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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Use of acronym ‘ICAI’: Supreme Court dismisses Plea by Chartered Accountant

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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Franklin Templeton Case: Trustees in Mutual Fund Scheme to take consent of Unitholders before deciding to wind up Scheme, rules Supreme Court

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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Circular mandating Pre-SCN for Service Tax Demand beyond 50 Lakh: Karnataka HC says, the Benefit of Master Circular can’t be One-Sided, dismisses Taxpayer’s Plea

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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Madras HC stays Suspension Order against State Tax Officer for Suppressing Vital Facts, Misleading Court [Read Order]

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.

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ICAI notifies Schedule of Information Systems Audit Course Assessment Test [Read Notification]

The 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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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.

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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CA Exams cancelled in all examination centers in Kathmandu: ICAI

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.

[LIVE NOW] Webinar – GST impact on IBC

The Following are the details of Webinar happening now.

You are invited to a Zoom webinar.
When: Jul 4, 2021 04:00 PM
Topic: GST impact on IBC by CMA Bhogavalli Mallikarjuna Gupta

Please click the link below to join the webinar:
https://us06web.zoom.us/j/83044183574?pwd=UzdnK2NsVnozaFQ4YWl6WDZoQVA4dz09

Passcode: 2021

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CA Students can opt-out of CA Exams if they, family members suffer from COVID-19 without producing RT-PCR, says ICAI

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.

GST applicable on Deferred Payments for Construction of Roads: CBIC [Read Circular]

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.

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No GST on Food serving in Anganwadis under Mid-Day Meals Scheme funded by Govt Grants / Corporate Donations: CBIC [Read Circular]

The 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.

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Finance Minister invites Written Representations regarding Glitches on New Income Tax Portal

The 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.

CS Exam: ICSI allows Opt-out facility, Check Out the Details

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.