It is mandatory to comply with the tax-related compliance proposed by the government. Such compliance also inculcates adhering to the due dates of GST return filing. Here are the revised due dates of GST return filing forms of GSTR 1, GSTR 3B, GSTR 4, GSTR 5, GSTR 6, GSTR 9, etc.
The last date to file the GSTR-1 form is January 11, 2022, for the taxpayers having an annual aggregate turnover above INR 1.5 crore or the ones who have opted for the monthly return filing. The last date to file the GSTR-1 form is January 13, 2022, for the taxpayers having an annual aggregate turnover up to INR 1.5 crore or the ones who have opted for the quarterly return filing.
The due date for filing Annual Turnover of more than INR 5cr in Previous FY December 2021 and Annual Turnover of up to INR 5 Cr for Monthly Filling of December 2021 is 20 January 2022.
All the non-resident ODIAR services providers should file their monthly return GSTR-5A on or before the given due date of 20th January 2022, for the month of December 2021.
All the non-resident persons must file the GSTR-5 alongside the payment of GST on or before the given due date of 20th January 2022 for December 2021.
Every Input Service Distributor (ISD) must file GSTR-6 on or before the given due date of 13th January for the period December 2021.
The due date for filing GSTR 7 for the period December 2021 is 10th January.
The due date for furnishing GSTR 8 for the period December 2021 for registered e-commerce taxpayers in India who are liable to pay TCS should be deducted on or before deducted on or before 10th January.
GSTR 9 is an annual return form for the regular taxpayer. The return filing for FY 2020-21 should be submitted within the given date of February 28th, 2022.
GSTR 9C is an annual audit return form for the reconciliation statement. The return filing for FY 2020-21 should be submitted within the given date of 28th February, 2022.
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The Institute of Chartered Accountants of India ( ICAI ) has reportedly asked the govt to bring back audit and certification provisions relating to GST annual returns.
The Institute said that doing away with audit and certification provisions would disrupt compliance.
“Doing away with the audit will lead to large-scale disruption of compliance resulting in demand notices and the taxpayers will be burdened with tax, interest, and penalties that could have been avoided had there been a system of audit to identify the lapses in time. Litigation would also increase due to errors that would be left unresolved until the departmental audit is conducted,” ICAI said.
ICAI suggested that amendments made to the Central GST Act through the Finance Act last year should be withdrawn and the requirement of getting annual accounts audited and reconciliation statements certified by a chartered accountant be reinstated in law because a GST audit by a chartered accountant ensures taxpayer compliance and helps in plugging revenue leakages.
The revenue is recognized differently in accounting and GST law. While financial statements are prepared on an ‘accrual system’, GST follows a vastly different ‘time of supply’ based system of tax payment. Even the financial statements are prepared differently on the basis of applicable standards depending upon the nature of the entity.
“Thus, it is essential that the reconciliation statement be certified by a chartered accountant who is proficient in both accounting aspects as well as GST law,” ICAI said.
This self-certified statement is for reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement. Self-certification puts the responsibility on taxpayers to furnish true and accurate details in their annual returns. The idea was to encourage voluntary compliance and to improve the ease of doing business. The change is applicable for Financial Year 2021 and beyond.
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The Ahmedabad Bench of Customs, Excise and Service Taxes Appellate Tribunal (CESTAT) ruled that the construction services used for setting up of Effluent Treatment Plant are eligible for Cenvat credit.
Mr. Vivek Bapat, Counsel appearing on behalf of the appellant, Adroit Pharmachem Private Limited submitted that the construction service received by the appellant is for installation and erection of Effluent Treatment Plant which is nothing but covered under modernization of existing factory. Therefore, the service is covered in the inclusion clause of definition of ‘Input Service’ provided in Rule 2(l) of Cenvat Credit Rules, 2004.
On the other hand the Revenue contended that after April 1, 2011, construction service was excluded from the definition of ‘Input Service’ therefore, the appellant is not entitled for Cenvat credit.
The coram of Judicial Member, Ramesh Nair noted that the amended definition of ‘Input Service’ from 01.04.2011 was considered and it was viewed that though the construction service/ works contract service were excluded but it was interpreted that the said service related to only new construction or setting up of a new factory. But since modernization, renovation or repair and maintenance, even after exclusion category, continue to remain in the inclusion clause of definition, credit cannot be denied.
“I find that though construction service was excluded but since modernization, renovation and repair and maintenance still continue to exist in the inclusion clause of definition, credit shall be allowed,” the CESTAT added.
“Moreover, the show cause notice has not made any charge related to the exclusion category of ‘Input Service’, it only deals with the main clause and inclusion clause of definition. Therefore, the adjudication order deciding the matter on the basis of exclusion category is beyond the scope of show cause notice,” the CESTAT while setting aside the impugned order said.
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The Union Finance Minister Nirmala Sitharaman will chair the 46th meeting of the Goods and Service Tax (GST) Council in New Delhi today.
The “physical” meeting, which is scheduled to be held from 11 am at Vigyan Bhawan, will be attended by Minister of State for Finance Pankaj Chaudhary, Dr. Bhagwat Kishanrao Karad, and Finance Ministers of states and union territories (UTs).
The panel has reviewed items under an inverted duty structure to help minimise refund payout. Besides, the Fitment committee, comprising tax officers from states and the Centre, has made many “sweeping” recommendations to the GoM regarding slab and rate changes and taking items out of the exemption list.
On Thursday, the Ministry of Finance tweeted, “FM Smt @nsitharaman will chair the 46th meeting of the GST Council in New Delhi, tomorrow. The meeting will be attended by MoS for Finance @mppchaudharyand @DrBhagwatKarad, besides Finance Ministers of States and UTs and Senior officers from Union Government and States.”
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The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the deadline of GST Annual Returns ( GSTR-9 and GSTR-9C) for the financial year 2020-21 to February 28th, 2021.
In view of the difficulties expressed by the taxpayers in meeting this time limit, the Government has decided to further extend the due date for furnishing GSTR-9 and GSTR-9C for the financial year 2019-20 to 31.03.2021 with the approval of the Election Commission of India.
GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant financial year under different tax heads i.e. CGST, SGST & IGST, and HSN codes. It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in the extensive reconciliation of data for 100% transparent disclosures.
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The Institute of Chartered Accountants of India (ICAI) has announced the International Conference for CA Students on 29th and 30th January 2022 at Biswa Bangla Auditorium, Kolkata.
On 29th January 2022 there will be an Inaugural Session which will include Address by Chief Guest, Guest of Honour, ICAI Vice President, and President moving further there will be knowledge Session: I which will include AI, Machine Learning & Deep Learning – the Connect, Trends in AI in Contemporary Industry and corporate sector, Process Digitization & Digital Currency – the way forward, Artificial Intelligence and future of Accounting Profession. The knowledge Session: II will commence after the lunch break which will focus on Startups in India, Ease of Doing Business, and Ease of living to promote private investments, Digital opportunity, and Digital Ecosystem, and Achieving 5 Trillion Economies via Net Zero Carbon emission. In knowledge Session: III shall include Black Hat vs White Hat (Ethical) Hackers, Digital Forensics and Cyber Crime, New-age Forensic Accounting Standards of ICAI – a pathbreaker, and Forensic Accounting- The Profession and The Industry.
On 30th January 2022 there will be knowledge Session: IV which will include Accounting & Financial Reporting aspects in the E-Commerce sector, Facilitation of Taxpayers as well as Taxation system, Dynamic Power of Auditing & inherent regulatory challenges, and Walking a Different path – Alternative career for CAs. Further, knowledge Session: V will comprise of GST – Good & Simple Tax- bane or boon? Format of GST- Suitable to India? E-Commerce and GST: Issues and way forward and Role of CAs in Litigation support & Dispute resolution in GST domain. The knowledge Session: VI will commence after the lunch break which shall comprise of Emerging Global Career options for Next-Gen CAs, ICAI – Facilitator of Global CAs, through international outreach, Digitization- Breaking the Barriers, and Indian MSMEs: Contributing to growth engine of Global Economy.
Paper Presenters are invited to contribute papers for presentation (1500 to 2000 words) for sub-topics in Knowledge Sessions (Technical sessions) and submit for approval a soft copy of the paper along with a short video of 8-10 minutes (based on the topic/any other video of self) at intcon2022@icai.in by 10th January 2022.
Students should also send by mail his/her Photograph (saved in your Name, Registration No.), Registration Number, Last Exam passed, Complete Postal Address, Mobile No., Alternate Number (if any) along with Email id to respond. Students should also share the details of the Paper presented so far or any other experience along with the proof of the same and if the video is available. In case of facing difficulties in sending through email, they can also use WeTransfer.
The International Conference of Ca students is a very prestigious event for the institute and is organized once every year. The Conference aims to provide a common platform wherein students of the chartered accountancy profession from across the world join together and share their knowledge on contemporary topics. The event is an excellent opportunity for students to share and learn about the diverse socio-cultural environment prevailing in different parts of the world. Students from international Bodies will also participate in the Conference. The student delegates from international accounting Bodies are also welcomed to present Papers virtually on technical Sessions.
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The Deloitte has been invited applications from qualified Chartered Accountants for the post of Manager – Internal Audit.
Internal Audit (IA) Manager
Deloitte’s Internal Audit (IA) services help boards and senior executives better manage enterprise risks by helping organizations protect shareholder value and enhance the effectiveness, quality, and value received from IA. Our broad understanding of risks and areas of operational improvement—particularly the nuances of specific industry sectors and markets—can help IA functions improve their performance and operating efficiency and bring value to their organizations.
Work you will do
As an IA Manager, you are expected to demonstrate integrity, values, principles, and work ethic and lead by example, and make a positive contribution. You will:
• Lead and perform business cycle controls and general computer controls review/testing as part of SOX / internal audit/audit support / SSAE 16 engagements
• Lead and perform controls benchmarking to leading internal controls framework to identify gaps and redundant controls
• Lead and cross-team on a variety of consultative internal audit engagement utilizing subject matter specialists, including, but not limited to analytics, forensics, regulatory compliance, cyber, and IT team
• Play a substantive/lead role in internal and external client relationships and communication
• Demonstrate strong people management and networking skills
• Assist in recruitment and retention of professionals
• Participate in team management, business planning, and training efforts
• Demonstrate understanding and application of methodologies for internal audit/audit support /SSAE 16 engagements
• Demonstrate a high level of understanding of internal and external client’s business
• Demonstrate strong knowledge of the industry or functional specialty
• Play substantive/lead role on projects, including project planning, management, managing quality, economics, and billing
• Participate in proposal development efforts
Qualifications Required
• MBA in finance/accounting and/or Certification as CA, CPA, CIA, and/or CISA
• Strong orientation toward internal control risk assessment, operational, financial reporting, controls, and IT auditing
• Experience with SOX, Internal Audit, and SSAE 16
• Advanced understanding of anyone industry—FSI, TMT, Manufacturing, Health Care
• Demonstrate leadership, team management, problem-solving, and strong verbal and written communication skills
• Ability to prioritize tasks, works on multiple assignments, and manage ambiguity
• Ability to work both independently and as part of a team with professionals at all levels
• Willingness to travel within and out of the country on engagements
Experience Required
• 8-10 years of relevant work experience
Preferred
• Big Four experience preferred
• Ability to work in global delivery mechanisms preferred
For more details Click here.
Ten Most Important GST Provisions will be effective from January 2021 on GST payable on Goods or Services Provided by any Club or Association to its Members, GST Provision related to communication of Details of invoice or debit note to the recipient, Scope of Self Assessed Tax, and many more.
The Government had notified the Finance Act 2021 wherein sections 2 to 88 shall come into force on the 1st day of April 2021 and sections 108 to 123 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Here’s the list of Sections notified as with effect from January 1, 2022.
In the Central Goods and Services Tax Act, 2017, section 7 (1)(aa) has been inserted and shall be deemed to have been inserted retrospectively with effect from the 1st day of July 2017.
Section 7 (1)(aa) says that the person (association or club) and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another. Further, the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment, or other valuable consideration.
Judicial Precedent
The Supreme Court of India in the case of State of West Bengal v Calcutta Club Ltd. ruled that services rendered by incorporated clubs to members are exempted from service tax.
The Bench constituting Justice R.F. Nariman, Justice Surya Kant, and Justice V. Ramasubramanian held while referring to the Statement of Objects and Reasons that sub-clause (f) to Article 366 of clause 29-A (which permits the States to impose a tax on the supply of food and drink) does not include ‘goods’ in their entirety. Upholding the position laid in Young Men’s Indian Association it was held that supply of various preparations by each club to its members would not amount to a transfer of property from one to another and hence there would be no sale eligible to tax. The club would only act as an agent for its members even if the club is a distinct legal entity and hence the Doctrine of Mutuality subsists.
The CBIC has inserted Section 16(2)(aa) which lays down the condition for claiming the Input Tax Credit (ITC). It mandates that the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37.
In section 74 of the Central Goods and Services Tax Act, in Explanation 1, in clause (ii), for the words and figures “sections 122, 125, 129 and 130”, the words and figures “sections 122 and 125” shall be substituted.
Where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under section 73 or section 74, the proceedings against all the persons liable to pay penalty under sections 122 and 125 are deemed to be concluded.”
The explanation in Section 75 has been inserted to widen the scope of ‘self-assessed tax’ which shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39. This amendment will result in the initiation of direct recovery proceedings by the department.
In section 83 of the Central Goods and Services Tax Act, for sub-section (1), the following sub-section shall be substituted, namely “Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.”
Before the amendment the provisional attachment can be initiated only during the pendency of proceedings, however, now it can be done after initiation of proceedings under Chapter XII, XIV, or XV.
In section 107 of the Central Goods and Services Tax Act, in sub-section (6), the following proviso shall be inserted, namely, “Provided that no appeal shall be filed against an order under sub-section (3) of section 129 unless a sum equal to twenty-five percent. of the penalty has been paid by the appellant.”
The CBIC has increased the Pre Deposit of Disputed Tax Amount in case of E-way bill violation from 10% to 25%.
The Finance Act 2021 seeks to amend section 129 of the Central Goods and Services Tax Act which provides for the payments to seek release of the conveyance/goods that have been detained on account of E-way bill violations.
Where the owner comes forward, in case of Taxable goods Penalty equal to 200% of the tax payable and for Exempted goods an amount of 2% of the value of goods or Rs. 25,000/-; whichever is less.
Where the owner does not come forward, in case of taxable goods: Penalty equal to 50% of the value of goods or 200% of the tax payable; whichever is higher, and for exempted goods, an amount of 5% of the value of goods or Rs. 25,000/-; whichever is less.
In section 130 of the Central Goods and Services Tax Act, (a) in sub-section (1), for the words “Notwithstanding anything contained in this Act, if ”, the word “Where” shall be substituted; (b) in sub-section (2), in the second proviso, for the words, brackets and figures “amount of penalty leviable under sub-section (1) of section 129”, the words “penalty equal to hundred per cent. of the tax payable on such goods” shall be substituted; (c) subsection (3) shall be omitted.
Section 130 dealing with the confiscation of goods/ conveyance shall be completely de-linked from the provisions related to detention/seizure contained under section 129. Hence confiscation can be made only if the ingredients specified under section 130(1) are satisfied independent of Section 129(1).
For section 151 of the Central Goods and Services Tax Act, the following section shall be substituted, namely “151. The Commissioner or an officer authorised by him may, by an order, direct any person to furnish information relating to any matter dealt with in connection with this Act, within such time, in such form, and in such manner, as may be specified therein.”.
In section 152 of the Central Goods and Services Tax Act, (a) in sub-section (1), (i) the words “of any individual return or part thereof” shall be omitted; (ii) after the words “any proceedings under this Act”, the words “without giving an opportunity of being heard to the person concerned” shall be inserted; (b) sub-section (2) shall be omitted.
In section 168 of the Central Goods and Services Tax Act, in sub-section (2), (i) for the words, brackets, and figures “sub-section (1) of section 44”, the word and figures “section 44” shall be substituted; (ii) the words, brackets and figures “sub-section (1) of section 151,” shall be omitted.
In Schedule II of the Central Goods and Services Tax Act, paragraph 7 shall be omitted and shall be deemed to have been omitted with effect from the 1st day of July 2017.
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The Institute of Company Secretaries of India (ICSI) has issued an E-Admit Card for the CS Foundation Programme.
The E-Admit Cards of eligible students for appearing in the December 2021 Session of CS Foundation Programme Examination scheduled to be held during 3rd & 4th January 2022 via Remote Proctoring Mode have been uploaded on the website of the Institute.
It is noteworthy that the Admit Cards will not be sent in physical form (by post).
You can download the Admit Card immediately to avoid any last-minute inconvenience. After taking the printout of the Admit Card, students are advised to carefully verify all the particulars mentioned therein i.e. Name, Photograph, Signature, Registration Number, Dates and Timings of Examination, Details of Paper-wise Exemption granted, Instructions to Examinees, etc.
For More details Click here.
This weekly round-up analytically summarizes the key stories related to the Authority of Income Tax Appellate Tribunal (ITAT) reported at Taxscan.in during the previous week from December 19 to December 26, 2021.
DCIT Vs. M/s. Gorakhpur Infrastructure Co. Ltd.
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) deleted the disallowance made on account of depreciation on the right to collect annuity on toll roads. The coram Judicial Member, Amarjit Singh, and Accountant Member, M. Balaganesh held that the assessee was awarded the work of constructing a part of the National Highway no.5, under BOT basis. Therefore, the entire investment/finance for developing the infrastructure facility was borne by the assessee. By making such an investment what the assessee received in return was a right to collect annuity over the period of concession. Thus, the investment made by the assessee for acquiring such right certainly is an intangible asset coming within the purview of section 32(1)(ii) of the Act. Therefore, the assessee would be eligible to claim depreciation.
Green Orchard Farm Houses Vs. DCIT
The Income Tax Appellate Tribunal (ITAT), Bangalore bench, while deleting an assessment order held that the omission to serve a notice under section 143(2) of the Income Tax Act, 1961 is not a curable defect for the purpose of applying the provisions of section 292BB of the Act.
Moonfrog Labs Pvt. Ltd Vs. ACIT
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that the payments made for advertising through Facebook and other digital advertising companies shall not be subject to TDS under section 195 of the Income Tax Act, 1961 since the same is not in the nature of “royalty” as per the double taxation avoidance agreement (DTAA).
M/s. Infobells Interactive Solutions Vs. DCIT
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) held that the assessee was entitled to the deduction of employees’ contribution of PF, and ESI as the contribution made was prior to the due date of final return.
In a major relief to Senior Advocate Harish Salve, the Delhi Bench of Income Tax Appellate Tribunal (ITAT) allowed the credit of Taxes paid on Overseas Income. “We are of the view that the credit of the taxes paid on such income deserves to be allowed. We, therefore, restore the issue back to the file of AO and direct him to allow the credit of the foreign taxes paid as claimed by the assessee u/s 90 of the Act as per the provision of Act and in accordance with the law. Needless to state that AO shall grant adequate opportunity of hearing to the assessee. Assessee is also directed to promptly furnish all the details called for by the AO,” the tribunal while allowing the appeal said.
In a major relief to Nokia India, the Delhi Bench of Income Tax Appellate Tribunal (ITAT) deleted the disallowance worth Rs. 41.6 Crores. The Coram of Accountant Member, R.K.Panda and Judicial Member, Kul Bharat found that this issue is also squarely covered in favour of the assessee by the decision of the Coordinate Bench of the Tribunal in assessee’s own case vide ITA No.1883/Del/2017 for Assessment Year 2011-12 and also in ITA No. 6501/Del/2017 for Assessment Year 2012-13. Respectfully following the order of the Tribunal for Assessment Year 2011-12 and 2012-13 so deleted the disallowance.
Vinko Auto Industries Vs. DCIT
The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) held that the assessee to claim a deduction of employee’s share of ESI & PF if deposited prior to ITR filing. The coram headed by the Vice President N.K.Saini and Judicial Member, N.K.Choudhary held that there are a plethora of judgments in favour of the Assessee’s contention and of the Revenue. The controversy with regard to divergent views of different High Courts has been settled by the Hon’ble Apex Court in the case of CIT VS. M/s. Vegetables Products Ltd. (88 ITR 192) by laying the dictum that if two reasonable constructions of a taxing provision are possible that construction which favours the Assessee must be adopted.
Paradise Rubber Industries Vs. PCIT The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) held that the revisionary Power of PCIT cannot be invoked as AO had scrupulously discharged the duty.
The CBDT notified the deadline to link your Permanent Account Number with your Aadhaar number. The last date to link Permanent Account Number (PAN) with Aadhaar has been extended to June 30, 2021. As per the reports, the government may take a tough stand against those taxpayers who have not liked their PAN with Aadhaar. Moreover, the report further says that if an employee fails to link PAN with an Aadhaar card by June 30, the company will not credit their salary from the next month.
The Department has made the process of filing income tax returns (ITR) easier for the taxpayers by making available the Pre-filled Income Tax Return for some categories. The option of pre-filled ITR forms is available on the new website. Taxpayers will be able to proactively update their profile to provide certain details of income including salary, house property, business, or profession which will be used in pre-filling their ITR.
The Central Board of Direct Taxes (CBDT) chairman Pramod Chandra Mody said that the Budget provision that makes interest on employee contributions exceeding Rs.2.5 lakh a year to the Employees’ Provident Fund (EPF) taxable will also be applicable to all government employees covered by the General Provident Fund (GPF).
The Central Board of Direct Taxes ( CBDT ) issued the Circular regarding the use of functionality under Section 206AB and 206CCA of the Income Tax Act, 1961. The Finance Act, 2021 inserted two new sections 206AB and 206CCA in the Income Tax Act 1961 which takes effect from 1 day of July 2021. These sections mandate tax deduction (section 206AB) or tax collection (section 206CCA) at higher rate in case of certain non-filers (specified persons) with respect to tax deductions (other than under sections 192, 192A, 194B, 194BB, 194LBC and 194N) and tax collections. The higher rate is twice the prescribed rate or 5%, whichever is higher. A specified person means a person who satisfies both the two conditions.
Section 139 of the Income Tax Act governs the filing of income tax returns by every individual with income above the basic exemption limit. However, Union Budget 2021 in order to provide relief in terms of compliance burden for filing returns, exempted senior citizens above 75 years of age from filing the income tax return, subject to the various conditions.
The government has introduced an LTC/LTA cash voucher scheme to allow employees eligible for LTC/LTA to claim tax-exempt reimbursement of similar amounts subject to certain limits and spending conditions. This has been done as employees are unable to travel due to the coronavirus pandemic.
Interest on employee’s share of contribution to Employees’ Provident Fund (EPF) on or after April 1, 2021, will be taxable at the stage of withdrawal if it exceeds ₹2.5 lakh in any year. This will lead to additional tax liability, especially for High Networth Individuals (HNIs) who make higher contributions, and will also discourage voluntary provident fund (VPF) contributions. This along with taxation of aggregate employer’s contributions in excess of ₹7.5 lakh to EPF, NPS, and superannuation fund and interest thereon introduced last year, may make EPF an even less attractive retirement scheme.
The government has extended the additional tax deduction of ₹1.5 lakh on interest paid on housing loans for the purchase of affordable homes by one more year to March 31, 2022. The additional deduction of Rs1.5 lakh over and above ₹2 lakh was introduced in the 2019 budget. This was allowed for those buying homes for the first time and of up to ₹45 lakh cost.
With effect from 1st April 2021 the Finance Bill, 2021 has inserted the new chapter namely Dispute Resolution Committee. The Central Government has consciously adopted a policy to make the processes under the Act, which require interface with the taxpayer, fully faceless. In this backdrop, new schemes for faceless assessment, for faceless appeal at the level of Commissioner (Appeals), and for the faceless imposition of penalty have already been made operational. Further, the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has empowered the Central Government to introduce similar schemes for other functions being performed by the income-tax authorities.
For opting new tax regime for Individuals and HUFs as per section 115BAC of the Income Tax Act, the taxpayer would require to file Form 10-IE on or before the due date of filing of ITR u/s 139(1) of the Income Tax Act.
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This weekly round-up analytically summarizes the key stories related to the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reported at Taxscan.in during the previous week from December 19 to December 26, 2021.
Arihant Tradelinks India Vs. C.C.E.
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed the Cenvat credit in respect of 2% CVD. The Coram of Judicial Member, Ramesh Nair, and Technical Member, Raju held that the issue involved is purely of interpretation of Cenvat Credit Rules, levy of CVD in terms of Customs Tariff Act. It is also the fact that on an identical issue many cases were made out by the department across the country in respect of different assessees which clearly shows that the issue involved is of interpretation of the law. In this situation, malafide intention cannot be attributed to the appellant. The appellant has been declaring availment of Cenvat credit in respect of 2% CVD and the same were reflected in monthly ER-1 returns. Therefore, there is absolutely no suppression of facts or mis-declaration, etc. on the part of the appellant. Accordingly, the demand for extended periods is not sustainable on the grounds of the time-bar also.
C.C.E. Vs. Reliance Industries
In the major relief to Reliance Industries, the Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that delay in filing the refund claim is merely a procedural lapse and substantial benefit of the exemption notification cannot be denied.
Ambit Concrete Vs. Commissioner
The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that no Excise Duty payable on the supply of concrete mix.
M/s.Circor Flow Technologies Vs. Principal Commissioner of GST
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that if an assessee has to pay service tax even after the introduction of GST, their right to avail ITC cannot be denied.
CGST Commissioner Vs. Asian Hotel
The Kolkata Bench of Customs, Excise, and Service Tax (CESTAT) quashed the Service Tax Penalty as the Department did not bring any material to prove suppression of facts to evade tax.
SRK Manufacturing Vs. Custom Commissioner The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) waived the condition to furnish a Bank Guarantee equivalent to 30% of the value of Crgo Scrap and Empty Cylinder while allowing provisional release.
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This weekly round-up analytically summarizes the key stories related to the Supreme Court and High Court reported at Taxscan.in during the previous week from December 19 to December 26, 2021.
The Supreme Court has dismissed the Public Interest Litigation (PIL) challenging Tax Deducted on Source (TDS) on the interest payable under an award of the Motor Accident Claims Tribunal.
The Chhattisgarh High Court has granted bail to a person accused of Wrongfully availing Input Tax Credit (ITC) without actual supply of goods.
M/s Nagorao Auto Engineering Works Telghani Naka Raipur vs. UOI
The Chhattisgarh High Court directed the GST Authority to Re-open the online portal or accept the manual filing of Form TRAN-1.
The Punjab and Haryana High Court granted the grants bail to persons accused of flouting bogus firms and showing fake billings and transactions to draw GST refunds.
The Delhi Court has granted bail to a person accused of committing fraud, misappropriation of money to the tune of Rs.1800 crores.
The Rajasthan High Court granted bail to a person accused of supplying any goods or services without the issue of any invoice.
PCIT Vs. ETH Ltd In a major relief to ETH Ltd, the Calcutta High Court deleted the disallowance on account of professional and consultancy charges to non-residents. The division bench of Justice T.S.Sivagnanam and Justice Hiranmaya Bhattacharya while rejecting the application held that the “person” mentioned in Section 195 of the Act cannot be expected to do the impossible, namely, to apply the expanded definition of “royalty” inserted by Explanation 4 to Section 9(1)(vi) of the Act for the assessment years in question, at a time when such Explanation was not actually and factually in the statute.
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The Institute of Chartered Accountants of India (ICAI) notified the Schedule for Convocation 2021-22.
The most awaited ICAI Convocation 2021-22 will be held, as per the following schedule, for Members who are enrolled during the period from November 2019 to August 2021 and Rank holders of the CA Final Examination held in July 2021. They will be awarded a Certificate of Membership in this Convocation.
The date of Convocation for Mumbai, Pune, Ahmedabad, Chennai, Hyderabad, Kolkata, Kanpur, Indore, Jaipur and New Delhi is 29th – 30th December 2021, 3rd January,2022, 3rd January,2022, 27th – 28th December, 2021, 4th – 5th January, 2022, 29th – 30th December, 2021, 13th – 14th January, 2022, 17th January, 2022, 24th – 25th January, 2022, and 27th – 28th January, 2022 respectively.
All listed participants will be intimated individually giving details of the venue, timings, etc. by the respective Regional Offices for registration of their participation in the Convocation. Details of the Convocation Programme would be hosted on the ICAI website in due course of time. “Please make necessary travel arrangements, etc., accordingly and for any inquiry, contact concerned Regional Offices/Branches of ICAI,” the Institute instructed.
For the detailed Schedule Click here.
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The Ministry of Corporate Affairs has invited the Public Comments on proposed changes to Corporate Insolvency Resolution and Liquidation Framework under Insolvency and Bankruptcy Code.
Based on the issues raised in the ILC and from various stakeholder consultations, the various changes are proposed to the Code to further its objectives of time bound resolution of stressed assets while maximising its value and balancing the interests of all stakeholders.
It has been proposed that financial creditors as prescribed by the Central Government may be required to submit only IU authenticated records to establish default for the purposes of admission of a Section 7 CIRP application. Where such IU authenticated records are not available, and for all other financial creditors, current options of relying on different documents for establishing default for admission of a Section 7 CIRP application may remain available. This will make the admission process significantly quicker and less cumbersome. Consequently, the AA would only be required to consider IU authenticated records as evidence of default for Section 7 applications filed by such financial creditors as prescribed.
Further, it has been proposed that a clarification by way of an explanation may be added to Section 26 to clarify that proceedings for avoidance of transactions and wrongful trading can continue after the approval of a resolution plan by the AA in CIRP.
“The Code may be amended to provide that the resolution plan should mandatorily specify the manner of undertaking proceedings for avoidance of transactions and wrongful trading if such proceedings are to be continued after approval of the plan. The plan may also be required to specify if the resolution professional would pursue such transactions/ trading or if any other person would do so after the approval of the plan,” the MCA proposed.
The Code should provide a fixed time period for approval or rejection of a resolution plan by the AA. Consequently, the Code is proposed to be amended to provide the AA with 30 days for approving or rejecting a resolution plan under Section 31. Where the resolution plan is not approved or rejected within this time period, the AA shall record reasons in writing for the same.
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The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) waived the condition to furnish Bank Guarantee equivalent to 30% of the value of Crgo Scrap and Empty Cylinder while allowing provisional release.
On receiving intelligence that the importer is indulging in importing old used CRGO sheets/coils and old & used gas cylinders by way of concealment/misdeclaration in the guise of the consignment of Heavy Melting Scrap (HMS) falling under CTH 72044900 at Ludhiana Port, an alert was issued for examination of the consignments in the presence of DRI officers.
The importer, though had declared the goods as “Heavy Melting Scrap ISRI Code 200 to 206”, the goods on examination were found to be “old and used CRGO (secondary Cold Rolled Grain Oriented) Sheets/old and used “empty gas cylinder” and “Table Tennis Rackets”.
According to Revenue, the import of old and used CRGO sheets and old empty gas cylinders (when imported without a license) are prohibited in India in view of the OM dated 9.11.2020 issued vide F.No. 01/89/180/MONI-5852/AM-03/PC 2 (A) PART-III/V of III/E- 2787. Further, as per the extant Steel and Steel Products (Quality Control) order issued by the Ministry of Steel under Bureau of India Standards Act, 2016, import of Cold Rolled Grain Oriented (CRGO) Electrical Steel is permitted inter alia, subject to the conditions that the goods shall bear Standard Mark under a license from the BIS and meet the quality parameters / technical requirements of Indian Standard. As per CBIC’s instruction dated 9.7.2014 issued under F.No. 450/71/2014-Cus IV, it is clarified that import of second/defective/old and used CRGO sheets, strips and coal is not permitted. The Technical Division, Ministry of Steel has issued an OM dated 13.10.2020 with regard to importing substandard and used oily CRGO laminations into the country.
The Coram of Judicial Member, Sulekha Beevi C.S. and Technical Member, P.V.Subbarao held that the importer having paid duty on the declared value and having accepted to pay the entire differential duty, we are of the considered opinion that in the interest of justice, the condition to furnish Bank Guarantee equivalent to 30% of the value of the goods requires to be waived. The impugned order is modified to the limited extent of setting aside the direction to furnish a Bank Guarantee of 30% equivalent to the value of the goods.
Subscribe Taxscan Premium to view the JudgmentThe Kerala High Court while granting the installment facility to pay Customs Duty held that the case cannot be reopened as a challenge to show cause notice was time-barred.
The petitioner is a hundred percent export unit. The unit was given permission for exporting buffalo meat and tapioca to gulf countries. According to the appellant, he could be banned from the export of buffalo meat. The appellant was also granted a private bonded warehouse license for processing the export of buffalo meat and tapioca without payment of duty based on the terms of the letter of permission. The appellant had imported capital goods that were eligible for exemption from customs duty due to the export commitment of the appellant. Since the appellant did not export and failed to fulfill the export obligation, the condition of import stood violated and a show-cause notice was issued to the appellant asking him why customs duty should not be imposed on him.
The appellant filed an appeal before the appellate authority which was rejected on the ground of delay and an appeal challenging the said order of the first appellate authority was also filed before the CESTAT. The said appeal was also dismissed. Challenges against the said order of the CESTAT before this court as well as the Apex Court were also dismissed. Thereafter, the first respondent has issued a demand notice to remit an amount of Rs.15,19,996/- along with appropriate interest. The said notice of demand was challenged in the Writ Petition.
The division bench of Justice S.V.Bhati and Justice Basant Balaji held that the appellate authority did not go into the merits of the case and dismissed the same on the ground of limitation. Since the said order has attained finality before the apex court, the appellant cannot reopen the merits of the case again before this court. Though the learned Single Judge has not entertained the Writ Petition, he had granted an installment facility to the appellant to discharge the liability in 12 monthly installments. The counsel for the appellant was not in a position to submit before this court whether the appellant has availed of the installment facility granted. “We are of the considered opinion that the learned Judge has rightly dismissed the Writ Petition without going into the merits as the same has become final at the hands of the appellate authority confirmed by the order of the apex court. Even though the learned Single Judge has not entertained the Writ Petition, the appellant was given an installment facility to wipe off the liability. We find that no interference is warranted to the judgment of the learned Single Judge and, hence the Writ Appeal is accordingly dismissed,” the court said.
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Subscribe Taxscan Premium to view the JudgmentThe Central Board of Direct Taxes (CBDT) Income Tax Department had extended the deadline for filing of Income Tax Return from September 30, 2021, to December 31, 2021, on September 9, 2021, due to the difficulties faced by the taxpayers and other stakeholders in the filing of income tax returns on the government’s new tax portal, which was facing technical issues.
Here is the list of technical glitches faced by the taxpayers and other stakeholders:
The taxpayers are facing problems such as people filing multiple ITRs u/s 139(1) for the same PAN, Incorrect upload of JSON files of one PAN in some other PANs, unable to download Income Tax acknowledgments and/or ITR forms after filing, validations of ITR Forms, Frequent changes in ITD utilities, Login Issues, time consumed in processing and generating, even after processing of ITR on a real-time basis, Income Tax Refund payable is shown as awaited, Mismatch in PAN Data when there is no mismatch, PAN Account locking even when PAN Number is active, Filing of Refund Reissue Requests, DSC validation issues, Bank account validation issues, New PAN registrations issues, Data saving issues on ITD Portal, etc.
There was an existence some issues from the very first days, which still continues namely problems related to Rectification applications, filing of ITR pursual to Notice u/s 139(9), incorrect processing of intimations u/s 143(1), updating of UDIN to map with documents filed on ITD website and so on.
It is noteworthy that ITD utilities provided for use in the public domain have very lengthy and time-consuming rules and issues plus they are too lengthy and too time-consuming, consequently, it takes substantial time to compile details and complete the compliances.
The New Tax Regime Forms like Form 10IC, Form 10ID, Form 10IE, etc. are still not smooth and effective to be filed on the Portal. Form 10E is permitted to report Arrears of Salaries prior to FY 2000-01 which is required to be corrected.
Many of the forms are enabled for filing electronically only and such access is not provided to the software vendors to customize filing through their vendors which are not desirable.
The Reconciliation of AIS/TIS date with ITR as well as AFS is time-consuming and it is notified to us that many assessees are receiving notices due to variations in ITR filed vis-à-vis data reported in AIS. However, it was clarified in the public domain that no notices would be issued due to such mismatches.
The Facility to file Transfer Pricing Audit Report in Form 3CEB under the Income Tax Act 1961 is yet to be enabled. We are sure there are many more Forms that are yet to be enabled (like slump sale forms Form 3CEA etc.)
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The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the show-cause notice issued by the Additional Director General, DRI as he is not the proper officer to recover Customs Duty.
The appellant, M/s. Ajanta Overseas assailed the order dated 03.12.2020 passed by the Commissioner of Customs (Appeals), by which the appeal filed by the appellant has been dismissed but the appeal filed by the department has been partially allowed. It needs to be noted that the demand raised in the show cause notice dated 29.03.2018 issued by the Additional Director General, Directorate of Revenue and Intelligence, New Delhi, under sections 28 of the Customs Act 19623 was confirmed by the Additional Commissioner by order dated 18.03.2019.
It has been submitted by Ms. Vibha Narang, learned counsel appearing for the appellant that the Additional Director General, DRI did not have the jurisdiction to issue the show cause notice as he was not the proper officer under section 28 of the Customs Act to issue the notice and in support of this contention learned counsel placed reliance upon decisions of the Supreme Court in Canon India Pvt. Ltd. vs. Commissioner of Customs and Commissioner of Customs, Kandla vs. M/s. Agarwal Metals and Alloys. The coram headed by the President, Justice Dilip Gupta, and Technical Member, P.V.Subba Rao held that The show-cause notice dated 29.03.2018 issued by the Additional Director General, DRI is, therefore, without jurisdiction as the said officer was not the proper officer and, therefore all proceedings undertaken by the Department on this show cause notice is, therefore, without jurisdiction. The order dated 03.12.2020 passed by the Commissioner of Customs (Appeals), therefore, cannot be sustained.
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This weekly round-up analytically summarizes the key stories related to the Supreme Court and High Court reported at Taxscan during the previous week from December 6 to December 11, 2021.
Toyota Kirloskar Motor Pvt Ltd. Vs. Commissioner of Central Tax
In a setback to Toyota Kirloskar Motor Pvt Ltd, the Supreme Court denied the Input Tax Credit (ITC) for availing outdoor catering services to employees. The division bench of Justice M.R.Shah and Justice B.V.Nagarathna held that The statutory provision – Rule 2(1) defining “Input Service” post 01.04.2011 is very clear and the out-door catering services when such services are used primarily for personal use or consumption of any employee is held to be excluded from the definition of “Input Service”. In that view of the matter, it cannot be said that the High Court has committed any error in denying the input tax credit and holding that such a service is excluded from input service.
The Supreme Court upheld the measures adopted by RBI to implement a ban imposed by the Government on the export of PPE kits in view of the COVID-19 pandemic. The three-judge bench of Justice Dr. Dhananjaya Y Chandrachud, Justice Vikram Nath and Justice B V Nagarathna the RBI has demonstrated a rational nexus in the prohibition of MTTs in respect of PPE products and the public health of Indian citizens. The critical links between FTP and MTTs have been established by the respondents. Facilitating MTTs in PPE products between two distinct nations may prima facie appear to have no bearing on the availability of domestic stocks. However, the RBI has carefully established the connection between the use of Indian foreign exchange reserves, MTTs, and the availability of domestic stocks. As a developing country with a sizable population, RBI’s policy to align MTT permissibility with the FTP restrictions on import and export of PPE products cannot be questioned.
The Supreme Court issues notice to Govt. on a plea challenging 18% GST on services by way of grant of mineral exploration and mining rights.
GST Commissioner Vs. M/s Citi Bank
The Supreme Court delivered the split Verdict on chargeability of Service Tax on Card-Issuing Bank For Interchange Fees.
Prakash Raghunath Autade Vs. UOI
The Bombay High Court felt that no right to cross-examine the witness before the reply to Show Cause Notice is filed and before adjudication commences. The division bench of Chief Justice Deepankar Dutta and Justice M.S.Karnik held that it is only after the statements of witnesses are recorded by the relevant authority in course of adjudication of proceedings and such evidence is regarded as relevant that the noticee has the right to claim that he be extended the opportunity to cross-examine such witnesses so as to extend to him fair, reasonable and adequate opportunity of defence.
Tata Steels Vs. State of West Bengal
In a major relief to Tata Steels, the Calcutta High Court ruled that state not to deprive legitimate claim to purchase High-Speed Diesel (HSD) oil at concessional rate under Central Sales Tax Act. The single bench of Justice Md. Nizamuddin held that in the instant cases neither petitioners nor IOCL is guilty of any latches and when there is no specific prohibition under the statute against such refund petitioners should not get entangled in the cobweb of procedures and the State should do substantial justice by refunding the amount of tax in question collected by it in excess of statutory concessional rate of tax during the relevant period either to the selling oil dealers/IOCL or to the purchasing oil dealers/petitioners and State should not deprive the legitimate claim of the petitioners to purchase the HSD oil at a concessional rate which is their statutory right under Central Sales Tax Act, 1956, in course of inter-State sale since they have fulfilled the conditions under Section 8 (1) read with 8 (3) and 8 (4) of the Central Sales Tax Act, 1956 by doing what fairness and justice demand of a State and which is the motto of every civilised society.
Laxmi Organic Industries Vs. UOI
The Bombay High Court held that the refund application filed Manually is not supposed to be filed in FORM GST RFD 01 on GST portal.
Madhav Copper Ltd. Vs. State of Gujarat
The Gujarat High Court ordered further investigation in respect of the provisional release of goods as there is an alleged wrongful availment of Input Tax Credit (ITC).
Schneider Electric India Pvt.Limited Vs. ST
The Madras High Court held that the CST turnover cannot be included in VAT turnover for determining tax liability or determining the due date for filing Returns.
M/s Pioneer Carbide Pvt. Ltd. Vs. UOI
The Meghalaya High Court directed the assessee to make a specific request to the GST Commissioner to rectify mistakes made electronically in GST TRAN-1.
M/s Nagorao Auto Engineering Works Vs. UOI
The Chhattisgarh High Court directed the GST Authority to Re-Open Online Portal to enable filing of Form TRAN-1 Electronically or Accept Manually.
The Orissa High Court directed the Goods and Service Tax Network (GSTN) to either modify the Goods and Service Tax (GST) portal to facilitate the filing of TRAN-1 to claim the ITC or accept returns manually against the old registration certificate.
M/s Radhemani And Sons Vs. Additional Commissioner CGST
The Chhattisgarh High Court remanded the matter to Authority for GST Refund as a supply made as inter-State was subsequently held as intra-State.
Advent India PE Advisors Private Limited Vs. UOI
The Bombay High Court directed the GST Authority to unblock ITC of Rs. 1.17 Crores availed in its electronic credit ledger after one year of restriction.
M/s.S.D.Arun Associates Vs. Designated Committee
The Madras High Court directed the GST Authority to issue a discharge certificate in form SVLDRS-4 either manually or electronically.
M/s JSVM Plywood Industries Vs. UOI
The Gauhati High Court has stayed the reassessment notice for not following the new procedure for issuance of notice where income has escaped Assessment after 31 March 2021.
M/s. Keshab Automobiles Vs. State of Orissa
The Calcutta High Court held that if self-assessment for tax periods prior to 1st October 2015 is not accepted by the Department, then such assessment cannot be sought to be re-opened.
In a partial relief to Volvo India Pvt. Ltd., the Karnataka High Court remand the matter back to the Authority as the disallowance of deduction expenditure not appreciated by the Income Tax Appellate Tribunal (ITAT).
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The Enforcement Directorate (ED) has arrested the CA for issuing Form 15 CB to some entities allegedly involved in Money Laundering.
The arrest of a Chartered Accountant for issuing Form 15 CB for some entities which are not even main accused is completely unwarranted.
The Advocate Abhishek Garg and Advocate Apurva M.Gokhle contended that while issuing Form 15CB a chartered accountant is not required to step into the shoes of the investigation agency to ascertain if the same is for any money laundering activities, for he only ascertains the tax to be deducted while making the remittance. Catching hold of a CA in such a manner when the agency is unable to find any of the main accused is unfortunate.
Form 15CB is required for payments made to Non-Resident, not being a Company, or to a Foreign Company which are taxable and if the payment exceeds ₹5 Lakh. Form 15CB is an event-based form and is required for each remittance that satisfies the condition laid. In form 15CB, a CA certifies the details of the payment, TDS rate, TDS deduction, and other details of nature and purpose of remittance. In other words, Form 15CB is the Tax Determination Certificate in which the CA examines a remittance with regard to chargeability provisions. This form can be submitted both in online and offline mode and no time limit is prescribed for filing the Form.
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