The Supreme Court today dismissed the Special Leave Petition filed by a Chartered Accountant seeking a direction to restrict the use of the acronym ICAI by the Cost Accountant Institutes.
The petitioner, V.Venkata Sivakumar on an earlier occasion, filed petitions against the Institute of Cost Accountants of India and Institute of Chartered Accountants of India praying for issuance of a writ of mandamus, directing the Institute of Cost Accountants of India, Kolkata, to comply with Section 2(2) of the Cost and Works Accounts Act, 1959, as amended and desist from encroaching into the domains earmarked for the Chartered Accountants. The petition further sought for a direction to the Union of India, Ministry of Corporate Affairs to ensure that the Acronym ICAOI be used instead of the Acronym ICAI which belongs to the Chartered Accountant as per the decisions of the Hon’ble Supreme Court in Sathyam Infoway Vs. Sifynet Solutions Private Limited.
Last year, the division bench of the Madras High Court headed by Chief Justice A.P. Sahi rejected the first plank and held that no case is made out for the exercise of discretionary jurisdiction by this Court on account of the use of the acronym ICAI.
The petitioner, now approached the Apex Court stating that the High Court disregarded the ratio settled dismissed the petition in limini- at the admission stage itself.
“Because the Hon`ble High Court ignored the fact that the Petitioner being a rightful citizen of the Country, gold medalist in a graduate course, qualified auditor, being a member of the 3rd Respondent institution for more than 30 years and being a teacher teaching the curriculum of the CA studies and successfully coached thousands of students who have become CAs, further the Petitioner is one of the senior-most members of the 3rd Respondent Institution holding membership for more than 3 decades and it is his moral responsibility to preserve and protect the 3rd Respondent Institution,” the petition reads.
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The Supreme Court held that the trustees in Mutual Fund Scheme must take the consent of Unitholders before deciding to wind up the scheme or prematurely redeem the units.
The appellant, Franklin Templeton Trustee Services Private Limited filed the appeal concerning the winding up of its six mutual fund schemes.
Regulation 18 mandates that trustees seek the consent of the unitholders while Regulation 39 allows a close-ended mutual fund scheme to be wound up if the trustees give that opinion. The latter regulation is silent about getting prior consent from the unitholders.
The judgment harmoniously interprets Regulation 18(15)(c) with Regulation 39 (2) (a) of the Securities and Exchange Board of India (Mutual Funds) Regulations of 1996.
The two-judge bench of Justice Khanna and Justice S. Abdul Nazeer harmoniously interprets Regulation 18(15)(c) with Regulation 39 (2) (a) of the Securities and Exchange Board of India (Mutual Funds) Regulations of 1996.
The Supreme Court while opting for a middle path between the two Regulations said that the Principle of Harmonious Construction should be applied in the context of the Regulations in question. This would mean that the opinion of the trustees would stand, but the consent of the unitholders is a prerequisite for winding up.
“The trustees are, therefore, commanded to inform and be transparent. Unitholders are not placid onlookers, imprudent and helpless when the trustees decide to wind up the scheme in which they have invested. The stature and rights of the unitholders can co-exist with the expertise of the trustees and should not be diluted because the trustees owe a fiduciary duty to them. Thus, the contention that the trustees being specialists and experts in the field, their decision should be treated as binding and fait accompli has to be rejected,” the Apex Court observed.
The court reasoned that situations could arise when the trustees may err in their opinion, in which event the unitholders may correct them. Money and investment of the unitholders being at stake, a wrong decision would obviously have an inimical impact on the unitholders themselves. We would brace the argument that a good and intelligible decision of winding up would invariably be accepted by the unitholders.
The Bench observed, “the argument that the unitholders are lay persons and not well-versed with the market conditions is to be rejected. Investments by the unitholders constitute the corpus of the scheme. To deny the unitholders a say, when Regulation 18(15)(c) requires their consent, debilitates their role and right to participate.”
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The Karnataka High Court while dismissing the taxpayer’s plea held that the benefit of Master Circular Circular mandating Pre-Show Cause Notice for Service Tax demand beyond Rs.50 Lakh cannot be one-sided.
The appellant, M/s Novel Security Services was a proprietary concern registered under the provisions of the Central Goods and Services Tax Act, 2017 (henceforth referred to as the ‘CGST Act 2017’) and was providing personnel to man security concerns at various Government and non-Government entities and was, therefore, exigible to service tax. It is stated that on information received by the office of the respondent, an investigation was initiated against the appellant for alleged failure to remit the appropriate service tax to the Government.
Following the investigation, several notices were issued to the appellant calling upon the appellant to produce documents for verification. The respondent thereafter issued a notice dated 22.04.2021 under Section 73 of the Finance Act, 1994 read with Section 174 of the CGST Act 2017. This show cause notice was challenged before the learned Single Judge on the ground that it was in violation of the Master Circular dated 10.03.2017 and the Circular dated 19.11.2020 which provided “pre-show cause notice consultation with the assessee, prior to issuance of show cause notice in case of demands of duty above Rs.50 Lakhs (except for preventive/offence related to show cause notices), is mandatory and shall be done by the show cause notice issuing authority”.
Mr. Shashikiran Sethi counsel for the appellant Senior Counsel appearing for the appellant submitted that issuance of a pre-show cause notice was mandatory in terms of the Circular dated March 10, 2017, as well as the Circular issued by the Central Board of Indirect Taxes and Customs dated November 19, 2020. Therefore, the show-cause notice ought to have been quashed by the learned Single Judge.
On the other hand, the respondent contended that the impugned order was passed based on a submission by the learned counsel for the appellant that the show cause notice be kept in abeyance and that the appellant would appear before the show cause notice issuing authority. He, therefore, contended that the present appeal was misconceived. The counsel for the respondent has filed his statement of objections.
The division bench of Justice Satish Chandra Sharma and Justice Natraj Rangaswamy noted that every attempt made by the respondent to secure information/document from the appeal was stonewalled by the appellant. Though the show cause notice issued by the respondent which was impugned before the learned Single Judge was not preventive in nature but yet an offence report was registered against the appellant. “If the appellant desired to seek the benefit of the Master Circular dated 10.03.2017, he is expected to comply with the summons issued by the respondent seeking explanation/documents that were summoned by the respondent. The benefit of the Master Circular cannot be one-way traffic and the appellant cannot milch the Master Circular to his advantage,” the Court said while dismissing the taxpayer’s plea.
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The Madras High Court stayed the Suspension Order against the State Tax Officer for suppressing vital facts and misleading the court.
The petitioner has challenged direction given by the Single Judge on wherein, during the hearing of the Writ Petitions, a doubt was raised, for which, the Government Counsel, who appeared before the Court, was not ready with the facts. Therefore, the Single Judge had directly questioned and interacted with the State Tax Officer, the appellant, who was present before the Court.
Since the said Officer could not give the correct answer to the question posed by the learned Single Judge as to whether the general tax exemption for the sale of Intra-Ocular lenses within the State, was granted or not, the Single Judge felt that the Officer was giving evasive answers and suppressing the vital facts regarding the collection of sales tax for Intra-Ocular lenses. Hence, the Writ Court had issued a direction to the Commissioner of Commercial Taxes to suspend the said Officer with immediate effect by initiating disciplinary proceedings under the Tamil Nadu Civil Services (Discipline and Appeal) Rules, 1955.
The division bench has directed the authorities to initiate disciplinary proceedings against the appellant therein for the misconduct alleged. The other directions of the learned Single Judge regarding suspension and how the disciplinary proceedings should be conducted were set aside therein. The division bench of Justice Pushpa Sathyanarayan and Justice Krishnan Ramaswamy while relying on the Supreme Court’s decision in the case of State of U.P. vs. Dr. Manoj Kumar Sharma stayed the order of Single Judge, and held that judges must know their limits. They must have modesty and humility, and not behave like emperors. The legislature, the executive, and the judiciary all have their own broad spheres of operation. It is not proper for any of these three organs of the State to encroach upon the domain of another, otherwise, the delicate balance in the Constitution will be upset, and there will be a reaction.
Subscribe Taxscan Premium to view the JudgmentThe Institute of Chartered Accountants of India (ICAI) notified the Information Systems Audit (ISA) Course Assessment Test to be held on 31st July 2021.
“Members are hereby informed that the next Information Systems Audit (ISA) Course Assessment Test (Old as well as New Syllabus) which is open to the members of the Institute will be held on 31st July 2021 (Saturday) from 9.00 AM to 1.00 PM (IST),” the ICAI announced.
The Test will be held at the 107 cities provided that a sufficient number of candidates offer themselves to appear therefrom. The Council reserves the right to withdraw any center at any stage without assigning any reason.
The Test is open only to the Members of the Institute who are already registered with the Institute for the ISA course and fulfill the eligibility criteria laid down. The fee payable for the above Assessment Test is Rs.2000/-.
“An application for admission to the Information Systems Audit (ISA) Course – Assessment Test is required to apply online at isaat.icaiexam.icai.org from 19th June, 2021 to 2nd July, 2021 and remit the examination fee of ₹ 2000/- online by using VISA or MASTER or MAESTRO Credit / Debit Card / Rupay Card / Net Banking / Bhim UPI,” the ICAI announcement read.
Read the Notification here.
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The Central Board of Direct Taxes ( CBDT ) has again extended the electronic filing of Income Tax Forms 15CA/15CB.
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 authorised 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 authorized dealer till 30th June, 2021.
It has now been decided to extend the aforesaid date to 15th July, 2021. In view thereof, taxpayers can now submit the said Forms in manual format to the authorized dealers till 15th July, 2021. Authorized dealers are advised to accept such Forms till 15th July, 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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The Institute of Chartered Accountants of India ( ICAI ) has informed that, In view of ongoing strict lockdown and accompanying restrictions in Nepal, it has been decided that CA Exams July 2021 for the Final [Old as well as New Scheme], Intermediate (IPC) and Intermediate scheduled from July 5 i.e tomorrow to 20. July 2021 at all examination centres in Kathmandu (Nepal) only stands cancelled.
The ICAI also said that, It may be noted that for the students appearing from the examination centres of Kathmandu, July 2021 examinations will not be treated as an attempt. The students appearing for the above examinations from any of the examination centres in Kathmandu, Nepal need not individually apply for the opt-out to appear in November 2021 exams as the said opt-out is automatic as per Institute’s Announcement dated July 2021 to which the students may refer.
However, it is clarified that the schedule of examinations notified vide Announcement dated 5th June 2021 in respect of all other cities/ centres shall remain unchanged.
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The Institute of Chartered Accountants of India ( ICAI ) in the light of the recent Supreme Court decision announced that the Candidates can opt-out of CA exams if they or their family members suffer from COVID-19 without producing RT-PCR.
The ICAI announced that an Examinee shall be entitled to exercise the option of opting out if he/she personally, or any of his/her family member (residing at the same premises), has suffered COVID-19 in the recent past l.e. on or after 15th April 2021 and the fact is so certified by a Registered Medical Practitioner, as a result of which he/she is unable to appear in the ensuing examination or, for that matter, is disabled in preparing for the examination. In such cases July 2021 Examination will not be considered as an attempt.
“Such examinee will be permitted to appear in the subsequent next examination, to be held in November 2021 for the old as well as new syllabus, subject to conducive situation / environment prevailing at the relevant time. Such examinees need not produce an RTPCR report if a medical certificate issued by the registered Medical Practitioner for himself/ herself or his/her family member is presented along with the request for opting out,” the announcement read.
As regards examinees affected due to lock down during the relevant period of examination, such examinees are entitled to opt-out and July 2021 examinations will not be treated as an attempt. Such examinees would be permitted to appear in the subsequent next examination, to be held in November 2021 for the old as well as new syllabus, subject to conducive situation / environment prevailing at the relevant time.
The ICAI further announced that if any examinee while appearing in July 2021 examination and in the midst of that suffers from Covid-19 ailment, as a result of which, is unable to appear in the remaining subjects, would be entitled to opt-out and July 2021 examinations will not be treated as an attempt. He/she can appear in the subsequent next examination, to be held in November 2021 for the old as well as new syllabus, subject to conducive situation / environment prevailing at the relevant time.
The Institute has clarified that if the examinee has opted out in any paper during the entire cycle of the examination, then he/ she will not be permitted to appear in any of the remaining papers.
If the examinee has appeared for the first group and then opts out before the conclusion of the
examination of the last paper of the second group, the result of the first group will be declared
and opt out option will apply only to the second group.
“In case if the Chartered Accountant Examination cannot be held at any of the examination centre / city due to restrictions imposed by the Central Government/ State Government / Local Authority, examination centre being in containment zone, last-minute change of examination centre in any city etc., such examinees are entitled to opt-out and July 2021 examinations will not be treated as an attempt. He/she can appear in the subsequent next examination, to be held in November 2021 for the old as well as new syllabus, subject to conducive environment prevailing at the relevant time,” the ICAI announced.
The Central Board of Indirect Taxes and Customs ( CBIC ) has today issued a circular clarifying that GST is applicable on annuities (deferred payments) paid for the construction of road where a certain portion of the consideration is received upfront while the remaining payment is made through deferred payment (annuity) spread over years.
The circular is issued as per the outcome of the GST Council meeting held on 28th May 2021.
As per the relevant notification exempting GST services, heading 9967 exempts GST on service by way of access to a road or a bridge on payment of annuity.
Heading 9967 covers “supporting services in transport” under which code 996742 covers “operation services of National Highways, State Highways, Expressways, Roads & streets; bridges and tunnel operation services”. Entry 23 of said notification exempts “service by way of access to a road or a bridge on payment of toll”.
The Board said that this heading inter alia covers general construction services of highways, streets, roads railways, airfield runways, bridges, and tunnels. “Consideration for construction of road service may be paid partially upfront and partially in deferred annual payments (and may be called annuities). Said entry 23A does not apply to services falling under heading 9954 (it specifically covers heading 9967 only). Therefore, the plain reading of entry 23A makes it clear that it does not cover the construction of road services (falling under heading 9954), even if deferred payment is made by way of installments (annuities). 3. Accordingly, as recommended by the GST Council, it is hereby clarified that Entry 23A of notification No. 12/2017-CT(R) does not exempt GST on the annuity (deferred payments) paid for the construction of roads,” it added.
Subscribe Taxscan Premium to view the JudgmentThe Central Board of Indirect Taxes and Customs ( CBIC ) has clarified that no GST is applicable on the serving of food in schools, pre-schools including Anganwadis under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations.
This is in the light of receiving various representations from the stakeholders where the question on the taxability of such activities invoked amidst contradictory views taken by different AAR Rulings. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021.
The circular issued by the Board on Thursday pointed out that Entry 66 clause (b)(ii) of notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, exempts services provided to an educational institution, by way of catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory.
“This entry applies to pre-school and schools,” it added.
Accordingly, as per said entry 66, any catering service provided to an educational institution is exempt from GST. The entry further mentions that such exempt service includes mid-day meal service as specified in the entry. The scope of this entry is thus wide enough to cover any serving of any food to a school, including pre-school. Further, an Anganwadi interalia provides pre-school nonformal education. Hence, Anganwadi is covered by the definition of the educational institution (as pre-school). “Accordingly, as per the recommendation of the GST Council, it is clarified that services provided to an educational institution by way of serving of food ( catering including mid-day meals) are exempt from levy of GST irrespective of its funding from government grants or corporate donations [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include Anganwadi. Hence, serving of food to Anganwadi shall also be covered by the said exemption, whether sponsored by the government or through a donation from corporates,” the Board clarified.
Subscribe Taxscan Premium to view the JudgmentThe Finance Minister Nirmala Sitharaman has invited Written Representations regarding Glitches on New Income Tax Portal.
The Finance Minister Tweeted that, Written representations are invited regarding the issues/glitches on the new Income Tax Portal on the email address fmo@nic.in latest by 7 PM on Friday, June 18, 2021. (Prior to the meeting between senior Finance Ministry officials & Infosys on June 22).
The Income Tax Department had launched its new e-filing portal on June 7, replete with new features which are expected to make the ITR process much easier and faster. However, several individuals have faced difficulties in the last few days while using the new income tax return e-filing portal.
There are various glitches faced by the taxpayers namely DSC not getting registered or updated; New Incorporated companies or Firms are not able to register themselves on ITD Portal; Forget password option not working; ITR in PDF can’t be downloaded; IT acknowledgements in PDF can’t be downloaded; DIN Number not getting auto populated in new ITD website; Challan Numbers not getting validated; no tab for VSV tab; Unable to file TDS Returns; Unable to file 15CA/15CB; E proceedings tab not workings; Grievances registered on ITD website are deleted without addressing; Old demands outstanding not reflected 14. Old Grievances registered not reflected; Unable to file Income Tax Returns for FY 2021 16. Accounts get locked, if we try to login and are not able to login due to non-operatibility of site; Unable to raise refund reissue request; Unable to view Form 26AS; PAN Number is not shown as valid 20. Mismatch in PAN Data is shown when technically there is no mismatch; JSON Utility not available 22 while filing Verification in ITR if we select ‘Self’ in capacity then Name disappeared n Shown in validation errors. 23. UDIN is also not able to update for last month’s audit and other certification; Rectification of return options not available; Return processed in March 2021 now shows under processing in view details.
Moreover, additional glitches on new ITD portal are in respect of Bank validation will take around 10-12 days; HUF has no option to register DSC; ITR filing not enabled for assessee having only income from other sources like Bank Interest and FDR interest; Registering as CA for filing TAR or other reports, no option to register DSC; For AOP PAN – no sub page/option for Registering DSC or updating DSC and Corporate – Directors and Shareholders information properly captured.
The Institute of Company Secretaries of India (ICSI ) has announced that students can go for an opt-out facility from the CS Exam June 2021 session by carrying forward the credit of exam fee to the December 2021 session of exams in view of the Covid-19 pandemic.
The opt-out facility shall be available to students of Foundation/ Executive/ Professional Programs.
As per the Official notice if a student is submitting opt-out request from 00.01 hours on Sunday, August 1 till 23.59 hours on Friday, August 20, he/she is required to submit his or her request at the Google form link (https://forms.gle/ZGR4KDQKg2Z9Nc3r9). In such cases, students can avail opt-out options without citing any reason. Submitting Covid positive report is not mandatory here.
The ICSI announced that if a student is submitting an opt-out request from 00.01 hours on Saturday, August 21 till 23.59 hours on Saturday, September 4 he/she is required to submit his/her request at Google form link (https://forms.gle/cRYDGUbgRAvoeUJ46). In such cases, students shall be essentially required to submit a Covid-19 positive report evidencing that they themselves or their immediate relatives were infected during the period from July 22 to August 20. Application, if any, submitted by the student without attaching COVID-19 positive report as mentioned above shall be summarily rejected without notice. Once the opt-out request is sent, it will be treated as final and the student’s enrollment in June 2021 session exam will be canceled and the candidature will be forwarded to December 2021. The syllabus will remain the same.
The Karnataka State Chartered Accountants Association (KSCAA) writes to the government requesting the inclusion of CA to the Priority Group to enable early vaccination.
The KSCAA wrote that as there is a shortage in the supply of Vaccines in the State, KSCAA on behalf of all the CA’s in the state humbly implore upon your good selves to do the needful in prioritising the vaccination of CA’s, their staff and families of age group 18 to 44 by classifying the CA’s as Priority Group.
“This measure of your good selves should help to ensure that our CA members, their staff and their families can quickly get their vaccinations done especially at locations outside Bengaluru where there are no private hospitals providing this service. Aside from expediency and priority in vaccination, the classification of our CA members as Priority Group would also help our CA members and their staff to undertake performance of their professional functions and assignments smoothly, efficiently and most effectively as Lock down restrictions would relatively be relaxed to them,” the letter addressing the Dr. K Sudhakar, Minister, Health and Family Welfare Department said.
To reiterate, from now onwards until January 2022 there are a myriad of statutory and regulatory compliances that are due to be met by taxpayers which could not be just possible and even envisaged without the active involvement and rendition of services by CA members and their staff. Therefore, it becomes all the more important to categorise our CA members as PRIORITY GROUP to perform their Functions in a smooth and unhindered way having regard and subject to adherence to limited restrictions or protocol, if any Government places.
“We are Optimistic that, your good selves would definitely make an ‘all out’ effort to ensure that necessary steps are taken in this regard to provide much needed relief by classifying CA‘s as PRIORITY GROUP and therebyhelp expediting vaccination of our CA members, their staff and their families and also help ensure that our CA members and their staff perform their functions in a very smooth, efficient and most effective manner,” the KSCAA on behalf of all the CAs wrote.
While quashing the ex-parte order, the Patna High Court held that Input Tax Credit can not be denied for reasons of delay in filing of the respective returns.
The petitioner, Pramod Khad Bhandar assailed the assailed the ex parte order passed under section 73 of the state act and also for quashing of the summary of order issued in form GST DRC-07 issued by the respondent under section 73(9) of the State Act whereby and where under the input tax credit claimed by the petitioner qua the taxable period of June 2018 has been rejected and denied for reasons of delay in filing of the respective returns in terms of section 16 (4) of both the acts.
According to the Revenue, petitioner has an equally alternative efficacious remedy of filing an appeal under the provisions of the Bihar Goods and Services Tax Act, 2017.
The division bench headed by Chief Justice, Sanjay Karol and Justice S. Kumar quashed the order on the grounds of violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case and the order passed ex parte in nature, does not assign any sufficient reasons even decipherable from the record, and how the officer could determine the amount due and payable by the record assessee. The court quashed the impugned order passed by the Assistant Commissioner of State Taxes under Section 73 of the State Act and a summary of the order issued in form GST DRC-07.
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The Institute of Chartered Accountants of India ( ICAI ) is to reopen Online Window for Change of Examination City for CA Exam July 2021.
An announcement issued by ICAI said that, Considering the prevailing COVID-19 situation and in the interest to mitigate the anxiety and hardships of the students concerned, it has been decided to reopen the online change in examination city for Chartered Accountants Examinations, May / July 2021 from 9th June 2021 (10 AM) to 11th June 2021. Therefore, candidates of Chartered Accountants Foundation, Intermediate (IPC), Intermediate, Final (Old & New Scheme), and Post Qualification Course Examinations i.e. Insurance and Risk Management (IRM) and International Taxation – Assessment Test (INTT – AT) seeking a change of examination city can avail this online facility available at http://icaiexam.icai.org w.e.f. 9th June 2021 (10 AM onwards) to 11th June 2021.
The Central Board of Indirect Taxes and Customs ( CBIC ) has notified relaxation in Interest Rates on delayed filing of GSTR 3B Return. The GST Council, chaired by the Union Finance Minister and comprising state counterparts, on May 28 had decided to extend certain compliance relaxations on account of COVID-19 and one of the significant proposals was relaxation in Interest Rates on delayed filing of GSTR-3B.
The Board has notified that the relaxation for the Taxpayers having an aggregate turnover of more than Rs.5 crores in the preceding financial year Relaxation in the interest rate based on Turnover to those who have to file GSTR 3B and also to Composition dealers. Relaxation is for the Tax Period ending for March, 2021, April, 2021 and May, 2021.
The CBDT has notified that 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 for the tax period in respect of March, 2021, the the interest rate will be Nil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafter.
In case of the tax period April, 2021, the interest rate will be Nil for the first 15 days from the due date, 9 per cent for the next 30 days, and 18 per cent thereafter.
Further, in the case of May, 2021 the interest rate will be Nil for the first 15 days from the due date, 9 per cent for the next 15 days, and 18 per cent thereafter.
The Board has notified that 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 proviso to sub-section (1) of section 39 for March, 2021 the interest rate will be Nil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafter.
In case of the tax period of April, 2021, the rate of interest will be nil for the first 15 days from the due date, 9 per cent for the next 30 days, and 18 per cent thereafter.
Further, in the case of May, 2021 the interest rate will be Nil for the first 15 days from the due date, 9 percent for the next 15 days, and 18 percent thereafter. Lastly, the Board has notified the taxpayers who are liable to furnish the return as specified under sub-section (2) of section 39 for the Quarter ending March, 2021 the interest rates will be Nil for the first 15 days from the due date, 9 percent for the next 45 days, and 18 percent thereafter.
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The Government has notified the extension of the exemption from IGST on imports of specified COVID19 relief material donated from abroad from 30th June 2021 till the 31st day of August 2021.
The Central Government, under exceptional circumstances prevailing due to the COVID-19 pandemic, on being satisfied that it is necessary in the public interest so to do, made the amendment in the ad hoc exemption order of the Government of India, in the Ministry of Finance (Department of Revenue), No. 4/2021-Customs, dated the 3rd May, 2021.
As per the exemption order No. 4/2021-Customs, dated the 3rd May, 2021 was in respect of Ad hoc Exemption from IGST on imports of specified COVID19 relief material donated from abroad.
The notification said, “in the said order, in paragraph 2, for the figures, letters and words “30th day of June, 2021”, the figures, letters and words “31st day of August 2021” shall be substituted.”
The Government has laid down various conditions to claim the exemption on specified COVID19 relief material donated from abroad.
Firstly, the COVID19 relief goods are imported free of cost for the purpose of Covid relief by a State Government or, any entity, relief agency or statutory body, authorised in this regard by any State Government. Thus, it is clear that the ad hoc exemption order applies only where the importer gets goods free of cost for free distribution. Other instances are not covered by the exemption order.
Secondly, a number of references have been received informing that many entities, including Corporates, intend to source COVID relief material from abroad and distribute it freely, availing the IGST exemption under the said Order. Thirdly, It may be mentioned that in case any corporate buys it and even gives it for free, such exemption will not be available. To reiterate, it is available when said goods are imported free of cost for the purpose of Covid relief by a State Government or, any entity, relief agency or statutory body, authorised in this regard by any State Government.
Subscribe Taxscan Premium to view the JudgmentThe 43rd GST Council has recommended the Self-Certification of GSTR-9C instead of Certification by Chartered Accountant ( CA ).
The Finance Minister Nirmala Sitharaman Said that, Annual return filing will be simplified and the GST Council has recommended amending the CGST Act to allow for self-certification of reconciliation statements, instead of getting it certified by Chartered Accountants.
Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021 to be notified. This would ease the compliance requirement in furnishing reconciliation statement in FORM GSTR-9C, as taxpayers would be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21.
The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover upto Rs 2 Crore.
The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore.
The GSTR-9C is a reconciliation statement required to be furnished by a taxpayer whose turnover exceeds Rs.2 crore in a financial year while filing his annual return in form GSTR-9.
As per the Finance Bill 2021, “In section 35 of the Central Goods and Services Tax Act,sub-section (5) shall be omitted.” In last four years, the taxpayers filed GSTR-9C for two consecutive years i.e., 2017-18 and 2018-19..
Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on net cash basis, to be notified at the earliest.
The 43rd GST Council chaired by Finance Minister Nirmala Sitharaman made a Key decisions as follows:
The Institute of Company Secretaries of India (ICSI) issued a Clarification regarding the eligibility of CS Students whose registration has lapsed / will lapse, for the CS Exam June 2021 Session of Examination.
Due to Postponement of June 2021 session of examination, the ICSI clarified that students whose registration at the time of submitting their enrollment request for June 2021 Session of Examination were valid, they all will be treated eligible to appear in the CS June 2021 Examination without seeking De-novo Registration, irrespective of the dates when the said examinations are actually being conducted.
“The said facility is only for appearing in the June 2021 Examination. If a student concerned wishes to avail any other services (i.e. undergoing various training programs of Institute, etc.), he/she has to renew his/her registration as per defined procedure,” the ICSI announced while directing all the students who will appear in June 2021 Session of CS Examination.
