MCA extends due date for filing ROC Annual Returns

MCA extends due date for filing ROC Annual Returns

General Circular No. 13/2019
F.No. 01/34/2013 CL-V
Government of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shastri Bhawan,
Dr. Rajendra Prasad Road, New Delhi-1
Dated: 29.10.2019

To
All Regional Directors,
All Registrar of Companies,
All Stakeholders.

Subject: Relaxation of additional fees and extension of last date in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013- – reg.

Sir,

Keeping in view the requests received from various stakeholders seeking extension of time for filing of financial statements for the financial year ended 31.03.2019 on account of various factors, it has been decided to extend the due date for filing of e-forms AOC-4, AOC (CFS) AOC-4 XBRL upto 30.11.2019 and e-form MGT-7 upto 31.12.2019, by
companies without levy of additional fee.

2. This issues with the approval of the competent authority.

Yours faithfully,

(KMS Narayan)
Assistant Director (policy)

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Stake sale by ICICI Bank in GSTN

Stake sale by ICICI Bank in GSTN

One of the Private sector banks, and a stake holder in GSTN, ICICI Bank has exited the GSTN, the not to profit non Government company facilitating collection of the indirect tax, by selling its entire 10 per cent stake to as many as 13 state governments.

The Stake transfer to various State Governments is scheduled to be completed by the end of March 2020. The bank will transfer 0.14 per cent stake to the Assam government and 0.81 per cent stake to the Telangana government. Besides, it will transfer Goa, Kerala, Manipur, Tripura, West Bengal, Delhi, Jharkhand, Uttar Pradesh, Chhattisgarh, Madhya Pradesh and Arunachal Pradesh governments 0.82 per cent stake each. ICICI Bank has exited the company following the government of India’s decision to make GSTN into a public sector entity last year.

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CBIC Extends the last date for filing of FORM GST CMP-08

CBIC Extends the last date for filing of FORM GST CMP-08

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i)]

Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs

Notification No. 50/2019 – Central Tax

New Delhi, the 24th October, 2019

G.S.R……(E). – In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2019- Central Tax, dated the 23rd April, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 322(E), dated the 23rd April, 2019, namely:–

In the said notification, in paragraph 2, after the first proviso, the following proviso shall be inserted, namely: –

“Provided further that the due date for furnishing the statement containing the details of payment of self-assessed tax in said FORM GST CMP-08, for the quarter July, 2019 to September, 2019, or part thereof, shall be the 22nd day of October, 2019.”

2. This notification shall be deemed to have come into force with effect from the 18th day of October, 2019.

[F. No. 20/06/07/2019-GST]

(Ruchi Bisht)
Under Secretary to the Government of India

Note: – The principal notification No. 21/2019-Central Tax, dated the 23rd April, 2019 was published in the Gazette of India, Extraordinary, vide number G.S.R. 322(E), dated the 23rd April, 2019 and was last amended by notification No. 35/2019-Central Tax, dated the 29th July, 2019, published in the Gazette of India, Extraordinary, vide number G.S.R. 534(E), dated the 29th July, 2019.

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CAs cannot list with online Application based service provider Aggregators: ICAI

CAs cannot list with online Application based service provider Aggregators: ICAI

Recently many representations were filed with ICAI that CA’s were getting registered with sites like Urbanclap and were giving services through it. This was a disgrace on reputed profession like CA.

We have also published a  Representation filed By CA Keshav Garg to ICAI president against CAs enrolled with Urbanclap.

We are happy to announce that ICAI has also given a nod that these kind of activities are not permissible. The Announcement is givwn below for referance.

Announcement

Ethical Standards Board
The Institute of Chartered Accountants of India

Sub.: Members in Practice listing themselves and their services with Online Application based service provider Aggregators

It has come to the notice of the Institute that members in practice are listing with certain online Application based service provider Aggregators, wherein other businessmen, technicians, maintenance workers, event organizers etc. are also listed.

As the members are aware, entries in respect of Chartered Accountants and Chartered Accountant Firms are permitted in the following circumstances:-

1.“Publication of Name or Firm Name by Chartered Accountants in the Telephone or other Directories published by Telephone Authorities or Private Bodies” (Pages 137– 138 of Code of Ethics, 2009):-

“The Council has considered the question of permitting entries in respect of Chartered Accountants and their firms under specified groups in telephone/trade directories brought out by government and nongovernment agencies. It has decided to permit such entries subject to the following restrictions:-

1. The entry should appear in the section/category of „Chartered Accountants‟.

2. The member/firm should belong to the town/city in respect of which the directory is being published.

3. The entry should be in normal type of letters. Entry in bolder type or abnormal type of letters or in a box is not permissible.

4. The order of the entries should be alphabetical and logical.

5. The entry should not appear in a manner giving the impression of publicity/advertisement. Entry should not be given in a manner which gives prominence to it as compared to other entries.

6. The payment, if any, for the entry should not be unreasonable.

7. The entries should not be restricted and should be open to all the Chartered Accountants/firms of Chartered Accountants in the particular city/town in respect whereof the directory is published.

8. Subject to the above conditions, the members can also include their names in trade directories which are published and/or otherwise available such as electronic media e.g. internet, telephone services like “Ask Me Services” etc.

2.Advertisement Guidelines issued by Council under Clause (7) of Part-I of First Schedule to The Chartered Accountants Act, 1949 (appearing at pages 309 – 312 of Code of Ethics, 2009). The extract of these Guidelines is reproduced hereunder:-

“The Members may advertise through a write up setting out their particulars or of their firms and services provided by them subject to the Advertisement Guidelines and must be presented in such a manner as to maintain the profession‟s good reputation, dignity and its ability to serve the public interest.

XX                                 XX                                  XX

4. Other Conditions

The write-up should not be false or misleading and bring the profession into disrepute.

(ii) The write-up should not claim superiority over any other Member(s)/Firm(s).

(iii) The write-up should not be indecent, sensational or otherwise of such nature which may likely to bring the profession into disrepute.

(iv) The write-up should not contain testimonials or endorsements concerning Member(s).

(v) The write-up should not contain any other representation(s) that may like to cause a person to
misunderstand and/or to be deceived.

(vi) The write-up should not violate the provisions of the „Act‟, Rules made there under and „The Chartered Accountants Regulations, 1988‟.

(vii) The write-up should not include the names of the clients (both past and present)

(viii) The write-up should not be of font size exceeding 14.

(ix) The write-up should not contain any information other than stated in Para 3 hereinabove.

(x) The write-up should not contain any information about achievements/award or any other position held.

(xi) The particulars of information required at para (ii) of 3(A) [i.e Membership No. with the Institute] and para (ii) of 3(B) [Firm registration No. with the institute] above is mandatory.

As it is clear, the purpose of both of these Guidelines is different, and accordingly, there is demarcation of what can be mentioned vide these Guidelines respectively. It has been noted that the Application based service provider Aggregators are having features which are not covered exclusively in any one of the above Guidelines. Further, these Application based service provider Aggregators are also having certain features which are not covered in both of the abovementioned Guidelines.

Therefore, it is not permissible for members to list themselves with such Application based service provider Aggregators.

Any failure to do so would be deemed as violative of the provisions of Clauses (6) and (7) of Part-I of First Schedule to The Chartered Accountants Act, 1949, resulting in professional misconduct, whether or not the professional services mentioned by them are actually provided through such Aggregators. The disciplinary proceedings would be initiated accordingly.

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Exemptions of GST on TDR and FSI for construction of residential apartments

Exemptions of GST on TDR and FSI for construction of residential apartments

Entry number 41A has newly been inserted with effect from 1^st April 2019 to include exemption relating to transfer of development rights and floor space index for construction of residential apartment under GST.

Accordingly the service by way of transfer of development rights (herein referred to as TDR) or floor space index (FSI) (including additional FSI) on or after 1^st April 2019 for construction of residential apartments by a promoter in a project intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, wherever required, by the competent authority or after its first occupation whichever is earlier.

Computation of amount of exemption : The amount of GST exemption available for construction of residential apartments in the project under this notification shall be calculated as under:-

GST payable on TDR or FSI (including additional FSI) or both for construction of the project/carpet area of the residential apartments in the project ÷Total carpet area of the residential and commercial apartments in the project

Conditions :-

1.) Promoter liable to pay tax on reverse charge mechanism basis on unsold flats : The promoter shall be liable to pay tax at the applicable rate on reverse charge basis on such proportion of the value of development rights or FSI (including additional FSI), or both, as is attributable to the residential apartments, which remain on booked on the date of issuance of completion certificate, or first occupation of the project as the case may be in the following manner:-

GST payable on TDR or FSI (including additional FSI) or both for construction of the residential apartments in the project but for the exemption contained herein × carpet area of the residential apartment in the project which remain un-booked on the date of issuance of completion certificate or first occupation ÷ total carpet area of the residential apartments in the project

2.) Maximum amount of tax payable : The tax payable as above shall not exceed 0.5% of the value in case of affordable residential apartments and 2.5 % of the value in case of residential apartments other than affordable residential apartments remaining un-booked on the date of issuance of completion certificate for first occupation.

3.) When is tax payable : The liability to pay Central tax on the said portion of the development rights or FSI, or both, calculated as above, shall arise on the date of completion or first occupation of the project, as the case may be, whichever is earlier

Similar provisions has also been added, relating to exemption of upfront amount in case of long term lease for construction of residential apartments vide entry 41B of notification Number 12/2017, with effect from 1^st April 2019.

Hence, the upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long-term lease of 30 years or more on or after 1^st April 2019, for construction of residential apartments by a promoter in a project intended for sale to a buyer fully or partly except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier has been exempted in the same manner as provided in case of TDR or FSI.

Accordingly all the provisions of TDR or FSI will apply in the same manner to the upfront amount in case of long term lease.

This Article is shared by Tista Athghara . She can be reached at tistaathghara@gmail.com.

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Offences and Penalties under Information Technology Act, 2000

Offences and Penalties under Information Technology Act, 2000

Purpose of Introduction

Information Technology Act, 2000 was enacted on 17^th May, 2000 to provide legal recognition for electronic transactions and facilitate E-Commerce. It was later amended by passing Information Technology (Amendment) Act, 2008.

The following are the important objectives of Information Technology Act, 2000 :

• Grant legal recognition to E-Transactions
• Provide legal recognition to Digital Signatures for authentication
• Facilitate E-Filing of data and information
• Allow Electronic storage of data
• Grant recognition to maintenance of books of accounts in Electronic Form

Penalties, Compensation and Adjudication

Section 43: Where a person without the permission of owner or any other person-in-charge damage the Computer, or Computer System, or Computer Network, the he shall be liable for Penalty and Compensation to such person so affected.

Section 44: Where a person fails to furnish any document, return, report to the controller, or certifying authority, then he shall be liable to pay penalty upto Rs.1,50,000/- per failure. Further where a person fails to furnish any information, books or other documents within time specified, then he shall be liable to pay penalty upto Rs.5,000/- per day. Further provided that where a person fails to maintain books of accounts or other records, then he shall be liable to pay penalty upto Rs.10,000/- per day.

Offences

Section 65 : Any person tamper, conceal, destroy, or alter any computer source document intentionally, then he shall be liable to pay penalty upto Rs.2,00,000/-, or Imprisonment upto 3 years, or both.

Section 66 : Any person dishonestly, or fraudulently does any act as referred in Section 43, then he shall be liable to pay penalty upto Rs.5,00,000/-, or Imprisonment upto 3 years, or both.

Section 66B : Any person dishonestly, or fraudulently receives or retains any stolen computer resource or communication device, then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 3 years, or both.

Section 66C : Any person dishonestly, or fraudulently make use of Electronic Signature, Password or any other Unique Identification Feature of any other person, then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 3 years, or both.

Section 66D : Any person dishonestly, or fraudulently by means of any communication device or computer resource cheats by personating, then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 3 years, or both.

Section 66E : Any person intentionally captures, publishes, or transmits image of private area of any person without consent, then he shall be liable to pay penalty upto Rs.2,00,000/-, or Imprisonment upto 3 years, or both.

Section 66F : Any person does any act electronically, or with use of computer with intent to threaten unity, integrity, security, or sovereignty of India, then he shall punishable with Imprisonment for Life.

Section 67 : Any person publishes, or transmits in electronic form any material which appeals to prurient interest, or if its effect is such as to tend to deprave and corrupt persons who are likely to read, see, or hear matter contained in it, then he shall be liable to pay penalty upto Rs.5,00,000/-, or Imprisonment upto 3 years, or both, And in the event of second or subsequent conviction, he shall be liable to pay penalty upto Rs.10,00,000/-, or Imprisonment upto 5 years, or both.

Section 67A : Any person publishes, or transmits in electronic form any material which contains sexually explicit act, or conduct, then he shall be liable to pay penalty upto Rs.10,00,000/-, or Imprisonment upto 5 years, or both, And in the event of second or subsequent conviction, he shall be liable to pay penalty upto Rs.10,00,000/-, or Imprisonment upto 7 years, or both.

Section 68 : The Controller may, by order, direct a Certifying Authority or any employee of such Authority to take such measures or cease carrying on such activities as specified in the order if those are necessary to ensure compliance with the provisions of this Act, rules or any regulations made there under and if any person who intentionally or knowingly fails to comply with the order, then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 2 years, or both.

Section 69 : Where the Central Government or a State Government or any of its officers specially authorized by the Central Government or the State Government, as the case may be, in this behalf may, if satisfied that it is necessary or expedient so to do, in the interest of the sovereignty or integrity of India, defense of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to above or for investigation of any offence, it may with reasons to be recorded in writing, by order, direct any agency of the appropriate Government to intercept, monitor or decrypt or cause to be intercepted or monitored or decrypted any information generated, transmitted, received or stored in any computer resource, Any person who fails to comply with the order, then he shall be liable to Imprisonment of 7 years, along with the fine (amount of fine is not specified in the act).

Section 70 : The appropriate Government may, by notification in the Official Gazette, declare any computer resource which directly or indirectly affects the facility of Critical Information Infrastructure, to be a protected system, Any person who fails to comply with the notification, then he shall be liable to Imprisonment of 10 years, along with the fine (amount of fine is not specified in the act).

Section 71 : Whoever makes any misrepresentation to, or suppresses any material fact from the Controller or the Certifying Authority for obtaining any License or Electronic Signature Certificate, as the case may be, then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 2 years, or both.

Section 72 : If any person who has secured access to any electronic record, book, register, correspondence, information, document or other material without the consent of the person concerned discloses such electronic record, book, register, correspondence, information, document or other material to any other person, then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 2 years, or both.

Section 72A : If any person who has secured access to any material containing personal information about another person, with the intent to cause or knowing that he is likely to cause wrongful loss or wrongful gain discloses, without the consent of the person concerned, or in breach of a lawful contract, then he shall be liable to pay penalty upto Rs.5,00,000/-, or Imprisonment upto 3 years, or both.

Section 73 : If any person publishes a Electronic Signature Certificate, or make it available to any other person with the knowledge that

• Certifying Authority has not issued it, or
• Subscriber has not accepted it, or
• Certificate has been revoked or suspended

then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 2 years, or both.

Section 74 : If any person knowingly creates, publishes, or otherwise makes available Electronic Signature Certificate for any fraudulent or unlawful purpose, then he shall be liable to pay penalty upto Rs.1,00,000/-, or Imprisonment upto 2 years, or both.

Section 75 : If any person have committed an offence, or contravention committed outside India, and if the act or conduct constituting the offence or contravention involves a computer, computer system or computer network located in India, then the provisions of this Act shall apply also to any offence or contravention committed outside India by any person irrespective of his nationality.

Section 76 : Any computer, computer system, floppies, compact disks, tape drives, or any other accessories related thereto, in respect of which any provision of this Act, rules, orders, or regulations made there under has been, or is being contravened, shall be liable to confiscation. However, if it is proved that such resources were not used in committing fraud then only person in default will be arrested.

Thanks and Regards

Deepak Joshi

CA Final Student

E-mail: deepakjoshi726@hotmail.com

(This article is compiled by Deepak Joshi and any correction and feedback would be greatly appreciated)

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Clarification on Section 67 and 67A (under Information Technology Act 2000)

Clarification on Section 67 and 67A (under Information Technology Act 2000)

Section 67 of Information Technology Act, 2000 (Publishing or transmitting obscene material in electronic form)

Whoever,

Publishes or transmits or causes to be published in the electronic form,

Any material which is lascivious or appeals to the prurient interest or

If its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it,

shall be punished on first conviction with imprisonment of either description for a term which may extend to three years and with fine which may extend to five lakh rupees and in the event of a second or subsequent conviction with imprisonment of either description for a term which may extend to five years and also with fine which may extend to Rs 10 lakh.

Brief Explanation of Each Word

• Lascivious: It is something which excites lust in a person;
• Appeals to: This word here means something which arouses interest in a person;
• Prurient interest: This word here means which is drawn by lustful thoughts;
• Effect: This word here means to cause or change or any event;
• Tend to deprave and Corrupt: This word here means to draw a person towards becoming immoral or bad morally;
• Persons: This word here means natural persons including men, women, children; it does not include any artificial persons;
• Published: This word here means any information which is distributed and broadcasted formally by issuing and selling copies of the same for general public;
• Transmission: This word here means transfer, pass, communicate, a medium for transmitting, signal etc.;
• Caused to be public: This word here means that to give effect of publishing some information by direct or indirect way. It also includes the publishing the certain information by any internet service provider or website server.

Section 67A of Information Technology Amendment Act (ITAA), 2008 (Punishment for publishing or transmitting of material containing sexually explicit acts)

Whoever,

Publishes or transmits or causes to be published or transmitted in the electronic form, any material which contains sexually explicit act or conduct,

shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to Rs 10 lakhs and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to seven years and also with fine which may extend to Rs 10 lakhs.

Exceptions to Section 67 and 67A

Section 67 and Section 67A does not extend to any book, pamphlet, paper, writing, drawing, painting, representation or figure in electronic form-

1. the publication of which is proved to be justified as being for the public good on the ground that such book, pamphlet, paper, writing, drawing, painting, representation or figure is in the interest of science,literature,art,or learning or other objects of general concern; or
2. which is kept or used bona fide for religious purposes.

Relevant Case Studies

Case (1):

The Oshiwara police registered an FIR against Ajay Hatewar for tweeting defamatory statements against chief minister Devendra Fadnavis and posting a picture of the CM enjoying a vacation with his family in 2011-2012.

He has been booked for defamation and also under Section 67 (A) of the IT Act.

Case (2):

A case is tied in with posting obscene, defamatory and irritating message about a divorced lady in the Yahoo message group. Emails were sent to the divorced lady (Victim) for data by the accused through a false email account opened by him for the sake of harassing the victim. These postings brought about irritating telephone calls to the woman.

In light of the woman’s grumbling, the police arrested the accused. Investigation uncovered that he was a known family companion of the victim and was keen on wedding her. She was hitched to someone else, yet that marriage finished in separate and the accused began to call her again by sending such emails. On her hesitance to wed him he began hassling her through web.

The accused was discovered liable for offences under section 469, 509 Indian Penal code, 1860 and Section 67 of Information Technology, Act 2000.

Thanks and Regards

Deepak Joshi

CA Final Student

E-mail: deepakjoshi726@hotmail.com

(This article is compiled by Deepak Joshi and any correction and feedback would be greatly appreciated).

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How to Reduce Size of various PDF or E-Forms on MCA

How to Reduce Size of various PDF or E-Forms on MCA: 

Most of the professionals are woking on MCA for various filing requirement of the MCA. Professionals face difficulty when size of the PDF Forms Increases after they affix DSC. Maximum File limit for MCA is 6MB. So Our form should be of maximum of 6MB. If MCA form size is increased after affixing DSC then we need to reduce the size of the form.

Q. How to limit the PDF file size while affixing the DSC. What should be done to optimize the PDF file size?

Ans. Please follow the below instructions to limit the increase in PDF file size while affixing the Digital Signature Certificate (DSC).

1. Open any PDF file or right click any PDF file.
2. Select Edit > Preferences. The Preferences window is displayed.
3. Select Category: Signature. The Digital Signatures section is displayed.
4. Click “More” button under the Creation & Appearance section.
5. Uncheck “Include signature’s revocation status” option.

Note – The above change in preference settings is specific to each client desktop.

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ICSI : Advisory on Payment of Examination related Fee through Canara Bank Challan

ICSI : Advisory on Payment of Examination related Fee through Canara Bank Challan

ATTENTION STUDENTS !

DECEMBER, 2019 SESSION OF EXAMINATIONS

Dated : 16.10.2019

LAST DATE FOR SUBMISSION OF REQUEST FOR CHANGE OF EXAMINATION CENTRE / COMBINATION OF MODULE(S)/ MEDIUM & PRECAUTION TO BE TAKEN WHILE REMITTING THE FEE THROUGH CANARA BANK CHALLAN

Please note that the facility for submission of change of Examination Centre / Combination of Module(s)/ Medium for the students who have enrolled for December, 2019 Session has been activated effective from 11th October, 2019 and the requests may be submitted upto 4th December, 2019 (16:00 Hours). Thereafter, requests for changes in the examination enrollment status will not be entertained under any circumstances.

The prescribed fee is Rs.250/- per change and the same may be remitted by way of Credit Card/Debit Card/ Net Banking modes. The fee may also be remitted through Canara Bank Challan by depositing the fee by way of Cash in Canara Bank branches.

(In case of submission of request for Change of Examination Centre from any of the Centres located in India to Dubai, Surcharge of US$ 100 or its equivalent amount in Indian rupee i.e. 7165/= will be applicable in addition to the prescribed fee of Rs.250/-).

Students remitting fee through Canara Bank Challan System i.e. by way of Cash at the Canara Bank branches are advised to ensure that the cash is deposited LATEST BY 4th December,2019. It may be noted that in case the cash is deposited after 4th December, 2019 (even if the Challans are generated on a prior date), the requests will be rejected without further notice.

Students are advised to take note for compliance.

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Goods Taken Out of India for Exhibitions – Treatment under GST

Goods Taken Out of India for Exhibitions – Treatment under GST

Several goods are taken out of India on consignment basis for exhibitions or other export promotion events. These goods are sold only when approved by the prospective customers abroad. The unsold goods are then brought back to India. This is a widespread practice in various sectors, including the gems and jewelry industry.

Exporters of these items were facing problems due to the lack of clarity on the procedure to be followed under GST at the time of taking these goods out of India and at the time of their subsequent sale or return to India. Taking cognizance of these problems and in order to help exporters, the Central Board of Indirect Taxes and Customs (CBIC) has now issued a comprehensive clarification in this regard vide Circular No. 108/27/2019-GST dated 18.07.2019.

Clarifications:

It is clarified that the activity of sending / taking the goods out of India for exhibition or on consignment basis for export promotion, except when such activity satisfy the tests laid down in Schedule I of the CGST Act (hereinafter referred to as the “specified goods”), do not constitute supply as the said activity does not fall within the scope of section 7 of the CGST Act as there is no consideration at that point in time. Since such activity is not a supply, the same cannot be considered as ‘Zero Rated Supply’ as per the provisions contained in section 16 of the IGST Act.

Understanding the applicability of ‘supply’ and ‘zero-rated supply’

In the circular, the Central Board of Indirect Taxes and Customs (CBEC) clarified that any activity / transaction would be treated as ‘supply’ only if the following two conditions are satisfied:

• Such activity/transaction should be done for consideration; and
• Such activity/transaction should be done in the course or furtherance of the business.

When the goods are sent/taken out of India for exhibition or on the consignment basis for export promotion, the same would not come within the ambit of ‘supply’ in as much as there is no consideration involved at any point of time.

With regard to the applicability of ‘zero-rated supply’, it has been clarified that only ‘supplies’ which are either export or are supply to Special Economic Zone unit/developer would qualify as zero-rated supply.

Since the goods sent/taken out of India does not qualify as ‘supply’, consequently, the same would also not qualify as ‘zero-rated supply’

Further Clarifications

Since the activity of sending / taking specified goods out of India is not a supply, doubts have been raised by the trade and industry on issues relating to maintenance of records, issuance of delivery challan / tax invoice etc. These issues have been examined and the clarification on each of these points is as under: –

Issue : 1

Whether any records are required to be maintained by registered person for sending / taking specified goods out of India?

Clarification

The registered person dealing in specified goods shall maintain a record of such goods as per the format at Annexure to this Circular.

Issue : 2

What is the documentation required for sending / taking the specified goods out of India?

Clarifications

(a)As clarified above, the activity of sending / taking specified goods out of India is not a supply.

(b) The said activity is in the nature of “sale on approval basis” wherein the goods are sent / taken outside India for the approval of the person located abroad and it is only when the said goods are approved that the actual supply from the exporter located in India to the importer located abroad takes place. The activity of sending / taking specified goods is covered under the provisions of sub-section (7) of section 31 of the CGST Act read with rule 55 of Central Goods & Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”).

(c) The specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules.

(d) As clarified in paragraph 6 above, the activity of sending / taking specified goods out of India is not a zero-rated supply. That being the case, execution of a bond or L UT, as required under section 16 of the I GST Act, is not required.

Issue : 3

When is the supply of specified goods sent / taken out of India said to take place?

Clarifications

(a) The specified goods sent / taken out of India are required to be either sold or brought back within the stipulated period of six months from the date of removal as per the provisions contained in sub‑ section (7) of section 31 of the CGST Act.

(b) The supply would be deemed to have taken place, on the expiry of six months from the date of removal, if the specified goods are neither sold abroad nor brought back within the said period.

(c) If the specified goods are sold abroad, fully or partially, within the specified period of six months, the supply is effected, in respect of quantity so sold, on the date of such sale.

Issue : 4

Whether invoice is required to be issued when the specified goods sent / taken out of India are not brought back, either fully or partially, within the stipulated period?

Clarifications

(a) When the specified goods sent / taken out of India have been sold fully or partially, within the stipulated period of six months, as laid down in sub-section (7) of section 31 of the CGST Act, the sender shall issue a tax invoice in respect of such quantity of specified goods which has been sold abroad, in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules.

(b) When the specified goods sent / taken out of India have neither been sold nor brought back, either fully or partially, within the stipulated period of six months, as laid down in sub-section (7) of section 31 of the CGST Act, the sender shall issue a tax invoice on the date of expiry of six months from the date of removal, in respect of such quantity of specified goods which have neither been sold nor brought back, in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules.

Issue : 5

Whether the refund claims can be preferred in respect of specified goods sent / taken out of India but not brought back?

Clarifications

(a) As clarified in para 5 above, the activity of sending /taking specified goods out of India is not a zero-rated supply. That being the case, the sender of goods cannot prefer any refund claim when the specified goods are sent / taken out of India

(b) It has further been clarified in answer to question no. 3 above that the supply would be deemed to have taken place:

(i) on the date of expiry of six months from the date of removal, if the specified goods are neither sold nor brought back within the said period; or

(ii) on the date of sale, in respect of such quantity of specified goods which have been sold abroad within the specified period of six months

(c) It is clarified accordingly that the sender can prefer refund claim even when the specified goods were sent / taken out of India without execution of a bond or LUT, if he is otherwise eligible for refund as per the provisions contained in sub-section (3) of section 54 the CGST Act read with sub-rule (4) of rule 89 of the CGST Rules, in respect of zero rated supply of goods after he has issued the tax invoice on the dates as has been clarified in answer to the question no. 4 above. It is further clarified that refund claim cannot be preferred under rule 96 of CGST Rules as supply is taking place at a time after the goods have already been sent / taken out of India earlier.

Refund Claim

Question of refund claim arises only in the following two cases:

• Goods sent out of India is not bought back within the stipulated time of 6 months; or
• Goods sent out of India are sold out.

As seen above, goods sent / taken out of India is not covered within the scope of ‘zero-rated supply’ and hence accordingly execution of a bond or LUT is not required.

With regard to the refund claim it has been clarified that, even if the sender has not executed bond or LUT, he would be eligible for refund claim as per provisions of section 54(3) read with rule 89(4) of the CGST Rules.

However, refund claim cannot be filed under rule 96 of the CGST Rules reason being the supply has taken place at a time after the goods have already been sent / taken out of India.

Illustrations

Case – 1

i) M/s ABC sends 100 units of specified goods out of India. The activity of merely sending / taking such specified goods out of India is not a supply.

ii) No tax invoice is required to be issued in this case but the specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules.

iii) In case the entire quantity of specified goods is brought back within the stipulated period of six months from the date of removal, no tax invoice is required to be issued as no supply has taken place in such a case.

iv) In case, however, the entire quantity of specified goods is neither sold nor brought back within six months from the date of removal, a tax invoice would be required to be issued for entire 100 units of specified goods in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules within the time period stipulated under sub-section (7) of section 31 of the CGST Act.

Case – 2

M/s ABC sends 100 units of specified goods out of India. The activity of sending / taking such specified goods out of India is not a supply.

No tax invoice is required to be issued in this case but the specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules. If 10 units of specified goods are sold abroad say after one month of sending / taking out and another 50 units are sold say after two months of sending / taking out, a tax invoice would be required to be issued for 10 units and 50 units, as the case may be, at the time of each of such sale in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules.

If the remaining 40 units are not brought back within the stipulated period of six months from the date of removal, a tax invoice would be required to be issued for 40 units in accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules.

Further, M/s ABC may claim refund of accumulated input tax credit in accordance with the provisions contained in sub ­section (3) of section 54 of the CGST Act read with sub-rule (4) of rule 89 of the CGST Rules in respect of zero-rated supply of 60 units.

Summary of The key points clarified in the Circular are as following:

(a)The activity of taking goods out of India on consignment basis for exhibition would not in itself constitute a supply under GST since there is no consideration received at this time.

(b) The movement of these goods out of India shall be accompanied by a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules.

(c) Since taking such goods out of India is not a supply, it necessarily follows that it is also not a zero-rated supply. Therefore, execution of a bond or LUT, as required under section 16 of the IGST Act, is not required.

(d) The goods taken out of India in this manner are required to be either sold or brought back within a period of six months from the date of removal.

(e) The supply would be deemed to have taken place if the goods are neither sold abroad nor brought back within the period of six months. In this case, the sender shall issue a tax invoice on the date of expiry of six months from the date of removal, in respect of the quantity of goods which have neither been sold nor brought back. The benefit of zero-rating, including refund, shall not be available in respect of such supplies.

(f) If the specified goods are sold abroad, fully or partially, within the period of six months, the supply shall be held to have been effected, in respect of the quantity so sold, on the date of such sale. In this case, the sender shall issue a tax invoice in respect of such quantity of goods which has been sold. These supplies shall become zero-rated supplies at the time of issuance of invoice. However, refund in relation to such supplies shall be available only as refund of unutilized ITC and not as refund of IGST.

(g) No tax invoice is required to be issued in respect of goods which are brought back to India within the period of six months.

Disclaimer : The views and opinions; thoughts and assumptions; analysis and conclusions expressed in this article are those of the authors and do not necessarily reflect any legal standing.

Author : SN Panigrahi, GST & Foreign Trade Consultant, Practitioner, Corporate Trainer & Author.

Available for Corporate Trainings & Consultancy

Can be reached @ snpanigrahi1963@gmail.com

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ICAI Changed Nov 2019 Examination Venue for Few Cities

ICAI Changed Nov 2019 Examination Venue for Few Cities

Important Announcement

October 16th, 2019

Change of Venue in respect of some of the Candidates of Foundation and Final Examinations at New Delhi, in respect of November 2019 Exams

It is hereby informed that due to unavoidable circumstances, the venue of Foundation and Final Examinations scheduled to be held from 1st November 2019 to 18th November 2019 in respect of some of the candidates at New Delhi is being shifted.

Details are as follows:

Shifted from (Existing Venue)	Shifted to (New Venue)	Roll Numbers
Mount Abu Public School Pocket B – 8, Sector – 5 Near Rajiv Gandhi Cancer Institute Rohini DELHI – 110085	Mount Abu Public School Pocket – H, Sector – 18 Rohini Near Samyapur Badli Metro Station DELHI – 110089	All Candidates

Accordingly, candidates of CA Foundation and Final Examination – November 2019, who are scheduled to appear in the said examination/s from 1st November 2019 to 18th November 2019 at the above mentioned examination centre in New Delhi are requested to take note of the above mentioned change in venue and appear in their examination/s, at the new venue only as mentioned above.

Such candidates may note that admit cards already issued for November 2019 examination will remain valid for the new venue also. All other details remain unchanged.

Examination Department

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Taxation of Gift under Income Tax Act 1961

Taxation of Gift under Income Tax Act 1961

Introduction

Gift is transfer of certain movable or immovable property from one person to another without consideration. Gift tax was introduced in India in the year 1958 and continued for more than 40 years. It was by the Finance Act, 1998 that the Gift Tax Act, 1958 was abolished. The Finance Minister then in the course of his budget speech stated that the collection of gift tax was insignificant. It was also conceded that Gift Tax Act had not been successful as an instrument to curb tax evasion and avoidance. As a result Gift Tax was abolished. At the same time, to ensure that there are no leakages of income tax revenue through the mechanism of gifts, the Income Tax Act was proposed to be amended to tax gifts as income in the hands of the recipient. Therefore the Finance Minister had by Finance Act, 1998 made a proposal to tax the properties – movable or immovable – without consideration in money or monies worth as income on or after 1st October, 1998 in the hands of the recipient. However, as a result of representations received, the proposal to tax gifts as income was dropped. From October, 1998 to August, 2004 any amount received as gift or without consideration no tax was leviable either for giver or receiver. There was a widespread transfer of insincere gifts from the non-relatives.

Provision in Income Tax Act

In order to fill up the void, Section 56 (2)(v) of Income Tax Act was passed in 2004 and correspondingly section (24)(xiii) was defined. In the course of the presentation of the Budget Speech of 2004, the Finance Minister then stated, “The objective of amendment is to prevent money laundering. Purported gifts from unrelated persons are therefore to be taxed as income”.

As per Section 56 (2)(v) of the Income Tax Act, 1961 any amount exceeding Rs. 25,000 obtained by a person or a Hindu Undivided Family (HUF) without any consideration from any person would be taxed from 1st September, 2004 under the head ‘Income from other Sources’.

However, this clause shall not apply to any sum of money or any property received—

(a) From any relative; or

(b) On the occasion of the marriage of the individual; or

(c) Under a will or by way of inheritance; or

(d) In contemplation of death of the payer or donor, as the case may be; or

(e) From any local authority as defined in the Explanation to clause (20) of section 10; or

(f) From any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) From any trust or institution registered under section 12AA.

For the purpose of this clause the term ‘Relative’ was defined as :

While introducing the said section the term ‘Gift’ was nowhere used. Transfer of sum of money exceeding Rs. 25,000 [Not the aggregate amount] was taxable in hands of recipient. Gifts in kind and gifts received without adequate consideration [Deemed gift] were non-taxable.

Amendment Finance Act, 2006
In Finance act, 2006 clause (vi) to Section 56(2) was introduced. It was proposed that the sum of money whose aggregate value exceeds Rs. 50,000 was taxable. It was operative up to 1st October, 2009.

Ø Finance Act, 2009

The Finance Act, 2009 inserted a new clause (vii) to tax gifts received by on Individual or Hindu Undivided Family (HUF) on or after 1st October, 2009. With this amendment, gifts in kind received without consideration and gifts received without adequate consideration [Deemed gift] were also made taxable.

‘Gift’ became chargeable to tax if it falls under any of below category :

Any sum of money (gift in cash or by cheque or draft) – If aggregate amount of sum of money received by an individual/ HUF from one or more persons during a previous year (but on or after 1st October, 2009) exceeds Rs. 50,000, then the whole of such aggregate value will be chargeable to tax.

Immovable property without consideration –
If any immovable property is received without any consideration on or after 1st October, 2009 and the stamp duty value of which exceeds Rs. 50,000, then the stamp duty value will be chargeable to tax in every such transaction.

Immovable property for a consideration less than the stamp value –
If any immovable property is received on or after 1st October, 2009 for a consideration which is less than the stamp duty value of the property by an amount exceeding Rs. 50,000, then the difference between stamp duty value and consideration is chargeable to tax in every such transaction.

Movable property without consideration –
If any movable property is received without any consideration on or after 1st October, 2009 and the fair market value of which exceeds Rs. 50,000, then fair market value will be chargeable to tax in every such transaction.

Movable property for a consideration less than fair market value –
If any movable property is received on or after 1st October, 2009 for a consideration which is less than the fair market value of the property by an amount exceeding Rs. 50,000, then the difference between fair market value and consideration is chargeable to tax in every such transaction.

For purpose of this section “Property” means the following capital asset [the term ‘Capital asset was inserted by Finance Act, 2010’] :

(i) Immovable property being land or building or both;

(ii) Shares and securities;

(iii) Jewellery [as defined us 2(14)(ii)];

(iv) Archaeological collections;

(v) Drawings;

(vi) Paintings;

(vii) Sculptures;

(viii) Any work of art;

(ix) Bullion [w.e.f. 1st June, 2010];

Ø Finance Act, 2010

In Finance Act, 2010 Clause (viia) was inserted in section 56(2) with effect from 1st June, 2010. The provisions were intended to extend the tax net to such transactions in kind. The intent is not to tax the transactions entered into in the normal course of business or trade, the profits of which are taxable under specific head of income. It is, therefore, proposed to amend the definition of property so as to provide that section 56(2)(vii) will have application to the ‘Property’ which is in the nature of a capital asset of the recipient and therefore would not apply to stock-in-trade, raw material and consumable stores of any business of such recipient.

The clause is applicable if the following conditions are satisfied :

1. Recipient is a firm or closely held company [Company in which the public are not substantially interested]

2. The asset that is received is in the form of share in closely held company.

3. These shares are received from any person.

4. Such shares are received without consideration or for inadequate consideration.

5. Such shares are not received by way of transaction referred to in Sec. 47(via)/(vic)/(vicb)/(vid)/(vii) [i.e. Shares are received in the course of amalgamations, mergers, demergers and re-organisations].

6. Such shares are received on or after 1st June, 2010.

Consequences if above mentioned conditions are satisfied :

Situations	Taxability
1. Shares are received without consideration and aggregate value of shares does not exceed Rs. 50,000.	Nothing is taxable
2. Shares are received without conside–ration and aggregate value of shares  exceeds Rs. 50,000.	Aggregate fair value of shares  shall be taxable in the hand of  recipient
3. Shares are received for consideration that is less than the fair market value and the aggregate difference does not exceed Rs. 50,000.	Nothing is taxable
4. Shares are received for consideration which is less than the fair market value and the aggregate difference exceeds Rs. 50,000.	Aggregate fair market value mi-nus the aggregate consideratio-n will be taxable in the hand of the recipient

Rule for computing Fair market value of Movable property
The Central Board of Direct Taxes (CDBT) has prescribed method to calculate fair market value of movable property. Rule 11U and rule 11UA specifies the same. In  rule 11U, various terms used in rule 11UA are defined. In rule 11UA methods for computation are specified. Those are as follows :

Properties	Valuation
1. Jewellery, Archaeological collection, Drawings, Painting, Sculpture, Any art of work or Bullion	1. If purchased from registered dealer, then Invoice value shall be the fair market value. 2. In any other case, the price of the assets shall be if it is sold in the open market.
2. Quoted shares and securities through transaction in recognized stock exchange	Value as recorded in stock exchange.
3. Quoted shares and securities [Not being received through tra-nsaction in recognized stock exchange]	Lowest price of such shares traded in any recognized stock exchange in India.
4. Unquoted equity shares	=Net worth*paid up value one share/ total amount of paid up equity shares  capital as shown in the balance sheet.
5. Other unquoted  shares and securities	Market value shall be the price it would fetch if sold in the open market on the valuation date and the assessee may get report from category-1 Merchant Banker or Chartered Accountants in respect of such valuation

Ø Finance Act, 2012
In Finance Act, 2012 Clause (viib) was inserted in section 56(2) with effect from 1st April, 2013. If a company, not being a company in which the public are  substantially interested receives consideration more than fair market value of shares, then aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable.

The said clause is not applicable if shares are issued to :

a) Venture capital undertaking from a venture capital company or a venture capital fund [as defined us 10(23FB)]

b) A class or classes of persons as may be notified by Central Government in this behalf

For purpose of this clause, fair market value means higher of the following amount :

a) As determined in accordance with rule 11 and rule 11UA

b) As may be substantiated by the company to the satisfaction of the Assessing Officer (AO), based on the value of its assets, including intangible assets, being goodwill, know-how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature

Ø Finance Act, 2013

Finance Act, 2013 substituted Section 56(2)(vii)(b) by new provisions. It comes in to effect from 1st April, 2014. If any immovable property is received for a consideration which is less than the stamp duty value of the property by more than Rs. 50,000, the stamp duty value of such property which is in excess of such consideration, shall be chargeable to tax in the hands of the transferee being individual or Hindu Undivided Family (HUF). Where the date of agreement fixing the value of consideration for the transfer of asset and the date of registration of the transfer of the asset are not same, the stamp duty value as on the date of agreement for transfer shall be considered for the purposes of this section. This exception shall be applicable only where the amount of consideration or part thereof for transfer has been received by any mode other than cash on or before the date of agreement.

 The provisions relating to tax on Gift have travelled as under:

Related issues and anomalies

Period	Taxability
Up to 30/09/1998	Liable for tax as gift under the Gift Tax Act in the hands of the donor if amount of gift exceeded Rs.30,000 in a year
01/10/1998 to 31/08/2004	No tax
01/09/2004 to 31/03/2006	Taxable u/s 56(2)(v) as income but only if sum of money of the same exceeds Rs.25,000 from each person
01/04/2006 to 30/09/2009	Taxable u/s 56(2)(vi) as income but only aggregate of sum of money if the same exceeded in aggregate Rs.50,000 in a year in the hands of the recipient from all donors
01/10/2009 onwards	Taxable Receipt of sum of Money, Immovable property as well as certain specified movable property if the amount exceeds Rs.50,000 in aggregate in case of each of such category of assets
01/06/2010 onwards	Section 56(2)(viia) inserted to tax Partnership Firms and unlisted companies [i.e. companies in which public are not substantially interested] when shares of specified companies are received without consideration or at inadequate consideration
01/04/2013 onwards	Section 56(2)(viib) inserted by Finance Act, 2012 to tax unlisted companies [i.e. companies in which public are not substantially interested] if shares are issued to a resident person for consideration more than fair market value, then the difference is chargeable

Ø Any sum of money received from any relative is exempt only for Individuals and for Hindu Undivided Family (HUF) any member thereof. Whether such relation is to be interpreted by the relation of Karta or all members of Hindu Undivided Family including all female members, still remains a question.

Ø Assessable value under stamp duty act in many states needs to be rationalized before the enactment of Section 56(2)(vii)(b). In many cities it is seen that that the market value of the property is less than the value adopted for stamp duty purposes. Enactment of these provisions will lead to unfair taxation on notional income that never existed. Hence it is doubtful as to how the amendment will prevent the circulation of unaccounted money.

Ø If an employer company is dealing in the items covered [Movable assets] for the purpose of the said section and such company provides products to his employee at concessional rate then there would be double taxation.

Ø Sometime the movable assets covered in section 56(2)(vii) might be provided free along with other products sold by a trader, whether the fair market value of the items received without consideration in such a case will be falling in the mischief of the said section, will again be a disputable question.

Conclusion

Tax on gifts as per Income Tax Act, 1961 is one of the complicated provisions. Taxation on deemed basis and fair market value concept are not taxpayer’s friendly measures. The better approach for the legislature may be to take the value of the gifts at their cost or actual value in the hands of the donor.

This Article is contributed by Saurabh Wagle. He can be reached at saurabh.wagle@gmail.com

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All About AOC-4 : Purpose, Format, Due Date as per companies act 2013

All About AOC-4 : Purpose, Format, Due Date as per companies act 2013

Every company needs to file its financial statements and mandatory attachments, via e-Form AOC4 within the prescribed time limit as per section 137.

It is a E Form filed with ROC through Electronic mode.

Lets Discuss Purpose, Format, Due Date of AOC-4 as per companies act 2013.

Who is required to file this Form?

Every Company, public or private is required to file this form wherein Financial Statements and Director Report of a Company are uploaded with ROC.

Also Vide Notification dated 9th September, 2015, Ministry of Corporate Affairs has notified “Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2015”. As per the same, companies falling in the following categories will have to file their Financial Statements under section 137 of the Companies Act, 2013 using the XBRL for financial year commencing on or after 1st April, 2014:-

1. all companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or
2. all companies having paid up capital of Rupees five crore and above; or
3. all companies having turnover of Rupees one hundred crore and above; or
4. all companies which were hitherto covered under the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011:

However, companies in Banking, Insurance, Power Sector and Non-Banking Financial Companies are exempted from XBRL filing.

What is due date of filing AOC-4 for a company?

Due date of filing AOC-4 for a company is 30 days from the date of Annual General Meeting of the company.

For Example if AGM of the Company has been held on 28th September 2019, Due date of AOC-4 would be 28th October 2019.

Also As per Company Law, Companies have to do there AGM on 30th Day of September under normal circumstances, therefore due date of filing AOC-4 is 30th October.

What if I don’t File Form AOC-4 for my company?

The penalty for not filing Form AOC-4 is Rs. 100 (Rupees Hundred) per day of default.

Also Director of a Defaulting Company can become disqualified, if this form is not filed for 3 consecutive years.

Thus timely filing of this form should be ensured.

What are the Details required for filing this form?

a) General information of the company like it’s :

• Corporate Identity Number (CIN),
• Financial year to which financial statements relates,
• Details of AGM,
• Details of director(s), manager, secretary, CEO, CFO of the company who have signed the financial statements and Board Report,
• Details of Auditor and SRN of ADT-1 etc.

b) Balance Sheet

c) Detailed Balance sheet items (Amount in Rupees)

d) Financial parameters – Balance sheet items (Amount in Rupees) as on financial year end date

e) Share capital raised during the reporting period (Amount in Rupees)

f) Details related to cost records and cost audit

g) Statement of Profit and Loss

h) Financial parameters – Profit and loss account items (amount in Rupees) during the reporting period

i) Details related to principal products or services of the company

j) REPORTING OF CORPORATE SOCIAL RESPONSIBILITY

k) DISCLOSURE ABOUT RELATED PARTY TRANSACTIONS

What are the Attachment required to file the Form?

1. Financial statements duly authenticated as per section 134 (including Board’s report, auditors’ report and other documents.
2. Statement of subsidiaries as required under section 129 in the format of Form AOC-1 prescribed under the Companies (Accounts) Rules, 2014
3. Statement of the fact and reasons for not adopting balance sheet in the annual general meeting (AGM) – This attachment is mandatory if provisional unadopted financial statements are being filed
4. Statement of the fact and reasons for not holding the AGM – This attachment is mandatory if AGM was not held
5. Approval letter of extension of financial year or AGM – This attachment is mandatory if any extension has been granted for AGM or financial year
6. Supplementary or test audit report under section 143 – This attachment is mandatory if CAG of India had conducted supplementary or test audit under section 143
7. Company CSR policy as per sub-section (4) of section 135
8. Details of other entity(ies): This attachment is mandatory in case any amount of CSR is spent not directly by company. Details of all such implementing agencies should be attached in that case.
9. Details of salient features and justification for entering into contracts/ arrangements/transactions with related parties as per sub-section (1) of section 188 – Form AOC-2
10. Details of comments of CAG of India – It is mandatory if C&AG of India had conducted supplementary or test audit under section 143
11. Secretarial Audit Report – This attachment is mandatory if Secretarial Audit was applicable
12. Directors’ report as per sub-section (3) of section 134
13. Details of remaining CSR activities: Details of CSR programmes/projects/activities not mentioned in e-form is mandatory to attach in excel sheet.

Form Where Can I download Form AOC-4?

Link for downloading Form AOC-4 is Given below:

Link

Do we need CS/CA Certification while filing Form AOC-4?

Yes, This eform needs to be verified by a practicing professional. The Professional can be CA or CS.

Usually it’s better that a Auditor should certify this form as he has good knowledge of Financials the Company.

You May Also Refer :All About MGT-7 : Purpose, Format, Due Date as per companies act 2013

All About AOC-4 : Purpose, Format, Due Date as per companies act 2013

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Think twice before opting for not filing GSTR 9 Annual return for turnover less than 2 crore

Do think twice before opting for not filing GSTR 9 for turnover less than 2 crore

GSTR-9 filing for businesses with turnover up to Rs 2 crore has been made optional by MOF for FY 2017-18 and FY 2018-19 vide Notification Number 47/2019 – Central Tax dated 9th October, 2019.

Notification No. 47/2019-Central Tax dated 09-10-2019

As per the Notification, the class of registered persons, in respect of financial years 2017-18 and 2018-19, shall follow the special procedure to furnish the annual return under sub-section (1) of section 44 of the said Act read with sub-rule (1) of rule 80 of the said rules.

Do think twice before opting for not filing GSTR 9 for turnover less than 2 crore

It means if you chose not to file annual return within due date for the reason that your turnover was below 2 crore, it will be presumed you have filed annual return before due date of 30th November.

Now the Question arises, what is the special procedure and what will be the annual return in this case?

It may be auto populate data of annual return or it may be summary of GSTR 3B and GSTR 1 which shall be deemed to be annual return.

Conclusion : It means if you choose not to file GSTR 9 Annual Return before 30th November, for Turnover < 2 Crore it will be deemed, that the Auto Populated Data is the Annual Return, even if it is incorrect.

It’s better to reconcile the data and file GSTR 9 instead of filing incorrect data as compiling the issue in long term.

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Summary of Circulars Issued on 11th October 2019

Summary of Circulars Issued on 11th October 2019

Circular No. 113/32/2019-GST

Clarification regarding GST rates & classification of 7 goods :

(i) Classification of leguminous vegetables such as grams when subjected to mild heat treatment

Leguminous vegetables which are subjected to mere heat treatment for removing moisture, or for softening and puffing or removing the skin, and not subjecting to any other processing or addition of any other ingredients such as salt and oil, would be classified under HS code 0713. Such goods if branded and packed in a unit container would attract GST at the rate of 5%. In all other cases such goods would be exempted from GST.

(ii) Almond Milk

Almond milk is classified under the residual entry in the tariff item 2202 99 90 and attract GST rate of 18%.

(iii) Applicable GST rate on Mechanical Sprayer

Mechanical sprayers of all types whether or not hand operated (other than fire extinguishers, whether or not charged) would attract GST rate of 12%

(iv) Taxability of imported stores by the Indian Navy

Imported stores for use in navy ships are exempted from GST.

(v) Taxability of goods imported under lease : Goods imported under lease are exempted from IGST.

(vi) Applicable GST rate on parts for the manufacture solar water heater and system : Parts including Solar Evacuated Tube for the manufacture of solar water heater and system will attract GST rate of 5%.

(vii) Applicable GST on parts and accessories suitable for use solely or principally with a medical device : Parts and accessories used with a medical device (Ophthalmic equipment) should be classified with the
ophthalmic equipment only and shall attract GST rate of 12%.

Summary of Circulars Issued on 11th October 2019

Circular No. 114/33/2019-GST

GST Scope of support services to exploration, mining or drilling of petroleum crude or natural gas or both

1. New entry has been inserted under heading 9983 w.e.f 1-10-2019 vide Notification No. 20/2019- Central Tax (Rate) dated 30-09-2019; – “(ia) Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both”
2. Relevant Explanatory Notes for Heading 9983: 998341 Geological and geophysical consulting services 998343 Mineral exploration and evaluation
3. Explanatory Notes for Heading 9986:
   • 998621 Support services to oil and gas extraction
   • 998622 Support services to other mining n.e.c
4. Sr. 24 (ii) under heading 9986 will be governed by service codes 998621 and 998622
5. Sr. No. 21 (ia) under heading 9983 will be governed by service codes 998341 and 998343

Circular No. 115/34/2019-GST

Clarification on issue of GST on Airport levies

The airport operators shall pay GST on the PSF and UDF collected by them from the passengers through the airlines.

Airline can act as pure agent (provided all conditions are satisfied under rule 33) on the airport services like Passenger Service Fee (PSF) and User Development Fees (UDF) provided by Airport Operators to the passengers.

The airline (pure agent) shall not take ITC of GST payable or paid on PSF and UDF. The airline would only recover from the passengers the actual PSF and UDF and GST payable on such PSF and UDF by the airline operator

Airlines shall be liable to pay GST on the collection charges under forward charge. ITC of the same will be available with the airport operator.

Circular No. 116/34/2019-GST

GST on services of display of name or placing of name plates of donor

GST shall not be leviable if 3 conditions are satisfied which are: 1. gift or donation is made to a charitable organization 2. the payment has the character of gift or donation 3. the purpose is neither commercial gain nor advertisement

Circular No. 117/34/2019-GST

GST exemption to DG shipping approved maritime courses

The Maritime Institutes are educational institutions under GST and the courses conducted by them are exempt from GST.

The exemption is subjected to meeting the condition specified at SL. No.66 of the notification No.12/2017 CTR dated 28-06-2017

The aforesaid clarification applies, mutatis mutandis, to corresponding entries of respective IGST, UTGST, SGST exemption notifications.

Circular No. 118/34/2019-GST

Place of supply of software/design services related to ESDM industry

Software/design services by supplier located in taxable territory to service recipient located in nontaxable territory by using sample prototype hardware / test kits in a composite supply, where such testing is an ancillary supply.

Place of supply is the location of the service recipient as per Section 13(2) of the IGST Act.

Circular No. 119/34/2019-GST

GST on supply of securities under Securities Lending Scheme, 1997

With effect from 1st Oct 2019, the borrower of securities shall be liable to discharge GST as per Sl. No 16 of Notification No. 22/2019-Central Tax (Rate) dated 30.09.2019 under RCM.

The nature of GST to be paid shall be IGST under RCM.

Circular No. 120/39/2019- GST

Effective date of explanation inserted in Notification No. 11/2017-CTR

The explanation having been inserted u/s 11(3) CGST Act, is effective from the inception of the entry at SL. No. 3(vi) of the Notification no. 11/2017 (CTR) Dated 28-06-2017 and 24/2017 (CTR) dated 21-09- 2017.

The line in Notification No. 17/2018(CTR) Dated 26-07-2018 mentioning effective date of notification as 27-07-2018 does not alter the operation of the notification in terms of Sec.11(3).

Circular No. 121/40/2019-GST

GST on license fee charged by States for grant of Alcoholic Liquor License

Granting of alcoholic liquor license, against consideration in the form of license fee or application fees by State Government has notified as “neither a supply of goods nor supply of service “as per Notification No. 25/2019(CTR) Dated 30-09-2019.

This notification is specifically applied to granting of alcoholic liquor license and has no applicability in relation to grant of other licenses for fees where GST is payable.

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GST on license fee charged by States for grant of Alcoholic Liquor License

GST on license fee charged by States for grant of Alcoholic Liquor License

Granting of alcoholic liquor license, against consideration in the form of license fee or application fees by State Government has notified as “neither a supply of goods nor supply of service “as per Notification No. 25/2019(CTR) Dated 30-09-2019.

This notification is specifically applied to granting of alcoholic liquor license and has no applicability in relation to grant of other licenses for fees where GST is payable.

Circular No. 121/40/2019-GST

F. No. 354/136/2019-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax research Unit

****

North Block, New Delhi,

Dated the 11th October, 2019

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject– GST on license fee charged by the States for grant of Liquor licences to vendors reg.

Services proved by the Government to business entities including by way of grant of privileges, licences, mining rights, natural resources such as spectrum etc. against payment of consideration in the form of fee, royalty etc. are taxable under GST. Same was the position under Service Tax regime also with effect from 1st April, 2016. Tax is required to be paid by the business entities on such services under reverse charge.

2. GST Council in its 26th meeting held on 10.03.2018, recommended that GST was not leviable on license fee and application fee, by whatever name it is called, payable for alcoholic liquor for human consumption and that this would apply mutatis mutandis to the demand raised by Service Tax/Excise authorities on license fee for alcoholic liquor for human consumption in the pre-GST era, i.e. for the period from 01-04-2016 to 30-06-2017.

3. Grant of liquor licences by State Government against payment of consideration in the form of licence fee, application fee etc. was a taxable service under Service Tax, therefore to implement GST Council’s recommendation, Central Government decided to exempt service provided or agreed to be provided by way of grant of liquor licence by the State Government, against consideration in the form of licence fee or application fee, by whatever name called, during the period from 01.04.2016 to 30.06.2017. Clause No. 117 of Finance (No. 2) Act, 2019 may be referred in this regard.

4. GST Council in its 37th meeting held on 20.09.2019 further recommended that the decision of the 26th GST Council meeting be implemented by notifying service by way of grant of alcoholic liquor licence, against consideration in the form of licence fee or application fee or by whatever name it is called, by State Government as neither a supply of goods nor a supply of service. Therefore, in exercise of powers conferred under sub-section 2 (b) of section 7 of CGST Act, 2017, Notification No. 25/2019-Central Tax (Rate) dated 30th September, 2019 has been issued.

5. GST Council further decided in the 37th meeting held on 20.09.2019, to clarify that this special dispensation applies only to supply of service by way of grant of liquor licenses by the State Governments as an agreement between the Centre and States and has no applicability or precedence value in relation to grant of other licenses and privileges for a fee in other situations, where GST is payable.

6. Difficulty if any, in the implementation of this Circular may be brought to the notice of the Board.

Yours Faithfully,

(Shashikant Mehta)

OSD, TRU

Email: shashikant.mehta@gov.in

Tel: 011 2309 5547

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