Ashish Sharma

Business Standard - Government extends deadline for direct tax Vivad Se Vishwas Scheme “This would certainly help the taxpayers who were grappling with legal issues under Direct Tax Vivad Se Vishwas Scheme 2024 and were delayed in determining how to go into the scheme in specific cases,” said Vivek Jalan, partner with Tax Connect Advisory Services LLP. Link for accessing the article: Business Standard:- https://lnkd.in/g8weUMD3

5

As the guiding star of the accounting profession, ICAI holds the torch that lights the path of trust and transparency in financial reporting and corporate governance. Yet, in a world that grows ever more interconnected, the call is not for double standards, but for harmony. Instead of building walls between us and the global stage, we must bridge the gap by embracing convergence with IFRS. Had ICAI chosen to sail with the winds of global unity, perhaps a separate regulatory compass would not have been needed. In this global village, only by speaking the same financial language can we truly thrive.

23

"PENALTY U/s 129" The GST Department levies penalties in cases where e-Way Bill are expired, but in my humble view, merely the expiration of EWB does not proves intention to evade tax. Penalty should be levied after due consideration of facts in each case and not mechanically. 1. Telangana High Court 1.1 Satyam Shivam Papers Pvt. Ltd. Where auto trolley of petitioner-distributor which was on its way for delivery of paper to buyer/consignee was detained by Deputy State Tax Officer on ground that validity of E-way bill had expired and petitioner had to pay an amount towards tax and penalty for release of goods, no presumption could be drawn that there was an intention to evade tax merely on account of non-extension of validity of EWB by petitioner and, therefore, order levying tax and penalty on petitioner was to be set aside. Note: This judgment was upheld by Supreme Court in 2022. 2. Allahabad High Court 2.1 Globe Panel Industries Pvt. Ltd. Where out of two e-way bills, one had expired due to breakdown of vehicle but there was technical violation of non-generation of a fresh e-way bill, since goods in vehicle matched description of e-invoices and e-way bills and authorities could not indicate any intention on part of assessee to evade tax, mere such a technical violation by itself could not lead to imposition of penalty. 3. Calcutta High Court 3.1 Maxxcab Wires & Cables Pvt. Ltd. Where assessee had challenged order imposing penalty for transporting vehicle after expiry of e-way bill, since revenue could not make out any case against assessee that there was any deliberate or wilful intention of assessee to avoid and evade tax, order imposing penalty was to be set aside. 3.2 Karan Singh Order demanding tax and penalty for expiry of e-way bill was not sustainable as during detention within an hour of expiry of e-way bill, department had failed to inform transporter about his right to seek extension of e-way bill within 8 hours. 4. Karnataka High Court 4.1 M.S. Metals & Steels Ltd. Goods had reached destination in time but were unloaded only after expiry of E-way bill as driver of vehicle had fallen asleep. Since documents to prove that vehicle reached destination before expiry of e-way bill were not considered before levying tax and penalty, matter was to be re-adjudicated afresh. I hope you will find this useful. Abhishek Raja Ram

2

Agar high tax collection target nahin ho and 20% compulsory deposit for appeal nahin ho to - 90% issues with tax department and taxpayer will go away - including corruption - is this thinking in a right direction ? #easeofdoingbusiness #simplyfyingtax #correcttaxcollection

50

4 Comments

My New Article Published on Taxguru on Invoice Management System. NAME OF THE ARTICLE - Who is playing with PULSE and BLOOD of the business – Invoice Management System (IMS) – New Game Changer in Business, challenges and Litigation under GST. Pulse = Tax Invoice,Debit notes/Credit notes Blood = Working Capital/Cash flow

30

6 Comments

Once again, revenue authorities are pressing assertively for the implementation of their own orders, triggering recovery actions. In the absence of the GST Appellate Tribunal (GSTAT), taxpayers have no choice but to seek relief through writ petitions in jurisdictional High Courts. Key Points: ➡ The Commissioner (Appeals) upheld a Demand Order of INR 72+ crore, which includes penalties and interest. ➡ The issue centers around a disallowed Input Tax Credit (ITC) claimed under the Reverse Charge Mechanism (RCM) within the same month. ➡ Importantly, there is no material impact on the corporation's financials, operations, or other activities, as the order remains appealable before the GST Appellate Tribunal." #gst #gstupdates #taxes #lawyer #lawfirm #legal #litigation #laws #law #ca #cs #cma #acca #icai #charteredaccountants #compliance #money #India #audit #LIC #Insurance #lifeinsurance #healthinsurance #finance #taxes

23

1 Comment

Business Standard: FinMin files review petition in Supreme Court's Safari Retreats case ruling According to Vivek Jalan, partner with Tax Connect Advisory Services LLP, the judgment of the Supreme Court may be rectified in case of an error and where it was in contradiction with the legislation, as per Article 137 read with Article 141 of the Indian Constitution. “It seems that the government wishes to get it done so that there is no chance of a future litigation at all," he added. Link for accessing the article: Business Standard :- https://lnkd.in/g-BYRR2f

10

I recently had an interesting discussion with a friend about a transaction where, due to clawback conditions under Section 47A of the Indian Income Tax Act, a previously exempt transfer became taxable as the conditions were breached in the current year. While it is clear the company must pay the taxes due, we debated whether interest under Section 234B of the Act for the short payment of advance tax would also apply, from the year the transaction was reported as exempt until the breach occurred. This is a valid concern, as it is impossible to predict future breaches when claiming an exemption. We also discussed a notable Bombay High Court decision in the case of Prime Securities Limited [2012] 20 taxmann.com 757, which in a similar fact pattern ruled that interest under Section 234B was “not” payable by the assessee. The court's reasoning was logical: (a) The assessee correctly estimated the income and liability based on the law in force at the time of filing, as required under Sections 208 and 209 of the Act; and (b) It is unreasonable to expect a taxpayer to anticipate future events and pay advance tax on those anticipated events. While the above decision can be debated, the point to mull was that an initially validly claimed exemption (which may look advantageous at first glance), if subsequently nullified, can have the potential to impose considerable financial strain on a company's cash flow due to the associated interest liabilities, if recovered.  Views are personal. #taxbytes #SSA

53

1 Comment

OnePointJPtax - 60 Seconds: Revised Stock Option Taxation Under 2024 Tax Reforms On March 28, the 2024 Japan tax reforms bill was passed and enacted into law, with most of the tax reform provisions becoming effective on April 1, 2024. These reforms include updated regulations on Japanese qualified stock options, particularly benefiting startups and emerging firms (less than 20 years of establishment) by offering greater flexibility for using SO as a tool to attract and retain talents. Please see the following URL for the slides to learn more. https://lnkd.in/gZt-VEzc #OnePointJPtax #GlobalMobility #JapanTax #ExpatriateTax #2024TaxReforms #StockOption #Startups

13

✅ Breaking News The Institute of Chartered Accountants of India has issued #SQM1 and #SQM2 which are based on ISQMs issued by #IAASB. Here is the link to access the whole announcement : https://lnkd.in/gGkCuRPR ▶️ SQMs will replace the existing SCQ1. ▶️ Please carefully note the effective date mentioned in the respective SQM. ▶️ Whether these SQMs will be notified under Companies Act 2013 as well? ♂️ Please share your thoughts. For more such posts, you may follow CA. Devender Pandey 🇮🇳

7

1 Comment

*Taste Mix Scoop of Business news 18th Oct* 1. **India Inc. Must Adopt Global Audit Norms: NFRA Chief** NFRA chair Ajay Bhushan Pandey urged Indian companies to align with global accounting standards, emphasizing the lead auditors’ responsibility for consolidated financial statements. This follows NFRA's call to revise auditing norms, conflicting with ICAI's suggestion for a review. 2. **Direct Tax Collection Soars 294% in a Decade** India’s personal income tax collection grew 294% over the past decade, reaching ₹10.45 lakh crore in FY24. The surge is attributed to improved compliance, reduced corporate tax rates, and a doubling of taxpayers to 10.41 crore. 3. **Infosys Q2 Profit Rises 5% YoY; Revenue Guidance Revised** Infosys posted a 5% YoY increase in profit, reaching ₹6,506 crore for Q2. Revenue guidance for FY25 was revised to 3.75-4.5%, driven by strong performance in financial services and ramp-up of mega deals. 4. **Wipro Q2 Profit Jumps 21%, Announces Bonus Share Issue** Wipro’s Q2 net profit rose 21% to ₹3,209 crore, outperforming expectations. The company announced a 1:1 bonus share issue and saw significant growth in large deal bookings. 5. **Nestle India Q2 Profit Grows 8.6%, Revenue Up 1.3% YoY** Nestle India reported an 8.6% rise in net profit to ₹986 crore, with revenue growing 1.3% YoY. Despite challenges in consumer demand and commodity prices, the company’s major brands showed robust growth. Nestlé Wipro Infosys The Institute of Chartered Accountants of India MINT

1

New DRC-03A Form Alert! The DRC-03A form, launched on July 10th via Notification No. 12/2024, is now live on the GST portal! 🌐 💡 Why it matters: This form resolves key issues with tax payments, helping you offset voluntary payments correctly, close liabilities, and stop recovery actions. 📝 How to use: Just enter your DRC-03 ARN and the demand order reference in DRC-03A. This ensures proper payment recognition, especially with the upcoming interest and penalty waiver scheme. ⚠️ Take Action: If you've used DRC-03, file your DRC-03A now!

5

THE TIMES OF INDIA, BUSINESS STANDARD, THE HINDU, NEWS 18, THE PRINT, MINT, IBC24 - India's fiscal deficit in FY24 improved to 5.6% of GDP Vivek Jalan, partner at Tax Connect Advisory Services LLP, said, “The total expenditure has increased from around Rs.41.9 Lakh Crore to around Rs.44.4 Lakh Crore, an uptick of 6% approx and yet the fiscal deficit has reduced from around Rs.17.4 Lakh Crore to around Rs.16.5 Lakh Crore, a reduction of 5% approx. This is majorly due to the uptick in Tax Revenues from around Rs.21 Lakh Crore to around Rs.23.3 Lakh Crore an uptick of 11% approx.” Hence, he added, the encouraging Fiscal Deficit numbers can be dedicated to the taxpayers of the Country. The efficiency of the CBDT and CBIC and especially the ground covered in implementation of Artificial intelligence in unearthing fake transactions have also to be appreciated by Honest taxpayers. Links for accessing the Articles : The Times of India :- https://lnkd.in/gWg6sumT Business Standard :- https://lnkd.in/gGtKBbtx The Hindu :- https://lnkd.in/gYdpENzf News 18 :- https://lnkd.in/g-SFgM2N The Print :- https://lnkd.in/gnhgVuHR Mint :- https://lnkd.in/gFHyZ4KG IBC 24 :- https://lnkd.in/g9kwanFJ #tax #taxnews #taxupdates #gdp #FY24

10

1 Comment

🚨 Important GST Update 🚨 📜 Notification No. S.O. 5063(E), dated November 26, 2024, issued by the Ministry of Finance, introduces significant updates regarding the Goods and Services Tax Appellate Tribunal (GSTAT). 🔹 Key Highlights: 1️⃣ Jurisdictions for State Benches have been notified, covering various districts across India. 2️⃣ Amendments made to previously notified locations, ensuring clarity and efficiency in appellate procedures. 📍 This is a crucial step towards enhancing the GST dispute resolution framework. Stay informed and compliant! #GST #Finance #Compliance #Updates #GSTAppellateTribunal #Taxation

11

Overview of the latest GST changes as per Notification No. 12/2024 (10 July 2024) With effect from August 1, 2024, focusing on the reporting of high-value inter-state supplies in GSTR-1 :- - Starting September 2024, any inter-state supply made to the unregistered person with a invoice value exceeding Rs. 1 lakh must be reported invoice wise in Table 5 (B2CL) of GSTR-1. - Consolidated details of all inter-state supply made to the unregistered person with invoice value equal to or less than Rs. 1 lakh must be reported in Table 7 (B2CS) in GSTR-1. 𝗔𝗰𝘁𝗶𝗼𝗻 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗱 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝘆 𝗛𝗶𝗴𝗵-𝗩𝗮𝗹𝘂𝗲 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀: Conduct a thorough review of your sales data to identify all transactions exceeding Rs. 1 lakh. 𝗨𝗽𝗱𝗮𝘁𝗲 𝗦𝘆𝘀𝘁𝗲𝗺𝘀: Make necessary adjustments to your accounting or ERP systems to accommodate the new reporting format and requirements. Ensure that your systems are integrated with the GST portal and test the new reporting features to prevent any issues. 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝗔𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀: Train your accounting and compliance teams on the new reporting requirements and the importance of accurate data entry. For further assistance, please refer to the Notification or consult with tax advisor

3

Recent media reports indicating that India may further delay implementation of Pillar Two/ Global Minimum Tax (GMT) rules should come as no surprise. OECD’s GMT rules has certain design related issues which need a wider and more comprehensive consultation before implementation. The model rules as drafted by the OECD is complicated and would be difficult for countries to simply add to their pre-existing tax systems without considering interaction with current national and international tax rules. This level of complexity might be difficult for developing countries such as India to handle whose priority should be to rationalise and improve the existing tax system. With additional revenues from GMT expected to be meagre, there may be no incentive for India to rush through with the same. Further, in the Indian context, GMT rules as designed by the OECD may raise fundamental questions around issues such as nexus and extra-territoriality as well as concerns around fiscal sovereignty which need to be thoroughly examined. With the current focus of the Government on “simplification” of the Income tax law, it would be counter intuitive to expect a concurrent introduction of GMT which can only add another layer of complexity! https://lnkd.in/gYdcFivR

56

1 Comment