GSTPAM News Bulletin January 2023
THE GOODS & SERVICES TAX PRACTITIONERS’ ASSOCIATION OF MAHARASHTRA INTENSIVE STUDY COURSE CIRCULAR FOR THE YEAR 2022-23
It is 6th year of the GST act is implemented. After implementation of GST, whole fraternity of Indirect Tax Practitioners and Trade are facing various challenges with regard to implementation, transition, interpretation, practical aspects, prescribed schedule rates, AAR, Department Audit, various notices related to ITC mismatch and so on.
We all are aware about the practical diDculties we are facing while applying the rules and procedures of the GST law and the frequent amendments to the law especially due to frequent lockdown. With the view to update our fellow members on the latest development in law and to discuss the practical issues arising there from, our association has been regularly conducting Intensive Study Course. This year the Intensive Study Course is designed to enable the members to study and discuss various issues on Indirect Tax Laws mainly on GST Law, as well as on profession tax, etc.
With the same enthusiasm to discuss mainly on various aspects of GST Law, We are starting our hybrid mode Intensive Study Course for the year 2022-23 from Friday, 16-09-2022 onwards, upto June, 2023.
The Intensive Study Course is such an academic activity of our association which is designed to facilitate the members to study and discuss various issues in group. At the intensive study Course, one of the members acts as a group leader and leads the discussion on issues of the relevant subject/ topic and one of the seniors in the profession monitors the discussion. The meetings are generally arranged ON Hybrid mode on 1st 3rd and 5th Friday of the month during 3.30 p.m. to 6.00 p.m.. There are around 15-16 meetings will be arranged for the Intensive Study Circle.
1st The inaugural meeting of the Intensive Study Course is scheduled to be held on Friday, 16-09-2022 onwards, upto June, 2023. between 3.00 p.m. – 6.00 p.m. on hybride mode on the subject “Issues in Assessment and Recovery proceedings under GST” The topic will be lead by Group Leader CA Dharmen Shah and the Monitor of CA Ashit Shah.
The group strength is restricted to a limited number of members to facilitate better interaction within the group. The Intensive Study Course Fee is fixed at Rs. 1,650 – including GST for Members and Rs. 1,850 – including GST for Non members. You are requested to enroll at the earliest to avoid disappointment.
Member interested to act as group leader should inform by filling up the option in the Form of “I wish to be a group leader for the subject” and are requested to contact the Convener on the mobile numbers mentioned- on Cell No. 9552451930 98211 21433 / 9324541329
- GST lectures will be in form of group discussion, which will be helpful to study the GST law.
- If the materials are received 3 days earlier to the date of meeting, the same will be circulated through mails to the participants.
- Participants are requested to discuss only the points related to the particular topic of the meeting and to come prepared for the subject, which will be helpful for the discussion.
CIRCULAR FOR RENEWAL OF MEMBERSHIP/SUBSCRIPTION CHARGES FOR THE F.Y. 2022-23
RENEWAL OF MEMBERSHIP FOR F.Y. 2022-23
The Membership Fees for the year 2022-23 are due for renewal on 01.04.2022. We appreciate your Continuing support and participation in the activities of our Association.
The timely Renewal of Membership will enable the members to continuously receive the updates on various activities of GSTPAM along with the GST Review, News Bulletin, Circulars, Messages, Webinars and online access to the website www.gstpam.org . The Life Members only need to renew the subscription charges for the GST Review. The members can also avail the benefit of discount by paying advance for subsequent two years membership fees /subscription charges.
The Membership Renewal Fees received after 30th April, 2022 will be subject to approval of the Managing Committee. If the Renewal fees for a particular year are not paid, then the member is liable to pay Admission Fees again for Renewal in the subsequent year.
Delayed Renewal Members will be provided Pre Renewal GST Review subject to availability upon payment of such additional courier charges.
The details of Membership/Subscription Fees are given below for your ready reference:
|Type of Membership||Membership Fees incl.
|Admission Fees Incl.
|Subscription Charges for GST Review||Total|
|New Membership Application|
|Life Member (Conversion from Ordinary)||11,800.00||590.00||600.00||12,990.00|
|Ordinary Local Member||1,770.00||590.00||–||2,360.00|
|Ordinary Outstation Member||1,475.00||590.00||–||2,065.00|
|New Membership Application (Firm/LLP)|
|Ordinary Local Member||1,770.00||944.00||0||2,714.00|
|Ordinary Outstation Member||1,475.00||944.00||0||2,419.00|
|Advance Membership/ Subscription charges for subsequent two years 2023-24& 2024-25 (Non-Refundable)|
|Ordinary Local Member||3,186.00||–||–||3,186.00|
|Ordinary Outstation Member||2,655.00||–||–||2,655.00|
|Life Member (Individual/Firm/LLP)||0||–||1,200.00||1,200.00|
|Subscription for GST Review for F.Y. 2022-23 by Non-Members|
|Subscription fees for GSTR||–||–||1,000.00||1,000.00|
|Advance Membership / Subscription charges for subsequent two years 2023-24& 2024-25 (Non-Refundable)|
|Subscription Fees -GSTR||0||–||2,000.00||2,000.00|
Modes of Payment:-
|Cheque||A/c Payee Cheque drawn in favor of “The Goods & Services Tax Practitioners’ Association of Maharashtra” payable at Mumbai.|
|NEFT Details||The Goods & Services Tax Practitioners’ Association of Maharashtra
Bank of India, Mazgaon Branch
Current Account No. 007020100001816, IFSC Code – BKID0000070.
Online generated transaction Acknowledgment should be sent by email on [email protected] along with membership and payment details Members are requested to send their physical form to the association for Approval, Issuance and Office record.
|Cash||Renewal form along with requisite amount will be accepted between 10.30
a.m. and 5.30 p.m. on all working days except Saturday at our Office at Mazgaon Library – Mazgoan: 1st Floor, 104, GST Bhavan, Mazgaon, Mumbai – 400 010 Or
Bandra Library – GST Bhavan, Ground Floor, A Wing, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Or
Mazgaon Tower-8 & 9, Mazgaon Tower, 21, Mhatar Pakhadi Road, Mazgaon, Mumbai – 400 010.
|New Members should provide the following as Identity Proof : PAN, Aadhar Card, Constitution Document.
Address Proof(any one) : Electricity Bill / Passport/ Aadhar Card / Driving License/ Voter id/ Ration Card along with Membership Form
|Ordinary Local/Outstation Members should provide Two Photographs along with the Renewal Form for issue of I-cards.|
|Online Payment Link||Members can make online payment on our website www.gstpam.org. Members are requested to download Members Renewal form from website. Update the latest details in the form, scan it and mail at emailoffice@gstpam. org
Payment Link : https://www.gstpam.org/online/renew-membership.php
If you are login first time? Click here for create your password
We value your continuation of the membership and look forward to your renewal to this effect.
Hon. Jt. Secretary
GST, MVAT & ALLIED LAW UPDATES
Notification under Central Tax
|Notification No.||Date of Issue||Subject|
|25/2022-Central Tax||13.12.2022||Seeks to extend the due date for furnishing FORM GSTR-1 for November, 2022 for registered persons whose principal place of business is in certain districts of Tamil Nadu.|
|26/2022-Central Tax||26.12.2022||Seeks to make fifth amendment (2022) to CGST Rules|
|27/2022-Central Tax||26.12.2022||Notification under sub-rule (4B) of rule 8 of CGST Rules, 2017|
|01/2023-Central Tax||04.01.2023||To assign powers of Superintendent of central tax to Additional Assistant Directors in DGGI, DGGST and DG Audit.|
Notification under Central Tax (Rate)
|Notification No.||Date of Issue||Subject|
|12/2022-Central Tax (Rate)||30.12.2022||Seeks to amend notification No. 1/2017- Central Tax (Rate)|
|13/2022-Central Tax (Rate)||30.12.2022||Seeks to amend notification No. 2/2017- Central Tax (Rate)|
|14/2022-Central Tax (Rate)||30.12.2022||Seeks to amend notification No. 4/2017- Central Tax (Rate)|
|15/2022-Central Tax (Rate)||30.12.2022||Seeks to amend notification No. 12/2017- Central Tax (Rate)|
Notification under Integrated Tax (Rate)
|Notification No.||Date of Issue||Subject|
|12/2022-Integrated Tax (Rate)||30.12.2022||Seeks to amend notification No. 1/2017- Integrated Tax (Rate)|
|13/2022-Integrated Tax (Rate)||30.12.2022||Seeks to amend notification No. 2/2017- Integrated Tax (Rate)|
|14/2022-Integrated Tax (Rate)||30.12.2022||Seeks to amend notification No. 4/2017- Integrated Tax (Rate)|
|15/2022-Integrated Tax (Rate)||30.12.2022||Seeks to amend notification No. 09/2017- Integrated Tax (Rate)|
Notification under Union Territory Tax (Rate)
|Notification No.||Date of Issue||Subject|
|12/2022-Union Territory Tax (Rate)||30.12.2022||Seeks to amend notification No. 1/2017- Union Territory Tax (Rate)|
|12/2022-Union Territory Tax (Rate)||30.12.2022||Seeks to amend notification No. 2/2017- Union Territory Tax (Rate)|
|14/2022-Union Territory Tax (Rate)||30.12.2022||Seeks to amend notification No. 4/2017- Union Territory Tax (Rate)|
|15/2022-Union Territory Tax (Rate)||30.12.2022||Seeks to amend notification No. 12/2017- Union Territory Tax (Rate)|
Circular under CGST Act
|Circular No.||Date of Issue.||Subject|
|183/15/2022-GST||27.12.2022||Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19|
|184/16/2022-GST||27.12.2022||Clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to subsection (8) of section 12 of the Integrated Goods and Services Tax Act, 2017|
|185/17/2022-GST||27.12.2022||Clarification with regard to applicability of provisions of section 75(2) of Central Goods and Services Tax Act, 2017 and its effect on limitation|
|186/18/2022-GST||27.12.2022||Clarification on various issue pertaining to GST|
|187/19/2022-GST||27.12.2022||Clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016|
Notification / Trade Circular under Maharashtra Goods and Services Tax Act, 2017 (MGST)
|Circular No.||Date of issue||Subject|
|15 T of 2022,
CBIC circular no. 178/10/2022-TRU
|12.12.2022||GST applicability on liquidated damages, compensation and penalty arising out out of breach of contract or other provisions of law|
|Notification No. 22/2022—State Tax Dt.15.12.2022||15.12.2022||Seeks to make amendments (Third amendment, 2022) to the MGST Rules, 2017|
|01 T of 2023,
CBIC circular no. 184/16/2022 -GST
|03.01.2023||Clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017|
|02 T of 2023,
CBIC circular no. 185/17/2022 -GST
|03.01.2023||Clarification with regard to applicability of provisions of section 75(2) of Maharashtra Goods and Services Tax Act, 2017 and its effect on limitation|
|03 T of 2023,
CBIC circular no. 186/18/2022 -GST
|03.01.2023||Clarification on various issue pertaining to GST|
|04 T of 2023,
CBIC circular no. 187/19/2022 -GST
|03.01.2023||Clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016|
|05 T of 2023,
CBIC circular no. 188/20/2022 -GST
|03.01.2023||Prescribing manner pf filing an application for refund by unregistered persons.|
|Notification No. 24/2022—State Tax Dt.03.01.2022||03.01.2023||Seeks to make amendments (Fourth amendment, 2022) to the MGST Rules,2017|
2/GST/Order/Area Juris DC/2019/1/ADM-8
|04.01.2023||Geographical Jurisdiction of Deputy Commissioner of State Tax. (Amendment Order)|
|06 T of 2023||05.01.2023||Tax Payer Service Cell meetings with Associations of Trade, Industry and Professionals – reg|
SUMMARY OF RECENT CASES UNDER GST
By CA. Aditya Surte
- Parallel Proceedings by different wings of the departmentPetitioner filed writ petition challenging show cause notices issued by Anti-Evasion Wing as well as Range Office of the Department on the ground that the audit for the same period had been commenced by the GST Audit department and it cannot initiate parallel proceedings or initiate any action against the Petitioner. The write petition was dismissed by the single bench on the ground that the proceedings are in the nature of SCN. Aggrieved by the order of the single bench, the Petitioner filed appeal before the division bench of the Calcutta High Court.The division bench observed that three wings of the same department are proceeding against the Petitioner for the same period, i.e., F.Y. 2017-18 to F.Y. 2019-20. The Court held that since the audit proceedings under sec. 65 of the CGST Act have already commenced, it is but appropriate that the proceedings should be taken to their logical end. Accordingly, the proceedings initiated by the Anti-Evasion wing and Range Office for the very same period shall not be proceeded with.(Calcutta High Court Order dated 30-09-2022 in Appeal No. M.A.T. 1595 of 2022 in the case of R. P. Buildcon Pvt. Ltd. v. Superintendent, CGST & Central Excise, Circle-II)
- Payment of pre-deposit of 10% of disputed tax using electronic credit ledgerWhether, an Appellant, to comply with the requirements of sec. 107(6) of the Maharashtra Goods and Services Tax Act, 2017 of paying a sum equal to 10% of the amount of tax in dispute arising out of the impugned order, can pay the amount utilising the credit available in the Electronic Credit Ledger?Petitioner contended that the balance available in the Electronic Credit Ledger can be utilised for making payment of 10% of disputed tax amount arising out of the impugned order at the time of preferring an appeal against such order. According to Revenue, Appellant can utilise the credit available only in the Electronic Cash Ledger. This is because sec. 49(4) restricts the usage of the amount available in the Electronic Credit Ledger only for payment of output tax under MGST or under IGST and the amount available cannot be utilised for payment of tax under sec. 107(6)(b).Hon’ble Bombay High Court refused to agree with the submission made on behalf of the State. It observed that clause (b) of sub-section (6) of section 107 provides a precondition, “unless the appellant has paid” (not deposited) a sum equal to 10% of remaining amount of Tax in dispute. It says 10% of Tax has to be paid as a precondition. That Tax can be Integrated Tax or Central Tax or the State Tax as in the case at hand,
or Union Territory Tax. The amount of ITC available in the Electronic Credit Ledger can be utilised towards payment of Integrated Tax or Central Tax or State Tax or Union Territory Tax. Therefore, Petitioner having to pay 10% of the Tax in dispute under clause (b) of sub-section
(6) of section 107, can certainly utilise the amount of ITC available in the Electronic Credit Ledger. The Court further added that in view of provisions of sub-section (3) of section 49, the party may also pay this 10% of the Tax in dispute by utilising the amount available in the cash ledger.
By referring to the definition of “output tax” as given under clause (82) of sec. 2 of the MGST Act,
it was held that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the MGST Act can be made by utilisation of the amount available in the Electronic Credit Ledger. Hence, a party can pay 10% of the disputed Tax either using the amount available in the Electronic Cash Ledger or the amount available in the Electronic Credit Ledger.
(Bombay High Court Judgement dated 16/09/2022 in W. P. (ST) No. 12287, 12457 and 23507 of 2022 in the case of Oasis Realty v. Union of India)
- Promotional items – Eligibility of ITCWhether ITC is available on vouchers and subscription packages procured from third party vendors that are made available to eligible customers participating in loyalty program against loyalty points earned / accumulated by said customers?Applicant is a fashion e-commerce company engaged in the business of selling fashion and lifestyle products through its online portal. In order to incentivise the customers visiting the portal, Applicant proposes to run a loyalty programme by way of issuing points to the customers on the basis of purchases. The loyalty programme is sought to be introduced with an object of increasing customer base of the Applicant’s platform which will lead to increased footfall and sales through the platform. As such, the loyalty programme will directly impact and enhance the amount of commission earned by the Applicant in the course of their business. Under the scheme of the loyalty programme, Applicant, through their portal, would make the vouchers and subscription packages available to those customers who wish to redeem the loyalty points accumulated by them and the Applicant will not receive any monetary consideration from the said customers. Further the loyalty points are non-transferable, can’t be converted into cash and can’t be used in place of cash. The applicant would be procuring the vouchers & subscription packages, on payment of applicable GST, from third party vendors who would be classifying their supply under SAC 9983 as “other professional, technical and business” service.Applicant contended that it is entitled to claim ITC by submitting, inter-alia, that the bar on ITC under sec. 17(5)(h) is not applicable as the supply of vouchers and subscription packages by third party vendors has been classified as ‘service’ and not ‘goods’. It also submitted that the vouchers, irrespective of being goods or not, will be offered only under contractual obligation for which consideration may not be explicitly specified by the applicant as the same will not be given free of charge and hence cannot be termed as ‘gift’ to the customers.
The Authority while referring to the definition of “voucher” under sec. 2(118) of CGST Act observed that the subscription packages procured by the Applicant are also ‘vouchers’ as it places an obligation on the potential supplier to accept it as consideration for supply of goods or services to the holder of the instrument or the customer. The Authority further observed that vouchers, whether printed on paper or in electronic form, qualify as ‘goods’.
Regarding the contention that the vouchers are not given free of charge, the Authority observed that the loyalty points, in the Applicant’s own admission, do not have any monetary value, are non- transferable and cannot be converted to cash. The redemption of loyalty points, admittedly involves no flow of consideration from the customer. Thus, redemption of loyalty points by the customer for receiving vouchers from the applicant implies that the vouchers are issued free of cost to the customer and amounts to disposal of vouchers(goods) by way of gift and squarely covered under sec. 17(5)(h) of CGST Act.
The Authority, therefore, ruled that the Applicant is not eligible to avail the ITC on the vouchers and subscription packages procured by the Applicant from third party vendors.
(Karnataka AAR Order No. KAR ADRG 33/2022 dated 14/09/2022 in the case of Myntra Designs Pvt. Ltd.)
INCOME TAX UPDATES
By CA. Ajay Talreja
ITAT deletes Penalty Imposed for accepting Cash Payment for Sale of Land: No Sufficient Reasons to show Tax Evasion Attempt
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT), recently deleted the penalty imposed under Section 271D of the Income Tax Act, 1961 as the revenue could not show sufficient reasons to prove tax evasion attempt. The appeal by assessee was that the Commissioner of Income Tax (Appeals) [CIT(A)] had erred in law in upholding the order of the Assessing Officer (AO), imposing penalty under Section 271D of the Income Tax Act. The assessee was an NRI. During the relevant assessment year, the assessee had sold two immovable properties on 26.12.2016 and received part sale consideration in cash. Since there was violation of provisions of Section 269SS of the Income Tax Act, the AO, initiated a penalty under Section 271D of the Income Tax Act. To the notices issued to the assessee calling for her explanation, there was no response. Since the assessee failed to offer satisfactory explanation, the AO imposed a penalty amounting to Rs.12,37,000 (the amount equal to the sum accepted by the assessee in contravention of provisions of Section 269SS of the Income Tax Act). Aggrieved by this, the assessee approached the CIT(A), who rejected the appeal of the assessee, aggrieved by which the assessee has filed the present appeal before the tribunal. The learned Departmental Representative, submitted that the assessee has not made out a case of reasonable cause as mandated in the Act for the waiver of penalty. It was observed by the Tribunal comprising Judicial Member George George K and Accountant Member Laxmi Prasad Sahu that, “the intention of the assessee was not to defraud the revenue by violating the provisions of the Act or by evading taxes. The same is evident from the fact that the cash receipts have been duly disclosed in the sale deed as well as the income tax returns. The copies of the sale deeds are enclosed in the paper book filed by the assessee”, and in favour of the appellant-assessee, it was held that the penalty was unjustified in law and deleted the penalty.
Verification of Cash Deposits without considering Repayment and Submissions of Assessee: ITAT cancels Confirmation of Additions
The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench cancelled the confirmation of additional amount without verifying the repayment and submission of the assessee in case of Cash deposit. Assessee Rajeshkumar Baldevbhai Patel is engaged in agricultural activities and had not filed the Returns of Income. The Assessing Officer (AO) found that assessee has made cash deposits of Forty Lakh Fifty Thousand and Five Hundred Rupees in his savings bank account with Bank of India. After that AO issued a letter to assessee for verifying the transaction of the assessee’s savings account. But the assessee did not respond to that letter. Thereafter the AO issued notice under Section 148 of the Income Tax Act to reopen the assessment and collected the bank details of the assessee and made order without considering the assessee’s submission. Against the order, the assessee filed an appeal before the ITAT. The observation of VivekChavda, A.R. for assessee was that, Assessee provided all the documents required by the Assessing Officer for verifying the creditor’s loan transactions on his account.
But the assessee did not respond to that letter. Thereafter the AO issued notice under Section 148 of the Income Tax Act to reopen the assessment and collected the bank details of the assessee and made order without considering the assessee’s submission. Against the order, the assessee filed an appeal before the ITAT. The observation of VivekChavda, A.R. for assessee was that, Assessee provided all the documents required by the Assessing Officer for verifying the creditor’s loan transactions on his account. But the AO partially accepted loan transactions and then added the remainder as unexplained income of the assessee. V.K. Singh, for Revenue, strongly supported the decision of the CIT (A) and argued that the additions confirmed by the CIT (A) did not require any interference. The Division Bench of Annapurna Gupta, Accountant Member and T.R. Senthil Kumar, Judicial Member allowed the appeal filed by the assessee, held that addition made by the Assessing Officer not correct and deleted the addition confirmed by the CIT ( A).
Object beneficial to a Section of Public also amounts to a Charitable Purpose, Exemption as Trust allowable u/ s 12 AA: ITAT
The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) has ruled that the object of the trust beneficial to a section of the public also amounts to a charitable purpose and exemption as a trust allowable under section 12 AA of the Income Tax Act,1961. Sri Rajput Yuvak Mandal, the assessee challenged the order of the Commissioner of Income Tax (Exemption), Ahmedabad passed for the assessment year 2019-20. The assessee is a religious Trust created to carry on social, charity, religious and educational activities. The applicant made an application for registration of the trust under section 12AA of the Act on 27 March 2019. The CIT(Exemption) rejected the application filed by the assessee for the reason that the trust is established for the benefit of a particular community namely “Rajput” and not for the general public. The assessee relied on the case of Ranpariya Solanki Parivar Trust v Ld. CIT(Exemption) wherein it was held that “an object beneficial to a section of the public is an object of general public utility because to serve a charitable purpose the object doesn’t need to be to benefit the whole of mankind or all persons in a particular country or state. It is sufficient if the intention is to benefit a section of the public as distinguished from a specified individual is present”. The assessee contended that CIT(Exemption) never questioned the genuineness of the activities of the Trust and alleged that sufficient opportunity fora hearing was not granted. On the other hand,the department relied on the observations made by CIT (Exemption). A Coram comprising of Ms Annapurna Gupta, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member restored the issue to the file to the CIT (Exemption) for fresh adjudication, after giving due opportunity of hearing to the assessee to present its case on merits. The appeal of the assessee was allowed for statistical purposes.
Addition under Deeming Provision of S. 50C cannot Attract Income Tax Penalty for ‘Concealment of Income’: ITAT
In an assessee-favouring ruling, the Income Tax Appellate Tribunal (ITAT), Ahmedabad bench has held that the addition under section 50C, being a deeming provision cannot be a sole ground to attract penalty under section 271(1)(c) of the Income Tax Act, 1961. A search under Section 132 of the Act was conducted on 22.09.2015 in Akshar Group of cases including the case of the assessee, Smt. VarshabenVipulbhaiBhalani and consequently, notice under Section 153A of the Act on 24.05.2016 was issued.During the course of the assessment proceedings, the case of the assessee was referred to the DVO under section 50C of the Income Tax Act, 1961 and the total income of the assessee was determined at Rs.4,26,400/-. Following this, the penalty proceeding under Section 271(1)(c) of the Income Tax Act was further initiated on the assessee on the ground of addition made of Rs.2,07,180/- on account of LTCG for furnishing of inaccurate particulars of income. A two- Member bench of Shri Waseem Ahmed, Accountant Member & Ms. Madhumita Roy, Judicial Member, while granting relief to the assessee, held that “Before the authorities and the Tribunal, the assessee contended that the addition to the income of the assessee with the aid of Section 50C of the Act is only under deeming condition which may vary in the event a reference is made to be District Valuation Officer under Sub-Section (2) to Section 50C of the Act. Under these circumstances, the assessee cannot be held to be liable for concealment of income or furnishing inaccurate particulars of income.”
Deposits were made from Past Savings and Earnings of entire family for Study Visa requirement of son: ITAT deletes Income Tax Addition
In an assessee friendly ruling, the Income Tax Appellate Tribunal (ITAT), Chandigarh deleted addition of Rupees Three Lakhs as Deposits were made from past savings and earnings of entire family for study visa requirement of son. The proceedings under Section 147 of the Income Tax Act were initiated in the case of the assessee, Shiv Nath in view of the fact that certain deposits were found to have been made in the assessee’s bank account. In response to the notice issued, the assessee filed a return declaring total income of Rs.76,600/-. The AO considering the reply as unsatisfactory made the addition of Rs.3,31,000/-. The assessee carried the issue in appeal before the First Appellate Authority. The appeal filed was dismissed in limine. Aggrieved the assessee is in appeal before the Tribunal. The assessee, as noticed is a daily wage worker and cumulatively and individually the income of the family has never been anywhere close to the taxable limits. The fact remains on record that the resources/savings from all sources were pooled in by the assessee to ensure financial viability foravailing a Student Visa for a daughter which ultimately also stood rejected.These facts remain unrebutted on record. Accordingly, the Revenue was put to notice to defend the order.
The Bench consisting of observed that “Keeping in view the realities and aspirations of the rising India and the efforts of the toiling masses where certain families instead of sitting in apathy for the State Administration to dole out State largesse the enterprising self respecting population also consists of such citizens who instead choose to make their own efforts to avail of the opportunities and advantages provided by educating their children.” “There are sections of Society who choose to involve every family member in industriously working and tosimultaneously studying to ensure a proper and a de cent livelihood for the next generation. To my mind, this spirit of the rising India should not be crushed by a mechanical effort of looking for evidences in 2022 for an activity which culminated in rejection of visa application of assessee’s daughter on 15th July, 2010.” “Keeping in view the purpose for which the assessee was working hard, the claim was justified on facts” the Tribunal added.
DGFT & CUSTOMS UPDATE
By CA. Ashit Shah
|Currently, for exporting a parcel through the postal route, an
exporter or his agent is required to file the export declaration at any of the 28 FPOs and hand over his consignment for export.
In the new system, the exporter will not be required to visit an
FPO. He would be able to get the Postal Bill of Exports (PBE) online from home/office and deposit the export parcel in a nearby post office. The export parcel so deposited by the exporter will be moved by the Department of Post (DoP) to an FPO for customs clearance.
Postal Exports (Electronic Declaration and Processing) Regulations, 2022, which will facilitate the processing of commercial postal exports by automating the entire procedure and seamlessly connecting the postal network to the notified Foreign Post Office (FPOs).
|62/2022 – Customs||Customs Duty (BCD) & Agricultural Infrastructure and Development Cess (AIDC) in respect of the imports under the India-Australia Economic Co- peration and Trade Agreement (Ind- Aus ECTA) in respect of goods and items falling in Table I to IV of the Notification.||26-12-2022|
|Anit Dumping Duty (ADD) on “Stainless-Steel Seamless Tubes and Pipes”, falling under the sub-heading 7304, originating in, or exported from China PR, and imported into India, for a period of 5 years from the date of Notification, which will be payable in Indian Currency.||20-12-2022|
|Anit Dumping Duty (ADD) on “„semi-finished Ophthalmic Lenses”, falling under the sub-heading 9001, originating in, or exported from China PR, imported into India, for a period of 5 years from the date of Notification, which will be payable in Indian Currency.||27-12-2022|
|Anit Dumping Duty (ADD) on “„Jute products comprising of Jute Yarn / Twine (multiple folded / cabled and single),Hessian fabric, Jute sacking bags and Jute sacking cloth”, falling under the sub- heading 5307, 5310, 5607 or 6305 originating in, or exported from Bangladesh and Nep al, imported into India, for a period of 5 years from the date of Notification, which will be payable in Indian Currency .||30-12-2022|
2. Notifications under DGFT:
|48/2015-2020||MMTC has been de-notified as a State Trading Enterprise for import of Copra under chapter 1203 00 00 and hence shall be allowed through National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED).||08-12-2022|
|49/2015-2020||Annual Exports quotas for Red Sanders (Pterocarpus santulinus) covered under Chapter 4403 9918 and 4407 9990 is fixed at 280 MT for Andhra Pradesh for artificially Propagated red sanders and a zero export quota for wild specimens of red sanders.||09-12-2022|
|52/2015-2020||Import Policy of Urad (Beans of the SPP Vigna Mungo (L) Hepper covered under HSN 0713 31 10 and Tur / Pigeon Peas (Cajanus Cajajn) covered under HSN 0713 60 60 were under “Free” up to 31-03-2023 is extended up to 31-03-2024.||28-12-2022|
|51/2015-2020||Import policy of Refined bleached deodorized palm oil covered under HSN 1511 9010, 1511 9020 and 1511 9090 were under “Free” is extended beyond 31-12-2022 until further orders and Imports are not permitted through any port in Kerala.||28-12-2022|
Froms under FCRA Act 2010
By Adv. Hemant Gandhi & CA Premal Gandhi
The various types of applications to be done under FCRA Act 2010 are as follows-
|FC-1||Intimation to Central Government of receipt of foreign contribution by way of gift from relative by an individual/ foreign contribution in the form of Articles/securities by a candidate for election||21|
|FC-2||Application for seeking prior permission to accept foreign hospitality||6|
|FC-3A||Application for ‘registration’ under section 11(1) of the FCRA for the acceptance of foreign contribution by an Person/association having definite cultural economic, educational, religious or social programme||11(1)|
|FC-3B||Application for ‘prior permission’ under section 11(2) of FCRA for the acceptance of foreign contribution by a person/association having definite cultural, economic, educational, religious or social programme||11(2)|
|FC-3C||Application for ‘renewal’ under section 16 of the FCRA for the acceptance of foreign contribution by an person/association having definite cultural, economic, educational, religious or social programme||16|
|FC- 4||Account of foreign contribution for year ending 31 March……|
|FC- 6A||Intimation to the Central Government regarding Change of name/address in respect of the person/association granted registration/prior permission under the FCRA|
|FC- 6B||Intimation to the Central Government regarding Change of nature, aims and objects and registration with local/relevant authorities in respect of the person/association granted registration/prior permission under FCRA|
|FC- 6C||Intimation of the designated “FCRA Account “in the State Bank of India, New Delhi Main Branch, 11, Sansad Marg, New Delhi and change of another “FCRA Account” of choice, if any, under section 17 of FCRA in respect of the person/association granted registration/prior permission under FCRA||17|
|FC-6D||Intimation under rule 9 and rule 17A of FC(R) to the Central Government regarding opening of additional FC-utili-sation account in respect of the person/association granted registration/prior permission under FCRA|
|FC-6E||Intimation under rule 9 and rule 17A of FC(R) to the Central Government regarding Change in key members in respect of the person
/ association granted registration/prior permission under FCRA
|FC-7||Application for surrender of certificate of registration|
The returns should be filed with Ministry of Home Affairs, FCRA Division. Returns should be filed
electronically. On the website http://fcraonline.nic.in.
PLAN YOUR BUDGET
By Mr. Tushar P. Joshi
The New Financial Year has just started…..
A budget marks the start of a new financial year… for the government and you. While the finance ministry would have started working on it long back, it isn’t too late for you to create a financial policy for yourself. Please refer following points before preparing your budget.
- Take a Financial InventoryThe finance ministry begins the exercise by collating receipts and expenditures from ministries and state governments. You too should begin with taking an inventory of your income and expenditures.Your bank account and credit card statements. Rent, EMIs, Insurance premiums, Investments, Petrol, Gas, Internet and Telephone bills are some of the big and easy to track expenses. Variables-grocery, medical, entertainment, etc. will have to be tracked for a few months before you can project averages. Once you have the numbers, get a budgeting app to automate the process.
- Handle DeficitsHow you’ll find yourself in one of the three situations-the income matches expenditure (meaning, you barely make ends meet), you spend more than you make, you spend less than you earn. Look for the red flags-revolving card payments, EMls, too many financial commitments. Fix the debt problem first. Credit card interest rates are steep; also, outstanding balances spoil your credit score. Transfer the balance to a new card that offers a lower rate and request them to break the outstanding into EMIs. In case of loan EMIs, rather than extending the loan period, by switching to a bank that offers a lower rate. Next, clean up your investment portfolio.
- Set Financial GoalsIf you have surplus money piling in your bank account every month, you immediately need an investment plan. Start by identifying your financial goals and Impossibilities. They can be both long-term (retirement) and Short-term (buying a car or higher education). Once you have a list, calculate how much you need to save for each of them.. Do not forget to add inflation to the equation. Once you have a figure to achieve within a set time frame it is easier to choose and earmark investments .In this process you might also realise the need to weed out some unnecessary or bad investments. Remember to have adequate insurance, most important being life and health covers.
- Plan Your TaxesAs the FM announces new tax breaks, align your investments to get optimum benefits. Don’t randomly choose the highest tax saving instrument. Go through your goals, select a category of investment that suits your need, risk profile and then choose the best tax-saving alternative. Remember, it’s easier to earn tax benefits from long-term investments.
- Make Cyclical AdjustmentsYour budget is based on estimates which change with time and situation. A hike in gas prices will mean you need to cut back on some other expense. If you have taken a home loan or started a family, you need to enhance your life cover, meaning more premiums. The investments need reviewing from time-to-time. Advisers suggest a portfolio check-up every 3- 6 months. The asset mix might need some rebalancing. Also, check if there are some consistent under-performers. Weeding out an investment is sometimes expensive. Be mindful of the transactional costs.You Need A Budget.“Setting a monthly budget is the first step towards financial freedom.”
UPDATES ON FINANCE
Highest 1 Year FD Rates (As on 01st January 2023) < Rs 2 Crore.
|Institution||1 Year FD Rate|
|RBL Finance Bank||6.50%|
|Jana Small Finance Bank||7.00%|
|Equitas Small Finance Bank||7.10%|
Note : Senior Citizens would generally get 0.50% more than the above mentioned rates.
Post Office Deposit Rates (As on 01st January 2023).
|Particulars||Rate of Interest||Maximum Deposit (Rs)|
|Post Office Saving Account||4.00% p.a.||No Limit|
|National Saving Recurring Deposit Account||5.8% p.a.
|National Saving Time Deposit Account||5.5% p.a. (Upto 3 Yrs)||No Limit|
|Senior Citizen Saving Scheme Account (SCSS)||7.40% p.a.||15,00,000/- p.a.*|
|Public Provident Fund (PPF)||7.1% p.a. (Annually Compounded)||1,50,000/- p.a.|
|National Savings Certificates (NSC)||6.8% p.a. (Annually Compounded)||No Limit|
|Kisan Vikas Patra (KVP)||6.9% p.a. (Annually Compounded)||No Limit|
|Sukanya Samriddhi Accounts||7.6% p.a. (Annually Compounded)||1,50,000/- p.a.|
Lowest Home loan Rates for Self Employed Professionals (As on 01st January 2023).
|HSBC Bank||8.50% onwards|
|Kotak Mahindra Bank||8.60% onwards|
|Indian Bank||8.60% onwards|
|Union Bank of India||8.65% onwards|
|HDFC Bank||8.75% onwards|
Top Performing Mutual Funds (As on 01st January 2023).
|Fund Name||Current NAV||1 Year Returns|
|Invesco India Mid Cap Fund (G)||89.21||21.59%|
|Edelweiss Flexi Cap Fund (G)||25.663||16.74%|
|ICICI Prudential Multicap Fund Direct (G)||506.50||16.13%|
|UTI Nifty 50 Index Fund (G)||120.012||15.07%|
Major Currency Rates (As on 01st January 2023).
|Country||In Rs. on 01/04/22||In Rs. on 01/12/22||In Rs. on 01/01/23||Change MoM (Rs)||YTD Returns|
|United States of America (USA) – USD($)||75.54||81.16||82.45||1.59%||9.15%|
|United Kingdom (UK) –
|European Union (EU) – Euro (€)||83.05||83.35||86.35||3.60%||-3.97%|
Major Commodity Rates
|Commodity||Rate on 01/04/22||Rate on 01/12/22||Rate on 01/01/23||Change MoM||YTD Returns|
|Gold (MCX) – 10 Gms||51,290.00||53,339.00||54,110.00||1.45%||5.50%|
|Silver (MCX) – 1 Kg||66,820.00||65,370.00||74,300.00||13.66%||11.19%|
|Crude Oil (MCX) – 1 Unit (BBL)||7,726.00||8,602.04||6,140.00||-28.62%||-20.53%|
|Index||1st April 2022||1st December 2022||1st January 2023||MoM Returns||YTD Returns|
|Nifty 50 (NSE)||17,436.90||18,812.50||18,105.30||-3.76%||-3.83%|
|Index||1st April 2022||1st December 2022||1st January 2023||MoM Returns||YTD Returns|
|Dow Jones (USA)||34,818.27||34,395.01||33,147.25||-3.63%||-4.80%|
Disclaimer : Utmost care has been taken to present accurate figures. However, the reader is advised to verify the same and consult a Financial Advisor before taking any financial decision.
OUR PUBLICATIONS AVAILABLE FOR SALE
|S. No||Name||Price (Rs.)|
|1||FMCG & Pharmaceutical Industry – GST Issues & Challenges||150/-|
|3||46th RRC Book||175/-|
|5||Mega Full Day Seminar Booklet 2.7.2022||130/-|
|6||Half Day Seminar Booklet 17.11.2022||100/-|
|7||Maharashtra Goods & Service Tax Act along with Rules (MGST Bare Act)||850/-|
|8||Short Publication GST practical guides (5 Book Series)||555/-|
GSTPAM News Bulletin Committee for Year 2022-23
Ashit C. Shah
Sunil D. Joshi
Aloke R. Singh
|The opinions and views expressed in this Bulletin are those of the contributors.
The Association does not necessarily concur with the opinions/views expressed in this Bulletin.