// archives

Opinion

This tag is associated with 112 posts

Concessional Income Tax Rate of 22% for Domestic Companies

[Source: www.taxmann.com] Finance Minister Nirmala Sitharaman promulgated the Taxation Laws (Amendment) Ordinance, 2019 on 20 September 2019 to further reduce the corporate tax rate for companies not availing specified tax exemptions. The Ordinance was replaced by the Taxation Laws (Amendment) Act, 2019 (‘the Amendment Act’) on receiving the assent of the President on 11 December […]

Scheme for manufacturing and Processing in a bonded facility – GST Impact

[Source: ICAI GST Newsletter; Author: CA Abhishek Agarwal] BONDED MANUFACTURING SCHEME Government along with CBIC in order to promote India as the manufacturing hub globally, to promote make in India initiative and to facilitate ease of doing business has come up with the bonded manufacturing scheme. Under this scheme any person undertaking manufacturing or other […]

COVID-19 will change how companies report earnings – 20 point checklist for CFOs

[Source: www.businessinsider.com] The COVID-19 pandemic has had an adverse impact on all aspects of the economy, be it earnings, supply chains, operational efficiencies and the stock markets. Since the financial year ends on March 31, 2020 in India, it falls amidst the COVID-19 pandemic. This will have an impact on the way companies report their […]

Covid19 relief on GST Rule restricting ITC to 10%

According to sub-rule (4) in Rule 36 of CGST Rules introduced w.e.f. 9-Oct-2019, a registered person can avail ITC in respect of the invoices, the details of which have not been uploaded by the suppliers and reflected in GSTR-2A of the registered person availing ITC, only to the extent of 20% of the total eligible […]

India should adopt Singapore’s ‘GST voucher scheme’ to help lower, middle income groups

[Source: www.economictimes.com] Singapore’s Goods and Services Tax (GST) voucher scheme should be adopted in India to bring huge positive impact for those in the lower and middle income groups, say tax experts. “An interesting aspect of Singapore GST that can be adopted in India is the voucher system which provides benefits even to non-registered citizens […]

What is Unregulated Deposit Scheme Ordinance, 2019?

[Source: www.taxmann.com; Editorial Team] The President of India has promulgated ‘The Banning of Unregulated Deposit Scheme Ordinance, 2019’ on February 21, 2019. The Ordinance aims to provide comprehensive and unified mechanism to ban the unregulated deposit schemes (or Ponzi schemes or Pyramid Schemes) and to protect the interest of depositors. The Ordinance clearly defines ‘Regulated […]

Profit On Transfer Of Shares Acquired Under Stock Option Plan Taxable As ‘Capital Gain’ Not ‘Salary’

[Source: www.mondaq.com; Article by Vinita Krishnan & Shabnam Shaikh, Khaitan & Co] The Chennai Bench of the Income Tax Appellate Tribunal (Tribunal) in a recent ruling in Dr. Muthian Sivathanu v Assistant Commissioner of Income-tax [ITA No. 553/2018] held that proceeds received on sale of shares acquired pursuant to exercise of an employee stock option […]

Prosecution under Income Tax: Section 278E carves out an exception to the rule of mens rea

[By Shaleen Shah (Partner), VNCA] ‘Mens rea’ can be loosely translated as ‘guilty mind’, and it is a vital component when attempting to assess the criminal liability of an individual.  The rule of mens rea says that an act itself does not make a person guilty of a crime, unless their mind is also guilty. […]

Checklist for GST ITC review for FY 17-18

[By Shaleen Shah (Partner), VNCA] Each business entity needs to carry out input tax credit (ITC) review before due date for filing of September 2018 return. The review should cover the following: ITC for FY 17-18 is getting time barred on 31-Oct-2018.  According to GST rules, if the taxpayer forgets to claim ITC for an […]

ITC matching & closing books for FY 17-18

[By Shaleen Shah (Partner), VNCA] GST law has introduced a concept of `matching’ which forms the backbone of ITC (Input Tax Credit). Under the matching concept, having a prescribed document in the form of a Tax Invoice or Debit Note is not in itself sufficient to claim ITC. Without getting into the details of the […]