Recently, the Hon’ble Punjab & Haryana High Court, in the case of Sumat Gupta & CO. v. UOI, 2024-VIL-416-P&H, held that pre-deposit under Central Excise can be made post filing of Appeal.
Recently, the Hon’ble Punjab & Haryana High Court, in the case of Sumat Gupta & CO. v. UOI, 2024-VIL-416-P&H, held that pre-deposit under Central Excise can be made post filing of Appeal.
Filing income tax returns (ITR) within the specified timelines under the Income-tax Act is not just a legal obligation but also crucial for financial prudence. Failure to comply with these regulations can lead to a cascade of consequences, ranging from financial penalties to legal repercussions imposed by the government. In this article, we will delve into the various ramifications of non-filing or delayed filing of ITR and their implications for taxpayers.
1. Background
1.1 When a company aims to acquire another company's business through amalgamation or demerger, assets or liabilities may be acquired at fair value or book value, contingent upon the application of Indian Accounting Standards (Ind AS) or accounting standards. During business acquisition, intangible assets can be acquired or recognized in three ways:
1. Introduction:
Every trust/charitable society/ NGO that wishes to claim the tax exemption benefits has to file Form 10A to seek fresh registration under 80G and 12A and this form can be filed by the assessee once in their whole lifetime to obtain a registration or approval order.This Tax Alert summarizes a recent instruction issued by the SEZ Division, Department of Commerce, clarifying various concerns relating to Rule 11B of the Special Economic Zone (SEZ) Rules, 2006. The said rule provides for setting up of non-SEZ Information Technology (IT)/ IT Enabled Services (ITES) units in IT/ITES SEZs.
This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) where supplies are taxed on reverse charge basis under both Service tax and Goods and Services Tax (GST).
Vide recent circular dated April 18, 2024, the Securities and Exchange Board of India (SEBI) mandates Alternative investment Funds (AIFs) to carry out an annual audit with the PPM and submit the audit report to the Trustee, Board of Directors and the Designated Partners of the AIF and SEBI within six months from the end of the financial year.
1. What is slump sale?
Slump sale also referred as business transfer is where the assessee transfers the entire undertaking/ division for lumpsum consideration without assigning value/ selling price of individual asset.
The recent initiative by the Income Tax Department is a commendable step forward. It entails that no demands will be made in instances where the Tax Deducted at Source (TDS) was under-deducted by the deductor due to the non-linkage of PAN (Permanent Account Number) and Aadhar by the deductee. Moreover, if the transaction is recorded by March 31, 2024, and the PAN of the payee becomes active by May 31, 2024, then there will be no obligation to deduct TDS at a higher rate.
This is to update you about an important decision by Kerala Hon’ble High Court (HC) in the case of Travancore Cocotuft Private Limited v. DC,DGGI ,2024-VIL-344-KER-CU. The Court held that where IGST along with interest is paid on Advance Authorisation (‘AA’) default, customs must amend Bill of Entry (‘BE’) thereafter.
Introduction:
1. Taxability of online winnings before the introduction of section 115BBJ of the Income Tax Act and section 194BA of the Income Tax Act, was governed by section 115BB of the Income Tax Act – taxability of income from lottery, crossword puzzles, etc. and section 194B of the Income Tax Act– TDS on income from lottery, crossword puzzles, etc.1. The Supreme Court had delivered a seminal judgement in the case of Association for Democratic Reforms & Anr v/s Union of India & Ors. declaring Section 182(3) of the Companies Act (as amended by Section 154 of the Finance Act 2017) violative of Article 19(1)(a) and unconstitutional.
On December 19, 2023, the Reserve Bank of India (“RBI”) issued a circular (“Original Circular”) on investment in AIFs to address regulatory concerns w.r.t. investments made by banks, financial institutions, nonbanking financial companies (“Regulated Entities”/“REs”) in units of AIFs, during its regular investment operations. In order to address concerns on the possible evergreening through AIF route, the Original Circular aimed at clarifying that REs shall not invest in any scheme of AIF which has downstream investments either directly or indirectly in a debtor company of RE, and accordingly introduced further clarifications. However, many businesses in the industry raised concerns regarding difficulties in implementation of the Original Circular. Resultantly, some RE’s felt compelled to sell their interests in AIFs prematurely.
Form 10-IEA is now available for filing, giving taxpayers the opportunity to choose the old tax regime for the financial year 2023-24. This is a significant decision that can impact your tax liabilities, so it's essential to understand the process and act promptly.
Earlier this year, the Mauritius Government approved the amendment to the India – Mauritius tax treaty, aligning it with the proposal of the Organization for Economic Co-operation and Development (OECD) on the minimum standards of Base Erosion and Profit Shifting. Although the Protocol amending the tax treaty was signed on March 7, 2024, the text of the Protocol has now been made public (a copy of the same is attached herewith for your ready reference). An official notification in this respect is anticipated to be issued shortly.
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with Initial Public Offerings (IPOs), Bonus Issues, or Right Issues by either Listed Companies or those endeavoring to secure listing.
Central Board of Direct Taxes (CBDT) vide its notification no. 01/2024, dated 26th Feb 2024 (Notification) has provided for the electronic filing of the applications for APA, MAP and Safe harbor. As per the Notification, following forms shall be filed online, on the Income tax portal, with effect from April 1, 2024. All the forms filed prior to 01st April 24 shall not be impacted.
Sr No. |
Form |
Description |
|
3CED |
Application
for an Advance Pricing Agreement |
|
3CEE |
Application
for withdrawal of APA request |
|
34F |
Form of application for an assessee, resident in India,
seeking to invoke mutual agreement procedure provided for in agreements with other
countries or specified territories. |
|
3CEFA |
Application
for opting for Safe Harbour |
These forms are appearing on Income Tax portal under the tab
“Income Tax Forms”. Accordingly, please make sure to electronically file
the above Forms as per the updated guidelines.
Multiple representations were made to the government, for
many years, to allow electronic filing of these applications so as to reduce
the paperwork and for efficient processing of the applications. Thus,
electronic filing is expected to assist in expediting the filing process.
· Mumbai ITAT in the case of Mukesh Harilal Mehta held that Exemption U/S 54 cannot be denied merely due to mistake by the developer.
This article aims to explain (a) why Indians send money abroad for specific purposes, (b) how they can invest the remaining funds, and (c) recent FEMA changes leading to notices for many individuals to bring back unused funds from accounts overseas.
1. Sec .68 of Income Tax Act– Cash Credits
Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income- tax as the income of the assessee of that previous year.
This issue has frequently been raised by numerous businessmen and tax professionals, expressing that orders have been issued without due consideration of their responses. When appealing against such orders, the following case laws can be referenced:
Facts
·
India company has overseas subsidiary companies
and there may arise requirement wherein customer execution requires the
involvement of both Indian company & overseas company. In such cases, the customer
will receive an invoice from one of the group companies. Consequently, there is a requirement to raise
intercompany invoices, where one group companies’ invoice to another group
company who is raising final invoice to customers.
This Tax Alert summarizes a recent judgement of the Madras High Court (HC). The issue involved was whether taxpayers who have been assigned either to the Central tax authorities or the State tax authorities under the respective Goods and Services Tax (GST) enactments can be subjected to investigation and proceedings by their counterparts.
Recently, the Hon’ble Punjab & Haryana High Court, in the case of Sumat Gupta & CO. v. UOI, 2024-VIL-416-P&H , held that pre-d...