CBIC extends Filing GST Returns of Companies with EVC [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the filing of GST Returns with Electronic Verification Code till 31st October 2021.

The filing of FORM GSTR-3B and FORM GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature Certificate (DSC) has already been enabled for the period from 27.04.2021 to 31.08.2021. This has been further extended to 31st October 2021.

Rule  26 in sub-rule (1) pertains to the methods of Authentication/ Verification of e-filed documents wherein it says that all applications, including reply, if any, to the notices, returns including the details of outward and inward supplies, appeals, or any other document required to be submitted under the provisions of these rules shall be so submitted electronically with a digital signature certificate or through e-signature as specified under the provisions of the Information Technology Act, 2000 or verified by any other mode of signature or verification as notified by the Board in this behalf.

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[BREAKING]: CBIC extends GST Amnesty Scheme [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the GST Amnesty Scheme till 30th November 2021.

As per the Amnesty Scheme, the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year for the tax period March, 2021, April, 2021 and May, 2021, the period for which the late fee waived will be 15 days from the due date of furnishing return.

The Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under sub-section (1) of section 39 in case of the tax period of March, 2021 the period for which the late fee waived will be 60 days from the due date of furnishing return; in case of the tax period of April, 2021 the period for which the late fee waived will be 45 days from the due date of furnishing return and in case of the tax period of May, 2021 the period for which the late fee waived will be 30 from the due date of furnishing return.

Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to sub-section (1) of section 39 for the quarter January-March, 2021 the late fee waived will be for 60 days from the due date of furnishing return.

The Board had further notified that where the total amount of central tax payable in the said return is nil, the total amount of late fee under section 47 of the said Act shall stand waived which is in excess of two hundred and fifty rupees for the registered persons who failed to furnish the return in FORM GSTR-3B for the months / quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from the 1 June, 2021 to the 31 August, 2021.

The total amount of late fee payable under section 47 of the said Act for the tax period June, 2021 onwards or quarter ending June, 2021 onwards, as the case may be, shall stand waived which is in excess of Rs. 250/- for the registered persons whose total amount of central tax payable in the said return is nil, who fail to furnish the returns in FORM GSTR-3B by the due date.

The Government had also waived the late fee for the tax period June, 2021 onwards or the quarter ending June, 2021 which is in excess of Rs.1000 for Registered persons having an aggregate turnover of up to Rs.1.5 crores in the preceding financial year.

Lastly, the late fee has been waived for the tax period June, 2021 onwards or the quarter ending June, 2021 which is in excess of Rs.2500/- for taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year.

Therefore, the Amnesty Scheme has been notified so as to provide relief to the Corporate Industries and small businesses.

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EY hiring B.Com graduates

The Ernst and Young ( EY ) is hiring B.Com graduates for the post of Advanced Analyst. The main responsibility is to help Project Managers in developing the Client’s Transfer Pricing documentation and other Transfer Pricing related workstreams including performing industry and company analyses using various public and private information sources.

Educational Qualification

– 0 – 2 years of experience depending on qualification   

– B.Com / BBA/ BBM/ BA (Economics)/ M.Sc (Statistics)/ MA (Economics)/ MBA   

– Excel Based, Word, Analytical Skills, Good Communication   

– Any Additional Degree or Diploma related to International Taxation, Financial Instruments Market, etc…   

– You will need to-   

– Demonstrate the ability to perform financial research and analysis with some financial modeling.   

– Demonstrate strong quantitative and qualitative skills, knowledge of accounting and economics is important.   

– Demonstrate strong writing and verbal skills, ability to present research findings in a professional manner.   

– Demonstrate the ability to deliver quality analysis with tight deadlines and take full ownership of the material while learning diligently on the job.   

– Have good computing skills and the use of MS Office is a must. 

Responsibilities

Develop an understanding of basic Transfer Pricing concepts by reading tax/transfer pricing regulations and applying the concepts in everyday work.   

– To perform industry and company analyses using various public and private information sources such as Factiva, S&P, One Source, and Thompson.   

– To demonstrate a basic understanding of economic principles and effectively apply economic/finance knowledge to transfer pricing projects, for example, application of standard statistical techniques, financial ratios, and data classification.  

– To work with accounting and financial data, analyze, and perform financial adjustment calculation  

– To work with the assigned team on Client engagements and report to the Senior/ Project Manager on updates on the engagement. 

For more details Click here.

[BREAKING] CBDT again extends due dates for electronic filing of various Income Tax Forms

The Central Board of Direct Taxes ( CBDT ) has again extended the due dates for electronic filing of various Income Tax Forms under the Income Tax Act.

The Board after considering difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act, 1961 read with Income-tax Rules, 1962 (Rules) decided to further extend the due dates for electronic filing of such Forms.

The application for registration or intimation or approval under Section 10(23C), 12A, 35(1)(ii)/(iia)/(iii) or 80G of the Act in Form No. 10A required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31st March, 2022.

The application for registration or approval under Section 10(23C), 12A or 80G of the Act in Form No.10AB, for which the last date for filing falls on or before 28th February, 2022 may be filed on or before 31st March, 2022.

The Equalization Levy Statement in Form No.1 for the Financial Year 2020-21, which was required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be filed on or before 31st December, 2021.

The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37BB of the Rules, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be furnished on or before 30th November, 2021.

The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th September, 2021, required to be furnished on or before 15th October, 2021 under Rule 37BB of the Rules, may be fumished on or before 31 December, 2021.

“Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which was originally required to be uploaded on or before 15th July, 2021, and subsequently by 31st August, 2021, as per Circular No.12 of 2021 dated 25.06.2021, may be uploaded on or before 30th November, 2021,” the CBDT notified.

Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th September, 2021, which is required to be uploaded on or before 15th October, 2021, may be uploaded on or before 31 December, 2021.

Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021: per Circular No.15 of 2020 dated 22.07.2020, as extended to 30th September, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021; Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 as per Circular dated 22.07.2020, may be made on or before 31st December, 2021.

Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 under Rule 2DB of the Rules, as extended to 30th September, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021.

“Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 under Rule 2DB of the Rules, may be made on or before 31st December, 2021,” the CBDT said.

Intimation by a constituent entity, resident in India, of an international group, the parent entity of which is not resident in India, for the purposes of sub-section (1) of section 286 of the Act, in Form No.3CEAC, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.

The CBDT added, report by a parent entity or an alternate reporting entity or any other constituent entity, resident in India, for the purposes of sub-section (2) or sub-section (4) of section 286 of the Act, in Form No. 3CEAD, required to be furnished on or before 30th November, 2021 under Rule 10DB of the Rules, may be furnished on or before 31st December, 2021. Intimation on behalf of an international group for the purposes of the proviso to sub-section (4) of section 286 of the Act in Form No. 3CEAE, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.

CBDT extends date under section 3 of the Vivad se Vishwas Act

The Central Board of Direct Taxes ( CBDT ) has extended the date under section 3 of the Vivad se Vishwas Act. Under The Direct Tax Vivad se Vishwas Act 2020, the amount payable by the declarant is stated in the table under section 3 of the Vivad se Vishwas Act. 

As per the latest notification dated 25th June 2021, the last date of payment of the amount (without any additional amount) has been notified as 31st August 2021. Further, the last date for payment of the amount (with additional amount) under Vivad se Vishwas Act has been notified as 31st October 2021. 

Considering the difficulties being faced in issuing and amending Form no 3, which is a prerequisite for making payment by the declarant under Vivad se Vishwas Act, it has been decided to extend the last date of payment of the amount (without any additional amount) to 30th September, 2021. Necessary notification to this effect shall be issued shortly. 

It is, however, clarified that there is no proposal to change the last date for payment of the amount (with additional amount) under Vivad se Vishwas Act, which remains as 31st October, 2021.

GST Evasion: DGGI Gurugram arrests Chartered Accountant for ITC Fraud

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested a Chartered Accountant for ITC Fraud.

The DGGI has earlier busted a case wherein a total fake ITC of  Rs 176 crore has been fraudulently passed on by Sh. Sanjay Goel, Prop of M/s. Redamancy World, and Sh. Deepak Sharma, the de–facto controller of 8 non-existent firms. Accordingly Sh. Sanjay Goel, Prop. of M/s. Redamancy World and Sh. Deepak Sharma has been already arrested by this office, in the matter. On further investigation role of two more key persons, Sh Manish Modi and Sh. Gaurav Agarwal has also been surfaced.

Based on details revealed by further investigation this office has arrested, Sh Manish Modi, Chartered Accountant, resident of Pitam Pura, New Delhi, on charges of creation of running racket of the fake firm in order to fraudulently pass on fake Input Tax Credit (ITC), without actual supply of goods or services. It was found that Sh. Manish Modi is managing/controlling fake firms’ M/s. Nivaran Enterprises, and M/s Panchwati Enterprises through which he has fraudulently passed on fake ITC to the tune of Rs.  36 crore. Further, he has also been found in possession of incriminating evidence indicating many more such firms might be controlled/managed by him for similar purposes, further investigation for same is underway.

Name of Sh. Gaurav Agarwal, Partner of M/s. Agarwal & Company (authorized dealer of ITC) has also emerged as another key person involved in the instant racket of fraud ITC. He has fraudulently passed on fake Input Tax Credit (ITC) amounting to Rs 15 crore (including GST and Cess), thus has been arrested by this office on similar charges. 

Accordingly, Shri Manish Modi and Sh. Gaurav Agarwal was arrested on 23.08.2021 and produced before, Duty MM Delhi, who ordered judicial custody for 14 days. Fake ITC of more than Rs 36 crore and 15 crores, respectively, were fraudulently passed on by two persons.

Further investigations in the matter are in progress.

Income Tax Site Glitches: Finance Ministry summons Infosys CEO

Amidst the controversies relating to the technical glitches in the new income tax website, the Ministry of Finance has summoned Infosys CEO Salil Parekh tomorrow to explain the continuing glitches in the portal, which has been in use since June.

Union Finance Minister Nirmala Sitharaman had expressed concern over the issue earlier. Mr. Parekh and senior executive Praveen Rao were asked to work on the portal to make it “more humane and user-friendly”, the finance ministry had said.

“Ministry of Finance has summoned Sh Salil Parekh, MD&CEO @Infosys on 23/08/2021 to explain to hon’ble FM as to why even after 2.5 months since the launch of new e-filing portal, glitches in the portal have not been resolved. In fact, since 21/08/2021 the portal itself is not available,” the official Twitter handle of the income tax department tweeted today.

Infosys had designed the new portal, which was found to have several technical issues after it started service.  Users flagged the issued, often tweeting screenshots of the site and tagging the finance minister.

The trouble areas included even simple tasks like profile updation or change of passwords. Many users also said the portal was extremely slow and logging in took considerable time.

Between January 2019 to June 2021, the government has paid Rs. 164.5 crores to Infosys for developing the portal.

The Company was asked to “address all issues without further loss of time, improve their services, redress grievances on priority as it was impacting taxpayers adversely”, the ministry said. So far, Nandan Nilekani, the non-executive chairman of Infosys, has been reporting to Ms. Sitharaman on a weekly basis. Expressing regrets for the glitches, Mr. Nilekani had said they would be resolved in a matter of days.

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18% GST payable on Gota Flour, Khaman Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour, Dosa Flour: AAR

The Gujarat Authority of Advance Ruling (AAR) ruled that 18% GST payable on Gota Flour, Khaman Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour, and Dosa Flour.

The applicant, M/s Kitchen Express Overseas Ltd. is a supplier of Pulses, Flours, Namkeen, Mix Flours, and other food products including Khaman Flour, Gota Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour, and Dosa Flour, supplied in a unit container under the registered brand name of ‘KITCHEN XPRESS’. These flours are in the form of an instant mix of flour of grains, which is then used to prepare instant farsan and other similar dishes by following the directions of the recipe after adding such other ingredients as required.

The applicant has sought the advance ruling on the issue under which Chapter, Tariff Heading and HSN, the different varieties of Flours i.e. Gota Flour, Khaman Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour, and Dosa Flour manufactured and supplied by applicants will attract CGST or SGST.

The Coram of Members Sanjay Saxena and Arun Richard held that The products i.e. Gota Flour ii. Khaman Flour iii. Dalwada Flour iv. Dahiwada Flour v. Dhokla Flour vi. Idli Flour and vii. Dosa Flour is classifiable under HSN. 2106 90 (Others) attracting 18% GST (9% CGST and 9% SGST) as per Sl. No. 23 of Schedule-III to the Notification No.01/2017- Central Tax (Rate) dated June 28, 2017. “hus, ‘Food preparations not elsewhere specified or included’ falling under Chapter Heading 2106 are covered under the aforesaid Entry at Sr. No. 23 of Schedule- III of Notification No. 1/2017-Central Tax, as amended, attracting Goods and Services Tax @ 18% (CGST 9% + SGST 9%), though some of the specific products of Chapter Heading 2106 excluded from this entry are covered under different entries of Schedule-I or Schedule-II, attracting Goods and Services Tax @ 5% or 12%. None of the aforesaid 7 products of various Instant Mix / Ready Mix Flour being supplied by the applicant are the products which have been excluded from the entry at aforesaid Sr. No. 23 of Schedule – III or which have been specifically included in any other entry of other Schedule of Notification No. 1/2017-Central Tax, as amended or in any of the entries of Notification No. 2/2017-Central Tax,” the AAR said.

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CBIC extends Last date to Export under Scheme ‘Export Against Supply by Nominated Agencies’ [Read Notification]

The Central Board of Indirect Taxes and Customs (CBIC) notified extended the last date to export under Scheme ‘Export Against Supply by Nominated Agencies’.

The Board empowered under sub-section (1) of section 25 of the Customs Act, 1962, makes the amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 57/2000-Customs, dated the 8th May, 2000 which pertains to exempting gold, silver, and platinum imported under specified schemes.

In the said notification, after the third proviso, the following proviso shall be inserted, namely “Provided also that for the cases where the last date of exports falls between the 1st February, 2021 and the 30th June, 2021, the last date of exports stands extended by six months”.

In other words, the notification seeks to extend the last date of export by six months, for those cases where the last date of export falls between February 1, 2021 and June 30, 2021.

Section 25 of the Customs Act, 1962 reads “if the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after clearance) as may be specified in the notification goods of any specified description from the whole or any part of the duty of customs leviable thereon.”

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Govt. notifies IBC Amendment Act, 2021 enables Pre-packaged Insolvency Resolution for MSMEs [Read Notification]

The Central Government has notified the Insolvency and Bankruptcy Code Amendment Act, 2021 which has enabled Pre-packaged Insolvency Resolution for MSMEs.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 was introduced in Lok Sabha on July 26, 2021.  It amends the Insolvency and Bankruptcy Code, 2016.  Insolvency is a situation where individuals or companies are unable to repay their outstanding debt.  The Bill replaces the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, which was promulgated on April 4, 2021.

The Code provides a time-bound process for resolving the insolvency of corporate debtors (within 330 days) called the corporate insolvency resolution process (CIRP).  The debtor himself or its creditors may apply for initiation of CIRP in the event of a default of at least one lakh rupees.  Under CIRP, a committee of creditors is constituted to decide on the insolvency resolution.  The committee may consider a resolution plan which typically provides for the payoff of debt by merger, acquisition, or restructuring of the company.  If a resolution plan is not approved by the committee of creditors within the specified time, the company is liquidated.  During CIRP, the affairs of the company are managed by the resolution professional (RP), who is appointed to conduct CIRP.

Pre-packaged insolvency resolution:  The Bill introduces an alternate insolvency resolution process for micro, small, and medium enterprises (MSMEs), called the pre-packaged insolvency resolution process (PIRP).  Unlike CIRP, PIRP may be initiated only by debtors.  The debtor should have a base resolution plan in place.  During PIRP, the management of the company will remain with the debtor. 

Minimum default amount: Application for initiating PIRP may be filed in the event of a default of at least one lakh rupees.  The central government may increase the threshold of minimum default up to one crore rupees through a notification. 

Debtors eligible for PIRP:  PIRP may be initiated in the event of a default by a corporate debtor classified as an MSME under the MSME Development Act, 2006.  Currently, under the 2006 Act, an enterprise with an annual turnover of up to Rs 250 crore, and investment in plant and machinery or equipment up to Rs 50 crore, is classified as an MSME.  For initiating PIRP, the corporate debtor himself must apply to the National Company Law Tribunal (NCLT).  The authority must approve or reject the application for PIRP within 14 days of its receipt. 

Approval of financial creditors:  For applying for PIRP, the debtor must obtain approval of at least 66% of its financial creditors (in value of debt due to creditors) who are not related parties of the debtor.  Before seeking such approval, the debtor must provide creditors with a base resolution plan.  The debtor must also propose the name of RP along with the application for PIRP.  The proposed RP must be approved by at least 66% of the financial creditors. 

Proceedings under PIRP:  The debtor will submit the base resolution plan to the RP within two days of the commencement of the PIRP.  A committee of creditors will be constituted within seven days of the PIRP commencement date, which will consider the base resolution plan.  The committee may provide the debtor with an opportunity to revise the plan.  The RP may also invite resolution plans from other persons.  Alternative resolution plans may be invited if the base plan: (i) is not approved by the committee, or (ii) is unable to pay the debt of operational creditors (claims related to the provision of goods and services). 

A resolution plan must be approved by the committee (with at least 66% of the voting shares) within 90 days from the commencement date of PIRP.  The resolution plan approved by the committee will be examined by the NCLT.  If no resolution plan is approved by the committee, the RP may apply for the termination of PIRP.  The authority must either approve the plan or order termination of PIRP within 30 days of receipt.  Termination of PIRP will result in the liquidation of the corporate debtor. 

Moratorium:  During PIRP, the debtor will be provided with a moratorium under which certain actions against the debtor will be prohibited.  These include filing or continuation of suits, execution of court orders, or recovery of property. 

Management of debtor during PIRP:  During PIRP, the board of directors or partners of the debtor will continue to manage the affairs of the debtor.  However, the management of the debtor may be vested with the RP if there has been fraudulent conduct or gross mismanagement.

Initiation of CIRP:  At any time from the PIRP commencement date but before the approval of the resolution plan, the committee of creditors may decide (with at least 66% of the voting shares) to terminate PIRP and instead initiate CIRP.

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Delhi High Court quashes Income Tax Demand on Mobikwik as E-Filing portal was dysfunctional [Read Order]

The Delhi High Court quashed the Income Tax Demand on Mobikwik as the E-Filing portal was dysfunctional.

The petitioner, Mobikwik’s case was picked up for scrutiny, and accordingly, a notice under Section 143(2) of the Act was issued. Thereafter, during the course of the assessment proceedings, several notices were served on the petitioner under Section 142(1) of the Act whereby information was sought from the petitioner. It is the petitioner’s case that, as and when information was sought, the same was furnished.

As per the records as on previous occasions, a show cause notice was served on the petitioner, on 11.06.2021, at about 5:44 P.M. To be noted, 11.06.2021 was a Friday. The said show cause notice, issued under Section 142(1) of the Act, required the petitioner to furnish confirmations and audited financial statements of non-residential investors mentioned therein. The petitioner was also called upon to show cause as to why the foreign remittances received from the investors named therein should not be treated as unexplained income and added to the petitioner’s returned income under Section 68 of the Act. The petitioner was, however, given time only till 11:00 A.M. on 14.06.2021, which was a Monday.

Mr. Deepak Chopra, the counsel for the petitioner claimed that it was unable to respond to the show cause notice as the e-filing portal, maintained by the revenue, was not functional. It is claimed by the petitioner that, even on 15.06.2021, when the impugned assessment order was passed, the e-filing portal was dysfunctional.

The division bench of Justice Rajiv Shakdher and Justice Talwant Singh observed that the timeframe set out in the show cause notice dated 11.06.2021 was extremely narrow, and that the e-filing portal was dysfunctional, these are good enough reasons to set aside the impugned assessment order, with liberty to the AO to continue the assessment proceedings from the stage at which they were positioned when the show cause notice dated 11.06.2021 was issued. The court clarified that the revenue will be at liberty to call for further information, if thought necessary, before proceeding to frame the assessment order. In particular, the petitioner will furnish the FIRC concerning GMO, which is presently not on record.

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Delhi High Court sets aside Detention Order against CA allegedly involved in Illegal Import of Gold Jewellery for Evasion of Customs Duty [Read Order]

The Delhi High Court while quashing the detention order against Chartered Accountant ( CA ) noted that there has been an inordinate delay of 65 days by the Central Government in deciding representations filed CA alleged of illegal import of gold jewellery for evasion of customs duty.

The detenus, Amit Pal Singh and Gopal Gupta are statedly employees of a company namely, M/s. Its My Name Private Limited (IMNPL). The IMNPL is a government recognized three star export house, engaged in the business of manufacturing, import and export of gold jewellery and other allied bullion items.

The detenu Gopal Gupta, who is employed as a Chartered Accountant by IMNPL was also detained by the DRI.

The Detenu was Chartered Accountant in IMNPL and used to prepare Bill of Entry for import of gold and packing list & invoice for export, preparation/validation of documents pertaining to exhibition export and re-import of M/s Its My Name Pvt. Ltd, in addition to accountancy work and maintaining accounts for sale/purchase of gold in IMNPL.

The detenu Amit Pal Singh was entrusted with the work to hand-carry (personal carriage) the gold jewellery to UAE for the purpose of exhibition, in accordance with the permission granted and in compliance with the provisions applicable.

Detenu described the modus operandi vide his voluntary statement recorded under Section 108 Customs Act dated 25.04.2019, whereby the re- imported gold jewellery was mis-declared at the time of import, using improper documentation.

Mr. Akhil Sibal, Senior Counsel appearing on behalf of the petitioners vehemently assails the impugned orders of detention by first submitting that, the detaining Authority was predisposed and lacked independence.

Mr. Sibal argued that there was gross and unexplained delay in passing of detention orders dated January 21, 2020, viewed within the four corners of settled law that a detention orders stand vitiated, if on account of delay in passing the same, the live and proximate link and between the prejudicial activities of the detenu and the rationale of clamping a detention orders on the detenu is snapped.

This, it is canvassed, evidently reflects that there is inordinate delay of 272 days in passing of the impugned detention orders from the date of the alleged incident. Therefore, the live-link  between the alleged prejudicial activities and the impugned detention orders stood snapped in the intervening 272 days. Moreover, when the Petitioners had already been released on bail on 03.06.2019, there is no justification for clamping a detention order after 232 days from such release, especially in the absence of any cogent material that indicates their involvement in the alleged prejudicial activities since their release on bail.

The division bench of Justice Siddharth Mridul held that the right of the detenus to make a representation and have it considered by the appropriate Government, with expedition, is a constitutional right under Article 22 (5) of the Constitution of India and any unreasonable and unexplained delay in considering the representation is fatal to the continued detention of the detenu.

The court set aside the detention orders passed against the detenus. The detenus are directed to be set at liberty forthwith unless their custody is required in connection with any other case.

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GST Annual Return: CBIC amends form for GSTR-9C [Read Notification]

The Central Board of Indirect Taxes and Customs (CBIC) has notified the amendment in form for GST Annual Return ( GSTR-9C ).

The government has notified the Central Goods and Services Tax (Sixth Amendment) Rules, 2021 which seeks to amend Central Goods and Services Tax Rules, 2017.

In the said rules, in FORM GSTR-9C after the table, for the portion beginning with “Verification:” and ending with “and balance sheet etc.”, the following shall be substituted, namely “Verification of registered person: I hereby solemnly affirm and declare that the information given herein above is true and correct and nothing has been concealed there from. I am uploading this self-certified reconciliation statement in FORM GSTR-9C. I am also uploading other statements, as applicable, including financial statement, profit and loss account and balance sheet, etc.”

In the instructions, in paragraph 4, in the Table, in the second column, for the figures and word “2018-19 and 2019-20” wherever they occur, the figures and word “2018-19, 2019-20 and 2020-21” shall be substituted.

In paragraph 6, in the Table, in the second column, for the figures and word “2018-19 and 2019-20” wherever they occur, the figures and word “2018-19, 2019-20 and 2020-21” shall be substituted.

For paragraph 7, the following paragraph shall be substituted, namely, “Part V consists of the additional liability to be discharged by the taxpayer due to non-reconciliation of turnover or non-reconciliation of input tax credit. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demand which is to be settled by the taxpayer shall be declared in this Table.”

GSTR-9C is a statement of reconciliation between the Annual Returns in GSTR-9 filed for a FY, and. the figures as per the audited annual Financial Statements of the taxpayer.

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E-Commerce Operator required to collect TDS to furnish Annual Statement in GSTR-9B: CBIC [Read Notification]

The Central Board of Indirect Taxes and Customs (CBIC) notified that the E-commerce operator was required to collect TDS to furnish the annual statement in GSTR-9B.

The Board has notified the Central Goods and Services Tax (Sixth Amendment) Rules, 2021 which seeks to amend the Central Goods and Services Tax Rules, 2017.

In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), for rule 80, the following rule shall be substituted, namely “Every registered person, other than those referred to in the second proviso to section 44, an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year as specified under section 44 electronically in FORM GSTR-9 on or before the thirty-first day of December following the end of such financial year through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

Provided that a person paying tax under section 10 shall furnish the annual return in FORM GSTR-9A.

 Every electronic commerce operator required to collect tax at source under section 52 shall furnish annual statements referred to in sub-section (5) of the said section in FORM GSTR-9B.

Every registered person, other than those referred to in the second proviso to section 44, an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non- resident taxable person, whose aggregate turnover during a financial year exceeds five crore rupees, shall also furnish a self-certified reconciliation statement as specified under section 44 in FORM GSTR-9C along with the annual return referred to in sub-rule (1), on or before the thirty-first day of December following the end of such financial year, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

In FORM GSTR-9, in the instructions,  in paragraph 4,  after the word, letters and figures “or FY 2019-20”, the word, letters and figures “or FY 2020-21” shall be inserted; in the Table, in second column, for the word and figures “and 2019-20” wherever they occur, the word and figures “, 2019-20 and 2020-21” shall be substituted.

In paragraph 5, in the Table, in second column,  against serial number 6B, after the letters and figures “FY 2019-20”, the letters, figures and word “and 2020-21” shall be inserted; against serial numbers 6C and 6D, after the word, letters and figures “For FY 2019-20”, the word and figures “and 2020-21” shall be inserted; for the word and figures “and 2019-20”, the figures and word “, 2019-20 and 2020- 21” shall be substituted; against serial number 6E, for the letters and figures “FY 2019-20”, the letters, figures and word “FY 2019-20 and 2020-21” shall be substituted; against serial number 7A, 7B, 7C, 7D, 7E, 7F, 7G and 7H, in the entry, for the figures and word “2018-19 and 2019-20”, the figures and word “2018-19, 2019-20 and 2020- 21” shall be substituted;

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CMA Exams 2021: Foundation Exam to be conducted in Home-Based Mode, but Intermediate and Final Exams to be in Centre-Based Mode

The Institute of Cost Accountants of India (ICMAI) will be conducting the CMA Foundation Exam in Home-Based Mode, but Intermediate and Final Exams will Be conducted in Centre-Based Mode.

“The Institute has decided to conduct the June 2021 Foundation Examination through online mode using mobile/laptop/desktop/tab from their home only,” the ICMAI notified.

However, the mode of Intermediate and Final Exams will be online-center based.

The Foundation Examination will be conducted in M.C.Q Mode online from home. Each paper will carry 100 marks and 50 Multiple Choice Questions (Each Question will carry 2 Marks). Each session will have a total of 100 Multiple Choice Questions with 200 marks.

The ICMAI notified various Examination Centres for where the Intermediate and Final Exams namely Adipur-Kachchh (Gujarat), Agartala, Agra, Ahmedabad, Akurdi, Allahabad, Asansol, Aurangabad, Bangalore, Baroda, Berhampur (Ganjam), Bhilai, Bhilwara, Bhopal, Bewar City(Rajasthan), Bhubaneswar, Bilaspur, Bikaner (Rajasthan), Bokaro, Calicut, Chandigarh, Chennai, Coimbatore, Cuttack, Dehradun, Delhi, Dhanbad, Duliajan (Assam), Durgapur, Ernakulam, Erode, Faridabad, Ghaziabad, Guntur, Gurgaon, Guwahati, Haridwar, Hazaribagh, Howrah, Hyderabad, Indore, Jaipur, Jabalpur, Jalandhar, Jammu, Jamshedpur, Jodhpur, Kalyan, Kannur, Kanpur, Kolhapur, Kolkata, Kollam, Kota, Kottakkal (Malappuram), Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Mumbai, Mysore, Nagpur, Naihati, Nasik, Nellore, Neyveli, Noida, Palakkad, Panaji (Goa), Patiala, Patna, Pondicherry, Port Blair, Pune, Raipur, Rajahmundry, Ranchi, Rourkela, Salem, Sambalpur, Shillong, Shimla, Siliguri, Solapur, Srinagar, Surat, Thrissur, Tiruchirapalli, Tirunelveli, Tirupati, Trivandrum, Udaipur, Vapi, Vashi, Vellore, Vijayawada, Vindhyanagar, Waltair(Visakhapatnam) and Overseas Centres at Bahrain, Dubai and Muscat.

CMA Exams 2021: ICMAI re-schedules Time Table of Foundation, Intermediate, and Final Exams

The Institute of Cost Accountants of India (ICMAI) rescheduled the Time Table for CMA June 2021 Foundation, Intermediate and Final Exams.

In the case of Foundation Exams the papers Fundamentals of Economics & Management (100 Marks 50 Multiple Choice Questions), Fundamentals of Accounting (100 Marks 50 Multiple Choice Questions), Fundamentals of Laws & Ethics (100 Marks 50 Multiple Choice Questions), and Fundamentals of Business Mathematics & Statistics (100 Marks 50 Multiple Choice Questions) will be held on 5th September, 2021.

In the case of the Intermediate Exam, the Group I exams namely Financial Accounting, Laws & Ethics, Direct Taxation, and Cost Accounting will be held on 21st October, 2021, 23rd October, 2021, 25th October, 2021 and 27th October, 2021 respectively. In case of Group II exams namely Operations Management & Strategic Management, Cost & Management Accounting and Financial Management, Indirect Taxation, and Company Accounts & Audit will be held on 22nd October, 2021, 24nd October, 2021, 26th October, 2021 and 28th October, 2021 respectively from 10.00 A.M. to 1.00 P.M.

In the case of Final Exams the Group IV exams namely Corporate Laws & Compliance, Strategic Financial Management, Strategic Cost Management – Decision Making, Direct Tax Laws, and International Taxation will be conducted on 21st October, 2021, 23rd October, 2021, 25th October, 2021 and 27th October, 2021 respectively. n case of Group V exams namely Corporate Financial Reporting, Indirect Tax Laws & Practice, Cost & Management Audit, Strategic Performance Management and Business Valuation will be conducted from  22nd October, 2021, 24nd October, 2021, 26th October, 2021 and 28th October, 2021 respectively from 2.00 P.M. to 5.00 P.M.

The Institute has decided to conduct examinations through online mode using mobile / laptop or desktop /tab from their home only. The Foundation Examination will be conducted in M.C.Q Mode online from home. Each paper will carry 100 marks 50 Multiple Choice Questions (Each Question will carry 2 Marks). Each session will have a total of 100 Multiple Choice Questions with 200 marks. All Candidates/students are encouraged to appear in the Foundation examination through online mode using mobile/laptop/desktop/tab from their home. Candidates/students are requested to appear for the Foundation Examination from their homes only by logging in within the time span given. Login credentials and URL links will be given in due time. It may be noted that if any candidate/student gets disconnected while taking the examination, they may log in again to the same device to finish the rest of the examination. A candidate/student who is completing all conditions for appearing in the examination as per Regulations will only be allowed to appear for the examination. Probable date of publication of result: To be announced in due course.

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CARO 2016 applicable to CA Exams November 2021: ICAI

The Institute of Chartered Accountants of India ( ICAI ) has said that, CARO 2016 is applicable to CA Exams November 2021.

The ICAI said that, This is to bring to the attention of the students that Companies (Auditor’s Report) Order, 2016 issued by Ministry of Corporate Affairs would be applicable for the IPCC (Opted out), Intermediate, Final (Old – Opted out ) and Final (New) examinations to be held in November 2021.

The Companies (Auditor’s Report) Order, 2020 is a new format for the issue of audit reports in case of statutory audits of companies under the Companies Act, 2013. It has included additional reporting requirements after consultations with the National Financial Reporting Authority (NFRA). NFRA is an independent regulatory body for regulating the audit and accounting profession in India. The aim is to enhance the overall quality of reporting by the company auditors.

CARO 2020 would necessitate enhanced due diligence and disclosures on the part of auditors of eligible companies and has been designed to bring in greater transparency in the financial state of affairs of such companies.

The salient features of the CARO, 2020 are as under:

  1. The CARO, 2020 includes certain additional clauses, as compared to CARO, 2016, and the existing clauses of CARO, 2016 have been re-drafted to elicit detailed comments from the auditors.
  2. A specific format has been provided for reporting the details of such immovable properties whose title deeds are not held in the name of the company but are disclosed in the financial statements.
  3. Disclosure of details of proceedings against the company for holding Benami Property and whether the company has disclosed the details in its financial statements.
  4. Discrepancies of 10% or more in the aggregate of each class of inventory noticed during physical verification of inventory would have to be reported.
  5. The auditor is to provide specific details as to whether during any point of time of the year, the Company has been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, from banks or financial institutions on the basis of security of current assets and whether the quarterly returns/statements filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company.
  6. In clause 3(iii) of CARO, 2020, the auditor is to report in detail on the investments made by the company in, any guarantee or security provided or any loans or advances in the nature of loans granted, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties during the year, that they are not prejudicial to the interests of the company.
  7. A specific format has been prescribed to report the period and the amount of default by the company in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
  8. The auditor is required to render his opinion on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, the auditor’s knowledge of the Board of Directors and management plans, that no material uncertainty exists as on the date of the Audit Report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.
  9. The number of cash losses incurred in the financial year and in the immediately preceding financial year has to be reported.
  10. The auditor has to take into consideration the issues, objections or concerns raised by the outgoing auditors before forming his opinion.
  11. The auditor is required to report about the company if it is a declared wilful defaulter by any bank/ financial institution/other lenders.
  12. The auditor would have to report as to whether term loans were applied for the purpose for which the loans were obtained; if not, the amount of loan so diverted and the purpose for which it is used would have to be reported.
  13. The auditor is required to report as to whether any fraud by the company or any fraud on the Company has been noticed or reported during the year; If yes, nature and the amount involved is to be indicated.
  14. The auditor is to consider whistle-blower complaints received during the year by the Company in his audit.
  15. The auditor is to report if the company has conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the RBI Act.

The auditor is now required to indicate the details of the subsidiary companies and the sub-clauses number containing qualifications/adverse remarks by the respective auditors in the CARO reports of the companies included in the consolidated financial statements.

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MCA inserts New Rule for Allotment of New Name to Existing Company: Notifies New Form [Read Notification]

The Ministry of Corporate Affairs ( MCA ) has notified the Companies (Incorporation) Fifth Amendment Rules, 2021 to insert a new rule 33A relating to the allotment of a new name to the existing Company under section 16(3) of the Companies Act, 2013.

As per the new rule, in case a company fails to change its name or new name, in accordance with the direction issued under sub-section (1) of section 16 of the Act within a period of three months from the date of issue of such direction, the letters “ORDNC” (which is an abbreviation of the words “Order of Regional Director Not Complied”), the year of passing of the direction, the serial number and the existing Corporate Identity Number (CIN) of the company shall become the new name of the company without any further act or deed by the company, and the Registrar shall accordingly make entry of the new name in the register of companies and issue a fresh certificate of incorporation in Form No.INC-11C.

However, the above shall not be applicable in case e-form INC-24 filed by the company is pending for disposal at the expiry of three months from the date of issue of direction by Regional Director unless the said e-form is subsequently rejected.

“A company whose name has been changed under sub-rule (1) shall at once make necessary compliance with the provisions of section 12 of the Act and the statement, “Order of Regional Director Not Complied (under section 16 of the Companies Act, 2013)” shall be mentioned in brackets below the name of the company, wherever its name is printed, affixed or engraved: Provided that no such statement shall be required to be mentioned in case the company subsequently changes its name in accordance with the provisions of section 13 of the Act.”,” the notification said. The notification further introduced a new Form INC-11C for the certificate of Incorporation pursuant to change of name due to the Order of Regional Director not being complied.

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ICAI again extends Validity of Peer Review Certificate in the wake of COVID -19

The Institute of Chartered Accountants of India ( ICAI ) has extended the validity of the Peer Review Certificate in the wake of COVID -19 spurt across the country till August 31st.

In view of the fact that the pandemic is still continuing and several parts of the country are under partial lockdown and considering the requests received in this regard, the Board has decided to grant relief to the practice units by extending the expiry date of the peer review certificate having original expiry date falling anytime from 1st July 2021 to 31st July 2021 till 31st August 2021 i.e. cases where no extension benefit has been availed as per any of the earlier announcements of the Board. However, in the case where the reviewer has already submitted the report in respect of a Practice Unit falling in the aforesaid category, which is considered by the Board and found complete up to 31st August, 2021 the peer review certificate shall be issued in continuation of the previous certificate.

CBDT again extends Electronic Filing of Income Tax Forms 15CA / 15CB

The Central Board of Direct Taxes ( CBDT ) has again extended the electronic filing of Income Tax Forms 15CA/15CB till August 15th, 2021.

As per the Income-tax Act, 1961, there is a requirement to furnish Form 15CA/15CB electronically. Presently, taxpayers upload the Form 15CA, along with the Chartered Accountant Certificate in Form 15CB, wherever applicable, on the e-filing portal, before submitting the copy to the authorized dealer for any foreign remittance.

In view of the difficulties reported by taxpayers in electronic filing of Income Tax Forms 15CA/15CB on the portal www.incometax.gov.in, it had earlier been decided by CBDT that taxpayers could submit Forms 15CA/15CB in manual format to the authorised dealer till 15th July, 2021.

It has now been decided to extend the aforesaid date to 15th August, 2021. In view thereof, taxpayers can now submit the said Forms in manual format to the authorized dealers till 15th August, 2021. Authorized dealers are advised to accept such Forms till 15th August, 2021 for the purpose of foreign remittances. A facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generation of the Document Identification Number.

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