GSTPAM News Bulletin October 2022
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 difficulties 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 [email protected] 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|
|18/2022-Central Tax||28.09.2022||Seeks to notify 01.10.2022 as the date on which provisions of sections 100 to 114, except clause (c) of section 110 and section 111 of Finance Act, 2022 shall come into force.|
|19/2022-Central Tax||28.09.2022||Seeks to make amendments (Second Amendment, 2022) to the CGST Rules, 2017.|
|Corrigendum||29.09.2022||Corrigendum to Notification No. 20/2022-Central Tax dated
|20/2022-Central Tax||28-09-2022||Seeks to rescind Notification No. 20/2018-CT dated 28 th March,
|Circulars under CGST Act|
|Circular No.||Date of Issue||Subject|
|180/12/2022-GST||09.09.2022||Guidelines for filing/revising TRAN-1/TRAN-2 in terms of order dated 22.07.2022 & 02.09.2022 of Hon’ble Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd|
|Notification under Maharashtra Goods and Services Tax Act, 2017 (MGST)|
|Notification No.||Date of Issue||Subject|
|Notification No. GST-1022/C.R.38, E.O. No.316 Dtd. 13.09.2022||13.09.2022||Mr.Rajiv Ranjan has been appointed as member of Advance Ruling Authority in the place of Mr. Rajiv Magoo|
|Notification No.17/2022 – State Tax Dt.16.09.2022||16.09.2022||Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs 10 Crore from 01st October, 2022.|
|Notification No.09/2022 – State Tax Dt.22.09.2022||22.09.2022||Seeks to notify the provisions of section 13 of Maharashtra Goods and Services Tax (Amendment) Act, 2022. (MAHARASHTRA ACT NO. XXXIX OF 2022)|
|11 T of 2022 CBIC Circular No. 180/12/2022 -GST||26.09.2022||Guidelines for filing / revising TRAN – 1/TRAN -2 in terms of order dated 22.07.2022 & 02.09.2022 of Hon’ble Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd.|
|Notification No. GST-1022/C.R.40, E.O. No.337 Dtd. 26.09.2022||26.09.2022||Mr. M Ram Mohan Rao has been appointed as member of Advance Ruling Authority in the place of Mr. Rajiv Ranjan.|
INCOME TAX UPDATES
By CA. Ajay Talreja
Amount debited from bank of assessee – Gross abuse of power – HC
Case Name : Pradeep Kumar Siddha Vs Union of India & Ors. (Bombay High Court)
Appeal Number : Writ Petition No. 8298 of 2022
Date of Judgement/Order : 18/07/2022
HC held that We fail to understand, prima facie, as to how the authorities get this power to take away amount from anybody’s account without account holder’s permission or even after taking away the money, they would not even consider it necessary to inform the account-holder that money from their account has been debited. This is nothing but high handedness and gross abuse of power. HC directed the department to deposit the entire amount of Rs. 62,32,400/- with the Registrar (Judicial-I) of this Court on or before 28.07.2022 failing which this court may issue contempt notice against them. It is to be noted that earlier court directed department to unfreeze the account maintained by petitioner with Axis Bank. It is petitioner’s case that on 20.05.2022, respondents took away Rs. 62,32,400/- from its Axis Bank account and it has been transferred by the bank to respondents by way of RTGS.
ITAT Refuses To Condone Delay of 2985 Days in Appeal filing
Case Name : Bharatkumar Somabhai Patel vs ITO (ITAT Ahmedabad) Appeal Number : ITA No. 331/Ahd/2019
Date of Judgement/Order : 05/08/2022
Related Assessment Year : 2007-08
The assessee is in appeal before us filing the above appeal with a delay of 2985 days. Even before this Tribunal, 10 opportunities given to the assessee. The assessee is not responded to the hearing notices. The present Affidavit filed by the assessee is without material on record and no reasonable cause was demonstrated by the assessee. As right from the assessment proceedings, the assessee seems to be not cooperative for the assessment proceedings and also before the ld. CIT(A), none appeared and before this Tribunal, none appeared on behalf of the assessee. It is appropriate to quote at this stage the legal maxim “VIGILANTIBUS, NON. DORMIENTIBUS, JURA SUBVENIUNT” which means, law will help only those who are vigilant. Law will not assist those who are careless of his/ her right. Only those persons, who are watchful and careful of using his/her rights, are entitled to the benefits of law. Thus law confers rights on persons who are vigilant of their rights. The assessee could not demonstrate the reasons for non appearance before the lower authorities as well as before this Tribunal and the reasons stated in the affidavit filed by the assessee is not reasonable cause to condone the huge delay of 2985 days in filing the appeal by the assessee. Further there is no supporting affidavit of the so called accountant Mr. Parashottambhai Rajgor who alleged to have not intimated the receipt of the assessment order, as well as the appellate order to the assessee. In the absence of the same, the reasons given by the assessee is not convincing and therefore the delay of 2985 days in filing the above appeal cannot be condoned. Therefore the appeal is not maintainable and dismissed as in limine.
Cheque Bounce Case- Sole Proprietor alone cannot be sued
Case Name : Sardar Bhupinder Singh vs Green Feeds (Punjab & Haryana High
Court) Appeal Number : CRM-M-54111-2021
Date of Judgement/Order : 26/08/2022
Petitioner has contended that for well maintaining the prosecution under Section 141 of ‘the Act’, the arraigning of the sole proprietary entity concerned, was a dire statutory necessity, as the sole
proprietary entity concerned, is the principal offender, whereas, the other natural, or, non juristic persons, can become arrayed as an accused alongwith it, merely on the touchstone of vicarious liability becoming attracted upon them, and, as arises from the dishonour of the negotiable instrument concerned. Respondent-complainant, has argued, that a keen perusal of the provisions of Section 141 of ‘the Act’ does not disclose, that they are applicable to a sole proprietary entity concerned, and, as such, he argues that the petition complaint instituted in the name of the accused petitioner herein, and, also his being described to be the proprietor of M/s. Thind Traders, is a valid motion, for the drawing of a valid prosecution against the accused petitioner herein, qua an offence, constituted under Section 138 of ‘the Act’. Clause (a) of the explanation as occurs in Section 141 of ‘the Act’ describes, a ‘Company’ to not only include any corporate body, but also makes a firm, or, other association of individuals, to become included within the realm of statutory coinage ‘Company’, and, besides when clause (b) thereof, when defines a ‘Director’, it makes the said statutory phrase, to in relation to a firm, to also include a partner in a firm. If so, when the statutory signification assigned to a ‘Company’, does visibly cover not only any corporate body, but also covers a firm, or other association of individuals, therefore, not only a corporate entity either private, or, public limited becomes a ‘Company’, for the purpose of application thereons of Section 141 of ‘the Act’, but also a firm, or, other association of individuals, do also, become covered by Section 141 of ‘the Act’, besides a partner in a firm when is given the colour of a Director of a firm, also does become covered for the relevant purpose. In consequence, even the sole proprietary entity namely M/s Thind Traders, though is obviously solitarily owned by Sardar Bhupender Singh, yet, the said juristic person, or, legal entity rather becomes ‘a person’ committing an offence under Section 138, and, besides the said juristic person, is also a ‘Company’. Therefore, not only the juristic entity concerned, was amenable for being arrayed as an accused in the petition complaint, but also all those persons responsible to the sole proprietary concern, for the conduct of its business were also required to be arrayed as accused in the memo of parties of the petition However, a close reading of the above memo of parties, appertaining to the extant complaint, reveals that the sole proprietary concern, inasmuch as, M/s Thind Traders has not been arrayed as an accused, but only its sole proprietor Sardar Bhupinder Singh has been arrayed as an accused. In consequence, when the arraigning of the sole proprietary concern rather was a condition precedent for making the complaint well constituted, as it becomes the principal offender, and, with its remaining un-impleaded, as such, the absence of its impleadment cannot make the instant complaint to be well constituted, nor, any valid prosecution can in its absence, be drawn, even against the accused petitioner, who can be assigned only a vicarious liability alongwith it.
Cash system of accounting – TDS credit allowable in year in which Receipts Are
Offered to Tax
Case Name : N.C. Rajagopal & Co. vs DCIT (ITAT Chennai) Appeal Number : ITA No.779/Chny/2020
Date of Judgement/Order : 12/05/2022
Related Assessment Year : 2018-19
During appellate proceedings, the assessee submitted that the receipts have been offered on cash basis and therefore, TDS credit would be available as per Sec.199 of the Act i.e., in the year in which the respective receipts are offered to tax. In support, the assessee also filed statement showing TDS credit available from AYs 2014-15 to 2018-19. However, Ld. CIT(A) held that TDS credit could be given only to the extent of TDS as available in Form 26AS of the relevant year. Aggrieved, the assessee is in further appeal before us. We find that Ld. CIT(A) has completely overlooked the fact that the assessee was following cash system of accounting and the TDS credit would be available in accordance with the provisions of Sec.199 of the Act i.e., in the year in which the respective receipts are offered to tax. In support of the claim, the assessee has filed complete statement showing TDS credit available from AYs 2014-15 to 2018-19. The assessee has to be allowed unclaimed TDS of earlier years and there is no justification to restrict the credit only to the extent to which it is available in Form 26AS of this year. The Ld. CIT(A) is directed to verify the statement and allow TDS credit in accordance with law. This ground stand allowed for statistical purposes.
Belated ITR filing due to technical issues – Carry-forward of losses allowed Case Name : Tenovia Solutions Pvt. Ltd. vs ADIT (ITAT Chennai)
Appeal Number : ITA No.490/Chny/2021 Date of Judgement/Order : 11/05/2022
Related Assessment Year : 2019-20
The assessee suffered business-loss during the year and claimed carry-forward of losses for Rs.57,69,223/-. However, CPC has reduced the same to Rs.63,849/-. This was due to the fact that the last date of filing return of income was 31.10.2019. However, the return was filed 12 minutes and 31 seconds past midnight and hence the filing date was reckoned as 01.11.2019. In the statement of facts filed during appellate proceedings, the assessee submitted that it was trying to upload the return on the website of Income Tax Department for 21 hours on 31.10.2019. However, due to rush and technical snag on the website, the delay of 12 minutes and 31 second occurred and accordingly, the return was reckoned as belated return which ultimately led to denial of carry-forward of losses. There was no willful and mala-fide intent to make a default and to forgo the benefit of carry-forward of losses. The cause of delay was genuine. However, Ld. CIT(A) observed that as per CBDT Circular No. 9/2015 dated 09.06.2015, specified Income Tax Authorities were vested with the powers of condonation of such delay u/s 119(2)(b) of the Act. Therefore, the ultimate remedy was to seek condonation before concerned Pr.CIT and the assessee had already filed an application with concerned Pr.CIT which was still pending. Therefore, the benefit of carry-forward of losses could not be allowed to the assessee. Aggrieved, the assessee is in further appeal before us. When the petitioner is entitled to claim the carry forward loss under Section 139(3) of the Income Tax Act, it cannot be stated that the delay in filing the return had occurred deliberately or on account of culpable negligence or on account of mala-fides. Further, the petitioner does not stand to benefit by resorting to delay. In fact, they run a serious risk. Moreover, when the petitioner had satisfactorily explained the delay in filing the said return, the approach of the first respondent should be justice oriented so as to advance the cause of justice. In this case, when the petitioner as a litigant is entitled to claim carry forward loss, mere delay should not defeat the claim of the petitioner. The division bench, while confirming this decision, further held that one should take judicial notice of the fact that uploading of Return requires not only an effort but also consumes sometimes. If the assessee has encountered certain hardship or difficulty in uploading his return, due to a technical-snag in the website of the Income-tax Department due to the last hour rush of filing of returns, the delay deserves to be condoned. Therefore, on the facts and circumstances of the case, we set- aside the impugned order and restore the matter back to the file of Ld. CIT(A) to verify the fact that there was only a minor delay of 12 minutes and 31 seconds in filing of return of income as pleaded by the assessee. If so, the return filed by the assessee would be considered as a return filed u/s 139(1) and the benefit of carry-forward of losses would be allowed in accordance with law.
Freebies to Doctors – CBDT circular not applies to gift to traders & distributors
Case Name : DCIT vs Medi Sales India Pvt. Ltd. (ITAT Chennai) Appeal Number : ITA Nos. 2996 & 2997/Chny/2017 Date of Judgement/Order : 13/05/2022 Related Assessment Year : 2013-14
Issue– Disallowance by the AO by not allowing assessee’s claim holding that the CBDT Circular No. 5/2012 dated 01.08.2012 applies only to pharmaceutical manufacturers and not to distributors like the assessee. Upon careful consideration of material facts, it could be gathered that the assessee merely acts as a trader and distributor of generic medicines. It sells goods to traders and small distributors and to incentivize the chain, it offers gifts which are in the shape of gold items and novelties. There is no evidence on record that the assessee was giving such gifts to doctors and medical professionals. The Ld.AO has made the allegations without proving this fact. No investigation whatsoever has been carried out to support the same. In such a case, CBDT circular would have no applicability to the case of the assessee. As noted in the impugned order, the business promotion expenses as incurred by the assessee were a normal business practice and net expenditure was merely 1% of total turnover of the
assessee. The assessee has already produced invoices, vouchers and ledgers extracts to support the expenditure. At the same time, considering the nature of expenditure, personal element could not be ruled out. Therefore, on the given facts and circumstances, we are of the considered opinion that Ld. CIT(A) has clinched the issue in correct perspective. However, the estimation of 10% as made by Ld. CIT(A), in our opinion, was on the higher side considering the fact that the assessee had produced all the relevant documentary evidences, invoices and ledger extracts etc. and no defect could be pointed out by Ld. AO in the same. Therefore, we direct Ld. AO restrict the disallowance to 5% of net expenditure instead of 10% as upheld by Ld. CIT(A) in the impugned order.
Loss from share trading can be set off against business income Case Name : Jitendra Manilal Malkan vs. ITO (ITAT Ahmedabad) Appeal Number : ITA No. 69/Ahd/202
Date of Judgement/Order : 31/05/2022
Related Assessment Year : 2012-13
It is observed that during the year the assessee had purchased 34 different scripts and out of which he had sold 32 scripts and did not sell only two scripts (Bombay Rayon fashion and Central Bank of India). Further, out of 32 scripts sold by the assessee during the year, 29 scripts were completely sold while three scripts were partly sold. From the assessee’s conduct, it is evident that the shares were not purchased for purpose of holding them as investment and the fact that most of the shares were sold by the assessee during the first itself indicates that the assessee intended to purchase and sell shares as business activity and not to hold shares on long-term basis for earning capital gains or earning dividend income. The CBDT has also issued guidelines for assessing officers on tests for distinction between shares held as stock-in-trade and shares held as investment vide office memorandum, dated 13.12.2005 [F. No. 149/287/2005-TPL] and one of the criteria mentioned therein is whether, the purchase is made solely with the intention of resale at a profit or for long-term appreciation and/or for earning dividends and interest and also the typical holding period for securities bought and sold. We see that in instant facts, almost all the shares which the assessee purchased during the year were sold by him. As noted above, out of 34 stocks purchased during the year, the assessee sold 32 of those scripts, which is a clear indicator that the intention at the time of purchase of scripts was to sell them at a profit. On the issue that the assessee has employed his own capital or reflected shares as investment, we note that in the case of CIT v Naishad I. Parikh  39 taxmann.com 191 (Gujarat), the Gujarat High Court held that where assessee claimed share trading and future options losses and further, assessee had substantiated entire transactions by furnishing valid and statutorily accepted documents, merely debiting directly these items in capital account instead of in profit and loss account and, not routing share trading account through audited account under section 44AB, could not be a ground to disregard legally acceptable claim of assessee. In our considered view, therefore, the assessee has been able to substantiate that the shares were purchased for the purpose of trading and earning profit and not for purpose of holding them as investment to earn capital gains / dividend income. This is this is evident from the fact that during the first year itself, almost all of the scripts purchased by the assessee were sold by him. Respectfully following the decision of Gujarat High Court in the case of Naishad I. Parikh supra, we hold that the Learned CIT (A) has erred in facts and law in holding that the loss from sale of shares was short-term capital losses and hence not eligible for set of against income from profession of the assessee.
DGFT & CUSTOMS UPDATE
By CA. Ashit K. Shah
1. Notifications issued under Customs Tariff:
|Importers and the Exporters, who are receiving the supply from the importers for the intended purpose, shall follow the procedure, as applicable, in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 – IGCR, as amended from time to time, with effect from the 1st October, 2022||07-09-2022|
|An export duty of 20% on Rice in Husk (Paddy or Rough), Husked (Brown Rice) and Semi-milled or Wholly milled Rice whether or not polished or glazed other than par-boiled rice and basmati rice has been imposed by the Government. This would lead to lowering of prices of rice.||08-09-2022|
|CBIC amends notification No 25/2021-Customs to amend prescribed Tariff Rate Quota (TRQ) for specialty sugar to 30,000 tons.||28-09-2022|
|28/2022 – ADD||Impose Anti-Dumping duty on “Toluene Di-Isocyanate (TDI)” covered under tariff item 2929 10 20, originating in or exported from China PR, Japan and Korea RP, for a period of 5 years, in pursuance of sunset review final findings issued by DGTR.||21-09-2022|
2. Circulars issued under Customs:
|17/2022||Customs procedure for export of cargo in closed containers from ICDs to Bangladesh using Inland Waterways.||09-09-2022|
|18/2022||Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 notified vide Notification 74/2022 dated 9th September, 2022.||10-09-2022|
|19/2022||Transhipment through India of containerized export cargo of Bangladesh destined for third countries using Riverine and Land routes.||14-09-2022|
|21/2022||Amendments to Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)||26-09-2022|
|22/2022||Amendments to Rebate of State and Central Taxes and Levies (RoSCTL) Scheme||26-09-2022|
3. Notifications under DGFT:
|31/2015-2020||Amendment in Export Policy of Broken Rice under HS code 1006
40 00 from to “free” to “prohibited” w.e.f. 09-09-2022. The provisions as under Para 1.05 of the Foreign Trade Policy, 2015- 2020 regarding transitional arrangement shall not be applicable under this Notification.
|32/2015-2020||Amendment in Import Policy of PET Flakes under Chapter 39 of ITC (HS), 2022, has been permitted subject of NOC from MoEF & CC and an authorization from DGFT.||14-09-2022|
|34/2015-2020||Extension for the period of exports of broken rice (HS code 1006 40 00) from 15th September, 2022 till 30th September, 2022 as mentioned in Notification No. 31 dated 08.09.2022.||20-09-2022|
|36/2015-2020||Amendment in Import Policy of Areca Nuts under chapter 080280 of Chapter 08 with condition of 17,000 MT of Fresh (green) Areca Nut without Minimum Import Price (MIP) condition shall be allowed from Bhutan every year through LCS Jaigaon subject to valid Registration Certificate issued by DGFT.||28-09-2022|
|37/2015-2020||The existing Foreign Trade Policy 2015-2020 which is valid up to 30-09-2022 is extended up to 31-03-2023.||29-09-2022|
CHARITABLE TRUSTS UPDATES
By Adv. Hemant Gandhi &
CONTRIBUTION TO CHARITY COMMISSIONER (SECTION 58) (SCHEDULE IXC)
A public trust (other than one which is exempt) having gross annual income (from all sources) exceeding Rs. 25,000 has to pay contribution to the Public Trust Administration Fund @2%. Gross annual income excludes corpus donations. Contribution is payable @ 2% on the gross annual income after making the deductions prescribed in Rule 32 which are stated hereunder:
- Donations received from other public trusts and dharmadas
- Grants received from government & local authorities
- Interest on sinking and depreciation fund
- Amount spent for education/ medical relief/veterinary treatment of animals
- Expenditure incurred from donations for relief of distress caused by natural calamity
- Deduction of land revenue, rent payable to landlord, cost of production out of income from land used for agricultural purpose
- Deductions of municipal taxes, ground rent, cesses, insurance premia, repairs @10% of gross rent and cost of collection at 4% of gross rent of let out buildings out of income from lands (including buildings) used for non-agricultural purposes
- Cost of collection of income or receipts from securities, stock, etc. @1% of such income
- Deduction in respect of repairs of building (yielding no income) @10% of estimated gross annual rent.
The following trusts are exempt from payment of contribution —
- Public trusts having gross annual income of Rs. 25,000 or less
- Public trusts exclusively for advancement/propagation of education/medical relief/veterinary treatment
- Recognised public libraries and reading rooms
- Public trusts exclusively for the purpose of relief of distress caused by scarcity, drought, flood, fire, or any other natural calamity.
However at present no contribution is being collected by Charity Commissioner’s office, the matter is under litigation in the Honourable Bombay High Court and a decision is expected soon.
INVESTMENTS (SECTION 35)
A public trust can invest its funds in any of the following modes:
- scheduled bank as defined in RBI Act, 1934
- postal savings bank
- co-operative bank approved by State Government
- public securities being securities of Central/State Government (includes Units of UTI)
- first mortgage of immovable property situated in India provided the property is not leasehold for a term of years and the value of the property exceeds by one half of the mortgage money.
- any other investment permitted by Charity Commissioner.
BUDGET (SECTION 31A & RULE 16A)
Trustee of every public religious trust having annual income exceeding Rs. 5000 and Rs. 10000 in case of other trusts has to prepare and submit the budget to the Charity Commissioner, one month before the commencement of the accounting year. The budget has to be prepared as per format given in Schedule VIIA. Every such budget shall make adequate provision for carrying out the object of the trust, and for the maintenance and preservation of the trust property.
PONDER OVER YOUR FUTURE
By Mr. Tushar P. Joshi
In our childhood we used to play donkey’s tail? On a black board or chart paper, a donkey is drawn without a tail. Each child was blindfolded and then given one chance to mark the tail of the donkey. The child who draws the tail nearer to the donkey, won the prize.
Well, going on an investment path without any goal is like playing donkey’s tail. You don’t know where you are heading to? If the place you actually reach is where you desired to be, consider yourself lucky!!!
In your mind you may be pondering as to whether you should buy a new iPhone14/iPad? Or should start an SIP? (Systematic Investment Plan) which your friend was talking about? Or planning you can afford to go for a weekend now? Should you make a prepayment of your home loan? Or invest in the equities instead, since the market is bearish? Is your insurance adequate? These are all questions in your mind to which clear answer can only come if you have visualised the goals to be achieved in near & far future.
First you need to look at your lifestyle and then think of your financial goals – classified into short-term, medium-term and long-term? Depending on the type of person you are & the stage of life you are at present in, you will have a set of goals, different from what you may have a few years later and in all likelihood different from your friend’s. Gadgets and holidays till you are single, a four-wheeler when newly married, school and a house till you have kids, their college and your retirement as you reach your 50s. Whatever the case, you need to identify your periodical goals, qualify them in financial terms and prioritise them.
Such a habit will give you a clear picture of where you are heading to Is the income you are earning enough? Do you need to earn more or do something different? or change your investment pattern? Do you need to change your goals, as they may be unrealistic. In the given present set of circumstances, or can you afford to continue as a contented person?
Take for example, your wish for an iPhone. Now, if you have defined a goal of saving Rs. 2,00,000/- this year, so that, you and your family can go for a holiday to Singapore in the summer and have managed Rs. 1,00,000/- so far. Then you can make a choice. Evaluate what is more important and then decide, rather than being blindly led by wants.
Pursuing this example further, you can define a goal of an iPad and then see how you can put aside some money each month towards this goal, perhaps by skipping eating out and movies for some time. This way you can end up with showing off the pictures of your vacation in Singapore on your iPad.
Defining goals, whether financial or otherwise, give your life a direction, a target for your finance and discipline control on you. The sense of satisfaction you get, when your goals are accomplished one after the other, is like having, a financial freedom.
Even when unfortunate things happen, for instance an accident and suddenly life is out of control, as you know exactly, what are the things that will get affected by the turn of events and how to manage them, rather than being completely lost without idea of how this accident will set you back?
Goals are the compass to your life and something you should take very seriously, and involve your family/spouse in this process of setting them down. It is also important to update and review your goals periodically as a regular habit.
Hence it is rightly said
“Articulating financial goals is the primary step towards getting financial freedom.”
UPDATES ON FINANCE
Highest 1 Year FD Rates (As on 01st October 2022) < Rs 2 Crore.
|Institution||1 Year FD Rate|
|RBL Finance Bank||6.50%|
|Jana Small Finance Bank||6.75%|
|Equitas Small Finance Bank||6.90%|
Note : Senior Citizens would generally get 0.50% more than the above mentioned rates.
Post Office Deposit Rates (As on 01st October 2022).
|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.|
*The Amount was mentioned as 1,50,000/- in the Previous Editions. Kindly read it as 15,00,000/-
Lowest Home loan Rates for Self Employed Professionals (As on 01st October 2022).
|HSBC Bank||6.59% onwards|
|Union Bank of India||7.90% onwards|
|Indian Bank||7.90% onwards|
|Kotak Mahindra Bank||7.99% onwards|
|HDFC Bank||8.10% onwards|
Top Performing Mutual Funds (As on 01st October 2022).
|Fund Name||Current NAV||1 Year Returns|
|Invesco India Infra – Direct (G)||36.04||5.26%|
|Axis Small Cap Fund – Direct (G)||70.34||8.72%|
|Invesco India Infra – (G)||31.48||3.70%|
|Axis Small Cap Fund (G)||62.80||7.09%|
Major Currency Rates (As on 01st October 2022).
|Country||In Rs. on 01/04/22||In Rs. on 01/09/22||In Rs. on 01/10/22||Change MoM (Rs)||YTD Returns|
|United States of America (USA) – USD($)||75.54||79.54||81.63||2.63%||8.06%|
|United Kingdom (UK) –
|European Union (EU) – Euro (€)||83.05||79.84||79.90||0.08%||-3.79%|
Major Commodity Rates (As on 01st October 2022).
|Commodity||Rate on 01/04/22||Rate on 01/09/22||Rate on 01/10/22||Change MoM||YTD Returns|
|Gold (MCX) – 10 Gms||51,290.00||50730.00||50120.00||-1.20%||-2.28%|
|Silver (MCX) – 1 Kg||66,820.00||51600.00||57700.00||11.82%||-13.65%|
|Crude Oil (MCX) – 1 Unit (BBL)||7,726.00||9063.28||8495.59.00||-6.26%||9.96%|
|Index||1st April 2022||1st September 2022||1st October 2022||MoM Returns||YTD Returns|
|Nifty 50 (NSE)||17,436.90||17542.80||17077.95||-2.65%||-2.06%|
|Index||1st April 2022||1st September 2022||1st October 2022||MoM Returns||YTD Returns|
|Dow Jones (USA)||34,818.27||31454.58||28855.25||-8.26%||-17.13%|
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.
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GSTPAM News Bulletin Committee for Year 2022-23
Ashit K. Shah
Sunil D. Joshi
Aloke R. Singh
The opinions and views expressed in this Bulletin are those of the contributors.