MCA amends Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 [Read Notification]

The Ministry of Corporate Affairs vide notification dated 9 th June 2022 has amended the provision of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

Pursuant to the said amendment, now the Registrar may call for further information/document if the Registrar finds that the application in Form STK-2 (Application by Company to ROC for removing its name from Register of Companies) is defective/incomplete in any aspect. The same shall be informed to the Registrar within 15 days from the date of seeking of information and further if after re-submission of the form or document still any further information/document is required the same shall be provided to the Registrar within further fifteen days’ time.

It is also to be noted that any re-submission of the application in Form STK-2 made prior to the commencement of the aforesaid Amendment Rules, 2022 shall not be counted for the purposes of reckoning the maximum number of re-submissions of such Form.

Accordingly, post amendment the following insertions have been made in Rule 4 after sub rule 3 in the aforementioned Rule:

(a) Where the Registrar, on examining the application made in Form STK-2, finds that it is necessary to call for further information or finds such application or any document annexed therewith is defective or incomplete in any respect, he shall inform to the applicant to remove the defects and re-submit the complete Form within fifteen days from the date of such information, failing which the Registrar shall treat the Form as invalid in the electronic record, and shall inform the applicant, accordingly.

(b) After the re-submission of the Form or document, if the Registrar finds that the Form or document is defective or incomplete in any respect, he shall give further time of fifteen days to remove such defects or complete the Form, failing which the Registrarshall treat the Form as invalid in the electronic record and shall inform the applicant, accordingly.

(c) Any re-submission of the application in Form STK-2 made prior to the commencement of the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2022 shall not be counted for the purposes of reckoning the maximum number of re-submissions of such Form.

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CA, CMA vacancy in IBM

The IBM India Private Limited has invited applications for the post of Complex Project Manager- Finance.

Responsibilities:.

Qualifications:

For more details and to apply, click here:

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ICAI CA Foundation Admit Card 2022 released: Check Details

The Institute of Chartered Accountants of India ( ICAI ) has released the CA Foundation Admit Cards 2022.

Candidates who had registered for the CA exam can download their admit cards by visiting the official website of ICAI.i.e. icaiexam.icai.org.

The exam will be conducted on June 24, 26, 28, and 30, 2022 across the country. The CA Foundation exam 2022 will be conducted in two shifts – For Paper I and II, the exam will be conducted between 2 PM to 5 PM, while for paper III and paper IV, the exam will be conducted between 2 pm to 4 pm.

How to check and Download ICAI CA Foundation Admit Card 2022:

1. Candidates are required to visit the official website of ICAI.i.e. icaiexam.icai.org.
2. They must click on the notification link that reads ‘ICAI CA Foundation Admit Card 2022’ flashing on the homepage.
3. Fill up the required details such as user ID and password.
4. The ICAI CA Foundation Admit Card 2022 will be displayed on the screen.
5. Download ICAI CA Foundation Admit Card 2022 and save it for future reference.

The candidates are required to carry their photo identity card along with the hard copy of the admit card on the day of ICAI CA exam.

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CA vacancy in Myntra

The Myntra has invited applications for the post of Manager– Business Finance.

 Responsibilities:

Qualifications:

Location: Bengaluru

For more details and to apply, click here:

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Product Development Charges on existing Businesses can be treated as Revenue: ITAT [Read Order]

The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that product development charges on existing businesses can be treated as revenue.

This appeal was filed by the Revenue against the order dated 19-04-2018 passed by the Commissioner of Income Tax (Appeal) in deleting the disallowance of Rs.1,74,94,046/- on account of product development charges treating the same as revenue.

The assessee company engaged in the business of manufacturing automobiles signalling lights and other electrical items and filed a return of income declaring a total income of Rs.2,56,73,220/- and the AO determined the same at Rs.4,31,12,090/- by making disallowance of Rs.3,17,32,165/- by an order passed u/s. 143(3) r.w.s. 92CA(3) of the Act.

It was observed that the AO treated the expenditure relating to product development charges as capital and allowed depreciation on the same while the assessee treated the expenditure as revenue.Theassessee contended that AO treated the expenditure as capital but the assessee treated it as revenue in its books and claimed it as revenue expenditure in the return of income and CIT(A) allowed it as revenue.

It was observed that there was no concession made by the assessee before the AOandwas challenging the disallowance made by the AO on account of product development charges treating expenditure incurred thereon as capital expenditure.

The Tribunal consists of Shri R S Syal, vice president and Shri S SViswanethra Ravi, Judicial member observed that the issue of revenue expenditure was not examined by the AO and remanded the issue to AO for its fresh consideration given the submissions made by the assessee by giving proper opportunity to the assessee. Shri Sharad Shah appeared on behalf of the assessee and Shri M.G. Jasnani appeared on behalf of the revenue.     

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CA, CMA vacancy in Cognizant

The Cognizant has invited applications for the post of Team Leader.

Responsibilities:

Qualifications:

Location: Hyderabad, Telangana, India.

For more details and to apply, click here:

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B.Com, CA vacancy in Barclays

The Barclays has invited applications for the post of Assistant Manager.

Responsibilities:

Qualifications:

Location: Pune, Maharashtra.

For more details and to apply, click here:

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Excess Share of Profit claimed can’t be treated as ‘Income from Other Sources’: ITAT [Read Order]

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that excess share of profit claimed can’t be treated as ‘Income from other sources’. The assessee filed an original returndeclaring total income at Rs.9,66,360/-, which was revised on 31-07-2016 with total income at Rs.11,66,360/- in which the assessee claimed exempt income of his…

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Income Tax Assessment Order wrongly recorded Non-filing of Reply by Assessee: Madras HC Orders Fresh Adjudication [Read Order]

The Madras High Court has recently directed the income tax department to adjudicate the re-assessment initiated under section 148A of the Income Tax Act, 1961since the order wrongly mentioned that the assessee has not responded to the notice.

The Petitioner, V.M.Vijayakumar has challenged the impugned order passed under Section 148A (d) of the Income Act, 1961 the Petitioner was issued with a notice under Section 148A of the Income Act, 1961 on 20.03.2022 and that the Petitioner has also replied to the same on 25.03.2022, which has also been acknowledged. However, the impugned order has wrongly recorded that the Petitioner has not responded.

After considering arguments from both sides, Justice C Saravanan observed that the copy of the e-Proceedings/acknowledgment indicates that the Petitioner had indeed filed a reply to the notice issued under Section 148A of the Income Act, 1961, on 25.03.2022.

“Considering the same, I am inclined to come to a conclusion that the observation in the impugned order that the Petitioner has not responded to the notice is not correct. Therefore, the impugned proceedings dated 31.03.2022 passed by the Respondent in PAN:AAAHV0166N in DIN and Notice No.ITBA/AST/F/148A/2021-22/1042382229(1) under clause(d) of Section 148A of the Income Tax Act, 1961 is hereby quashed and the case is remitted back to the Respondent to pass appropriate order within a period of four weeks from the date of receipt of a copy of this order. No costs. Consequently, the connected Miscellaneous Petitions are closed,” the Court said.

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Actor S J Surya shall face Criminal Trial for Non-filing of Income Tax Returns despite Assessments Quashed by ITAT: Madras HC [Read Order]

In a major set back to tollywood actor Mr. S J Surya, the Madras High Court has upheld the criminal charges for non-filing of income tax returns and non-payment of advance tax by observing that the order of Income Tax Appellate Tribunal (ITAT) quashing re-assessment orders on ground of barred by limitation.

Petitioner/accused is a cine actor and Director deriving income from remuneration for acting in movies and also directing movies. He ought to have filed his return of income for the assessment year 2002-2003 on or before 31.07.2002. a criminal complaint was registered against the actor under Section 276 CC of Income Tax Act, 1961as he did not filed his return of income within the due date prescribed by the statute and thus contravened the provisions of Section 139 (1) of the Income Tax Act, 1961 various other charges including non-payment of advance tax for various years.

Before the High Court, the petitioner contended that the complaint is pre-mature, when the proceedings before the department are yet to conclude and reach finality. It was also contended that the assessment order passed by the Assessing Officer, confirmed by the CIT (A) have been set aside by the Income Tax Appellate Tribunal declaring the Assessment orders as null and void.

Upholding the criminal charges, Justice G.Chandrasekharan clarified that pendency of re-assessment proceedings are remanding matter for adequate opportunity and that adjudication by Tribunal through adjudication proceedings are not a bar for launching a criminal prosecution.

“Even if the adjudication proceedings ended in favour of assessee, it can be taken in favour of assessee only if the adjudication proceedings discussed all the issues raised in the complaint on merits and gave its findings. If the adjudication proceedings were disposed on technical ground and not on merits, prosecution can continue and assessee/accused cannot take advantage of the order passed in adjudication proceedings,” the Court said.

The Court further added that “it is seen from the complaint allegation that despite, giving notice, statutory notice as detailed in the complaint, petitioner has not filed return, paid advance tax and tax demanded, suppressed the real and true income by not filing the return in time. These issues have to be necessarily tried before the Court. The assessment order relating to the assessment year 2009-2010 was not challenged before the Income Tax Appellate Tribunal. Therefore, petitioner cannot seek aid of order passed by the Income Tax Appellate Tribunal in I.T.A.Nos.1858 to 1862/Mds/2014. In this case also there is allegation of non filing of return of income for the assessment year 2009- 2010, concealment of true and correct income by not filing return of income, non payment of income despite issuance of notice. These violations are liable to be prosecuted for the offences under Section 276 C (1), 276 C (2), 276 CC and 277 of the Income Tax Act, 1961.”

While concluding, the Court added that “When it comes to quashing a criminal proceedings, it is very well settled that uncontroverted averments in the complaint without any addition or subtraction should be looked into to examine whether an offence can be made out are not. If that yardstick is applied in this case, this Court is of the considered view that respondent/complainant made out prima-facie case to proceed against the petitioner for the offences alleged in the complaint. Section 278 (e) of the Income Tax Act, 1961, empowers the Court to presume culpable mental state of the accused, unless, the accused shows that he had no such mental state with respect to the act charged as an offence in the prosecution. In this view of the matter, this Court finds that petitioner shall necessarily face the trial”

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96Ace Casino: How To Become A Professional Poker Player in Malaysia

It definitely looks glamourous walking into Las Vegas like a VIP or participating in tournaments like the World Series of Poker. But behind the scene, the long hours of training and practising, plus managing your lifestyle as a career can be daunting. 

Therefore, if you want to be a professional poker player, you definitely have to work very hard to make it happen. So, before you make the jump and get started with this, 96ACE Casino‘s experts suggest you a few things you should consider first:

Build Your Bankroll

Poker is a high-risk high-reward game, you need a lot of money to gamble comfortably. So, make sure that you have a sizable bankroll before you enter the game. A proper poker bankroll is one that allows you to risk only what you can afford to lose.

Without a solid bankroll, you will be playing with scared money. Money that you are too scared to lose. That will affect your performance. So, you need to build your poker bankroll first to act as your safety net. Ideally, do that before you even quit your day job and start playing full-time. 

Manage Your Bankroll

You might be good at some of the aspects of poker. But if you want to get to the professional level, you need to have good bankroll management skill too.

Ideally, keep a separate bank account so that you have clear visibility on the amount you can gamble with. This also helps to prevent you from accidentally gambling away money that’s meant to sustain yourself.

Lastly, play according to your bankroll. Don’t move to the high-stakes game until your bankroll allows it. You can make some risky play every now and then, but ensure you do not go overboard.

It is fine if you do not have a lot to play with. Just play in low stakes game and do not make a big mistake or take big risks. It’s better to have a small bankroll than to be broke and unable to play at all.

Set Goals & Track Your Results

Being a pro player does not mean you can conveniently neglect the management aspect of work. If you are playing poker for a living, you need to treat it as a proper job. 

Like any job, you have to set goals and directions. Then, plan how you would achieve them. Ideally on an annual basis too like most companies. From there, you have to track your results and measure your win rate. That is how you access your performance periodically.  

Take necessary action when you are underperforming. Reward yourself when you achieve your goals. 

Pick Your Game And Be Consistent

Since there are multiple variants of poker games, it is best that you pick one and be a master at it. But do not neglect the other variants entirely. You never know when the trend will shift and a new variant becomes popular. 

Currently, the top 3 are Texas Hold’em, Omaha and 7 Studs. Pick one to master first while casually keeping an eye open for the others. As and when another variant grows in popularity, it will be easy for you to adapt. 

Invest In Yourself 

Good players need to be on top of their strategies and tactic. Therefore, it is worth investing in yourself. Many of the best players shared that their real progress started after investing in their first coach or mentor. Then big results came soon after that.

A great coach can do so much to save you trial and error time and even money. It is better to go through a thorough course and learn from a veteran. That will bring you from an average player to a winning player faster than you trying to figure things out on your own. 

Practice 

Very often, success boils down to practice. Practice will raise your skill level. Thus, the more you put into practice what you have learned, the better your chances of success. You get to familiarize yourself with a variety of poker hands and situations. From there, you can learn how to handle them effectively. 

It’s like what many athletes, high performers, and even top poker players can tell you – it takes constant training and improvement to be the best in whatever field you compete in.

So, if you are planning to kick off your poker career, begin your practice with online casinos first such as SG Online Casino and 96Ace. They make an amazing training site for aspiring players. 

Keep On Learning

In a game as tricky as poker, it pays to get as much knowledge and information as possible. You would want to subscribe to various poker sites for the latest news and information. Plus, consider subscribing to pro poker players’ YouTube and Twitch channels as well. 

You have to keep learning to keep up with the latest tactic and players. Poker strategies are constantly changing. Those failed to adapt will lose eventually.

When playing or watching others play, always try to figure out what the other players are doing to win. Then, incorporate those things into your game plan so you can keep up with them.

Prepare Yourself Mentally

The game of poker has an enormous mental component. The ability to maintain focus, think quickly and make decisions are all part of being a successful poker player. You cannot play well without first having a great diet, great overall health and good stress management. Poker is a game of concentration, and all of these things are key for a healthy mind and body.

As a pro poker player, your entire life will become one big emotional roller coaster. That is one of the main reasons why many did not make it over the long run. It does not matter how good you are, the roller coaster ride will always exist.

It is very difficult to just mentally remove these results from your mind each day, carry on as if nothing happened and still perform well on the poker table. One moment you can be at top of the world but the next moment, down in the dumps. This cycle of steep emotional ups and downs will never end.

Have A Contingency Plan

Every year, thousands of players take to the tables in hopes of making it big like poker pro Daniel Negreanu. However, for every player that does well enough to do something else with their lives, there are thousands that don’t. Thus. it’s absolutely unrealistic if you expect not to fail. 

That’s why it’s important to prepare a contingency plan. There are still various paths you can take based on your skill and experience as a professional poker player. 

You can be a poker journalist, sharing the news, insight and latest happenings in the poker industry. Being a coach or a teacher is also a viable path, share your journey to budding poker players. Lastly, playing poker should help you develop the skill to be a good salesperson. 

Having a contingency plan is also very important so that you do not play in fear. A do or die approach may work for some. But, playing poker under such pressure may work against you. Therefore, if you have a contingency plan in place, you can play with more confidence.  

Closing Thoughts

Here we have discussed 5 tips to become a professional poker player. You need to treat it like any other profession. That’s why you need to be organized, have systems and goals. Exactly like a company. 

With these, hopefully you have better insight into what it takes to become a professional player. 

The Quandary of Standard Abatement

The Real Estate players have traveled a bumpy road as far as Indirect taxes are concerned. Right from the era of Sales tax, the sector has faced challenges probably like no other sector. When GST was introduced, the sector was hopeful of some respite – not in financial terms, but in terms of clarity of law and smooth implementation of the same. For a few months, the industry experienced it also only to discover that they are back into the same quandary as before.

However, to rescue the industry players and give some liberation, the Gujarat High Court in a landmark decision has decided that the standard rate prescribed for fixed deduction of land value is optional and not mandatory. The decision in the case of Munjaal Manish bhai Bhatt vs. UOI has surprised the industry in more than one way. Vide this article we wish to deliberate on the ruling and the impact that it may cast on the sector.

Issue at hand

The backdrop of the litigation is that entry no. 3 of Notification No. 11/2017 along with paragraph No. 2 read with Notification No. 3/2019 Central Tax (Rate) dated 29/3/2019 (“said Notifications”) prescribe that in case of valuation of construction services, which involve the transfer of land or undivided share of land, as the case may be, the value of such supply shall be equivalent to the total amount charged for such supply less the value of transfer of land or undivided share of land (which is deemed to be one-third of the total amount charged for such supply).

Separately, Section 7 of CGST Act, 2017 (the Act) defines the scope of ‘supply’. The said definition also clarifies the following:

  1. If any transaction is determined to be a supply within the meaning of GST law, Schedule II would determine whether it is a supply of goods or services. As per entry no. 5(b) of the said schedule, complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of the completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, is treated as service.
  2. Any transaction which forms part of Schedule III, is neither a supply of goods nor a supply of services – i.e., it is not covered within the ambit of GST law and hence not taxable. Entry no. 5 the said schedule specifies sale of land subject to entry no. 5(b) of Schedule II and sale of the building.

From the above, one can infer that the sale of land is not within the purview of the GST law – subject to it being covered by Schedule II. Moreover, the said notifications have prescribed a deemed value to land when a building or a complex is sold along with the land or undivided share inland. This deemed value is 1/3rd of the value of supply. Therefore, the value which would attract GST in the present scenario would be Total value of supply less one third of such value (ascribed to land). It is this deemed value of land that has unsettled the industry and is now being litigated.

Facts of the case:

The writ petition has been filed and combined for two petitioners. One of the petitions has been filed by a petitioner who purchased a bungalow constructed on land and signed an agreement wherein value of land and construction of building was indicated separately. They believed that GST was to be paid only on the value ascribed to construction of bungalow as sale of land was outside the ambit of GST. However, the seller, applied the standard abatement of 1/3rd of value towards land and collected GST accordingly. The petitioner believed that because of the cited notification, the entire consideration towards the sale of land has not been excluded for the purpose of computing tax liability under the GST Acts and has hence filed this petition.

In case of the second petitioner, an advance ruling application was filed seeking a ruling on the question whether there was any tax liability under the GST Acts on supply of developed land. The advance ruling authority held that the deduction for sale of land was admissible only to the extent of 1/3rd of the total consideration on the basis of the notification. Such ruling has been affirmed by the appellate authority for advance ruling. Hence, the validity of the notification as well as the advance ruling appellate order have been challenged by filing the writ applications before this Court.

Petitioners point of view:

The petitioners contended that the standard abatement prescribed by said notifications is ultra vires the law. Entry no. 3 of the said Notification was challenged on the grounds that the said entry was ultra vires Section 7 read with entry no. 5 of Schedule III. Further, the petitioner also contended that the deeming fiction created by the Notifications is contrary to Section 15 which prescribes valuation under GST law.

The petitioners detailed out the history of taxation of land, building and construction services, the landmark judicial precedents and the even the minutes of meeting of GST council wherein taxation of real estate sector was being deliberated. The petitioner vehemently argued that the standard abatement and the deeming fiction created by it is without any valid basis, completely arbitrary, discriminatory and violative of Article 14 of the Constitution of India.

Judgment synopsis – Top 7

In a well explained judgment, wherein the Gujarat High court noted that the question before them was – whether the impugned notification providing for1/3rd deduction with respect to land or undivided share of land in casesof construction contracts involving element of land is ultra-vires theprovisions of the GST Acts and/or violative Article 14 of the Constitutionof India? In this regard, the HC observed the following:

  1. There is no question on the fact that sale of land is not subject to GST. However, as the exclusion of sale of building from the tax net is subject to entry no. 5(b) of Schedule II, the transaction with respect to the sale of building is taxable qua the construction services unless the entire consideration is received by the supplier after the receipt of completion certificate or first occupation whichever is earlier.
  2. “Sale of land” under Schedule III to the Act covers sale of developed land even as per the impugned notification.
  3. There is a clear value which can be ascribed to land and construction services and such value has not been challenged in the affidavit filed by the revenue. Deeming fiction cannot be applied in cases where actual value is available.
  4. The deeming fiction provided in the notification is arbitrary to the extent that it is applied uniformly irrespective of the size of the plot and size of construction. There is no distinction in such deeming fiction even in cases of a bungalow and a flat (where the transfer would only be undivided share in land).
  5. Due to this arbitrary deeming fiction, there is no nexus between the measure of tax and the charge of tax.
  6. Even in case where the value assigned to construction in a contract is reduced, the revenue is not remediless. They can resort to the valuation rules and apposite value can be derived.
  7. The HC read down (and did not hold the provision to be ultra vires) paragraph 2 of the said Notification, to the extent that it should not be made mandatory. It should only be opted by a taxpayer, if actual values are not ascertainable.

Implications of judgment – Our POV

Even in the previous era of Service tax and VAT, there was an option to pay Service tax as per the standard abatement prescribed in this regard (30% of total amount was considered towards construction services). Similar provisions were also there in VAT regime. However, it is pertinent to note here that the taxpayer had an ‘option’ of adhering to the abatement; if there were actual values available, the taxpayer could opt to pay taxes on such actual values. Therefore, the erstwhile regime permitted a taxpayer to pay taxes on actual value, if ascertainable or else resort to abatements if values are not ascertainable.

However, in the said Notifications, the Government seems to have taken away the option of paying taxes on actual value rather than standard abatements. This is bizarre because if actual values are available and they can be substantiated with the help of documents and other information, why would the revenue want to adopt a standard abatement? The revenue in the present case put forth an argument that the parties to the agreement could fix higher values for land to evade taxes and therefore a standard abatement is necessary to protect the interest of revenue. This contention was rejected by court and rightfully so because even if at any point the revenue believes that the value of land has not been declared correctly, it can take recourse of valuation rules and fix the value of land accordingly.

Without a shadow of doubt, the decision is laudable as it clears the grey clouds of uncertainty that have been hovering over the real estate sector for the last couple of years. The logic of mandatory standard deduction in cases of flats and bungalows, large cities and small cities, without any differentiation on account of value of land or divided or undivided share of land seems inexplicable. In India, the value of land differs significantly in tier 1 cities and tier 3 cities; it just doesn’t seem apposite to value such lands with similar mechanism. For a home buyer in larger cities, this deduction is detrimental as only 33% reduction can be claimed for valuation of land and tax needs to be paid on 67%. In all probabilities, such taxpayers end up paying GST on land value as well, which is not the legislative intent.

From the perspective of home buyers, this decision would have a clear impact in the state of Gujarat. Moreover, it shall also hold persuasive value in all other states. Nonetheless, it is most certain that this case shall be appealed against in the Apex Court and that is when the final verdict will be out (if the CBIC does not amend the law that is!). It is germane to note here that the relevant part of the said notifications has not been struck down; but has only been read down. Thus, the standard deduction shall prevail, but only at the option of taxpayer where the value of land is unascertainable.

However, certain question which still remain unanswered are – will there be a differentiator in case of bungalows and apartments (considering apartment owners only get undivided share in land), can the taxpayers across the country immediately start paying GST after deducting land value at actuals, GST already paid by taxpayers in Gujarat – would they be eligible for refund in case excess tax has been computed and paid and so on and so forth! It is safe to say that while the taxpayers have moved one square ahead of revenue in this case, there is still time for them to check and mate!

Jigar Doshi -Taxscan

Jigar is a Chartered Accountant with over 17 years of work experience in the field of indirect taxation. His domain of expertise includes GST, Customs, erstwhile Indirect Taxes and UAE VAT legislations.

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Ms. Nirali Gada, Manager, TMSL

Illegal Detention of Chartered Accountants in GST Refund Fraud Case: 2 GST Officers Suspended

The Central Board of Indirect Taxes & Customs (CBIC) has suspended the GST superintendent & Deputy Commissioner in the recent GST refund fraud case where two chartered accountants were detained for 48 hours.

The Chartered Accountants all over Indiahave call for a protest against the malicious arrest of two chartered accountants detained by DGGI, Gurgaon CGST Department for 48 hours on grounds of their alleged involvement in giving unjust enrichment certificate in a GST refund matter.

The GST Department, after two days had responded to the alleged illegal detention after three days and stated that the two were arrested and remanded to judicial custody for 14 days in connection with a scam amounting to Rs. 20 crores.

Following the event, Smt Nirmala Sitharaman held a meeting with the Institute of Chartered Accountants (ICAI) delegation, led by Vice President Shri Aniket Sunil Talati. The MoF had invited the ICAI on Saturday to discuss various issues, including ongoing investigations by CGST Gurugram into the alleged role of their members in fraudulent GST refunds.

The ICAI representatives informed Smt Nirmala Sitharaman that they will continue to use the recently-enacted ‘CA, CWA and CS Act’ for the inculcation of professional discipline & integrity among its members.

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Chartered Accountants Arrested and Remanded to Judicial Custody for 14 Days: GST Dept response to Detention of 2 CAs

Finally, the GST Department, has responded to the alleged illegal detention of two chartered accountants in a fraudulent GST refund claim and stated that the two were arrested and remanded to judicial custody for 14 days in connection with a scam amounting to Rs. 20 crores.

Two days before, the Chartered Accountants have call for a protest against the malicious arrest of two chartered accountants detained by DGGI, GURGAON CGST Department from the last 48 hours for giving unjust enrichment certificate in a GST refund matter.

Responding to the news and protest, the GST department’s official twitter handle stated that “On the basis of a specific complaint and careful data analysis, officers of the CGST Gurugram Commissionerate detected a case of fraudulent availment of ITC and consequent refunds of about Rs. 20 Crore in the name of 8 firms found to be non – existent.”

“Investigation conducted thus far has revealed the involvement of three persons. One private person was arrested on 06.05.2022 and was remanded to judicial custody upto 21.05.2022. Further, two Chartered Accountants were arrested on 18.05.2022and have been remanded to 14 days judicial custody by the jurisdictional Court. Investigations are continuing for tracing the beneficiaries of the refunds and the role of the officers, if any,” it said.

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Ill-Treatment of Chartered Accountants by Investigation Authorities: ICAI to form Group of Members

The Institute of Chartered Accountants of India (ICAI), considering the atrocities and ill-treatment faced by the Chartered Accountants community, has decided to form a Group of Members to interact with such authorities in such matters.

This is in the light of the recent incident where the Chartered Accountants have call for a protest against the malicious arrest of two chartered accountants detained by DGGI, Gurgaon CGST Department for 48 hours on grounds of their alleged involvement in giving unjust enrichment certificate in a GST refund matter.

A press release of the Institute yesterday stated that the matter related to the recent arrest of Chartered Accountants and other instances of ill- treatment of CAs by investigating authorities was discussed today in the Council of The Institute of Chartered Accountants of India (ICAI).

“The Council members expressed their strong resentment on the manner in which certain Investigating Officers are treating CAs and directly resorting to arrests. The Council was also apprised of the strong feelings of members throughout the country regarding ill-treatment being meted to certain members rather than taking strong action against the actual perpetrators,” the press release said.

It was added that “the Council of ICAI resolved to form a Group comprising of its members to interface with authorities in order to ensure that just and fair treatment is meted out to Chartered Accountants and that they are not made soft targets.”

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Income Tax: CBDT eases Compliance of TDS / TCS [Read Circular]

The Central Board of Direct Taxes (CBDT) has issued a circular prescribing the rules to follow to use the functionality developed to ease compliance for tax deductors/collectors as mandated under Section 206AB and Section 206CCA of the Income-tax Act, 1961 

Finance Act, 2021 inserted two new sections 206AB and 206CCA in the Income-tax Act 1961 which took effect from July 01, 2021. These sections mandated tax deduction (section 206AB) or tax collection (section 206CCA) at higher rate in case of certain non-filers (specified persons) with respect to tax deductions (other than under sections 192, 192A, 194B, 194BB, 194LBC and 194N) and tax collections.

The circular stated that now a person can become a specified person for default in one year instead of the earlier provision of default in two years.

“The deductor or the collector may check the PAN in the functionality at the beginning of the financial year and then he is not required to check the PAN of a non-specified person during that financial year. To illustrate, let us assume that a deductor has 10,000 vendors that he deals with. He can use the functionality in the bulk search mode and can get the result of all these 10,000 PANs in one go. Let us assume that the functionality has shown that out of these 10,000 PANs, 5 PANs are specified persons for the purposes of sections 206AB and 206CCA of the Act.”

“Now with respect to the remaining 9,995 PANs, it is clear that they are not on the list of specified persons for that financial year. Since no new name would be added to the list of specified persons during the financial year, the deductor can be assured that these 9,995 PANs would remain outside the list of specified persons during that financial year. Thus, the deductor need not check again with respect to these 9,995 PANs during that financial year. There are chances that the 5 PANs which are of specified persons may move out of the list during the financial year and for that, there will be a need to recheck at the time of making tax deduction or tax collection,” the circular said.

The circular further stated that as per the provisos of Section 206AB & 206CCA, the specified person shall not include a non-resident who does not have a permanent establishment (PE) in India.

“Since the functionality does not have the visibility of non-residents having PE in India, there is the likelihood that non-residents having PE in India may not get reflected in this list. Tax Deductors& Collectors are expected to carry out necessary due diligence in respect of nonresidents about the applicability of section 206AB and section 206CCA on them,” it added.

It further added that even though this user-friendly functionality has been provided to tax deductors/collectors, and explained through a circular, some of these deductors/collectors were asking the deductee/collectee to produce evidence of their filing of return of income.

“It may be again highlighted that this functionality has been developed to ease compliance for tax deductors/collectors. Asking the deductee/collectee to file evidence of furnishing of their return defeats the purpose of this taxpayer-friendly measure. All tax deductors/collectors are requested to make note of this circular for compliance,” the circular said.

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CA, ACCA vacancy in EY

The Ernst & Young Global Limited has invited applications for the post of EY- Assurance – Manager – AQS.

As part of our EY-Assurance Team, this team is a distinct service that aims to assist the engagement teams across the organization with various quality-related initiatives. The AQS team consists of Assistant Managers, managers and senior managers focused on monitoring and/or enhancing quality checks of procedures performed by EY assurance teams globally. 

Responsibilities:

Qualifications:

Location:  Bangalore.

For more details and to apply, click here:

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CBIC extends Due Date for filing GST PMT-06 [Read Notification]

The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for filing of GST PMT-06 till 27th May 2022.

The notification issued on Tuesday stated that“CBIC vide Notification No. 06/2022- Central Tax dated May 17, 2022, extended the due date for furnishing Form GST PMT-06 (for taxpayers under QRMP Scheme) for the month of April 2022 extended till May 27, 2022, due to the non-availability of Form GSTR-2B on time i.e. by May 14, 2022.”

The Notification further stated that “previously they had issued the advisory dated May 15, 2022, to use Form GSTR-2A for the records not reflected in the Form GSTR-2B which was deleted today (May 17, 2022) by the GSTN.”

PMT-06 is a challan used for making payment of tax, interest, late fees, and penalties under the GST law. Under GST, no more physically filled challans are accepted. Hence, it must be generated from the government’s GST portal each time before the payment transaction by regular taxpayers.

The Government on Tuesday extended the due date for filing of GSTR-3B due to the technical glitches on the GST portal as reported by Infosys.

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Breaking: Technical Glitch in GSTN, CBIC to consider Extension of GSTR-3B Due Date

Due the technical glitches in the Goods and Services Tax Network (GSTN), the Central Board of Indirect Taxes and Customs (CBIC) is seriously considering to grant an extension to the due date for filing of GSTR 3B.

“A technical glitch has been reported by Infosys in generation of April 2022 GSTR-2B & auto-population of GSTR-3B on portal. Infosys has been directed by Govt for early resolution. Technical team is working to provide GSTR-2B & correct auto-populated GSTR-3B at the earliest,” the CBIC’s official twitter handle said.

“Considering the difficulties faced by taxpayers in filing their GSTR-3B for the month of April 2022, a proposal to extend the due date of filing GSTR-3B for April 2022 is under active consideration. Inconvenience caused to the taxpayers is regretted,” the Board added.

GSTR-3B is a self-declared summary GST return filed every month (quarterly for the QRMP scheme). Taxpayers need to report the summary figures of sales, ITC claimed, and net tax payable in GSTR-3B. A separate GSTR-3B must be filed for every GSTIN.

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Penalty can’t be invoked under Income Tax Act without relevant Documents which substantiate Business Activities: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi bench has held that penalty can’t be invoked under Income Tax Act without relevant documents which substantiate business activities.

The appellant GSA (Gestions Sportives Automobiles) is a company engaged in providing services of qualified motor racing drivers to teams participating in the Federation Internationale de’1 Automobile (FIA) Formula One 2011 Championship.

The assessing officer stated that the assessee refused various notice orders for Assessing Year 2012-13. Further contended that the assessee is liable to tax @40 % in relating to business with Indian Grand Prix where the material on record indicates the existence of Permanent Establishment (PE) of the assessee in terms of Article 5 of India Switzerland Double Taxation Avoidance Agreement (Indo-Switzerland DTAA).

The respondent agreed that the assessee cannot be said to have a PE in India.  It was observed that the assessee did not have any agent or representative in India who was involved in negotiating and entering into contracts for and on behalf of the assessee in India. Further viewed that the contract between Formula One World Championship and JSIL is a contract between two independent parties and the assessee is not a party to the contract. The respondent contended that Article 17 applies to the assessee instead of Article 7 of the Tax Treaty.

The appellant contended that there was another identical situation in the assessee’s case, where the AAR has held that such receipts were not taxable in India and pleaded to remit back to the file of AO to consider the issue afresh in the light of the above AAR rulings.

Shri Narendra Kumar Choudhry, Judicial Member, and Shri Shamim Yahya, Accountant Member observed that the order of the AO passed according to the DRP order didn’t raise any question as to the actual duration of the driver’s arrival in India and departurerelated to the event. The Tribunal found it crucial to answer the above with relevant documents and directed to remit the file to the AO to examine the issue.

The Tribunal while allowing the appeal granted an opportunity to give the submissions before the AO. Shri Jay Savla appeared on behalf of the appellant and Ms Meenakshi Singh appeared on behalf of the respondent.

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ICAI asks CA Students to Send Observations on the question papers of CA Exams May 2022

The Institute of Chartered Accountants of India ( ICAI ) has asked CA Students to send the observations on the questions papers of CA Exams May 2022.

The ICAI has said that, the candidates can bring to the notice of the Examination Department, their observations, if any, on the question papers relating to Final and Intermediate Examinations being held in May 2022 by e-mail at examfeedback@icai.in or by way of a letter, sent by Speed Post, at the following address, so as to reach us latest by 5th June 2022.

The Additional Secretary (Exams)
The Institute of Chartered Accountants of India
ICAI Bhawan
Indraprastha Marg
New Delhi 110 002.

The ICAI has also said that only those observations of students will be taken up for consideration who provide their following details i.e.; Name of the Student, Registration Number, Roll Number, email-id and Mobile Number.

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