Walmart Vriddhi to assist MSMEs with developing Uttar Pradesh

Worldwide retailer Walmart on Thursday extended its MSME-centered Vriddhi e-institute to Uttar Pradesh, beginning with Agra.  The stage will give small businesses admittance to abilities and s...

IRDAI asks Insurers to take conscious call on declaring dividend for F.Y 2020-21

CIRCULAR NO. IRDA/F&A/CIR/MISC/032/02/2021

The IRDAI has observed that insurers' performance in terms of business is gradually reviving. Therefore, it has been decided to withdraw the cir...

SEBI seeks report from NSE on “trading halt”

Press Release No. PR No.8/2021, 

The SEBI has advised NSE to carry out a detailed root cause analysis of the “trading halt” witnessed at NSE and explain the reasons for trading not m...

SEBI proposes introduction of concept of “Accredited Investors” in Indian securities market

The SEBI has issued consultation paper on introduction of concept of “Accredited Investors” (‘AI’) in Indian securities market.  The paper proposes that resident Individuals, HUFs and ...

Food, TV, Playroom, Gym, Housekeeping etc. along with Hostel Accommodation service is a mixed supply: Raj AAR

 [2021]  (AAAR-RAJASTHAN)[12-05-2020] 

Fact of the Case 

  • The applicant is running a hostel for the residential accommodation of students. In th...
Stock transfer & Lien Fee with respect to agriculture produce and non-agriculture products are liable to GST: HR AAR

[2021]  (AAR - HARYANA)[22-02-2019] 

Fact of the Case 

  • The applicant is a warehouse providing storage and storage services for both agriculture and ...
CBDT releases MLI synthesised text for India-Norway DTAA

The Central Board of Direct Taxes (CBDT) has released the synthesised text for India-Norway DTAA., including the changes made by the MLI based on respective positions taken by both countries. ...

Deduction for bad debt doesn’t prerequisite money lending licence; writing off in books of account is sufficient

Pranava Electronics (P.) Ltd. v. DCIT - [2021] (Karnataka) 

Assessee was engaged in the business of manufacturing and trading of electronic goods and developmental activities. ...

SIDBI extends state-wise MSME program to Andhra Pradesh

Small Industries Development Bank of India (SIDBI) — the vital financial institution focusing on micro, small, and medium enterprises (MSMEs) has extended its MSME uphold program to build up a 'p...

CBDT transfers pending cases under Black Money Act to Central Charges; issues guidelines for smooth transfer

Notification F. No.225/24/2021fITA-II, dated 23-02-2021 

The Central Board of Direct Taxes (CBDT) has decided to transfer all cases under Black Money (Undisclosed Foreign Income and Asse...

Ignorance of material on record on part of ITAT is a mistake apparent on record; rectification was justified

CIT v. Shree Ganesh Ventures - [2021] (Madras) 

Assessee purchased scraps from two sundry sellers. Assessment Officer (AO) sent notice pursuant to section 133(6) to one of these ven...

Coal disposed of by power plant is covered under HSN 2701 & compensation cess at rate of Rs. 400 per tonne to be levied

Authority for Advance Rulings, Haryana Haryana Power Generation Corporation Ltd., In re - [2021]  (AAR - HARYANA) 

Fact of the Case 

  • The applic...
HC strucks down demand order as the same was not uploaded on the website & procedures u/s 142(1) was not followed

Ram Prasad Sharma v. Chief Commissioner - [2021] Madhya Pradesh) 

The GST Authority passed an order on the applicant and raised tax demand upon it. Later,...

Haryana State Pollution Control Board notified for the purpose of section 10(46) exemption

Notification No. 8/2021, dated 22-01-2021 

The Central Board of Direct Taxes (CBDT) has notified ‘Haryana State Pollution Control Board’, a Board constituted by the ...

Tax Dept. conducts search & seizure operation in Pune & Bhopal

Press Release, dated 22-01-2021 

The Income-tax Department has carried out search and seizure operation on 17-02-2021 on a group based in Sangamner, Pune at 34 different locations across...

Sec. 40(a)(i) disallowances attract only in respect of expenses which are claimed u/s 30 to 38

Interactive Avenues (P.) Ltd. v. DCIT - [2021]  (Mumbai - Trib.) 

Assessee made certain payments to Facebook Ireland Limited (FIL) towards the cost of advertis...

Revelation of Provisional Attachment under GST

In the recent past, the GST authorities have overly invoked the provisions of temporary attachment and attached the bank accounts of various taxpayers. In many cases, taxpayers have challenged the ...

IRP who had given consent prior to cut off date was not guilty of professional misconduct for acting IRP without AFA

Rajesh Samson, In re - [2021]-(IBBI) 

As per regulation 7A, one of the essential conditions for undertaking any assignment by an Insolvency professional (IP) is tha...

Asset monetisation : overall of Rs 2L cr seen by 2024

The govt will soon form up a pipeline of infrastructure assets which belonging to various department and state-run entities for monetisation throughout the upcoming three years. The assets that wou...

Tax Dept. conducts search & seizure operation on Multi-specialty Hospital in Srinagar

Press Release, dated 21-02-21 

The Income Tax Department has carried out search and seizure operation on a group running the biggest private Multi-specialty Ho...

Receipts from sales out of stocks that were accepted during scrutiny can’t be treated as unexplained income

PCIT v. Akshit Kumar -[2021] (Delhi) 

Assessee was engaged in the business of textiles. All sales undertaken by assessee were in cash only. Noting such particulars, Reve...

Guj. HC directed CBIC to issue guidelines that no recovery is to be made at time of search

Bhumi Associate v. Union of India - [2021]  (Gujarat) 

The Honorable Gujarat High Court directed the Central Board of Indirect Taxes and Customs (CBIC) and Chi...

No GST exemption on drilling of borewells and letting out of compressors for pumping of water from borewells to agricultural fields

Authority for Advance Rulings, Tamilnadu Aravind Drillers, In re - [2021]  (AAR - TAMILNADU) 

Fact of the Case 

  • The applicant was engaged in th...
Director/Partner not liable for offences u/s 138 unless involved in day-to-day affairs of company /partnership firm

Ajay Rampal Sarda v. Pankaj - [2021]  (Bombay) 

A person who simply appears to be a director of a company or partner of a partnership firm may not be prosecuted for an offence ...

Directors disqualified prior to May 7, 2018 for non-filing of financials by Cos. can take advantage of ‘CFSS-2020’: HC

TAPASH KUMAR SAMADDAR v. MINISTRY OF CORPORATE AFFAIRS - [2021] (Delhi) 

In the present case, the Delhi High Court stated that directors who were disqualified before May 7, 2018 for...

PM Modi's pro entrepreneurship scheme disburses Rs 1,300 cr subsidy in FY21 ; Bank of Baroda has contributed more

The Modi government's professional business venture conspire Prime Minister's Employment Generation Program (PMEGP) has disbursed an margin money (subsidy) of Rs 1,279.72 crore as of January 31, 20...

No sec. 40A(2) disallowances on payment made to sister-in-law as she isn’t relative as per sec. 2(41): ITAT

Rajesh Bajaj v. DCIT - [2021] (Allahabad - Trib.) 

Assessee was engaged in the business of dealing in the paper. He filed his return of income and his case was chos...

Reversal of ITC required on inputs contained in finished/intermediate goods if destroyed in fire: Gujarat AAR

Authority for Advance Rulings, Gujarat Jay Chemical Industries Ltd., In re - [2021]  (AAR – GUJARAT )

Fact of the Case 

  • The applicant company was ...
Andhra Pradesh High Court allowed filing of Form GST TRAN 1, directed dept to either open the GSTN portal or accept manual application

Sri G.K. Exim v. Deputy Commissioner of Commercial Tax, Visakhapatnam - [2021]  (Andhra Pradesh) 

Fact of the Case 

  • The a...
Liquidator penalised for professional misconduct for accepting assignment without valid AFA after cut-off date

Venkata Sivakumar, In re - [2021] (IBBI) 

The Insolvency and Bankruptcy Board of India issued a notice of "V" for accepting assignment as Liquidator in Corporate In...

Uber drivers are employees, not independent Contractors of ride-hailing company: UK Apex Court

The Apex Court of U.K had ruled that Uber has to consider its drivers as "workers" from the time they log on to the app, until they log off. With the advent of decision of À Court, all the drivers...

Atmanirbharta through FDI

Finance minister Nirmala Sitharaman declared a several activities that will help encourage the reconciliation of Atmanirbhar Bharat with the worldwide economy. The public authority is going all out...

Sec. 54 exemption available even if capital gains arising from sale of multiple properties invested on 1 residential house

Vijay Kumar Wanchoo v. ITO - [2021] (Delhi - Trib.) 

The assessment sold two residential flats and purchased one residential flat. Assessee calculated gross amount ...

CBIC provides permanent facility to resolve invoice mismatch error (code SB-005) on payment of fees of Rs. 1000

Circular No. 05 /2021-Customs Dated 17th February, 2021 

CBIC has provided the facility for resolving invoice mismatch errors with officer interface as an alternative me...

Appeal can’t be construed as time barred when no order was uploaded on GST Portal: Guj. HC

Gujarat State Petronet Ltd. v. Union of India - [2021] (Gujarat) 

Fact of the Case 

  • The assessee, an undertaking of Government of G...
Corporate debtor which wasn’t a MSME on date of initiation of CIRP can’t be treated as MSME later: NCLT

POSCO India Pune Processing Center (P.) Ltd. v. Dhaval Jitendrakumar Mistry Resolution Professional of Poggenamp Nagatsheth Powertronics (P.) Ltd.  (NCLT - Ahd.)

 <...

HC upholds conviction of accused u/s 138 of NI Act for non-payment of dues towards fabrics purchase

Rajesh Kumar v. Mehrotra Impex (P.) Ltd. - [2021] (Delhi) 

In the instant case, the petitioner was running a garment factory where he had purchased some fabric materials...

Indian Bank signs MOU with SID of IISc, for subsidizing Start-ups and MSMEs

State-owned Indian Bank said it has entered a MOU with Society for Innovation and Development (SID), an activity of Indian Institute of Science, for stretching out select credit facility to Start-u...

Bank of Maharashtra has tie – up with Vanaya Network for channel financing

Bank of Maharashtra on Thursday went into an strategic partnership with fintech organization Vayana Network to offer channel financing support for MSMEs. Vayana is India's biggest inventory network...

GST leviable on pathology or diagnostic services supplied to the researcher

Authority for Advance Rulings, Gujarat Sterling Accuris Wellness (P.) Ltd., In re - [2021] (AAR - GUJARAT) 

Fact of the Case 

  • The applicant was a cl...
Voluntary retirement compensation paid to employees took over by joint venture is deductible u/s 37

CIT v. GE Medical Systems (I) (P.) Ltd. - [2021]  (Karnataka) 

Assessee was engaged in the business of manufacturing and marketing of x-ray medical equipment a...

CBDT amends ‘Faceless Assessment Scheme, 2019’ to bring provisions at par with Section 144B

Notification S.O. 741(E) & 742(E), dated 17-02-2021 

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has inserted a new Sectio...

Proceedings under Code are only meant to resolve insolvency issues and not to adjudicate a claim: NCLAT

Vijayalakshmi Enterprises v. Malabar Hotels (P.) Ltd. - [2021] (NCL-AT) 

Initiation of Corporate Insolvency Resolution Process (CIRP) would not be equivalent to adj...

Waiver of pre-deposit for filing appeal before DRAT is not sustainable in law, rules SC

Kotak Mahindra Bank (P.) Ltd. v. Ambuj A. Kasliwal - [2021]  (SC) 

The appellant-Bank filed an appeal before the Supreme Court against the order of the High Co...

Technology industry driving India's recovery post Covid far better

The Indian innovation sector recover to develop at 2.3% year-on-year on the rapid of quick increasing speed in digital transformation and tech adoption .As the financial year 2020-2021 comes a conc...

Noting in a diary couldn’t be ground for sec. 69A additions unless same is supported by corroborative evidence

During a search conducted at assessee’s premises, a diary was found. Such a diary had nothing which showed an amount received as consideration for the transfer of property by assessee.  Cons...

18% GST on security guard & housekeeping services to Kuvempu University under forward charge

Authority for Advance Rulings, Karnataka KSF-9 Corporate Services (P.) Ltd., In re - [2021] (AAR – KARNATAKA )

Fact of the Case 

  • The applicant company ...
RBI allows Authorised Dealer Category-I Banks to post and collect margin in India

CIRCULAR NO. RBI/2020-21/98 A. P. (DIR SERIES) CIRCULAR NO. 10, Dated 16.02.2021 

The Reserve Bank of India (RBI) has allowed AD Cat-I banks to post and collect margin i...

New industrial policy of Tamil Nadu expects to attract in Rs 10 lakh-crore investment by 2025

Tamil Nadu government presented new industrial policy 2021 to accomplish a yearly development rate of 15% in the manufacturing sector while attracting investment worth Rs 10 lakh crore and creating...

RBI tightens investment norms in NBFC from FATF non-compliant jurisdictions

Circular No. DOR.CO.LIC.CC No.119/03.10.001/2020-21, Dated February 12, 2021 

 

In order to curb money laundering, the Reserve Bank of India has come up with ...

Provisional attachment under PMLA after approval of resolution plan is contrary to section 32A, rules HC

Union Bank of India E Andhra Bank v. Union of India 

In the immediate case, the Corporate Insolvency Resolution Process was launched against the corporate debtor, while ...

Replacing machinery part is revenue exp. if there was no increase in production capacity after such replacement

Jaya Hind Industries Ltd. v. DCIT (Pune - Trib.) 

Assessee was engaged in the business of manufacturing pressure and gravity die casting, H.T. coils etc. Assessee incurr...

Authorities can initiate audit and investigation simultaneously in GST

Suresh Kumar P.P. v. Deputy Director, Directorate General of GST Intelligence 

Fact of the Case 

  • The petitioners were Managing Director and Director of a...
MSME bank SIDBI posts Quarter 3 net profit of Rs 630 crore as NII develops, credit development stays strong

Small Industries Development Bank of India (SIDBI) — the primary financial institution focusing on micro, small, and medium enterprises (MSMEs) in the nation have announced a 9 percent net profit...

NBFCs look for relaxations to new guidelines proposed by RBI

Non-banking finance companies (NBFCs) have requested similar advantages as given to banks while the central bank hopes to fit guidelines for all lending institution as much as similar. These lender...

Check your Startup Eligibility Criteria for Startup India Seed Fund Scheme (SISFS)

The Indian government has approved the Startup India Seed Fund Scheme (SISFS), which will give beginning phase subsidizing to tech new startup by means of a corpus of INR 945 Cr. The Startup India ...

Top 3 things to be considered before investing in ELSS Funds

Investor who has not made their tax saving investment need to do as such at the most punctual. One product they must consider is equity-linked savings scheme (ELSS), even as called tax saver funds....

After a lot of discussion Govt consider bringing down GST on pesticides to 5% from 18%

As a feature of efforts to acquire equality tax collection on agro-inputs, the Department of Chemical and Petrochemicals has address toward Finance Ministry for reducing GST on pesticides from 18 p...

UP Govt targets 250% increase in exports within 4 years

Adjusting itself to the central government's point of expanding trades, the Uttar Pradesh government has set itself a profoundly aspiring objective of exporting goods products worth Rs 3 lakh crore...

Sum received by Honda-Japan for offshore supply of CR-V cars and components not taxable in India: AAR

Applicant Honda Motor Company Limited, was a company established under the laws of Japan. It was holding 97.4% shares in its Indian subsidiary (HSCI) which was incorporated to manufacture and sale ...

No help against capture if inclusion found in fake invoicing during investigation

Fact of the Case 

  • The petitioner was arrested for offence of wrongly availment of input tax credit. He filed a writ petition with the High Court alleging ...
Bar u/s 10A of IBC against initiation of CIRP of a corporate debtor is retrospective: Apex Court

In the instant case, the Apex Court held that Section 10A of the IBC bars filing for a corporate debtor for arising on or after 25-3-2020. The Bar created is retrospective as a cut-off date has bee...

2020 funding in new startup taking into small business technology adoption, access to finance jump regardless of Covid impact

Investments in beginning phase enterprises taking into innovation/technology adoption among small and medium enterprises (SMEs) in 2020 expanded to $51 million across nine arrangements from $6 mill...

Ready to cook popcorn premix would be classifiable under heading no. 20081990, taxable at 12%

Fact of the Case

  • The applicant was engaged into import of maize of popcorn variety (Popcorn maize) in bulk. After importing, this popcorn maize would be fumigated and cl...
CBIC issued guidelines on procedure to be followed during search operation

Instruction No. 01/2020-21 Dated 2nd February, 2021 

CBIC has issued guidelines concerning the procedures to be followed during search operation. These guidelines must b...

SEBI prescribes revised disclosure format under insider trading norms

CIRCULAR No. SEBI/HO/ISD/ISD/CIR/P/2021/19, Dated, February 09, 2021 

Considering amendments to the SEBI (Prohibition of Insider Trading) Regulations 2015 on the inclusi...

IRDAI advices insurers to issue digital insurance policies via Digilocker

CIRCULAR NO. IRDAI/ INT/ CIR/ DGLKR/ 030/ 02/2021, Dated 09.02.2021 

In order to promote the adoption of Digilocker in the insurance sector, the IRDAI has advised all ap...

India Digital tax – Equalisation levy tax

In 2020, the government finally widened the scope of equalisation levy, to apply at the rate of 2% on the consideration from the online sale of goods or provision of services facilitated or provide...

Almost 70K women borrowers get credit guarantee under Modi govt's lead MSME support scheme

The credit guarantee reserve trust for micro and small enterprises (CGTMSE), which works the credit guarantee conspire for micro and small enterprises (MSEs), has concurred ensure approval to 67,17...

Tax on Interest earned on PF – A Shot Hits the Bull’s Eye

There are only a few investment opportunities which operate in a complete Exempt-Exempt-Exempt Category (EEE). An Investment with EEE status that too without any threshold limit is a goldmine for t...

No sec. 195 TDS on demurrage charges paid to non-resident shipping company

Assessee’s case was selected for verification of foreign remittance made by it towards demurrage charges. Assessing Officer (AO) was of view that aforesaid payment made by assessee to non-residen...

18% GST leviable on job work of bullet proof body building done on chassis of motor vehicles

Fact of the Case 

  • The applicant was engaged in the manufacture of Bullet proof glass, bullet proof Vehicles, Lectern etc in their factory.
  • It was also under...
Pre-Pack: New Stress Resolution Tool in India

Over the past decade Indian Jurisdictions has been experimenting with new stress resolution tools. The Indian business eco-system has witnessed numerous initiatives taken by Reserve Bank of India i...

Donation, delivery or transfer by foreign source of any currency or any security, is a '‘foreign contribution’': HC

In the instant case, an agreement was reached between Kerala project LIFE MISSION and a voluntary humanitarian organization, namely, UAE Red Crescent by which latter agreed to give assistance to re...

MSME registration crosses 20-lakh mark on Modi govt's Udyam portal; almost double in three months

The Modi government's new paperless web portal to ease MSME registration– Udyam Registration, launched on July 1, 2020, has crossed the 20-lakh-registration mark. As of February 1, 2021, the entr...

No bar in filing application before AAR where notice was issued based on CASS selection

Assessee was a company incorporated in and was a tax resident of Korea. It was involved in the business of building and operating 4D movie theaters around the globe.  It has entered ...

ITC not available on Demo vehicles purchased by authorized dealer of KIA: AAR MP

Fact of the Case 

  • The applicant was authorized dealer of KIA for sales & services of vehicles in Jabalpur. It bought the vehicles from the supplier against tax ...
5% GST on construction of channels involving earthwork of drainage channels for Irrigation & Flood Control Dept. of J&K

Fact of the Case 

  • The applicant received a contract for construction of channels from Irrigation and Flood control Department, Govt. Of Jammu and Kashmir.  
Pledge of shares without undertaking to discharge liability will not make entity financial creditor under IBC

The Supreme Court in an important ruling held that pledge of shares will not make an entity financial creditor of the corporate debtor for the purpose of the Insolvency and Bankruptcy Code (IBC). &...

RBI tightens norms for Loans and advances to directors and their relatives by UCBs

CIRCULAR NO. DOR.CRG.CRS.CIR.NO.5/13.05.000/2020-21, Dated 08.02.2021 

The Reserve Bank of India (RBI) has revised directions on the subject issued to Primary (Urban) Co...

RBI allows banks to deduct amount equal to credit disbursed to ‘New MSME borrowers’ from their NDTL to calculate CRR

Circular No. DOR.No.Ret.BC.37/12.01.001/2020-21, Dated 05.02.2021 

The Reserve Bank of India (RBI) has allowed Scheduled Commercial Banks to deduct the amount equivalent...

41.75 crore bank accounts opened under Pradhan Mantri Jan Dhan Yojana

The public authority today said that an absolute number of 41.75 crore accounts have been opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) out of which 35.96 crore accounts are employable.  ...

Pay from cloud facilitating and its subordinate services neither eminence nor FTS: ITAT

Assessee-company was incorporated in the USA. It was a tax resident of the USA. Assessee earned income from cloud services including cloud hosting and other supporting and ancillary servi...

Ministry of Home Affairs issues FCRA Charter for Bank for smooth transitioning to new FCRA regime

Ministry of Home Affairs has issued FCRA Charter for Banks wherein, the Ministry has advised banks to go through all the provisions of the amended FCRA 2010 as well as amended FCRR, 2011.  

Banks are required to maintain the CRR at 3.50 per cent of their NDTL: RBI

Circular no. DOR.No. Ret.BC.35/12.01.001/2020-21, February 05, 2021 

As announced in paragraph 2 of the Statement on Developmental and Regulatory Policies of February 05, 2021, the RBI d...

MHA issues sanction for CAs; encourages them to control NGOs in agreeing with FCRA standards

MHA has advised Chartered Accountants to get themselves thoroughly familiarised with FCRA, 2010, the Foreign Contribution (Regulation) Rules, 2011 so that they can help and guide the associations a...

No different registration is needed to deliver investment exhortation to general financial backers under IA guideline

Circular No. SEBI/HO/IMD/DF1/OW/P/2021/3186. Dated 05.02.2021 

The SEBI made it clear in an interpretive letter issued to Sundaram Alternate Assets Limited under the informal guidance sc...

DGFT presents E-Tariff Rate Quota ('TRQ') framework for handling TRQ applications

DGFT has introduced e-TRQ system. With effect from 8th February, all applications will be submitted on the e-Tariff Rate Quota system.  

All TRQ licenses will be issued electronical...

Charges for upkeep of airplanes recovered by HO from branches qualify as supply of administration, available under GST

Fact of the Case 

  • The applicant company was involved in the provision of scheduled passenger transport services by air and cargo services for transport of goods by ...
Nitin Gadkari suggest approach to boost khadi, village enterprises turnover; looks for research-drove tech changes

MSME Minister Nitin Gadkari has called for research-based innovation changes by small companies focusing on provincial regions for lasting  and transformative effect at the town level. Tending...

No denial of LTC exemption even if travel is not undertaken through shortest route: Mumbai ITAT

During the search conducted at the assessee’s premises, it was found that certain employees have claimed the Leave Travel Concession (LTC) facility, wherein travel to places outside India was als...

AAR has power to decline to pronounce advance ruling even after 30 days of admitting it

Alstom Grid-UK Limited (the Applicant) had filed an application under section 245Q(1) on 05-11-2015. The said request was accepted by vide order dated 30-01-2017.  Later, on 19-09-2019, the Ap...

RBI keeps repo rate and reverse repo rate unchanged at 4% and 3.35%

Based on an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting on February 5, 2021 decided to keep the policy repo rate under the liq...

Collusive commercial arrangement between creditors and corporate debtor wouldn't constitute a financial debt, rules SC

In given case, the NCLT had excluded AAA and Spade from Committee of Creditors (CoC) formed in relation to corporate insolvency resolution process (CIRP) initiated against corporate debtor and NCLA...

Petitioner would be financial creditor in respect of amount paid by it to lender of corporate debtor

The Corporate debtor was allotted a plot of land by TSIIC for purpose of setting up a unit for manufacturing bulk drugs, formulations etc. To set up the said unit, the corporate debtor availed loan...

Objective of digitization is to convenience taxpayers, not to harass them; HC directed dept to allow Trans Credits

Fact of the Case 

  • The petitioner filed GST TRAN-1 on 27th December 2017. However, the credit of Rs. 17,07,673/ - was not transmitted in the petitioner's electronic ...
Delhi govt move tender to set up 500 EV charging focuses at 100 location

Delhi Power Minister Satyendar Jain recently declared that the government has skimmed a delicate to set up 500 EV charging focuses at 100 location.  

Delhi government has move country's ...

Startup India Seed Fund Scheme launched by Govt. to provide seed funding to start-ups

Prime Minister Shri Narendra Modi announced the launch of Rs 1,000-crore "Startup India Seed Fund" to support startups and help entrepreneurs.  The Prime Minister while speaking at, Prara...

Delayed in filing application for grant of Sec. 10(23C) exemption cannot be condoned by CIT(E): Bombay HC

Assessee filed an application in Form No. 56D for availing exemption under Section 10(23C)(vi). The assessment explained that due to a certain exceptional situation, there was a delay in the comple...

SEBI lays down directions for setting up of Limited Purpose Clearing Corporation by mutual fund houses

The SEBI has issued guidelines for setting up limited purpose clearing companies (LPCC) by asset management firms, making it compulsory for them to contribute toward the share capital of such entit...

MCA initiates process of decriminalisation of compoundable offences; proposes to introduce new concept of Small LLP

The Ministry of Corporate Affairs (MCA) has decided to initiate process of de-criminalisation of compoundable offence under LLP Act, 2008 for greater ease of doing business for law abiding LLPs. &n...

CBIC modifies Bond (B-17) execution process: Circular

CBIC has clarified that in case of B-17 bond executed by EOU/STP/EHTPs in capacity of proprietorship or partnership firm; surety cannot be given by proprietor/ partner himself.  

Such as...

GST leviable on supply of water even if supplier entered two agreements for supply of water and maintenance services

Fact of the Case 

  • The applicant was developing a group housing project and concluded agreements with prospective buyers for maintenance work, operation of services ...
2021 setting up for another new development era, says Shaktikanta Das

The six-member Monetary Policy Committee of the Reserve Bank of India, headed by Governor Shaktikanta Das, Friday chose to keep up business as usual on approach rate. The repo rate stood unchanged ...

Quarterly Returns with Monthly Payment Scheme

A. Eligibility and Optingfor the scheme

 

1.What is “Quarterly Returns with Monthly Payment(QRMP)”&...

GOVERNMENT OF ODISHA FINANCE DEPARTMENT
GOVERNMENT OF ODISHA FINANCE DEPARTMENT

 

No.                   0  7&nb...

Finance function

The finance function is most important for all business enterprises. It remains a focus of all activities. It starts with the setting up of an enterprise. It involves: raising of funds, decidi...

Core sector to see faster recovery than others

India's core sector will see a quicker recovery than others over the next one year, thanks to a precise push by the public authority for infrastructure creation, finance minister Nirmala Sitharaman...

Finance Bill’ 2021- Paradigm shift in the provisions relating to Income Tax Search and Seizure Assessments and Income Tax Settlement Commission

The Hon'ble Union Finance Minister Nirmala Sitharaman presented the Union Budget 2021 of India on the 1st of February, 2021.  Budget 2021 aims to revive an economy that plunged into the deepes...

Hire charges paid to cab drivers liable for sec. 194C TDS even if no written contract exists

Assessee was engaged in the business of providing vehicles on hire. During scrutiny proceedings Assessing Officer (AO) observed that the assessee had not incurred payment towards drivers. AO held t...

Drastic Amendments to the Power of Provisional Attachment under CGST Act, 2017 – Department Proposes, Budget Disposes

Section 83 of the CGST Act, 2017, provides the authority to the revenue department to temporarily attach the property to protect income in certain instances. The revenue department has been utilizi...

Pandal built up with iron pillars specially for functions is an immovable property, not eligible for ITC

Fact of the Case 

  • The applicant company was engaged in the business of organizing wedding & other banquet functions on a large scale, from its premises. &n...
India can make its own Aatmanirbhar secured internet by setting up root server locally for under Rs 10 cr

With more than 50% offer in next-generation IP addresses, India currently can possibly make its own secured internet by setting up a root server locally for not as much as Rs 10 crore, as indicated...

CBDT extends due date for opting of Vivad se Vishwas scheme to February 28, 2021

The Central Board of Direct Taxes (CBDT) has further extended the late date for filing declaration to opt for Vivad se Vishswas Scheme.  

The final date for filing statement is extended ...

MCA allows Start –up companies to enter scheme of merger and amalgamation

The Ministry of Corporate Affairs (MCA) has notified the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021 whereby a new sub-rule (1A) has been inserted to the Rule 25 o...

MCA revises definition of “Small Cos”; raises threshold for paid up capital from Rs. 50 lakhs to Rs. 2 cr.

The Ministry of Corporate Affairs (MCA) has informed the Companies (Specification of Definitions Details) Amendment Rules, 2021, where the threshold limit for small businesses has been increased. &...

Commission for providing services of selling products of foreign company is taxable at 18% under GST

Fact of the Case 

  • The applicant entered into an agreement with a foreign company to sell its machinery. It received commission income from the company in foreign cu...
NBFCs can start recovery in Rs 20-lakh credit default under SARFAESI Act

Finance minister Nirmala Sitharaman has proposed to bring down the limit for non-banking financial organizations (NBFCs) to start recovery procedures against loan defaulters under the Securitisatio...

Major reforms have taken on corporate law by FM Union Budget 2021-22

While the Union Budget for the FY 2021-2022 was centered around framework advancement, the Honorable Finance Minister in her Budget Speech additionally referenced a few huge changes in the zone of ...

Union Budget Speech 2021-22: FY21 shortage at 9.5% shows govt expenditure expanded, says FM

FM Nirmala Sitharaman stated while announcing Union Budget 2021. Among expensive measures, FM proposed a Rs 64,180-crore Aatmanirbhar Swastha Bharat conspire considering the pandemic.  Just mu...

Budget plan 2021 Will find a way to additionally smoothen GST structure

Union Finance Minister Nirmala Sitharaman, in her 2021 Budget declarations, said each conceivable advance would be taken to smoothen the Goods and Services Tax (GST) structure further and eliminate...

Govt targets net tax revenue of Rs 22.17 lakh cr in FY'22

The government projected a 16.67 percent development in gross tax revenue in the following financial starting April 1, at over Rs 22.17 lakh crore.  The revised estimates of gross tax revenue ...

Economic Survey 2020-21 in Parliament; V-shaped recovery for Indian Economy projected

The Economic Survey for the year 2020-21 was tabled in Parliament on January 29, 2021. Economic Survey reviews developments in Indian economy over past 12 months. 

Evidence documented in...

Govt. launched “Startup India Seed Fund Scheme” to provide funding to technology-driven start-ups

The Central Government has affirmed the 'Startup India Seed Fund Scheme (SISFS)' to give monetary help to new companies to verification of idea, model turn of events, item preliminaries, market pas...

No GST exclusion on Professional counseling administrations gave to Local Authority: Gujarat AAR

Fact of the Case 

  • The applicant provides a wide range of professional consulting services including Architecture, Engineering (MEPF), Planning, Urban Design, Landsc...
Goal plan can't be dismissed if goal candidate can show plausibility to run organization in future

If a resolution applicant can show the feasibility to run company in the future. The resolution plan cannot be rejected because the corporate debtor is not a worry.  

In the instant case...

SEBI proposes to introduce provision relating to appointment/ re-appointment of WTD under LODR regulations

The market regulator, SEBI has proposed to insert a provision relating to appointment/ re-appointment of persons who fail to get elected as whole-time director whereby it has proposed that a person...

MCA relaxes additional fees on submission of annual financial statement till February 15, 2021

CIRCULAR NO. 4/2021, Dated 28.01.2021 

In order provide extra time to stakeholders, the Ministry of Corporate Affairs has decided that no additional fees shall be levied...

PM Modi's SVANidhi credit scheme crosses more than 50% sanctioned loan application

The Modi government has empowered sanctioning of over 54.8 percent of uses got under its micro-credit crosses PM SVANidhi for nano or micro-entrepreneurs' people to scale their organizations and up...

Key challenges on application of withholding tax provisions on Cash withdrawals

In order to discourage cash transactions and move towards a cashless economy, Section 194N of the Income-tax Act 1961 (ITA) Vide Finance (No 2) Act 2019, which mandates tax withholding on cash...

No sec. 263 amendment simply on ground that AO passed a request depending on ITAT administering which was turned around by HC

Assessee filed a return of income and its case was selected for scrutiny. During assessment proceedings, out of provision made by assessee for depreciation on investment,  Assessment Officer (...

Director who was close family members of investors of corporate debtors are ineligible to be goal candidate

In the instant case, the applicants submitted a resolution plan, and the same plan was rejected by the Committee of Creditors (CoC) on grounds that applicants were ineligible to file a resolution p...

Buyer premise can't be considered as Place of Removal and therefore bulk sum is to be barred from assessable worth

Fact of the case 

  • In the current case the assessee was occupied with the assembling of Caustic Soda Lye, Liquid Chlorine and partnered products on which Central Exc...
NABARD estimate credit capability of Rs 2,21,211 crore for West Bengal for Financial year 2021 - 22

National Bank for Agriculture and Rural Development (NABARD) has assessed a credit capability of Rs 2,21,211.17 crore for West Bengal for the financial year 2021-22 under the need areas.  Of t...

Start-ups forced to cut their losses?

The Start-up India campaign introduced by the Prime Minister in January 2016 completed its 5th year in December 2020. The campaign aimed at making India one of the largest Start-up eco-systems in t...

Arrangements of sec. 50C not applicable on exchange of leasehold rights in land and building

During the assessment proceedings, the Assessing Officer (AO) noticed that Stamp Duty value of the property transferred by assessee was more than its sale consideration.  AO required assessee ...

User guide for filing new online application to Policy Relaxation Committee under FTP: DGFT

Section 2.58 of FTP accommodates unwinding of Policy and Procedures on grounds of authentic difficulty and unfavorable effect on exchange. A Policy Relaxation Committee will be fittingly establishe...

Notional interest earned on refundable security deposit can't be treated as consideration

Fact of the Case 

The appellant was engaged in the business of renting commercial property. It intended to enter contractual arrangements with potential tenants whereas ...

Another CIRP couldn’t be maintained against corporate debtor when CIRP against it was already admitted

In the instant case, the Corporate-Debtor Company was involved in real estate activities and the Petitioner-financial creditor, an individual, agreed with corporate debtor to buy residential flat d...

Matter about sections in balance record add up to affirmation of debt for limitation period alluded to a bigger seat

The corporate debtor had availed a loan from the lenders, and it failed to repay dues and banks assigned debt in favour of Asset Reconstruction (the financial creditor). 

    &...

Piyush Goyal looks for India Inc's aid to ensure new startup don't sell out 'cheap' to international investor

Days after Prime Minister Narendra Modi reported a Rs 1,000-crore seed fund for a new startup, Commerce Minister Piyush Goyal has now asked to set up Indian organizations and business-people to "de...

Other Income - Taxable even if irrecoverable

A severe debt, in simple terms, means a debt that cannot be recovered. Companies often find themselves in an uncomfortable position chasing debtors to recoup their debts. The pain can be double if ...

No TDS u/s 194H on service charges paid to companies for routing transactions of payments

Assessee was a nationalised bank. During assessment proceedings, revenue submitted that a third partly viz., National Financial Switch and Cash Tree were acting as agents and were collecting charge...

GST to be levied on common maintenance fund/deposit collected by society from its members

Fact of the Case 

  • The applicant society provided services to maintain common facilities/amenities to its members.  
  • It filed a motion for advance judgm...
No GST on supply of goods from a spot in a non- taxable area to somewhere else in non- taxable region: AAR

Fact of the Case 

  • The applicant company was engaged in the business of manufacturing goods like pumps designed for handling water, single and multi-stage pumps desi...
Once resolution has been approved in respect of corporate debtor it becomes binding on all creditors including Govt

In the instant case, pursuant to petition to initiate corporate insolvency proceedings, the appellant-Corporate debtor's resolution plan was approved by the NCLT.  

Thereafter, the marke...

High Court refuses to reopen its own decision regarding eligibility of exemption u/s 58A

In the instant case, the Registrar of Companies complained to petitioners, a non-banking financial company and its officers, under section 58A of the Companies Act, 1956/ Corresponding Section 73 o...

Govt may announce steps to ease e-commerce export & imports

The public authority in the financial plan one week from now is relied upon to report estimates, for example, broadening the facility of mass clearance for e-commerce imports and exports with the e...

Constitutional validity of Rule 86B challenged in Gujarat HC, notice issued to Govt

Rule 86B of the Central Goods and Services Tax Rules, 2017 has been introduced w.e.f. 1st January 2021 vide Notification No. 94/2020 - Central Tax which allows utilization of IT...

Power charges collected by the lessor on sub-meter readings will add up to recovery by genuine agent: Gujarat AAR

Fact of the Case 

The applicant entered into a lease agreement with Govt. to provide a building on rent along with interior infrastructure (such as fittings, lightings e...

Reading a section vis-à-vis Understanding a decision

Now and again when you experience a choice made by a legal authority clearly, subsequent to appreciating and clarifying the subtleties of misleadingly comparative arrangements, You, as an expert, g...

Royalty paid to acquire technical know-how to be used in manufacture is capital expenditure

Assessee paid royalty to Hitachi Construction Machinery Company Private Limited, Japan (HCM). Such an amount was paid for the use of technical know-how and a grant of rights for manufacturing Hitac...

JSW Steel's net benefit jumps multiple times to Rs 2,669 crore

Sponsored by a solid recovery in steel interest, JSW Steel on Friday revealed a heavenly arrangement of numbers for the three months of October-December, as the net benefit expanded almost multiple...

Expert opinion: Justice cannot be blindfolded

One of the most recognized legal symbols visible in the architecture of the Supreme Court Building in the United States of America is the female figure representing Justice, who is depicted in thre...

AO ought to allot purposes behind award of lower derivation declaration if assessee has applied for nil allowance certificate

Assessee filed an application seeking issuance of a certificate for nil deduction of tax. In this connection, assessee was asked to provide certain details which were provided by it. The applicatio...

Active Pharmaceutical Ingredients not eligible for concessional rate of GST as not directly administered in humans: AAR

Fact of the Case 

  • The applicant was engaged in manufacture of Active Pharmaceutical Ingredients known as bulk drugs namely Danuorubicin, Epirubicin, Idarubicin and ...
Proficient expenses of director other than pay is available under RCM premise: AAAR Rajasthan

Fact of the Case 

  • The appellant made bone China Crockery, Transfer Sheet Decalcomania, other Utensils Item and Moulds. It filed an application for an advance ruling...
An IP who is more than 70 yrs of age can't make an application for grant of 'Authorization for Assignment'

Regulation 7A of IP regulations requires every Insolvency Professional (IP) to have ‘Authorization for Assignment’ (AFA) before undertaking any assignment after 31-12-2019.Without AFA, an IP is...

NCLT admits ISRO-arm Antrix Corp. supplication to liquidate Devas mixed media for getting contract from Govt. through misrepresentation

In the instant case, the NCLT admitted plea filed by ISRO-arm Antrix Corporation Limited to wind up Devas multimedia under section 271 and Section 272 of Companies Act, 2013 for obtaining contract ...

About 50% respondents feel Budget 2021 will revive their business

Around 50% of the business respondents feel that the upcoming Union Budget will revive their business, while a dominant part are optimistic about financial recovery and request improvement. 

Once composite installment made in regard of 90 years rent is suitable over time of rent in equivalent extent

Assessee took a plot on lease for a term of 90 years. It had an option to pay the advanced annual rent on an annual basis or commuted one-time lease lease for the period of lease. Assessee opted fo...

CBDT assign all punishment cases to National Faceless Penalty Center besides in 3 cases

In exercise of power conferred pursuant to paragraph 3 of the Faceless Penalty Scheme, 2021, the Central Board of Direct Taxes (CBDT) has directed that all penalty cases,  

pending as we...

Banking Sector: Key GST Implications and Challenges

The introduction of GST was one of the most important tax reforms and it is imperative to understand key GST implications relevant to Banks/Non-Banking Finance Companies/Financial Institu...

Science Center can't be treated as Educational Institution, GST exemption not available

Fact of the Case 

The applicant Science Centre was established by India's renowned Scientist, Dr. Vikram Sarabhai to inculcate scientific temper among the students at yo...

IBBI confines Insolvency Professional to acknowledge new project for disregarding segment 208

In the instant case, the NCLT admitted application under section 7 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) of corporate debtor.&nbs...

SC protects new owners from liability of prior offences of erstwhile management of corporate debtors

In this landmark ruling, the Supreme Court upheld sections 3, 4, and 10 of the IBC (Amendment) Act, 2020. Section 3 of the Amendment Act amended section 7(1) of the IBC requiring a minimum threshol...

Government is working with SBI to launch an e-commerce portal for MSME

The MSME Ministry is working with the State Bank of India to launch the e-commerce portal for MSMEs that will help them market and sell their items in India and universally like stages, for example...

Right of restoration of appeal vis-à-vis Vishwas Act’

The Direct Tax Vivad Se Vishwas Act, 2020 was promulgated and notified as Act No. 3 of 2020 dated 17th March 2020 pursuant to being accorded assent from the Hon'ble President of India. &n...

Onus is on AO to create similar cases in order to demonstrate that installment made to directors were immoderate

During the scrutiny proceedings, the Assessing Officer (AO) asked the assessee-company to explain remuneration paid to its directors. The assessment furnished the details of remuneration paid to di...

CBIC issued instructions for its officers while filing Appeals/Petitions before Courts/ Tribunals

Circular No. 1077/01/2021 – CX Dated 19th January 2021

BIC has directed its officers to strictly adhere to the aspect of limitation in filing appeals/ petitions before Cour...

Both settling and execution under GST can be begun for giving fake invoices

Fact of the Case 

The petitioners were company directors and searched the company's premises of the petitioners and some documents came to be seized. The department clai...

IBBI discards SCN issued to enlisted valuer association for selecting ineligible individuals with an alert

In the instant case, a Show Cause Notice was issued to the Managing Director of ‘PVAI Valuer Professional Organization’ (PVAI-VPO) registered with the Insolvency and Bankruptcy Board of India (...

Government should boost & inspire local production, supply chains by partnering with MSMEs

The MSME sector was one of those sectors that were worst hit by covid-19 pandemic. With more than 25-30 million positions lost in the time of March-June 2020 alone according to SKOCH Group overview...

Sec. 40A(3) disallowances couldn't be attracted if identity of sellers & source of cash payment were established

A notice was issued to assess under Section 153A. In response to such a notice the assessee filed a return of income declaring nil income.  

Thereafter, a notice was issued for scru...

Transfer of Development Rights is taxable under GST

Fact of the Case 

The applicant was involved in the business of undertaking construction development projects including building residential apartments, commercial compl...

NCLAT maintains confirmation of appeal u/s 7 on inability to give ownership of granted flats

In the instant case, the Respondent was purchaser of flat in the appellant-corporate debtor's project and booking of flat was made under a Construction linked plan with stipulated period for comple...

Director not associated with everyday affairs isn't liable of misrepresentation in issue of GDRs by Company: SAT

In the issuance of GDR by the company 'M', a bank account was opened with Lisbon Bank, Banco, for purpose of receiving subscription money in respect of GDR and bank was authorized to use subscripti...

To create awareness about SME listing BSE has signs MoU with Maharashtra government

Leading stock trade BSE said it has held hands with the Maharashtra government to make mindfulness about advantages of listing among small and medium enterprises (SMEs) of the state.  

MSMEs look for extension of credit guarantee scheme with Interest subvention scheme

MSMEs, which were allotted Rs 3.7 lakh crore of the Atmanirbhar bundle a year ago by the public authority, are looking for an additional lift to the credit side of their requirement to get back in ...

A liberated director will be held obligated uniquely in regard of a demonstration by Co. which happened with his assent

updated In the instant case, the Scheme was floated by the company Assurre Agrowtech Limited, and it came to notice by the SEBI that the Scheme was nothing else but a collective investment scheme w...

Prohibition on auditor not economical proof to induce that such auditor acted dishonestly

The appellant was appointed as statutory auditor of a company who issued an auditor report for financial years 2014-15 and 2015-16. Thereafter, inspection of respondent company was ordered based on...

ITAT will undoubtedly choose claim on benefits regardless of whether assessee was absent during hearing : Bombay High Court

Assessee-challenged the assessment orders passed by the Assessing Officer (AO) by assessing income of assessee under section 144 read with section 147 of the Income-tax Act.CIT(A) excused the allur...

Advantage of Sec. 54G exception isn't accessible if land was advised as metropolitan land after its deal: High Court

Assessee had a factory at Anekal, Bangalore. It decided to shift its operations from a district in the State of Andhra Pradesh. The plot held by the assessee was sold on 26-9-1997 and the sale proc...

Papad of various shapes and sizes to be named 'un-seared FRYUMS' under heading 2106 90 99, available at 18%

Fact of the Case

  • The candidate was occupied with the matter of assembling and promoting of "Papad" of various shapes and sizes which would stay in an un-cooked/semi-cook...
Reimbursement of costs made by the HO to contact office can't be treated as a thought: AAR

Fact of the Case

  • The applicant was having no other source of income and solely dependent on the head office (HO).It received reimbursement of all the expenses incurred f...
Major things & Tips to consider while taking Home Loan

Property is a resource that encourages you to receive various finance-related advantages. Regardless of whether you are searching to buy property for investment purposes or for finding your new hom...

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