S n S FinMark Consultants and Advisory Services

02/06/2024

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SkyRise deals with Equity, Mutual Funds

08/10/2020

1. INCOME TAX : Disallowance of expenditure incurred to earn exempted income has to be a smaller part of such income and should have a reasonable proportion to exempted income earned by assessee in that year, which can be computed as per rule 8D only after recording satisfaction by Assessing Authority that apportionment of such disallowable expenditure under section 14A made by assessee or his claim that no expenditure was incurred is validly rejected by Assessing Authority by recording reasonable and cogent reasons conveyed to assessee and after giving opportunity of hearing to assessee in this regard.
2. GST : Where appellant, with an objective to develop land, owned by him, entered into an agreement with a developer, to develop said land jointly and share profits through distribution of sale proceeds after development of land by way of construction of residential/commercial project, it is held that sale of Transferable Development Rights (TDR)/Floor Space Index (FSI) would be leviable to GST under Heading 9972, at rate of 18 per cent (9 per cent CGST + 9 per cent SGST), as prescribed under entry at Sl. No. 16(iii) of Notification No. 11/2017 - Central Tax (Rate), dated 28-6-2017
• Vilas Chandanmal Gandhi, In re [2020] 114 taxmann.com (AAR - Maharashtra) affirmed.
3. FEMA, BANKING & INSURANCE : RBI Master Circular - Basel III Capital Regulations dated 1-7-2015 bearing RBI/2015-16/58 DBR No. BP.BC.1/21.06.201/2015-16, insofar as it relates to issuance and write off of Additional Tier 1 Capital Bonds, is not ultra-vires.

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, company law, IFRS, Ind AS & international taxation related information.

26/09/2020

1. The Prime Minister of India, Shri Narendra Modi, while launching platform for ‘Transparent Taxation – Honoring the Honest’ had said that faceless appeal under the Income-tax Act will be available across the country from 25-09-2020. Now, the Central Board of Direct Taxes (CBDT) has notified the Faceless Appeal Scheme, 2020 effective from 25-09-2020.
2. GST : Where Competent Authority while passing refund sanction order in FORM GST RFD-06 adjusted part of sanctioned refund amount towards disputed interest liability of assessee, part of impugned order which appropriated a portion of refundable amount deserved to be set at naught.
3. In an attempt to make fundraising easier, faster and cost effective, The SEBI has rationalized the eligibility criteria and disclosure requirements for rights issue. Key changes includes, Fast Track Rights Issue, increase in threshold from Rs. 10 crores to Rs 50 crores, for filing requirement of Rights issue draft letter of offer with the Board. Doing away with mandatory 90% minimum subscription criteria object of right issue involves financing other than capital expenditure for a project.

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

Financial/Consultancy services

23/09/2020

1. INCOME TAX: Where assessee was denied benefit of deduction under section 54F on ground that assessee owned more than one residential houses, other than new asset on date of transfer of original asset, since properties were in fact not residential houses owned by it and assessee had only given lease of vacant land and obtained rent for land and not for any building, and thus, assessee did not own more than one residential house, other than new asset on date of transfer of original asset, deduction u/s. 54F should be allowed to assessee.
2. Writ petitions filed against restriction imposed by Rule 89(5) of the CGST Rules on claiming refund of unutilized ITC on input services under inverted rate structure scheme are dismissed. Hon'ble Madras HC held that the restriction is not against Article 14 of the Constitution and Rule 89(5) is in line with Clause (ii) of Section 54(3) of the CGST Act.
3. The Ministry of Corporate Affairs (MCA) has notified the National Company Law Appellate Tribunal (Recruitment, Salary and other Terms and Conditions of Service of Staff Car Drivers) Rules, 2020 wherein provisions related to appointment, direct recruitment, absorption of employees, condition of services, accommodation, disqualification, and saving have discussed in details.

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

Financial/Consultancy services

12/06/2020

1. Income Tax Act, 1961 (hereinafter called 'ITA') seeks inter alia to tax global income of a resident-taxpayer and also provides for the levy of penalty in case of concealment, under reporting or misreporting of such income. If foreign sourced income chargeable to tax including any income in relation to any foreign asset has gone untaxed, such income can be brought to tax under ITA within 16 years from the end of the relevant assessment year in which such income was assessable, as provided in section 147 to 151 of ITA.
2. GST : Where Competent Authority detained goods of assessee (Works contractor) under transport and issued a memo under section 129(3) on premise that consignment was not accompanied by invoice, said authority was to be directed to adjudicate matter with regard to goods in compliance with provisions of Act.
3. INTERNATIONAL TAXATION : Whether where royalty payment to assessee US company was duly disclosed and offered to tax in return of income filed by Indian company in capacity of representative assessee, reassessment of assessee could not be initiated on ground that assessee had not offered tax on royalty.

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

07/06/2020

1. The Finance Act 2020 re-introduced the classical system of taxation of dividend income under the Income Tax Act, 1961 (IT Act) and accordingly, with effect from 1 April 2020, dividend income from an India company shall be taxable in the hands of the shareholder.
GST : Merely because petitioner, a dealer of motor vehicles, was a going concern by itself did not mean that it was not entitled to refund of excess of Input Tax Credit which it had accumulated over a period of time.
3. The Govt. has promulgated the Essential Commodities (Amendment) Ordinance, 2020 so that the farmers can get a good price on many commodities. The ordinance specifies that the supply of foodstuffs including cereals, pulses, potato, edible oilseeds, and oils shall be regulated only under exceptional circumstances such as war, famine, extraordinary price rise, and natural calamity of a grave nature.

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

05/06/2020

1. INCOME TAX: Section 40A(2)(b) does not envisage complete disallowance of expenditure unless it is proved to be excessive or unreasonable having regard to fair market value. Where no such finding with regard to excess payment had been established by revenue while invoking provisions of section 40A(2)(b), disallowance made was to be deleted
2. GST : Where applicant has two lines of business, one for supply of goods and other for supply of services and annual turnover of both activities put together does not exceed ten percent of turnover in a State or Union Territory in preceding financial year or five lakh rupees, which ever is higher, applicant is eligible to be in composition scheme and will be eligible to opt for payment of tax under section 10
3. Due to COVID-19 outbreak and lockdown situation prevailing in the country, various provisions of the Companies Act, 2013 and rules and regulation framed thereunder have been relaxed, therefore, the ICSI has issued clarification on Guidance note on Secretarial Standard I and II

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

02/06/2020

1. INCOME TAX: Where Tribunal did not record any finding of fact that assessee was an investor in share and not trader before treating income from sale of shares as capital gain, matter was to be remanded back to decide afresh.
2. GST : Works contract service provided by applicant to National Centre for Biological Sciences (NCBS) for construction of hostel building on campus is taxable at 18 per cent GST under 'residual item' under item No. (xii) of Serial No.3 of Notification No. 11/2017- Central Tax (Rate), dated 28-6- 2017.
3. INTERNATIONAL TAXATION: Existence of dependent agent permanent establishment (DAPE) is wholly tax neutral, thus, once an agent of assessee a UK based company in India had been paid arm's length remuneration, and income embedded in such remuneration had been taxed in India, no further profits could be taxed in hands of DAPE

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

01/06/2020

1. The Central Board of Direct Taxes (CBDT) has notified new Income-tax Return (ITR) forms applicable for the Assessment Year 2020-21. A new schedule ‘Schedule DI’ has been inserted to claim benefit of investment/ deposit/payments made between 01-04-2020 to 30-06-2020 for the previous year 2019-20.
2. The Form GST ITC-02A has been recently enabled on the GST portal. This form is a declaration for transferring ITC to new registration within the same state or union territory.
3. FEMA, BANKING & INSURANCE : Where appellant-accused did not appear in appeal before High Court in cheque bounce case, High Court should have taken assistance of amicus curiae; High Court erred in reversing acquittal of appellant without affording any opportunity to appellant

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

30/05/2020

1. INCOME TAX : If either the assessee has offered income or the Assessing Officer in the earlier assessment year has assessed the income under particular head which originally was assessable under different head, i.e., capital gain even though the same was liable to be assessed under the head business or profession, then there is no embargo either on Assessing Officer or on the assessee to show income or loss under head business or profession in subsequent year. The assessee can always point out in subsequent year in which it is claiming any deduction or loss, that income offered in earlier year was not shown under correct head and in this year same is assessable under correct head which is income or loss from business or profession. Thus, the claim regarding allowability of the business loss has to be determined by the Assessing Officer in year in which loss has been claimed in profit and loss account and assessment of corresponding income as capital gain in an earlier year will not be binding on the assessee and it is always open to assessee to point out that it is to be assessed under correct head, i.e., business.
2. The CBDT has notified new Rule 114-I which prescribes uploading of annual information statement in Form 26AS in the registered account of assessee. A new Form 26AS has been notified for reporting of information related to TDS/TCS, specified financial statements, payment of taxes, demand & refund, pending & completed proceedings & any info. in relation to sub-rule(2) of 114-I which includes info. received under agreement referred to in section 90 or 90A.
3. COMPANY LAW : Section 2(h) would be applicable only if a body is owned, controlled or substantially financed, directly or indirectly by funds provided by appropriate Government; petitioners who were substantially financed by companies owned by State Government could be said to be covered by definition of 'public authority' under section 2(h)(d)(i)

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

25/05/2020

1. This section is applicable to every person who sells goods and receives consideration for such sale if the aggregate value of such sale during the previous year exceeds fifty lakh rupees. The liability to collect such tax will arise only when the seller receives the consideration. The TCS rate is 0.1 percent of the sale consideration if the sale consideration exceeds fifty lakh rupees.
2. Amount of loans or deposit forming part of aggregate turnover for GST registration? : Analysis of AAR Ruling
Authority of Advanced Ruling(AAR)in case of M/s Anil Kumar Agrawal in Advance Ruling No. KAR ADRG 30/2020 dated 04.05.2020.
3. The MCA has provided a one time opportunity to the LLPs and company to make their default good by filing pending documents. Now, the ICAI has revised the FAQs on LLP settlement Scheme, 2020 and Cos. Fresh Start Scheme

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants

21/05/2020

1. The CBDT had notified ‘Debit card powered by RuPay’ and ‘UPI’ notified as prescribed mode of payments for the purpose of section 269SU. Considering the maximum payment limit prescribed under these modes, which are aren’t relevant for B2B businesses, the CBDT has clarified that Sec. 269SU shall not be applicable in case of person having only B2B transactions and at least 95% of business receipts shall be in any mode other than cash
2. GST : Where after reduction of GST rate, manufacturer/seller increased base price and maintained same MRP and, thus, had failed to maintain pre rate reduction base price and, thus, no benefit passed on to recipients/customers by way of commensurate reduction in selling price of product, respondent had profiteered and, hence, liable to penalty; benefit of tax reduction should be passed only by commensurate reduction in price and not by any other means such as discounts, etc
3.The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of the Ministry of Finance to launch a new Special Liquidity Scheme for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to improve liquidity position of the NBFCs/HFCs.

CA Kuldeep Singh
FCA, DISA
Partner
Singh Suri & Company
Chartered Accountants