CA Exams May 2021: ICAI to conduct Mock Test Papers from Tomorrow

The Institute of Chartered Accountants of India ( ICAI ) to conduct Mock Test Papers for CA Exams in May 2021 from tomorrow. The Board of Studies of ICAI is commencing Mock Test Papers Series-I from March 24, 2021, for students appearing in CA Foundation, IIPC & Intermediate; Final Old & New May 2021 examination. The complete schedule of these mock tests can be here.

In view of the prevailing COVID-19 pandemic and the ongoing lock-down at specific places, Mock Tests will be conducted in physical/virtual mode(s). Students interested in the physical mode of Mock Test Papers may approach the respective branches in their area.

The Question Papers for each subject will be uploaded at BoS Knowledge Portal on www.icai.org as per the schedule by 1:30 PM every day during this period. Students are advised to download and attempt these papers in the stipulated time limit designated for the papers. The Answer Key to these papers will be uploaded within 48 hours from the date and time of commencement of the respective paper, as per the schedule. Students can examine their answers with respect to the Answer Keys and self-assess their performance.

BOS will also conduct Mock Test Paper-Series II and Special Counselling sessions, live to resolve students’ queries and provide specific guidance with respect to each paper in IIPC & Intermediate; Final Old & New examination.

Notice Sent to Old Address even when Address was changed in GST Registration Certificate: Andhra Pradesh High Court quashes Assessment Order

The Andhra Pradesh High Court while quashing the assessment order held that notice was sent to the old Address even when the address was changed in the GST registration certificate.

The petitioner, M/s. OSTRO Anantapur Private Limited, Anantapur, and a Company engaged in the business of generation and sale of wind power.

The petitioner during the relevant period purchased certain goods which are in the nature of wind power equipment and accessories which were used for setting up and operation of wind power plants. The total value of the equipment is Rs.62,40,13,181.

Subsequently, during the month of May 2018, the operations of the Company were shifted from the premises at Dwaraka Villas, Kalyandurg Road to the present premises at Kovur Nagar, and the change of address was intimated to the GST Department vide application on the portal for registration of Kovur Nagar premises. The amended registration certificate was also issued to the petitioner on May 15, 2019.

Despite acknowledging the change in the address of the petitioner, the 2nd respondent issued notices to the former address of the petitioner calling for the books of accounts for verification for the relevant period.

The respondent authority also proceeded to issue show cause notice and personal hearing notices to the former address of the petitioner which were returned to the respondent by the postal authorities which was acknowledged by the respondent in the impugned order itself.

The division bench of Justices U.Durga Prasad Rao and J.Uma Devi noted that the GST registration certificate of the petitioner shows that the address of the petitioner was changed. So, for this reason also, the petitioner cannot be said to have received the notices which would have been sent to the old address.

The Court held that the petitioner did not receive any of the notices said to be sent by the respondent authority and therefore, they had no occasion to submit their explanation/objection. So also, they had no occasion to submit their case personally. Consequently, the principles of natural justice are violated in the instant case. Therefore, the impugned assessment order is liable to be set aside. The court directed the respondent to permit the petitioner to submit its records and documents in support of its case and consider them and after affording the personal hearing to the petitioner, pass the assessment order afresh in accordance with the governing law and rules expeditiously.

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IIMs, IITs, Central Universities: Know the Complete List of Universities recognizing ICAI CA Qualification for pursuing Ph.D

The Institute of Chartered Accountants of India ( ICAI ) issued the List of Universities recognizing CA Qualification for pursuing a Ph.D.

Recently, the University Grants Commission has resolved that CA Qualification will be treated equivalent to PG Degree based on requests submitted from the ICAI.

The ICAI notified 20 Institutes/ Universities from the Western Region; 33 Institutes/ Universities from the Southern Region; 15 Institutes/ Universities from the Eastern Region; 31 Institutes/ Universities from the Central Region; and 16 institutes/ Universities from the Northern Region.

This will not only help CA’s for pursuing higher studies but will also facilitate the mobility of Indian CAs globally.

Name of the Institutes /Universities

Western Region

  1. Bhavnagar University, Grouri Shankar Lake Road, Bhavnagar 364 002
  2. Dr. Babasaheb Ambedkar Marathwada University, Aurangabad 431 004
  3. Gujarat University, P.B.No. 4010, Navrangpura, Ahmedabad 380 009
  4. Goa University, Sub Post Office,Goa University, Taleigao Plateau,Goa 403 203
  5. Indian Institute of Management, Vastrapur, Ahmedabad 380 015
  6. M.S. University of Baroda, Opp Drug Lab,Vadodara 390 002
  7. University of Mumbai, M.G.Road, Fort,Mumbai 400 032
  8. North Maharashtra University, PB No. 80, Umavinagar, Jalgaon 425 001
  9. Hemchandracharya North Gujarat University, P.B.No.21, University Road,Patan 384 265
  10. University of Pune, Pune 411 007
  11. Rashtra Sant Tukdoji Maharaj Nagpur University Ravindranath Tagore Marg, Nagpur-440 001
  12. Sardar Patel University, Vallabh Vidyanagar 388 120
  13. Saurashtra University, University Road,Rajkot 360 005
  14. Shivaji University, Vidyanagar,Kolhapur 416 004
  15. Tata Institute of Social Sciences, Sion Trombay Road, Deonar,Mumbai 400 088
  16. Yashwantrao Chavan Maharashtra Open University, Dnyangangotri, Near Gangapur Dam, Nasik 422 00
  17. Nirma University, Ahmedabad- 382 481
  18. Dr. D. Y. Patil Vidyapeeth, (Deemed University) Pimpri, Pune – 411018
  19. Bharati Vidyapeeth Deemed University, Pune- 411 030
  20. Indian Institute of Technology Bombay, Mumbai- 400 076

Southern Region

  1. Alagappa University, Algappa Nagar,Karaikudi 623 003
  2. Annamalai University, Annamalainagar 608002, TN
  3. Bangalore University, Jnana Bharathi,Bangalore 560 056
  4. Bharathidasan University, Palkalai Perur,Tiruchirappalli 620 024
  5. Bharathiar University, Coimbatore 641 046
  6. Calicut University, Thenhipalam, Malappuram Dist. – 673 635
  7. Cochin University of Science & Technology, Kochi 682 022
  8. Dr. B.R.Ambedkar Open University, Prof. G. Ram Reddy Marg, Road No.46, Jubilee Hills,Hyderabad-500 033
  9. University of Hyderabad, P.O. Central University, Hyderabad 500 046
  10. Indian Institute of Management, Bannerghatta Road, Bangalore – 560 076
  11. Kakatiya University, Vidyaranyapuri, Warangal-506 009
  12. Karnatak University, Pavate Nagar, Dharwad 580 003
  13. University of Kerala, Thiruvananthapuram 695 034
  14. Kuvempu University, Gnanasahyadri, Shankaraghatta 577 451, Dist. Shimoga (Karnataka)
  15. Mangalore University, New Administrative Building, Mangalagangothri, Mangalore 574 199
  16. Mahatma Gandhi University, PO Priyadarshini Hills, Kottayam 686 560
  17. University of Madras, Chepauk, Chennai 600 005
  18. Madurai Kamaraj University, Madurai 625 021
  19. Osmania University, Hyderabad 500 007
  20. Pondicherry University, R V Nagar, Kalapet, Pondicherry 605 014
  21. Sri Krishnadevaraya University, Anantapur 515 003, Andhra Pradesh
  22. Sri Venkateswara University, Tirupati-517 502
  23. Periyar University, Salem
  24. Indian Institute of Management, Kozhikode
  25. National Law School of Indian University, Bangalore
  26. Christ University, Bangalore
  27. Sri Sathya Sai Institute of Higher Learning, Anantapur 515 134, Andhra Pradesh
  28. Manipal University, Manipal- 576104, Karnataka
  29. Avinashilingam Institute For Home Science And Higher Education For Women, Mettupalayam Road, Bharathi Park Road, Coimbatore -641 043
  30. Indian Institute of Technology Madras, Chennai – 600 036
  31. CMR University, HRBR Layout, Bangalore-560043
  32. SRM University, SRM Nagar, Kattankulathur-603203
  33. Visvesvaraya Technological University, Belagavi, Karnataka

Eastern Region

  1. Rajiv Gandhi University, Rono Hills, Itanagar-791 112
  2. Gauhati University, Gopinath Bardoloi Nagar, Guwahati 781 014
  3. Indian Institute of Management, Joka D.H. Road, Post Box 167 57, Calcutta 700 027
  4. Manipur University, Canchipur,Imphal 795 003
  5. University of North Bengal, Raja Rammohunpur 734 430, District Darjeeling
  6. Sambalpur University, Jyoti Vihar,Sambalpur 768 019
  7. Tezpur University, Napaam, Tezpur-784 025, District Sonitpur
  8. Utkal University, Vani Vihar,Bhubaneswar 751 004
  9. Vidyasagar University, Midnapore 721 102, West Bengal
  10. Kalyani University, Kalyani 741235 ,West Bengal
  11. Rajiv Gandhi Indian Institute of Management, Shillong
  12. Mizoram University, Aizawl- 796004
  13. Sikkim University, Gangtok-737102, Sikkim
  14. Dibrugarh University, Dibrugarh
  15. The Assam Royal Global University, Guwahati, Assam

Central Region

  1. Aligarh Muslim University, Aligarh 202 002
  2. Awadhesh Pratap Singh University, Rewa-486 003
  3. Banaras Hindu University, Varanasi 221 005
  4. Barkatullah Vishwavidyalaya, Bhopal 462 026
  5. Babasaheb Bhimrao Ambedkar Bihar University Muzaffarpur 842 001
  6. Ch. Charan Singh University, Meerut 250 005
  7. Chatrapati Shahu Ji Maharaj University, Kalyanpur,Kanpur 208 024
  8. Devi Ahilya Vishwavidyalaya, R.N.Tagore Marg, Indore 452 001
  9. Dr. Bhim Rao Ambedkar University, Agra 282 004
  10. Guru Ghasidas University, Bilaspur-495 099 (M.P)
  11. Indian Institute of Management, Prabandh Nagar, Off. Sitapur Road, Lucknow-226 013
  12. Jai Naraian Vyas University, Jodhpur 342 001
  13. Rajasthan University, Jaipur
  14. Jiwaji University, Gwalior 474 011
  15. University of Lucknow, Lucknow 226 007
  16. Mahatma Gandhi Kashi Vidyapeeth, Varanasi 221 002
  17. Mohanlal Sukhadia University, Udaipur 313 001
  18. MJP Rohilkhand University, DoriLal Agarwal Marg,Bareilly 243 001
  19. Nalanda Open University, 9, Adarsh Colony,Kidwaipuri, Patna-800 001
  20. Pt. Ravishankar Shukla University, Raipur 492 010
  21. Ranchi University, Ranchi 834 008
  22. Rani Durgavati Vishwavidyalaya, Saraswati Vihar, Jabalpur 482 001
  23. Vikram University, Ujjain 456 010
  24. Amity University, Uttar Pradesh
  25. Central University of Jharkhand, Ratu-Lohardaga Road, Brambe, Ranchi – 835 205
  26. Banasthali University, P.O Banasthali Vidyapith – 304022, Rajasthan
  27. Mangalayatan University, Aligarh
  28. Gautam Buddha University, Greater Noida, Gautam Budh Nagar, Uttar Pradesh-201312
  29. Maharishi Arvind University, Jaipur, Rajasthan
  30. Patna University, Patna
  31. Bhagwant University, Sikar Road, Ajmer, Rajasthan

Northern Region

  1. Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi-110 006
  2. Himachal Pradesh University, Summer Hills, Shimla 171 005
  3. Indira Gandhi National Open University, Maidan Garhi, New Delhi-110 068
  4. University of Jammu, Baba Saheb Ambedkar Road, Jammu Tawi-180 004
  5. Jamia Hamdard, Hamdard Nagar, New Delhi-110 062
  6. Jamia Millia Islamia, (A Central University by an Act of Parliament) Maulana Mohammed Ali Jauhar Marg, New Delhi- 110 025
  7. University of Kashmir, Hazratbal, Srinagar 190 006 (J & K)
  8. Kurukshetra University, Kurukshetra 132 119
  9. Panjab University, Chandigarh 160 014
  10. Punjabi University, Patiala 147 002
  11. Maharshi Dayanand University, Rohtak 124 001
  12. Chaudhary Devi Lal University, Sirsa
  13. Shri Mata Vaishno Devi University, Jammu
  14. Lovely Professional University, Jalandhar-Delhi G.T. Road, (NH-1), Phagwara, Punjab
  15. Guru Nanak Dev University, Amritsar, Punjab

Indian Institute of Management, Jammu

GST Authority not to take coercive measures, ensure no invasion of privacy takes place while Investigation: Delhi High Court [Read Order]

The Delhi High court directed the GST Authority not to take coercive measures and ensure that no invasion of privacy takes place while investigating.

The petitioner, Mridul Tobie Inc. submitted that within two days of notice being issued, authorisation was given for a search being carried out by the DGGI.

According to the petitioner, the search was, consequently, carried out at the premises of the petitioner located in Gautam Budh Nagar.

Ms. Anjali J. Manish, who appears on behalf of the petitioner said that repeated searches, not only by Gautam Budh Nagar Commissionerate, but also by other Intelligence Units, are completely oppressive and in fact, the most recent search carried out at the residential premises of the proprietor was a case of breach of invasion of privacy.

Ms. Manish urged that in view of the fact that the investigation process was commenced, in the first instance, by the Gautam Budh Nagar Commissionerate, the investigation should have been carried out by that Commissionerate only and that other Intelligence Units ought to have held their hands. In support of this plea. Ms. Manish relied upon the circular dated October 5, 2018, issued by the Central Board of Excise & Customs, Department of Revenue.

On the other hand, Mr. Ravi Prakash, who appears on behalf of the respondents, says that the circular will have no application since the “subject matter” is different.

The division bench of Justices Rajiv Shakdher and Talwant Singh directed the respondent authority to file their reply to the captioned application within the next two weeks, for the moment, no coercive measures will be taken against the petitioner. “If in the interregnum, the investigation is necessitated, in line with the circular dated 05.10.2018, it shall be carried out only by the Gautam Budh Nagar Commissionerate. The search officers will ensure that there is no invasion of privacy,” the court while listing the matter on March 22, 2021, said.

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Govt. nor CBIC has issued any instructions to GST Officers for Phone Calls, WhatsApp, Messages asking Taxpayers to discharge maximum Tax Liability in Cash, clarifies CBIC

The Central Board of Indirect Taxes and Customs (CBIC) in the press release said that GST officers not to use phone calls, WhatsApp, messages asking taxpayers to discharge maximum tax liability in cash.

The press release said, “Unconfirmed reports have appeared in certain sections of the media that some GST officers are using unauthorized communication means such as phone calls, WhatsApp and messages asking taxpayers to discharge ‘maximum tax liability in ‘cash’ in order to ensure that targets for revenue collection from GST for the financial year are met”.

The Board further clarified that neither the Government nor the CBIC has issued any such instructions to their field formations. As such, taxpayers are free to utilise the Input Tax Credit available in their credit ledger, as permissible in law, to discharge their GST dues for the month of March, 2021 i.e. the last month of this financial year.

Rajasthan Govt. issues clarification on VAT Amnesty Scheme, 2021 [Read Circular]

The Rajasthan Government issued the clarification on the VAT Amnesty Scheme, 2021. The government clarified that outstanding demands or disputed amounts that pertain to regular assessment and its escaped assessment, if any, and are not related to evasion cases. Here the penalty, if any, as mentioned in column 4 of Table A, implies a penalty other than the penalty imposed for evasion/avoidance of tax.

“Such outstanding demands cover those created for non-submission of declaration forms or certificate prescribed for concessional rate or nil rate of tax under the RST Act, VAT Act or CST Act and also include those pertaining to Form VAT-15, VAT-72 but excluding those pertaining to Form VAT-41 or Exemption Certificate. Here the penalty, if any, as mentioned in column 4 of Table-A, implies penalty other than the penalty evasion/avoidance of tax,” the Government clarified.

Outstanding demands or disputed amount pertaining to cases of evasion/avoidance of tax made out either on grounds of dispute regarding the rate of tax or classification of goods or interpretation of Act, where goods have been truly disclosed in the returns and/or books of accounts and do not fall under Clause 10 of explanations given under the Scheme, irrespective of penalty imposed or not.

Outstanding demand or disputed amount pertaining to evasion or avoidance of tax which has arisen due to various reasons.

Firstly, concealment of any transactions of sale or purchase from his accounts, registers or documents required to be maintained by the dealer and in the return(s) furnished.

Secondly, fraudulent or misrepresentation of facts made in the returns and/or books of accounts by the dealer.

Thirdly, failed to get himself registered under the Act and has avoided tax.

Fourthly, cases where ITC is availed on the basis of false or forged VAT invoices.

Fifthly, unaccounted goods, and bogus declaration forms submitted for availing concessional benefit.

Lastly, misuse of declaration form(s) or Certificate(s); and cases related to Goods or vehicles in transit.

“Where the outstanding demand or dispute includes an amount partly pertaining to the goods included in the entry number 54 of the Schedule-VII of the Constitution and partly to other goods not covered by the said entry, will be eligible for the benefits under the Scheme only to the extent of amount of demand dispute related to goods not covered under entry number 54 of the Schedule-VII of the Constitution,” the Government said.

The government added that where any amount has been deposited or recovered, including the amount deposited for filing of an appeal, prior to February 24, 2021, it shall be adjusted as per Clause 2 under explanation(s) of Amnesty Scheme-2021 against the created demand. The benefits of the Scheme shall be available only for the balance of outstanding demand as per the provisions of the Scheme.

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Show Cause Notice to be served before denying GST Refund: Jammu & Kashmir High Court quashes Order

The Jammu and Kashmir High Court quashed the order rejecting the refund and remitted the matter back to the Authority for fresh consideration.

The petitioner, Navneet R. Jhanwar having become entitled to refund of excess tax paid in terms of Section 54 of the Act, submitted a refund claim before the respondent authority in FORM-GST-RFD-06.

The Respondent instead of directing the refund issued a show-cause notice calling upon the petitioner to show cause as to why his refund claim to the extent of the amount claimed should not be rejected or the amount erroneously refunded should not be recovered for the reason that the claim for refund is belated having been filed after the expiry of two years from the relevant date, as per explanation in Section 54(1) of the Act and that in the instant case the period had expired in April 2020.

The petitioner replied to the show cause notice and explained the delay. He relied upon notification dated April 3, 2020, and Notification dated June 27, 2020 issued by respondent whereby due to outbreak of coronavirus pandemic, time limit/due date for various compliances has been extended up to August 31, 2020. The explanation on delay by the petitioner in light of the aforesaid notifications of respondent No.3 was accepted and accordingly, the application of the petitioner for refund was processed by respondent No.1.

He, however, without serving further show cause notice upon the petitioner, determined the claim for refund and in terms of the order impugned dated December 2, 2020 rejected the same being not tenable in law. It is this order of respondent dated December 2, 2020, which is assailed in this petition.

The petitioner has invited our attention to Section 54 of the Act and Rule 92 of the Central Goods and Service Tax Rules, 2017, wherein it is specifically provided that no order rejecting the claim of refund shall be passed unless the person claiming refund is given an opportunity of being heard.

Mr. D.C.Raina, learned Advocate General appearing for the respondents takes a preliminary objection with regard to the maintainability of the petition. He contends that in view of the availability of alternative remedy against the impugned order under Section 107 by way of appeal before the Appellate Authority, this Court ought not to entertain this petition.

The division bench of Justices Sanjay Dhar and Sanjeev Kumar allowed the petition and quashed the impugned order and remand the case back to the respondent for passing the order afresh after putting the petitioner to proper show cause notice and after affording him a reasonable opportunity of being heard.

Advocates Prateek Gattani and Rahul Sharma appeared for the petitioner.

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No ITC can be claimed on 5% GST paid on License Fee to Indian Railway or IRCTC: AAAR [Read Order]

The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) while upholding the AAR’s ruling held that no Input Tax Credit (ITC) can be claimed on 5% GST paid on a license fee to Indian Railway or IRCTC.

The appellant, M/s. Amar Food Products is engaged in the running of General Minor Units (GMU) at Railway Platforms at which the sale of packed food items, drinks, and cooked items are done.

The appellant sought the advance ruling on the issue of whether the supply of food items at GMUs (General Minor Units) at Railway Platforms which include the only counter sale of packed food items, drinks, and cooked items shall be treated as “Sale of Goods” or “Sale of Services”.

The other issue raised as if it is the sale of services, whether the whole revenue shall be taxed at the rate of 5% without ITC under serial no. 7(ia) of notification no. 11/2017-CT (Rate) dated 28.06.2017 or assessee can opt to pay tax at the rate of 18% with ITC under serial no. 7(ix) of that notification.

The AAR ruled that the supply of Food items at GMUS (General Minor Units) at railway platforms which includes the only counter sale of packed food items, drinks, and cooked items shall be treated as ‘Supply of Services’.

The AAR further ruled that whole revenue shall be taxed at the rate of 5% without ITC under serial No. 7(ia) of notification No. 11/2017- Central Tax (Rate) dated June 28, 2017. Appellant cannot claim the Input Tax Credit of GST paid on license fees to Indian railway or IRCTC.

However, the appellant being aggrieved by the AAR’s ruling filed the appeal before the AAAR.

The Coram of Amrita Soni and Ajay Dixit ruled that the appellant has quoted case laws prior to the GST era, whereas with the introduction of GST, the ambiguity in taxation has been removed to a greater extent. The AAAR observed that after the introduction of Sl No. 7(a) in the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) the Law is very much clear that the GST rate on supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd or their licensees, whether in trains or at platforms, will be 5% without ITC.

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18% GST applicable on Odomos: AAAR [Read Order]

The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) while upholding the AAR’s ruling held that 18% GST is applicable on Odomos.

The Appellant, M/s. Dabur India Ltd. is a Private Limited Company, resident in India, and is engaged in the manufacture of various Fast-Moving Consumer Goods (FMCG) under various product categories such as Hair Care, Oral Care, Health Care, Skin Care, Home Care, Foods, etc.

The Applicant submitted an application for Advance Ruling with an issue for the classification of the product Odomos being manufactured and supplied by them.

The AAR ruled that Odomos is well covered under Chapter 38 of the Customs Tariff Act and is classified under HSN 38089191.

However, the appellant being aggrieved by the AAR’s ruling filed the appeal before the AAAR.

The Coram of Amrita Soni and Ajay Dixit ruled that all the factors relevant for classification under the Customs Tariff lead to the classification of the Applicants’ product “Odomos” under heading no. 38089191, be it the rules for the interpretation of the said tariff, the common parlance test, its chemical composition, or its usage and way of working.

Hence, the AAAR concluded that Odomos is a mosquito repellent and has to be classified under Chapter Heading 3808 9191 of the Customs Tariff Act.

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CBDT issues clarification on Continuation of Concessional Rate of Tax on Interest Income of FPIs

The Central Board of Direct Taxes (CBDT) issued the clarification on the continuation of the concessional rate of tax on interest income of Foreign Portfolio Investments (FPIs).

The Board has clarified that the concessional rate of 5% will continue to be applicable on  certain interest income of FPIs.

Section 115AD of the Income-tax Act, 1961 inter alia contains provisions for taxation of income of FPls. Proviso to section 115AD(1)(i) provides that the tax shall be chargeable at the concessional rate of 5% on interest income referred to in section 194LD.

There are reports in certain sections of media that the said concessional tax rate of 5% has been withdrawn.

“It is hereby clarified that there is no change in the said proviso even after amendment of section 115AD vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the concessional rate of tax of 5% shall continue to be applicable for interest income referred to in section 194LD of the Act,” the CBDT in the press release announced.

GST E-Invoicing: Guidelines for Taxpayers with Turn Over Rs. 50 Cr to 100 Cr on Production

The E-invoicing under the Goods and Services Tax (GST) regime will become mandatory for entities with a turnover of Rs 50 crore and more from April 1 for business to business transactions.

Here is the detailed Guidelines for Taxpayers with Turn Over Rs. 50 Crores to 100 Crores on Production.

Firstly, your GSTINs must be enabled for e-Invoicing. The Registration and login to the system are now open for your GSTINs.

Secondly, you may prepare and register the live invoices in the e-Invoice portal.

Fourthly, E-Invoice Bulk Tools may be downloaded for preparing JSON and IRNs may be generated.

Fifthly, e-way bills may be generated for your IRNs.

Sixthly, you may also register for e-Invoice APIs.

It is noteworthy that in Production environment, the IRNs and e-Way Bills generated will be real and valid, they will not be discarded.

In cases where the ‘Companies having direct Access to APIs’ or if the taxpayer has tie up or using the ERP of the ‘Company which has direct access to API, then he/she can use the API through that company. The GSTIN (Tax Payer) generates his own username and password and gets the access to API using the Client Id and Client Secret of the Company, which has access.

If the taxpayer has direct access to E-Way Bill APIs, then he/she can use the same Client Id, Client Secret, username and password to get the access to e-Invoice system.

The GSTIN (Tax Payer) generates his own username and password and ties up with GSPs to get the access to API using the Client Id and Client Secret of the GSPs.

The GSTIN (Tax Payer) generates his own username and password and ties up with ERPs to get the access to API using the Client Id and Client Secret of the ERPs.

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CBIC issues directions for Manual processing of Declaration filed under SVLDRS, 2019 in order to comply with directions of High Courts [Read Circular]

The Central Board of Indirect Taxes and Customs (CBIC) notified the Manual processing of declaration filed under Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 (SVLDRS) in order to comply with the directions of the High Courts.

The Board has received the references from the CGST Zones in respect of Writ Petitions filed by aggrieved declarants before various High Courts against the decision of the concerned Designated Committees taken under SVLDRS, 2019.

The cases in which the High Court has decided in favor of the declarant and remanded the matter back to the concerned Designated Committee for fresh decision are referred to the Board for grant of permission for manual processing of the subject declaration so as to comply with the directions of the High Courts.

“In this regard, it is to inform that the O/o DG (Systems) have expressed an inability in providing the facility for electronic processing of the subject declaration and suggested for manual processing,” the circular said.

The Board has clarified that henceforth all such references for grant of approval of manual processing of the declarations need not be made to the Board and such cases can be processed manually by the concerned Designated Committees upon fulfillment of the two conditions.

Firstly, the order of the High Court has been accepted by the Concerned Commissionerate.

Secondly, the ASG/ Sd. Counsel who had represented the case before the Court has opined to accept the said order of the Court. “All such declarations that have been processed manually may be reported to the O/o DG (Systems) by the 15th day of the succeeding month, for the purpose of record,” the Board added.

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Post Offices to deduct TDS on Cash Withdrawal above Rs. 20 lakh from National (Small) Savings Schemes for non-ITR filers [Read Circular]

The Central Government has directed the Post Offices to deduct the TDS in respect of aggregate Cash Withdrawal above Rs. 20 lakh by an account holder of National (Small) Savings Schemes for non-ITR filer under section 194N of Income Tax Act 1961.

The Government has amended section 194N of the Income Tax Act, 1961 through Finance Bill 2020 for deduction of TDS at the rate of 2% on aggregate cash withdrawals in excess of Rs. 20 Lakh in a year and deduction of 5% TDS  on aggregate cash withdrawals in excess of Rs. 1 Crore in a year in case of a recipient who has not filed the returns of income for all the three assessment years relevant to the three previous years.

These new provisions in section 194N are applicable from July 1, 2020.

In other words, for non ITR Filers if aggregate Cash withdrawal exceeds Rs. 20 Lakh but does not exceed Rs. 1 Crore during a FY then the TDS at the rate of 2% of amount exceeds Rs. 20 lakh will be applicable. If Cash withdrawal exceeds 1 Crore during a FY then the TDS at the rate of 5% of the amount above Rs. 1 crore will be applicable.

In case of ITR filers If Cash withdrawal exceeds Rs. 1 crore during a FY then TDS at the rate of 2% of amount exceeds Rs. 20 lakh will be applicable.

These changes are not yet incorporated in Finacle and to facilitate Post Offices CEPT has identified and extract the details of such depositors for the period from 01/04/2020 to 31/12/2020, CEPT will forward the list in excel to concerned Circle/CBS CPCs of the concerned Circles with details of account, PAN number if available along TDS amount to be deducted.

“Incharge, CPC(CBS) of the Circle shall forward the details to respective Post Office and take up for deduction of TDS from such customers/account without fail,” the circular said.

Respective Post Office will deduct TDS and account under Section 194N. Account holders should be informed of such deductions in writing. A voucher will be prepared and signed by the Postmaster concerned for the TDS amount, which will be forwarded to HO/SBCO along with other SB vouchers.

It is noteworthy that  it is a regulatory provision and the concerned postmaster is personally responsible for deduction of TDS as per rules, Non-deduction of TDS may attract recovery/penalty.

“CEPT, Chennai will provide details of such Account Holders in the first week of every month to the respective CPC. CPC will check all these entries in respect of applicability of TDS as prescribed in CBDT press release dated 12.07.2020 (copy enclosed) and as detailed After verifying all the entries received from CEPT, Chennai, the concerned CPC will share details with respective Post Offices for deduction of TDS on applicable rates as detailed above,” the government said. The circular added that the circle shall ensure that all due TDS under section 194N is deducted by the concerned Post Offices and incorporated by concerned HOs in the TDS returns. It is requested to circulate this amendment to all concerned for information and guidance and necessary action.

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Transition of VAT TDS credit into GST ITC: Madras High Court quashes Notices denying of Transition of Credit in respect of TDS [Read Judgment]

The Madras High Court has recently ruled on the Transition of VAT TDS credit into GST ITC wherein it quashed the notices issued by the Commercial Tax Authorities proposing the denial of the transition of credit in respect of Tax Deducted at Source (TDS) in terms of Section 13 of the Tamil Nadu Value Added Tax Act, 2006.

All the 10 petitioners, in the era of TNVAT, have accumulated credit of TDS and have also been permitted to carry forward the same from year to year. The petitioners sought transition of the accumulated TDS into their respective accounts for set off against output tax-GST liabilities which has been denied.

The counsel for the petitioners submitted that TDS is nothing but tax and Section 13 of the TNVAT makes this position clear. Being a value added tax for the purposes of Section 140(1) of the TNGST Act, it is entitled to be carried forward for set-off.

It was argued that TDS is only a mechanism to ensure advance payment and collection of tax without leakage. Thus, TDS is a tax.

“Article 265 of the Constitution of India casts a mandate upon all citizens to the effect that collection of any amount styled as ‘tax’ is under the authority of law. Thus, the requirement of deducting an amount prior to remittance of the same is nothing but a collection of tax in advance. The amount credited in advance by the payer assumes the character of tax in the light of Article 265,” the petition said.

On the other hand, the revenue argued that though nomenclature used in regard to the remittance in question is ‘tax deducted at source, one should not go by nomenclature as what is deducted from a payment made by the payer to payee does not constitute a tax at the time of collection. The remittance assumes the character of tax only upon adjustment towards tax liability and even then, only to the extent to which such adjustment is made. If at all the amount collected was to be construed as a tax, it would be by way of a deeming fiction which is within the exclusive domain and prerogative of Legislature, not one that can be inferred or assumed by the assessee.

The revenue urged that the amount deducted and remitted by a payer is only an approximation of the actual tax payable and not an exact amount. Thus, even if one were to assume that the amount deducted at the source constitutes a tax at the time of deduction, whatever remains after adjustment would not retain the character of a tax, since it is, admittedly, in excess of the tax liability.

The single-judge bench of Justice Anita Sumanth held that once any deduction made towards anticipated tax liability would assume the character of tax and will not change or fluctuate depending on whether it is held as credit or whether it is an adjustment against tax liability. To attribute such fluctuating character to an amount would distort the scheme of taxation and cause many difficulties in the interpretation of the various ancillary provisions.

“The argument that at the time of deduction, the amount (for want of a better word) is a ‘deposit’, when adjusted, it assumes the nature of ‘tax’, when carried forward, it bears the character of ‘credit’ and when refunded, it bears the character of an ‘amount’ would result in a distorted and imbalanced interpretation of the provisions of the Act and scheme set out thereunder,” the court said.

The court concluded that as per the language of Section 20 of the TNVAT Act dealing with the assessment of tax, as per which, tax under that Act was to be assessed, levied, or collected in the manner prescribed, bringing within the ambit of assessment, collection by way of deduction under Section 13 of that Act.

“The impugned orders are set aside, and the petitioners held to be entitled to transition TDS under the TNVAT Act in terms of Section 140 of the TNGST 2017,” the court while allowing the petition said.

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GST: ITC to be availed based on details available in FORM GSTR-2B, clarifies CBIC

The Central Board of Indirect Taxes and Customs (CBIC), via its Twitter, handle clarified that Input Tax Credit ( ITC ) can be availed based on details available in FORM GSTR-2B.

The department was responding to an inquiry from one Mr. Rahul Modi, who asked whether the Goods and Service Tax Network (GSTN), whether ITC needs to be claimed as per 2A or 2B.

“Many clients are filing their GSTR 1 after 12th of the months which gets reflected in 2A but not in 2B which shows difference in ITC with auto populated data,” he added.

The GSTN responded that it was a policy-related issue and has been forwarded to the Government.

 “Input tax credit is required to be availed based on details available in FORM GSTR-2B, which is a static ITC statement generated for each month,” the Board tweeted.

12% GST applicable on Printing of Content on the PVC Materials, Supply of Printed Trade Advertising Material: AAAR [Read Order]

The Tamil Nadu Appellate Authority of Advance Ruling (AAAR) while upholding the AAR’s ruling held that 12% GST applicable on Printing of content on the PVC materialS, supply of printed trade advertising material.

The applicant, M/s Macro Media Digital Imaging Private Limited is engaged in the printing of billboards, Building Wraps, Fleet Graphics, Window Graphics, Trade Show Graphics, Office Branding; In-store Branding; Banners; Free Standing Display Units and Signage Graphics, which are referred to as trade advertisement material.

The applicant has sought Advance Ruling on various issues that whether the transaction of printing of content provided by the customer, on polyvinyl chloride banners and supply of such printed trade advertisement material is the supply of goods.

The other issue raised by the applicant was that what is the classification of such trade advertisement material if the transaction is a supply of goods.

Also, the advance ruling was sought on the question of what is the classification and applicable rate of Central Goods and Services Tax on the supply of such trade advertisement material if the transaction is that of supply of services.

The AAR ruled that the primary part is the printed matter on Vinyl (Self Adhesive) when they serve as advertisement materials, the adhesive part is incidental to the primary use of the said goods and therefore in this case the outputs are classifiable under HSN 4911 as ‘Trade Advertisements’.

It was further held that the goods on which the applicant provides the printing activities ‘Trade advertisements’ are classifiable under Chapter 49 attracting GST at the rate of 12%.

While upholding the AAR’s ruling, the coram of M.A.Siddique and G.V.Krishna Rao observed that the activity of Printing of the content is the principal supply during which the property held by the appellant in the media of such print gets transferred to their client incidentally. The AAAR disagreed with the contention of the appellant that the supply of Trade advertisement material is the principal supply and therefore, even if the supply is considered as a composite supply, the Principal supply’ is ‘supply of goods, i.e., Trade advertising material and did not find any reason to deviate from the findings of the Lower Authority in this context.

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CBDT amends Income Tax Rules to set up Taxpayer Data Collection [Read Notification]

The Central Board of Direct Taxes ( CBDT ) amended the Income Tax Rules to set up taxpayer data collection.

The change brought out by the Income Tax (4th Amendment) Rules, 2021, is effective from 12th March, 2021.

The sub-rule 5A inserted by the Income-tax department for the purposes of pre-filling the return of income, a statement of a financial transaction relating to capital gains on transfer of listed securities or units of mutual funds, dividend income, and interest income.

The idea is to get information about large transactions by the taxpayer that will be used in preparing pre-filled income tax returns, an initiative the government is betting on to improve tax compliance and convenience of filing Income Tax Returns.

The banks, stock exchanges, and companies will have to share data on large investor transactions with the Income Tax Department as frequently as sought by a designated official, according to rule change notified by the Income Tax Department. Presently, these entities were only mandated to give a statement of financial transactions by their clients on or before 31 of May following the end of the financial year in March.

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Interest not Leviable if TDS is paid before Completion of Proceedings: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Cuttack Bench ruled that no interest is leviable if TDS is timely deducted and paid to the Government exchequer.

The assessee, Srabani Constructions Pvt Ltd. was engaged in the real estate business and had paid a sum of Rs.41,84,879 to contractors on which TDS along with interest was deposited with the Government. In support of the deposit, a challan was also furnished before the authorities below. The TDS amount was deposited much before the completion of the assessment. When the assessee has already deposited the TDS amount, the AO is not justified in making the entire amount as an addition and CIT(A) is not justified in confirming the same.

The assessee urged that the TDS amount was not deposited to the Government due to financial stringency and later on deposited before the completion of the assessment.

The assessee submitted that the assessee has deposited Rs.73,437/- i.e. TDS under section 194C of Rs.62,230 and interest of Rs.11,201 against payment of Rs.41,84,879.

On the other hand, the department submitted that when the assessee had not deducted the TDS under section 194C of the Act on the payments to the contractors of Rs.41,84,879, the AO had no option but to disallow the entire amount. The receipt of payment was not furnished before the AO and CIT(A). He, therefore, supported the orders of lower authorities.

Section 194C of the Income Tax Act provides that any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct tax at source. In this case, the assessee could not deposit the TDS within the stipulated period as specified in the Act and, therefore, the AO made disallowance by invoking the provisions of section 40(a)(ia) of the Act.

The coram of Chandra Mohan Garg observed that the assessee has already deposited the TDS alongwith interest before completion of assessment.

The ITAT noted that a person is liable to pay interest under section 201(1A) for failure to deduct tax at source or delay in payment of tax deducted at source and interest under section 206C(7) is levied for failure to collect tax at source or delay in payment of tax collected at source. However, the ITAT held that in this case, the assessee has already deposited the TDS along with interest to the Government exchequer, as is evident from the challan, placed before the Tribunal.

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Employee’s Contribution to PF/EPF paid beyond Due Date cannot be disallowed: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Chennai Bench ruled that the assessing officer erred in confirming disallowances towards employees’ contribution to PF and ESI.

The assessee company, M/s. Doosan Power Systems India Pvt. Ltd. incorporated in the year 2006 is a wholly-owned subsidiary of DHICL. It is engaged in the business of providing engineering design and related services to its overseas group companies. The assessee has been established as a Software Technology Park (STP) in India. Under the project segment, the company is engaged in the business of building, installation, and maintenance engineering plants with a specialization in thermal and coal power plants. Under the Engineering Design Services ( EDS) segment, the company is engaged in rendering engineering design, drawings, and consultancy services in relation to power projects executed by its AEs.

The Assessing Officer has disallowed employees contribution towards PF & ESI on the ground that the same has been remitted beyond the due date specified under respective Acts.

The issue raised was in respect of the employees contribution to PF & ESI.

The assessee at the time of hearing submitted that the issue is squarely covered by the decision of Hon’ble Supreme Court in the case of CIT Vs. Vinay Cements Ltd. and also the decision of Madras High Court in the case of CIT Vs. M/s.Industrial Security Intelligence India Pvt. Ltd.

The department, on the other hand, fairly accepted that the issue is covered in favour of the assessee by the decision of Hon’ble Supreme Court. Further, as a matter of fact, she has strongly supported the order of the Assessing Officer.

The coram of V. Durga Rao and G.Manjunatha held that employees contribution to PF and ESI is deductible, even if such payment is remitted beyond due date specified under respective Acts, but made on or before due date of furnishing return of income filed under section 139(1) of the Act. Therefore, the ITAT held that Assessing Officer as well as DRP erred in confirming disallowances towards employees contribution to PF & ESI. Hence, the tribunal directed the Assessing Officer to delete addition made towards disallowance of employees contribution to PF and ESI.

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Karnataka High Court issues instructions to Investigating Officers during Search of Smartphones, Laptops, Electronic Gadgets, Email Accounts [Read Judgment]

The Karnataka High Court issued the instructions to Investigating Officers during Search of Smartphones, Laptops, Electronic Gadgets, Email Accounts, etc.

The Petitioner, Mr. Virendra Khanna is an IT Engineer, having studied in M/s RV College of Engineering, Bangalore. He was selected as Software Engineer, during the process of on-campus recruitment by Accenture, IT company, Bangalore, where he worked for one year and thereafter resigned to do his self avocation of organizing events and parties in 5-star hotels and other events by obtaining license and permission from the police department.

The petitioner sought the direction of appropriate nature in quashing the order directing the Petitioner to co-operate for unlocking the mobile phone.

A single bench of Justice Suraj Govindaraj said that it would be in the interest of all the stakeholders that detailed guidelines are prepared by the police department in relation to the same. Pending such formulation, it would be required that the following minimum guidelines are implemented.

In the case of a personal computer or a laptop the court issued various directions.

When carrying out a search of the premises, as regards any electronic equipment, Smartphone, or an e-mail account, the search team will be accompanied by a qualified Forensic Examiner.

“When carrying out a search of the premises, the investigating officer should not use the computer or attempt to search a computer for evidence. The usage of the computer and/or search should be conducted by a properly authorized and qualified person, like a properly qualified forensic examiner,” the court said.

At the time of the search, the place where the computer is stored or kept is to be photographed in such a manner that all the connections of wires including power, network, etc., are captured in such photograph/s.

The front and back of the computer and/or the laptop while connected to all the peripherals to be taken.

A diagram should be prepared to show the manner in which the computer and/or the laptop is connected.

If the computer or laptop is in the power-off mode, the same should not be powered on.

If the computer is powered on and the screen is blank, the mouse could be moved and as and when the image appears on the screen, the photograph of the screen to be taken.

If the computer is powered on, the investigating officer should not power off the computer. As far as possible, the investigating officer to secure the services of a computer forensic examiner to download the data available in the volatile memory i.e., RAM since the said data would be lost on the powering down of the computer or laptop.

If the computer is switched on and connected to a network, the investigating officer to secure the services of a forensic examiner to capture the volatile network data like IP address, actual network connections, network logs, etc.,

The MAC address also to be identified and secured.

In the unlikely event of the Forensic examiner not being available, then unplug the computer, pack the computer and the wires in separate faraday covers after labeling them.

In case of a laptop if the removal of the power cord does not shut down the laptop to locate and remove the battery.

If the laptop battery cannot be removed, then shut down the laptop and pack it in a faraday bag so as to block any communication to the said laptop since most of the laptops nowadays have wireless communication enabled even when the laptop is in the stand by mode.

Seizure in case of networked devices to ascertain as to whether the said equipment is connected to any remote storage devices or shared network drives, if so to seize the remote storage devices as also the shared network devices.

“To seize the wireless access points, routers, modems, and any equipment connected to such access points routers, modems which may sometimes be hidden,” the court said.

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ITAT further extends stay of collection of outstanding Tax demand against Google India for a period of 6 months [Read Order]

The Income Tax Appellate Tribunal (ITAT), Bangalore Bench allowed the further extension of stay of collection of outstanding tax demand to the tune of Rs.1260.56 Crores against Google India for a period of 6 months.

Originally the stay was granted by the Tribunal for a period of six months. As per the original stay order of the Tribunal, the assessee was directed to pay Rs.15 crore towards the outstanding tax demand within a period of one month from the date of receipt of the order.

The assessee, Google India had complied with the conditions mentioned by the Tribunal for the grant of stay. Later, the stay against recovery of outstanding tax arrears was extended.

The assessee submitted that appeal of the applicant was adjourned to January 5, 2021, and further to February 9, 2021, at the behest of the Bench to await the outcome of appeals pending before the Hon’ble High Court of Karnataka in the Applicant’s own case for the preceding years, involving identical issues.

The assessee urged that the non-disposal of appeal is not due to the fault of the assessee and accordingly prayed for an extension of the stay.

The Coram consists of George George K. and B.R. Baskaran extended the stay of collection of outstanding demand for a period of 6 months from the date of the order or till the date of disposal of the appeal, whichever period expires earlier. The ITAT while allowing the stay petition ordered that the assessee shall not seek adjournment on the date of hearing without reasonable cause failing which the present stay order shall be subjected to review by the division bench hearing the appeal.

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