Imp Case laws

All India Federation of Tax Practitioners (AIFTP) vs. UOI (Bombay High Court)

The work of important Tribunal like Income Tax Appellate Tribunal (ITAT) should not be allowed to suffer on account of shortage of administrative staff. There is no lethargy on the part of the Dept in filing up said posts. The Dept is expected to follow up the proposals to fill up the posts of Assistant Registrars in such quota as well as for issuing promotions for the posts of Deputy Registrars so that all these pots to the extent possible can be filled up at the earliest

The petitioner’s grievance that the work of important Tribunal like Income Tax Appellate Tribunal should not be allowed to suffer on account of shortage of administrative staff is perfectly legitimate, however, we do not find any lethargy on the part of the Department in not filing up said posts. Under these circumstances, we would expect the Department to follow up the proposals to fill up the posts of Assistant Registrars in such quota as well as for issuing promotions for the posts of Deputy Registrars so that all these pots to the extent possible can be filled up at the earliest

CBDT forms dedicated cell for start-ups to redress tax grievances

This Flash News explains a recent Order dated 30 August 2019 issued by the Central Board of Direct Taxes (CBDT) for setting-up of a dedicated cell for start-ups (“Start-up Cell”) to redress the grievances and address the various issues under Indian Tax Laws (ITL), including angel tax. The CBDT Order is issued in light of the announcement made by the Finance Minister in Budget Speech as also at the press meeting held on 23 August 2019.

The Start-up Cell comprises of the officials from different hierarchy at CBDT and can be contacted over telephone number (011-23095479/23093070 (F)) and email id (startupcell.cbdt@gov.in).

The CBDT Order is issued to implement the announcement made by the Finance Minister in Budget Speech on 5 July 2019 as also at the press meeting held on 23 August 2019 and is the latest in a series of proactive steps undertaken by CBDT to provide impetus to Start-up industry and clarify the ambiguities under the ITL.

Tax Due Date- September 2019

S. No	Due Date	Related to	Compliance to be made
1	11.09.2019	GST	Filing of GSTR-1 for August 2019.
2	20.09.2019	GST	- Payment & filing of GST return for the Month of August 2019- Form GSTR 3B
3	07.09.2019	TDS/TCS (Income Tax)	· Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of August 2019. · Deposit TDS from Salaries deducted during the month of August 2019 • Deposit TCS for collections made under section 206C including sale of scrap during the month of August 2019, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of August 2019, if any
4	30.09.2019	Income tax	Filing of income  tax return for the Corporate assesses (or) Non Corporate assesses (Whose books of accounts are required to be audited U/s 44AB of IT act 1964 (or) working partner (of a firm whose books of accounts required to be audit ( in case of Assesses not having international or specified domestic transaction). (All Sasken Trusts Return have to be filed.)
5	15.09.2019	Income Tax	Payment of Advance tax for the Corporate and Non Corporate assesses –Amount not less than 45% of advance tax respectively.

CBDT further clarifies reporting requirement for foreign directorship and foreign assets for filing income tax return for tax year 2018-19

CBDT further clarifies reporting requirement for foreign directorship and foreign assets for filing income tax return for tax year 2018-19

This Tax Alert summarizes recent clarifications issued by the Central Board of Direct Taxes^[1]  (CBDT), vide Circular No. 21/2019 dated 27 August 2019 (Second Circular), in relation to compliance of reporting requirements in the income tax return forms (ITR forms) for tax year 2018-19.

The ITR forms applicable for tax year 2018-19 were notified in April 2019^[2] and they introduced substantive additional disclosures. In relation to additional reporting requirements, various queries were raised by stakeholders to the CBDT^[3] , seeking clarification on the manner and scope of reporting requirements. These included reporting in relation to details of directorship in a foreign company, equity shares listed outside India etc., which were clarified by the CBDT, in the form of frequently asked questions (FAQs), vide Circular No. 18/2019 dated 8 August 2019 (First Circular) ^[4].

Now, the CBDT, vide the Second Circular, has further clarified that individual taxpayers, being non-resident, are not required to provide details of directorship in a foreign company which does not have any income received or accruing or arising in India. Furthermore, details of foreign assets are required to be reported by resident taxpayers only if such foreign assets are held during the tax year in India, as also in the accounting period as per the foreign tax jurisdiction, as defined in the instructions to the ITR Forms.

Shareholder liable to capital gains tax on receipt of partnership interest against shares on conversion of a company into an LLP under the LLP Act

Shareholder liable to capital gains tax on receipt of partnership interest against shares on conversion of a company into an LLP under the LLP Act

This Tax Alert summarizes a recent ruling  of the Authority for Advance Rulings, New Delhi (AAR), dated 23 August 2019, in the case of Domino Printing Science Plc. (Taxpayer). The AAR, in this case, held that conversion of a company into a limited liability partnership (LLP) in accordance with the provisions of The Limited Liability Partnership Act, 2008 (LLP Act) results in transfer of shares by the shareholders of the converting company. The AAR further held that the value of interest in the LLP is to be considered as the “full value of consideration” received on the transfer of shares for the purpose of computation of capital gains under the Indian Tax Laws (ITL).

GST on Realty Sector

AS all  are well aware, the GST law, insofar as it concerns the Realty Sector, has been virtually re-written with effect from 1-4-2019 and that, the levy of GST at the lower rates without the benefit of ITC is compulsory for projects which commence on or after 1-4-2019 and that, in respect of 'ongoing projects', the Developer has the option to continue with the old scheme wherein, ITC is allowed. Hence, the new scheme would, by and large, boil down to the interpretation of the definitions of an 'ongoing project' and 'a project which commences on or after 1-4-2019'.  

Finance Minister Honourable Smt. Nirmala Sitaraman Address to Media and Press Release On 23rd August 2019

q The whole presentation was structured in 32 slides with 6 compartments of Specific areas of concern for economic slowdown.

q Global GDP is at 3.2% and likely to be revised downwards, being global demand is very weak.

q Advanced economies also facing slow down largely due to trade war between US and China and China continuously devaluing its currency.

q India bubble positioned very high in terms of Growth rate, probably the highest in world.

TDS ON PAYMENT EXCEEDING 50 LAKHS

 new section 194M is proposed to be inserted in the Income Tax Act by the Budget 2019 that provides levy of TDS @ 5% on the sum or aggregate of sums, paid or credited in a year on account of contractual work or professional fees by an Individual or Hindu undivided family, not required to deduct tax at source under sec 194C and 194J of the Act if such sum or aggregate of such sums exceed Rs 50 lacs in a year. However, in order to reduce the compliance burden, it is proposed that such individuals or HUFs shall be able to deposit the tax deducted using their Permanent Account Number (PAN) and shall not be required to obtain Tax Deduction Account Number (TAN). So, no need to file regular TDS return in such cases.   

TURNING 8 TODAY

Eight years ago, on the same day i.e 11^th August 2011, I decided to share tax knowledge by way of blogging and TAXBYMANISH came into existence   That time I never presumed that this will be a life changing game for me.  With TAXBYMANISH I able to connect tax professionals across the world. Lets have a look into the following blog statistics which shows the success of blog.

Ø  Number of post                              6768

Ø  Total number of hits                      27.81 Lakhs

The above milestone  has been made possible because of your love and support only.  Thanks for all your support and  happy reading.

https://taxbymanish.blogspot.com/

Govt releases FAQs on NMC Bill 2019

THE Parliament has passed the National Medical Commission Bill 2019. The Govt has today released a detailed FAQs on this Bill and detailed the impact of various clauses. Some of them are as follows:   

FAO urges balancing more food production with sustainable agriculture

THE Food and Agricultural Organization today stated that the Green Revolution that transformed agricultural production in the Asia-Pacific region is alive and well but must retool to embrace climate-sensitive innovations and technologies to sustainably meet the increasingly complex demands of a nutrient-deficient world. Such observations were made at a function organized to commemorate 30 years of development achievement of the M.S. Swaminathan Research Foundation under the outstanding leadership of its mentor and visionary, Mr M.S. Swaminathan, a trail-blazing scientist who spent decades applying scientific research to tackle hunger, malnutrition and poverty.  

GST Update

GST Council Recommendations

•                    Recommendation of 36th GST Council Meeting

•                    Reduction in the GST rate on supply of goods and services :

•                    The GST rate on all electric vehicles be reduced from 12% to 5%.

•                    The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.

Treatment of Write Back Amount in GST Era

Background: 

The taxpayers may have long outstanding the creditors whose dues are not paid. The non-payment of dues may be on account of many business decisions.

As per prudent accounting policies, the long outstanding dues are reviewed periodically and written back (credited to profit & loss account) in the books of accounts.

Does the Transactional Profit Split Method Apply to Centralized Business Models?

1. Purpose of the blog

The purpose of this blog is to address whether the transactional profit split method (TPSM) applies to centralized business models operated by multinational enterprises (MNEs). The assessment will be made in light of the post BEPS transfer pricing guidance, that is, the 2017 OECD Transfer Pricing Guidelines (TPG) and the revised guidance on the TPSM (revised PSM report). Kindly note that the blog will not discuss the impact of the international corporate tax debate triggered by digitalization.

Value Of Uncertified Foreign Bank Records Under DTAA For Prosecution Under The (Indian) Income Tax Act And Black Money (Undisclosed Foreign Income And Assets) And Imposition Of Tax Act

The intention of the legislature is pretty clear from recent development in the field of law dealing with white-collar crimes. The legislature focuses on setting out legal provisions which will help the government in curbing out the issue of Black Money. One of the major developments in this aspect is the enactment of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. This Act was enacted specifically to deal with the problem of Undisclosed Foreign Assets held outside India by Indian residents. The Income Tax Act, 1961 makes it mandatory for an ordinary resident to declare all of his/her foreign assets and income. When a person being a resident does not disclose a foreign asset, such person is considered to be evading tax and can be penalized under The (Indian) Income Tax Act,1961 and other relevant legislation dealing with the offences pertaining to evasion of tax.

GST on Employee Recoveries

In GST law, there are few activities which would be treated as supply liable for GST even in the absence of consideration. These activities are listed in Schedule I to CGST Act 2017 with few entries finding place in Schedule II as well. One such activity listed in Schedule I is supply of goods or services between employee and employer when such supply is made in course or furtherance of business. There would be various payment transactions between employee and employer having impact in GST law. In this article, we have analysed few types of payments having GST impact.

Tax due Date - August 2019

11.08.2019	GST	Filing of GSTR – 1 for the month of July 2019
20.08.2019	GST	- Payment & filing of GST return for the Month of July 2019- Form GSTR 3B
07.08.2019	TDS/TCS (Income Tax)	· Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of July 2019. · Deposit TDS from Salaries deducted during the month of July 2019 • Deposit TCS for collections made under section 206C including sale of scrap during the month of July 2019, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of July 2019, if any