The Institute of Chartered Accountants of India

(Setup by an Act of Parliament)

Ahmedabad Branch of WIRC of ICAI
E-NEWSLETTER
Volume: 08 | ISSUE NO: 03 | May -2021
Chairman’s Message
OFFICE BEARERS Dear Members,
Chairman
CA. Harit Ashok Dhariwal As we welcome the month of May, where the summer
99789 42299 sun boils down and the temperatures soar – the
Vice Chairman activities at Ahmedabad branch continue with a roar!
CA. Bishan R. Shah April 2021 was an enriching month as we had
98250 23573 conducted a number of programs for professional
Secretary development, launched “Food kit at your doorstep” a
CA. Anjali Choksi drive to support those Chartered Accountants,
98257 73179 students and their family members who are home
Treasurer quarantined due to COVID-19, undertook three special
CA. Sunil Sanghvi vaccination drives (incl. Tika Utsav on 14 th April),
93761 50100 launched our Mega Health & Fitness Initiative – MOVEMENT 73, started our
first ever Women CA Refresher course, conducted Western India Accounting
Members Conference – a two day regional conference hosted by Ahmedabad Branch of
WIRC of ICAI and initiated the Blood donation drive (at your doorstep) and
CA. Ganesh Nadar Plasma Donation drive at Ahmedabad Branch.
CA. Fenil Rajendra Shah
CA. Rahul Kalulal Maliwal I am very happy to share that since March 2021, we have conducted Eight
vaccination drives, where more than 1,750 CA members & their family
Ex. Officio Members members have received vaccination. I would express my sincere gratitude to CA
CA. Aniket Talati, CCM Jainik Vakil, Municipal Councillor and past chairman of Ahmedabad Branch, for
98255 51448 the guidance and tie up with AMC. Members and even non-members are also
CA. Hitesh Pomal, RCM taking benefit of our “Food kit at your doorstep” initiative which started from
98240 49402 April 12, 2021. Since its inception, we have had 3,108 food kits (lunch & dinner)
CA. Vikash Jain, RCM delivered across the city of Ahmedabad. We have also started an initiative
93277 15892 called “We Care” where the members of our managing committee meet the
CA. Chintan Patel, RCM senior members at their office to take suggestions / guidance / blessings and
90999 21163 also to take feedback as to how branch can help them. Our visits to a few senior
members have been extremely enriching and we are thankful to them for giving
their valuable time and suggestions.
Newsletter Committee
Chairman: April 2021 will also be remembered for the grand launch of MOVEMENT 73 – a
CA. Rahul Maliwal th
Fitness Carnival! On 18 April, 2021 we had a mega launch of the movement
Co-Chairperson: with special address of the Hon'ble President of ICAI CA Nihar Jambusariaji &
CA. Hemlata Dewnani Hon'ble Vice President of ICAI CA Debashis Mitraji, motivational address by our
Convener: brand ambassador Shri Sangram Singhji and our fitness ambassador Ms. Sapna
CA. Mohit Tibrewal Vyas with participation of 1,825 members and 14 branches of ICAI. As I write, we
have 2,085 registered participants with 40 branches of ICAI join us for this
Members: mega health & fitness initiative of Ahmedabad Branch. This innovative
CA. Kushal Reshamwala program, which was ideated before two months and supported &
CA. Monish Shah collaborated by branches across the country, will surely make everyone
CA. Mahadev Birla adaptable to a new and healthy lifestyle. I am thankful to each and every
CA. Mahavir Shah chairman and MCM of the branches that have joined us for reposing their faith
CA. Parth Jani in us. I am also very happy to inform that the Fit India Mission Directorate has
CA. Nimesh Hariya approved our request for using the 'FIT INDIA' logo in our communications/
outdoor media channels for the event. We can use the hashtag
CA. Jitendra Teelani
#NewIndiaFitIndia and also tagline "Fitness ki Dose Aadha Ghanta Roz" on our
CA. Nancy Logar
Whats Inside??? Investment Corner 07 RERA Updates 14
GST Quick Connect 08 Excel in Excel 15
Editorial 02 Direct Tax Update 10 Imp Dates 16
Accounting & Co. Law Updates 03 Direct Tax Quick Connect 12 Motivational Story 17
GST Updates 05 International Taxation 13 Event in Images 18
 April-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

campaign flyers and participation certificates. We

are proud to have Red FM 93.5, FitFormance, By the time you receive this Newsletter, we would
Fitness Experts & Nimba Nature cure as our be celebrating Gujarat Day & Maharashtra Day.
event partners. The registration for the These two states have continuously contributed
movement is still on, so those who want to join to the greater good of our Nation and we are
this unique health carnival, please register at the proud to be a part of them. Let us take a leaf from
earliest. history and do our own personal bit to contribute
to our Nation. In the words of Mahatma Gandhi,
For the month of May, we have several sessions “consciously or unconsciously, every one of us does
planned on the skill development for members render some service or other. If we cultivate the
and students, sessions on new practice areas, GST habit of doing this service deliberately, our desire
& Income Tax refresher course and many more for service will steadily grow stronger, and will
technical sessions to help members learn, unlearn make, not only our own happiness, but that of the
and relearn the ever changing laws. In these world at large.”
uncertain times, let's stay connected and help
each other to the maximum extent possible. With best regards,
Ahmedabad Branch is always with you and we are CA Harit Dhariwal
all always available for any assistance / support Chairman, Ahmedabad Branch of WIRC of ICAI
that you or your family members may require.

EDITORIAL
Greetings to all our Inspite of all these turbulent time our branch is
members!! constantly organizing the various webinars on
Month of April has topics like GST, Direct tax, corporate tax and
witnessed many RERA for knowledge updating. Chartered
challenges which are Accountants are the pillar of Indian economy, so
never thought before in we have to come out of comfort and forecast
the second wave of the new opportunities coming to us. It's now
COVID 19. The demon of globally acclaimed that India would be now an
COVID-19 spreading very international hub for multinational companies
fast. Many states are for Investment and major shift of business will
locking down the various establishments, come to India from China. So that can covert this
running of trains and flights. With Ahmedabad pandemic into a great value addition.
being the most impacted district, we need to This newsletter includes all the recent changes
still stand strong. These are challenging times in corporate law, GST, Direct & International
that we are living in. The fight against the Taxation, RERA and Theory of long term
pandemic COVID-19 has necessitated drastic investing. Members those who are willing to
measures to be taken. The situation calls for contribute for newsletter on any topic can share
maintaining mental equilibrium and we must the same with us at [email protected]
remember to motivate each other and keep the Healthy mind lives in Healthy body, and Healthy
morale of the entire family and friends up in body makes Healthy India. So Ahmedabad
testing times like this. So dear Members it's the branch has started with Movement 73 on 18th
time to sharpen our skills and introspect in April to make you fitter and immune. So
oneself. The most wonderful way to sharpen Members are requested to take the benefit of
the same is read a lot. same also.
This is how Warren Buffett, one of the most Formal education will make you a living; self-
successful people in the business world, education will make you a fortune. —Jim Rohn
describes his typical day: “I just sit in my office So this is the time to self-educate our self and
and read all day.” support each other.
Sitting. Reading. Thinking. Buffett credits many Just remember the golden days are waiting for us.
of his successful decisions to his incredible reading
habit. He estimates that he spends as much as 80 Stay Safe and Stay Happy!!
percent of his day reading and thinking. In a 2014 Happy learning!!
letter to Berkshire CA Rahul Maliwal
Chairman , Newsletter Committee

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 May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Accounting & Company Law Updates

Compiled by: CA. Chintan Patel

1. Deferment of Accounting software No5_22042021.pdf

having audit trail
3. Criteria for classification of Non-
Ministry of Corporate Affairs (MCA) has vide company entities for applicability of
Notification dated 1st April, 2021, the Accounting Standards
mandatory requirement of Audit Trail (with
edit log) for the companies using ICAI has in recent council meeting revised
Accounting Software for maintaining books classification criterias for applicability of
of accounts has been deferred by one year Accounting Standards (AS) for Non-
i.e. to be effective from 1st April, 2022. company entities. The scheme for
h p://www.mca.gov.in/Ministry/pdf/AccountsAme applicability of Accounting Standards to
ndmentRules_01042021.pdf Non-company entities shall come into
effect in respect of accounting periods
Co n s e q u e n t l y , t h e r e q u i r e m e n t f o r commencing on or after April 1, 2020.
Auditors to comment on Audit trail in the
auditor report, has been deferred to be 1. For the purpose of applicability of
applicable to financial year commencing on Accounting Standards, Non-company
or after 1st April, 2022. entities are classified into four categories,
h p://www.mca.gov.in/Ministry/pdf/AuditAuditors viz., Level I, Level II, Level III and Level IV.
AmendmentRules_01042021.pdf
2. Level I entities are required to comply in
2. Setting up makeshift hospitals and full with all the Accounting Standards
temporary COVID care facilities
3. Certain exemptions/relaxations have
The Government has issued a notification in been provided to Level II, Level III and
continuation to the Ministry's General Level IV Non-company entities.
Circular No. 10/2020 dated March 23, 2020 Applicability of Accounting Standards and
wherein it was clarified that spending of CSR exemptions/relaxations to such entities
funds for COVID-19 is an eligible CSR are given in Annexure 2 of the
activity. It has been clarified that spending Announcement.
of CSR funds for 'setting up makeshift
hospitals and temporary COVID Care 4. This Announcement is not relevant for
facilities' is an eligible CSR activity under Non-company entities who may be
item nos. (i) and (xii) of Schedule VII of the required to follow Ind AS as per relevant
Companies Act, 2013 relating to promotion regulatory requirements applicable to
of health care, including preventive health such entities.
care, and disaster management respectively. h ps://resource.cdn.icai.org/64269asb51535.pdf
h p://www.mca.gov.in/Ministry/pdf/GeneralCircular

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May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

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GST Updates
Compiled by: CA. Monish Shah
Important AAR & Judgments
1) Applicant is a registered dealer at Bengaluru - under tariff heading 8523. Further, such supply
engaged in business of selling guitar training of computer software to a public funded
books in United States of America, United research institution are covered under Serial
Kingdom and Canada through their website. No. 1 of Notification No.45/ 2017-Central Tax
The applicant sends soft copy of the book to the (Rate) dated November 14 2017 (“NN. 45/2017-
printer located in USA, who in turn prints it and CT(R)”).
ships to the customers located in USA, UK and
Canada. Further, in another business model the 3) 18% GST on Services provided to TANGEDCO
applicant is having an agreement with Amazon for carr ying out Retrofitting Work for
Inc. who through their website "amazon.com" strengthening NPKRR Maaligai against Seismic
based on the choice of the customers either and Wind effect - AAR Tamandu, Order No
prints the books and sells it to the consumers on 14/AAR/2020 Dated 20/4/2020. Tamil Nadu
their own account or will share the link to Generation & Distribution Corporation Limited
download the e-books material in an of the
electronic devices and pays royalty to the 4) Waste Collection, Segregation, Treatment,
applicant as agreed between the two parties. Transportation, Disposal Services under Service
- The supply of books from the warehouse Agreements not exempted from GST, affirms
located in USA (non-taxable territory) to the A A AR – Tamilnadu Order No Appeal No
customers located in USA, UK and Canada (non- AAAR/08/2021 Sumeet Facilities
taxable territory) without such books entering
into India by the applicant does not amount to 5) Applicant cannot use the Input Tax Credit
supply under GST. Balance available in the Electronic Credit
- The printing charges, for printing of books, Ledger legimately earned on the inputs/raw
charged by the printer located in USA (non- materials/inward supplies (meant for outward
taxable territory) are taxable under Reverse supply of Bullions) towards the GST liability on
Charge Mechanism under GST, where only 'Castor Oil Seed' which were procured from
content is supplied by the applicant. Agriculturists and subsequently meant for
- The services received by the applicant from o nw a r d s u p p l y - A DVA N C E R U L I N G N O.
foreign service provider such as warehousing of GUJ/GAAR/R/15/2021 M/s. Aristo Bullion Pvt
printed books located in USA (non-taxable Ltd
territory) is not taxable under Reverse Charge
Mechanism under GST. 6) Ahmedabad Municipal Transport Service
- The input tax credit can't be availed, to the (AMTS) qualifies as "Local Authority" as defined
extent of inputs and input service on the under the Central Goods and Service Tax Act,
transaction covered in first question as the said 2017. - The service recipients of AMTS are
transaction does not amount to supply under required to pay GST under reverse charge
GST. mechanism on advertisement service (GUJARAT
(M/s Guitar Head Publishing LLP - THE A U T H O R I T Y F O R A D VA N C E R U L I N G -
A U T H O R I T Y FO R A DVA N C E R U L I N G I N Ahmedabad Municipal Transport Service) -
KARNATAKA) GUJ/GAAR/R/13/2021 dated 27.01.2021

2) The AAR, Karnataka in the matter of M/S. 7) National Institute of Design (NID) has been
SPSS South Asia Pvt. Ltd., [Advance Ruling No. formed by an Act of Parliament to carry out the
KAR/ADRG/15 of 2021, dated March 24, 2021] function entrusted to a municipality under
held that, supply of license of pre-developed or Article 243W of the Constitution and to a
pre-designed software by assessee amounts to Panchayat under Article 243G of the
supply of goods and said supply is covered Constitution, the applicant will qualify as

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‘Governmental Authority' if it also fulfils the definition of 'debit note', sub-section (3) of
condition namely 'ninety percent or more Section 34 of the CGST Act, 2017 and the
participation of Government by way of equity or particulars to be provided in a debit note issued
control.' (National Institute of Design - under GST, it is amply clear that the debit note is
GUJARAT AUTHORITY FOR ADVANCE RULING) not an independent document or an invoice in
GUJ/GAAR/R/08/2021 dated 20.01.2021 itself and is connected to an invoice as it is
issued in pursuance to change in value of an
8) Section 16 provides that ITC could be availed invoice. It, therefore, follows that the financial
by the buyer if GST is paid by the seller. Thus, in year to which a debit note pertains, is invariably
case of non-payment of GST, who should be the financial year in which the original invoice
questioned, the seller or the buyer? Madras HC (related to the said debit note) was issued. In
quashed notices issued to the buyers wherein view of the aforementioned discussions, and in
no proceedings were initiated against the light of the provisions of amended sub-
sellers for non-payment of tax M/s DY Beathel section(4) of Section 16 of the CGST Act,
Enterprises Vs State Tax Officer. WP (MD) 2017(amended w.e.f. 01.01.2021), we conclude
No.2127 of 2021 that the applicant shall be entitled to claim the
input tax credit only in respect of debit notes
9) ITC can't be availed on distribution of issued by the supplier towards the transactions
promotional product done for marketing and entered into and goods supplied to the
brand promotion, rules AAAR – Karnataka applicant during the financial year 2018-19, on
Appellate Authority in Page Industries Ltd or before the due date of furnishing of the
return under section 39 for the month of
10) 18% GST on Leasing of pathway to a person September following the end of the said
to their Dwelling Unit, affirms AAAR- Tamilnadu financial year 2018-19 or furnishing of the
Appellate Authority in the case of Chennai relevant annual return, whichever is earlier
Metro Rail
Notifications/Circulars

11) ITC not available on GST paid on laying of 1) ADVISORY No. 8 /2021- REFUNDS dated
th
Transfer Pipeline, Foundation and Structural 20 April 2021.The PMT-03 functionality
Support for Pipeline: AAR held by Tamil Nadu in available at present in the online refund
the case of SHV Energy Pvt Ltd module is only for re-crediting of the
rejected amount that has been debited
12) The medicines, consumables and implants at the time of filing of refunds. In order to
used in the course of providing health care enable the operationalisation of re-
ser vices to in-patients for diagnosis or crediting of ITC sanctioned as refund
treatment for patient opting with or without towards tax wrongly paid or paid in
packages along with allied services i.e. (room excess by debiting the credit ledger, a
rent/food/doctor fees Etc.) provided by hospital new enhanced PMT-03 functionality has
is a "Composite Supply”. Supply of inpatient been developed and deployed in the
health care services by the applicant hospital as system. This new functionality is
defined in Para 2(zg) of the Notification applicable only to the following 4 types
N o . 1 2 / 2 0 1 7 - C e n t r a l Ta x ( R a t e ) d a t e d of refund as provided in the referred
28.06.2017, as amended, is exempted from circular.
CGST as per Sl. No. 74 of the above notification. - i. Refund of excess payment of tax;
ADVANCE RULING NO. GUJ/GAAR/R/11/2021 ii. Refund of tax paid on intra-State
M/s. SHALBY Limited supply which is subsequently held
to be interState supply and vice
1 3 ) A D V A N C E R U L I N G N O . versa;
GUJ/GAAR/R/10/2021 in the matter of M/s. I- iii. Refund on account of
tech Plast India Pvt.Ltd. ruled that the applicant assessment/provisional
cannot claim Input Tax Credit in relation to assessment/appeal/any other
CGST/SGST separately in debit notes issued by order; and
the supplier in current financial year i.e., 2020- iv. Refund on account of “any other”
21, towards the transactions for the period ground or reason.
2018-19 as from a combined reading of the

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Investment Corner
Compiled by: CA. Shailesh Kumar
Importance of
Term Insurance
at Every Stage of
Your Life!
Life is full of uncertainties especially due to protect your spouse and family against the
Covid-19 situation. A serious accident or critical increasing liabilities, because such financial
illness could affect the financial stability of your liabilities can fall on your partner if something
family. So, it is most important to start investing happens to you. Keeping such situations in
in a life insurance that will safeguard the mind, it is very important to invest in a term
financial future of your family in case of any insurance plan. Starting a new life with your
unfortunate event. partner and making investments such as buying
A life insurance plan acts as a saviour that a car, new house would require a huge amount
protects your family against financial hardship of money. Thus, with the rise in liabilities, it is
that may face due to unfortunate events important for you to ensure that you have
especially when you are the breadwinner in the adequate coverage that protects your family
family. Term plan is the purest form of life financially, if something happens to you.
insurance. It not just ensures your family's · When you become a parent - The joy of
financial security, but also gives an option to becoming a parent cannot be described in
protect them from critical illnesses such as words. It's the most beautiful feeling in the
cancer, heart diseases, etc. world. From excellent education to impressive
To help you understand better, I have made a list lifestyle, it's every parent's dream to ensure
of examples that will help you determine why that their child continue to live the best life,
term insurance is important at every stage of even when they are not around. Thus, many
life: young parents nowadays have started investing
· When you are young - When you start job in several financial instruments to make sure
at a young age, you have limited liabilities and that their child's future is safe and secure. The
responsibilities. Therefore, at this stage, buying claim amount can be used to fulfill your child's
a term insurance plan is the perfect choice for education needs and will cover them for a
you. It would help you get larger cover at a lower longer period. Basis this, it is ideal to buy a term
premium. The best part about term insurance is insurance when you have financial dependents.
that the premium paid towards the policy does Although, while buying a term plan, do not just
not increases with age and is locked for the go by the amount of premium. You must also
entire duration of the policy. Also, when you are look for the other things such as insurance
young, you are less prone to critical ailments company's reputation, claim settlement ratio,
such as heart problems, cancer and your market share, etc.
premiums are relatively lesser as for an you can also claim tax deduction for the
insurance company you are less likely to develop premium amount paid for term insurance under
any chronic ailments. section 80C.
· When you get married - Newlyweds So, whether you are single, married or retired
usually should buy term insurance to provide parent, always ensure that your family is
income protection for their surviving partner. financially stable in case of any unfortunate
As soon as you start your married life, you need event so that they can live a secure and stress-
to buy an adequate cover for your family to free life term.

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GST Quick Connect

Compiled by: CA. Parth Joshi
Is interest demand on unpaid-tax issued in Form
No. DRC 01 valid?

1. Introduction:
This article enunciates about the validity of (2) The interest under sub-section (1) shall
issuance of Form No. DRC 01 under Section 50 of be calculated, in such manner as may be
the CGST Act. prescribed, from the day succeeding the day
on which such tax was due to be paid.
2. Issue:
Whether issuance of Form No. DRC 01 under (3) A taxable person who makes an undue or
Section 50 of the CGST Act, 2017 is legal and excess claim of input tax credit under sub-
proper? section (10) of section 42 or undue or excess
reduction in output tax liability under sub-
3. Legal Background: section (10) of section 43, shall pay interest
on such undue or excess claim or on such
3.1 Interest on delayed payment of tax undue or excess reduction, as the case may
[Section 50 of the CGST Act]: (1) Every be, at such rate not exceeding twenty-four
person who is liable to pa y ta x in per cent., as may be notified by the
accordance with the provisions of this Act Government on the recommendations of
or the rules made thereunder, but fails to the Council.
pay the tax or any part thereof to the
Government within the period prescribed, 3.2 Notice and order for demand of amounts
shall for the period for which the tax or any payable under the Act [Rule 142 of the CGST
part thereof remains unpaid, pay, on his Rules]:
own, interest at such rate, not exceeding
eighteen per cent., as may be notified by (1) The proper officer shall serve, along
the Government on the recommendations with the
of the Council. (a) notice issued under section 52 or
section 73 or section 74 or section 76 or
Provided that the interest on tax payable section 122 or section 123 or section
in respect of supplies made during a tax 124 or section 125 or section 127 or
period and declared in the return for the section 129 or section 130, a summary
said period furnished after the due date in thereof electronically in FORM GST
accordance with the provisions of Section DRC-01,
39, except where such return is furnished (b) statement under sub-section (3) of
after commencement of any proceedings section 73 or sub-section (3) of section
under Section 73 or Section 74 in respect of 74, a summary thereof electronically in
the said period, shall be payable on that FORM GST DRC-02, specifying therein
portion of the tax which is paid by debiting the details of the amount payable.
the electronic cash ledger.

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(1A) ……. contemplates issuance of notice thereunder in

(2) ……… respect of section 50 of the Act. It was
(2A) ……. submitted that therefore, the impugned show
(3) ……… cause notice has been issued without any
(4) ……… authority of law.

(5) A summary of the order issued under Now, question that fall for the consideration of
section 52 or section 62 or section 63 or this court:
section 64 or section 73 or section 74 or (i) Whether issuance of DRC 01 under Section 50
section 75 or section 76 or section 122 or of the CGST Act, 2017 is legal and proper?
section 123 or section 124 or section 125 or
section 127 or section 129 or section 130 6. Hon'ble High Court's Observations:
shall be uploaded electronically in FORM (i) On the plain reading of rule 142(1)(a) of the
GST DRC-07, specifying therein the amount CGST Rules, it indicates that Form GST DRC 01
of tax, interest and penalty payable by the can be served by the proper officer along with
person chargeable with tax. the notice issued under Section 52 or Section 73
or Section 74 or Section 76 or Section 122 or
(6) ……… Section 123 or Section 124 or Section 125 or
(7) ……… Section 127 or Section 129 or Section 130 and
that too, electronically as a summary of notice.
3.3 Notice and order for demand of Further, we do not find reference of any notice
amounts payable under the Act [Section under Section 50 so far as Rule 142(1)(a) of the
75 of the CGST Act]: CGST Rules is concerned. In such circumstances,
DRC 01 could not have been issued for the
(12) Notwithstanding anything contained in purpose of recovery of the amount towards
section 73 or section 74, where any amount of interest on delayed payment of tax.
self-assessed tax in accordance with a return
furnished under section 39 remains unpaid, (ii) The aforesaid leads us to consider the
either wholly or partly, or any amount of question that if the amount towards interest on
interest payable on such tax remains unpaid, delayed payment of tax is to be recovered, then
the same shall be recovered under the what is the Form in which the notice is to be
provisions of section 79. issued? – Section 75(12) make it abundantly
clear that notwithstanding anything contained
in section 73 or Section 74, if there is any
4. Name of the Case: Rajkamal Builders amount of interest payable on tax and which
Infrastructure Private Limited through Director had remained unpaid, the same has to be
Mahendra H. Patel V/s. Union of India [Gujarat recovered under the provisions of Section 79.
High Court (2021)] Section 79 is with respect to recovery of tax.
Section 79 provides for the modes of recovery.
5. Facts of the Case: (iii) Rule 142 of the CGST Rules, 2017 makes it
A show cause notice was issued to the petitioner clear that the order referred in subrule (5) shall
for recovery of interest on unpaid tax in Form be treated as the notice for recovery.
DRC 01. In this connection, the petitioner,
invited the attention of the court to the 7. Held:
impugned show cause notice dated 19.07.2019 From the aforesaid, we have reached to the
issued in Form GST DRC 01 under Rule 142(1) of conclusion that the notice should have been
the Central Goods and Service Tax Rules, 2017 issued in Form GST DRC 07. The notice should
(hereinafter referred to as “the CGST Rules”) to also specify the amount of tax, interest and
point out that the notice has been issued in penalty payable by the person chargeable with
relation to section 50 of the Central Goods and tax. In view of the aforesaid, the Form GST
Service Tax Act, 2017 (hereinafter referred to as DRC 01 could be said to have been issued
“the CGST Act”). without any authority of law. The impugned
order issued in GST DRC 01 is hereby ordered
Reference was made to rule 142 of the CGST to be quashed and set aside.
Rules to point out that in the same, no-where

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Direct Tax Updates

Compiled by: CA. Mohit R. Tibrewala

1. N o t i fi c a t i o n N o . 2 8 / 2 0 2 1 d a t e d Taxation and Other Laws (Relaxation)

0 1 . 0 4 . 2 0 2 1 – I n co m e Ta x ( E i g h t h and Amendment of Certain Provisions
Amendment) Rules, 2021. Act, 2020, namely:-
(i) Time limit for passing of any order for
The report of audit furnished under this rule assessment or reassessment under the
may be revised by the person by getting Income-tax Act, 1961(hereinafter called
revised report of audit from an 'the Act' ) the time limit for which is
accountant, duly signed and verified by provided under section 153 or section
such accountant, and furnish it before 153B thereof;
the end of the relevant assessment year (ii) Time limit for passing an order
for which the report pertains, if there is consequent to direction of DRP under
payment by such person after furnishing sub-section (13) of section 144C of the
of report under sub rule (1) and (2) which Act;
necessitates recalculation of (iii) Time limit for issuance of notice under
disallowance under section 40 or section section 148 of the Act for reopening the
43B. assessment where income has escaped
assessment;
https://www.incometaxindia.gov.in/commu (iv) Time Limit for sending intimation of
nications/notification/notification_28_2 processing of Equalisation Levy under
021.pdf sub-section (1) of section 168 of the
2. P r e s s R e l e a s e d a te d 2 4 . 0 4 . 2 0 2 1 - Finance Act 2016.
Government Extends certain timelines in It has also been decided that time for
light of raging pandemic payment of amount payable under the
In the light of several representations Direct Tax Vivad se Vishwas Act, 2020,
received (supra) and to address the without an additional amount, shall be
hardship being f a c e d by v a r i o u s further extended to 30th June, 2021.
stakeholders, the Central Government https://pib.gov.in/PressReleasePage.aspx?P
has decided to extend the time limits to RID=1713723
30th June, 2021 in the following cases 3. Press Release dated 09.04.2021 –
where the time limit was earlier Provisional Direct Tax Collection for the
extended to 30th, April 2021 through F.Y. 2020-21.
various notifications issued under the

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May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

The provisional figures of Direct Tax changes necessitated due to

collections for the Financial Year 2020-21 amendments in the Income-tax Act, 1961
show that net collections are at Rs. 9.45 have been made.
lakh crore. The net Direct Tax collections ITR Form 1 (Sahaj) and ITR Form 4 (Sugam)
include Corporation Tax (CIT) at Rs. 4.57 are simpler Forms that cater to a large
lakh crore and Personal Income Tax (PIT) number of small and medium taxpayers.
including Security Transaction Tax (STT) Sahaj can be filed by an individual having
at Rs. 4.88 lakh crore. The net Direct Tax income upto Rs. 50 lakh and who receives
collections represent 104.46% of the income from salary, one house property /
Revised Estimates of Rs. 9.05 lakh crore other sources (interest etc.). Similarly,
of Direct Taxes for the F.Y. 2020-21. Sugam can be filed by individuals, Hindu
The Gross collection of Direct Taxes (before Undivided Families (HUFs) and firms
adjusting for refunds) for the F.Y. 2020- (other than Limited Liability Partnerships
21 stands at Rs. 12.06 lakh crore. This (LLPs)) having total income upto Rs. 50
includes Corporation Tax (CIT) at Rs. 6.31 lakh and income from business and
lakh crore and Personal Income Tax (PIT) profession computed under the
including Security Transaction Tax (STT) presumptive taxation provisions.
at Rs. 5.75 lakh crore; Advance Tax of Rs. Individuals and HUFs not having income
4.95 lakh crore; Tax Deducted at Source from business or profession (and not
(including Central TDS) of Rs. 5.45 lakh eligible for filing Sahaj) can file ITR-2
crore; Self-Assessment Tax of Rs. 1.07 while those having income from business
lakh crore; Regular Assessment Tax of Rs. or profession can file ITR Form 3. Persons
42,372 crore; Dividend Distribution Tax other than individual, HUF and
of Rs. 13,237 crore and Tax under other companies i.e. partnership firm, LLP etc.
minor heads of Rs. 2,612 crore. can file ITR Form 5. Companies can file
Despite an extremely challenging year, the ITR Form 6. Trusts, political parties,
Advance Tax collections for F.Y. 2020-21 charitable institutions etc. claiming
stand at Rs. 4.95 lakh crore which shows a exempt income under the Act can file ITR-
growth of approximately 6.7% over the 7.
A d v a n c e Ta x c o l l e c t i o n s o f t h e There is no change in the manner of filing of
immediately preceding Financial Year of ITR Forms as compared to last year. The
Rs. 4.64 lakh crore. notified ITR Forms are available on
Refunds amounting to Rs. 2.61 lakh crore http://egazette.nic.in/WriteReadData/2
have been issued in the F.Y. 2020-21 as 021/ 226336.pdf.
against refunds of Rs. 1.83 lakh crore https://pib.gov.in/PressReleasePage.aspx?P
issued in the F.Y. 2019-20, marking an RID=1709090
increase of approximately 42.1% over
the preceding Financial Year.
https://pib.gov.in/PressReleasePage.aspx?P
RID=1710598

4. Press Release dated 01.04.2021 – CBDT

notifies New Income Tax Return Forms
for AY 2021-22.
The Central Board of Direct Taxes has
notified Income Tax Return Forms (ITR
Forms) for the Assessment Year 2021-22
vide Notification no.21/2021 in G.S.R.
242(E) dated 31.03.2021. Keeping in view
t h e o n g o i n g c r i s i s d u e to COV I D
pandemic and to facilitate the taxpayers,
no significant change have been made to
the ITR Forms in comparison to the last
year's ITR Forms. Only the bare minimum

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 May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Direct Tax Quick Connect

Compiled by: CA. Kushal Reshamwala
Sec 80JJAA: Deduction in respect of employment
of new employees
Applicability: Provisions Act, 1952; or
1. It is applicable to those assessee who are
(c) An employee employed for a period of less
covered under section 44AB of the than two hundred and forty days during the
income tax act,1961. previous year; or
2. Benefit is available to only those
assessee having business income only. In (d) An employee who does not participate in the
other words benefit of this section to recognised provident fund.
assessee having profession income is not Meaning of Emoluments:
available.
Emoluments means any sum paid or payable to
an employee in lieu of his employment by
Amount of Deduction:
whatever name called. However the following
Under this section quantum of deduction is
are excluded from Emoluments.
available to that extent of 30% of the additional
employee cost from the three assessment years (a)Any contribution paid or payable by the
including assessment year relevant to the employer to any pension fund or provident fund
previous year in which such employment is or any other fund for the benefit of the
provided. employee under any law for the time being in
Additional Employee cost means the total force; and
emoluments paid or payable to additional (b)Any lump sum payment paid or payable to an
employees employed during the previous year. employee at the time of termination of his
However Additional Employee cost is Nil in the ser vice or superannuation or voluntar y
following circumstances if there is no increase in retirement, such as gratuity, severance pay,
the number of employees from the total leave encashment, voluntary retrenchment
number of employees employed as on the last benefits, commutation of pension and the like.
day of the preceding year. Emoluments are paid
otherwise than by an account payee cheque or Non Avaibility of deduction:
account payee bank draft or by use of electronic The benefit of this section is not available in the
clearing system through a bank account following circumstances.
(a) If the business is formed by splitting up, or
Additional employee: the reconstruction, of an existing business:
Addiional employee means an employee who Provided that nothing contained in this clause
has been employed during the previous year shall apply in respect of a business which is
and whose employment has the effect of formed as a result of re-establishment,
increasing the total number of employees reconstruction or revival by the assessee of the
employed by the employer as on the last day of business in the circumstances and within the
the preceding year. However the following are period specified in section 33B;
not considered as additional Employee: (b) If the business is acquired by the assessee by
(a) An employee whose total emoluments are way of transfer from any other person or as a
more than twenty-five thousand rupees per result of any business reorganisation.
month; or Form:
( b) A n e m p l oy e e f o r w h o m t h e e n t i r e Form 10DA is to be submitted with Tax Audit
contribution is paid by the Government under Report and return of Income by the assessee
the Employees' Pension Scheme notified in for claiming the deduction under section
accordance with the provisions of the 80JJAA.
'Employees Provident Funds and Miscellaneous

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International Taxation Updates

Compiled by: CA. Nancy Logar
1. Dividends tax: Role of Most Favored separate notification to apply provisions of
Nation clause of India - Netherland DTAA protocol. [relied on Steria (India) Ltd. v. CIT
Recently, Delhi High Court (HC) in case of (2016) 386 ITR 390].
Concentrix Services Netherlands B.V. and · Dismissed contentions of tax department
Optum Global Solutions International B.V. and while interpreting MFN clause involving
(taxpayers) granted benefit of 5% withholding “…which is a member of the OECD”
tax rate on dividends payable by an Indian observed that the word 'is' requires
subsidiary to its Netherland parent company, countries to be OECD members when
by virtue of the Most Favored Nation (MFN) source taxation is triggered in India and not
clause of India - Netherlands Double Taxation at the time when subject DTAA was
Avoidance Agreement (DTAA) read with the executed. Accordingly, benefit of MFN can
India - Slovenia DTAA. be granted in present case.
Facts of the case: · Netherlands court had held that MFN clause
· An application was made seeking for a will apply i.e. dividends taxable at lower rate
certificate permitting Indian subsidiaries to of 5% (in decree of 28.02.2012, no. IFZ
deduct withholding tax at a lower rate of 2012/54M) and therefore principle of
5% as per India Netherlands DTAA read common interpretation should apply to
with MFN clause and DTAA entered by ensure consistency and equal allocation of
India with Slovenia/ Lithuania/ Columbia. tax claims between the contracting states.
· Tax authority did not accept taxpayers' · Interpretation of DTAA is liberated from
claim and issued certificate wherein technical rules governing the interpretation
withholding tax rate of 10% was of domestic law. Core function of DTAA
stipulated. should be seen to aid commercial relations
· Aggrieved by the same, taxpayers filed writ and equitable distribution of tax revenues
petitions before the HC. It was contended in respect of income which falls for
that since India had entered into a taxation in both the contracting states.
beneficial DTAA with countries who are Impact: Taxpayers may evaluate the impact of
member of Organisation for Economic Co- this ruling to facts of their case.
operation and Development (OECD), the Source: Delhi HC judgment in WP (C) 9051/2020
lower rate of tax as per the said beneficial and 882/2021, pronounced on 22 April 2021.
DTAA would automatically apply to the 2. UN Tax Committee approves text of
subject DTAA. Article 12B and commentary in UN Model Tax
Tax Department's contentions: Convention
· Slovenia, Lithuania, and Columbia were not · Article 12B on income from automated
OECD members on the date when India digital services and commentary has been
executed DTAA with these countries (DTAA adopted into UN Model Tax Convention.
with Slovenia was executed in 2005 and · The new taxing right would apply to income
Slovenia became member of OECD in 2010). from automated digital services provided
· Benefit of MFN clause would be available on internet or another electronic network,
only if the country with which India enters a involving minimum human involvement
DTAA was an OECD member at the time of from the service provider. It would apply to
execution of subject DTAA (DTAA with income derived from online advertising,
Netherlands was executed in 1989). Since, cloud computing, online gaming, social
Slovenia, Lithuania and Columbia were not media platforms, etc.
OECD members on the date of execution · Definition of automated digital services
of subject DTAA and became members excludes payments qualifying as royalties
only on a later date, MFN clause of subject or fees for technical services under
DTAA would not be applicable. Article 12 or 12A.
Decision of HC: · Enumerates allocation of taxing rights
· Protocol of DTAA forms an integral part of amongst the source and resident state.
DTAA and there is no requirement of issuing

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 May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

RERA Updates
Compiled by: CA. Mahadev Birla
RERA Compliance
for
Real Estate Agent
“Real estate agent” is the person who actually unique to each agent for which the agent
facilitates the sale or purchase of flat, is liable to submit the mandatory Agent
apartment or building, in a Real Estate Project, RERA Return. Further, the start date and
through any medium. RERA, 2016 cast some end date for the half year is dynamic in
duties on the Real Estate Agent for better nature and different from one agent to
transparency of sale in real estate project. The another but fixed for a particular Agent
duties of the Real Estate Agent are not only for its return filing life cycle.
limited to obtained the registration under However, recently GujRERA has come
RERA, 2016, but it requires the Agent to with the amendment by issuing an Order
maintain the professionalism by performing No.: GujRER A /Order-47 dated
some other functions as below: 31.03.2021 and it is decided to
implement the “Financial Year based -
1. The Real estate agent shall not facilitate Agent annual reporting System which
the sale or purchase of plot, apartment, will be applicable from the Financial
building in real estate project which is not Year 2021-22 and according to this
registered with under RERA. system first Annual return for the
2. It is the duty of Real Estate Agent to Financial Year will be due on 7th April,
maintain the books of account, records 2022.
and documents in accordance with the
Provision of Income Tax Act, 1961. Apart from the changing the return
3. Not to involve in any unfair trade filing system, GujRERA has given some
practice. relaxation in respect of all half yearly
4. Real Estate Agent shall facilitate the return which are pending to file till
possession of all information and 31.03.2021. by issuing the Order no.
documents to the allottee. GujRERA/Order-47 dated 31.03.2021 it
5. Real Estate agent shall disclose all the is decided that all registered Agents
information's in respect of inventory shall have to file Half Yearly return by
dealt by the him in respect of project. 30th April, 2021, to update the sales till
st
In state of Gujarat these information's 31 March 2021.
are to be disclose by filing a half yearly The Agents who file their H.Y return by
return for which GujRERA has issued a the extended date will be exempted
Standard Operating Procedure (SOP). from any regulatory action for default
6. Real Estate Agent shall file this return committed up to March, 2021. Stringent
online on website of GujRERA. regulatory action will follow against
7. In the return, the details of the unit dealt the defaulters, thereafter.
by the agent will be disclosed for each
project separately which includes the 9. As per the current procedure, the
project name, RERA Registration number processing fees of Rs 200/- (In case of
of the project, number of units along individual Agent) and Rs 1,000/- (in case
with the time period. of the agent other than individual) is
8. As per SOP, GujRERA has considered the payable for filing the Half yearly return
dynamic rolling half years (6 months) however, in the Order no 47, fees payable
duration with respect to a specific logic for the annual return is not clarified.

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Excel in Excel
Compiled by: CA. CS. Hemlata Dewnani
FLASH FILL

F lash Fill is a data tool in Microsoft Excel

that will allow you to combine, extract or
transform data based on a few examples.

Let's say column A contains GSTN, In column B

,Plant and machinery code etc.

It is more powerful and can replace all following

i.e we have used left,right,middle,Text to
columns,concatenate, upward or downward
you want to fill PAN. If you establish a pattern by ,Rounding off etc all have some specific
typing the PAN in column B, Excel's Flash Fill requirements which you need to fulfill if you
feature will fill in the rest for you based on the require answers and it is limited one also.
pattern you provide.
Flash Fill was released in Excel 2013, and any
later versions will also have it. This includes
Excel 2013, 2016, 2019 and Excel for Office 365.

Limitations Of Flash Fill:

While Flash Fill is very powerful, it does have
limitations.

1. Results are not dynamic. Flash Fill values will

not update when you change the values they’re
based on. You will need to perform the Flash Fill
If Flash Fill doesn't generate the preview, it again in order to update the values.
m i g h t n o t b e t u r n e d o n . Yo u c a n g o 2. Flash Fill might not always return results. The
to Data > Flash Fill to run it manually, or press pattern might be too complex for Excel.
C t r l + E . To t u r n F l a s h F i l l o n , g o 3. Flash Fill may incorrectly identify the pattern
to  To o l s  >  O p t i o n s  >  Adva n ce d  >  Ed i t i n g and return undesired results. With lots of data,
Options > check the Automatically Flash incorrect results might be hard to spot so you
Fill box. e s s e n t i a l l y n e e d t o t r u s t a b l a c k b ox
algorithm.for this try to type in 2-3 columns than
Examples : It can be used to combine first and press ctrl + E and before submitting data .cross
last names from two different columns,or for verify some with examples
seperating product code with definate 4. Flash Fill doesn’t fill results horizontally. Your
numbers,you need only date from DD-mm-yyyy data will need to be vertical.

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 May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Important Due Dates

Compiled by: CA. Mahavir Shah
FOR COMPLIANCE FOR MAY- 2021

Sr. No. Act Compliance Due Date

1 GujRERA In case of Promoter : Quarterly Return for Project to be filled with 7 07-May-21
days from the end of the Quarter allocated by RERA Authority

2 Income Tax Tax Collected at Source (TCS) during the month of April-21 to be 07-May-21
3 GST deposited
GSTR-7 for the month of April-21 for persons required to deduct 10-May-21
TDS under GST
4 GST GSTR-8 for the month of April-21 for e-commerce operator 10-May-21
required to collect TCS under GST
5 GST GSTR-1 for the month of April-21 11-May-21
6 GST Filling of Invoice Furnishing Facility (IFF) for April-21 for taxpayers 13-May-21
who opted for Quarterly Return Monthly Payment (QRMP) option

7 GST GSTR-6 for the month of April-21 for Input Service Distributor (ISD) 13-May-21

8 Income Tax Due date for issue of TDS Certificate for tax deducted under section 15-May-21
194IA, 194IB and 194M in the month of March, 2021
9 Income Tax Filling of Quarterly TCS Return for F.Y. 2020-21 Q-4 15-May-21
10 PF / ESIC Payment of PF / ESIC for the month of April-21 15-May-21
11 GST GSTR-5 & 5A by Non-resident taxable person & OIDAR for the 20-May-21
month of April-21
12 GST Payment of GST & Filing of GSTR-3B for the month of April-21 for 20-May-21
monthly taxpayers
13 GST Payment of GST in form GST PMT-06 for taxpayers who opted for 22-May-21
Quarterly Return Monthly Payment (QRMP) option fot the month
14 Income Tax Furnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA, 30-May-21
194IB and 194M during the month of April-21
15 MCA Filling of Form 11 - Annual Return by LLP for F.Y. 2020-21 30-May-21
16 MCA Filling of half yearly Reconciliation of Share Capital Audit Report in 30-May-21
Form PAS 6 by unlisted public companies
17 Income Tax Due date for furnishing of Statement of Financial Transactions (SFT) 31-May-21
u/s 285BA for F.Y. 2020-21
18 Income Tax Filling of Quarterly TDS Return for F.Y. 2020-21 Q-4 31-May-21

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 May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Motivational Story
Compiled by: CA. CS. Hemlata Dewnani
I have not failed. I have just found 10,000 ways that won't work - Thomas A. Edison

A failure is more useful than a win because

it brings more experience and it trains
people's perseverance. Most of us are
scared by failures. We should understand that
everything in life is going to go according to plan
after all that's what life's about. We should
apply trial and error method for any endeavour
to find right outcomes- -"There is far more
opportunity than there is ability."

and that failure is just part of the plan. According to the Edison Innovation Foundation,
Sometimes our efforts don't seem to give any he operated on four simple principles, taught to
output, that doesn't mean that we should stop him by his loving mother:
trying- "There's a way to do it better - find it.”
1. Never get discouraged if you fail. Learn from
it. Keep trying.
The fact is that even we try and fail that doesn't
mean we didn't learn something. We shouldn't 2. Learn with both your head and hands.
worry about what happens if we fail, because 3. Not everything of value in life comes from
it's not our choice, either we can get back up and books- experience the world.
try again or we can stay as it as and cry for
4. Never stop learning. Read the entire
failure- "To have a great idea, have a lot of
panorama of literature.
them.”

Many of us believe that failure is bad but it's not I am sharing the Link for many Successful
true, not all failure means that it's going to be persons who failed, failed, failed and tried till
the worst part of your life, maybe failure it's just they won
a way of showing us that there's more to the L i n k :
idea of success and that probably we shouldn't h p://www.uky.edu/~eushe2/Pajares/OnFailingG.html
set for anything less than we deserve We Many of life's failures are people who did not
wouldn't let failure become our mother but the realize how close they were to success when
mother of success instead, and that if we fall they gave up."
we'll get back up and keep moving on, because

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May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Event in Images

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May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

INAUGURATION - MOVEMENT 73

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May-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

TIKA UTSAV - VACCINATION DRIVE

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