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28 June, 2018

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Still Holding Shares in Physical Format - Time To Take Action Urgently

Still Holding Shares in Physical Forma - Time To Take Action Urgently
On 8th June 2018,  SEBI has notified vide Notification No. SEBI/LAD-NRO/GN/2018/24 by issuing SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (FOURTH AMENDMENT) REGULATIONS, 2018 that except in case of transmission or transposition of securities, requests for effecting the transfer of securities shall not be processed unless the securities are held in the dematerialized form with a depository. 

27 June, 2018

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Tax Planning for Not Missing Out On Food & Beverages GST Credit on Corporate Promotional Event

Tax Planning for Not Missing Out of Food & Beverages GST Credit on Corporate Promotional Event
By CA Ankit Gulgulia (Jain)
27th June, 2018
As you are that there are certain expenses that a corporate cannot claim as eligible input under the provisions of Section 17 of CGST Act, 2017. Among many one of them is the food and beverage expense that the corporate may incur on some promotional event. 

26 June, 2018

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Applicability of Tax Accounting Standards (ICDS) to Taxpayers Covered by Presumptive Tax Schemes

Applicability of Tax Accounting Standards (ICDS) to Taxpayers Covered by Presumptive Tax Schemes 


By CA Ankit Gulgulia (Jain)
26th June, 2018

Taxpayers falling under the presumptive tax schemes are not subject to tax audit under section 44AB, since the limits for applicability of the schemes are the same as the threshold limits for tax audit. Therefore, an individual or HUF who/which falls under and opts to be covered by presumptive tax schemes would not be liable to such audit under section 44AB, and would fall under the exclusion under the notification. Hence ICDS would not apply. However, if a tax payer opts out of a presumptive taxation, he is required to get his/its accounts audited under section 44AB. In such a case the ICDS would apply. 

A question arises as to what is the position of other categories of taxpayers whose income is taxed under presumptive tax schemes. The issue arises as there is no specific exclusion from ICDS for such presumptive tax cases. 

25 June, 2018

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No Need To Furnish Bank Guarantee in Case of Seizure on account of Wrong EwayBill Declaration

No Need To Furnish Bank Guarantee in Case of Seizure on account of Wrong Eway-Bill Declaration 

Pragati Enterprises vs. State of U.P. (Allahabad)

In the above cited case, it has been held by Hon’ble Allahabad HC that the goods and vehicle of the petitioner may be released forthwith subject to deposit of security other than cash or bank guarantee, equal to the amount of tax payable on goods, to the satisfaction of the Assessing Authority. It is welcome judgement as in genuine cases furnishing of Bank Guarantee involves severe working capital challenges for dealers.

24 June, 2018

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Can Income Tax Assessee Use Different Method For Different Sources of Income?

Can Income Tax Assessee Use Different Method For Different Sources of Income?


By CA Ankit Gulgulia (Jain)
24th June, 2018

Reply :- An issue which arises is whether the income under all heads of income, or under a particular head of income, has necessarily to be computed under the same method of accounting, or whether an assessee can follow different methods of accounting for different sources of income under the same head of income, or different heads of income. 

It was well settled, prior to 1995, that the method of accounting is vis-a-vis each source of income, since computation of income is first to be done for each source of income, and then aggregated under each head of income. 

22 June, 2018

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Taxability of Transfer of Development Rights in Positive List, Negative List and GST ERA - A Comparative Analysis of Indirect Tax Applicability

Taxability of Transfer of Development Rights in Positive List, Negative List and GST ERA - A Comparative Analysis of Indirect Tax Applicability 

By CA Ankit Gulgulia (Jain) 
22th June, 2018

Respected Friends,

As you all are aware that Real Estate Industry has always been an Industry prune to a lot of tax disputes and grey tax areas due to complexity of transactions and multiple state and central laws applicable simultaneously on every single transaction. 

One of the several issues that has been keenly watched and studies in the Industry has been taxability on transfer of development rights (hereinafter referred to as “TDR”). In this technical paper, I intend to discuss in detail my view and supports in its favour on taxability of TDR’s in Service Tax Regime (both Positive List & Negative List) and in GST Regime w.e.f 1st July, 2017.

14 June, 2018

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Applicable GST Rate on SEIS, MEIS Scrips, PSLCs & RECs and other similar scrips

Applicable GST Rate on SEIS, MEIS Scrips, PSLCs & RECs and other similar scrips 

The CBIC recently issued Circular No. 46 / 20 /2018 -GST F.No. 354 / 149 / 2017 –TRU dated 6th June, 2018 regarding the classification and applicable GST rate on the Renewable Energy Certificates (RECs) and Priority Sector Lending Certificates (PSLCs).

Earlier, in response to a FAQ, it was clarified (vide advertisement dated 27.07.2017), that MEIS and other scrips like SEIS and IEIS are goods classified under heading 4907 and attract 12% GST, which is the general GST rate for goods falling under heading 4907.

Subsequently, the duty credit scrips classifiable under 4907 were exempted from GST, while stock, share or bond certificates and similar documents of title [other than Duty Credit Scrips], classifiable under heading 4907, attract 12% GST.

13 June, 2018

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Can this West Bengal AAR GST Ruling Can Disrupt Export of Services & Legal Analysis

Can this West Bengal AAR GST Ruling Can Disrupt Export of Services & Legal Analysis 

In case of M/s Global Reach Education Services Pvt Ltd the WEST BENGAL AUTHORITY FOR ADVANCE RULING dated 21st March, 2018 has given a ruling that will come as setback to many and can open Tax Issues in BPO, KPO, Outsourcing to Foreign Clients Industry. 

Applicant was providing Overseas Education Advisory whereby it promotes the courses of foreign universities among prospective students and wants a ruling on whether the service provided to the Universities abroad is to be considered “export” within the meaning of Section 2(6) of the Integrated Goods and Services Act, 2017, (hereinafter referred to as “the IGST Act”), and, therefore, a zero-rated supply under the CGST / WBGST Act 2017 (hereinafter referred to as “GST Act”).

11 June, 2018

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NEW FACILITIES ON GST PORTAL


Dear Taxpayer,

Given below are updates on functionalities which were made available on GST Portal recently: 

(A) Registrations:

(i) Facility to apply for Revocation of cancellation of Registration has been enabled on GST Portal. This form will enable Tax payers whose registration has been cancelled via Suo-moto Cancellation process, to apply for revocation of cancellation of registration. 

25 April, 2018

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Audit Under GST - Basics Concepts and Advantages

GST Audit – Some Basics

1. Introduction

1.1   The concept of audit by a Chartered Accountant in the area of Indirect Taxes was confined to State Value Added Tax and Central Sales Tax laws of certain States. In Central Excise and Service tax only in case of suspicion of undervaluation or excessive credit special audits were prescribed (not much used) which continue in GST. Therefore, Chartered Accountants engaged in rendering professional services in the areas of State taxes would be familiar with those provisions. The GST law has subsumed several Indirect Tax laws – among others, it subsumed Central Excise, Service Tax, Luxury Tax, Entertainment Tax, VAT/CST, Entry tax laws etc.; certain levies under the Customs laws have also been subsumed into the GST laws.

1.2   It would be relevant to note that the skill sets acquired in the understanding of the statutes that have been subsumed into the GST laws would help in better understanding of the GST laws since several provisions of the Central and State enactments have been replicated (fully or partially) in the GST laws – say, for instance, the provisions of Place of Supply of Services, Time of Supply of Services, Valuation of Supply Rules, etc. That being said, one needs to exercise caution in reading and understanding the subtle departures or changes in the statute in comparison with the erstwhile legislations, in which case, one has to enhance the understanding of the fully taken forward provisions. He also needs to unlearn the old laws and learn the GST laws afresh for a complete understanding of the taxing statute.