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 labors. 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 to tax audit u/s. 44AB of Income Tax Act and has profit or...

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 of 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. It provides that ITC in respect of any invoice or debit note pertaining to a particular financial year (FY...

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 law. Summery of the said circular is as below. Free Samples & Gift: It is clarified that samples which are supplied free of cost without any consideration do not qualify as "supply" under...

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 be applicable effective from 1st April, 2019. For 7 notified...

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 can be considered as...

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 however, President...

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 requirements of Rule 25A. Every Company incorporated on or before 31st December 2017 is required to file...

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 of 0.75%...

Norms for Angel tax relaxed; no tax on issuance of shares up to Rs. 25 crore

The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a new notification in supersession of its earlier notification no. GSR 364(E), dated 11-04-2018. The DPIIT has extended the definition of the start-up and also relaxed norms for the purpose of claiming exemption from applicability of provision of section 56(2)(viib) of the Income-tax Act, 1961 (herein after...

GST Update – Circulars issued by CBIC related to returns & invoices

GST Policy Wing, CBIC has issued three circulars on 18th February, 2019 as listed below in brief. 1. Circular No. 90/09/2019 - GST dated 18-02-19:  All registered persons making supply of goods or services or both in the course of inter-State trade or commerce to specify the place of supply along with the name of the State in the tax invoice. Sections...
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