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This tag is associated with 115 posts

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 […]

GST & issues related to Job Work

[By Shaleen Shah (Partner), VNCA] This synopsis on the aforesaid subject is based on the provisions of GST Act & Rules and Circular No. 38/12/2018-GST dtd. 26-Mar-2018. “Job work” means any treatment or process undertaken by a person on goods belonging to another registered person. The registered person on whose goods (inputs or capital goods) […]

Understanding The Benami Law In India: FAQs

[Source: www.mondaq.com; Article by Bharat Chugh and Kushank Sindhu, Luthra & Luthra Law Offices] In the last few months we have seen a major crackdown on Benami properties and their owners by the Government. Specialised Anti-Benami units have been set up by the Income Tax department across the country and in almost every state and […]

Recent GST Articles

The following are our GST Articles recently published elsewhere. What is GST? GST, an acronym for Goods & Services Tax, is an indirect tax. An indirect tax is a tax levied on goods and services as opposed to direct tax which is levied on income or profits (Income Tax). ….read more How is Indian GST […]

Overview of restrictions on Cash Transactions under Income Tax law

[By Jyotish M. Shah (Partner), VNCA] Section Nature of restriction Consequence of Contravention 40A(3)/(3A) Expenditure in Cash exceeding Rs.10,000/- Expenditure will not be allowed. 43 Payment for Asset exceeding Rs.10,000/- in Cash This payment will not be considered as part of Actual cost of an Asset. 35AD Payment for Capital expenditure exceeding Rs.10,000/- in Cash […]