Why there is a dire need of lower corporate Tax for New India and other Budget Apprehensions

The Union budget 2019  would be the first full budget during the second term of the Modi government and would be presented on 5 July 2019. To those who believe that Mrs. Nirmala Sitharaman shall be the first women finance minister to present the budget , you should know that the first women to present a Finance...

High Court allowed set-off of credit availed on construction of an immovable property against GST payable on rent income

Safari Retreats Private Limited (“Company”) Vs Chief Commissioner of Central Goods & Service tax (Orissa High Court) The Company is mainly carrying on business activity of constructing shopping malls for the purpose of letting out of the same. Various materials and other inputs such as Cement, Sand, Steel, Aluminum, Wires, plywood, paint, Lifts, escalators, Air-Conditioning plant, Chillers, electrical equipments, DG...

Tax Incentive for Employment Generation (Section 80JJAA of Income Tax Act)

Background Section 80JJAA was introduced to provide incentives to industries to generate employment for semi-skilled and unskilled labours. It was amended by Finance Act, 2016 and again under Finance Act, 2018. We have summarized important provisions as below. Eligibility for claiming deduction under 80JJAA Assessee should be subject...

Reconciliation of Input Tax Credit Availed & Claim the missed Credit for FY. 2017-18

This article analyzes legal position under GST law with regards to claiming an input tax credit for the financial year 2017-18. Section 16(4) of the CGST Act, 2017 provides for the time limit within which input tax credit (ITC) needs to be claimed. ITC in respect of invoices issued in FY 2017-18 cannot be claimed after...

GST update – Clarifications on treatment of various sales promotion schemes provided by CBIC through circular

CBIC has clarified various doubts as regards treatment of various sales promotional schemes under GST vide circular 92/11/2019 dated 7th March 2019 to ensure uniform implementation of the law. Summary of the said circular is as below. Free Samples & Gift It is clarified that samples which are supplied free of...

GST Update – CBIC notifies return due dates and applicability of pronouncements made by GST council in Jan. 2019

Highlights of notifications issued by CBIC dated 7th March 2019 are as below. Increase in turnover threshold limit for dealers under composition scheme Threshold limit of aggregate turnover for composition scheme dealers u/s.10 of CGST Act has been enhanced to Rs. 1.5 crore during previous financial year. This will...

Supreme Court Ruling on applicability of PF on allowances

Background The Supreme Court verdict dated 28 February 2019 in the case of Regional Provident Fund Commissioner West Bengal v. Vivekananda Vidayamandir and others reiterated the salutary principles of ascertaining components of salary to be considered for the calculation of provident fund (PF) contribution by the employer and deduction from employees’ salary. This...

Salient features of Banning of Unregulated Deposit Scheme Ordinance, 2019 restricting acceptance of loans & deposits from any person other than relatives

Ministry of Law and Justice notified The Banning of Unregulated Deposit Schemes Ordinance 2019 vide notification published in official Gazette on 21st February 2019. It provides a comprehensive mechanism to ban the unregulated deposit schemes and to protect the interest of depositors and matters connected thereto. This bill could not be passed in the house of Rajyasabha...

KYC for Companies to be filed with Registrar latest by 25th April, 2019 as notified by MCA

Ministry of Corporate Affairs (MCA) has introduced KYC of Companies by inserting Rule 25A under Companies (Incorporation) Rules, 2014. This has been notified by MCA vide notification dated 21st February 2019 and shall be effective from 25th February 2019. Below are the highlights of the requirements of Rule 25A. Every Company incorporated on or before 31st...

Government proposed to reduce ESIC contribution rates for company & employees

Currently Employees earning gross salary upto Rs.21,000 per month are required to contribute 1.75% of the wages earned towards contribution to Employee State Insurance Corporation (ESIC) and Company (employer) needs to contribute 4.75% of the wages paid/payable. The Government is considering to lower the Employee’s Contribution Rate to 1% and that of Company’s to 4% (i.e. reduction...
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