Karnataka Government released GST Audit Manual

Karnataka Government released GST Audit Manual

The GST is an integrated scheme of taxation of goods and services and is efficient and harmonized consumption based tax system replacing a plethora of indirect taxes like VAT, Central Excise, Luxury Tax, Entity Tax, Entertainment Tax, Betting Tax and Cess and surcharges relating to supply of goods and services.

The Goods and Service Tax is a trust-based regime wherein the taxpayer is required to self-assess his tax liability and file the returns. To ensure whether the taxpayer has correctly self-assessed his tax liability, the concept of Audit has been incoporated under the GST Act. This involves examination of records, returns and othe documents maintained by a registered taxable person.

The Audit involving scrunity of financial statements and documents, therefore, forms an integral part of the work of the officers of the tax department. The objective of audit of taxpayers is to measure, improve and sustain the level of compliance in the light of the provisions of the KGST Act 2017 and the rules made there under.

It is gratifying to note that the KGST Audit Manual has been prepared by the Commercial Taxes Department in a comprehensive, hoslistic manner. I am sure it will serve as a guide to the officers implementing the provisions of the GST Law.

KARNATAKA GST AUDIT MANUAL

CHAPTER-1

INTRODUCTION

1.1 Preamble:

Audit is a systematic and independent examination of books of accounts, statutory records, and documents as required by the relevant law applicable to the organisation. Audit by the tax authorities entails a deeper scrutiny of tax compliance by a tax payer from such examination and the effort is not only to ensure that the books of accounts and documents etc., of a tax payer are maintained as required under the law but they also reflect the correct liability and its compliance thereof. While the traditional tax systems relied on verification of tax compliance by every tax payer through tax assessment with varied approaches by the individual tax authorities, modern tax systems rely on a more uniform, systematic and information based approach involving selection of cases for audit, uniform audit procedure and standardised reporting of results of audit for analysis of such data to make changes in the approach and management of audit.

The objective of audit is not only to ensure uniform tax compliance but also to educate the tax payer and facilitate more voluntary compliance. It is critical and important to ensure compliance in tax administration and prevent revenue leakage and Audit is a mechanism in this direction.

The effective administration of this new technology based tax system requires standard operating systems and procedures at various levels of integrated administration i.e., at registration, return filing, assessment, audit, enforcement, recovery, appeal etc.

Since audit is an important departmental activity, there is a need for a standard audit manual for the same. The purpose of this audit manual is to outline the principles and policies of audits conducted under the KGST Act, 2017 and the Rules made thereunder. Guidelines provided herein are intended to ensure that the audit of taxpayers is carried out in a uniform, efficient and comprehensive manner adhering to the stipulated principles, policies and as per the best international practices. Hence, this manual is an effort to bring together various aspects of audit under the GST law for the benefit of departmental officers and staff.

1.2 What is audit under GST:

In terms of Section 2(13) of the KGST Act, 2017, “audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.

1.3 Why Audit under GST:

Tax liability of a registered person on supply of goods or services or both under GST Law is computed by himself under self-assessment scheme of the Act as provided u/s 59 of the KGST Act, 2017. However, the correctness of such self-assessment on the part of the taxpayer needs to be ensured by the Tax Authorities through periodical audit of books of account, returns and other documents maintained and furnished by such person to ensure the correctness of turnovers declared, tax liability, claim of input tax credits in the returns filed and also the payment of taxes.

As per the provisions of the GST Act such audit can be undertaken not only by an officer of the tax department but also by professionals in certain cases.

The major outcomes of Audit envisaged are;

• Verification of complete and correct recording/accounting of all transactions relating to supply of goods and services, their correct classification and their correct tax liability.
• Verification of the correctness of turnovers declared, taxes paid, refund claimed and input tax credit availed.
• Verify whether the taxpayers have applied the correct rates of taxes on supply of goods and services.
• Verification of compliance of relevant notifications, circulars, clarifications, Government Orders.
• Verification of compliance of the relevant judicial precedents applicable to the registered person.
• Data compilation relating to nature and patterns of incorrect claims of input tax /exemptions for taking corrective/preventive administrative/statutory measures,
• Identification and understanding of any suspected/doubtful tax management practices adopted by the registered persons.
• Facilitating better and improved tax compliance through tax payer education and bringing any changes /reforms required to make compliance simpler and easy.
• Audit results in facilitating better and improved tax compliance through tax payer education and bringing any changes/reforms required to make compliance simpler and easy.

1.4 The Purpose of Audit Manual:

The purpose of this manual is to outline the principles, policies, procedures and practices of audit conducted under the KGST Act, 2017 and the Rules made thereunder. It contains guidelines and operating procedures intended to ensure that the audit of taxpayer is carried out in a uniform, efficient and comprehensive manner, adhering to the stipulated principles, policies and procedures aimed in that direction.

• It provides members of the audit team with practical professional guidance, tools and information for conducting and managing the audit activity.
• It provides standard procedure for planning, conducting and reporting on audit work carried out.
• It helps to bring a systematic and disciplined approach to the audit by departmental authorities so as to enhance the quality and effectiveness of audit by putting into practice standard procedures and processes that would help it conform to professional standards and best practices.

1.5 Scope of the Audit Manual:

The manual covers subjects that are related to principles, policies and other issues pertaining to conduct audit of taxpayers under KGST Act, 2017 and rules made there under. The manual does not deal with legal interpretations and rulings on GST matters. The guidelines provided in the manual are advisory and educative in nature and are not binding either on authorities or the tax payers. The relevant judgements of the honourable courts and tribunals applicable to the transactions of the tax payer should be kept in mind at the time of audit.

The manual does not contain answers to all the problems that may arise in the day-today audit work. In such cases, the audit officer/audit team has to apply his/their mind, keeping in view the spirit of the principles and policies outlined in the manual. If needed, he/they may seek guidance from the supervisory officer.

1.6 Amendments to the Manual:

Any future amendments to the KGST Act, 2017 and Rules made thereunder, Notifications, Circulars/Orders, administrative policies and procedures etc. may require changes to this Manual. Experience gained during the conduct of audit would also necessitate periodic updating of the manual to maintain its utility.

The users of this manual are requested to provide suggestions for the improvement of this Manual and to make its scheme, procedures and contents more useful. Suggestions may be forwarded to the Commissioner/ Additional Commissioner (Audit) through their Joint Commissioners or Additional Commissioners.

1.7 Removal of difficulty:

Difficulties faced, if any, in the implementation of guidelines and instructions contained in this manual may be brought to the notice of ADCOM (Audit) at an early date. The ADCOM (Audit) and Joint Commissioners of DGSTOs are authorized to issue appropriate instructions in certain cases which may be aligned with any subsequent modifications and changes made by the Commissioner to remove any difficulty in conduct of audits.

CHAPTER-2

THE LEGAL PROVISIONS: ANALYSIS OF PROVISIONS, RULES AND RELEVANT FORMS

2.1 Provision:

The legal provisions relating to audit by tax authorities under GST are contained in Section 65 of Chapter XIII under the heading Audit of the KGST Act/ CGST Act, 2017 and Rule 101 of Chapter XI under the heading Assessment and Audit of KGST/CGST Rules, 2017. The legal provisions are detailed as under:

As per Section 65(1) of the Act, the Commissioner or an officer authorized by him, may undertake audit of any registered person by issuing a general or a special order.

General Order shall specify the criteria and all the registered persons fulfilling that criteria shall get covered in the ambit of audit.

On the other hand, Special Order for audit shall be issued in the name of a particular registered person and only such person shall be subjected to audit.

As per Rule 101(1) the period of audit to be conducted under section 65(1) shall be a financial year or part thereof or multiples thereof. Thus, audit need not be conducted for a part of the Financial Year in normal circumstances. Period to be covered under the audit can be a single financial year or two financial years or three and so on.

As per Section 65(2) the authorized officer may conduct Audit either at the place of business of the registered person or in his own office.

As per Section 65(3) read with Rule 101(2), the registered person shall be informed by way of notice in FORM GST ADT-01 at least 15 working days prior to the conduct of audit.

As per Section 65(4), audit of a registered person shall be completed within three months from the date of commencement of audit. However, if the Commissioner is satisfied that audit of the registered person cannot be completed within three months, he may extend the time period for a further period not exceeding six months after recording the reasons for doing so in writing.

The expression ‘commencement’ shall mean the date on which the books of account, records and other documents, asked for by the tax authorities, are made available by the registered person or the date of actual institution of audit at the place of business, whichever is later.

As per Section 65(5), the authorized officer, during the course of audit, may require the registered person to:

i. afford him necessary facility to verify the books of account or other documents required by him;

ii. furnish such information as may be required by him for the conduct of audit, and to provide assistance for timely completion of audit.

As per Rule 101(3), the proper officer who has been authorized to conduct the audit of the records and books of account of the registered person shall, with the assistance of his team of officers and officials, verify:

a) the documents on the basis of which the books of account are maintained,

b) the returns and statements furnished under the provisions of the Act & Rules,

c) the correctness of the turnover, exemptions and deductions claimed,

d) the correctness of rate of tax applied in respect of supply of goods or services or both,

e) the input tax credit availed and utilized,

f) the correctness of refund claimed, and

g) other relevant issues

and record the observations in his audit note.

As per Rule 101(4), the proper officer may inform the registered person of the discrepancies, if any, noticed. The registered person may file his explanation to discrepancies in his reply. Thereafter, the proper officer shall finalise the findings of the audit after due consideration of the reply furnished if any.

As per section 65(6) read with Rule 101(5), the proper officer, on conclusion of audit, shall, within 30 days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings in FORM GST ADT-02.

As per Section 65(7), where audit conducted results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate action u/s 73 or 74.

Section 70. Power to summon persons to give evidence and produce documents. –

(1) The proper officer under this Act shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry in the same manner, as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908 (Central Act 5 of 1908).

(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a “judicial proceeding” within the meaning of section 193 and section 228 of the Indian Penal Code (Central Act 45 of 1860).

The audit officer shall exercise these powers judiciously and shall record reasons for issue of summons and draw proceedings relating to the subsequent appearance of such person or production of the documents sought.

Section 71: Access to business premises.- (1) Any officer under this Act, authorized by the proper officer not below the rank of Joint Commissioner, shall have access to any place of business of a registered person to inspect books of account, documents, computers, computer programs, computer software whether installed in a computer or otherwise and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.

(2) Every person in charge of place referred to in sub-section (1) shall, on demand, make available to the officer authorized under sub-section (1) or the audit party deputed by the proper officer or a cost accountant or chartered accountant nominated under section 66––

(i) such records as prepared or maintained by the registered person and declared to the proper officer in such manner as may be prescribed;

(ii) trial balance or its equivalent;

(iii) statements of annual financial accounts, duly audited, wherever required;

(iv) cost audit report, if any, under section 148 of the Companies Act, 2013 (Central Act 18 of 2013);

(v) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 (Central Act 43 of 1961); and

(vi) any other relevant record,

for the scrutiny by the officer or audit party or the chartered accountant or cost accountant within a period not exceeding fifteen working days from the day when such demand is made, or such further period as may be allowed by the said officer or the audit party or the chartered accountant or cost accountant.

The audit officer should draw appropriate proceedings relating to demand of any record, statement etc, and their production or otherwise. While non-production of any records etc sought may result in drawing adverse inference in appropriate cases, action to deal with such non-production may also be initiated.

from Studycafe https://ift.tt/3rbaQVi

CBDT extension for filing DTVSV Forms due date till 31st March 2021

CBDT extension for filing DTVSV Forms due date till 31st March 2021

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 26th February, 2021

S.O. 964(E).—In exercise of the powers conferred by section 3 of the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020), the Central Government hereby makes the following amendments in the notification of the Government of India, Ministry of Finance, (Department of Revenue), number 85/2020, dated the 27th October, 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O. 3847(E), dated 27th October, 2020, namely:––

In the said notification,––

(i) in clause (a), for the figures, letters and words “28th day of February, 2021” the figures, letters and words “31st day of March, 2021” shall be substituted;

(ii) in clause (b), for the figures, letters and words “31st day of March, 2021” the figures, letters and words “30th day of April, 2021” shall be substituted; and

(iii) in clause (c), for the figures, letters and words “1st day of April, 2021” the figures, letters and words “1st day of May, 2021” shall be substituted.

Notification No. 09/2021/ F.No. IT(A)/01/2020-TPL]

SHEFALI SINGH,
Under Secy., Tax Policy & Legislation Division

Note: The principal notification was published in the Gazette of India, Extraordinary, Part-II Section 3, Sub-section (ii) dated the 27th October, 2020 vide number S.O. 3847(E), dated 27th October, 2020 and was subsequently amended by notification number S.O. 4804(E), dated 31st December, 2020 published in the Gazette of India, Extraordinary, Part-II Section 3, Sub-section (ii) dated the 31st December, 2020 and notification number S.O. 471(E), dated 31st January, 2021 published in the Gazette of India, Extraordinary, Part-II Section 3, Subsection (ii) dated the 31st January, 2021.

from Studycafe https://ift.tt/3dYJuOq

Penalty Proceedings quashed if the proper opportunity of Being heard not given

Penalty Proceedings quashed if the proper opportunity of Being heard not given

In the High Court of Judicature at Madras

The Text of the Order as follows :

We have heard Mr. Joseph Prabhakar, learned counsel for the appellant and Mr.Mohammed Shaffiq, learned Special Government Pleader assisted by Mrs.G.Dhanamadhri, learned Government Advocate accepting notice for the respondents.

2. This appeal filed by the appellant – dealer is directed against the order dated 19.11.2020 made in W.P.No.32257 of 2015, which was dismissed along with two other connected matters in W.P.Nos. 33878 and 33879 of 2015 challenging the orders 30.1.2014 and 16.9.2014 levying penalty respectively for the assessment years 2008-09 and 2013-14 as well as the consequential garnishee orders.

3. W.P.No.32257 of 2015 was filed by the dealer challenging the order dated 06.3.2015 passed by the first respondent – First Appellate Authority, who partly confirmed the orders of the second respondent – Assessing Officer levying penalty respectively for the assessment years 2008-09 and 2013-14. The learned Single Judge did not go into the merits of the matter, but dismissed all the three writ petitions on the ground that the Court could not exercise its jurisdiction under Article 226 of The Constitution of India.

4. The learned Single Judge placed reliance on the decision of the Hon’ble Supreme Court in the case of ACCT, LTU, Kakinada Vs. Glaxo Smith Kline Consumer Health care Ltd. [reported in 2020 (36) GSTL 305] and in the said decision, it was emphatically laid down that the High Court, in exercise of power under Article 226 of The Constitution of India, ought not to have entertained the writ petition assailing the order passed by the Statutory Authority, which was not appealed against within the maximum period of limitation before the concerned Appellate Authority.

5. In our respectful view, the decision of the Hon’ble Supreme Court in the said decision has not held that a writ petition under Article 226 of the Constitution of India is an absolute bar. We are of the said view after noting the observations/findings rendered by the Hon’ble Supreme Court in the following paragraphs :

“11. In the backdrop of these facts, the central question is: whether the High Court ought to have entertained the writ petition filed by the respondent? As regards the power of the High Court to issue directions, orders or writs in exercise of its jurisdiction under Article 226 of the Constitution of India, the same is no more res integra. Even though the High Court can entertain a writ petition against any order or direction passed/action taken by the State under Article 226 of the Constitution, it ought not to do so as a matter of course when the aggrieved person could have availed of an effective alternative remedy in the manner prescribed by law (see Baburam Prakash Chandra Maheshwari vs. Antarim Zila Parishad now Zila Parishad, Muzaffarnagar [AIR 1969 SC 556] and also Nivedita Sharma vs. Cellular Operators Association of India & Ors. [2011 (14) SCC 337]. In Thansingh Nathmal & Ors. vs. Superintendent of Taxes, Dhubri & Ors. [AIR 1964 SC 1419], the Constitution Bench of this Court made it amply clear that although the power of the High Court under Article 226 of the Constitution is very wide, the Court must exercise self imposed restraint and not entertain the writ petition, if an alternative effective remedy is available to the aggrieved person…..

15. …….. The High Court may accede to such a challenge and can also non suit the petitioner on the ground that alternative efficacious remedy is available and that be invoked by the writ petitioner. However, if the writ petitioner chooses to approach the High Court after expiry of the maximum limitation period of 60 days prescribed under Section 31 of the 2005 Act, the High Court cannot disregard the statutory period for redressal of the grievance and entertain the writ petition of such a party as a matter of course. Doing so would be in the teeth of the principle underlying the dictum of a three Judge Bench of this Court in Oil and Natural Gas Corporation Limited (supra). In other words, the fact that the High Court has wide powers, does not mean that it would issue a writ which may be inconsistent with the legislative intent regarding the dispensation explicitly prescribed under Section 31 of the 2005 Act. That would render the legislative scheme and intention behind the stated provision otiose. ……

19…….. Pertinently, no finding has been recorded by the High Court that it was a case of violation of principles of natural justice or non compliance of statutory requirements in any manner. Be that as it may, since the statutory period specified for filing of appeal had expired long back in August, 2017 itself and the appeal came to be filed by the respondent only on 24.9.2018, without substantiating the plea about inability to file appeal within the prescribed time, no indulgence could be shown to the respondent at all.”

6. On a reading of the above extracted paragraphs, it is seen that the Hon’ble Supreme Court, after referring to the decision of the Constitution Bench in the case of Thansingh Nathmal, held that although the power of the High Court under Article 226 of the Constitution is very wide, the Court must exercise self imposed restraint and not entertain the writ petition. Further, in paragraph 15, the Hon’ble Supreme Court observed that the High Court may accede to such a challenge and can also non suit the petitioner on the ground that alternative efficacious remedy is available and that be invoked by the writ petitioner. In addition, in paragraph 19, the Hon’ble Supreme Court took note of the fact that when the High Court refuses to exercise the jurisdiction under Article 226 of The Constitution of India, it would be necessary for the Court to record that there was no case of violation of the principles of natural justice or non compliance of statutory requirements in any manner.

7. Therefore, there are certain broad parameters, within which, the Court has to exercise its jurisdiction under Article 226 of The Constitution of India, which read as hereunder :

(i) if there is unfairness in the action of the Statutory Authority;

(ii) if there is unreasonableness in the action of the Statutory Authority;

(iii) if perversity writs large in the action taken by the Authority;

(iv) if the Authority lacks jurisdiction to decide the issue and

(v) if there has been violation of the principles of natural justice,

the Court will step in and exercise its jurisdiction under Article 226 of The Constitution of India.

8. Further, it would be highly beneficial to refer to the celebrated decision of the Constitution Bench of the Hon’ble Supreme Court in the case of Mafatlal Industries Ltd. Vs. Union of India [reported in 1997 (5) SCC 536] wherein it was held that the jurisdiction of the High Courts under Article 226 and that of the Hon’ble Supreme Court under Article 32 of The Constitution of India could not be circumscribed by the provisions of the Enactment (Central Excise Act) and they would certainly have due regard to the legislative intent evidenced by the provisions of the Act and would exercise their jurisdiction consistent with the provisions of the Act. Further, the Court directed that the writ petition would be considered and disposed of in the the light of and in accordance with the provisions of Section 11B of the Central Excise Tax Act and for such a reason, the power under Article 226 of The Constitution of India has to be exercised to effectuate rule of law and not for abrogating it.

9. In the light of the above, we have no hesitation to hold that the observation of the learned Single Judge to the effect that there is absolute bar for entertaining a writ petition does not reflect the correct legal position. Hence, we are inclined to interfere with the observation made in the impugned order.

10. Next we go to the merits of the matter, as we are required to see as to whether the appellant’s case would fall under any one of the exceptions, which have been carved out by various decisions of the Hon’ble Supreme Court for exercise of jurisdiction under Article 226 of The Constitution of India, when there is a statutory appellate/revisional remedy available to the aggrieved person. One such factor, which would be taken into consideration for exercising jurisdiction is as to whether there has been violation of the principles of natural justice.

11. In this regard, we have elaborately heard Mr.Joseph Prabhakar, learned counsel appearing for the appellant and Mr. Mohammed Shaffiq, learned Special Government Pleader assisted by Mrs. G.Dhanamadhri, learned Government Advocate appearing for the respondents.

12. On a perusal of both the orders dated 30.1.2014 and 16.9.2014 respectively for the assessment years 2008-09 and 2013-14 passed under the provisions of the Central Sales Tax Act, 1956 (for short, the CST Act), we find that the Assessing Officer had issued the notices respectively dated 06.8.2012 and 28.7.2014 proposing to levy penalty on the ground that the dealer purchased SAP software at concessional rate of tax against C Form Declarations without having included the same in the registration certificate issued under the CST Act. Hence, the Assessing Officer was of the prima facie view that the software was not capable of being used in manufacturing and therefore, had proposed to levy penalty under Section 10A(1) of the CST Act.

13. For the assessment year 2008-09, the appellant – dealer submitted two letters requesting for adjournment to enable them to submit their detailed objection. It appears that the matter was adjourned and the appellant – dealer submitted their objections on 16.10.2012 justifying their purchase of SAP software at concessional rate of tax against C Form Declarations. For the assessment year 2013-14, the appellant sent the reply dated 18.8.2014 and the order was passed on 16.9.2014.

14. It is worthwhile to point out that the order levying penalty for the assessment year 2008-09 is dated 30.1.2014. Though the dealer’s objections were received on 16.10.2012, the Assessing Officer did not afford any opportunity of personal hearing to the appellant though more than one year had lapsed. This, in our considered view, is a serious issue because the dealer has taken a specific stand that the software is being used in the manufacture. Furthermore, the dealer’s case is that in their registration certificate issued under the CST Act, as mentioned in Clause 9 in the annexure, computer software is also one of the items mentioned in their certificate of registration. Had an opportunity of hearing been granted to the dealer, especially when the Assessing Officer took more than one year to complete the assessment, the dealer would have explained the same. That apart, the proposal to levy penalty was made by an officer, who was not the officer, who passed the order dated 30.1.2014, as there has been a transfer of the officer and the new officer took over charge. This is also one more aspect, which should have weighed in the mind of the Assessing Officer to afford an opportunity of personal hearing because the officer, who completed the assessment, was not the officer, who made the proposal to levy penalty.

15. It is also seen that even in respect of the assessment year 2013-14, no opportunity of personal hearing was granted to the dealer.

16. Thus, we are of the considered view that the case of hand having fallen under one of the exceptional circumstances as mentioned above warranting exercise of jurisdiction under Article 226 of The Constitution of India and as the defect, which has occurred by levying penalty without affording an opportunity of personal hearing would go to the root of the very levy itself, we are inclined to interfere with the impugned order, the assessment orders and remand the matters to the Assessing Officer for a fresh consideration.

17. It is relevant to point out, at the risk of repetition, that W.P. No.32257 of 2015 was disposed of along with two other writ petitions namely W.P. Nos. 33878 and 33879 of 2015, which pertain to challenge to the orders levying penalty respectively (i) dated 30.1.2014 for the assessment year 2008-09 and (ii) dated 16.9.2014 for the assessment year 2013-14 and the consequential garnishee order passed therein. Now that we are inclined to remand the matters to the Assessing Officer for a fresh consideration, it is inevitable that (i) the orders both dated (i) 30.1.2014 and (ii) 16.9.2014 as well as the consequential garnishee orders passed therein both dated 07.10.2015 also require to be set aside, otherwise, the connected and consequential proceedings would be lingering before various Authorities.

18. Accordingly, the following order is passed :

(i) the writ appeal is allowed;

(ii) the impugned order dated 19.11.2020 passed by the learned Single Judge in W.P. No. 32257 of 2015 is set aside; W.P. No. 32257 of 2015 is allowed; the common order dated 06.3.2015 passed by the first respondent in A.P.Nos.24 and 159 of 2014 is set aside; and

(iii) The orders levying penalty both (i) dated 30.1.2014 and (ii) dated 16.9.2014 as well as the consequential garnishee orders dated 07.10.2015 are set aside and the matters are remanded to the second respondent – Assessing Officer to redo the entire exercise after affording an opportunity of personal hearing, during which, it will be open to the appellant to place their additional submissions both on facts and in law. No costs. Consequently, the above CMP is closed.

from Studycafe https://ift.tt/3800KyZ

RBI Extends the time to make application for pan-India umbrella entity for retail payments

RBI Extends the time to make application for pan-India umbrella entity for retail payments

RESERVE BANK OF INDIA

PRESS RELEASE

February 26, 2021

Extension of time to make application for authorisation as a pan-India umbrella entity for retail payments

Reserve Bank had released the framework for authorisation of pan-India Umbrella Entity for retail payments on August 18, 2020 and invited applications from desirous entities. Given the process involved for complying with the framework prescriptions, a timeline of six months was provided therefor, i.e., up to February 26, 2021.

2. Requests have been received from various stakeholders including Indian Banks’ Association for extending the timeline, keeping in view the COVID-19 related disruptions and inconveniences. It has been accordingly decided to extend the timeline for making the application up to March 31, 2021.

Press Release: 2020-2021/1161

Ajit Prasad
Director

from Studycafe https://ift.tt/3b1Iffx

ICSI Announcement for June 2021 Examination Enrolment

ICSI Announcement for June 2021 Examination Enrolment

ATTENTION STUDENTS !

All Foundation, Executive and Professional Programme students eligible for appearing in June,2021 Session of Examinations are advised to go through the following important guidelines to be followed by them during the examination enrollment and while appearing in the examinations. Students are advised to take note of the same for strict compliance.

EXAMINATION ENROLLMENT FOR JUNE,2021 SESSION OF EXAMINATIONS

LAST DATE FOR SUBMISSION OF EXAMINATION FORM

25TH MARCH,2021 (23:59 HOURS)

(LATE FEE IS ADMISSIBLE AFTER 25THMARCH,2021)

LAST DATE FOR SUBMISSION OF EXAMINATION FORM(WITH LATE FEE )

9TH APRIL,2021 (23:59 HOURS)

(STUDENTS WILL NOT BE ALLOWED SUBMIT EXAMINATION FORM AFTER 9TH APRIL,2021)

MODE OF ENROLLMENT:ONLINE MODE ONLY

(OFFLINE APLICATIONS WILL NOT BE ACCEPTED)

STUDENTS MAY CONTACT THE INSTITUTE THROUGH :

Grievance Portal at http://support.icsi.edu

IMPORTANT INSTRUCTIONS

1. Students are advised to select the Examination Centre, Combination of Module(s), Medium of Examination (English OR Hindi), etc. carefully. Students are advised to verify the parameters selected by them meticulously since for all changes in enrollment status, even if allowed upto certain stipulated dates, additional fee as decided from time to time will be levied.

2. Students are advised toretain a copy of the receipt for the examination fee remitted by them during the examination enrollment process. The Fee Receipt is automatically generated by the system for all successful transactions.

3. Students may please note that for all the transactions (including failed transactions), Request Id and Transaction Id are generated by the system. Therefore, generation of Request Id and Transaction / Payment Id does not always result in a successful transaction. It is in the interest of the students to verify the payment status to avoid complications at a later stage. Please re-submit the examination forms wherever the payments are NOT successful.

4. All examination applications without a valid fee receipt shall be rejected without notice. In case the amount is deducted from the bank / debit/ credit card account but the acknowledgement is not automatically generated by the system, students should verify the status of payment from their banker.

5. In case of payment of examination fee through Canara Bank Challan, the Date Of Deposit of Cash with the branches of Canara Bank will be treated as the eligibility date. Students will have to wait for atleast 3-4 days from the date of deposit of cash for reconciliation & transfer of the amount into the Institute’s Bank Account. They shall be able to generate formal payment receipt / acknowledgement only after realisation of the amount in the Institute’s bank account. In case the payment does not get reconciled within 3-4 days, students are advised to send a copy of the Challan at http://support.icsi.edu for verification of receipt of payment.

6. Students generating the Challan up to 25thMarch, 2021 have to deposit the cash on or before 25thMarch, 2021 to avoid applicability of Late Fee failing which they will have to re-generate the Challan and deposit the cash inclusive of the late fee. Similarly, Students generating Challan during the period from 26th March, 2021 to 9thApril, 2021 will have to deposit the cash with the bank on or before 9th April, 2021. The examination enrollment applications in respect of students who deposit the cash with bank after 9th April,2021will be rejected without further notice. Please ascertain bank holidays, if any, to ensure that the cash is deposited well in advance to avoid rejection of application.

7. In every examination session, lakhs of students are expected to seek enrollment and to avoid difficulties at the online portal due to peak load, students are encouraged to submit the examination form well in advance without waiting for the last dates. The Institute may not be held responsible for failure of submission of form and/ or payment due to technical or other problems.

8. Students will not be allowed to submit the examination form and fee after the stipulated dates and such examination forms will be summarily rejected without notice.

9. Students are advised to verify the preliminary enrollment details in their online accounts to avoid complications at a later stage.

10. Students may please note that changes in the enrollment status are not ordinarily allowed. However, in unavoidable circumstances, they may seek change of Examination Centre, Combination Module(s), Medium of Examination and Cancellation of Paper-wise Exemptions granted during the periods mentioned below :-

Stage	Start Date for submission of Online Requests for change of Examination Centre, Medium & Combination of Modules	Last Date for submission of Online Change Requests / Cancellation of Exemption
Foundation, Executive & Professional Programme Examinations	10th April,2021	1st May,2021
Fee applicable for each change	Rs. 250/=
(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. 7229/= will be applicable in addition to the prescribed fee of Rs.250/-).

REQUESTS FOR CHANGES, IF ANY, RECEIVED AFTER THE LAST DATES MENTIONED ABOVE WILL BE REJECTED WITHOUT FURTHER NOTICE.

11. Registration Denovo: Students whose registrations have expired on completion the validity period of five years are required to seek Registration Denovo through the online facility available at www.icsi.edu (after logging into the student account at www.icsi.edu). Students must seek Registration Denovo well in advance so that they shall able to seek examination enrollment by 9thApril,2021 to become eligible for seeking enrollment to June,2021 session of examinations. The Institute may not be held responsible for any delay on the part of students to seek Registration Denovo timely resulting in non-submission of examination form.

12. Paper-wise Exemption on the basis of Higher Qualifications: Even if the students fulfil the eligibility conditions of paper-wise exemption on the basis of higher qualifications viz. ICAI-Cost Final Pass and LL.B. Pass with 50% Marks, the last date for submission of such applications for Paper-wise exemption is 9th April,2021 to become eligible for grant of such exemptions & its applicability in June,2021 session of examinations. Students who submit the paper-wise exemption applications after 9th April,2021, even if they are eligible, will not be considered for the purpose of June,2021 Examinations. Students may submit the request for Paper-wise exemption through this portal.

13. Paper-wise exemptions based on scoring 60% marks criteria: Exemptions based on their performance in December,2020 examinations will be granted to the students by the Institute and in case the students are not interested in availing the exemption, they may seek cancellation of the same by submitting online request at https://smash.icsi.in well in advance but in any case by1st May,2021.

14. It may be noted that in some cases, the exemptions granted in accordance with the various provisions contained under the regulations are inter-related with other exemptions granted and cancellation (or appearance) in any one of the papers may result in cancellation of exemptions in all the inter-related papers. For example, if a candidate has been granted paper-wise exemptions in three papers on the basis of scoring 60, 62, 58 & 10 Marks respectively in the four papers contained under Module-I of Executive Programme in previous session and in case he/she appears or cancels the exemption in any one out of the three exempted papers, all the three exemptions shall be cancelled since the exemption criteria in this case is applicable only if all the three papers are taken together. Candidates are, therefore, advised to be extremely careful while seeking cancellation or while appearing in the exempted papers, as the final result will be computed considering the actual marks scored on reappearance and/ or the deemed absence in the papers as the case may be. In other words, candidates appearing in the exempted papers despite an endorsement to the effect in the Admit Card shall be doing so at their own risk and responsibility and the Institute may not be held responsible for any eventuality which may arise at a later date. In case of any doubt regarding the applicability of rules regarding the exemptions, it would be better if the candidates seek prior clarifications from the Institute by writing at Grievance Portal at http://support.icsi.edu before appearing in the examination of exempted subjects or seeking cancellation of exemptions granted.

15. If any student appears in the examinations disregarding the exemption(s) so granted under the 60% marks criteria and shown in the Admit Card, the appearance will be treated as valid for the purpose of computation of results and the exemption granted will be cancelled without notice.Students are advised to be extremely careful while cancelling the exemptions and while appearing in exempted papers as it shall lead to cancellation of paper-wise exemptions in all the inter-related papers which may have an adverse impact at the time of computation of results.

16. Compulsory switchover from Executive and Professional Programme (Old Syllabus) to Executive and Professional Programme(New Syllabus) :

It may please be noted that the last examination under Executive & Professional Programme (Old Syllabus) shall be held during June,2021 Session. From December,2021 Session onwards, all students under Executive & Professional Programme (Old Syllabus) shall be compulsorily required to switchover to Executive & Professional Programme (New Syllabus).

17. Corresponding Exemptions:

1. Scheme of Corresponding Exemptions on switching over from 2012 Syllabus to 2017 Syllabus of Executive Programme

MODULE 1		Paper Code		Paper Code
1	Company Law	321	Company Law	422
2	Cost and Management Accounting	322	Corporate and Management Accounting	425
3	Economic and Commercial Laws	323	Economic, Business and Commercial Laws	427
4	Tax Laws and Practice	324	Tax Laws	424
MODULE 2
5	Company Accounts and Auditing Practices	325	Corporate and Management Accounting	425
6	Capital Markets and Securities Laws	326	Securities Laws & Capital Markets	426
7	Industrial, Labour and General Laws	327	Jurisprudence, Interpretation and General Laws	421

2 Scheme of Corresponding Exemptionson switching over from 2007 Syllabus to 2012 Syllabus and from 2012 Syllabus to 2017 Syllabus of Professional Programme

Passed / Exempted Paper under 2007 Syllabus	Paper Code (2007 Syllabus)	Corresponding Exemption under 2012 Syllabus on switchover from 2007 Syllabus	Paper Code (2012 Syllabus)	Corresponding Exemption Paper under New (2017) Syllabus on switchover from 2012 Syllabus	Paper Code (2017 Syllabus)
Company Secretarial Practice	231	Advanced Company Law and Practice	331	Resolution of Corporate Disputes, Non-Compliances & Remedies	436
Drafting, Appearances and Pleadings	232	Drafting, Appearances and Pleadings	338	Drafting, Pleadings and Appearances	433
Financial, Treasury and Forex Management	233	Financial, Treasury and Forex Management	335	Corporate Funding & Listings in Stock Exchanges	437
Corporate Restructuring & Insolvency	234	Corporate Restructuring, Valuation and Insolvency	333	Corporate Restructuring, Insolvency, Liquidation & Winding-up	435
Strategic Management, Alliances & International Trade	235	Elective Subject shall be exempted	341 to 345	Elective Subject shall be exempted	441 to 448
Advanced Tax Laws and Practice	236	Advanced Tax Laws and Practice	337	Advanced Tax Laws	432
Due Diligence and Corporate Compliance Management	237	Secretarial Audit, Compliance Management and Due Diligence	332	Secretarial Audit, Compliance Management and Due Diligence	434
Governance, Business Ethics and Sustainability	238	Ethics, Governance and Sustainability	336	Governance, Risk Management, Compliances and Ethics	431
		Information Technology and Systems Audit (code No. 334) under 2012 Syllabus shall be exempt for all students switching over from 2007Syllabus to 2012.

18. Pre-Examination Test

All Students desirous of appearing in the June, 2021 CS Executive and Professional Programmes Examinations under New Syllabus (2017) are required to successfully complete a Pre-Examination Test to become eligible for appearing in the main examinations. Students are advised to refer to detailed FAQ available at the website www.icsi.edu or at https://www.icsi.edu/media/webmodules/e-learning_Pre-Exam.pdf

19. One Day Orientation Programme:

All Students pertaining to Foundation & Executive Programme stage registered from June,2019 onwards and desirous of appearing in the CS Examinations are required to successfully complete One Day Orientation Programme to become eligible for main examinations.

SUMMARISED CHECK POINTS FOR STUDENTS TO AVOID COMPLICATIONS IN EXAMINATION ENROLLMENT (Please also go through the detailed instructions given above)

Have you correctly filled up the following?

1. Examination Centre

2. Combination of Module(s)

3. Medium of Examination

Have you checked the following?

1. Availability of correct photograph and signature in your online account

2. Preliminary enrollment details in your online account

3. Validity of your existing registration

Have you gone through the following ?

1. Guidelines of paper-wise exemption and complied with the requirements thereof

2. Guidelines of switchover to new syllabus and complied with the requirements thereof

Have you successfully remitted the examination fee and downloaded the fee receipt /acknowledgement?

Have you regularised your provisional registration to Foundation Programme / Executive Programme by submitting the proof of passing 10+2 Examinations / Bachelor’s Degree Examinations respectively?

NOTE : In case your answer to any of the questions given above is “NO”, there is every chance of rejection of your examination enrollment request. Therefore, please make it a point to ensure compliance with all the check points given above to avoid complications in your examination enrollment.

Stage	Examination Fee (Rs.)
Foundation Programme	1200/-
Executive Programme	1200/- Per Module
Professional Programme	1200/- Per Module
Late Fee (for all Stages)	250/-
Fee for Change of Examination Centre/ Combination of Module(s) / Medium of Examination	250/-
Surcharge applicable for appearing from Dubai Centre	US$100 or its equivalent amount in Indian Rupees i.e. 7229/=.

from Studycafe https://ift.tt/3q41Wrl

PLI Scheme to Promote Telecom & Networking Products Manufacturing In India

PLI Scheme to Promote Telecom & Networking Products Manufacturing In India

MINISTRY OF COMMUNICATIONS

(Department of Telecommunications)

NOTIFICATION

New Delhi, the 24th February, 2021

SUBJECT: PRODUCTION LINKED INCENTIVE (PLI) SCHEME TO PROMOTE TELECOM AND NETWORKING PRODUCTS MANUFACTURING IN INDIA

F.No. 13-01/2020-IC.—1. Background

The Telecommunication sector has a pivotal role in facilitating the growth of economy. Telecom is key infrastructure and a key enabler of digital connectivity and Digital India. In the above context, it is necessary and desirable to incentivise manufacturing of Telecom Products in India.

2. Objectives

The Production Linked Incentive (PLI) Scheme will promote Telecom and Networking Products manufacturing in India. Accordingly, a financial incentive is proposed to boost domestic manufacturing and attract investments in the target segments of telecom and networking products in order to encourage “Make in India”. The Scheme is also expected to boost export of telecom and networking products “Made in India”.

3. Target Segments

Support under the Scheme will be provided to companies/entities engaged in manufacturing of specified telecom and networking products in India as listed in Annexure-1.

4. Eligibility

4.1 Eligibility will be subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes (as distinct from traded goods) over the Base Year. The cumulative investment can be made at one go, subject to annual cumulative threshold as prescribed for four years being met. An applicant is expected to meet all the minimum threshold conditions to be eligible for disbursement of incentive. The Company/entity may invest in single or multiple eligible products to meet minimum incremental investment and sales threshold. The Scheme will also include contract manufacturers as defined in the FDI Policy Circular of 2017.

4.2 There will be a minimum investment threshold of ₹ 10 Crores for MSME and ₹ 100 Crores for others. Land and building cost will not be counted as investment.

4.3 Any beneficiary under this PLI Scheme will not be eligible to take benefit for the same products under any other PLI Scheme of Central Government. However, eligibility under PLI Scheme will not affect eligibility under any other Scheme being implemented by State/UT Governments and vice-versa.

4.4 Total number of beneficiaries will be limited owing to the fixed ceiling of the budgetary outlay. The beneficiaries will be decided through a transparent mechanism, to be finalized by the Competent Authority as per the Scheme Guidelines. Each beneficiary will have to meet the minimum incremental net sales criteria over the Base Year, as per column C of the table given in Annexure-2, to become eligible for the incentive. The amount of incentive given to each beneficiary will also be capped with a ceiling as per column D of the table or as decided by the Empowered Group of Secretaries (EGoS).

5. Base Year

Financial Year 2019-20 shall be treated as the Base Year for computation of cumulative incremental sales of manufactured goods net of taxes (as distinct from traded goods). Baseline information pertaining to production of beneficiary manufacturers will be captured to deduce and verify the cumulative incremental production over the base year.

6. Tenure of the Scheme

The scheme will be effective from 1st April, 2021. The investment will be permitted to be made in four years, subject to qualifying incremental annual thresholds, the support under the Scheme shall be provided for a period of five (5) years.

7. Review and Monitoring

Empowered Group of Secretaries (EGoS) chaired by Cabinet Secretary will monitor the PLI Scheme, undertake periodic review of the outgo under the Scheme, and take appropriate action to ensure that the expenditure is within the prescribed outlay. The Department of Telecommunications will finalize and notify the Scheme Guidelines. EGoS, within, the contours of Cabinet approval, can carry out any amendments in the Scheme Guidelines to ensure successful implementation on ground. Selection of the applicants to the Scheme will be done by the Department of Telecommunications.

8. Incentive Outlay

The PLI Scheme will be implemented within the overall financial limits of ₹ 12,195 Crores only (Rupees Twelve Thousand One Hundred and Ninety-Five Crore only) for implementation of the Scheme over a period of 5 years.

9. Applicable Incentives

The applicable incentive percentage for MSMEs will be 7% for Year 1 & Year 2, 6% for Year 3, 5% for Year 4 and 4% for year 5 on eligible sales over the base year. For category other than MSME, the applicable incentive percentage will be 6% for Year 1 & 2, 5% for Year 3 & 4 and 4% for year 5 on eligible sales over the base year. The incentive will be given subject to annual investment targets having been met.

10. Incentive per Company

The incentive per company will be applicable on sales of manufactured finished goods net of taxes, discounts, commissions etc. (as distinct from traded goods) subject to ceilings as indicated in the table at para 4.4 above (or as decided by the EGoS from time to time) and the company meeting the cumulative investment criteria as well. Total possible incentive for each applicant will be capped based on total investment committed at the time of application. This will be informed to the applicant at approval stage.

RAJESH KUMAR PATHAK, Dy. Director General (IC)

from Studycafe https://ift.tt/3sByBpJ

SC directed UOI to file affidavit regarding technical glitches faced in filing GST TRAN-01

SC directed UOI to file affidavit regarding technical glitches faced in filing GST TRAN-01

The Hon’ble Supreme Court of India in Union of India & Ors. v. M/s National Engineering Co. [Special Leave Petition (Civil) Diary No(s). 2701/2021, dated February 15, 2021] directed Union of India (“the Petitioner”) to file an affidavit within 4 weeks, answering the assertion regarding technical glitches and problems faced by the taxpayers while uploading and filing Form GST TRAN-01 details. Further stated that, the factual assertions in this regard will be dealt with concretely and expressly and if required, by taking the help of experts.

Furthermore, granted stay over the judgement/ order of Hon’ble Punjab & Haryana High Court in M/s National Engineering Co. v. Union of India & Ors. [CWP No. 27891 of 2019 (O&M) decided on November 4, 2019] wherein taxpayers were allowed to file or revise their already filed incorrect TRAN-1 either electronically or manually statutory Form GST TRAN-01 on or before November 30, 2019. Further, it was held that Department cannot deprive taxpayers from their valuable right of credit and cannot deny the taxpayers from carry forwarding legitimate claim of CENVAT / Input Tax Credit on the ground of non-filing of Form GST TRAN-01 by December 27, 2017.

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

from Studycafe https://ift.tt/3kzY4wV