lost between $400 million and $480 million in a crypto heist, which resulted in Japan’s legislators passing a law to regulate bitcoin exchanges.
The Ministry of Corporate Affairs (MCA) has exempted the Advocate, chartered accountant (CA), cost accountant (CMA), company secretary (CS) having at least 10 years, from online proficiency self-assessment test for becoming an Independent Director. The government has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021 which seeks to amend Rule 6 (4) of the Companies (Appointment and Qualification of Directors) Rules, 2014. They shall come into force on 19th August, 2021
West Bengal — reduced stamp duty will be applicable on sale documents for properties in West Bengal. Furthermore, circle/IGR rates will also be reduced on all properties in West Bengal. The quantum of stamp duty reduction is 2% while the circle/IGR rates are reduced by 10%. The policy is effective from 09/07/2021 to 30/10/2021.Both reduced stamp-duty rate and reduced Circle Rate/IGR Rate will be applicable only to the documents which will be executed and registered during the period from 09/07/2021 to 30/10/2021 (both days inclusive). Neither reduced stamp-duty rate nor reduced Circle Rate/IGR Rate will be applicable to the documents which are executed within the above noted period but not presented for registration within the said rebate period or executed earlier but presented for registration within the said rebate period.

20/08/2021
More than 3 lakh registered sellers from across the country are on Flipkart's marketplace, and 60 per cent are from tier II cities and beyond. Flipkart also works with more than 1.6 million kiranas in India through its wholesale business and its last-mile delivery programme. With more than 350 million registered users from across the country, the Walmart-owned e-commerce platform has been investing in key categories, including fashion, travel, and grocery. Venturing into the social commerce space, Flipkart recently announced the launch of Shopsy that will encourage local entrepreneurship. Founded in 2007, the Flipkart Group includes Flipkart, fashion specialty site Myntra, Ekart (logistics and supply chain arm), Flipkart Wholesale, and Cleartrip. The Group is also a majority shareholder in the digital payments platform, PhonePe. In 2018, Walmart Inc invested USD 16 billion for acquiring 77 per cent stake in Flipkart, and earlier this year, led a USD 1.2 billion funding round in the e-commerce company.
The Central Board of Direct Taxes (CBDT) notifies Rules prescribing ‘any other person’ to verify ITR & appear before authorities for Co./LLP. The board empowered under clause (c) and clause (cd) of section 140 and clause (viii) of sub-section (2) of section 288 read with section 295 of the Income Tax Act, 1961 has inserted Rule 12AA and 51B by notifying Income-tax Rules by the Income-tax (24th Amendment) Rules, 2021, which seeks to further amend the Income-tax Rules, 1962.
NHAI governs the highway and also levies toll on it. However, the contracts for collecting the toll taxes are given to private companies. When the agreements are made, stamps are attached to the agreement document. However, here the companies refused to put as many stamps as were mandated, thereby causing loss worth crores of rupees to the state government. The private companies operating the toll plazas of the National Highway Authority of India in Uttar Pradesh have committed a fraud to the tune of Rs 287 crore.

19/08/2021
After cryptocurrencies, the non-fungible token or NFT has attracted the taxman’s attention as any purchase of the blockchain digital file will attract equalisation levy and goods and services tax (GST). This would mean that any NFT bought could become dearer by a few percentage points. The tax department is set to slap a 2% equalisation levy on these transactions. Also, the indirect tax department would seek that the exchanges pay GST on the transaction value, say insiders. NFT arrived in India a few months back and this means that Indians can now buy art, digital goods, YouTube videos or audio files in the format. The equalisation levy is applicable on any online transaction that is carried out by Indians from an exchange that is not based in India, while GST will be applicable even if the exchanges are based in India,” the facilitation of the overseas crypto exchanges may be subject to equalisation levy at 2% as they could be treated as ecommerce under the EL law. Unlike a cryptocurrency such as Bitcoin, NFT is essentially a unique code or block chain-based digital file. For instance, if an individual has an original copy of a latter written by Mahatma Gandhi, which he wishes to sell, then instead of directly doing it, this can be done though NFT, so first, the letter would be placed in a locker and an NFT-which is unique to the letter-will be created. Then it would be sold. So, the owner of this NFT for all practical purposes holds legal as well as bragging right that came with the original letter.
Ruling in favour of a housing society in south Mumbai, a civil court recently ordered flat owners to hand over a garage they had claimed to have “purchased” from the earlier owners. The court held that the previous owners had no right to sell it when it was just allotted to them at the time they purchased the flat in 1972. “...Parking space or garage comes within the purview of common areas and facilities. Builder or developer has no right to sell parking space or garage. The promoter or builder has no right to sell any portion of such building which is not ‘flat’...” the court said. It held that the only right that remains with the promoter is to sell unsold flats. Asiatic Co-operative Housing Society Ltd moved court in 2013 after it found that the new flat owners Sanjay and Samprati Doshi had “taken possession” of the garage and encroached upon the 95-sq-ft common passage between the ground floor flat and the garage by erecting a brick wall. The defendants [Doshis] encroached on the suit premises on the basis of illegal deed of transfer... Hence, possession of defendants in the suit garage is unlawful. Plaintiff [housing society] is legally entitled for possession of the suit garage and its allotment...,” the court said.
Commerce Secretary speech excerpts.

Today we have notified the rates. RoDTEP is going to be a long-lasting scheme and it is going to be a flagship scheme of the commerce ministry. It is also compliant to the World Trade Organisation,' the secretary told reporters here.
He added that both the schemes together would cover 95 per cent of the tariff lines or goods and exports.
However three sectors of steel, chemicals and pharmaceuticals would not get the benefit of RoDTEP as they have 'done well without' incentives.
The reimbursement of taxes such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation would make Indian products competitive in global markets, he said.
The tax refund rates range from 0.5 per cent to 4.3 per cent for various sectors.

18/08/2021
The Telangana Police and Road Transport Officials have seized 11 imported high-end vehicles on 15th August. The price of the vehicles ranges between Rs 4 crore and Rs 10 crore and the list includes Rolls Royce, Ferrari, Lamborghini, Porsche, Maserati and more. The enforcement officials seized these vehicles on Sunday after a surprise check in Hyderabad, Telangana, According to the officials, the owners of these high-end imported vehicles have not paid the lifetime tax required for the registration of the vehicle. These 11 vehicles were registered in Puducherry, where the lifetime taxes is almost negligible compared to Telangana. The maximum road tax one needs to pay in Puducherry is around Rs 14,000 per year while in states like Maharashtra, the upper cap is around Rs 20 lakh. Due to the different laws in different states, owners of high-end vehicles get them registered where they have to pay fewer taxes. In Telangana, 13% of invoice value has to be paid as a luxury tax and for a Rs 4 crore luxury car, it could come to Rs 50 lakh. Therefore, many of these cars have been registered elsewhere and were plying here,” Puducherry is popular in the Southern part of the country. Whereas, in the Northern part of India, people who want to evade taxes get their vehicles registered in Himachal Pradesh, which asks for a much lower amount for road tax.
Gist of 9 amendments in LLP Amendment Bill:

Small LLP: It is proposed to create a class of LLP called as “Small LLP” in line with the concept of Small Companies. Such Small LLPs would be subject to lesser compliances, lesser fee or additional fee and lesser penalties in the event of default. Earlier: LLPs with contribution less than or equal to ?25 lakh and turnover less than ?40 lakh are treated as small LLPs. With the passage of bill, ?25 lakhs will go over to ?5 crores and the turnover size will be treated as ?50 crores.
Non-convertible Debentures (NCDs): It is proposed to allow LLPs to raise capital through issue of fully secured Non-Convertible Debentures (NCDs) (as an alternative to equity participation) from investors who are regulated by SEBI or RBI. This will help deepen the Debt Market and enhance the capitalization of LLPs.
Section 69 has been amended with a view to reduce the additional fee of Rs. 100 per day which is presently applicable for the delayed filing of forms, documents.
LLP shall have only 22 Penal Provisions under the LLP Act.
LLPs shall have only 7 Compoundable Offences.
LLPs shall have only 3 Non-Compoundable Offences.
The decriminalized cases will be shifted to an “In-house Adjudication Mechanism” (IAM) which would help reduce the burden of criminal courts.
Standards of Accounting and Auditing for certain classes of LLPs may be prescribed by the Central Govt.
The maximum term of imprisonment has been increased from 2 years to 5 years for any fraudulent activity.

17/08/2021
Union Finance Minister Nirmala Sitharaman has assured that the central government is not averse to cryptocurrencies and will instead explore ways in which it can assist the fintech sector in the country. She also mentioned that the government hasn’t said ‘no’ to cryptocurrency but still wants to work towards bringing about sophisticated regulation in the same along with the Reserve Bank of India (RBI). The 62-year-old further said that the work on regulation of cryptocurrency is nearly rounded up and the Union Cabinet will take a call on the same in due course.
Sitharaman further expressed optimism upon the process of the privatisation of Air India and the Bharat Petroleum Corporation Limited (BPCL) being completed by the end of 2021.

16/08/2021
With glitches still haunting the new income tax portal, Union Finance Minister Nirmala Sitharaman on Monday said the Infosys-developed website will be fixed entirely in the next few days. FM Sitharaman also said that Nandan Nilekani sends a message on a weekly basis about the tax portal. “Will inform if the deadline to file return gets extended," the Union finance minister added. IT company Infosys was in 2019 awarded a contract to develop the next-generation income tax filing system to reduce processing time for returns from 63 days to one day and expedite refunds. The Centre has so far paid ?164.5 crore to Infosys between January 2019 to June 2021 for developing the e-filing portal.
The Directorate General of Foreign Trade vide Notification No. 18/2015-2020 dated August 16, 2021 has put restriction on export of COVID-19 rapid Antigen testing kits with immediate effect. Existing policy of export of COVID-19 rapid Antigen testing kits was ‘Free.
The government is set to notify the new duty refund scheme for exporters — Refund of Duties and Taxes on Exported Products (RoDTEP) — this week, with a final clearance from commerce and industry minister Piyush Goyal expected in a day or two. The scheme, meant to replace World Trade Organization (WTO) non-compliant incentives, was implemented in January but exporters have been waiting to get their dues for taxes paid by them for the last eight months. A notification will partially end the agonising wait, which has increased their fund requirement as the Centre has held back their claims. Last week, the government had notified the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, a similar mechanism, to allow textile exporters to get a rebate on central and state taxes till March 2024. According to industry estimates the government owes around Rs 8,000 crore to exporters in unpaid RoDTEP bills, with another Rs 3,500-4,000 crore arrears on account of RoSCTL. Further, around Rs 16,000 crore of payments from the now defunct Merchandise Exports from India Scheme (MEIS) are due for April-December 2020. So, exporters are demanding payments of close to Rs 28,000 crore just from these three schemes.
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench, while upholding the decision of the Commissioner (Appeals) to re-do the assessment passed on the Bills of Entry with respect to the rate of Basic Customs Duty, held that the importer cannot be held liable for the non-generation of Bills of Entry numbers via ICEGATE Portal. The respondent-Company imported four consignments of Gold Dore Bars and in relation to these four consignments filed four Bills of Entry with relevant supporting documents through the ICEGATE3 portal on 05.07.2019. However, only one Bill of Entry number was generated corresponding to Job Code No. 626, but numbers for the three Bills of Entry with respect to Job Code Nos. 629, 630 and 631 were not generated.
Bombay HC ruling advising restriction on owning multiple cars if adequate parking space in not available in housing societies. Expressing anguish over the lack of any uniform policy in Maharashtra over designated parking spaces for vehicles, the Bombay High Court has said that authorities must not allow citizens to own multiple personal vehicles if they didn't have adequate parking space. A bench of Chief Justice Dipankar Datta and Justice GS Kulkarni said on Thursday that authorities "should not allow families owning only one flat to have four or five cars if they do not have sufficient parking space" available in their respective housing societies.
The Delhi High Court while refusing as many as 22 petitions by various Exporters and Importers refused to exempt Importers or Exporters from charges pertaining to ground rent, demurrage, container detention charges during COVID-19 lockdown period. The petitioners, in these petitions, seek a writ of mandamus in a situation involving contractual rights between private individuals and the regulation, thereof, by statutory/Governmental authorities in public interest. The permissible extent, if at all, of such regulation, falls for consideration. The petitioners seek across-the-board amnesty from paying penal charges to CFSs, ICDs and Shipping lines, during the entire period of lockdown enforced by the Government consequent on the COVID-19 pandemic.
A division bench of the Karnataka High Court on Thursday stayed the order of the single bench where the Court ordered that race clubs are liable to pay GST only on the commission and not on the entire face value of the bet or amount paid into the totalizer. A bench comprising Justice Satish Chandra Sharma and Justice Sachin Shankar Magadum held that the single bench ought to have considered the pre-GST regime.

15/08/2021
PM Modi had declared August 14 as the Partition Horrors Remembrance Day. He mentioned the same in his Independence Day speech on Sunday and said, “We forgot the Partition and its horrors after Independence. We need to remember them and the tragedy they faced due to the Partition. We will observe August 14 in honour of the victims of Partition.” Prime Minister Modi also drew the blueprint for the 100 years of Independence while addressing the nation on the 75th Independence Day. PM Modi said, “Our goal for the 100th year is that together, we make prosperity, good governance, discipline, building an ideal India, an India that runs with the world.”
“Amrit Kaal is 25 years away, but we don’t have to wait till then. We must start the change now to build a new India to celebrate the 100 years of Independence. With sabka saath, sabka vikas and everyone’s effort, we will achieve our goal,” PM Modi said.
“We have to ensure we meet our goal of building Aatmanirbhar Bharat when we celebrate 100 years of India’s Independence,” PM Modi said. “A time comes in the development journey of every country when that nation defines itself from a new end when it takes itself forward with new resolutions. Today, that time has come in India’s development journey, he said.
On India’s fast-tracked efforts in making its own Covid-19 vaccine, PM Modi more than 54 crore have been administered with vaccine doses so far. He said, “During Covid, our doctors, nurses, paramedical staff, sanitation workers, scientists who were developing vaccines & crores of citizens who were working with a sense of service -all those who devoted every moment to serving others in this period, deserve our appreciation.”PM Modi further spoke about the development in rural areas of the country. He said, “we have to bridge the gap between lives in villages and cities.”
“Now we have to move towards saturation in which 100 per cent villages will have roads, 100 per cent households will have a bank account, 100 per cent beneficiaries must have Ayushman Bharat cards, 100 per cent eligible persons should have a gas connection under the Ujjwala scheme,” PM Modi said. “It is essential to fully utilise the capabilities of India to take it to new heights in the 21st century. For this, we have to hold the hands of the section that is lagging, the area that is lagging,” PM Narendra Modi said. “Today we see our villages changing rapidly. In the past few years, facilities like road and electricity have reached villages. Today, optical fiber network is providing the power of data to villages, the internet is reaching there. Digital entrepreneurs are getting ready in villages too,” PM Modi said.
Prime Minister Narendra Modi announced that the government will fortify the rice distributed to the poor via different schemes such as Midday Meal in a bid to address the problem of malnutrition. He also mentioned the value of scientific approaches for agricultural growth to ensure food security for all. “Malnutrition and lack of micro-nutrients are affecting the growth of poor children. Looking at this, it has been decided to fortify the rice given to the poor via different government schemes,” PM Modi said in his Independence Day speech. Currently, out of the 15 states identified for the ‘Central scheme on fortified rice and its distribution via public distribution system (PDS)’, five are implementing it in one district each on a pilot basis.
Rice provided under any scheme will be fortified by 2024, PM Modi said. “We are witnessing the rapid transformation of our villages,” Modi said while stressing that digital entrepreneurs are being nurtured in villages too. PM Modi also said that PM Gati Shakti Plan will be launched in the coming days. Gati Shakti is a 100 lakh crore national infrastructure master plan which will make a foundation for holistic infrastructure and give an integrated pathway to our economy, he said.
Expressing the need to “increase the collective strength of small farmers of the country”, PM Modi, said “We will have to provide them new facilities. ‘Kisan rail’ runs on more than 70 rail routes of the country today”.
In 75 weeks of the ‘Azadi ka Amrit Mahotsav’, 75 ‘Vande Bharat’ trains will connect different parts of country, PM Modi announced. The government’s focus is to make small farmers, who own less than two hectares of land and comprise over 80 percent of all farmers, the country’s pride, Prime Minister Narendra Modi said in his Independence Day address.
“We will have to increase the collective power of the small farmers of the country. We have to give them new facilities. They must become the country’s pride,” PM Modi said.
Aiming for better technology, PM Modi said, “We have to work together for the next-generation infrastructure, world-class manufacturing, cutting innovations and new-age technology.”
“Along with modern infrastructure, India needs to adopt holistic approach in infrastructure construction,” PM Modi said, adding, “Today, the country is exporting mobile phone worth $3 billion. Now, we need to tap global market. PM Modi further said the capitals of northeast states will soon be connected with railways. PM Modi said a new history of connectivity is being written in the northeast, and announced that the work to connect the state capitals in the region with rail services will be completed soon.
During his Independence Day speech, PM Modi said multiple parts of the country — whether its east, northeast, Jammu and Kashmir, Ladakh including the entire Himalayan region, the coastal belt or the tribal region — will become a big base for India’s development in the future.
PM Modi also said over 4.5 crore new households received piped water connection under the Jal Jeevan Mission in the last two years. The scheme aims to provide tap water connections to all rural households by 2024. “Over 4.5 crore new households have received piped water supply within two years of Jal Jeevan Mission,” PM Modi said. S-IndiaToday.

14/08/2021
Future Coupons, Kishore Biyani and his family have filed a petition in the Supreme Court against a March order by a Delhi High Court single judge, which had put Future Group’s deal to sell its retail assets Reliance Retail on hold, people familiar with the development said. A special leave petition was filed this (Thursday) evening.

Air India is paying much less than the Employees Provident Fund Organization (EPFO)-approved interest rate on provident fund savings of its employees that are managed by its own PF trusts, people familiar with the matter said. The privatization-bound national carrier-which incurred significant losses on PF money of its employee due to investments in troubled from Dewan Housing Finance (DHFL)-has sought employee’s approval to move their PF accounts to EPFO. However, according to the sources, Air India recently told its employees that they may have to fund the investment losses if the government does not agree to fund those losses ahead of its disinvestment. Losses to Air India PF trusts could be more than Rs. 100 crores, they said. Some others said it could be higher. “A large number of employees are worried as a lower interest rate and losses would impact our retirement benefit.

Labour Law Implementation of rules under the four labour codes passed between 2019 and 2020 is likely to be delayed further beyond the October 1 deadline. The original plan was to implement the reforms from April 1. The Center might not immediately give any new date, not even a tentative one, for rolling out the relevant rules.

13/08/2021
Gift and cash back vouchers will now attract 18% GST. the tax department will now levy GST on the supply of e-vouchers thereby bringing even exclusive marketing companies under the tax net. In a recent ruling by the Authority for Advance Ruling, Karnataka brought supplies of e-vouchers made by marketing firms liable for 18 per cent GST terming these instruments as part of overall supply of goods and service having an underlying value that is taxable.
RBI deputy governor T. Rabi Sankar recently spoke on the possibility of a central bank digital currency (CBDC) for India. Significantly, he suggested that a phased implementation of a general-purpose CBDC is already on the cards. He also emphasized stakeholder consultations in the roll-out of an Indian CBDC.
India is nowhere close to launching 5G services but it has already become the fourth largest market for smartphones supporting the next gen technology in terms of shipments, according to market research firms. The country was behind only China, USA and Japan in terms of 5G smartphone shipments in the April-June 2021 period, with the lowest average selling price at $ 410(Rs. 30,448) said IDC. This, even as Reliance Jio Infocomm, Bharti Airtel and Vodafone Idea are still piloting 5G networks and auction of supporting airwaves is not due until early 2022.

12/08/2021
Employees at one of the biggest call centre companies in the world have expressed outrage after being told to install cameras in their homes to monitor their work performance. Teleperformance sought to install AI-powered cameras in employees' homes or on their computers, according to a contract issued in March. Needless to say, the proposed move has left many outraged in the company, which hires more than 3,80,000 workers globally. Teleperformance sought to install AI-powered cameras in employees' homes or on their computers, according to a contract issued in March. Teleperformance had noted in a statement that 2,40,000 of their approximately 3,80,000 employees now work from home. This was made possible because of software named TP Cloud Campus that allows remote work in more than 19 markets.
A deal for T-Mobile Netherlands would represent a rare purchase in Europe as Ambani tries to transform Reliance from an old-economy conglomerate into a tech and e-commerce titan. Billionaire Mukesh Ambani’s Reliance Industries Ltd. is weighing a bid for Deutsche Telekom AG’s Netherlands subsidiary, according to people familiar with the matter. The Indian conglomerate is working with an adviser to evaluate an offer for T-Mobile Netherlands BV, the people said, asking not to be identified discussing confidential information. Deutsche Telekom is seeking about 5 billion euros ($5.9 billion) in any sale, the people said.
After weeks of negotiations, the Senate approved a bipartisan $1 trillion infrastructure package Tuesday authorizing over $500 billion in new spending to improve roads, bridges, and other physical infrastructure like broadband and EV charging. It’s the largest domestic spending bill in over a decade. Aside from more traditional infrastructure spending like roads, the bill seeks to bolster US broadband networks with an additional $65 billion. The package also includes $7.5 billion to build over half a million EV charging stations across the US to help encourage EV adoption.

11/08/2021
Section 10(17A) of the Income Tax Act, authorises the Central Board of Direct Taxes (CBDT) to declare certain rewards as tax free given by the Central and State Governments in public interest. Though this provision has been there in the law book since 01-04-89, CBDT as late as 28-01-2014 passed an order making reward in cash or kind received by any medal winner in Olympic Games, Common Wealth Games and Asian Games tax-free. Section 10 (17A) of the Income Tax Act provides for exemption in respect of rewards given only by the Central Government and State Governments tax-exempt in the hands of the players. It does not make the prizes announced by other authorities like a local authority, sports authority or an industrial house etc. tax exempt. So the prizes like an SUV announced by Anand Mahindra for Neeraj Chopra do not become tax-free in his hand and he will have to shelve out 30% from his own pocket unless Mr. Mahindra is generous enough to fund the tax also in respect of the value of the SUV. It is interesting that the reward money given by any State Government to the Olympic medal winner is exempt and not only from the State Government in which the medal winner belongs. So, not only the reward money of Rs. 6 Crores announced by Haryana government but also reward of 2 Crores announced by Punjab Government and 1 crore by Manipur government to Neeraj Chopra would be fully exempt in his hands.
For whom it is exempt and for whom it is taxable:
The CBDT order categorically states that the reward money to the medal winner only is exempt. So the prize of Rs. 50 lakhs to the 9 players of Indian women’s hockey team from Haryana announced by the Haryana Government will not be tax-free in their hands as they are not the winner of any medal. Likewise, the reward money if any received by coach of these players even announced by any government will not be tax-free in their hands.v Tax rates and deduction of tax at source:
The award money which does not enjoy the tax exemption as explained above will have to pay tax at a flat rate of 30%. The payer of the prize money in cash is required to deduct tax at 30% at source. In case of prize in kind, either the player will have to pay the TDS amount to the person giving the prize in kind.
The government does not consider cryptocurrencies legal tender or coin, said minister of state for finance Pankaj Chaudhary adding that all measures will be taken to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. “The government will explore use of block chain technology proactively for ushering in the digital economy,” he said in response to a question in Rajya Sabha. The government would take a decision on the recommendations of a high level Inter-Ministerial Committee (IMC) which recommended that all private cryptocurrencies, except any cryptocurrency issued by the State, be prohibited in India.
In 2006, Hutchison Telecom-medication International Ltd transferred shares of its Cayman Island subsidiary to Vodafone International Holdings. As a result of this, Vodafone acquired a majority stake of 67% in Indian telecom company Hutchison Essar. Most of Hutchinson’s valuation was derive from its Indian assets and customers. In 2007, the tax department asked the company to pay tax on the transaction. The Supreme Court held that the transaction was not taxable. In 2012, the government amended existing income tax laws to say that any transfer of assets- where most of the value (more than 50%) was derived from Indian assets-will be taxable domestically. This would include indirect ones. The government then renewed its demand on Vodafone. An international arbitration ruled against India’s tax demand. In February, India challenged the arbitration tribunal’s verdict in the Singapore High Court. The arbitration panel had also asked India to pay Rs. 37 crores toward Vodafone’s legal representation and other costs. As things stand, then Indian government just has to withdraw the petition it filed in the Singapore High Court for the Vodafone dispute to end. About 17 companies are impacted by the indirect transfer of assets provision, including Vodafone, Cairn and WNS. The companies will wait for the precise details on how to approach the government to end the dispute. The government is yet to prescribe the rule around the withdrawal of indirect transfer of asset litigation, and that should also have the procedure of how companies can go about it.
The Employees Provident Fund Organization has raised a demand of Rs. 33.97 crores form the Sahara Group companies and the matter is now sub-judice, state labour and employment minister Rameswar Teli said in response to a question in the Lok Sabha. “A demand for an amount of Rs. 33,97,30,000 has been raised by EPFO and the matter is mow sub-judice,” he said. Sahara India, however, said the demand is illegal. “Illegal demand for Rs. 33.97 crores over and above the legitimate funds of employees is under challenge and subjudice before the high court.

10/08/2021
U.S. crude fell as much as 4.6% and was recently down 2.5% at $66.59 a barrel, near its lowest price since late May. Why are crude prices slipping down?

Investors are particularly concerned about tumbling demand in China, where Beijing health authorities said last week that the city would cancel all large scale exhibitions and events for the remainder of August. China has also announced new curbs and restrictions such as on travel.
China’s export growth slowed more than expected in July following outbreaks of COVID-19 cases and floods, while import growth was also weaker than expected, pointing to a slowdown in the country’s industrial sector in the second half.
A United Nations panel's dire warning on climate change added to the gloomy mood after fires in Greece have razed homes and forests and parts of Europe suffered deadly floods last month.
A rally in the USD to a three week high also weighed on the oil prices. A strong USD makes oil more expensive for other currencies.
OPEC+ will make monthly supply hikes of 400,000 bpd from August and continue until all of its pandemic-related output reduction is reversed.

09/08/2021
Several multinationals and Indian technology companies are in a standoff over the applicability of tax on copyright after a Supreme Court ruling laid down that payments made by local users for the purchase of software form foreign companies or distributors cannot be taxed as royalty. The question is whether Indian companies that use, sell, or market software-directly or installed in cell phones, computers etc.-should deduct tax on royalty or copyright money they pay to multinationals. Indian companies have been deducting around 10% tax on copyright and royalties over the years, but multinationals insist that the SC ruling changes all that. Indian companies that use imported software still want to continue withholding the tax at 10% but the latter claims that following the SC ruling on copyright, no withholding should apply. Many Indian companies don’t want litigation and are asking the multinationals to get a nil certificate from tax authorities if they want to avail the benefit of SC ruling. The amounts paid by resident Indian end-users/ distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs (end user license agreement)/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India. This would mean companies need not deduct tax at source as per the Income Tax Act, the court ruled, before adding that this would cover the different models used by companies to operate in India. Payments cannot be termed royalty and taxed where the software is purchased directly by an Indian end user from an overseas supplier or manufacturer, or form an Indian or foreign entity that acts as a distributor or reseller, the court said. This applies also to where the software is bundled with hardware. Most multinational companies use a reseller model in India.
Big technology firms India’s equalization levy, combined with similar digital tax regulations in countries such as the UK and France, will lead to double taxation, as per industry. Some of the Big Tech companies are working to create additional structures or tech infrastructure that can potentially block certain jurisdiction-based content or advertising to avoid tax complications. Google, Facebook, Amazon, Apple and Twitter are among the multinational companies that could see their advertising and content revenue being taxed in various location due to these regulations. In some cases, these companies may be taxed in two or even three jurisdictions. The question revolves around whether the tax is payable in countries where the advertiser is located or where the advertisements are reflected or visible. As of now, India collects taxes on both of these. However, with other countries such as UK that levies DST (digital service tax) on business users or advertisers and these ELs (equalization levies)/ DSTs being non-creditable in the home jurisdiction, digital giants are set to see not only double but multi-layer taxation (payer-linked, access-linked and based on fiscal domicile) on the same transaction. That too, at gross revenue level, which increases the cost significantly for such tech businesses. These digital taxes, which are outside the gamut of international taxation, cannot be set off against other domestic tax obligations. In taxation terminology, this means companies will not get a credit for these taxes in other countries. Not all digital levies are eligible for foreign tax credits. The Indian equalization levy, for instance, is not governed by the tax treaties and hence not eligible for credit against home country taxes. If Rolls Royce, headquartered in the UK, advertised on the Facebook platform, but the content is visible in India too, India will claim that a 2% equalization levy should apply on the transaction, while UK will claim that DST Should apply on the advertising. Even after paying taxes in India and the UK, the company may have to end up coughing up corporate taxes in the country where it is located.
CBIC launches CIP- Compliance Information Portal for Customs: The portal, launched on 4th August 2021, provides free information about the procedural steps for import-export of around 12,000 tariff items. The users can use the tool to filter and sort the information by entering either the description of the goods in question or the Customs Tariff Heading (CTH). Businesses can access CIP on https://cip.icegate.gov.in/CIP/#/home.
Reserve Bank of India on Friday amended its guidelines on export credit in foreign currency and restructuring of derivative contracts as it moved to ensure a smooth transition from Libor to alternative interest rate benchmarks by 31 December.

08/08/2021
The government will begin blocking e-way bill generation form August 15 for taxpayers that have not filed their two or more outward supply returns till June. An advisory to the effect was issued by Goods and Service Tax Network Thursday, informing taxpayers and advising them to file pending returns to avoid blocking of e-way bills. “After 15th August 2021, the system will check the status of returns filed in form GSTR-3B or the statements filed in form GST CMP-08, and restrict the generation of EWB in case of non-filing of two or more returns in form GSTR-3B for the months up to June 2021 and non-filing of 02 or more statements in Form GST CMP-08 for the quarters up to April to June 2021,” the advisory said. The facility of blocking e-way bill generation had been temporarily suspended due to pandemic. Rule 138E provides for the power to restrict EWB generation in case GSTR-3B return has not been filed for continuous two periods. GSTN has raised a red flag for all non-filing of GST returns and from August16 due to blocking generation of e-way bills their businesses would be brought to a halt.
Govt introduces Income Tax amendment bill to nullify retrospective tax demands:

THE TAXATION LAWS (AMENDMENT) BILL, 2021 has been introduced in the parliament and passed in the Lok Sabha.
The bill proposes to amend the Income-tax Act, 1961 so as to provide that no tax demand would be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012, the date on which the Finance Bill, 2012, received the assent of the President.
It is further proposed to provide that the demand raised for indirect transfer of Indian assets made before May 28, 2012, shall be nullified on fulfilment of specified conditions such as withdrawal or furnishing of undertaking for withdrawal of pending litigation and furnishing of an undertaking to the effect that no claim for cost, damages, interest.
The issue of taxability of gains arising from the transfer of assets located in India through the transfer of the shares of a foreign company was a subject matter of a long drawn litigation. Finally, the Supreme Court in 2012 had given a verdict that gains arising from indirect transfer of Indian assets are not taxable under the extant provisions of the Income Tax Act.
The government then amended provisions of the Income-tax Act, 1961, through the Finance Act, 2012, with retrospective effect, to clarify that gains arising from sale of share of a foreign company is taxable in India if such share, directly or indirectly, derives its value substantially from the assets located in India.
The government informed Parliament that Cairn Energy Plc and telecom giant Vodafone, in addition to at least 15 other companies, will benefit from the move. Finally the ghost of retrospective tax amendment seems to have been buried.
Thus, Government has put to rest its infamous 2012-born tax law that sought to retrospectively tax gains from indirect transfer of Indian assets. 8. Though the move notionally involves a scaling down of New Delhi’s tax revenue ambitions by at least Rs 1.1 lakh crore, any potential loss could be more than offset as the decision could improve the country’s standing as an investment destination, boosting its growth potential and thereby tax receipts.

07/08/2021
Father does not own daughter; every child has right to use mother's surname: Delhi High Court. The father does not own the daughter to dictate that she should use only his surname. If the minor daughter is happy with her surname, what is your problem?" the Court asked the father who had approached the Court.
The Enforcement Directorate (ED) has served show-cause notices to Flipkart, it founders and prominent investor Tiger Global, asking why the ecommerce marketplace should not be fined $1.35 billion for allegedly violating Indian laws, people aware of the matter. The notice has been sent to ten parties including the Walmart-owned company’s founders Binny Bansal and Sachin Bansal and each of them is expected to submit their responses to the agency, the sources said. A Reuters report on midnight Wednesday said the ED has begun a probe involving Flipkart and WS Retail, a related party of the ecommerce marketplace that used to be a seller on its platform between 2009 and 2015, over alleged violation of foreign direct investment (FDI) norms. WS Retail is on longer a seller on Flipkart and, as per the Reuters report, ceased its operations in 2015.

06/08/2021
5 big changes related to ATM Rules 1.

RBI Increases ATM Interchange Fee From Rs. 15 To Rs. 17 from August 1, 2021
RBI allows banks to charge Rs 21 for post limit ATM transactions from January 1.
Customers to pay Rs. 21 per transaction, instead of Rs 20 after exceeding the monthly limit of free transactions.
Customers are eligible for five free transactions from their own bank ATMs
Customers are eligible for five free transactions from another bank ATMs.

The Reserve Bank of India (RBI) has changed the rules of the National Automated Clearing House (NACH) and as per the guidelines, the services of NACH will be available seven days a week. At present, these services are available only when banks are open, from Monday to Friday

05/08/2021
RBI extends deadline for current account compliances:

As per RBI circular RBI/2020-21/20 DOR.No.BP.BC/7/21.04.048/2020-21 dated 6th Aug 2020, no bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account only.
After repeatedly extending the date of implementation of the provisions of the circular, 31st July was to be finally made the due date of implementation.
However RBI vide circular RBI/2021-22/77 DOR.CRE.REC.35/21.04.048/2021-22 has provided time till 31st October for implementation of the provisions of the circular.

Gist of amendments to the Factoring Regulation Act:
Introduction:
The Factoring Regulation Act, 2011 regulates, inter alia, the assignment of receivables, the registration of factors carrying on the factoring business and the rights and obligations of parties to the contract for assignment of receivables. The Act requires registration by a NBFC intending to undertake factoring business. Under the Act, ‘factoring business’ is defined as the business of acquisition of receivables of an assignor by accepting assignment of such receivables, or financing against the security interests of any receivables through loans or advances. Amendments:
The definition of factoring business has been amended as (i) acquisition of receivables of an assignor by assignment for a consideration, for the purpose of the collection of such receivables or (b) for financing, whether by way making loans or advances or otherwise. Therefore, the assignment of receivables shall be undertaken as a factoring business, only if the acquisition of receivables has been for consideration and for the purpose of undertaking collection of such receivables. The Amendment does away with the requirement of NBFC’s having their principal business as factoring and now allows any NBFC to register as a “Factor”. The amendment states that where trade receivables are financed through Trade Receivables Discounting System (TReDS), the details regarding transactions should be filed with the Central Registry by the concerned TReDS, on behalf of the factor. It empowers RBI to make regulations for granting registration certificates to a factor, filing of transaction details with the Central Registry and all other matters. Note: Most of the suggestions of the UK Sinha committee have been adopted in the law.
PLI scheme for speciality steel in India:
The Ministry of Steel notified the Production Linked Incentive (PLI) Scheme for Specialty Steel in India to be implemented over FY 2023-24 to FY 2029-30 with a budgetary outlay of Rs.6,322 crore. PLI incentive is intended to boost the domestic production of ‘Specialty Steel’ and attract significant investment for production of ‘SpecialtySteel’ in the country. It also aims to help the Indian steel industry mature in terms of technology as well as move up the value chain. The Scheme shall be applicable for 5 indicative product categories namely Coated/Plated Steel Products, High Strength/Wear Resistant Steel, Specialty Rails, Alloy Steel Products and Steel Wires and Electrical Steel. The sales figures shall be submitted by the eligible companies along with audited certificates. The incremental production shall thereafter be worked out using the weighted average sales price of that grade. The Ministry of Steel shall be empowered to conduct a financial, functional, and technical audit of the selected company/companies who have signed MoU for claiming incentive under the Scheme. Statutory audit shall be conducted by CAG.

04/08/2021
The Goods and Services Tax Network (GSTN) has enabled annual return (GSTR-9) for the FY 2020-21 on the GST Portal for filing. Important Points Relating to GSTR-9:

GSTR-9 once filed cannot be revised.
Computation of ITC has been made based on GSTR-1/IFF/GSTR-5 filed by your corresponding suppliers up to July 15, 2021.
GSTR-1/IFF/GSTR-5 filed after the updation date will be covered in the next updation.
Returns GSTR-1/IFF & GSTR-3B of the financial year should have been filed before filing GSTR-9.
GSTR-9C shall be enabled on the dashboard post filing of GSTR-9 vNo. of records either in Table-17 or Table-18 are more than 500 records per table, then offline tool shall be used for filing GSTR-9
For FY 2020-21, Due Date for filing GSTR-9 & GSTR-9C is December 31, 2021

03/08/2021
During the third and fourth quarter of FY21 (October 2020-March 2021), residential housing property registration and sales across major cities exceeded their pre-pandemic average levels.
According to the Reserve Bank of India (RBI)’s recent Financial Stability Report, unsold inventory levels have dropped steadily in the last four quarters to around seven lakh, a two-year low, as on March 31, 2021, from around 8.5 lakh in the first quarter of FY21. Launches of new units have progressively gone up in the last four quarters to over 6 lakhs in Q4 of FY21. Unsold inventory is a direct reflection of the health of the market. The RBI report said the all-India House Price Index (HPI) increased year-on-year by 2.7% in the fourth quarter vis a-vis 3.9% growth a year ago.
Mumbai has recorded the highest number of property registration in July in at least 10 years, as buyers took advantage of a four-month window to register deals struck until March at a lower stamp duty rate offered by the Maharashtra government to spur sales amid the Covid-19 pandemic. More than 9,027 deals have been registered in the country’s most expensive property market this month, according to the data from the inspector General of Registration, Maharashtra, up 16%from 7,856 a month ago and a jump of 242% from 2,662 in July 2020. This is the highest number of registration in the past decade, for which data is available. The state government had lowered the stamp duty from September 2020 till March this year. In December last year, it allowed buyers who would pay the stamp duty by March-end to register their deals within four months until July 31.The government offered this relaxation to prevent crowding at registration offices. The stamp duty collection of Rs.512 crore in July marked a rise of 23% from Rs.420 crore in June and also surpassed the pre-pandemic collection of Rs.452 crore in July 2019.
Spending of CSR funds for Covid-19 vaccination for persons other than employees and their families is an eligible CSR activity under Schedule VII of the Companies Act 2013.
DGTR has issued a new application proforma for the Anti-Dumping application to be filed by the Domestic Industry.
Two ITC(HS) codes 30036000 & 30046000 have been included in the MEIS Schedule and are eligible for the benefit from 01.01.2017 to 31.12.2020 at 3%.
Foreign investment up to 100% under the automatic route is allowed in case an 'in-principle' approval for strategic disinvestment of a PSU has been granted by the Government.

02/08/2021
Press Release dtd 31-07-2021
Prime Minister Shri Narendra Modi will launch e-RUPI, a person and purpose specific digital payment solution on 2nd August 2021 at 4:30 pm via video conferencing. PM has always championed digital initiatives. Over the years, several programmes have been launched to ensure that the benefits reach its intended beneficiaries in a targeted and leak-proof manner, with limited touch points between the government and the beneficiary. The concept of electronic voucher takes forward this vision of Good Governance.
About e-RUPI
e-RUPI is a cashless and contactless instrument for digital payment. It is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the service provider. It has been developed by National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority. e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface. It also ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without involvement of any intermediary. It is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services. It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc. Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.
The Central Board of Indirect Taxes and Customs (CBIC) on Saturday said it has done away with renewal of Authorised Economic Operator certification for AEO-T1 entities from August 1. The CBIC said these entities would no longer be required to seek periodic renewal of AEO-T1 certification with effect from August 1, 2021. CBIC has done away with expiry/ renewal of Authorised Economic Operator certification after every three years for AEO-T1 entities. W.e.f. 1/8/2021, all AEO-T1 entities certified on or after 01.04.2019, shall be auto renewed in the system, without any end date, the CBIC tweeted. The facility of continuous AEO certification/auto renewal for AEO-T1 entities is being made available subject to submission of annual self-declaration between October 1 to December 31 every year, the CBIC said in a circular to all principal chief commissioners. An AEO is a business entity involved in international movement of goods requiring compliance with provisions of the national Customs law and is approved by or on behalf of national administration in compliance with World Customs Organisation (WCO) supply chain security standards.
State Bank of India (SBI) – the country’s largest lender today announced a 100 per cent waiver on processing fees on home loans in a special limited period offer ending August 31, 2021. The complete waiver is a major reduction from the existing processing fee of 0.40 per cent for home loan customers, according to a statement shared by the bank on Saturday, July 31. The SBI home loan interest rates start at 6.70 per cent. There will be a concession of five bps (0.05 percentage) for home loans applied through the State Bank of India’s YONO mobile app. Women borrowers will be eligible for concession of 0.05 percentage (five basis points/bps) on the loan rate, according to SBI.
Whether Bilateral Investment treaties are applicable to tax disputes:

Article 2 of the Bilateral Investment Treaty between India and UK was invoked by Cairns in its tax dispute with India regarding retrospective taxation, which resulted in Cairns getting a favourable order from the International Tribunal. Article 2 reads as follows:
This Agreement shall apply to any investment made by investors of either Contracting Party in the territory of the other Contracting Party including an indirect investment made through another company, wherever located, which is fully owned by such investors, whether made before or after the coming into force of this Agreement.”
The word “any” is of utmost significance since it does not create a distinction between investment disputes and tax disputes which led to arbitration tribunal having jurisdiction over a purely tax-dispute. The BIT between India and Netherlands also has the same provision which led to the arbitration tribunal having jurisdiction in the Vodafone Holdings case well.
So now the Government has altered the standard format of the BITs to exclude the jurisdiction of these Tribunals to tax disputes. Article 3.6(b) of the Treaty between India and Brazil signed in January 2020 reads as follows: “This treaty shall not apply to any law or measure regarding taxation, including measures taken to enforce taxation obligations.”
With this alteration to the standard format, India may be able to exercise unhindered jurisdiction over tax matters.

01/08/2021
Unaccounted transactions worth Rs 400 Cr detected after a raid on a pan masala group: The IT department has allegedly detected unaccounted transactions of more than Rs 400 crore after it raided a north India-based 'pan masala' manufacturing group. The group has been apparently earning huge amounts through unaccounted sale of pan masala and through unaccounted real estate business. This unaccounted income was laundered back into the concerns through a vast link of shell companies. A network of 115 such shell companies has been found. These shell companies advanced loans and advances to the real estate group amounting to Rs 226 crore in just three years. Money was also ploughed back through through bogus advances against property sale, bogus loans and share premium. In some of these paper companies based in Kolkata, bogus sale and purchase of manure has been shown, amounting to Rs 80 crore, so that cash can be deposited into bank accounts.
The Lok Sabha on Wednesday passed the IBC (amendment) Bill without debate, which, among other things, provides for a pre-packaged resolution process for stressed MSMEs. Minister of State for Corporate Affairs Rao Inderjit Singh moved the Bill for consideration and passage amid the din. The Bill was approved by the House without any discussion, as Opposition members continued their protest over Pegasus snooping issue and three new farm laws. Singh said the Insolvency and Bankruptcy Code (Amendment) Bill, 2021, will replace the Ordinance that was promulgated on April 4 as part of efforts to provide relief to MSMEs adversely impacted by the pandemic. The proposed amendments would enable the government to notify the threshold of a default not exceeding Rs 1 crore for initiation of the pre-packaged resolution process. The government has already prescribed the threshold of Rs 10 lakh for this purpose.
The Cabinet on Wednesday approved amendments to the Limited Liability Partnership (LLP) Act for decriminalising offences under the law as the government looks to improve ease of doing business and encourage start-ups. In all, 12 offences are proposed to be decriminalised and one provision (Section 73) entailing criminal liability is to be omitted. The 12 decriminalised offences will then get shifted to an internal adjudication mechanism to help unclog criminal courts from routine cases. The government has also approved creation of a class of small LLPs to encourage entrepreneurs. These LLPs will be subject to fewer compliances, reduced fee or additional fee, and smaller penalties in the event of default. “Now, Rs 25 lakh will go to Rs 5 crore and Rs 40 lakh turnover size will now be treated as Rs 50 crore. So, even Rs 5 crore contribution and Rs 40 crore or Rs 50 crore turnover will be treated as a small LLP, which means we are expanding the scope of what can be a small LLP. The corporate affairs ministry is also working towards setting up an e-adjudication platform as part of the new version of the MCA21 portal.
Whether Black Money act, is Retrospectively Applicable?

As per Section 3 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Black Money Act), tax shall be charged on every Assessee for every assessment year commencing on or after the 1st day of April, 2016 in respect of his total undisclosed foreign income and assets of the previous year.
The Govt in exercise of the powers under Section 59 of the Black Money Act, published a Notification on 01.07.2015, notifying 30.09.2015 as the date on or before which a person is required to make a declaration in respect of an undisclosed asset located outside India. It also notified 31.12.2015 as the date on or before which the person shall pay the tax and penalty in respect of such undisclosed asset located outside India.
As per Section 72 of the Black Money Act, where no declaration in respect of the asset covered under the Black Money Act is made, such asset would be deemed to have been acquired or made in the year in which a notice under Section 10 is issued by the Assessing Officer.
Finance Act, 2019 has substituted section 2(2) of the Act with retrospective effect from 01.07.2015 to provide that assessee means a person
(a) being a resident in India in the previous year; or
(b) being a non-resident or not ordinarily resident in India in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates; or in the previous year in which the undisclosed asset located outside India was acquired.
So both Sec 72 and Sec 2(2) makes it clear that the Black Money Act shall be applicable for undisclosed foreign assets acquired when the assessee was a non resident but was a resident during the assessment proceedings.

31/07/2021
The Centre’s fiscal deficit narrowed to an eight-year low of Rs 2.7 lakh crore, or 18.2% of the budgeted estimates, in the first quarter ended June, helped by a rebound in revenues and lower spending. The amount was less than half of the Rs 6.6 lakh-crore fiscal deficit in the first quarter of 2020-21, which had faced the brunt of the Covid-19 disruptions. The government’s net tax receipts came in at Rs 4.12 lakh crore of 26.7% of budgeted estimates while total receipts stood at Rs 5.47 lakh crore or 27.7% of budgeted estimates, as per official data released on Friday. Net and gross tax collection in the corresponding quarter last year was Rs 1.35 lakh crore and Rs 1.5 lakh crore.
With potential cyber-attack warnings from CERT-In to banks on the rise, lenders are engaging with global companies like SWIFT to ensure that cross-border and domestic transaction services involving huge money transfers are safe against such potential attacks. Banks are also engaging vendors to conduct mock cyber-attacks on their platforms to see whether their defences are breached — and to find loopholes and plug them.
Mastercard, Visa and American Express may face higher tax bills as they start setting up data servers in India, a move that will ultimately lead to these global card payment companies crossing the "permanent establishment" (PE) threshold in this geography. A large part of the income generated by these companies in India is outside the domestic tax net as they did not have a PE here. PE is a concept in the tax regulations that determines which country has the right to tax a company - and to what extent. Going ahead, payment companies like Master card, Visa and American Express will have to maintain Indian data on servers based here; this will create a PE here and could lead to domestic taxes at 25%. Since the RBI’s 2018 directive on data localization and storage was issued, the companies claim to have worked closely with the RBI and Indian government to ensure we are compliant with the both the letter and the spirit of the order. It was found out that a lot of foreign entities were processing data outside of India and authorities were not comfortable with domestic data going outside and being stored on their servers.
According to RBI data, loans against jewellery by banks stood at Rs 62,221 crore as of June 18, 2021 — an 80% increase over the previous year. Even in the first quarter, loans grew 2.5% despite the second wave. Auto loans had shown a jump of 11% year-on-year at Rs 2,38,214 crore. Bankers said that while the pandemic impact has been severe, there have not been many defaults in the corporate segment. The SME segment was protected because of the Emergency Credit Line Guarantee Scheme (ECLGS), which had a one-year moratorium that ends in the second quarter. As a result, most of the defaults were being seen in the retail segment.
Technical glitches continue to affect the functioning of the new income tax portal, restricting taxpayers and practitioners from carrying out tax-related works. The Income Tax Department had launched the new e-filing portal on June 7. Since then, it continues to face technical issues.

30/07/2021
Tech’s Titanic 5 -- Apple, Microsoft, Google, Amazon and Facebook

The current stock market value of the Big Five ($9.3 trillion) is more than the value of the next 27 most valuable US companies put together, including corporate giants like Tesla, Walmart and JPMorgan Chase, according to data from S&P Global Market Intelligence.
Apple’s profit just from the past three months ($21.7 billion) was nearly double the combined annual profits of the five largest US airlines in pre-pandemic 2019.
Amazon’s stock price increases have made Jeff Bezos so rich that he could buy a new model iPhone for 200 million people—and he would still be a billionaire.
Google’s $50 billion in revenue from selling advertisements from April to June was about what Americans—all Americans—spent on gasoline and gas station purchases last month.
The annual revenue of one of Microsoft’s side businesses, LinkedIn, is nearly four times that of Zoom Video Communications, a star of the pandemic, in the past year.
Facebook expects to dole out more cash outfitting its computer hubs and offices in 2021 than Exxon spends around the world to dig oil and gas out of the ground in a year.
Amazon fell short of investors’ expectations Thursday. But in the past year, Amazon’s e-commerce revenue still climbed by $109 billion—an increase in a single year that Walmart needed the past nine years to reach.

The Cabinet approved amendments to the deposit insurance law to ensure that the guaranteed amount of up to Rs. 5 lakhs are paid within 90 days of the Reserve Bank of India (RBI) placing a bank under moratorium. The amendments, aimed at providing quicker relief to depositors of stressed banks, will cover lenders currently under moratorium such as the Punjab and Maharashtra Cooperative (PMC) Bank. The RBI action against PMC took place in September 2019.
Rationalization of goods and services tax rate rate structure is on the government agenda and it is definitely going to happen, chief economic adviser KV Subramanian has said. He said a three-rate structure was important, but there was a need to fix inverted duty structure. “I think that’s something definitely going to happen,” he said in response to a question on GST structure rationalization. He said the original plan was to have a three rate structure. “But I think what we have to be very cognizant about is that oftentimes with policy making you don’t want perfect to actually become the enemy of the excellent,” he added. The 15th Finance Commission, headed by NK Singh, in its report has also made a case for GST structure rationalization.
A functionality to check status of bank account details update for the taxpayers who have taken new registration at GST Portal but have not yet furnished the same, has been introduced, in view of Rule 10A of the CGST Rules 2017. Such taxpayers are required to update their Bank Account Details within 45 days of the first login henceforth. The taxpayers may login and update Bank Account details through Non-core amendment in the manner as specified in the below table. In case the taxpayers who had not updated bank account after registration and are also failed to update within 45 days of their first login henceforth, the system will prompt and force them to comply with the requirements.
HC's judgment to prevail over CBIC Circular in case of contrary views by HC and the Circular- In C.C.E. & S.T.-Surat-I v. Palak Designer Diamond Jewellery [Excise Appeal No.10239 of 2020 decided on July 23, 2021] the revenue filed an appeal against Order-in-Appeal wherein the Commissioner (Appeals) remanded the matter on the ground of adjudication by the incompetent authority (Joint Commissioner) and on the ground of violation of principle of natural justice by relying on board's circular.

29/07/2021
Google is all set to pass on India’s 2% equalization levy introduced in April 2020 to its clients whose advertisements are visible in India from October. The levy is applicable even in cases where both the buyer and the seller are not based in India, if the advertisement is visible in India. The digital giant recently specified this to its clients and called India’s levy a “jurisdiction specific surcharges.
Nykaa and Policybazaar are all set to file papers within a week for their initial share sales, with both issuances proposing to raise Rs.11,000 crore between them at a time when consumer-focused companies are redefining India’s valuation leader-board in bumper over-subscriptions. lifestyle retailer Nykaa, which plans to raise Rs.5,000 crore, will likely file its draft red herring prospectus (DRHP) by this weekend. Policybazaar will file its DRHP next week for a ?6,000-crore IPO.
The Reserve Bank of India on Wednesday laid out eligibility criteria and operational norms for non-bank companies seeking access to the country’s centralised payments systems (CPS), paving the way for new-age fintech firms such as Paytm and PhonePe to process real-time digital payment transactions now handled primarily by banks. CPS options include the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems, both owned and operated by Mint Road.
HC's judgment to prevail over CBIC Circular in case of contrary views by HC and the Circular. Brief: In C.C.E. & S.T.-Surat-I v. Palak Designer Diamond Jewellery [Excise Appeal No.10239 of 2020 decided on July 23, 2021] the revenue filed an appeal against Order-in-Appeal wherein the Commissioner (Appeals) remanded the matter on the ground of adjudication by the incompetent authority (Joint Commissioner) and on the ground of violation of principle of natural justice by relying on board's circular.

28/07/2021
The Delhi government has started the process for revising the circle rates of properties, seeking feedback from public, officials said on Monday. Amid lockdown and its impact on economy of the city, the Delhi government earlier this year slashed circle rates for residential, commercial, industrial property and by 20 per cent. Against a target of over Rs 5,000 crore revenue from stamp duty fee in 2020-21 , the department collected Rs 3,297 crore, mainly due to slowed down economy during the pandemic and lockdown. The department has targeted a projected collection of Rs 4,997 crore through stamp duty fee.
Finance minister Nirmala Sitharaman on Monday introduced the Insolvency and Bankruptcy Code (Amendment) Bill 2021, or IBC, in Lok Sabha aimed at reworking some of the processes to deal with small businesses going belly up. The bill was necessitated by the financial stress wrought by the pandemic. President Ram Nath Kovind had invoked the Insolvency and Bankruptcy Code (Amendment) Ordinance on April 4. An ordinance is a law promulgated when Parliament is not in session. The finance ministry had increased the minimum default threshold for initiation of bankruptcy proceedings from ?1 lakh to ?1 crore to save especially small, micro and medium enterprises. Such firms make up over half of India’s manufacturing gross domestic product (GDP) and are the largest source of regular employment. GDP is a gauge of national income or output. The government had also suspended filing of applications in case of defaults for a calendar year from March 25 2020. These measures constituted a relaxation of IBC processes.
As part of measures aimed specifically at small businesses, the ones hardest hit by Covid-19, the government promulgated the IBC ordinance, which now needs to be passed by Parliament.
The government has taken various steps to counter goods and services tax fraud including integration of fastag with e-way bills, mandatory Aadhaar-based authentication for new applicants, additional grounds for cancellation of registration in case of mismatch between FORM GSTR 1 and FORM GSTR 3B.
Gstn released new functionality to see AATO. The taxpayers can now see the exact Annual Aggregate Turnover (AATO) for the previous FY, instead of just the two slabs of Above or Upto Rs. 5 Cr.

The taxpayers can also see the Aggregate Turnover of the current FY based on the returns filed till date.
The taxpayers have also now been provided with the facility of turnover update in case taxpayers feel that the system calculated turnover displayed on their dashboard varies from the turnover as per their records.
This facility of turnover update shall be provided to all the GSTINs registered on a common PAN. All the changes by any of the GSTINs in their turnover shall be summed up for computation of Annual Aggregate Turnover for each of the GSTINs
The taxpayer can amend the turnover twice within a period of one month from the date of roll out of this functionality. Thereafter, the figures will be sent for review of the Jurisdictional Tax Officer who then can amend the values furnished by the taxpayer

India is open to considering lower import duty and other incentives for Tesla if the company decided to manufacture its cars in the country. Tesla has approached the government to seek reduced customs duty on its cars, reasoning that they should be treated as electric vehicles and not luxury automobile. Additionally, under the FAME-India scheme, incentives are provided on the purchase of electric vehicles through an upfront reduction in their price. Income tax deduction of Rs. 1.5 lakh on interest paid has also been provided on loans taken to purchase electric vehicles. There is no relief for imported electric vehicles though.
Results of the measures taken by Govt to detect black money:
In the recent years, the Government has taken a number of measures to bring back the black money stashed abroad. ‘The Black Money (Undisclosedk Foreign Income and Assets) and Imposition of Tax Act, 2015’, is one such strong measure. MOS Finance in the Parliament stated that following results have been achieved as on 31.05.2021:

More than 107 prosecution complaints have been filed under the above Black Money law.
As on 31.05.2021, assessment orders under section 10(3)/10(4) of the Black Money law have been passed in 166 cases, wherein demand of Rs. 8,216 crore has been raised.
Undisclosed income of Rs. 8,465 crore (approx.) has been brought to tax and penalty of Rs. 1,294 crore has been levied in HSBC cases.
Undisclosed income of Rs. 11,010 crore (approx.) has been detected in ICIJ (International Consortium of Investigative Journalists) cases.
In the Panama Papers Leaks cases, undisclosed credits of Rs. 20,078 crore (approx.) have been detected.
In the Paradise Papers Leaks cases, undisclosed credits of Rs. 246 crore (approx.) have been detected.
Convictions were obtained in 261 prosecution cases from FY 2016-17 to 2020-21.

Bitcoin soared close to $ 40,000 on Monday after electric carmaker Tesla expressed fresh support for the world’s most popular cryptocurrency. The unit leapt 15% in Asian trade to a one-month high at $ 39,681, buoyed also by report that US retail titan Amazon was mulling the use of crypto technology.

27/07/2021
A British court on Monday granted a bankruptcy order against Vijay Mallya, paving the way for a consortium of Indian banks led by the State Bank of India (SBI) to pursue a worldwide freezing order to seek repayment of debt owed by the now-defunct Kingfisher Airlines. “As at 15.42 [UK time], I adjudicate Dr. Mallya bankrupt,” Chief Insolvencies and Companies Court Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court here.
Kerala State Goods and Services Tax Department had issued Press Release dated July 23, 2021 regarding removal of flood cess along with GST on sales by July 31, 2021. State also, Informs traders to make necessary changes to their billing software to avoid flood cess on sales made after July 31.
MCA has amended the Companies (Incorporation) Rules, 2014. In the rules, changes have been made with respect to allotment of a new name to an existing company under Section 16 of the Act. Section 16 relates to rectification of a company name.
RBI has raised the limit of personal loan amount that can be granted by lenders to directors of other banks and their families at not more than 5 crore from 25 lakh. This will apply to all scheduled commercial banks, except regional rural banks (RRBs), small finance banks etc.

26/07/2021
Silver-backed Exchange Traded Funds (ETF), one of the most popular products globally, may soon find their way into India. The capital-markets regulator will consider a proposal allowing mutual funds to launch bespoke plans that mimic the price moves of silver, creating an affordable and liquid investment proxy for the precious metal that has robust local demand. The proposal was discussed in a recent meeting of the Mutual Fund Advisory Committee, appointed by the Securities and Exchange.
India’s central bank has asked lenders to put in place business continuity plans (BCP) after it ordered operational curbs, effective last week, on Mastercard. It has also sought details on their preparedness to regularize the issuance of credit and debit cards on alternative payments platforms, such as Visa and RuPay. The Reserve Bank of India (RBI) has also reached out to various lenders on the problems being faced by the broader banking.
NACH to be available 24*7 from 1st Aug: National Automated Clearing House (NACH) is popular mode of direct benefit transfer to large number of beneficiaries. The RBI has announced that the bulk payment system NACH will be available on all days of the week from 1 August 2021. This payment system used for important transfers like pension, subsidy, salary etc. was available only on working days till now.
256 chaat and paan sellers in Kanpur found to be crorepatis in IT Gst probe. These traders didn't pay any tax outside the gst registration. They have purchased properties worth more than rs.375 crores.
RBI is planning a phased introduction of digital currency:

RBI deputy governor T Rabi Sankar has said that RBI is considering a planned introduction of a central bank digital currency backed by sovereign in a phased manner. He also said that policymakers were considering running pilot programs for the proposed central bank digital currency and the aim was to reduce the volatility of private virtual currencies.
Just a few days back, European Central Bank approved an investigation phase in digital Euro. In China trials of a digital currency have started in several cities. Eastern Caribbean islands that share a central bank, including Grenada and St. Kitts and Nevis, have already launched their own versions. The US Federal Reserve and the Bank of England are looking into the possibilities for their economies.
In its annual report on trade and finance, RBI had stated that since central bank digital currencies provide anonymity, they may have implications for cross-border transactions. To curb this, appropriate safeguards would need to be laid down under existing anti-money laundering and financial-terrorism laws.

25/07/2021
30 years of Economic Liberalisation: In 1991, the then FM and former PM Dr Manmohan Singh famously stated in his 24th July budget speech that “Less Government means more growth”. 1991 was the year in which India embarked upon a path breaking economic liberalisation which has helped India wade through the foreign exchange crisis to the fifth largest country in the world.
Some of the major reforms undertaken were as follows:

Eliminating the industrial license requirement for most sectors
Removing limits on capital accumulation
Eliminating licenses for importing the majority of goods
Reducing tariffs
Opening the private sector to many activities that had previously been reserved for the public sector
Reducing requirements for bank reserves and restrictions on interest rates
Eliminating restrictions on foreign investment
Abolition of Restrictive Trade Practices. The main objects of the New Economic Policy were globalisation, reducing inflation, higher growth rate, economic stabilisation and greater flow of global capital, resources and technology. In 1991, India pledged gold with Bank of England for a $ 400 million loan. In 2021, it has over USD 600 billion in foreign reserves. This is the testimony of the success of the new economic policy of 1991 followed diligently by successive governments.

24/07/2021
IndusInd Bank on Saturday said it is planning to raise up to Rs 30,000 crore through a mix of equity and debt to fund its business growth. The bank’s board approved a proposal for raising funds through debt securities or equity instruments or convertible debt securities in any permitted mode such as Qualified Institutional Placement or American Depository Receipts or Global Depository Receipts, it said in a BSE filing. The funds will be raised on a private placement basis. The bank proposes to raise up to Rs 30,000 crore or its equivalent amount in such foreign currencies as may be necessary, subject to approval of the shareholders and receipt of regulatory approvals, it said. However, the bank did not specify a timeline for raising debt and equity capital.
Unpaid taxes on ? 700 crore of income over six years, violation of stock market rules, and evidence of profits being siphoned off from listed companies have been found in searches at the Dainik Bhaskar Group, the Income Tax Department said on Saturday, two days after the raids on the conglomerate with media outlets critical of the government triggered outrage.
“During the search, it was found that they have been operating several companies in the names of their employees, which have been used for booking bogus expenses and routing of funds… Several of the employees, whose names were used as shareholders and directors, have admitted that they were not aware of such companies,” the tax department said in a statement.
Tesla Inc has written to Indian ministries seeking a big reduction in import duties on electric vehicles (EVs), a move it says will boost demand and generate revenue for the government, two sources with knowledge of the matter said. Its pitch, however, is likely to face resistance from Prime Minister Narendra Modi’s administration which has championed high import taxes for many industries in a bid to boost local manufacturing.

23/07/2021
Private coachings for CA, CS, CMA etc. are not educational institution, liable to pay GST
Logic Management Training Institutes Pvt. Ltd. [Order No. AAAR/13/21 dated May 05, 2021] the Logic Management Training Institutes Pvt. Ltd. ('the Appellant') appealed against the AAR, Kerala ruling wherein it was held that institutes imparting education to students for becoming Chartered Accountant ('CA'), Cost Accountancy, Company Secretary ('CS'), Certified Management Accountant ('CMA') etc are not covered under the definition of "educational institution" in Para 2 (y) of the Notification No. 12/2017 Central Tax (Rate) dated June 28, 2017 ('Services Exemption Notification').
Judgment GST - Advance Ruling - whether margin scheme under rule 32(5) CGST Rules applicable on sale of second hand jewelry. Held Yes.
Facts-- The applicant stated that they don't indulge in further processing of used/second hand gold purchased by them from common person before selling the same to buyers. Means, if they buy gold chain, it is sold in the same form i e gold chain just by cleaning and polishing in some cases without melting into bullion. So the process does not alter the nature or form of the jewellery.
Ruling- In the case of applicant dealing in second hand goods and invoicing his supplies as "second hand goods" the valuation of supply of second hand jewellery which are purchased from individuals who are not registered under GST and there is no change in the nature and form of the goods, can be made as prescribed under rule 32 (5) of CGST Rules.
So tax is payable on the margin only.
Aadhya Gold P Ltd - Advance Ruling No. ADRG35/2021 dt 09. 07. 2021-Karnatka

22/07/2021
The government has said that more than 700 emails dealing with 2000 issues including 90 unique issues/problems in the new income tax e-filing portal have been received from various stakeholders. These issues were reported by various stakeholders including tax professionals, Institute of Chartered Accountants of India (ICAI) and taxpayers. This was stated by the minister of state for finance Pankaj Chaudhary in a written reply in Rajya Sabha on July 20, 2021. While replying, the government further said that: “Infosys has acknowledged the technical issues in the functioning of the portal and have informed that technical issues noticed in the functioning of the portal are continuously being resolved. Some of the initial issues experienced by the taxpayers regarding the slowness of the portal, non-availability of certain functionalities or technical issues in functionalities have been mitigated. The department is taking corrective measures through Infosys based on feedback from taxpayers, tax professionals and representatives of ICAI.”
India’s good exports rose 45.13% year-on-year to $22.48 billion in the first three weeks of July, led by petroleum, gems and Jewellery, engineering goods. Imports in the same period posted sharper 64.82% increase to $31.77 billion, the commerce and industry ministry said in a statement. Excluding petroleum, oil and lubricants (POL), export of all other goods increased by 34.11% in the July 1-21 period. Exports of gems and Jewellery, petroleum and engineering goods during July 1-21 were $424.5 million, $923.33 million and $551.4 million, respectively.

21/07/2021
Advance Tax collections for Q1 of F.Y. 2021-22 stands at Rs. 28,780 crores which shows a growth of approximately 146% from Rs.11,714 crores of Q1 of F.Y. 2020-21. Out of the total, corporate tax amounted to Rs.18,358 crores and personal advance tax amounted to Rs.10,422 crores. The direct tax collection net of refund grew by 100.4% to Rs. 1.85 trillion till 15th June, 2021, when compared with the same time previous year.
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. Though the value of FDI inflows into India has been increasing consistently over the years, inflows have been into sectors where the employment generation is in terms of white collar jobs.
Though in general, decrease in trade deficit is viewed as improvement in trade balance, in case of India, which is predominantly a consumption based economy, decrease in trade deficit can be viewed as an indicator of lower economic activity. In the above analysis, though the trade deficit has decreased from Rs. 1,60,856.70 crores to Rs. 98,697.62 crores, the same is not on account of increase in exports but decrease in both exports as well as imports, due to the pandemic. F.Y 2020-21 Exports USD in million 290,476.56 Imports USD in million 389,174.18 Trade Balance Deficit (-)98,697.62 F.Y. 2019-20 Exports USD in million 313,138.52 Imports USD in million 473,995.22 Trade Balance Deficit (-160,856.70).
Crux of the CBIC Circular no 157 dtd 20-07-2021:

Normal Proceedings by officers or compliances by taxpayers need to be done as per time limit of GST Law and Hon'ble Apex court order would not apply. (Eg. Notices by department or returns by taxpayers)
Quasi-Judicial proceedings by tax authorities like disposal of application for refund, application for revocation of cancellation of registration, adjudication proceedings of demand notices, etc. Similarly, appeals filed and pending, need to be done as per time limit of GST Law and Hon'ble Apex court order would not apply.
Appeals by taxpayers/ tax authorities against any quasi- judicial order filled before Joint/ Additional Commissioner (Appeals), Commissioner (Appeals), Appellate Authority for Advance Ruling, Tribunal and various courts against any quasi-judicial order or proceeding for revision or rectification of any order, then the time limit extention as granted by Hon'ble Apex court shall apply.
In nutshell, the extension of timelines by Hon’ble Supreme Court is applicable for appeal filed before authorities mentioned above and not applicable to any other proceedings under GST Laws.

Singapore ranks 2nd in Ease of Doing Business and has been the hub of international financial transaction with its with in-built state of art technology and advanced financial system. Many of the non-resident Indians have been using Singapore as headquarters for international operations and venturing into India. Further, many of the Unicorns in India are head quartered out of Singapore. There are various tax and regulatory aspects which are to be considered while deciding to set up an entity in Singapore. The tax benefits of setting up company in Singapore such as exempt capital gains, lower corporate tax rates are very familiar.
After years of discussions and intense negotiations, around 130 jurisdictions have agreed to a framework to reform the international tax rules with a global minimum tax of at least 15% for MNCs at the G7 summit which was held on 6th June, 2021. The deliberations made in the summit have been backed by the G20 also in July. Global minimum tax would discourage MNCs in setting up structures involving low tax jurisdictions and moving their IPs to such countries. The global minimum tax would be applicable only for large multinational companies, the rules and details of which is yet to be finalised. The expected gains for various countries are quite significant. Estimates by the UK’s Tax Justice Network suggest that the G7 countries would gain $168 billion in increased corporate income tax with a 15% global minimum corporate tax rate, while all the other countries would gain $ 107 billion in aggregate. The USA would gain at least $84 billion annually- boosting its corporate income tax collection by 21%. The UK, Germany, and France’s corporate tax collection would increase by 15 to 30%.

20/07/2021
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is proposed to be introduced in the monsoon session of the Parliament. Earlier in March 2018, RBI banned investments in cryptocurrencies and asked banks not facilitate remittances towards investment in these currencies issued by private players. Later, in the absence of any law banning the trading of cryptocurrencies, the Honourable Supreme Court overturned the RBI circular in this regard. However, now the government proposes to introduce a law which once passed would make it illegal to mine any cryptocurrency in India and permit investment only in sovereign currencies. The government also through RBI is expected to introduce digital currency. Even though it could affect the investors investing in cryptocurrencies but certainty in policy is welcome.
Income-tax exemption is provided for the amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years. Further, income-tax exemption is provided to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years. The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs. 10 lakh in aggregate for the amount received from any other persons.
Some of India's largest banks, including State Bank of India (SBI), HDFC Bank, Kotak Mahindra Bank, and IDFC Bank have joined hands before the Supreme Court to oppose Reserve Bank of India's (RBI) directive for disclosing inspection reports under Right to Information (RTI) Act.

19/07/2021
As the world is inching towards global tax framework, India expects to gain minimum about $12-13 billion annually in taxation, which it loses to offshore tax havens, once the framework is implemented and expects many companies shifting base back to India. "Global tax framework is moving the way India wants it so it is a welcome move. Although the negotiations are still on and much will depend on the fine prints, our internal assessment suggests that even with a conservative estimate India will gain about $12 billion -$13 billion annually, which currently we are losing out. Also this will be a great disincentive for companies to shift base to low tax regime and will help in adding jobs as well,” a senior finance ministry official said.
Indian Association of Tour Operators (IATO), which represents more than 1,600 operators for inbound tourists, met finance minister Nirmala Sitharaman to discuss key measures that could set the tourism industry on the path of revival. A delegation of IATO representatives led by current president Rajiv Mehra and former president Pronab Sarkar thanked the FM for clearing SEIS (service export from India scheme) for the service providers and recent measures such as 500,000 free e-Tourist Visas for foreign tourists and granting of loan on government guarantee to small tour operators. However, the delegation put forward several pending issues, which if resolved can lead to revival of tourism in the country. The delegation requested not just to retain SEIS Scrips’ percentage of 7% which is being given to the tour operators for the last couple of years but raise it to 10%. If SEIS cannot be increased, it should be retained at 7% without consideration of capping of the turnover of the tour operator, they said. Under the SEIS Scheme, the government provides incentives to all service providers who are providing services from India to organizations outside the country.
The Supreme Court to hear a plea by a Chartered Accountant seeking a direction to use the acronym ICOAI and ICAI by the Institutes. The petitioner, V.Venkata Sivakumar on an earlier occasion, filed several petitions against the Institute of Cost Accountants of India and Institute of Chartered Accountants of India praying for issuance of a writ of mandamus, directing the Institute of Cost Accountants of India, Kolkata, to comply with Section 2(2) of the Cost and Works Accounts Act, 1959, as amended and desist from encroaching into the domains earmarked for the Chartered Accountants. The petition further sought for a direction to the Union of India, Ministry of Corporate Affairs to ensure that the Acronym ICAOI be used instead of the Acronym ICAI which belongs to the Chartered Accountant as per the decisions of the Hon’ble Supreme Court in Sathyam Infoway Vs. Sifynet Solutions Private Limited.
SOFTEX FORMS for export of software:

RBI Master Circular No. RBI/2013-14/14 dated 1st July 2013, RBI Circular No.80 dated 15th February 2012 and RBI Circular No.43 dated 13th September 2013, any company that does IT/ITES exports through Data communication links needs to submit the Softex Form for certification.
For getting the Softex certification by STPI (which is the Designated Authority), the companies have to become STP members by either registering under the STP scheme or as NON-STP unit with STPI.
Who has to fill SOFTEX form? a. Both IT and ITES companies who have not registered in STP/SEZ or other EOU scheme must file SOFTEX based on Foreign Trade Policy. Such exporters are called Non-STP units and they can file the form with the concerned jurisdictional STPI Director.
b. Exporters who registered under SEZ and STP should file SOFTEX to value the software exports done by the exporter.
Softex number has to be generated with the RBI for every SOFTEX form from https://rbi.org.in.
An exporter of software is required to make a declaration in SOFTEX Form in duplicate with the STPI not later than 30 days from the date of invoice or date of last invoice raised in a month.
The data submitted through SOFTEX forms shall be transmitted electronically from STPI/SEZs to RBI. The data received by RBI will be made available in EDPMS portal through which the bankers can access the said information to match the inward remittance of export proceeds.

18/07/2021
Earlier this month, two advocates filed a Public Interest Litigation against crypto exchanges WazirX, Coinswitch Kuber and CoinDCX, seeking the court’s intervention to direct India’s capital markets regulator to issue guidelines and take steps against advertisements on TV that run without standard disclaimers. Crypto exchange, the Securities and Exchange Board of India (Sebi) and the Ministry of Information and Broadcasting have been named as respondents in the case. The court has given them time till August 31, the date of the next hearing, to respond. "Without standardized disclaimers, the normal retail investor class is put at risk of their interests not being protected by [Sebi],” according to the petition. Despite crypto being a riskier asset class than stocks or mutual funds, it said crypto exchanges do not follow standardized guidelines for TV ads. Coinswitch Kuber and CoinDCX said in a statement that their advertisements run with disclaimers. The three exchanges have a combined 15 million users, mostly young and new to crypto. In recent months, crypto exchanges have doubled down on advertising on social media, streaming platforms and TV. Flush with funds, they have hired celebrities and influencers, have advertised during the Indian Premier League, and urged investors to buy tiny fractions of leading cryptocurrency Bitcoin for as little as Rs 100. In some cases, the petition said, exchanges have promised astronomical returns. According to one marketing executive, top crypto exchanges spent up to Rs. 15 lacs a week on digital platforms alone in May. These ads often lack spoken or written disclaimers about the asset’s volatility or if they do, they are barely noticeable.
The Enforcement Directorate (ED) conducted searches against the promoters of the Videocon group in Mumbai on Friday in connection with its probe against the business house linked to some overseas businesses, official sources said. They said the searches were being conducted at multiple premises. Further details about the latest action were not available immediately. The ED has been investigating Videocon group chairman Vengugopal Dhoot, former ICICI Bank CEO and MD Chanda Kochhar and her husband Deepak Kochhar under the Prevention of Money Laundering Act (PMLA) for the last few year and has also filed a chargesheet against them.
The Enforcement Directorate (ED) probing a money laundering case against former Maharashtra home minister Anil Deshmukh provisionally attached assets worth Rs. 4.20 crores, the agency said. Among the attached immovable assets was a residential flat valued at Rs. 1.54 crores, located at Worli, Mumbai, and 25 land parcels of book value Rs. 2.67 crores at Dhutum village in Uran, Raigarh district of Maharashtra. Accoeding to the agency, these assets are held in the mane of Deshmukh’s wife Aarti and a company Premier Port Links Private Limited.

17/07/2021
Forex Reserves touch a record high of $611.895 billion:

The country's foreign exchange reserves increased by $1.883 billion to touch a record high of $611.895 billion in the week ended July 9, RBI data showed on Friday.
In the previous week ended July 2, the reserves had surged by $1.013 billion to $610.012 billion.
Foreign Currency Assets rose by $1.297 billion to $568.285 billion in the reporting week.
Gold reserves were up by $584 million to $36.956 billion in the reporting week.
The special drawing rights (SDRs) with the International Monetary Fund (IMF) remained unchanged at $1.547 billion. vThe country's reserve position with the IMF increased by $3 million to $5.107 billion in the reporting week.

RBI offers direct access to individuals for govt bonds. The Reserve Bank of India (RBI) Monday opened a dedicated bond-buying window for retail investors, seeking to democratize the ownership of government debt securities beyond banks and managers of pooled resources such as mutual funds. Individual savers can now buy and sell bonds through the “Retail Direct Gilt (RDG) account” at the central bank. RBI will not charge any fee for maintaining an RDG Account. Using the RDG account, a saver can buy from the primary market, which is hitherto dominated by bond houses or institutional investors.
G20, 130 countries agree to be a part of 15% global corporate tax:

G20 finance ministers on Saturday approved a tax reform for multinationals that aims to put an end to tax havens.
130 countries including India have already agreed to a global minimum tax of 15% to be levied on large multinational companies as nations try to rein in large profitable global tech firms who only pay a small percentage of their profits as taxes.
This tax has been proposed by the US as a measure to counter efforts by major global multinational technology firms to escape taxes in their country of operations. These firms do not have a significant physical presence in any country like a factory or place of business and so they can route their earnings from their digital operations to low tax jurisdictions, thus saving taxes on the profits they earn. This tax aims to ensure that these companies pay their fair share of tax. vIt is part of the inclusive framework on Base Erosion and Profit Shifting agreed upon by G20 countries and OECD.
While India agrees in principle with the levy of min tax and has in fact been levying equalisation levy, it has suggested that the allocation of profits be based on market jurisdictions of the these companies.

16/07/2021
Sebi has moved the Supreme Court against the order of the Securities Appellate Tribunal (SAT) in the Franklin Templeton case. The regulator has also challenged the tribunal’s decision to grant an stay on its order alleging indulgence in unfair trade practices by Franklin Templeton’s Asia Pacific head Vivek Kudva and his wife, Roopa Kudva, MD, Omidyar Network India. The regulator had banned the couple from accessing the securities market for a year. Last month, the appeals body had also stayed the Sebi order that barred the fund house from launching debt schemes for two years.
Centre releases Rs 75,000 crore to states as GST compensation shortfall.
Kerala AAAR: Reimbursement of additional discount to distributor will attract GST. Madras High Court: GST Applicable Only On Monthly Maintenance Amount Exceeding ?7500 Collected By RWAs.
Govt waives import tax, GST for TN girl’s medicine worth ?16 cr.
Special GST Council meet likely in August after monsoon session of Parliament.

15/07/2021
RBI's move to ban MasterCard from issuing new cards for not complying with the local data storage guidelines may hit five private banks, a non-bank lender, and a major card-issuing company. The impact is expected to be felt for a few months as these players transition to other card networks. According to Nomura Research, RBL Bank, YES Bank, and Bajaj Finserv are the ones most impacted by the ban as all their credit card schemes are allied to MasterCard.
The government’s tendering process is all set to come under the goods and services tax (GST) umbrella after a tax ruling has said it constitutes supply of services. In a recent ruling Maharashtra Authority for Advance Ruling (AAR) said any tendering should attract GST on the processing fee and that 18% GST should apply wherever such forms are bought online or offline. The Interpretation is in two ways, while one view is that the tendering process should be exempt, the second one holds that tender processing fees do not specifically find mention in the exemption notification, hence should be taxable.

14/07/2021
During the financial year 2020-21 the CGST zones and the Directorate General of GST Intelligence (DGGI)have booked about 8000 cases involving fake ITC of over Rs. 35000 crore. During the financial year 426 persons including 14 professionals such as CAs, Lawyers and masterminds, beneficiaries, directors etc were arrested. Considering the high proportion of fake ITC availment and utilisation a nation-wide special drive against the fake GST invoice was launched w.e.f. 9th November 2020 which is still continuing. Directorate General of GST Intelligence and CGST Zones under CBIC have during the current financial year detected more than 500 cases involving 1200 entities and arresting 24 persons. CBIC officers are using latest IT tools, digital evidence and also collecting information from other government departments to catch the fraudsters. Along with legislative and procedural changes in the law, the nationwide drive has contributed to better compliance and revenue collection. During the drive, cases of fake ITC availment against some well-known companies were also booked.
DGFT Public notice no 12 dtd 13th July 2021--The Director-General of Foreign Trade (DGFT) amended the ANF-2C to reduce the exporter’s regulatory compliance burden. The DGFT has deleted paragraph 2.96 (b) of HBP, 2015- 2020 which reads “exporter shall furnish quarterly return /details of his exports of different commodities to concerned registering authority. However, status holders shall also send quarterly returns to FIEO in the format specified by FIEO.
The Director-General of Foreign Trade (DGFT) notified that the importer is no longer required to furnish quarterly returns for import of Water-mark Bank-Note Paper. As per the existing policy, the Import of Water-mark Bank Note Paper may be made, without an import license, by the Note Printing Presses of the Government of India, namely, Currency Note Press, Nasik; Bank Note Press, Dewas both units of Security Printing and Minting Corporation of India Limited (SPMCIL); Bharatiya Reserve Bank Note Mudran Ltd. (BRBNMPL)units in Mysore, Salboni and Bangalore, subject to submission of a certificate of import from the Head of units and with actual user condition.
The Karnataka Authority of Advance Ruling (AAR) ruled that GST to be paid only on difference between selling price and purchase price of Second Hand gold jewellery purchased from individuals not registered under GST. The applicant, Aadhya Gold Private Limited is dealing in second hand goods and invoicing his supplies as “second hand goods”, the valuation of supply of second hand gold jewellery which are purchased from individuals who are not registered under GST and there is no change in the form and nature of such goods, can be made as prescribed under sub-rule (5) of rule 32 of the Central Goods and Service Tax Rules.

13/07/2021
Several multinationals have begun evaluation of their existing organizational structures as many countries will start initiating their own domestic tax measures in line with the global minimum corporate tax regime that comes into effect in 2023. Some of the top multinationals have roped in global tax advisors and could go for a massive overhaul of global organizational structures, said people with direct knowledge. Tax havens such as Ireland, Luxemburg, Mauritius and Cayman Islands were used by companies to make investment across the globe or hold patents to reduce their tax outgo.
Digital payments startup Mobikwik on Monday filed a draft red herring prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India, to raise INR.1,900 crore ($255 million) through an initial public offering. The DRHP, which ET has seen, showed that about INR.1, 500 crore would be raised through a primary share sale, while the remaining will be a secondary transactions where existing investors will sell stakes. ET on July 10 reported Mobikwik was close to filling its DRHP for a $250-300 million issue size.

12/07/2021
DRI official have busted a gold import racket, with metal valued at about Rs. 1,000 crores, in Mumbai. The buyers of which, the DRI officials have estimated the duty evasion at about Rs. 338 crores, and arrested two persons on Saturday, the court has remanded them in judicial custody. Acting on a tip-off, the DRI officials seized a 100kg consignment of Gold Potassium Cyanide (GPC) on Friday with a declared value of Rs. 32 crores at Mumbai’s air cargo complex. GPC is also known as Potassium dicyanoaurate and its primary application is in the elect tic gold plating of metals. The seized consignment was being exported to Dubai by a Mumbai based firm. The receiving entity at Dubai was also a closely linked entity to exporters, the DRI said in a press release. The men associated with the racket claimed that the GPC they tried to export was made out of the gold they imported duty-free for re-exports after value addition. The government policy allows such duty-free import of valuable inputs to encourage export and earn foreign exchange. The Mumbai-based exporter, the press release said, never manufactured any product for export out of the gold his firm imported. Instead, it melted and recast the gold and sold the pieces to jewelers looking for such tax-evaded places of yellow metal.
CBDT has notified the new rules regarding computation of short-term capital gains and written down value where depreciation on goodwill has been obtained, potentially increasing tax liabilities on firms that have undergone mergers or acquisitions in recent years. Finance Act, 2021, had amended that ‘goodwill’ will no more be regarded as an “intangible asset” and depreciation would be not be available with effect from April 2020.
Indirect Tax Department cannot freeze Bank account of assesses if Appeal has been filed with mandatory pre deposit. As per CBEC Circular No 984/08/2014-CX.
CBIC communicated the new measures aimed at speeding up assessment and clearance of shipments in a more anonymous way to the top brass of the customs department. The idea is to further streamline the faceless assessment scheme rolled out last October and process shipments without direct interface with the merchant.
Reserve Bank of India announced the cut-off yield for the new 10-year bond at 6.10% per annum, higher than that of the current benchmark, signalling a slight tolerance for a higher yield after months of trying to keep it at 6% or less.

11/07/2021
Supreme Court of India in Federation of Hotel and Restaurant Associations of India vs Union of India,

Permits hotels and restaurants to charge prices higher than the Maximum Retail Price (MRP) on bottled water sold to customers as part of food and drinks service.
The decision deals with the applicability of the Legal Metrology Act, 2009 and the Packaged Commodity Rules, 2011 ("New Laws"), which replaced the Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 ("Prior Laws").
A cursory reading of the definition of "sale" under the Prior Laws as well as the New Laws evidences that it does not cover sale of goods occurring under composite contracts.
The Court further distinguished the definition of "sale" under the Prior Laws and the New Laws vis-à-vis the amended definition of the term under Article 366 (29-A) (f) of the Constitution of India, which includes sale of goods as part of a composite contract.
Since the definition of "sale" was not amended under the Prior Laws despite the amended definition of "sale" under the Constitution, the Supreme Court held that New Laws would also not cover sale of goods under composite contracts. Therefore, the order of the single judge bench of the High Court was held to be correct and would continue to be applicable under the New Laws.
The above decision was rendered in the context of bottled water bearing MRP, however, the ratio may be logically extended to any goods bearing MRP and sold as part of composite contracts by hotels and restaurants to its customers.

Finance chiefs of the G20 club of large economies have backed a landmark move to stop multinationals shifting profits into low-tax havens and win back hundreds of billions of dollars’ in lost revenues, a draft communique showed. The agreement at talks in the Italian city of Venice is set to be finalized on Saturday and caps eight years of wrangling over the issue. The aim is for country leaders to give it a final blessing at an October summit in Rome. The pact to establish a minimum global corporate tax rate of at least 15% is an attempt to squeeze more money out of tech giants like Amazon and Google as well as other multinationals able to shop around for the most attractive tax base.
While tax campaigners point to loopholes in the proposals and wanted more ambitious crackdown, the move is a rare case of cross-border coordination in tax matters and could strip many tax havens of their appeal. The move is a rare case of cross- border coordination in tax matters
CBIC initiated and implemented several reform measures in the recent past focusing on simplifying cross-border trade. India currently ranks 63rd in the World Bank’s Ease of Doing Business (EODB) Index, ascending 17 notches in a year. This was made possible due to the reduced time and cost of clearance of goods at various Customs ports owing to the implementation of measures such as SWIFT, e-Sanchit, revised AEO programme, RFID e-seal programme, etc. To bring in transparency, more digital acumen, and less human intervention, CBIC introduced the ‘Turant – Faceless Assessment’ for cross-border operations. This is also referred to as Electronic Custom Clearance in developed countries.
RBI declared that if any issue arises while transferring amount thru Gpay; one cannot claim as the same is not in the list of authorized payment system by NATIONAL PAYMENTS CORPORATION OF INDIA. Be cautious before using Google pay. Any payment related issues or frauds emanating due to Google pay will be outside the purview of RBI.

10/07/2021
ICICI Bank Shuts the LRS Door for Crypto Traders.
Many cryptocurrency traders, shut out of the Indian crypto market by local banks, are now being restrained from buying virtual currencies from overseas markets. India’s largest private sector bank ICICI is telling customers remitting funds to invest abroad to give a declaration that the money will not be used to buy Bitcoin or other cryptocurrencies. For this, the bank has tweaked its ‘retail outward remittance application from’ that customers have to sigh to transfer funds to buy stocks and Reserve Bank of India’s liberalized remittance scheme (LRS). The LRS declaration is not confined to barring direct investment in Ethereum, Ripple, Litecoin, Dash, Peercoin, Dogrecoin, Primecoin, Chinacoin, Wen, Bitcoin and other virtual currencies. ICICI customers have to also agree that the LRS remittance will not be invested in “units of mutual funds or shares or any other capital instrument of a company dealing in Bitcoin/cryptocurrencies/virtual currencies. ICICI was the first bank in India to stop online payments for crypto trades. In April, the bank told payment gateway operators to disallow ICICI Net banking for merchants who are involved in buying or selling Bitcoin directly or indirectly. Soon, more bank followed causing a drop in trade volumes. What other banks do to restrict LRS use for crypto would be clearer over the next few months. Crypto are in the permissible list of capital account transactions under LRS, though there is no explicit ban.
Goodwill tax on M & A deals in last few years. A number of merger and acquisition transactions over the last five years may have to be re-examined following changes to tax treatment of goodwill. The Central Board of Direct Taxes on Thursday notified a mechanism for computation of short-term capital gains and written down value where depreciation on goodwill has been taken. Companies where typically the goodwill has not been substantially depreciated by April 2020, will need to immediately quantify their tax impact. If goodwill carrying tax value is higher than carrying tax value of the intangible asset block (comprising goodwill), the same will result in short-term capital gains tax pursuant to goodwill-related adjustment required to such block as per the new rules. Transactions done in the past five years in sectors such as pharma, life sciences, startups lining for IPO would have to closely evaluate the financial impact of this amendment. The impact for such corporates is that now short-term capital gain taxes need to be computed and be paid before filing of return of income for FY2020-21. Further, corporates who have not elected for the lower tax rate regime should also closely evaluate the financial impact of this rule change. The Finance Act, 2021 had amended that goodwill will no more be regarded as an intangible asset and depreciation would be not be available from April 2020. Under income tax, goodwill will have to be removed from the block of asset and such value to be reduced will be cost of goodwill, net of depreciation claimed till date. The Board introduced a new rule which provides for a computation mechanism to tax the impact of removal of cost of goodwill net depreciation when goodwill if removed from a block of assets, deeming it as a transfer. In a notification issued on Thursday, the Board said where the value of net goodwill removed from the block is in excess of the opening written down value as on April 1, 2020. The excess will now be offered to tax as short-term capital gains.
The District Consumer Disputes Redressal Commission, Panchkula, has imposed a fine of Rs. 20,000 on popular food delivery platform Swiggy for levying Rs. 4.50 GST on the MRP of three soft drink bottles from a city-based customer. Of the total penalty, Rs. 10,000 will be deposited with the Haryana State Council for Child Welfare, while Rs. 10,000 towards harassment and legal expenditure to the customer who reported overcharging. Swiggy will also have to refund the amount overcharged to the customer with 9 percent interest.

09/07/2021
Goods and services tax (GST) authorities have started detecting instances of tax evasion by identifying mismatches between electronic permits issued for transporting goods and the data from radio frequency tags that commercial vehicles use to pass through toll plazas. GST officials are now identifying vehicles that pose a risk of revenue leakage by comparing details furnished at the time of generating e-way bills for goods movement with the actual movement of vehicles captured at toll plazas. E-way bills are needed for transportation of goods worth more than ?50,000 by a GST-registered person within and across states. Officials have unearthed a racket of existing unregistered firms transporting iron scraps under invoices of bogus and non-existing firms, the Central Board of Indirect Taxes and Customs (CBIC) said in a communication to field officers on Monday. Officials also recovered fake invoices transferring bogus tax credits of around ?14.5 crore, the tax authority said. This was based on an analysis of risky vehicles identified by the Directorate General of GST Intelligence (DGGI). Mint has reviewed a copy of the communication. E-way bills were integrated with the radio frequency identification (RFID) tags in January this year. This means details of proposed goods transportation, including classification of the item, destination and vehicle details furnished at the time of e-way bill generation, is fed into these radio frequency tags of commercial vehicles. This helps in cross-verifying the details of vehicle movement specified in the e-way bill with their physical movement and detect mismatches.
Online filing of application for Authorized Economic Operators (AEO T2 and AEO T3) launched. The CBIC has launched the web application for online filing of Authorized Economic Operators (AEO) T2 and T3 applications. The AEO web application is accessible at URL www.aeoindia.gov.in. The new version (V 2.0) of the web application is designed to ensure continuous real-time and digital monitoring of physically filed AEOT2 and AEO T3 applications for timely intervention and expedience. A circular has been issued in this regard (Circular No. 13/2021-Customs, Dated 1-7-2021), which provides that in order to ensure smooth rollout, the AEO T2 & AEO T3 applicants would be allowed to physically file AEO application without registering on the AEO portal as a transition measure till 31-7-2021. However, from 1-8-2021, it will be mandatory for AEO T2 and AEO T3 applicants to register on the portal for AEO certification.
Visa said its customers spent more than $1 billion (roughly Rs. 7,480 crores) on its crypto-linked cards in the first half of this year, as the payments processor takes steps to make crypto transactions smoother. The company said it was partnering with 50 cryptocurrency platforms to make it easier for customers to convert and spend digital currencies at 70 million merchants worldwide. The move is in line with Visa’s broader acceptance of digital currencies. In March, the company announced it will allow the use of the USD Coin to settle transactions on its payment network. Visa Moves to Allow Payment Settlements Using Cryptocurrency. Investor sentiment on cryptocurrencies has somewhat soured recently, with regulatory crackdowns in China and elsewhere. Bitcoin, the world’s biggest cryptocurrency, has seen a punishing slide following the euphoria earlier this year which took it to record highs. Bitcoin price in India stood at Rs. 24.8 lakhs as of 11am IST on June 8.
Online food delivery and restaurant discovery platform Zomato could advance its initial public offer (IPO) launch as the company and bankers appear inclined to crunch timelines, amid a certain amount of skepticism over the continuing strength of the recent market rally. The much awaited offering- the second biggest in nearly four years – might open mid- July or even earlier instead of July 19 as was planned previously, said people with direct knowledge of the development. Zomato and the bankers to the issue now want to launch the IPO on July 14, said one of the people quoted above. Zomato did not respond to ET queries. Further, bankers have now recommended a price band of Rs.72-76 for the issue, higher than what was planned earlier. The size of the issue is likely to be around Rs. 9,350 crores, which will comprise a fresh issue of Rs. 9,000 crores, and an offer for sale of roughly Rs.350 crores.

08/07/2021
The Reserve Bank of India on Wednesday penalized 14 banks including State Bank of India, Bank of Baroda, IndusInd Bank and Bandhan Bank. Lender were find for noncompliance with certain provisions of directions issued by the regulator on lending to nonbank lenders, restrictions and provisions on loans and advances and reporting to the central data base on large exposures. While Bank of Baroda was levied a penalty of Rs. 2 crores, IndusInd Bank, Bandhan Bank, Credit Suisse AG, Central Bank of India, Bank of Maharashtra, Indian Bank, Utkarsh Small Finance Bank were asked to cough up Rs. 1 crore as fine. A penalty of Rs. 5 lakhs were imposed on State Bank of India.
Cairn India secures court order for freezing Indian properties: Cairn Energy has claimed that it has secured a French court order allowing it to freeze at least 20 Indian properties in Central Paris. In December 2020, a Permanent Court of Arbitration at The Hague had ruled that the Indian government should pay damages worth $1.2 billion to Cairn Energy, since it had wrongfully applied a retrospective income tax tax demand. The Indian Government had filed an appeal against the order. While the Paris properties are estimated to yield about $23 million, Cairn lawyers have registered The Hague award in courts in at least 10 jurisdictions including the U.S., the U.K., Netherlands, Canada , France, Singapore, Japan, the UAE and even the Cayman Islands. In June, Cairn lawyers approached the court in the Southern District of New York, making the plea that Air India should be made liable for the outstanding settlement, and said that other state-owned corporations could be targeted as well. The government has until next week to file its challenge in that court.
Retail and Wholesale Trade included as MSMEs:
MSME Ministry’s OM No. UAM/MC/01/2017- SME dated 27.06.2017 on the subject ‘Activities (NIC codes) not covered under MSMED Act 2006 for registration of Udyog Aadhaar Memorandum (UAM)’ excluded certain activities from registration on UAM Portal. This O.M. was further validated for Udyam Registration vide O.M. no. 5/2(1)/2020-P&G/Policy dated 17.07.2020. Certain changes were made vide 5/2(1)/2020/E-P&G/Policy dated 01.12.2020; where it was clarified that in Table. 1, NIC codes 45, 46 and 47 and the activities mentioned against these NIC codes, are not permitted for registration in Udyam Registration Portal. The Government has received various representations and it has been decided to include Retail and wholesale trades ie NIC codes 45, 46 and 47 as MSMEs and they are allowed to be registered on Udyam Registration Portal. However, benefits to Retail and Wholesale trade MSMEs are to be restricted to Priority Sector Lending only.
RBI issues Review of Instructions on Interest on overdue Domestic Deposits:

RBI has amended Sec 9(b) of Master Direction – Reserve Bank of India (Interest Rate on deposits) Directions, 2016 to provide that if a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower.
The existing section 9 (b) in respect of interest on overdue domestic deposits says that if a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings deposits.
An overdue FD is one where the investor upon maturity of the deposit does not claim the amount nor does he/she renew the FD. This situation arises when the FD is not auto renewed or the investor does not have a savings account in the bank. Note that, in case the investor has a savings account, on maturity, the FD amount gets transferred to the savings account and earns savings bank interest.
It s likely that the interest rates on savings accounts could increase above 3.5% and depositors who booked their FD at a lower rate may not get advantage of higher saving bank account rate on their overdue deposits.

07/07/2021
Amazon Business customers, which are largely MSMEs, will now be able to claim GST credit for orders delivered across India with GST registration in only one state. Through its ‘Bill to Ship to’ feature, Amazon Business would let customers with GSTIN registration for one or a few states but want to get their shipments delivered across the country to manage their indirect office expenses better. So far, customers were able to get GST invoices only for the orders shipped to a state where they had a GSTIN registration. This caused “customer inconvenience as the billing address on the invoices were same as shipping address and customers who did not have GSTIN for shipping address could not claim GST Input tax credit for such orders,” Amazon said.
Amazon Business is the B2B wholesale marketplace of Amazon in India catering to the needs of different institutions such as hospitals, clinics, manufacturers, universities, schools, NGOs, government bodies, and offices. Amazon also offers procurement solutions to its business customers. The new feature addresses the invoicing concerns of businesses. According to Amazon, as long as customers have one GSTIN in their business account, they will be able to get GST invoice for all their business orders using new address-invoice billing address which will get shown to them during checkout workflow.
“With the launch of the ‘Bill to Ship to’ feature we have taken a lead in solving this unique customer problem and offered a solution which allows them to claim GST credit on their billing address for their pan-India shipments. This convenient feature allows customers to consolidate the tax credit to one state and make use of GST credit more effectively,” said Peter George, Director, Amazon Business in a statement.
Amazon Business marketplace offers more than “15 crore GST-enabled products” across categories, along with other business features such as multi-users account, orders approval, shared payment methods, and detailed business analytics. In its 2020 round-up of the B2B arm, Amazon Business had claimed over 90 percent increase in customer base in comparison to 2019 and more than 85 percent jump in total orders.

06/07/2021
The Goods and Services Tax Network (GSTN) has issued Advisory dated July 06, 2021 stating important changes w.r.t. Quarterly Return Monthly Payment (QRMP) Scheme implemented on the GST Portal for the taxpayers.

Auto population of GSTR-3B liability from IFF and Form GSTR 1 : A taxpayer under QRMP Scheme can declare their liability through optional IFF for Month 1 and Month 2 of a quarter & Form GSTR-1 for Month 3 of that quarter. Declaration of liability in these forms would now be auto-populated in their Form GSTR-3B (Quarterly) for that quarter, based on their filed Form GSTR-1 and IFF. These fields are editable and in case their values are revised upwards or downwards, the edited field(s) would be highlighted in red colour and a warning message will be displayed to the taxpayer. However, the system would not prevent taxpayer from filing of Form GSTR-3B with edited values.
Nil filing of Form GSTR-1 (Quarterly) through SMS : Nil filing of Form GSTR-1 (Qtrly) through SMS has been enabled for taxpayers under QRMP Scheme. They can now file it by sending a message in specified format to 14409. The format of the message is < NIL > space < Return Type (R1) > space< GSTIN > space < Return Period (mmyyyy) >. Example: NIL R1 07XXXXX1234H8Z6 062020 (where return period must be last month of the quarter) However, NIL filing through SMS can’t be done in following scenarios: If IFF for Month 1 or 2 of a quarter is in Submitted stage, but not Filed. If invoices are Saved in IFF for Month 1 or 2 of a quarter, which was not submitted or filed by due date.
Impact of cancellation of registration on liability to file Form GSTR-1 : In case registration of a taxpayer under QRMP Scheme is cancelled, with effective date of cancellation being any date after 1st day of Month 1 of a quarter, they would be required to file Form GSTR-1 for the complete quarter, as the last applicable return. For example if the taxpayer’s registration is cancelled w.e.f. 1st of April, he/she is not required to file Form GSTR-1 for Apr-June quarter and Form GSTR-1 for Jan-Mar Quarter shall become the last applicable return. However, if the registration is cancelled on a later date during the quarter, the taxpayer would be required to file Form GSTR-1 for Apr-June quarter. In such cases the filing will become open on 1st of month following the month with cancellation date i.e. if cancellation has taken place on 20th May, Form GSTR-1 for Quarter Apr-June can be filed anytime on or after 1st of June.

05/07/2021
DGFT has extended the period of updation of IEC till 31.07.21 and waiver of fees on modification carried out in IEC during the period upto 31st July 2021.
Export of rice (Basmati & Non Basmati) to EU countries except Iceland, Liechtenstein, Norway & Switzerland will require Certificate of inspection by Export Inspection Council/ Export Inspection Agency for export from 1st January 2022.
Government has extended Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit for a further period of three months, i.e., up to September 30, 2021.
Latest rate of exchange of one unit of foreign currency equivalent to Indian Rupee with effect from 2nd July,2021

Foreign Currency	For Imported Goods	For Exported Goods
US Dollar	75.30	73.60
1 Jap Yen	0.6825	0.6580
1 Euro	89.80	86.65

CBIC has notified for the waiver of penalty for non-compliance of provision of dynamic quick response (QR) code on B2C invoice for period 1-12-2020 to 30-9-2021.
In some recent findings, it has been noticed by the Gst authorities regarding Misuse of Pan for obtaining Gst registeration. To address the complaint related to misuse of PAN for obtaining GST registration, a functionality to register such complaints on GST Portal has been introduced. It will check the misuses, control the frauds and help officers in enquiry and cancellation of such registration. Once complaint is registered, it will be sent to the concerned jurisdictional authority where the registration is claimed to be fraudulently taken, for necessary enquiry and suitable action. The process of registering complaint is given below: –

A search functionality is given at the GST Common Portal to find out whether any GSTIN is issued on a particular PAN or not, under Search taxpayer > Search by PAN. The System displays details of the GST registration available on that PAN. In case, no registration is available on that PAN then the message is shown as “No records found”.
Any person aggrieved of having his PAN misused, may directly or through an authorized representative, register a complaint at GST Portal. He may search the GSTIN based on PAN and the registration(s) which are not taken by him, may be selected and reported to the jurisdictional officer.
On clicking of “Report” button following Pop-up is displayed. In case of Individual PAN (Where 4th letter in PAN is “P”) Legal Name as per PAN will be auto populated. While registering the complaint, the complainant has to provide the e-mail and Mobile Number for validation and the other information like D.O.B. and Address etc. mandatorily. For the GSTIN registered under category, other than Proprietor, complainants have to enter the personal details, which would be followed by Aadhaar Authentication.
Once the request is submitted, ARN will be generated. In case multiple GSTNs are selected for such complaints, ARN for each GSTIN shall be generated separately and will be assigned to their respective jurisdictional officers on their dashboard for further necessary action. The ARNs are shown to the complainants on registering complaints on the user’s screen
The complaints so registered, shall be made available to the competent authorities at their dashboard under – “Application for Reporting Fake GSTIN’s for further necessary action. The officers shall have a new Role of “PAN Vigilance officer” in the Back Office for this purposed. 6. The Complainant can further track the status of application through track ARN at GST Portal pre-login.

04/07/2021
Fixed deposits will not be renewed automatically and will be eligible for Savings interest rate. If a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower as per RBI circular no 66 dtd 02nd July 2021.
On 2nd July 2021, the Bar Council of India released the Draft of the Advocates Protection Bill 2021. A seven-member committee had been constituted to frame the bill keeping in mind the problem and adversities faced by advocates and their families. The main reasons for the bill is stated to be the protection of advocates and to remove obstructions in the discharge of their duties. Advocate Cannot be Arrested under New Advocates (Protection) Bill, 2021. The recent high rise in incidents of assault, kidnappings, intimidations and regular threats caused to advocates is a major reason. Where the security of lawyers is threatened as a result of their duty, they shall be adequately safeguarded by the authorities.To protect advocates, such an act is necessary. It also states to ensure social security and minimum necessity for life for advocates.
India’s merchandise exports in June 2021 was USD 32.46 billion, an increase of 47.34% over USD 22.03 billion in June 2020 and an increase of 29.7% over USD 25.03 billion in June 2019. India’s merchandise exports in Apr-June 2021 was USD 95.36 billion, an increase of 85.36% over USD 51.44 billion in Apr-June 2020 and an increase of17.85% over USD 80.91 billion in Apr-June 2019. India’s merchandise imports in June 2021 was USD 41.86 billion, an increase of 96.33% over USD 21.32 billion in June 2020 and an increase of 2.03% over USD 41.03 billion in June 2019. India’s merchandise imports in Apr-June 2021 was USD 126.14 billion, an increase of 107.99% over USD 60.65 billion in Apr-June 2020 and a decrease of 3.05% over USD 130.1 billion in Apr-June 2019. India is thus a net importer in June 2021 with a trade deficit of USD 9.4 billion, widened by 1426.6% over trade surplus of USD 0.71 billion in June 2020 (India was net exporter in June 2020) and narrowed down by 41.26% over trade deficit of USD 16.0 billion in June 2019. In June 2021, the value of non-petroleum exports was USD 28.51 billion, registering a positive growth of 41.8%over USD 20.11 billion in June 2020 and a positive growth of 27.33% over USD 22.39 billion in June 2019.
Startup backed by Virat Kohli now valued at Rs 26000 Cr:
Fairfax-promoted Digit Insurance has raised USD 200 million in equity capital from existing investor Faering Capital and new investors Sequoia Capital, IIFL Alternate Asset Managers and others, valuing the four-year-old firm at USD 3.5 billion, which has nearly doubled since the last funding in January. Other investors of Digit include TVS Capital Funds, A91 Partners, Indian Cricket captain Virat Kohli and the employees of Digit.
Overall, Digit enjoys 1.63 per cent of the Rs 1,99,550-crore general insurance industry with a gross written premium of Rs 3,243 crore. The valuation has grown more than four-times since October 2019. This January, it was valued at USD 1.9 billion. In June 2017, it was valued only at USD 47 million, which doubled to USD 95 million by June 2018. In March 2019, valuation jumped three-folds to USD 270 million and by October 2019, it commanded a valuation of USD 817 million.
TDS U/S 194Q on sale of certain goods:

TDS U/S 194Q is applicable on purchase of goods from 1st July, 2021. Goods is defined under Sale of Goods Act as every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.
The definition makes it amply clear that only movable property are goods. So any immovable property such as land and building shall not be goods. So TDS U/S 194Q shall not be applicable to sale of land, building and house property.
CBDT circular 13/2021, dated 30th June 2021 makes it clear TDS U/S 194Q shall not be applicable to sale of shares and securities through recognised stock exchanges and clearing corporation. It also follows that unlisted shares may be subject to TDS, in case the business turnover exceeds Rs 10 Cr and transaction value (with the other party during the year) crosses Rs 50 Lacs.
The above circular also mandates that TDS would be applicable to sale of electricity. Numerous judicial pronouncements have held that sale of electricity is goods. Only sale through power exchanges is exempt.
Motor cars are goods. However if the value of motor vehicle exceeds Rs. 10 Lakh then it may be liable for TCS. If made Liable for TCS then TDS U/s 194Q will not be applicable.
Similarly sale of scrap, coal and liquor may be subject to TCS and in that case TDS U/S 194Q shall not be applicable.
Off the shelf software have been held as goods by Supreme Court in its landmark judgement of Tata Consultancy Services [2004] 141 Taxman 132 (SC). Hence, TDS will have to be deducted U/S 194Q.

03/07/2021
Late Filing Fee for GSTR 1 applicable from June, 2021.
LATE FEE

For NIL Return - RS.500
TURNOVER IN PREVIOUS YEAR

UPTO 1.5 CR - RS.2000
1.5 CR TO 5 CR - RS.5000
Notification No. 20/2021 – Central Tax
Dated 01.06.2021

02/07/2021
Circular No 13/2021 dated 30th June, 2021, clarifying Sec 194Q, explained:

Transactions in securities and commodities through defined recognised stock exchanges and recognised clearing corporation located in IFSC are exempt u/s 194Q.
Transactions in electricity, renewable energy certificates and energy saving certificates traded through power exchanges are exempt from provisions of section 194Q. This implies purchase of electricity which has been held as goods by Hon’ble SC are tax deductible u/s 194Q.
TDS under section 194Q should be deducted net of GST, if charged separately. However for section 206C(1H) GST is to be included.
In case of purchase returns, the extra TDS deduction is allowed to be adjusted against future supply of goods by the same seller. In case the goods are replaced by the seller for the same value, there is no need of any further adjustment.
NRIs without permanent establishment are not covered U/S 194Q.
Sec 194Q is not applicable, if either the seller or buyer is exempt from the provisions of income tax. Important to note that the entire income has to be exempt.
Sec 194Q shall not apply to the 1st year of operations of an entity.
Turnover of Rs 10Cr for applicability of Sec 194Q shall mean business receipts only and not salary, capital gains, interest income, etc.
If an e-commerce operator deducts tax U/S 194O, Sec 194Q and Sec 206C(1H) shall not be applicable. If merely because the seller charges TCS U/S 206C(1H), Sec 194O shall still be applicable.
If 194Q is applicable then section 206C(1H) shall not be applicable. If section 194-O and 194Q are not applicable section 206C(1H) will be applicable.

In continuation to the DGFT notification No. 58, dated 12.02.2021, it is to inform that last date for modification/ updation of IEC has been extended up to 31.07.2021.

01/07/2021
The Central Board of Indirect taxes and customs (CBIC) will issue certificates of appreciation to honor contributions of tax payers on the success of four years of the goods and service tax (GST) regime, even as the government reaffirmed its commitment to continuous improvement in taxpayer services. More than 88% of the taxpayers are from the MSME sectors. About 36% are from micro industries, 41% from small and 11% from medium scale enterprises.
With Goods and Services Tax regime completing four years, the finance ministry on Wednesday said more than *66 crore GST returns have been filed* so far and lower tax rates have helped increased compliance.

A nationwide GST, which *subsumed 17 local levies* like excise duty, service tax and VAT and *13 cesses*, was rolled out on July 1, 2017. In a series of tweets, the ministry said GST has simplified compliance for all taxpayers and the GST Council also recommended several trade beneficial clarifications in light of the Covid-19 pandemic.
Under GST, businesses with an *annual turnover of up to Rs 40 lakh are exempt* from the tax.
Additionally, those with a turnover up to *Rs 1.5 crore can opt for the Composition Scheme and pay only 1 per cent* tax.
For services, businesses with *turnover up to Rs 20 lakh* in a year are GST exempt.
A service provider having *turnover up to Rs 50 lakh in a year can opt for composition scheme for services and pay only 6 per cent tax*.
Under GST, compliance has been improving steadily, with *around 1.3 crore taxpayers registered*, the ministry said.
Tweeting with the *hashtag '*4yearsofGST* , the ministry said GST has reduced the rate at which people have to pay tax. "The revenue neutral rate as recommended by the RNR Committee was 15.3 per cent. Compared to this, the *weighted GST rate at present, according to the RBI, is only 11.6 per cent*".
GST has significantly eased one of the most complex indirect tax systems and a company looking to do business in every state had to make as many as *495 different submissions*. Under GST, that number has *reduced to just 12*, it said. "GST has replaced the complex indirect tax structure with a simple, transparent and technology-driven tax regime and has thus integrated India into a single common market.
Under GST, a four-rate structure that exempts or imposes a low rate of tax 5 per cent on essential items and top rate of 28 per cent on cars is levied. The other slabs of tax are 12 and 18 per cent. In the pre-GST era, the total of VAT, excise, CST and their *cascading effect led to 31 per cent* as tax payable, on an average, for a consumer.
GST also represents an unprecedented exercise in fiscal federalism. The GST Council, that brings together the central and state governments, has met 44 times to thrash out how the tax will work.

30/06/2021
CBIC Notification No 28/2021 dated 30.06.2021 whereby applicability of B2C dynamic QR code provisions extended to 30.09.21 instead of applicable from July 1,2021.
CBDT has issued guidelines vide circular no 13 dtd 30th June 2021 for applicability of section 194Q , which become applicable from a few hours from now.
MCA Date extension:

It has been decided to grant additional time up to 31st August, 2021 for filling of forms of Companies & LLPs due for filling during 1st April, 2021 to 31st July, 2021 other than charge forms without any additional fees.
Accordingly, the due dates of DPT-3 & Form CFSS is extended to 31st August, 2021.
In case of CHG – 1 & CHG – 9, the period from 01.04.2021 till 31.07.2021 shall not be reckoned for the purpose of counting the number of days under section 77 & 78 of the Act.

The government on Tuesday reduced basic customs duty on crude palm oil to 10 per cent, which will help bring down the edible oil prices in the retail market. The Central Board of Indirect Taxes and Customs (CBIC) in a notification cut the basic customs duty on crude palm oil to 10 per cent and refined palm oil to 37.5 per cent with effect from Wednesday.
The effective duty, which includes cess and other charges, on crude palm oil will be 30.25 per cent, while for refined palm oil it would be 41.25 per cent from Wednesday.
“This notification shall come into effect on June 30, 2021 and will remain in force up to and inclusive of the September 30, 2021,” the CBIC said.
Currently, basic customs duty on crude palm oil is 15 per cent, while it is 45 per cent for all other categories of palmolein (RBD Palm Oil, RBD Palmolein, RBD Palm Stearin and any Palm Oil other than Crude Palm Oil).

29/06/2021
Industry bodies such as Assocham and PHD chamber are set to raise several Issues with the government related to goods and service tax (GST) compliances, legislation and administration before July 1, which marks the fourth anniversary of the indirect tax reform. Simplifying input tax credit procedures, addressing issues arising from inverted duty structure, applicability of faceless assessment within GST structure, introducing process of rectification of returns and improvements in the GSTN system are some of the recommendation that will be highlighted by the Industry. Issues such as blocking of input tax credit of buyers or action by GST authorities due to supplier default or non-compliance and parallel investigation proceeding by state as well as central GST authorities despite assessee being under one of the jurisdictions are among other critical ones that will be highlighted.
The NITI Aayog has suggested that the government grant 100% exemption in income tax for donations under Section 80G while extending low-cost capital to not-for-profit hospitals as it strives to build healthcare infrastructure in the country to address a possible third wave. The Aayog has suggested a grant-in-aid scheme for such hospitals, similar to the one in Gujarat, in the long run as these hospitals provide healthcare at much reduced rates compared to hospitals running for profit. “Income-tax exemption could be increased from the current 50% to 100% for philanthropy toward the identified not-for-profit hospitals. This could be a catalyst in channelizing the much-needed funds to deserving hospital,” the Aayog said.
A bankruptcy court in Mumbai has ordered the liquidation of Nakshatra World, a company owned by fugitive businessman Mehul Choksi. About two years ago, ICICI Bank had filed an insolvency petition against the company, which is a subsidiary of Gitanjali Gems. The court appointed Santanu Ray, a partner from Delhi-based AAA Insolvency Professionals LLP, as the liquidator. “In view of the decision of the COC, we are inclined… to initiate liquidation process against the Corporate Debtor,” the dedicated insolvency court said in an order released on Sunday, ICICI Bank did not immediately comment on the matter.

28/06/2021
The judgment of Supreme Court of India states that vaccines are not mandatory and if any person or Authority coerces the public for vaccination, then such person or Authority would be liable for action under sections 188, 166 et al of the Indian Penal Code (Common Cause Vs. Union of India (2018) 5 SCC 1). The legal position settled by Hon’ble Supreme Court and various High Courts in India against forced vaccination and right to choose the health treatment for oneself and one’s children.

It is a settled legal position that a person has the fundamental right to choose medication as per his choice. [Recent judgment dated 23rdJune 2021 passed by the Division Bench Meghalaya High Court regarding Corona Vaccines; Supreme Court judgment in the case between “Common Cause Vs. Union of India (2018) 5 SCC 1”]
On 23rd June, 2021 in the case between Registrar General, High Court of Meghalaya Vs. State of Meghalaya PIL No.6/2021, it is ruled by High Court as under; vaccination by force or being made mandatory by adopting coercive methods, vitiates the very fundamental purpose of the welfare attached to it.
That, the Ministry of Health and Family Welfare on its website under the heading “Frequently Asked Questions on Covid-19 Vaccine” has stated that the Covid-19 vaccine is voluntary.
Ministry of Health and Family Welfare, stated that, “the Covid-19 Vaccine being voluntary, there is no provision for compensation as of now.”
taking the Covid Vaccines is entirely voluntary and there is no relation whatsoever to provision of government facilities, citizenship, job etc. to the vaccine.

The cryptocurrency aficionados’ mantra that Bitcoin is equivalent to digital gold is winning converts among the world’s biggest holders of the precious metal. In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. That’s despite outright hostility toward the asset class from the central bank and a proposed trading ban.
A bad bank in India that’s expected to launch this month may help reduce one of the world’s worst bad-loan piles but market participants say it’s a long path ahead. The new institution, which is set to start operations by the end of June, is likely to handle stressed debt worth 2 trillion rupees ($27 billion) over time, according to a BloombergQuint report. That would be about a quarter of the nation’s non-performing debt load. By housing bad loans of many lenders under one roof, the entity should help speed up decision-making and improve bargaining power when resolving these assets. But for India to overcome its struggles with bad debt and stabilize the financial system of Asia’s third-largest economy, more fundamental problems with insolvency laws introduced in 2016 need to be addressed, investors say. Their confidence in the country’s bankruptcy reforms has been shaken as creditors’ recovery rates fall, delays in closing cases increase, and liquidations exceed resolutions in the insolvency courts.
In a major relief to private schools in the national capital, the Supreme Court on Monday refused to stay Delhi high court's order quashing the Delhi government's ruling which had directed private unaided schools not to collect annual charges and development fees from students till physical re-opening of the schools. The apex court said that the judgement of a single judge bench is pending before a division bench in the high court and the Delhi government should raise its grievances there. The court also refused to entertain Delhi's plea for interim order.
IEC shall be deactivated, if it is not updated within the prescribed time. This update IEC is an Annual requirement to be completed from April to June every year even if there is no change in details.
FSSAI: Extension for Annual Return and License Renewal to FBO’s till 31.08.2021. Relaxations to the FBOs due to Covid-19 Pandemic Regulatory Compliance Division of Food Safety and Standards Authority of India (FSSAI) vide circular No. 15(6)2020/FLRS/RCD/FSSAI dated 23.06.2021.
India Ratings and Research (Ind-Ra) has revised India’s real GDP growth projection for 2021-22 downwards to 9.5% from 10.1%, citing the impact of the second Covid-19 wave.

27/06/2021
Ministry of Finance announces tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19. Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of COVID-19.

In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of COVID-19 during FY 2019-20 and subsequent years.
Unfortunately, certain taxpayers have lost their life due to COVID-19. Employers and well-wishers of such taxpayers had extended financial assistance to their family members so that they could cope with the difficulties arisen due to the sudden loss of the earning member of their family.
In order to provide relief to the family members of such taxpayer, it has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of COVID-19 during FY 2019-20 and subsequent years.
The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs.10 lakh in aggregate for the amount received from any other persons.
Necessary legislative amendments for the above decisions shall be proposed in due course of time.

Newly introduced concept of ‘Liable to tax’ for NRIs:

As per The Finance Act 2020, Indian citizen who is not liable to tax in any other country or territory shall be deemed to be resident in India, if his total income other than income from foreign sources exceeds R.15 Lacs during the previous year. (Sec 6(1A).
As per The Finance Act 2021, the term liable to tax in relation to a person means that there is a liability of tax on that person under the law of any country and will include a case where subsequent to imposition of such tax liability, an exemption has been provided. (Sec 2(29A)).
This amendment takes effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-22 and subsequent assessment years.
Thus if a non-resident Indian is based in a Gulf country having no income tax, but earns more than Rs 15 Lakhs through Indian business, he will be deemed to be a resident in India.
A deemed resident would be deemed to be a resident but not ordinary resident (RNOR). In the case of RNOR, his Indian income would be taxable in India, even if he does not set foot into India.
The benefits of being a RNOR are that an NRI’s foreign income shall not be taxable in India, and that the NRI does not have to file Schedule FA on foreign assets in his income tax return.

26/06/2021
CBDT announcement dated 25/6/21 on tax exemption:

100% Income-tax exemption to the amount received for medical treatment from employer or from any person for treatment of Covid-19 during FY 19-20 and subsequent years.
Income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY 19-20 and subsequent years shall be 100% for the amount received from the employer and limited to Rs. 10 lakh in aggregate for the amount received from any other persons.

CBDT announcement dated 25/6/21 on Extension of Timelines:

The Statement of Deduction of Tax for the last quarter of the FY 20-21, may be furnished on or before 15/7/21.
Form No.16 for FY 20-21, required to be furnished to the employee may be furnished on or before 31/7/21.
Form No. 15G/15H during the quarter ending 30th June, may be uploaded by 31/8/21.
The compliances contained in Section 54 to 54GB of the Act, for which the last date of such compliance falls between 1/4/21to 29/9/21, may be completed by 30/9/21.
Last date of linkage of Aadhaar with PAN is further extended to 30/9/21.
The application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration, etc required to be made on or before 30/6/21 may be made by 31/8/21.
Last date of payment of amount under Vivad se Vishwas (without additional amount) is further extended to 31/8/21.
Last date of payment of amount under Vivad se Vishwas (with additional amount) has been extended to 31/10/21.
Time Limit for passing assessment order which was earlier extended to 30/6/21 and penalty order has been extended to 30/9/21.
Objections to DRP & AO u/s 144C where last date of filing is 1/6/21 or thereafter has been extended to 31/8/21.
Form No. 64D for FY 20-21, has been extended to 15/7/21.
Form No. 64C for FY 20-21, Form No. 15CC for 1st quarter of FY 21-22, Equalization Levy Statement in Form No. 1 for FY 20-21, Form No. 3CEK for FY 20-21, Form No. 34BB has been extended to 31/7/21.
Time Limit for processing Equalisation Levy returns, has been extended to 30/9/21.

A glimpse of the RIL AGM 2021:

Saudi Aramco man joins RIL board. A deal with energy giant could happen this year
Google and Reliance develop Budget phone killer, JioPhone Next. It would be availabe from September 10. Price not confirmed but firms said it will be a breakthrough.
RIL will invest Rs 75,000 crore in its New Energy business over next three years. It will set up renewable energy complex and four giga factories.
Jio working on 5G trials, will collaborate with Google Cloud for solutions, seen as first step towards made-in-India tech.
Trials being done with Facebook for integrating JioMart and WhatsApp.
The company did not cut salaries, bonuses, or any other compensation of its employees throughout the COVID-19 pandemic.
Consumer businesses raise RIL's consolidated revenue to Rs 5.4 lakh crore and Net Profit to Rs 53739 crores (jump of 34.8%) in FY21.
It will establish and enable at least 100 GW of solar energy by 2030.
It will also set up an Advanced Energy Storage Giga Factory that will be used to produce large-scale grid batteries to store the energy that is created.
The company would be the setting up of an Electrolyser Giga Factory to manufacture modular electrolysers of highest efficiency and lowest capital cost
Another initiative will be a Fuel Cell Giga Factory. A Fuel Cell uses oxygen from the air and hydrogen to generate electricity.
The company raised Rs 3,24,432 crores capital through equity sale in Jio Platform and retail, rights issue and asset monetisation.

Should the rise in int rates in US concern India?
The US Federal Reserve on 17 June signalled a potential rise in interest rates by 2023. Since the US is the world’s largest economy, any interest rate changes there influence exchange rates, international money flows and, to a certain extent, interest rates the world over. The foreign institutional investors (FIIs) in search of better returns move back to the US, which offers effectively higher interest rates. When FIIs withdraw money from the host country, it negatively influences the exchange rate, thereby depreciating the host country’s currency and resulting in appreciation of dollar. In India, this can further increase the price of oil and imports, resulting into a further jump in inflation.

25/06/2021
Summary of Higher TDS TCS provision in Income tax

Section 206AA :
Non PAN case / Non Adhaar case And even Non PAN- ADHAAR link case
Will be liable for TDS at rate specified or 20%, Which is HIGHER
Except in 194O & 194Q where It will be 5% in above case
( Note - Non linked will be as good as non having PAN)
Section 206AB :
NON filling of ITR for 2 Years & in both years, TDS Amt was higher than 50000
Then TDS rate would be TWICE RATE or 5 %, Whichever is higher
Section 206CC(1)
Non PAN case / Non Adhaar case And even Non PAN- ADHAAR link case
Will be liable for HIGHER rate of TCS at twice rate or 5%, Which is HIGHER
(Note - Non linked will be as good as non having PAN)
Section 206CCA
NON filling of ITR for 2 Years & in both years, TCS Amt was higher than 50000
Then TCS rate would be Twice rate or 5 %, Whichever is higher

Smaller banks that had allowed cryptocurrency exchanges and trader to open accounts with them are now getting cold feet and pulling out despite Reserve Bank of India’s recent clarification that its old circular banning payments related to cryptocurrencies was no longer valid. While large banks like state Bank of India, HDFC Bank, Axis Bank and ICICI Bank continue to be reluctant, some smaller banks such as IDFC Bank had started offering their services to some exchanges, several people in the know said. Now, smaller player seems to be pulling back. IDFC, in the last one week, reached out to some exchanges and said that they are “temporarily deactivating accounts.” The bank gave no reasons for the move.
India crypto investors are betting on the nascent industry even as investors and experts ruminate on whether the market has entered a bearish phase or not. A drop in prices of top cryptocurrencies by 20-40% between June 15 and June 22 may have egged on Indian investors to buy the dip or average down their investments in the belief that the fundamentals of Bitcoin and other major tokens remain strong.

24/06/2021
The multiplex industry, which was reeling under heavy losses due to the Covid-19 pandemic, is in for another rude shock as various state governments that had industry to attract investments are now seeking a return of the concessions citing breach of contract. States such as Uttar Pradesh, Maharashtra, Haryana, West Bengal, Tamil Nadu and Karnataka had dished out sops, which included a waiver of entertainment tax for up to five years, to multiplexes. The incentives with respect to entertainment tax were given on the condition that the multiplex the would continue operations for five years from the end of the exemption period. However, due to Covid -19 induced lockdown, many multiplexes couldn’t complete this period. Though they have shown the intent to continue the business once the environment is conducive to exhibit movies, a few state governments have now started the recovery process.

Vehicle financing and microfinance segments of non-banking finance companies (NBFCS) have been the hardest hit as localised lockdown and rising infection among employees during the second wave of Covid-19 took a toll on their loan collections, India Ratings and Research (Ind-Ra) has said. The credit rating agency estimates that NBFCS collection efficiency for vehicles deployed in goods and passenger movement could have declined by 45-55% over April due to a steep fall in the second half of the month, raising the risk of a steep spike in their non-performing assets (NPAS). “A similar impact has been seen by vehicles that are involved in tourist services, school bus operation, and local conveyance where a large portion of this book may already be restructured or may have slipped into NPAs

To update your Passport number in your vaccination certificate please do the following:
Please go to the cowin website
Login using the registered mobile number
Select Raise a Issue
Under Raise a issue ... select the passport option
Select the person from the drop down menu
Enter passport number
Submit
You will receive the new certificate in seconds. This would facilitate travel across borders when permitted.

23/06/2021
New functionality for compliance U/S 206AB and 206CCA (Cir 11/2021):

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.
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’.
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.
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.
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.

22/06/2021
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.

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.
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.
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".
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

Invoice issues to UIN holders require dynamic QR Code.
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.
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.
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.
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.
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”

21/06/2021
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.

Applicability of Section 206AB:
Deductor :-This provision is applicable to each and every deductor who is required to deduct TDS under this Act
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.
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%
In case the deductee does not furnish his PAN then the rate shall be 20%.

20/06/2021
11 Restrictions on cash transactions in Income Tax Act:

As per Sec 13A, if donation is received by political parties in cash exceeding Rs 2000, exemption shall not be available to them.
Deduction U/S 35AD shall not be allowed if cash payment exceeds Rs 10,000.
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.
Payment of expenses in cash exceeding Rs 10,000 shall not be allowed as a deduction (Sec 40A(3)).
Payment for capital expenses in cash exceeding Rs 10,000 shall be ignored for calculation of actual cost of asset (Sec 43(1)).
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).
Contribution to charitable institutions in cash exceeding Rs 2,000 shall not be eligible for deduction U/S 80G.
No deduction shall be allowed U/S 80GGA if contribution is paid in cash in excess of Rs.10,000.
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.
Penalty U/S 269SS and T of equal amount for accepting and repaying loan in cash of Rs 20,000 or more.
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

19/06/2021
The Government has issued 7 GST Circulars providing clarity on the following issues:

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
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
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
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
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
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
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

18/06/2021
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:

FDI limit in the insurance sector is increased from 49% to 74% under automatic route.
FDI in insurance broking business is increased to 100% under automatic route.

17/06/2021
Mandatory FSSAI number on invoices:

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.
The implementation of FSSAI Act 2006 and Rules and Regulations made thereunder’ depends upon the FSSAI License and Registration number.
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.
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.
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.

16/06/2021
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 :

DSC not getting registered or updated
New Incorporated companies or Firms are not able to register themselves on ITD Portal
Forget password option not working
IT Returns in PDF can’t be downloaded
IT acknowledgements in PDF can’t be downloaded
DIN Number not getting auto populated in new ITD website
Challan Numbers not getting validated
no tab for VSV tab
Unable to file TDS Returns
Unable to file 15CA/15CB
E proceedings tab not workings
Grievances registered on ITD website are deleted without addressing
Old demands outstanding not reflected
Old Grievances registered not reflected
Unable to file Income Tax Returns for FY 2021
Accounts get locked, if we try to login and not able to login due to non-operatibility of site
Unable to raise refund reissue request
Unable to view Form 26AS
PAN Number is not shown as valid
Mismatch in PAN Data is shown when technically there is no mismatch
JSON Utility not available
while filing Verification in ITR if we select ‘Self’in capacity then Name disappeared n Shown in validation errors.
UDIN is also not able to update for last month audit and other certification.
Rectification of return options not available.
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.

15/06/2021
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.

14/06/2021
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.

13/06/2021
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.

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.
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. >
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.

12/06/2021
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.

11/06/2021
Bank charges on ATM increased:

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.
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.
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).
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.

10/06/2021
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%:

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.
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.
Negotiators hope to advance progress toward a binding agreement at a meeting of leaders of the Group of 20 in Italy in July.
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.

09/06/2021
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.

08/06/2021
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 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

07/06/2021
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.

06/06/2021
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.

05/06/2021
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".

04/06/2021
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.

03/06/2021
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

The Government of India had approved PLI scheme for pharmaceutical sector.
Notification in this regard was thereafter issued by Ministry of Chemicals and Fertilizers (Department of Pharmaceuticals) on 3 March 2021.
The operational guidelines detailing therein the process, requirements, etc. to be followed by businesses while making an application has been released.
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.

02/06/2021
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.

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.

31/05/2021
GDP contracts by 7.3%:

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.
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.
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 %.
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.

30/05/2021
Step by step guide to apply for Bulk e-Passes for activities opening up from 31st May 2021

Go to the website link https://epass.jantasamvad.org/epass/init/
Click on the Click Here button in blue color.
In the What do need help with? box, click on the arrow on the right side of the box.
Select option Bulk e-Passes for activities opening up from 31st May 2021
Click on Submit. A new page will open which will take you to an application form.
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
Fill in the application form by entering details of the manufacturing unit.
In the _Employee details* section add the information about the employees.
To add details for more than three employees, click on Add/View More Employees
To add the required documents click on Choose File and upload it.
Check the I acknowledge… box.
Submit the application form.
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.

29/05/2021
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:

GST Exemption to some COVID-19 supplies till 31st August 2021.
A Particular Medicine for Black Fungus also exempted.
GoM to be formed to check if further reductions to be given to new items, GoM to submit reports before 8th June.
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.
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.

28/05/2021
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:

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%.
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.
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.
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.
Stress tests indicate that Indian banks have sufficient capital at the aggregate level even in a severe stress scenario.
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.

27/05/2021
Contradiction on extension of time limitation is over:

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.
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.
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.
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).
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.
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.
The CBDT has thus laid to rest the contradiction and the period of limitation stands extended until further orders.

26/05/2021
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.

25/05/2021
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:

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).
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).
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.
‘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.
Under the sector `Computer Software & Hardware’, the major recipient states are Gujarat (78%), Karnataka (9%) and Delhi (5%) in F.Y. 2020-21.
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%).
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.
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.
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

24/05/2021
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

23/05/2021
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.

22/05/2021
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.

21/05/2021 RBI transfers Rs 99122 Cr to the Govt:

Sec 47 of the Reserve Bank of India (RBI) Act, 1934 mandates transfer of surplus profit to the Central Government.
Accordingly, RBI has approved the transfer of Rs 99,122 crore as a surplus for nine months of the previous financial year.
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.
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.
This is the second highest transfer after 2018-19, when Rs 1,75,987 crores were transferred as a surplus.

20/05/2021
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.

19/05/2021
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

18/05/2021
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.

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.
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.
RFID related report for Vehicle: This report can be used to know the last tolls that have been passed by any vehicle.
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.

17/05/2021
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).

16/05/2021
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.

15/05/2021
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.

14/05/2021
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.

13/05/2021
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:

Provision:
Section 206AB mandates the person to deduct TDS in case of non-filing of an income tax return by the specified person.
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.
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%.
Effective date of applicability: 1st July, 2021.
Exemption: TDS under Salary, withdrawal of PF, winnings under horse races, games, income against investment in securitisation trust, withdrawals of cash
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.

12/05/2021
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

11/05/2021
Waiver of IP protection for Covid vaccines:

US has supported a waiver of intellectual property protection for Covid vaccines.
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.
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.
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.
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.
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

10/05/2021
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:

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.
Such income is taxed on a gross basis at 30% plus applicable surcharge and cess.
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.
Gaming Operator have to deduct 30% TDS on winnings exceeding Rs. 10,000/- (As per Section 194B of the Income Tax Act)

09/05/2021
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-

Introduce sufficient checks and balances with reporting mechanisms, accounting standards, enable traceability and combat money laundering and potential terrorism financing.
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.
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.
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.

08/05/2021
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.

Jana Small Finance Bank: 7.00 per cent p.a.
Surodaya Small Fin Bank: 6.75 per cent p.a.
DCB Bank: 6.70 per cent p.a.
IndusInd Bank: 6.50 per cent p.a.
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.

07/05/2021
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.

06/05/2021
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

The one-time restructuring scheme will be available for borrowers with aggregate outstanding dues of up to Rs 25 crore.
Only accounts which are classified as standard as of March 31, 2021 can be restructured.
Borrowers who have received relief under previous restructuring schemes, including that announced last year, would not be eligible.
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.
The scheme would have to be invoked by Sept. 30 and implemented within 90 days of invocation.

Relaxation for loans restructured last year:

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.
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.

05/05/2021
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.

04/05/2021
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.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1715464
Igst also exempted on imports of covid 19 relief material, earlier customs duty exemption was given........
Read More
https://taxguru.in/custom-duty/igst-exemption-covid-relief-material.html

03/05/2021
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

02/05/2021
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:

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.
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.
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.
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

01/05/2021
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:

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.
Of that, 90% was derived from its primary revenue sources including advertisements, commission, and subscription offering Zomato Gold.>
Its losses widened over 2.5 times to Rs 2385.6 crore during FY 19-20 from Rs 1010.2 crore in FY18-19.
Zomato has raised a total Rs 12666.8 crore over the course of its 13-year existence>
From 2014, the company has made 20 acquisitions across eight countries.
The restaurant aggregator paid $35 million in cash for acquisition of Uber Eats.
Zomato was valued at $5.4 billion in its last financing round.

30/04/2021
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.

29/04/2021
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.

28/04/2021
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.

27/04/2021
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.

26/04/2021
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.

25/04/2021
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.

24/04/2021
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.

22/04/2021
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.

21/04/2021
?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.

20/04/2021
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.

19/04/2021
ECLGS extended to SMA-1 accounts:

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).
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.
Accounts that are classified as non-performing assets or where overdues have crossed 60 days (SMA-II) are not eligible.
Sanctions and disbursements under the facility are relatively faster since lenders have the Central government guarantee in case of default against these loans

18/04/2021
Guidelines for start up seed funding
https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/Guidelines%20for%20Startup%20India%20Seed%20Fund%20Scheme.pdf

17/04/2021
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.

16/04/2021
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.

15/04/2021
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.
DELHI GOVT COVID RESTRICTIONS
As per Press Announcement today by Delhi CM

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

14/04/2021
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.
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13/04/2021
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.

12/04/2021
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:

Raising the corporate income tax rate to 28 percent.
Strengthening the global minimum tax for U.S. multinational corporations.
Reducing incentives for foreign jurisdictions to maintain ultra-low corporate tax rates by encouraging global adoption of robust minimum taxes.
Enacting a 15 percent minimum tax on book income of large companies that report high profits, but have little taxable income.
Replacing flawed incentives that reward excess profits from intangible assets with more generous incentives for new research and development.
Replacing fossil fuel subsidies with incentives for clean energy production.
Ramping up enforcement to address corporate tax avoidance

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.
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.

11/04/2021
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.

10/04/2021
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.

09/04/2021
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:

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.
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).
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.
HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
WRIT PETITION No. 24150 of 2020. Date: 15.03.2021
M/s SRI LAKSHMI VENKATESWARA GENERAL MERCHANTS AND COMMISSION AGENTS
Vs
THE STATE OF ANDHRA PRADESH
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.

08/04/2021
Key takeaways of the RBI monetary policy:

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.
Projection of real GDP growth for 2021-22 is retained at 10.5 %.
Targeted Long Term Repo Operations (TLTRO) on Tap scheme has been extended by a period of 6 months till 30th Sep 2021.
A fresh support of ?50,000 Cr has been provided to the All-India Financial Institutions (AIFIs) for new lending in 2021-22.
RBI has enhanced the limit of maximum balance per customer at end of the day from ?1 lakh to ?2 lakh for Payments Banks.
A Committee has been constituted to undertake a comprehensive review of the working of ARCs in the financial sector ecosystem.
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.
Farm credit against hypothecation of agriculture produce has been enhanced from ?50 lakh to ?75 lakh per borrower.
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.
Reserve Bank will construct and periodically publish a “Financial Inclusion Index”.
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).
It is proposed to increase the limit of outstanding balance in such PPIs from the current level of ?1 lakh to ?2 lakh.
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.
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).
First GSAP will be conducted on 15th April 2021 for Rs 25,000 Cr.

07/04/2021
Will countries agree on a proposal for Global Minimum Tax (GMT)

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.
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.
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.
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.
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.

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06/04/2021
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.
https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2021/cs-nt2021/csnt41-2021.pdf;jsessionid=98BC37A65EC0F25B11835949A890DE2A
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:

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.
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.
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.
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:

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.
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.
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.

05/04/2021
Refund obtained via writ petition:
Case: GE CAPITAL MAURITIUS OVERSEAS INVESTMENTS (W.P.(C) 3617/2020)
Facts:
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.
04/04/2021
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.
and
(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.
03/04/2021
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
02/04/2021
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 :

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.

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

01/04/2021
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

31/03/2021
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.

30/03/2021
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

29/03/2021
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.
28/03/2021
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.

27/03/2021
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.

26/03/2021
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.

25/03/2021
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
http://cajatinminocha.com/resource/Image/AuditAuditorsAmendmentRules_24032021.pdf
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
http://cajatinminocha.com/resource/Image/AuditAuditorsAmendmentRules_24032021.pdf
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
http://cajatinminocha.com/resource/Image/ScheduleIIIAmendmentNotification_24032021.pdf

24/03/2021
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.

23/03/2021
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.

22/03/2021
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.

21/03/2021
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.
Comments:
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).

20/03/2021
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]

19/03/2021
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 :
http://www.mca.gov.in/Ministry/pdf/AmendmentNotification_18032021.pdf
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.

18/03/2021
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.

17/03/2021
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.

16/03/2021
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.

15/03/2021
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.

14/03/2021
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.

13/03/2021
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)
Facts:
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.

12/03/2021
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
Facts
• 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)
Held
• 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.)
IN THE ITAT MUMBAI BENCH 'I'
Bank of India
v.
Assistant Commissioner of Income Tax, Circle 2(1)(1), Mumbai

11/03/2021
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.
PLAN YOUR CASH FLOWS SO AS TO MEET THE REQUIREMENT OF TIMELY PAYMENT OF ESI AND PF CONTRIBUTION.

10/03/2021
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
https://pib.gov.in/PressReleasePage.aspx?PRID=1703454
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

09/03/2021
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.

08/03/2021
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.

07/03/2021
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.

06/03/2021
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.

05/03/2021
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.

04/03/2021
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
ISSUE PENDING BEFORE COURT :::
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.

03/03/2021
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”.

02/03/2021
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.

01/03/2021
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.

28/02/2021
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.

27/02/2021
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.
https://content.dgft.gov.in/Website/dgftprod/211069e9-9609-44ac-9ef6-9d43aae2bb75/PN%2040_PC1_25_02_2021.pdf
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.

26/02/2021
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.

25/02/2021
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.

24/02/2021
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.

23/02/2021
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.

22/02/2021
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

21/02/2021
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.

20/02/2021
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.

19/02/2021
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).

18/02/2021
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.
https://www.cowin.gov.in/home
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.

17/02/2021
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.

16/02/2021
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.”

15/02/2021
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.

14/02/2021
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.

13/02/2021
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.

12/02/2021
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):
Facts:
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.

11/01/2021
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).

10/02/2021
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.

09/02/2021
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.

08/02/2021
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?”
07/02/2021
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.

06/02/2021
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.

07/02/2021
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.

05/02/2021
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?
04/02/2021
Tax Deduction at Source on purchase of goods
Introduction of new Section 194Q w.e.f. July 01, 2021:
Applicability:
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
cajatinminocha.com/Image/Feb_2021_Calendar.pdf

03/02/2021
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
• 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.
02/02/2021
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.....
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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
01/02/2021
Budget 2021 Highlights...
cajatinminocha.com/resource/Budget_2021_Highlights.aspx
Budget 2021 Memorandum..
cajatinminocha.com/Image/Budget_2021_Memorandum.pdf
Budget 2021 Direct Tax finer points...
cajatinminocha.com/resource/Budget_2021_Direct_Tax_Points.aspx
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.

31/01/2021
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.

30/01/2021
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

29/01/2021
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%.
ROC EXTENSION
AOC 4 for AGM 2020 can be filed till 15 FEB 2021 without additional Fee vide MCA circular dated 28th January 2021
28/01/2021
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.

27/01/2021
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.

26/01/2021
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

25/01/2021 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.

24/01/2021
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.

23/01/2021
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.

22/01/2021
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.

21/01/2021
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)

20/01/2021
INDIRECT TAXATION
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.

19/01/2021
MCA
• 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)

18/01/2021
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

17/01/2021
MCA
•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.

16/01/2021
MCA
•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.

14/01/2021
MCA
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.

13/01/2021
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.

12/01/2021
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.

10/01/2021
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.

09/01/2021
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)

08/01/2021
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.

07/01/2021
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.

06/01/2021
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

05/01/2021
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
cajatinminocha.com/Image/CGHS_Circulars_2020.pdf

04/01/2021
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
cajatinminocha.com/Image/Gist_December2020.pdf

03/01/2021
Remission of Duties and taxes Scheme to boost exports......
Read More
cajatinminocha.com/Image/RoDTEP_Scheme.pdf
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

02/01/2021
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.

01/01/2021
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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